Start-Up India Ideas to Build a New Ind

India has been recognized jointly of the highest start-up hubs within the world. particularly below the leadership of Narendra Modi there square measure many initiatives taken from the year 2016 to revolutionize the start-up businesses.

Start-up India Initiative is one such program taken by Prime Minister Narendra Modi that has benefited entrepreneurs across the country. This initiative was chiefly go for support the economic process and build higher and a lot of range of employment opportunities.

Let us examine the Facts and Figures of the Start-up India Initiative from 2016 until date:

NUMBER of recent begin UPS REVOLUTIONIZED

• 16, 578 new start-ups recognized through 499 districts
• 47% of start-ups started from Tier a pair of and Tier three cities
• A total of one,66,385 recent jobs Created by recognized start-ups.

REGULATION INITIATIVES TAKEN FOR sleek FUNCTIONIG OF BUSINESS

• Exemption from taxation Act of Section fifty six for investment raised by start-ups upto Rs.25 Cr
• Exemption from taxation Act for investments raised by such as corporations with no limits
• 22 regulative reforms enforced for simple conducting business
• Self certification regime for six Labour Laws and three Environmental Laws.

FUNDING AID TO START-UPS

• 66,000 metallic element funding for start-ups with a corpus of Rs.10,000 metallic element to support eight,000 corporations
• 2151 metallic element committed to thirty-nine speculator funds WHO have raised Rs.10,440 Cr
• 1819 metallic element endowed by speculator in 255 corporations, making twenty nine,895 employment opportunities.

INTELLECTUAL PROPERTY help

• 1031 Patent and Trademark facilitators to supply free support to start-ups
• Rebate of eightieth granted to 1403 start-ups for Patent filing fees
• 50% rebate granted to 2672 start-ups for Trademark filing fees

CONSTITUTING INNOVATIVE INFRASTRUCTURE

• 260 metallic element spent in establishing 2171 Atal Tinkering Labs in faculties across 623 districts
• 7 analysis Labs established with associate quantity of Rs. 665 Cr
• 77 new and existing incubators supported.

EASE OF NORMS PAVING for brand new AVENUES TO START-UPS

• For Government tenders the standards for previous expertise, minimum turnover and submission of cash deposit is waived off.

STATE START-UP REVOLUTION

• State Start-up ranking launched to boost a healthy competitive spirit
• Participation of thirty States and Union Territories
• Seed funding aid to 3213 start-ups
• 21 States have launched start-up policies
• Start-up India Yatra conducted in twenty one States to market entrepreneurship in rural and non railway system areas
• Mentorship support to seventy six,146 entrepreneurs across 195 districts
• 1314 start-ups offered free incubation.

START-UP India HUB-A TOTAL DESTINATION FOR START-UP CULTURE

• Having a community of three hundred thousand users and 599 investors, incubators and mentors
• 2,37,902 users have availed free Start-up India Learning Program to create business plans
• 647 start-ups supported through dedicated facilitation services
• 1262 start-ups connected to mentors.

If you have any questions or would like to discuss more about the taxation laws, our experts can ensure right business insights and best practices for you.

We can also assist you in setting up your business in India, accounting, bookkeeping, payroll, auditing, taxation, secretarial compliances, and trademark registration, business structuring and advisory services. If you require any assistance in this regard, kindly click here

Amendments to the Central Goods and Services Tax Act, under the Finance bill, 2019

Finance Minister Nirmala Sitharaman in her maiden Budget speech has sought to implement the amendments made by the GST Council under the Finance Bill, 2019. Here are all the major updates, along with our take on how this affects GST-registered taxpayers:

1. Section 10: Composition schemeA new sub-section has been introduced to bring in an alike Composition scheme for service providers, as well as suppliers of both goods and services (mixed suppliers), having an annual turnover of up to INR 50 lakhs in the preceding financial year. Below mentioned are some further explanations which are added to the section –

• Value of exempt supplies of services provided by way of extending deposits, loans or advances, with interest or discount as the consideration shall not be considered as part of the aggregate turnover, for determining eligibility into the scheme.
• Value of exempt supplies of services provided by way of extending deposits, loans or advances, with interest or discount as the consideration shall not be considered as part of the aggregate turnover, to determine the value of turnover in a particular State or Union Territory.

In addition, any supplies made from April 1, 2019 of the year till the date the taxpayer becomes liable for registration shall not be taken into account.

As committed by the GST council, the amendment brings into effect the composition scheme for all the mixed suppliers clarifying that services which include extending deposits etc. shall not be part of aggregate turnover.

1. Section 22 : Persons liable for registrationThe threshold limit for registration under GST is increased from INR 20 lakhs to INR 40 lakhs for a supplier of goods only. Only the suppliers of goods whose turnover exceeds INR 40 lakhs will now come under the purview of GST registration. The amendment is beneficial especially for small and medium taxpayers who need not to get themselves registered under GST unless their turnover exceeds INR 40 lakhs. This is applicable only to those who are exclusive suppliers of goods.
2. Section 25: Procedure for RegistrationThis is a new sub section introduced to mandate authentication using Aadhaar number for every registered person under GST. This section also prescribes the manner in which Aadhaar authentication needs to be done. In case a person fails to undergo Aadhaar authentication, then his registration would be deemed invalid. The mandatory disclosure of the Aadhaar number, first under the Income Tax Act, and now under the Central Goods and Services Act, shows the importance the Government has now placed on the Aadhaar Card. The government plans to administer both direct and indirect taxes via Aadhaar while PAN may continue to be in use for routine compliances.
3. Section 31A: Mode of PaymentThis will be a new section inserted in the CGST Act which will mandate certain registered suppliers to give their recipients the option of prescribed modes of electronic payment.
4. Section 39 : Section 39: Furnishing of returnsThis section has been amended to introduce an option for specified taxpayers to furnish their returns on a quarterly basis instead of monthly. Taxes will need to be paid monthly. The sub-section prescribes the time limit for Composition taxpayers to file their returns, which as per the Act, formerly need to have been filed every quarter. The Government has now introduced the annual filing of returns for Composition taxpayer, however, the tax will still need to be paid on a quarterly basis.
5. Section 49: Payment of tax, interest, penalty and other amountsTo remove inconveniences for taxpayers, a new sub-section has been added to facilitate the transfer of amounts paid under tax, interest, penalty, fee or any other amount that is available in the electronic cash ledger to the correct head under integrated tax, central tax, State tax, Union territory tax or cess in the electronic cash ledger, as applicable. This tax could not be utilized and would need to be paid again under the correct head. The introduction of this sub-section means that henceforth, all taxes that are incorrectly paid under the wrong heads of tax can now be simply transferred to the correct head.
6. Section 50: Interest on delayed payment of taxThis section has been amended to levy interest on unpaid taxes only to the extent of that portion paid in cash i.e. through the electronic cash ledger. This benefit will not extend to those cases where proceedings have been initiated under Section 73 and Section 74, i.e if there is a pending investigation and tax is due, interest shall have to be paid on the gross tax liability.

In conclusion, these amendments will help Indian government to move towards a cashless economy preventing the evasion of taxes. This will greatly reduce the cost and burden of compliance to these small businesses which had to file as many as 24 monthly returns in the past. Several other measures related to the back end infrastructure for registration and reporting of GST, administrative officials related to GST, etc. will also have to be put in place, before GST can be rolled out.

New company registration in India

The Taxation Laws (Amendment) Ordinance, 2019

The Taxation Laws (Amendment) Ordinance, 2019 was promulgated on September 20, 2019. The Ordinance amends the Income Tax Act, 1961, and the Finance (No. 2) Act, 2019. The Ordinance provides domestic companies with an option to opt for lower tax rates, provided they do not claim certain deductions.  It also amends certain provisions regarding levy of surcharge on income from capital gains.

Corporate tax rate reduced to 22 percent for all Domestic CompaniesThe Ordinance has inserted a new section – section 115BAA in the IT Act. As per this section, from the fiscal year 2019-20, all domestic companies shall have an option to be taxed at the rate of 22 % (plus applicable surcharge and cess), provided such companies do not avail specified exemptions/ incentives. Surcharge at the rate 10 percent shall be levied. Accordingly, the effective tax rate for Companies opting to pay tax under section 115BAA of the IT Act shall be 25.168 %. The ordinance further provides that domestic companies availing such reduced rate will not be required to pay Minimum Alternate Tax (MAT) under section 115JB of the IT Act, currently levied at 18.5% of book profits. The Ordinance further clarifies that companies, who do not wish to avail this concessional rate immediately, can opt for the same after expiry of their exemptions / incentives. However, once a company opts to be governed by section 115BAA of the IT Act, it cannot be subsequently withdrawn.

Income tax rate for new domestic manufacturing companiesThe Ordinance provides new domestic manufacturing companies with an option to pay income tax at the rate of 15%, provided they do not claim certain deductions under the Act.  New manufacturing companies include companies which will be set up and registered after September 30, 2019, and will start manufacturing before April 1, 2023. These will not include companies formed by splitting up or reconstruction of an existing business, engaged in any business other than manufacturing, and using any plant or machinery previously used in India (except under certain specified conditions).

Applicability of new tax ratesCompanies can choose to opt for the new tax rate (15% or 22%, whichever is applicable) starting the financial year 2019-20 (i.e. assessment year 2020-21).  Once a company has exercised this option, the chosen provision will apply for all the subsequent years.

Surcharge on tax payable at new ratesCurrently, domestic companies with income between one crore rupees and INR 10 crore are required to pay a 7% surcharge on tax.  Those with an income of more than INR 10 crore are required to pay a 12% surcharge on tax. The Ordinance provides that companies opting for the new tax rates (15% or 22%, whichever is applicable) are required to pay a 10% surcharge on the tax payable by them under the respective provisions.

MAT reduced to 15 percentCompanies opting for reduced rate under section 115BAA or section 115BAB of the IT Act shall be exempted from MAT. For companies not opting for reduced corporate tax rate, MAT under section 115JB is reduced to 15 % from fiscal year 2019-20.

Transfer pricing provisions to apply to Manufacturing Companies opting for reduced tax rateThe definition of the Specified Domestic Transaction (SDT) contained in Section 92BA of the IT Act is amended to bring the Companies opting to be covered by section 115BAB within the ambit of Transfer Pricing. Thus, any transactions entered into by newly set up manufacturing company, opting for reduced rate of 15%, with any of its related parties (domestic or otherwise) are to be at Arm’s Length. This amendment shall be effective from fiscal year 2019-20.

Tax on buy-back of sharesBuy-back of shares refers to a company purchasing its own shares.  When such purchase generates income for the company (because of an increased share price in comparison to the original issue price), the company is required to pay 20% tax on the income so generated.  The Ordinance exempts certain listed companies from this requirement. These are companies which made a public announcement regarding buy-back of shares before July 5, 2019 (as per the provisions of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018).

Surcharge on capital gainsTax and surcharge are levied on capital gains arising from transfer of securities in certain cases.  These include:

1. capital gains to foreign institutional investors from securities (other than the units purchased in foreign currency), and
2. capital gains to individuals, body of individuals, and association of persons from certain short-term and long-term securities liable to securities transaction tax (i.e. equity shares in companies and units of equity oriented funds and business trusts).

Across globe, corporate tax rates are declining. With this tax rate reduction, India has tried to bring its tax rate in line with other countries and has given level playing field to the domestic companies. The lower tax rate of 15 percent to domestic manufacturing companies will further strengthen the Government’s “Make in India” vision.


TAXATION SERVICES | COMPANY FORMATION

Tax Audit Report (Form 3CD)

In order to get the various amendments made to Income-tax Act, 1961 and other laws (indirect taxes) within the format of tax audit report (TAR), the Central Board of Direct Taxes (CBDT) issued notification No. 33/2018  on 20 July 2018 amending the report format of tax audit. These amendments to TAR will come in force from 20 August 2018, which implies that the tax audits filed with the Income-tax on or after 20 August 2018 will have to be in the amended TAR. The point wise changes have been discussed in the ensuing paragraphs:

1. Clause no. 4 of Form 3CD – Registration details of indirect taxesDetails regarding the registration number of Goods & Service Tax (GST) have been added.

2. Clause no. 19 and 24 of Form 3CD – Deduction for investment in new plant or machineryDisclosure with regard to section 32AD has been added in these clauses to Form 3CD. This section allows deduction in respect of investment made in new plant or machinery in notified backward areas.

3. Clause no. 26 – Section 43B Certain deductions on actual payment basisClause f of section 43B has been added for reporting under this clause which pertains to allowing of liability outstanding towards Indian Railways for use of their assets, on actual payment basis.

4. Serial no 29A – New clause introduced for section 56(2) (ix) of the ActThis section was introduced in Finance Act 2014 primarily to tax the advance amounts initially received against the capital asset in the course of negotiation and later forfeited and no transfer effected. Reporting under this section has been got under the TAR

5. Serial no. 29B – New clause introduced for section 56(2) (x)of the ActThis section of the Act widened the scope of taxability of any sum of money, immovable property or any other property received by one person from another person for no consideration or inadequate consideration.

6. Serial no. 30A – New clause introduced for section 92CE of the Act (‘Secondary adjustment’)Section 92CE was introduced by the Finance Act, 2017 which brought in the concept of secondary adjustment in the Act. According to this section, where there has been any primary transfer pricing adjustments made in the case of an assesse, under various circumstances, the assesse is required to make a secondary adjustment.

7. Serial no. 30B – New clause introduced for section 94B of the Act (‘Thin Capitalization’)Section 94B was introduced in Finance Act 2017 to limit the interest deduction in certain cases and to bring in the concept of Thin Capitalization. It is a situation where an entity is financed at a relatively high level of debt compared to equity. Some multinational companies engage in aggressive tax planning techniques such as placing higher levels of third party debt in high tax countries, using intragroup loans to generate interest deductions in excess of their actual third party interest expense, using third party or intragroup financing to fund the generation of tax exempt income. Certain relaxations are also provided under this section

8. Serial no. 30C – New clause introduced for section 96 of the Act (‘GAAR’)Section 96 (impermissible avoidance agreement) falls under the Chapter X-A (General Anti Avoidance Rule). This section was inserted to curb such arrangements where an agreement creates such rights between the parties to the agreement, by misuse of the provisions of the Act, which would not have been created in normal course between parties dealing at arm’s length. Under this clause, where the tax auditor is of the view that a particular arrangement falls under this provisions of the act then they are supposed to state the nature of such arrangement and the tax benefit created in the previous year to all parties in aggregate. Reporting under clause 30C has been deferred till 31^st March 2020 vide circular no. 9/2019 dated 14^th May 2019.

9. Serial no. 31 – Clause (ba), (bb), (bc) and (bd) introduced after clause (b) to serial no. 31 of TAR pertaining to section 269ST of the ActPursuant to introduction of section 269ST by Finance Act 2017, the TAR has been amended to include disclosure under this provision whereby there is a restriction on receiving by any person of an amount exceeding INR two lakh in aggregate from a person in a day; or in respect of a single transaction; or in respect of one event otherwise than by account payee cheque or account payee bank draft or use of electronic clearing system (ECS). Where this section of the act is applicable only to the recipient, the disclosure requirements even mandate the payer to make the relevant disclosures along with the name, address and PAN of the party involved.

10. Amendments have been made to the language of clause 31 (c), (d) and (e) of the TAR with regard to the provision of section 269T of the Act

11. Serial no. 34 – Clause (b) Details of eTDS returnsEarlier this provision required only reporting of the fact as to whether the eTDS statement submitted contains all details/ transactions (Yes/ No). Now with the amendment to this clause, the TAR requires reporting of such details/ transactions which have not been reported in the eTDS return. This will be a task for the assesse with huge volumes of transactions which will require reporting of all such entries.

12. Serial no. 36A – New clause for details regarding deemed dividend u/s 2(22) (e) of the ActUnder the provisions of this section where any company, in which public are not substantially interested, makes any payment by way of loan or advance, to any person who holds not less than 10 percent voting power or to any other person in which such shareholder has substantial interest, then such payment to the extent of accumulated profits, will be treated as deemed dividend.

13. Serial no. 42 – New clause for details regards Form no. 61, 61A and 61BThis requires reporting of details of submission and due date of the respective forms with the income-tax. It also requires the auditor to ensure if all the required details have been submitted and if not, then the unreported details/ transactions are required to be reported in Form 3CD. The details required to be submitted in respective forms have been given hereunder:

• Form 61 – this form requires details of all Form 60 to be submitted. Where transactions specified under Rule 114B of the Income-tax Rules, 1962 (‘the Rules’) have been undertaken by the assesse and document with that regard has been collected by the assesse without the PAN of the person giving the document, then the assesse is required to collect declaration in Form 60.
• Form 61A – Statement of specified financial transactions as given in Rule 114E of the Rules which mandates reporting of certain financial transactions undertaken during a particular financial year, before due date (31 May).
• Form 61B – Statement of reportable accounts in accordance with FATCA and CRS for a calendar year.

14. Serial no. 43 – New clause with regard to Country by Country Reporting (CbCR) u/s 286 of the ActSection 286 r.w.r 10DB specifies the Companies liable to comply with CbCR requirements. Entities to which CbCR is applicable need to comply with reporting requirements of Form 3CEAC and 3CEAD, wherever applicable. The details of parent entity, alternate reporting entity and date of furnishing of these reports are to be mentioned under this clause of TAR.

15. Serial no. 44 – New clause of expenditure with respect to registered / unregistered entities under GSTThis clause requires breakdown of entire expenditure debited to Profit & Loss a /c into the following heads:

• Relating to goods or services exempt under GST
• Relating to entities falling under composition scheme
• Relating to other registered entities
• Relating to entities not registered under GST
  Reporting under clause 44 has been deferred till 31^st March 2020 vide circular no. 9/2019 dated 14^th May 2019.

If you are looking forward for more updates about tax amendment or require assistance in filing of tax returns, tax assessments and tax audits, our team of experts can assist you in complying with the tax regime.

What cannot be a trademark?

What is a trademark?
The word, trademark means legally registered for representing a product or company . When competition is increasing, it becomes almost essential to differentiate your products or services from others.
The strive to stay in the market makes one concerned about their product’s quality. Trademark Registration concept may be quite new for Indians.

The Trade Marks Act, 1999 provides a platform for the registration of trademarks of goods and services, also provides the unique identification of the product and thereby also providing the manufacturer relief in case of infringement of his trademark.

Certificate Mark
This mark basically identifies the origin, material, quality, and characteristics of goods and services offered by a manufacturer from his competitors. It is also used in assessing the worth of labor in manufacturing goods or services.

Collective Mark
These marks differentiate the members of a collective group, which can be a cooperative organization or an association.

What cannot be a trademark?
Few are the points for refusal in India –

Distinctive Nature – The measure of being unmistakable is considered bad in the Indian law. The sign of an item or administration which isn’t of an unmistakable sort would not be a trademark.
Names / Surnames – Names or surnames cannot be used as a trademark in India if they do not possess a distinctive character.
Numerical – Numbers can’t be used to be utilized as a trademark, as such. In specific cases, the courts in India have reasoned that numbers don’t have a particular nature connected to them, consequently, not fitting the bill to be a trademark.
Geographical Location – Geographical locations cannot be used as trademarks.
Color – The Trade Marks Act does not specifically refuse the usage of color.
Sound – Melodic notes as melodic documentations are acknowledged as trademarks in India, yet clamors, for example, pooch woofing can’t be a trademark.
Smell – It is difficult to distinguish between different smells. Smell cannot go through the process of Trademark Registration in India.

Special Economic Zones (Amendment) Bill, 2019

The Special Economic Zones (Amendment) Bill, 2019 was introduced in Lok Sabha by Mr. Piyush Goyal, Minister of Commerce and Industry on June 24, 2019. It was first legislation to be passed by newly- constituted 17^th Lok Sabha. It amends the Special Economic Zones Act, 2005 and replaces an Ordinance that was promulgated on March 2, 2019.  The Act provides for the establishment, development and management of Special Economic Zones for the promotion of exports.

Salient features of the Bill
The SEZ (Amendment) Bill 2019 replaced an ordinance of March 2019, which amended the SEZ Act of 2005 to add two new categories – “trusts or any entity, as may be notified by the Central Government” – among those eligible for setting up units in the notified SEZs. Under the Act, the definition of a person includes an individual, a Hindu undivided family, a company, a co-operative society, a firm, or an association of persons.  The Bill adds two more categories to this definition by including a trust, or any other entity which may be notified by the central government. Below mentioned are the salient features of the Bill:

1. Boost to investment and employment generation

The government had already received eight applications from trusts from reputed companies proposing a total investment potential of INR 8,000 crore. The natures of these trusts or the kind of economic activities they are involved in are not clear yet. Though the opposition was skeptical about the usefulness of the amendment, the SEZs had generated 20 lakh jobs, brought investments worth INR 5 lakh crore, with exports worth INR 7 lakh crore by the end of March 2019.

2. Legroom for a wide range of trusts

The Bill opens up the possibility for all types of trusts to operate from the SEZs – public charitable trusts, private trusts run by big and small corporate houses, business trusts like real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), private companies with their own PF trusts and port trusts run by the government. These trusts run a wide range of activities ranging from health, education, skilling and other livelihood generation activities to manufacturing and financing.

3. Utilization of vacant land and non-operational SEZs

The amendment would also facilitate the use of the SEZ land lying vacant. According to the Ministry of Commerce and Industry, 40 % of the notified SEZs are non-operational and more than 50 % of land notified for the SEZ use is lying vacant.

By allowing trusts to set up units in the SEZs, the unused land could be put to productive use now.

The SEZs have contributed significantly to the economy. SEZs are major export hubs in the country as the government provides several incentives and single-window clearance system. The developers and units of these zones enjoy certain fiscal and non-fiscal incentives such as no license requirement for import; full freedom for subcontracting; and no routine examination by customs authorities of export/import cargo. They also enjoy direct and indirect tax benefits.

If you are looking for assistance to setting up a SEZ unit in India as per your business requirements and wish to gather more information about compliances associated with it to refine your business strategies, our team of experts can assist you throughout the process.

We can also assist you in setting up your business in India, accounting, bookkeeping, payroll, auditing, taxation, secretarial compliances, and trademark registration, business structuring and advisory services. If you require any assistance in this regard, kindly click here

The Taxation Laws (Amendment) Bill, 2017

Amongst the significant errors made by government for roll out of Goods and Service Tax (GST), The Taxation Laws (Amendment) Bill, 2017 was introduced in Lok Sabha on March 31, 2017. The main purpose for the Bill was to introduce suitable amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001, the Finance Act, 2005, and repeal provisions of few Acts to ensure smoother GST roll out. Below are some key features mentioned in The Taxation Laws (Amendment) Bill, 2017:
Amendments to the Central Excise Act, 1944
Currently, Central Excise Duty is levied on various excisable goods such as tobacco, petroleum products, rubber, oils, vehicles, etc.  This is proposed to be changed to levy duty only on certain kind of petroleum products such as motor spirit, high speed diesel, aviation turbine fuel and tobacco products. These goods on which the excise duty was levied were mentioned in the Central Excise Tariff Act, 1985.  These will be moved to the Fourth Schedule of the 1944 Act.  Note that the 1985 Act is proposed to be repealed under the Central Goods and Services Tax Bill, 2017.Currently, under the Central Excise Tariff Act, 1985, the central government has powers to change excise rates through notification in emergency circumstances.  The Bill inserts a similar provision in the 1944 Act.  Further, it also inserts a provision to allow the central government to amend the newly inserted Fourth Schedule through notification.
Amendments to Finance Act, 2001
The Finance Act, 2001 levies the National Calamity Contingent Duty on a variety of goods such as pan masala, tobacco products, telephones, motor vehicles, crude oil, and petroleum products. The Bill seeks to limit the levy only to tobacco products and crude oil.
Amendments to Customs Act, 1962
Below mentioned are the key amendments proposed in the Bill:

• Currently, under the Customs Act, 1962 imported goods remain in the customs area until they are cleared by customs authorities. Customs area includes ports, airports, etc.  The Bill extends the customs area to include warehouses.

• The Bill adds to a provision to the Act which requires several persons to furnish information to a proper officer under the Act (customs officer). Such persons and entities include: (i) income tax and state GST authorities, (ii) Reserve Bank of India, (iii) banks and financial institutions, (iv) stock exchanges and depositories (v) state electricity boards, (vi) Registrar of Companies, (vii) Registrar and Sub-registrar under the Registrar Act, 1908,(viii) registration authority under the Motor Vehicles Act, 1988, and (ix) Post Master General. The manner in which the information will have to be furnished will be notified by the government. The proper officer may serve a notice if the information is not furnished within the specified time.  Further, the officer may impose a fine after 30 days of serving the notice.  The fine will be of INR 100/day, until the information is furnished.

Amendments to Customs Tariff Act, 1975
Below mentioned are the key amendments proposed in the Bill:

• Goods imported will be liable to pay the Integrated Good and Service Tax (IGST). IGST will be levied on the aggregate of value of the imported goods, Customs Duty levied under the Act, and any other amount chargeable under any law.
  

• Goods imported will be liable to the GST Compensation Cess. The Cess will be levied on the aggregate of value of the imported goods, Customs Duty levied under the Act, and any other amount chargeable under any law.
  

Amendments to Finance Act, 2005
The Finance Act, 2005 levies an Additional Excise Duty on several items such as pan masala and tobacco products.  The Bill removes petroleum oils, crude and other related products from this list.
Repeal of several laws
The Bill seeks to repeal four laws which include the Sugar Cess Act, 1982 and the Jute Manufacturers Cess Act, 1983.  It also repeals certain provisions of 10 laws which include the Rubber Act, 1947, the Industries (Development and Regulation) Act, 1951, and the Coal Mines (Conservation and Development) Act, 1953.  Any un-collected duties (arrears) under the above Acts shall be collected by the respective collecting agencies and remitted to the Consolidate Fund of India.
If you have any questions or would like to discuss more about the taxation laws, our experts can ensure right business insights and best practices for you.
We can also assist you in setting up your business in India, accounting, bookkeeping, payroll, auditing, taxation, secretarial compliances, and trademark registration, business structuring and advisory services. If you require any assistance in this regard, kindly click here

New Initiatives for making company incorporation process easier

Incorporation means to get file your esteem company under the registry of the govern bodies. It is not only necessary but mandatory for all types of companies ranging from small enterprises to big entrepreneur to compile their companies under the respective company act. Different acts have been confined and stated for varied companies in India including LLP or LLC, private or public companies have varied concepts of business incorporation. Here we bring you with company incorporation services for all available types of firms.

Business incorporation enables the company to boost its reputation and goodwill in the target market. One can easily apply for any of the legal benefits under the specific act. Besides these; business incorporation firms can easily find the varied alternatives for company funds or outside finance assistance. The same process will also support the company to get the level of authorative where the business can easily explore its potential ways.

Key takeaways from the initiatives taken by the MCA towards ease of doing business in India on the occasion of 69thRepublic Day.

1. No incorporation fee: Companies with authorized share capital up to Rs. 10 lakh can be incorporated in India with Zero registration Fee.
2. Introduction of ‘RUN’: New web service for reservation of name has been launched for name reservation called “Reserve Unique Name”. It is a one pager e-form into which one name of proposed company can be reserved without obtaining DIN and Digital Signature
3. Reduction of time limit for reservation of Name: MCA has reduced the time period from 60 days to 20 days for reservation of name
4. No resubmission for reservation of Name: It can be either rejected or approved in one go.
5. Simplified process for incorporation of company: by removing the requirement of affidavit with declaration from the proposed directors and promotors.
6. New process for obtaining DIN: The process of allotment of DIN has been re-designed by allotting it through the combined SPICe form only at the time of an individual’s appointment as Director.

E-commerce firms may get 6-month tax breather
The provision of tax collected at source (TCS) imposed on suppliers selling products on e-commerce websites like Flipkart and Amazon in the goods and services tax (GST) regime is likely to be deferred by six months. The recommendation by the law review committee may come as a breather for e-commerce players, which have been strongly opposing the additional levy. The TCS of 1 per cent to be charged collectively by the Centre and states was kept in abeyance till April 1, 2018, by the GST Council in October along with the reverse charge mechanism and the e-way bill. However, in light of revenue leakage concerns, the e-way bill to track the movement of inter-state supply of goods will be implemented from February 1, while reverse charge mechanism on composition dealers may be implemented any time now. “The provision pertaining to TDS and TCS can be kept in abeyance for at least six more months, is the view taken by the law committee,” said an official. A final decision on deferring the TCS further will be taken by the GST Council in its next meeting.

Single GST Registration for Airlines, Banks on the Anvil
The government is considering a nationwide single GST registration process for the aviation, banking and insurance sectors, people in the know of the matter said.
A single registration will potentially solve a majority of the compliance problems that services companies have been complaining about. They now have to register themselves and file GST returns in every state or union territory (UT) they operate in.
But the change will require the approval of the GST Council, the top decision-making body under the new tax system, where states are expected to oppose it fearing revenue loss as they have done when the proposal had come up before, tax experts said.
While goods-producing industries were used to making multiple state-wise returns for value-added tax under the previous regime, this is a new requirement for services companies, which complain it as a cumbersome process involving lot of paperwork and manpower.

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The Companies (Second Amendment) Ordinance, 2019

The Companies (Second Amendment) Ordinance, 2019 was introduced as a replacement of the 2018 Ordinance. It has been formed on the basis of the recommendations of the Committee so as to fill crucial gaps in the corporate governance and compliance framework as enshrined in the Companies Act while extending greater Ease of Doing Business to law-abiding corporates. Prior to its promulgation on February 21, 2019, two similar ordinances were enacted. This particular Ordinance with added provisions is considered to be effective from the date of release of the first Ordinance, i.e. November 2, 2018.

Key features
Below mentioned are the key features for the Companies Ordinance, 2019

1. Re-categorization of certain offencesThe 2013 Act contains 81 compoundable offences punishable with fine or fine or imprisonment, or both. These offences are heard by courts. The Ordinance re-categorizes 16 of these offences as civil defaults, where adjudicating officers (appointed by the central government) may now levy penalties. These offences include issuance of shares at a discount and failure to file annual return.

2. Commencement of businessThe Ordinance states that a company may not commence business, unless it files a declaration within 180 days of incorporation, confirming that every subscriber to the Memorandum of the company has paid the value of shares agreed to be taken by him, and files a verification of its registered office address with the Registrar of Companies within 30 days of incorporation.  If a company fails to comply with these provisions and is found not to be carrying out any business, the name of the Company may be removed from the Register of Companies.

3. Registration of chargesThe Act requires companies to register charges (such as mortgages) on their property within 30 days of creation of charge. The Registrar may permit the registration within 300 days of creation.  If the registration is not completed within 300 days, the company is required to seek extension of time from the central government.

4. Issue of shares at a discountThe Act prohibits a company from issuing shares at a discount, except in certain cases.  On failure to comply, the company is liable to pay a fine between INR 1 Lakh and INR 5 Lakh every officer in default may be punished with imprisonment up to 6 months or fine between INR 1 Lakh and INR 5 Lakh. The Ordinance changes this to remove imprisonment for officers as a punishment. Further, the company and every officer in default will be liable to pay a penalty equal to the amount raised by the issue of shares at a discount or INR 5 Lakh, whichever is lower. The company will also be liable to refund the money received with interest at 12% per annum from the date of issue of the shares.

5. Change in approving authorityUnder the Act, change in period of financial year for a company associated with a foreign company, has to be approved by the National Company Law Tribunal.  Similarly, any alteration in the incorporation document of a public company which has the effect of converting it to a private company has to be approved by the Tribunal.  Under the Ordinance, these powers have been transferred to central government.

6. Declaration of beneficial ownershipIf a person holds beneficial interest of at least 25% shares in a company or exercises significant influence or control over the company, he is required to make a declaration of his interest. Under the Act, failure to declare this interest is punishable with a fine between INR 1 Lakh and INR 10 Lakh, along with a continuing fine for every day of default. The Ordinance provides that such person may either be fined, or imprisoned for up to one year, or both.

7. CompoundingUnder the Act, a regional director can compound offences with a penalty of up to five lakh rupees.  The Ordinance increases this ceiling to INR 25 lakh.

The Ordinance changes this to permit registration of charges within 300 days if the charge is created before the Ordinance or within 60 days if the charge is created after the Ordinance. If the charge under the first category is not registered within 300 days, it must be completed within six months from the date of the Ordinance.  If the charge under the second category is not registered within 60 days, the registrar may grant another 60 days for registration.

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