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An overview:
Every person has to pay tax on the income earned through various sources. It can be in manyforms such as Advance Tax, Self-Assessment Tax. One of the other forms isTax Deducted at Source (TDS). Normally the responsibility to pay tax is of the taxpayer. However, the Government introducedthe concept of TDS where the liability of taxpayer is deposited by the person who make the payment to the taxpayer. In a simple way, the responsibility to deduct TDS shall be of the person who is liable to make payment of specified nature (referred as Deductor) to any other person (referred as Deductee). After deducting the TDS, he shall remit the same to the Central Government. Deductee from whose income TDS has been deducted will get credit of the amount so deducted only when the deductor has filed the TDS Returns.
⇒ Mandatory Compliance
Every person who are liable for deducting TDS as per the provisions laid down in the Income Tax Act, 1961 shall deduct the same and quarterly file the TDS Returns.
⇒ Levy of Late Fees
If a person fails to file the TDS Return by the due date, then he will be charged with the late fees of Rs 200 per day till the TDS return is filed. However, it will not exceed the amount of Late Fees.
⇒Levy of Penalty
If a person fails to file the TDS Return by the due date or filed an incorrect TDS Return then in addition to the late fees, Penalty may be levied by the department which shall be minimum Rs 10,000 and can be up to Rs 1,00,000.
⇒ Notice from Department
If the person fails to file the TDS Returns then he may receive notice from the Government for the non-compliance of the provisions which may lead to heavy penalty and late fees.
Different types of forms are prescribed for filing the TDS returns depending upon the nature of the payment. Details of the same are mentioned below:
This is a quarterly statement of deduction of tax u/s 200(3) of the Income Tax Act which is used to file the details of TDS deducted on the payment of Salaries.
This is a quarterly statement deduction of tax u/s 200(3) of the Income Tax Act which is used to file the details of TDS deducted in respect of all payments except Salaries.
This is a quarterly statement deduction of tax u/s 200(3) of the Income Tax Act which is used to file the details of deduction of tax from Interest, Dividend or other sum payable to Non-Residents.
This is a challan cum statement for deduction of tax under section 194-IA as per which TDS shall be applicable on sale of immovable property wherein sales consideration is more than Rs 50 Lacs.
This is a challan cum statement for deduction of tax under section 194-IB as per which Individual and HUFs who pay rent exceeding Rs 50,000 will have to deduct TDS @ 5%.
For Filing Form 24Q, 26Q,27Q
Quarter | Due Date |
Apr-Jun | 31st July |
Jul-Sep | 31st October |
Oct-Dec | 31st January |
Jan-Mar | 31st May |
For Filing Form 26QB
Form 26QBneeds to be filed within 30 days from the end of the month in which payment was made.
Late Fees leviedon Late Filing of TDS Returns
If the person fails to file the TDS return on or before the due date of furnishing the return then personis liable to pay late fees of Rs 200 per day till the time default continues. However, the total amount of late fees shall not exceed the TDS amount.
For Filing Form 26QC
Form 26QCneeds to be filed within 30 days from the end of the month in which payment was made. For instance, if tax is deducted in March, the last day to deposit the tax and file 26QC will be 30 April 2020.
Penalty levied on Late Filing of TDS Returns
If the person fails to file the TDS return on or before the due date of furnishing the return then in addition to the late fees, Penalty may be levied by the department which shall be minimum of Rs 10,000 and can be up to Rs 1,00,000.
Avoid Levy of Late Fees
If a person fails to file the TDS Return by the due date, then he will be charged with the late fees of Rs 200 per day till the TDS return is filed. However, it will not exceed the amount of Late Fees.
Avoid Levy of Penalty
If a person fails to file the TDS Return by the due date or filed an incorrect TDS Return then in addition to the late fees, Penalty may be levied by the department which shall be minimum Rs 10,000 and can be up to Rs 1,00,000.
Avoid Notice from Department
If the person fails to file the TDS Returns then he may receive notice from the Government for the non-compliance of the provisions which may lead to heavy penalty and late fees.
Eligible to claim expense under Income Tax
If any payment is covered by the Income Tax Provisions under TDS and while making payment you have not deducted TDS on the same, the department will disallow the amount to claim as business expenseunder the Income Tax Act. Therefore, deduction of TDS will allow you to claim the same as business expense and reduce the income tax liability.
Genuineness of Expenses
If the TDS is deducted on the expenses by the deductor then it ensures the genuineness of expense to the Government as the transaction has been recorded in the database of the Government.
Among all, the first step involved for the process of company incorporation is ascertaining the availability of name. A company is identified through its name it registered on the Ministry of Corporate Affairs. Hence choosing an appropriate name is the important and crucial thing.
For the same, an application will be submitted for the reservation of name to the Ministry of Corporate Affairsby login to the sitehttps://www.mca.gov.in/mcafoportal/login.do and preference wise 2 names along with the business objective can be provided. Once the name gets approved, it’s reserved for 20 days within which applicant needs to complete all the remaining process for the incorporation of the Company.
Stakeholders shall ensure that the proposed name selected does not contain any word as prohibited in Section 4(2) & (3) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014.Points to be considered while suggesting the name:
-Check Trademark for your proposed name on the site https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx
– Check domain for your proposed name on the site https://www.registry.in/index
-Check the availability of Company Name on the site https://www.mca.gov.in/mcafoportal/viewCompanyMasterData.do
Therefore, choosing an appropriate name which does not prohibit any law will be the most important thing.
There is also another way to finalize the name of company and its incorporation in one go i.e., apply name and company incorporation together. However, if the same has been rejected by the MCA, then all the documentation will be done again
Once the name gets approved in PART A, the basic details will be automatically filled in all linked forms of PART B. There will be total 4 linked forms which will be generated such as AGILE-PRO, Spice+ MOA, Spice + AOA and INC-9. These linked forms will be filled up with the necessary details like capital subscription, name of shareholders and directors, percentage of holding among the shareholders, Interest of shareholders in other entities, etc.
For completion of the Part B, many other details and documents will be required which is discussed as below:
For the E-filing of all the forms, Digital Signature is a mandatory requirement. Digital Signature is in form of digital key containing all the information about the registered signatory like name, address, Contact No, Email ID and the authority detail which has provided the certificate. All the forms will signed digitally by the authorized signatory by proving its identity through the Digital Signature Certificates.
Director Identification Number is a unique identification number of 8 digits for the directors of a Registered Company.Every director will be provided a unique number with which he will be identified by the MCA. To become a director, one shall apply for getting the DIN from the MCA.To applying DIN, the applicant has to make an application in e-Form DIR-3 and shall follow the below mentioned process
This form is for GSTIN, Employees Provident Fund Organization registration, Profession Tax Registration, Opening of Bank Accounts, Shops and Establishment registration.
It is mandatory to register for ESIC, EPFO, Professional Tax (for Maharashtra) and bank account opening to obtain AGILE-PRO via e-form, However, GSTIN Registration is optional for the applicants.
MOA is a document which contains all the fundamental information about the company, the objectives of the company in brief, the share capital, type of Shares whether equity or preference and its shareholders details, details of allocation of shares among the shareholders along with their name, address and occupation, etc. Company can perform and undertake only those activities that are mentioned in the objectives of Memorandum of Association beyond which the company cannot undertake any other objective but the Memorandum of Association (MOA) can be amended with the approval of the shareholders.
As per Section 4 of the Companies Act, 2013, Companies shall form MOA as specified in Tables A to E of Schedule -I of the Act. Below is the list of tables with their meaning:
Table A: Company Limited by shares
Table B: Company limited by guarantee and not having a share capital
Table C: Company limited by guarantee and having a share capital
Table D: Unlimited Company and not having share capital
Table E: Unlimited Company and having share capital
Hence Company shall adopt an appropriate table applicable to it as there are various forms of tables for different companies.
AOA defines the rules and regulations that govern the internal management of the company for achieving its objectives.
Various forms in Tables F to J for different companies have been mentioned under Schedule I of the Companies Act 2013 and AOA must be in the respective form.
Table A: Company Limited by shares
Table B: Company limited by guarantee and having a share capital
Table C: Company limited by guarantee and not having a share capital
Table D: Unlimited Company and having share capital
Table E: Unlimited Company and not having share capital
Declaration shall be given by the subscribers and directors in the form INC-9 that:
Once all the above documents and details are ready, then the application for the incorporation of the company can be made via e-form Spice accompanied by Spice MOA and Spice AOA with the registrar under whose jurisdiction the address of the company is located. All these e-forms need to be affixed by the Digital Signatures of the respective persons.
The Registrar of Companies will grant a Certification of Incorporation along with the Copy of PAN, TAN, EPF, ESIC which will be used as for the identity of the company existence.
Once the company gets incorporated then there are many compliances which need to be performed by the company
The Company within thirty days of its incorporation shall furnish to the Registrar of Company regarding verification of its registered office by filing the e-form INC-22.
INC-22 shall be downloaded from the Ministry of Corporate Affairs site and any of the following document will be attached with this form:
Every Company incorporated shall within 180 days of its incorporation shall file the declaration for the Commencement of the Business with the Registrar of Company. It is the declaration regarding that all the subscribers to the MOA have deposited the total value of the shares agreed to be taken by them in the Company Bank Account. Proof for the same shall be attached while filing the form INC-20A. Bank Statement shall be used as the evidence for the same.
COMPLIANCESPRO has a separate team which is expert in completing this complex process very easily and helps you to get the company registered within 3 daysonly in a very reasonable price.
