Question 1

Do we provide Bookkeeping service for small business?

Accepted Answer

At DiJit Consulting we provide bookkeeping for small business to large company. Our company is known for the fast and accurate bookkeeping and its is cost effective also.

Question 2

Are bookkeeping services subject to taxation in India?

Accepted Answer

Yes, bookkeeping services in India are taxable. Key aspects include:

1. **Corporate Income Tax**: Domestic and foreign companies with effective management in India are subject to corporate income tax, with rates ranging from 20% to 40% depending on specific criteria.

2. **Goods and Services Tax (GST)**: GST applies to the manufacture, sale, and consumption of goods and services, with rates varying from 0% to 28% based on the service category.

3. **Tax Deducted at Source (TDS)**: Payments for professional or technical services are subject to TDS, with rates of 10% for professional consultancy and 2% for technical consultancy.

Consult a tax professional for tailored advice and compliance requirements.

Question 3

What does financial statement preparation involve?

Accepted Answer

Financial statement preparation involves maintaining accurate records of a company's financial transactions and operations. These statements provide a comprehensive overview of a business's cash flows, financial position, and performance, serving as a foundation for financial analysis and decision-making. Proper preparation requires a thorough understanding of accounting principles, standards, and meticulous data collection.

Question 4

Accounts receivable and payable management

Accepted Answer

It is essential to manage accounts payable and receivable well in order to evaluate the financial standing of a business. It is crucial to remember that one form of account is an asset and the other is a liability, even though the two types of accounts are documented in a manner that is somewhat comparable. Using the description provided above, it is now simple to determine that accounts payable is the money you owe your suppliers, while accounts receivable is the money your customers owe your company. This makes it quite evident to us which account in a company's financial statement is recorded under what circumstances. The money that is owing to you is known as accounts receivable and will be shown under assets. The money that is owed to you is known as accounts payable.

Question 5

Can GST registration be done online and is it mandatory?

Accepted Answer

As NATIONAL GOVERNMENT SERVICES PORTAL has announced that every business has to register for GST and  is mandatory for every small business company to multinational company and can be done online at https://services.india.gov.in/ or you can contact us for the registration process.

Question 6

When GST registration is required?

Accepted Answer

In India, GST registration becomes mandatory for businesses with an annual turnover exceeding ₹40 lakhs (₹10 lakhs for Northeastern and hill states). Additionally, individuals involved in e-commerce, interstate supply of goods, and acting as agents of a supplier must also register for GST . The necessary documents include the PAN card of the business or owner, owner’s photograph, valid phone number, email address, proof of business address, and bank account details . If your business falls into any of these categories, it’s crucial to complete the GST registration process to comply with the Goods and Services Tax law.

Question 7

What is GST registration process?

Accepted Answer

The GST registration process is explained below. 
Access the GST Portal:

Go to the official GST Portal (Goods & Services Tax (GST) | Home).

Click on “Register Now:

Click on “Registration” under the “Services” tab.
Then, select “New Registration.”

Select Taxpayer:

Choose the appropriate taxpayer category.

Enter Business Details:

Select your State/UT and District.
Enter your business name, PAN number, email address, and mobile number.

Verify Identity through OTP:

You’ll receive OTPs on your registered email and mobile number or PAN-linked contact details.
Enter these OTPs to proceed.

Receive Temporary Reference Number (TRN):

After completing Part A, you’ll receive a 15-digit TRN.
Note it down; you have 15 days to complete Part B.

Fill Part-B Details:

Log in again to the GST portal.
Select “New Registration” and enter your TRN.
Fill in all the required details in Part B and submit relevant documents1.

Remember, the process is online-based, and biometric Aadhaar Authentication is now mandatory for all of India. If you have any specific questions or need further assistance, feel free to ask!

Question 8

Is it possible to file GST returns independently?

Accepted Answer

While it is possible to file GST returns independently, it is advisable to consult a qualified Chartered Accountant (CA) to ensure accuracy and compliance with all relevant regulations. Filing GST returns involves several critical considerations, and professional assistance can help streamline the process. DiJit Consulting offers seamless GST filing services to manage your company's compliance efficiently.

Question 9

What are the key changes in the Company Incorporation Rules 2024?

Accepted Answer

The Companies (Incorporation) Amendment Rules, 2024, introduced by the Ministry of Corporate Affairs (MCA) in India, came into effect on July 16, 2024. Key changes include:

1. **Rule 8A Amendments**: The term “Nidhi” has been removed from clause (p) of Rule 8A.
2. **Other Omissions**: Clause (v) has also been omitted from Rule 8A.

These updates aim to streamline the incorporation process and ensure regulatory clarity.

Question 10

What are company incorporation documents?

Accepted Answer

The following paperwork must be submitted by an entrepreneur in order to incorporate their business.
(A) An association memorandum.
(b) The association's articles.
(c) A written commitment to purchase the qualifying shares and the prospective directors' consent to serve as directors.
(d) A contract designating, if applicable, the full-time director, manager, or prospective managing director.
(e) A copy of the letter authorizing the suggested company name that was acquired from the relevant registrar.
(f) A formal legal affirmation from the law certifying that all necessary paperwork and registration criteria have been submitted.
(g) The registered office's precise address.
(h) Verification in writing that the registration cost was paid.

Question 11

What is the process for company incorporation for startups?

Accepted Answer

The process for company incorporation for startups involves several key steps:

1. **Choose a Business Structure**: Decide on the legal structure, such as Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP).

2. **Check Company Name Availability**: Use the Ministry of Corporate Affairs (MCA) website's RUN (Reserve Unique Name) service to verify the availability of your proposed company name.

3. **Obtain Digital Signature Certificate (DSC)**: Acquire a DSC from a certifying authority, as it is required for all filings under MCA21 e-Governance.

4. **Associate DSC with MCA**: One of the directors must associate their DSC with the MCA portal.

5. **Draft Memorandum of Association (MOA) and Articles of Association (AOA)**: Prepare these documents to outline your company’s objectives, rules, and regulations.

6. **File SPICE+ Forms**: Use the SPICE+ form for incorporation. Part A reserves the name, and Part B completes the incorporation process.

7. **Conduct Pre-Scrutiny Check**: Ensure all details are accurate before submission.

Following these steps ensures a smooth incorporation process for startups.

Question 12

Company incorporation process

Accepted Answer

The process of incorporating a business and granting a company registration certificate are governed by the Companies Act 2013 (the "Act"). Without the registration certificate issued by the Registrar of Companies (ROC), an Indian company cannot conduct business. When the business complies with the Act's requirements, the ROC will issue the registration certificate.

The founders of the company should use the Ministry of Corporate Affairs ('MCA') website to submit an application for company registration. On February 23, 2020, the MCA introduced a new form for company incorporation called the SPICe+ form. The SPICe+ form is applicable to all newly incorporated businesses as of February 23, 2020. To Know more please visit our blog Company incorporation

Question 13

Are company incorporation cost tax deductible?

Accepted Answer

No, company incorporation costs are not directly tax deductible against Corporation Tax. However, certain related expenses, such as accountancy fees and drafting incorporation documents, can be deducted. Always consult a tax professional for personalized advice.

Question 14

Annual compliance for foreign subsidiary in India

Accepted Answer

The yearly compliance requirements for a foreign subsidiary operating in India include the following: submission of financial reports, conducting audits, holding an Annual General Meeting (AGM), filing taxes, adhering to corporate governance standards, making regulatory submissions, complying with FEMA/RBI regulations, paying statutory fees and maintaining a compliance calendar. The latter is crucial in ensuring all legal obligations and regulatory deadlines are met on time.

Question 15

What are transfer pricing rules?

Accepted Answer

In India, the regulations for transfer pricing are stipulated by the Income Tax Act, particularly sections 92 to 92F and the transfer pricing regulations under Rule 10A to 10E. These guidelines mandate that related businesses set transfer prices for transactions including goods sales, service provisions, or intangible assets transfers. The aim is to ensure these transactions occur at arm's length in order to deter tax evasion or manipulation. To prove adherence to these rules, companies are required to keep comprehensive records and meet transfer pricing reporting obligations as per the directives of tax authorities.

Question 16

Transfer pricing and its methods

Accepted Answer

In India, the concept of transfer pricing is employed to control the prices exchanged between related entities within multinational corporations, thereby averting any potential tax evasion. Various methods are utilized in this process such as Comparable Uncontrolled Price (CUP), which involves price comparisons with unrelated parties; Cost Plus, where profit is added to costs; Resale Price method that compares resale prices; Transactional Net Margin Method (TNMM) that compares net margins and Profit Split method which divides profits based on contributions. Companies select these methods depending on their transactions and maintain meticulous records for adherence to tax regulations.

Question 17

What are transfer pricing return?

Accepted Answer

In India, the term "transfer pricing return" pertains to the set of documents and data submitted by corporations involved in related party transactions. This is done in adherence to transfer pricing rules and regulations. The return encompasses specifics like the type and worth of dealings with associated parties, the selected transfer pricing technique, comparable utilized for benchmarking purposes, financial reports, among other pertinent details. The primary objective is to validate that transactions are executed at arm's length while also substantiating the company's chosen pricing methodologies.

Question 18

Transfer pricing report due date

Accepted Answer

In India, the due date for filing the transfer pricing report is typically on or before the due date for filing the income tax return. For most companies, this would be September 30th of the assessment year following the relevant financial year. However, it's essential to check the specific deadlines each year as they may be subject to change based on regulatory updates.

Elevate Your Business with Expert Consulting Services

At a time when changing customer needs, breakthrough technologies, and agile newcomers continue to reshape entire industries, competition at each turn continues to stiffen for any business looking to stay ahead of this fast-changing landscape.

About us

Payroll

Our business consulting services includes

GST registration, filing, compliance

Accounting

Foreign subsidiary compliances and transfer pricing

Accounting for U.S companies

Compliance

MIS, Process Implementations

Company Incorporation