GST registration, filing, compliance

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.

Yes, bookkeeping services are subject to taxation in India. Here are the key points: Corporate Income Tax: Domestic companies (registered under the Companies Act) and foreign companies with effective management in India are liable for corporate income tax. The tax rate varies between 20% to 40% based on company particulars. Goods and Services Tax (GST): GST is a single value-added tax on the manufacture, sale, and consumption of goods and services. It replaced previous federal and state levies to create a uniform market across India. GST rates range from 0% to 28%, depending on the category of goods and services. Tax Deducted at Source (TDS): For payments made to residents for professional or technical services, TDS applies. TDS rates are 10% for professional consultancy and 2% for technical consultancy. Remember to consult a tax professional for specific advice related to your business and compliance requirements.

Preparing financial statements, which entails keeping records of a company's financial transactions and operations, is an essential part of financial management. Financial statements support financial analysis and decision-making by offering a thorough summary of a business's cash flows, position, and financial performance. An extensive understanding of accounting rules, standards, and procedures is necessary for preparing financial statements correctly. Precise and meticulous collection and reporting of financial data are also necessary.

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.

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.

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.

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!

Although you have the option, if you want to know how to file GST return check our Blog (Blog link to be inserted). Although it is recommended that you contact expert CA to submit your GST returns because there are numerous important factors to take into account. That's Where we come in Handy for your business GST filing. We Provide Seamless service for GST Filing, and look after your company GST return and filing.

The Companies (Incorporation) Amendment Rules, 2024 were introduced by the Ministry of Corporate Affairs (MCA) in India. Here are the key changes: Effective Date: These rules came into force on 16th July 20241. Rule 8A Amendments: Nidhi Companies: The term “Nidhi” has been omitted from clause (p) of rule 8A. Other Omissions: Clause (v) has also been removed from rule 8A

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.

Choose a Business Structure: Decide on the legal structure for your startup. Common options include Private Limited Company, Partnership Firm, or Limited Liability Partnership (LLP)1. Check Company Name Availability: Visit the Ministry of Corporate Affairs (MCA) website and use the RUN (Reserve Unique Name) service to check if your proposed company name is available2. Obtain Digital Signature Certificate (DSC): All filings under MCA21 e-Governance require a DSC. Choose a certifying authority and follow their process to obtain a DSC2. Associate DSC with MCA: One of the directors (who will sign the forms) must associate their DSC with MCA. Follow the steps on the MCA website2. Draft Memorandum of Association (MOA) and Articles of Association (AOA): Prepare these essential documents that define your company’s objectives, rules, and regulations3. File SPICE+ Forms: Use the SPICE+ form for company incorporation. Part A reserves the name, and Part B completes the incorporation process1. Conduct Pre-Scrutiny Check: Ensure all details are accurate before submitting the forms

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

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.

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.

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.

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.

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.

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.