Jan 302013
 

One Person Company – The ‘One’ way to form a Company

The word company literally implies the idea of an association of more than one. In the corporate sector a company is run by a group of people or an amalgamation who jointly strive for profits. The One Person Company (OPC) concept rules out this convention and proposes a whole new and exceptional design, a company that can be started and run by a single person. This conception has been previously alive abroad, and as the Company’s Bill 2012 will be enacted into a law, it would be permissible in India too. Clause 2(62) of the Bill defines One Person Company and allows a single person to start a company.  Including an acquaintance for the namesake partnership to legally obtain the recognition of a company is no longer an obligation. An individual can now register as a company under this clause with the legal and monetary liability is restricted to that company and not to the individual.

The person must comply with the requirements of the clause at time of incorporation and register a nominee with his prior assent. The nominee shall be accountable to handle the company and take full charge in case of death or inability of the registering member. However, the nominee has the full liberty to withdraw from the same at any point of time; as well the registered member has all the rights to change the nominee as per his wish. The business chronicled as an OPC  must always mention ‘One Person Company ‘ in brackets next to the company’s name, whenever and wherever the name happens to appear.

It mitigates the member from the burden of unlimited liabilities as a proprietor and eases the entry of such aspiring entrepreneurs as an organized company into the corporate world. As a One Person Company, the individual can avail the benefits of proprietorship and enjoy a place in the corporate by registering under the clause.

Some of the advantages that follow along with this focal plus side are:

  • Better opportunities for loan and banking facilities as a company
  • Unorganized proprietorship into organized structure of accompany
  • No cash flow statements  required
  • Annual return need not be necessarily signed by a company secretary
  • Annual general meeting is not essential and general meetings/extraordinary general meetings are not applicable in this case.

With these perks beside, it appears as a means to rise and flourish in an organized and structured form of a company. It certainly is a good alternative to proprietorship and India will open doors to all folks who wish to come up as a company as soon as the One Person Company plan is brought into action by law.

Jan 232013
 

TDS exempted on Certain Payments

TDS refers to the tax deduction at source; it is the tax deducted by the employer, from the salary at a fixed rate when the salary is credited. The central board of direct taxes (CBDT) has exempted certain categories of payments from TDS (tax deduction at source) including specific services offered by the banks.  The finance ministry has decided so as to reduce the burden of compliance on businesses, individuals, firms, corporate etc using the financial services offered by the banks. From Jan 1, 2013, the businesses need not pay any tax on these services.

The payment categories exempted from tax deduction are:

  • Bank guarantee commission
  • Cash management service charges
  • Depository charges on maintenance of Demat accounts
  • warehousing service charges for commodities
  • Underwriting service charges
  • Clearing charges (MICR charges)

Also credit card/ debit card commission for transactions between the merchants’ establishment and acquirer bank refrains from tax deduction.

All the above mentioned payments being made to the banks specified under the second schedule of the Reserve Bank of India Act, 1934 are exempted from TDS. However, foreign banks are excluded from this release.

CBDT has conveyed this news of exemption to the general public by way of NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012. This notification has been initiated to implement the powers granted by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961).

This notification serves the purpose of eliminating the ambiguity about the TDS provisions application on the certain payments and the subsequent legal action. It also encourages the use of plastic money in the economy by exempting the tax deduction on the connected transactions.

Jan 162013
 

Dear All,

Filing of Balance Sheet and Profit & Loss Account A/c in XBRL Format for the Financial Year commencing on or after 01-04-2011 has been extended upto 15th February 2013 or 30 days from date of AGM whichever is later.

Download Circular No.01 / 2013

As per MCA, the following class of companies should file their Financial Statements in XBRL format.

(i) All companies listed in India and their Indian subsidiaries; or
(ii) All companies having a paid up capital of Rs. 5 Crore and above; or
(iii) All companies having a Turnover of Rs 100 Crore or above; or
(iv) All companies who were required to file their financial statements for FY2010-11, using XBRL mode.

For any query, Please feel free to call us on the below mentioned numbers,

Support Team – InstantXBRL.
022-66278600 & choose Option 5

Jan 152013
 

ESIC New Inspection Policy

ESIC issued new guidelines for Inspection, to their offices.

Salient features are as under :

a) Effective date is 1st April 2012.
b) Less than 250 coverage, inspection will be once in 3 years.
c) 250 or more coverage, inspection will be once in 2 years.
d) Contractor’s Inspection will be annually.
e) Apart from Inspection, Inspector will talk to Insured persons (Satisfaction Survey).
f) Checking of  “Pahachan Card”.
g) Issues from employees.
h) Issues of Employers.

Download Circular

“Courtesy: http://blog.pcsmgmt.com”

Jan 152013
 

New EPF Form No 11

A New Amendment has been arrived in Form-11 for identification of Indian International Workers – HO No. IWU/7(29)/2012/Review IW/22134 dated 17/10/2012

Update the same in your records & in joining formalities.

Download New EPF Form11

“Courtesy: http://blog.pcsmgmt.com”

 

Jan 152013
 

TDS Projections for Salaried Employees.

TDS is one of the easiest way of collecting income tax from Employee’s Salary who come under tax payer’s bracket. This sort of income tax from the income of an employee is collected on the day of making salary payment at source and is  deposited to the credit of the Central Government in a given time frame.

Employer does the Tax projection of Employees in the beginning of the year. Employees can plan their Investments to save tax. Investments can be done in Life Insurance Schemes, Tax Savings Mutual Funds, National Saving Certificates, Long term Bank deposits, Education fees paid for the children, Medical Reimbursements, Provident Fund etc.  Based on this declaration, Employers will deduct tax from the projected taxable salary for the whole year.

TDS is deducted from the monthly salary of an employee before making payment of salary to an employee. The TDS is deducted by deductor who is an employer and from whose salary the tds is deducted is deductee.

Benefits to the Employee :

1.TDS is cut off every month and the entire record is maintained. An employee does not need to pay the large sum of tax at one time.
2. As the TDS projection is generally given in the beginning of the year, Employee can plan his investments to save tax.
3. Employee comes to know the TDS, which is done every month by an employer and taking into consideration the amount which he actually gets in his hand, he will be able to plan his monetary transaction or financial investment.
4. Employee does not have to worry about maintaining a record of tds transaction and it becomes employer’s burden of handling and keeping an employee’s record of tax deducted at source.