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How to Avoid VAT Penalties?

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Income Tax Return Filing Last Date | 3 Penalties If Due date Missed?

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I am CA Manish Gupta, and my mission is to helping set up businesses hassle-free.

In this channel, I will try to cover the topics like setting up business in India, international Taxation & advisory, and other valuable content.

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In this Channel, you will get to know about

what are those 3 Penalties that you have to bear If you miss the Due Date of Filing Income Tax Return, Myth on the Formation of a Company, Company Formation, the simple tips & tricks on Setup your Business Hassle-Free in India, how to register a company in India, how to register your business in India, how to register a startup,  how to register a business, India, startup, entrepreneurship, startup India, how to start a business, how to start a startup, things to keep in mind when starting a business, register a business, register a company in India, partnership firm, limited liability partnership, a proprietorship firm, private limited company, startup 101, startup basics, business taxation, gst services, how to save tax, tax saving tips, tax saving, save tax, income tax, tax planning, how to save tax in India, legal ways to save tax, Small Business Explained, Legally in India, tax, save, tax India, business tax, tax business, tax deductions for small business, incorporation of company, formation of a company in company law, procedure of incorporation of a company, incorporation or registration of a company, formation of company under companies act 2013,incorporation of a company in company law, setting up business in india by foreign companies, laws for foreign companies in India, starting a business in india for foreigners, 

Foreign Company Registration

 Foreign company means a company or a body corporate incorporated outside India which—

-is having a place of business in India whether by itself or through an agent, physically or through electronic mode; and

- is conducting any business activity in India in any other manner.

After establishing a place of business in India, for the purpose of its registration, a foreign company is required to file form (FC-1) with the registrar (within 30 days) and deliver to registrar certain documents-

a) its charter documents (in English);

b) address of the registered/principal office of the company;

c) a list of all the directors and secretaries;

d) the name(s) and address(es) of the person(s) resident in India and authorised to receive all notices or other documents on behalf of the company;

e) address of the place of business in India;

f) details of opening and closing of a place of business in India on an earlier occasion(s);

g) declaration that no director of the company or the authorised representative in India has ever been or is convicted or debarred from forming the companies and management in India or abroad; and

h) any other details

On successful filing of this form, a Foreign Company Registration Number will be generated, and a certificate of registration will be given to the company.

If any alteration is being made in the documents mentioned above, company must intimate about the changes to Registrar within 30 days of such changes being made. This intimation is to be made by filing Form FC-2.

Financial statements of Indian business carried on by a foreign company shall be prepared in accordance with Schedule III, and other documents shall be attached as prescribed under the rules applicable and delivered within six months from the end of the financial year. The registrar may extend this period of six months for a period not exceeding three months. These statements are filed in Form FC-3.

The company's accounts relating to Indian business shall be audited by practising chartered accountant or a firm/LLP of practising chartered accountants.

Along with the financial statements, the company is also required to provide details about all its places where it is conducting business in India as on the date of the balance sheet in Form FC-3

The annual return shall be filed within sixty days from last day of financial year to registrar in Form FC-4.

Recent Changes in MCA portal V2 with New Web- Based V3 Portal for LLPs

 The Ministry of corporate affairs (MCA) is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, the LLP Act, 2008 & other allied laws, rules & regulations formulated there under, primarily for regulating the functioning of the corporate sector under law.

For the smooth functioning and administration, MCA comes up with relevant changes and developments from time to time. So far, many changes have been taken place in MCA portal for the functioning of various registrations and filings. The MCA was providing facility of setting up business in India, private limited company registration, one person company registration, along with certain procedures to register a new company in India through V2 version of MCA. However, various amendments were made by the Ministry from time to time to bring out important changes in the company formation procedure in India. Recently, the Ministry has introduced new portal for LLP registration in India and come up with the new facilities of web-based services of LLP. In our recent article, we are going to discuss about the recent changes in the version 2 of the MCA Portal and the functioning of new web-based portal. It is advisable to consult a professional if any person has doubts regarding how to set up business in India.

 

Earlier, Version 2 of the MCA portal was used to file various forms relating to company formation in India and LLPs. However, LLP Services discontinued on the V2 Portal and relocated to the V3 Portal. Only the LLP e-filing services are upgraded and migrated to the MCA V3 portal, and all the other forms/ services relating to pvt ltd company registration, other company filings and miscellaneous services will continue to exist/be filed at the MCA V2 portal.

 

The MCA has launched a new way of e-filing for LLP on the MCA21 Portal for setting up LLP in India. All LLP filings from now on will be web-based.

 

Key features:

 

1. Simplified & Secure Login & Registrations
2.  Form Enhancements
3.  LLP forms
4.  New Payment Platforms
5. Interactive Dashboards
6. Revamped Back Office Portal for Officers.

The V3 Portal enables the following for LLPs:

 

1. Login & user Registration;
2. DSC Association; and
3. LLP Form Filing.

To access both the versions of the V2 and V3 on the MCA Portal, one has to login or sign in/up in the MCA portal via www.mca.gov.in, where the user will be provided the access to LLP (V3) and Companies/ other filings (V2) separately. Both V2 and V3 are now working flawlessly.

 

Main Difference between V2 & V3:

 

The V3 version is the updated version of the V2 Portal. In the V2 Portal, the forms relating to company formation procedure and other filings are required to be filled and then uploaded in the Portal after affixing the DSC, while in V3, the forms are to be filled online. This updated version of V3 enables the users' convenience, including the ability to save a half-filled form and file it later.

 

Further, there is a personalized "My Application" feature in the V3 Portal, which allows the User not only to view all the forms filed by them till date but also the status of the forms such as pending for Resubmission, DSC upload, Pay fees, under Processing, etc., as against the V2 Portal where My Workspace is being provided, which consist of a list of notices and circulars from MCA issued from time to time.

 

In addition to this, the login is through the email id in the V3 version; On the other hand, in V2, it was possible with the user id. OTP will be provided to the mobile and email address of the User to ensure authenticity as soon as a business user logs in to the MCA system.

 

Lastly, there is no difference in Associating DSC between V2 and V3.

 

Login & LLP Forms Filling Process on V3 MCA Portal

 

The process to log in to LLP on MCA V3 Portal and fill LLP web forms has been discussed in detail below:

 

Method to Login

 

• The User will first proceed to the "Sign in/Sign Up" link on the top right corner of the MCA portal. On clicking the login icon on the left-hand side of the MCA Portal, two separate icons will be shown, one for LLP Login and the other for company login. As soon as you log in on the LLP login, you will be directed toward the LLP page. Here, users can use their existing login credentials.

• The User must choose the LLP login option rather than the company login.

• After successful login, users would be able to fill out LLP incorporation forms by utilizing the various options. 

Method to Fill the LLP Forms 

• At the top right corner of the MCA portal, through the existing login id of MCA, the User will proceed "Sign in/Sign Up" link. There is no need to make a new login for the LLP portal. A user can use their existing login ids.

• After this, Sign in to the Portal through the existing login id of MCA.

• The User is required to use the "profile update" option after login into the Portal successfully so that other forms of Limited Liability Partnership like LLP form-3 for registration of LLP agreement, Form 4 for Change in LLP partners/designated partners will display in their login.

• The option of "profile update" will be shown in the top right corner.

• The User must update his profile as a "business user" and fill the necessary details to complete the profile.

• After successfully updating the profile, the User will again login into the Portal, and the User will obtain the OTP on the enrolled phone no and mail id. 

• After submitting the OTP, the User will see all the web forms available in their login and ready to fill the forms.

Note: The session will get expire after 5 min of inactivity. The User will be reported after 4 min of inactivity before you are logged off.

 

User Registration & Login-Highlights

 

1: Simplified Username & Registration Process

• PAN Number Validation
• Register using Email id or CIN/LLPIN/FCRN as username

2: Streamlined Authorization/ Suspension Process

• Right to authorize Manager/Secretary/Officer in default/Authorized Representative to access   
•  FO service (on behalf of the company/LLP)

 

 3: Refined User types, Roles and Groups

•  Service Accessibility control base User role and groups

 4: Email ID & Mobile OTP Validation

• One-time OTP validation during registration

 5: Easy User ID and password recovery

•  Two-step easy user ID & Password recovery through PAN & Hint question Validation

6: Additional Security Checks

• OTP validation in case of login from a different device

• Session expiry after 5 minutes of inactivity

•  Latency period check

 FAQs

 

1: How much time the registration process takes?

 

The User can immediately start filing LLP related forms once they have registered as a new user in V3. However, it would take 4 – 5 hours for the user registration to be effected for V2 filings for Companies to be able to begin filing Company forms. Users will receive two different passwords, one each for LLP filing and Company filing upon completion of registration.

 

2: Can an LLP carry on multiple business activities? 

 

Yes, LLP, registered in India, can carry more than one business, provided the activities must be in the same field itself or related. Unrelated Activities which are not related, such as Interior Designing and Legal consultancy, cannot be carried out under the same LLP. The business activities must be approved by RoC and are mentioned in the agreement.

 

3: If a person has filed webform 3 and webform 4 for the cessation of partners from the LLP and the webform are pending for approval. Can another webform 3 and webform 4 be filed for the appointment of other partners in the LLP? 

 

 In this case, the filing shall not be allowed if there is any web form 3 and any web form 4 for cessation of a designated partner or partner pending for payment of the fee or any web form 3/4 is under Processing in respect of the LLP.

 

4: What are the major differences between the Business User and the Registered User?

 

Registered users comprise any individuals. Such users can perform the following two functions in the LLP module – 

• RUN Form

• Fillip form. 

A business user can access and file all the forms. The most suitable category may be selected:

• Company/LLP 

• Director/Designated Partner

• Manager/Secretary/Authorized Representative

• Officer in Default

• Professional

However, the "Professional User" in V3 was earlier termed as "Practicing Professional" in the V2 Portal.

 

Overall, there is no change in the naming or position of a Business user between V2 and V3.

 

6: Can a Registered User upgrade to a Business User?

 

Yes, a Registered User can upgrade itself to a Business User; one must not create new login credentials as a Business user. To upgrade the account, the following needs to be done. 

 

Registered users can also upgrade in V2 to Business User in V3 by following steps:

 

a. First, Sign in to the Portal.

b. Next, in the Right-Hand Corner, "Hello – Your Name" will Display.

c. Click on the above icon

d. Select the Profile Update Page

e. Next, click on Add Role

f. Select Business User Role and then select the appropriate options

 

7. If I am an existing user, do I need to re-register again?

 

You need not register once again if you are an existing user in V2. The system will identify the mail id given by the User as a duplicate id and does not permit a registration. The User will be permitted to create as a new user only with a new mail id. If the User is already registered in V3, then it is not needed to get new registration in V2.

 

8. Can a person has the same user id both as a CA in Professional Role as well as a Director role?

 

No. the User cannot have multiple roles under the same user id. However, a user can upgrade the part. For instance, if one is a Professional (existing), the User can upgrade to the following roles:

 

a. Director/Designated Partner

b. Manager/Secretary/Authorized Representative

 

Source:https://www.manishanilgupta.com/blog-details/recent-changes-in-mca-portal-v2-with-new-web-based-v3-portal-for-llps

 

Understanding Form 10BD – A New Step Towards Bringing in More Transparency in Donation Reporting System

It is a very common thing for charitable institutions such as schools, colleges, universities and research institutions to receive donations. However, sometimes such claims for donations can be either false or fraudulent. Many such fraudulent claims have tried to take advantage of Section 80G of the Income Tax Act, 1961, which allows the donors a deduction for the amount donated by them to the recognized charitable institutions. Besides, earlier, the procedure for reporting donations was manual, thus providing room for some discrepancies. 

To tackle all such issues and bring more transparency in reporting donations, the Income Tax Department of the Government of India has notified vide notification no. 19/2021-Income Tax, that all the persons receiving donations will have to declare the details of the donations received during the financial year in Form 10BD. Contrary to the earlier manual mode of reporting donations, the new rules make it mandatory for the donations to be reported online. Besides, it is to be noted that a certificate shall have to be issued to all such donors via Form 10BE by the recipients of such donations. 

This article tries to provide every important detail about Form 10BD application and questions related to it, such as ‘How to file Form 10BD online?’, ‘Does a person need consultants for filing Form 10BD?’ etc. Now let’s look into the details of Form 10BD.

Who will have to file Form 10BD?

Rule 18AB of the Income Tax Act, 1961 is applicable to all such entities (charitable institutions) which have approval u/s 80G and u/s 35(1) of the Act. For these institutions, Form 10BD filing has been made mandatory. It requires them to file a statement of donations (through Form 10BD) beginning from the financial year 2021-2022. All the research institutions, colleges, universities or other institutions which come under clause (i) to section 35 (1A) of the Income Tax Act will also be required to furnish the details of donations in Form 10BD. Apart from this, as mentioned in the beginning, the reporting entities will have to provide a Certificate of Donation to all such donors through Form 10BE.

What is the due date for filing Form 10BD? 

According to the new rules, Form 10BD needs to be filed every year starting from the financial year 2021-2022. It has to be filed annually. Rule 18AB (9) says that Form 10BD needs to be filed on or before 31st May, which immediately follows the end of the financial year in which the donations were received. For instance, if donations were received in the financial year 2021-2022, then Form 10BD needs to be filed on or before 31st May 2022.

What is the procedure for filing Form 10BD?

Form 10BD has to be filed electronically/digitally through the website (e-portal) of the Income Tax Department. The form needs to have the digital signature of the person authorized to sign the ITR of the reporting entity. 

What details are needed for Form 10BD?

The following details are required for filing the form:

* Details of the Reporting person receiving the donations

     * PAN

     *  Reporting Period (Financial Year)

* Details of the Donor –

* The Unique Identification number; it can be either PAN or Aadhar number.

     * In case neither of the above are available, fill in one of the following – Passport Number/ Tax Payer Identification Number (in case of a foreign resident)/ Voter ID No./ Ration Card Number/ Driving License Number.

     * Section Code:

* Section 35(1)(iia)

* Section 35(1)(ii)

* Section 35(1)(iii)

 * Name and Address of the Donor

* Donation Type:

     * Corpus

     * Specific Grants

     * Others

* Mode of Receipt 

     * Cash

     * Kind

     * Electronic Modes, which includes draft and payee cheque

     * Others

* Amount of Donation

Certificate of Donation

After filing Form 10BD, the reporting party needs to provide the donors with a Certificate of Donation through 10BE so that the donors can claim deductions u/s 80G or section 35 of the Income Tax Act. Form 10BE can be downloaded after Form 10BD has been successfully filed. 

What if the reporting entity delays or fails to file Form 10BD? 

OR

What is the late fee in the case of Form 10BD?

If the reporting person fails to file Form 10BD within the stipulated time (that is, in case of a delay), due to any reason whatsoever, then such a person shall be liable to pay a penalty of Rs. 200/- per day of non-filing as per the new section 234G of the Income Tax Act, 1961. Apart from this, if the reporting entity fails to furnish the statement of donations through Form 10BD, then according to section 271K, such a person shall attract a penalty of not less than Rs 10,000, which may even extend up to Rs 1,00,000.

Is it possible to revise Form 10BD?

Yes, in case any unintentional errors were made in the form, it is possible for the reporting person to rectify those errors in Form 10BD through a correction form.

Do you need consultants for filing Form 10BD?

Although Form 10BD can be easily filed online, however, if you are facing any difficulty or doubts, it is best to contact an experienced and reputed tax consultant.

Other Details:

1: Reporting Multiple Donations from the same donor – All the donations from every single donor have to be aggregated, and only a consolidated amount of such donations is required to be reported. However, aggregating such donations is subject to the condition that the ‘Donation Type’ and ‘Mode of Receipt” for all such donations remain the same.

2: Anonymous Donations – Anonymous donations indicate that the person receiving donations has no record of the identity of the person making such donations. Such donations cannot be reported. Nevertheless, a limit of Rs. 1,00,000 or 5% of total donations received, which is higher, has to be acknowledged while making the reconciliation statement for any difference in the ITR/audit reports and the amount of reported donations.

Conclusion:

Form 10BD has made the role of the donation receiving entities more crucial in bringing out the transparency about the donations. As per the new rules, it is not only enough to declare the details of donations in Form 10BD, but it is equally imperative to furnish a Certificate of Donation to the donors via Form 10BE. These rules are also going to be a turning point in bringing more transparency to the reporting system of donations because now all the details of the donations will be easily available in Form 26AS and AIS.

 

Source:https://www.manishanilgupta.com/blog-details/understanding-form-10bd-a-new-step-towards-bringing-in-more-transparency-in-donation-reporting-system