Jan 312013
 

EPF (Employees’ Provident Fund) Linked With Aadhaar Card

Trying to open an Employees’ Provident Fund Account? Ensure an aadhaar number first. The employees provident fund organization (EPFO) has mandated to provide aadhaar card numbers in order to register for an EPF account. Employees joining from March 2013 into the organised sector, looking forward to open an EPF account will call for an aadhaar card at hand.

Entry of new members under the EPF scheme will go on at the same pace, but plenty of the aspiring members might not have their aadhaar numbers. Aadhaar is basically  the unique identification number issued to the individuals for the purpose of establishing a sole identity of each. Those who have been lucky to get themselves enrolled have been awaiting their cards for quite a long. Whereas, the other workers or employees who may hail from, distant and remote areas where the idea of aadhaar has not even reached have been disadvantaged of the enrolment too. Thus leaving a large number of people deprived of their aadhaar numbers.

 Linking EPF with aadhaar card is a way of the government to push more and more people into enrolment for the UID (UNIQUE IDENTITY) cards. And the EPFO suggests the employers to contact UIDAI (UNIQUE IDENTIFICATION AUTHORITY OF INDIA) in order to lay down camps or centres nearby workplaces /industries/offices so that employees at work can easily start off with the process and avail of it at the earliest

 However, for those who do not have the cards can get an Enrolment ID (EID) as per the EPFO plan which can be later transformed into their aadhaar numbers

By June 30th, the 50 million existing members must present their aadhaar numbers to the EPFO as aadhaar is now an essential Know Your Customer (KYC) credential. Besides, it will be of great help to the EPFO members and to those seeking benefits under the scheme will also be facilitated by providing your aadhaar number. All subscribers of EPFO, old or new must hurry, enroll and fetch their aadhaar card numbers.

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.