Compliance requirements under various acts after formation of company

This article discusses the compliance requirements under various acts after the formation of company.

A. ROC Compliances

After Incorporation of Co. –

Immediately after incorporation, Company should open Bank Current Account. PAN Card registered in the name of your company and a copy of a Board Resolution authorizing opening a bank account in the name of the company

Particulars Form Name Timeline
Appointment of auditor ADT 1 30 days of Incorporation in first board meeting
Disclosure of Interest in other Entities Form MBP 1 In First Board Meeting
Company disclosure of non-disqualification of Directors DIR – 8 Within Financial Year
Declaration of Commencement of Business Inc 20A 180 days from Incorporation
Annual Return MGT-7 Within 60 days of AGM
Financial Statement: i.e Balance Sheet along with Statement of Profit and Loss Account and Directors’ Report AOC-4 Within 60 days of AGM
Director E KYC- Any director holding DIN as on 31st March of FY DIR-3 KYC Before 30th Sep of next FY

Meetings: Every Company shall hold a minimum number of Two Board Meetings of its Board of Directors every year in such a manner that Minimum gap between both the meetings not less than 90 (Ninety) days.

One AGM : Within 6 months from end of FY

Maintenance of Statutory Registers

Minutes Book of Board Meetings

Compliance Rules Regulations Policies Codes Concept

B. Income Tax Compliances

1. Preparation of Books of Accounts and Financial statements: Various software available for book keeping are Tally, Busy, Quickbooks

2. TDS Compliances

Particulars Due Date
TDS to be deducted on payments exceeding certain limit

Due date for March TDS

To be deposited by 7th of next month

30th April

Quarterly TDS Returns
April- June 31st July
July to Sep 31st Oct
Oct to Dec 31st Jan
Jan to Mar 31st May

TDS certificates are to be issues to deductees within 15 days from the due date for filing TDS Return

Various softwares are available for filing TDS Return like Webtel, Genius

3. Advance Tax

Estimated P&L should be prepared for the Current FY. If tax Liability exceeds 10,000 advance tax is to be deposited as per below table

Due Date Advance Tax Payable
On or before 15th June 15% of advance tax
On or before 15th September 45% of advance tax
On or before 15th December 75% of advance tax
On or before 15th March 100% of advance tax

Filing of Income Tax return: In Form ITR 6

Due date is 30th Sep. For FY 2020-21 it is extended to 30th Nov.

4. Tax Audit Report

Category Threshold
Business Turnover Upto 2 crores Profit declared is less than 8% of turnover
Profession Gross receipts exceed 50 lacs
Profession Gross receipts below 50 lacs Minimum 50% of receipts should be declared as income

Form 3CB and 3CD is to be filed by Chartered Accountant

C. GST Compliances

If turnover exceeds 40 lacs in case of supply of goods ( for special category* states limit is 20 lacs) and 20 lacs for supply of services. GST Registration is mandatory. GST registration is required in following cases irrespective of turnover:

1. Interstate suppliers

2. Casual Taxable persons

3. Persons taxable under the reverse charge basis

4. Non-resident taxable persons

5. Persons required to deduct TDS under GST

6. Persons required to deduct TCS under GST

7. Input Service Distributors

8. Persons making a sale on behalf of someone else whether as an Agent or Principal.

9. Every E-commerce Operator who provides a platform to suppliers to make supply through it.

10. Suppliers who supply goods through E-commerce operator who is liable to collect tax at source.

11. Online Service Providers providing service from outside India to a non-registered person in India.

*Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand

Filing of GST Returns

Return Form Particulars Frequency
GSTR-1 Details of outward supplies of taxable goods and/or services affected Monthly
GSTR-3B Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer Monthly
GSTR-4 Return for a taxpayer registered under the composition levy Quarterly
GSTR-5 Return for a Non-Resident foreign taxable person Monthly
GSTR-6 Return for an Input Service Distributor Monthly
GSTR-7 Return for authorities deducting tax at source. Monthly
GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected Monthly
GSTR-9 Annual Return for a Normal Taxpayer Annually
GSTR-9A Annual Return a taxpayer registered under the composition levy anytime during the year Annually
GSTR-10 Final Return Once, when GST Registration is cancelled or surrendered
GSTR-11 Details of inward supplies to be furnished by a person having UIN and claiming a refund Monthly

D. MSME Registration-

Manufacturing and services industry can take registration. Trading industries cannot register with MSME-

    Revised MSME Classification
Criteria Micro Small Medium*
Investment

&

Annual Turnover

< Rs.1 crore

&

< Rs.5 crore

< Rs.10 crore

&

< Rs.50 crore

< Rs.50 crore

&

< Rs.250 crore

The registration is done on https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

1. The documents required for the registration is Personal Aadhar number, Industry name, Address, bank account details, purchase sale bill, MOA/AOA, Bills of Machinery Purchased

2. There is no registration fees required for this process.

Benefits of MSME Registration

1. Easy and Cheaper Bank Loan

2. Tax rebates

3. MAT Credit to be carried forward for up to 15 years instead of 10 years

4. Many government tenders are only open to the MSME Industries.

5. Lower Patent and Trademark Cost

6. Higher preference for government license and certification.

7. Concession in electricity bills

8. Get credit guarantee schemes from the Government

9. Special consideration on International Trade fairs

10. Penalty for delay in receiving Vendor payments

E. Startup India Scheme

Started in 2016 for the promotion of Startups

https://startupindia.gov.in/registration.php.

Eligibility

1. Date of Incorporation should not exceed 10 years

2. Incorporated as Pvt. Ltd Co. Partnership Firm, LLP

3. Turnover not exceeding Rs.100 crore for any of the financial years since its Incorporation

4. Original Entity- The Co. should not have been formed by splitting up or reconstructing an existing business

5. Innovative & Scalable Business

6. It must have a recommendation letter by an incubator.

7. Approved by DIPP

Benefits

1. Easier Compliance, Legal support

2. Funding and Incentives

3. Incubation & Industry-Academia Partnerships

4. Self-certification for 6 Labour Laws and 3 Environmental Laws

5. Exempted from paying income tax for 3 consecutive financial years out of their first ten years since incorporation

6. Investments into eligible startups by listed companies with a net worth of more than INR 100 Crore or turnover more than INR 250 Crore shall be exempt under Section 56(2) VIIB of Income Tax Act

7. Easy winding Up

8. Easier and faster patent application

Author Bio

Qualification: CA in Practice
Company: Ajay A Goel & Co.
Location: Gurgaon, Haryana, IN
Member Since: 01 May 2020 | Total Posts: 3
Chartered Accountant with 12 years of experience in diverse functions (Accounting, Taxation and Audits),having worked in collaboration with teams from the Big4’sand various teams within the organisation (Controllership, FP&A, Operations). View Full Profile

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