VGNC

  Gone are those days when register a private limited company in India was a big hassle altogether. At present, the whole process has become much easier in the digitized era.  Importantly enough, the whole process doesn’t take too much of a time either and a concerned person be aware of the essentials and requirement of the whole process beforehand.  The following steps will definitely be a guide in registering a private limited company in India.   Applying for Digital Signature form : A Digital Signature establishes or furnishes the identity of the sender or signee electronically while filing documents digitally.The proposed directors of the company to be formed need to apply for digital signature form, which is readily available in the authorized site.   Obtaining Director Identification Number (DIN) for proposed directors of the company to be formed : This is the first step of the whole process. What will be the number of directors and who are going to be – c...

  The whole idea of limited liability partnership (LLP) is very common in India. This specific partnership pinpoints the fact that some partners in a partnership may have limited liabilities. Importantly, under LLP one partner is not responsible or liable for another partner’s misconduct or in any negligence. One can definitely say, the idea of LLP is similar to that of stakeholders in a corporation.  Interestingly, LLP is different from the idea of limited partnership. No doubt, LLP is a much advanced concept in the domain of business and considered to be a far better aspect that limited partnership. The whole procedure of registering for LLP in Delhi is simple.  Let’s not forget that registered office is mandatory along with two partners.  As per the existing clause, both partners need to be residents of India.  The advantage in this case is, one can use residential address as registered office address.  The whole process of LLP registration can be catego...

  Introduction of GST to the Indian Tax System GST is considered to be the biggest change in Indian economy ever since the 1991 economic reforms which ushered in the globalization, bringing in a whole lot of changes in all the business sectors of India. Although the GST is concerned with indirect taxation only, its impact on the economy is considered to be very important considering the volume of monetary transaction carried out in a country like India.  As it has been mentioned before, that the GST will be rolled out from July 1, all the existing companies in India are presently engaged in transforming their whole structure to the GST regime. Truly, the rules and regulations of the GST are certainly very different from the existing VAT regime.  We shall now discuss various aspects which will be crucial for this major transformation in the indirect tax arena.   Eligibility for GST –  No doubt, this has been the topic of discussion all over. First and foremost on...

  Impact of GST on stock Market Goods and Services Tax  (GST)  is considered to be the biggest tax reform in independent India.  As the deadline comes closer, small and medium companies as well as large enterprises are working on the transition from VAT era to GST regime. No doubt, this transition won’t be an easy task especially for those who are linked with fast-moving goods, durable, pharmaceuticals. Nevertheless, cutting down inventory levels is not an easy task either.  Already inventory correction has started across various sectors. Instead of lifting stocks for two months or so, the companies are taking up stocks for 10- 12 days. Understanding the problem The biggest question going around various quarter is – what will happen to the stocks sold after June 30.  Incidentally government had already announced that trade across various categories will get 40% reimbursement of the tax paid portion only.  In this regard, one can certainly highlight Sec...

  Understand the GST: Mechanisms- Two mechanisms are there: a) Fore-ward Charge b) Reverse Charge What is Fore-ward Charge Mechanism? Fore-ward charge means liability to pay the taxes on the goods & services is on the supplier. E.g.: X sells goods for Rs.1 Lac to A, X will charge & pay tax on the said goods (say 5% GST) Rs 5000. What is Reverse Charge Mechanism? Reverse charge means the liability to pay tax by the  recipient of supply of goods or services  or both instead of the supplier of goods or services or both. E.g.: Z sells goods for Rs.1 Lac to B, in this case B will pay tax on the said goods (say 5% GST) Rs 5000 on the basis of goods/services receipt. On which supplies Fore-ward/Reverse charge will apply? In case of goods right now no such goods has been notified yet particularly on which tax liability is be discharged by reverse charge mechanism. However, if the goods are bought by the registered person under GST is from the un-registered person then the...

  Measures for promoting affording housing “It is proposed to exempt service tax on construction of affordable houses up to 60 square meters under any scheme of the Central or State Government including PPP Schemes.”   After a prolonged demand from industry, the Central Government announced above incentive and vide Notification no. 9/2016 dated 01 st March 2016 came up with a scheme of exemption from service tax liability pertaining to low cost houses up to carpet area of 60 sq meters to be developed by private developers. Before any new project could have seen the light of day under new exemption notification, and start under the new scheme, there comes a GST from 1 st  of July 2017 whereby this exemption to affordable housing by private builders, from service tax stands omitted in the new list of exempted services approved by GST council. Thus the group housing projects proposed by private builders up to a carpet area of 60 square meters no longer qualify for exemption ...

  Introduction A single tax structure is definitely a welcome move and the introduction of Goods and Services Tax (GST) seeks to do just that by way of amalgamating a large number of Central and State taxes into a single tax. GST will not only address the concerns of double taxation but will also help in reducing the overall tax burden on goods and services. Furthermore, it will also help in making Indian goods competitive internationally thus providing a much-needed boost to the economy. The Real estate industry is one of the most pivotal sectors in India and has seen a phenomenal growth, not just in cities, but even small towns. GST is another development that will have a significant impact on this sector. Let’s take a look at the impact of GST on the construction industry and the real sector. Transparency and Accountability :-  GST will lend a whole lot of transparency in the real estate sector while also playing a major role in minimizing unscrupulous (black money) transac...

  Measures for promoting affording housing “It is proposed to exempt service tax on construction of affordable houses up to 60 square meters under any scheme of the Central or State Government including PPP Schemes.”   After a prolonged demand from industry, the Central Government announced above incentive and vide Notification no. 9/2016 dated 01 st March 2016 came up with a scheme of exemption from service tax liability pertaining to low cost houses up to carpet area of 60 sq meters to be developed by private developers. Before any new project could have seen the light of day under new exemption notification, and start under the new scheme, there comes a GST from 1 st  of July 2017 whereby this exemption to affordable housing by private builders, from service tax stands omitted in the new list of exempted services approved by GST council. Thus the group housing projects proposed by private builders up to a carpet area of 60 square meters no longer qualify for exemption ...

  Introduction A single tax structure is definitely a welcome move and the introduction of Goods and Services Tax (GST) seeks to do just that by way of amalgamating a large number of Central and State taxes into a single tax. GST will not only address the concerns of double taxation but will also help in reducing the overall tax burden on goods and services. Furthermore, it will also help in making Indian goods competitive internationally thus providing a much-needed boost to the economy. The Real estate industry is one of the most pivotal sectors in India and has seen a phenomenal growth, not just in cities, but even small towns. GST is another development that will have a significant impact on this sector. Let’s take a look at the impact of GST on the construction industry and the real sector. Transparency and Accountability :-  GST will lend a whole lot of transparency in the real estate sector while also playing a major role in minimizing unscrupulous (black money) transac...

  Rental from Immovable Property in GST Regime The advent of GST has got impact on most sectors in India and rentals obtained from immovable properties aren’t exception to the new taxation either.  In India, the whole idea of giving rent for residential or commercial purpose is too common.  In the  GST regime , the issue of ‘renting of immovable property’ is addressed in schedule II.  The whole notion of taxation under GST for rentals from immovable properties is tricky. The schedule categorically includes two situations. If the whole purpose of opting for rent is residential in nature, there will be exemption for the user. Otherwise, if it is used with commercial viewpoint, 18% tax is applicable on the rental with reference to GST. Interstate or intrastate supply? The dilemma In the service sector, whether a supply is interstate or interstate is indeed a tricky proposition in the GST era. The GST regime clearly categories Central tax and State tax, which is ver...

  Works Contract- Definition A works contract is termed as a combination of supply of services and transfer of goods.  A few such examples of works contract are fabrication, construction, erection, renovations and repairs, installation of plant and machinery so on and so forth.   What the Previous Law States? As per the law  pre-GST , there is no need of any transfer of property, nor any other contract to be termed as works contract. Moreover, it comprised of three kinds of taxable activities. However, if a new product is to be formed during the course of completion of a works contract, such creation would be classified as a taxable and accordingly Central Excise duty is levied. This basically implies that a single activity has many facets attached to it which requires it to be taxed under various laws. Not only does this lead to confusions with regards to the treatment and taxability of the various aspects but also is one of the many reasons behind the development o...