June 11, 2024


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Chief Minister’s Startup Scheme (CMSS)

The Chief Minister’s Startup Scheme (CMSS), launched on 15th August 2017, is approved by the Government of Sikkim to inspire the local unemployed youth such as school dropouts to develop new entrepreneurial ventures and self-employment opportunities in rural and urban areas of the State. It intends to establish Startups, both in manufacturing and service sectors that include agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. The scheme provides financial contribution assistance component of 25% of the project cost for financially viable/ bankable projects for the ventures that entail a total investment up to Rs. 20 lakhs.The educated youth from job seekers to job creators and in order to give support to the ‘Startup’ and ‘innovative projects’ in the state and to provide skills to the youth and potential investors to develop entrepreneurship “Chief Minister’s Startup/Innovation Projects/New Industries Scheme” has been formulated. The scheme envisages various incentives for startups so as to enable the entrepreneur’s success in their ventures. The scheme also makes provision for the creation of incubation Centers in the host institutions in the State in order to build capacities, develop networking, establish the necessary infrastructure, and generate awareness. The basic objective of this scheme is the creation of self-employment and employment generation, the upgrading of the skills of entrepreneurs and providing them support to set up their units under professional guidance, promotion of innovation in focus areas, setting up of incubation centers, creating working space for startups and innovative projects, providing incentives, etc. This Scheme also aims at helping and hand-holding entrepreneurs to select viable projects in the potential areas in manufacturing and service sectors and train them to set up startups and subsequently manage and run their enterprises professionally. Permitted Activites All activities/ ventures that do not belong to the negative list of the scheme guidelines can be taken into consideration under CMSS. For some service sector activities, the applicant has to possess a valid commercial driving license. In order to open a manihari/ grocery shop, the applicant has to possess a valid trade license from a competent authority. For establishing a new boutique shop/ beauty parlour, the candidate has to possess at least three months certificate course from a professional institute/ body. Those activities related to the land purchase, construction of a building, excluding the purpose of development or up gradation of Tourism Department registered/ approved Homestays, is neither admissible nor considered under the project cost. The following activities will not be allowed under CMSS for setting up micro-enterprises/ projects/ units. Any industry/ business associated with production/ manufacturing or sale of items such as Beedi/ Cigar/ Pan/ Cigarette/ Gutka etc. producing/ preparation tobacco as raw materials. Manufacturing of Polythene carry bags that isIdentification less than 20 microns thickness, and manufacture of carrying bags or containers made to recycle plastic for storing, carrying, dispensing or packaging of foodstuff and another item that causes environmental problems and that is banned from the State. Aims and Objectives Self-employment/ employment generation and income generation. To promote new ideas/ products and processes suitable for commercialization through startups. Set up Incubators/Incubation Centers in the state. Handhold new enterprises and entrepreneurs. Help entrepreneurs gain knowledge, expertise and avail assistance as provided under various schemes being implemented by State/Central Govt./Other institutions. Facilitate and promote innovation Facilitate startups and Innovation Projects To facilitate creation of incubation space Facilitate adequate investment to startups Facilitate venture capital funding Promote Human Capital To promote Industrial development in the State. To boost entrepreneurial spirit amongst the local unemployed youth and school dropouts of the State and influence them to set up any commercially viable/ bankable Startup ventures in any sector that includes agriculture/ horticulture/ food processing/ animal husbandry/ handloom and handicrafts etc. in the State abiding by the Government policies. To instil self-confidence amongst the local youth by providing an enabling environment and initial financial handholding for their future socio-economic growth by becoming promoters of their ventures. To make the owner of their startup venture instead of becoming an employee of someone else. To provide a platform to transform any innovative idea into a commercially viable business venture for economic upliftment. To generate equitable entrepreneurial opportunities in rural and urban areas of the State by setting up a new self-employment ventures/ projects by providing one-time non-refundable financial assistance in the form of promoter’s financial contribution component of 25% as margin money/ promoter’s financial contribution in PSU bank/ PSU financial institution that are approved project for funding under the schemes or any other credit linked central subsidy scheme. Project Cost Specifications The project cost includes Capital Expenditure and three months working capital requirement for the venture. The cost of land should not be included in the Project cost. Cost of the ready built and long lease or rental work shed/ shop can be included in the project cost subject to restricting such cost of the ready built or long lease or rental workshop/ work shed to be addedmicroenterprises in the project cost that is calculated for a maximum period of three years. CMSS is available to all new financial viable ventures, microenterprises, that includes village industries projects except the activities that are indicated in the negative list. Existing old/ units are not eligible except for homestays registered/ approved under the State Department of Tourism. Eligibility Conditions The applicant has to be bonafide local youth who has to possess Certificate of Identification (COI) of the applicant or his/ her father possessing Sikkim Subject Certificate/ Certificate of Identification. The applicant has to be unemployed and has to possess the educational qualification of class V from any recognised school. Only one member of the family is eligible to avail the benefits of the scheme. The applicant has to be between 15-40 years of age on the date of application. Local unemployed youth from BPL families/ rural area residents are given preference in the scheme. Required Documents Two passport size photographs. Attested copy of Sikkim Subject Certificate/ Certificate of Identification. Attested copy of mark sheet and certificate that is issued by Board/ University.

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eNAM

The National Agriculture Market (e-NAM) is a pan-India electronic trading system that connects current Agricultural Produce Market Committee (APMC) mandis to form a unified national market for agricultural commodities. e-NAM was launched on April 14, 2016. It is entirely supported by the Central Government and is managed by the Small Farmers Agribusiness Consortium (SFAC), which is overseen by the Ministry of Agriculture and Farmers’ Welfare.  Recent Developments related to e-NAM The platform now facilitates trade of raw agricultural residue like stubble. This aims to promote sustainable waste management. Efforts are ongoing to encourage more interstate trade through eNAM. For example, Tamil Nadu recently amended its APMC Act. It allows traders with unified licenses from other eNAM states to take part in their mandis. Uttar Pradesh exempted market fees for potato and vegetable trade through eNAM. This encourages wider participation. What is National Agriculture Market (eNAM)? The National Agriculture Market (eNAM) is a pan-India electronic trading system that integrates current APMC mandis to build a unified national agricultural market. Small Farmers Agribusiness Consortium (SFAC) is the primary agency for eNAM implementation under the Ministry of Agriculture and Farmers’ Welfare of the Government of India. Objectives of eNAM To ease pan-India commerce in agricultural commodities, markets would be integrated initially at the state level and then throughout the country via a shared online market platform. To streamline marketing and transaction procedures and make them uniform across all marketplaces in order to increase market efficiency. To promote better marketing opportunities for farmers/sellers by providing online access to more buyers/markets, eliminating information asymmetry between farmer and trader, and better and real-time price discovery based on actual demand and supply of agri-commodities. To build quality assurance assaying methods in order to promote informed bidding by buyers. To encourage people to have access to high-quality products at reasonable prices. Components of eNAM States/UTs select APMCs/RMCs based on mandatory reforms in their Acts and approval of Detailed Project Reports (DPR) by the Project Appraisal Committee (PAC). The e-NAM software is provided to States/UTs at no cost. Financial assistance, up to Rs. 30.00 lakhs per market, is given for hardware, internet connections, assaying equipment, and related infrastructure to prepare markets for e-NAM integration. The remaining funds are covered by the State/UT. Technical assistance is provided by the Small Farmers Agribusiness Consortium (SFAC) through Strategic Partner (SP) NFCL, including Mandi Analysts at APMCs/RMCs for one year. Private markets can gain e-NAM access if recommended by the competent authority of the State/UT, provided they bear the costs for Mandi Analysts, hardware, assaying facilities, and support services. Capacity building includes staff orientation and farmer awareness through various channels, with support from the strategic partner Pre-requisites for e-NAM A state must meet three key conditions before proposing Mandis for e-NAM: The state APMC Act must include an explicit provision for e-auction/electronic trading as a price discovery method. To be valid throughout the state/UT, there must be a single trading licence. A single point of market charge is levied across the state/territories. Features of eNAM A National e-market platform for transparent sale transactions and price discovery in regulated markets, Kisan mandis, warehouses, and private markets. Willing States to accordingly enact provisions for e-trading in their APMC Act. Liberal Licensing of traders/buyers and commission agents by State authorities without any pre-condition of physical presence or possession of shop/premises in the market yard. One license for a trader is valid across all markets in the State. Harmonization of quality standards of agricultural produce and provisions of assaying (quality testing) infrastructure in every market to enable informed bidding by buyers. Restriction of Agriculture Produces Marketing Committee’s (APMC) jurisdiction to within the APMC market yard/sub yard instead of a geographical area (the market area) at present. Single point levy of market fees, i.e., on the first wholesale purchase from the farmer. Benefits of the eNAM Scheme Benefits to Farmers E-NAM provides enhanced and expanded possibilities for selling products, resulting in fair market competition. It gives farmers access to the national market, with prices determined by the quality of their goods. Farmers benefit from better returns. Benefits to Mandis Bookkeeping and reporting system costs have been reduced because they are now created automatically. Improved oversight and regulation of dealers and commission agents. A totally transparent approach that removes the possibility of intentional or inadvertent tendering/auctioning process manipulation. Manpower requirements are decreased because the tendering/auctioning process is conducted through e-NAM. It is useful for forecasting arrivals and pricing. The operations of each APMC are available on the government website. Benefits to other parties Secondary trade buyers, processors, and exporters might use E-MAM to get access to bigger national marketplaces. Bulk purchasers, processors, exporters, and others can trade directly at the local mandi level, lowering their intermediation costs. Buyers’ transaction expenses are also decreased. Consumers benefit from the higher-quality products at more affordable pricing. Achievements of e-NAM The e-NAM platform has seen registration from more than 1.75 crore farmers and 2.43 lakh traders as of March 31, 2023. Additionally, 2,575 Farmer Producer Organizations (FPOs) have become part of the e-NAM platform. Notably, trading activities worth ₹2.50 lakh crore have been conducted on the e-NAM platform. As of March 16, 2023, the e-NAM platform has successfully integrated 1,361 mandis from 23 States and 4 Union Territories. The Electronic National Agriculture Market (e-NAM) initiative of the Ministry of Agriculture was awarded the Platinum Award (1st place) in the Digital Empowerment of Citizens category at the Digital India Award 2022. Challenges faced by e-NAM Governments are having trouble convincing all stakeholders, such as farmers and traders, to shift to an online platform. There is little indication that farmers have benefited from this new arrangement in terms of lower fees to dealers or higher profits on their crops. The lack of energy, computers, and internet access, as well as a lack of workers and sorting and quality testing facilities, continue to be major challenges for this initiative. State agricultural ministries have struggled to persuade all players, including farmers, merchants, and commission brokers, to migrate to

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Kerala Property Registration

Kerala is one of the first states in India to digitise various property-related services, to make the process transparent. Kerala’s registration department offers many property-related services online, including searching for encumbrance certificate, verification of e-stamp paper, land records repository, valuation certificate, ownership certificate, possession certificate and document registration. To make accessibility easier, the Kerala government has created a one-stop portal: keralaregistration.gov.in, Kerala’s E-Rekha website features for online property related services E-Rekha website is the newest introduction by the Kerala Government to maintain state land records online in a digital manner for online property related services. The portal is maintained by the Kerala government, and all details related to land and even old land survey data is maintained properly. Here are some of the salient features of the portal. The digitalisation of all property records is maintained and displayed sequentially and chronologically. The old land survey records and all other lands records in the state are physically kept at the Thiruvananthapuram central office. The records are centrally digitalised and accessible to the revenue department officials and the public. Objectives of e-Rekha website for online property related services The e-Rekha portal has been launched for Kerela online property related services. The main objectives of building the e-Rekha website and digitalisation of old land survey records are as under: Allow landowners in the state to access survey details and records for online property related services. Verify the ownership details and land records digitally from any place at any time. Keeping digital land and property records safely. Protecting the interests of landowners and stakeholders. Bringing transparency in property transactions by making survey records and property ownership details available online. Section 17 Indian Registration Act Section 17 of the Indian Registration Act, 1908 says that all transactions that involve a sale of immovable property, the gift of immovable property and lease for a period exceeding 12 months of immovable property for a value Rs. 100 and above should be registered. Registration of an immovable property provides the following benefits: By registering property, the document of the transfer becomes a permanent public record Any person can inspect a public record, and a certified copy of the document can be obtained Registering a property is conveying information to the public that the owner has transferred the immovable property to the buyer Documents Required for Property Registration in Kerala Proof of ownership Certified copy of original old sale deed, assessment of MC or mutation Identify proof (Ration Card, Voter ID, Driving License, Aadhaar Card or PAN Card) NOC ID proof of two witness Map plan and description of immovable property Digital photograph of property (Building or Plot) Online Property registration Step 1: Visit the home page of the Registration Department of Kerala. Step 2: For online property registration in Kerala, The applicant has to login into the web portal. User Registration Step 3: Click on “Online Application” link. Step 4: Select Online Document Details Entry user Registration from the menu. Step 5: The page will redirect to the next page. The applicant needs to enter all the details. Step 6: After successful registration, the message “Success” will be displayed on the screen. Login to the Portal Step 7: Now, the applicant can log in into the portal by using the username and password. Step 8: On login, the applicant will get the page for navigation. Apply for property registration Steps for applying for document registration are given below: Selection of time slot (Token) Presentation, documents and Claimant details Application submission Search for Available Token Step 9: The applicant needs to search available token, it includes searching and selecting a convenient time slot for presenting the document in Sub Registrar office. Step 10: After filling mandatory fields, click on View Token. The list will give time slots from the day before and after the selected date. Step 11: Choose one available slot and click on it. Make Transaction Step 12: Now, the Transaction type selection window will appear. Step 13: In this window, choose the appropriate transaction type carefully. It can’t be modifying in later stages. Click on Submit button. Enter Presentation Details Step 14: Enter details regarding presenter and documents. Step 15: After successful submission of presentation details, the data entered can be continued by entering the previous document details, or the applicant can continue the entry at any time as the token will be listed out in My Token window. Step 16: Click on the View button and edit the presentation details. Step 17: Click on the Next button in the presenter detail. Enter details of previous document details. Provide Claimant Details Step 18: Provide claimant details (buyer’s details) here. The applicant can edit the claimant details by click on the edit button. Fill Executants Details Step 19: Enter Executants details (seller’s details). Edit the details if needed. Step 20: Power of Attorney details can be entered by clicking Power of Attorney. Property Details Section Step 21: The applicant has to enter the details of the property. If the property is having well or building, then tick yes on corresponding fields. Step 22: The applicant can edit the property details using the edit button. Enter Building Details Step 23: This section will be displayed if the applicant has entered yes in the field of Building in Property while providing property details. Claimant-Property Link Step 24: The claimant property link is applicable when several owners are more than one. In this section, the applicant needs to provide which property is attached to which owner. Note: Documents regarding claimant property need to be submitted in Sub Registrar at the time of presentation. Witness Details Step 25: Provide details two individuals who will be the witness at the time of registration of the document. Stamp Paper Details Step 26: Enter the stamp paper details. Step 27: The applicant can use an extra note to store extra details regarding the document. Submit Application to Sub Registrar Office Step 28: The applicant can choose another slot if the selected one is not convenient by clicking ‘View Token’. Then click on Accept and Submit to SR for apply. Step 29: Now, the summary of the entered details will be shown. Go through the

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What is Patent: Meaning, Search, and Registration Procedure

Patent Registration grants intellectual property rights to the inventor of a new product, technology, or process. These rights give the inventor an exclusive opportunity to sell, manufacture, and import the invented product for 20 years from the application date if it gets approved. Let’s understand how you can get registration of a patent and what are the crucial steps involved in the procedure for obtaining a patent that you need to take. Patent Registration process or procedure for obtaining patent begins with the crucial step of patent search where you analyse the novelty aspect of your invention. Only if your invention is novel, innovative, and state-of-the-art, you can proceed with the patent filing procedure for obtaining patent further. The Patent Act 1970 gives you the flexibility of filing a provisional patent application if your invention is in the development stage and replacing it with the complete application as soon as the product is developed or within 1 year from the filing date. What is Patent Registration? Patent Registration is a legal process of securing exclusive rights over a newly invented product. These include the rights to manufacture, sell, and import the product for the next 20 years since the patent application filing date. It helps an inventor capitalize on his intellectual property and reward his innovative ideas, research, and development efforts appropriately. Wondering about its legal framework? Patent Registration is governed under the Indian Patent Act of 1970 and administered by the office of the Controller General of Patents. Patent Registration Criteria Novelty: New & Innovative; Publicly Disclosed for the first time. Inventive Step: Far from public knowledge; state-of-the-art technical advancements Industrial Applicability: A practical utility and capability of being manufactured in an industrial setup. Not Prohibited under Sections 3 & 4 of the Patent Act: Must be legally eligible to be patented. Types of Patent Application Ordinary Patent Application: For patent protection within India. PCT National Phase Patent Application: Allows the applicant to enter the PCT process and get patent protection internationally. PCT International Patent Application: Final stage of PCT process, international application for patent registration. Convention Patent Application: Used to claim priority based on an earlier application filed in a convention country. Divisional Patent Application: Used to divide an existing patent application into multiple separate applications to secure multiple inventions. Patent of Addition Application: Used to apply for an improvement or modification of an already existing and patented invention. Eligibility for Registration Process of Patent in India Inventors can secure patents only if they are completely novel. This means that a similar or identical invention has never been introduced in the public domain before. Simply put, the new invention should be absolutely state-of-the-art. The novelty criteria need to be met before the patent application is actually filed. Also, the invention should have an innovative function or feature that’s not obviously known to the public. Besides novelty, another important requirement is Industrial Application. The invented product must have a practical utility and be capable of being manufactured in the industry. This directly excludes any new object that’s solely made for aesthetic purposes. Even if these criteria are met, an invented product cannot be patented if it is prohibited under Sections 3 and 4 of the Patents Act. List of Documents Submitted During Procedure for filing Patent Application Application Form (Form-1): Application for Patent Registration Provisional/Complete Specification: Detailed description of the product, its features, and functional aspects. Abstract of the Invention: Brief description of the invention Power of Attorney: Authorisation to the person or entity filing the application Statement and Undertaking (Form 3): Declaration regarding accuracy of information and the inventor’s rights Priority Document (if applicable): Evidence of priority claims Proof of Right to File: Required applicant is not the inventor Acknowledgment of Fee Payment: Proof that the Requisite Fees for Patent Registration is paid. Form 28: Required if the applicant claims a rebate in fees as a recognised MSME or startup How to Apply for Patent in India?: Patent Filing Process in India Select Patent Application After being confident that your product meets all the requirements for Patent Registration, you can begin the patent filing procedure in India. The first step is to decide which type of application you want to file to initiate a procedure for obtaining a patent. You have two options to choose from: Provisional Application, which provides 1 year of Patent Protection and lapses after that. Complete Application, which provides 20 years of full-term Patent Protection Step 1: Patent Search Once you’ve decided which application to file, you can move to the next stage of the patent filing procedure in India, which is, conducting the Patent Search. Patent Search is conducted to check whether there are any similar inventions already patented or available in the public domain. This is done to ensure that the product seeking patent registration is absolutely novel and undisclosed to the public. If the search results are clear, you can move to the next step. Step 2: Patent Application Filing The procedure for filing patent application involves filing Form-1 and submitting it with Patent Specification in Form-2. You may require additional documents at this stage, which we will discuss later. Remember, if you’ve filed the provisional application, it must be replaced with the complete application within a year. Step 3: Patent Specification Drafting The next step in the procedure for filing patent application is drafting a patent specification, a detailed document that contains information of the invented product. It is filed with the application to ensure full disclosure of information to the Registrar of patent. At Setindiabiz, our legal experts help you draft Patent specifications accurately and comprehensively.  Step 4: Patent Publication The following stage is the publication of application in the Patent Journal. It is done 18 months after the date of application and brings the invention into the public domain for the first time. Step 5: Requesting Patent Examination Within 48 months of applying, a patent examination is requested. An examiner is assigned to go through the details of the application and raise objections against any discrepancies found. If objections are raised, the applicant must reply

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SAC Codes

All goods and services transacted in India under GST are classified under the HSN code system or SAC Code system. Where services are classified under SAC Code and goods are classified under HSN Code. Services Accounting Code also called as SAC Code is a classification system for services developed by the Service Tax Department of India. Using GST SAC code, the GST rates for services are fixed in five slabs namely 0%, 5%, 12%, 18% and 28%. SAC Code finder How do I carry out a SAC Code Search? You will need a SAC Code finder to find the SAC code for the given service. But there are also other ways to decode SAC code for a given product such as by visiting Central Board or excise and customs department website and other third-party apps on play store and iOS platform. Why do I need a SAC Code finder? Indian Taxation System has categorized roughly over 120 services for levy of GST under 5 broad categories or tax-slabs. These are 0%, 5%, 12%, 18% and 28%. SAC Codes under GST SAC Group SAC Code SAC Service Description Section 5: Construction Services Heading No.9954 Construction services – GST Rate for Construction Services Group 99541   Construction services of buildings    995411 Construction services of a single dwelling or multi-dwelling or multi-storied residential buildings   995412 Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc   995413 Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings   995414 Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.   995415 Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar buildings   995416 Construction Services of other buildings n.e.c   995419 Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.       Group 99542   General construction services of civil engineering works   995421 General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels   995422 General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks   995423 General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works.   995424 General construction services of local water & sewage pipelines, electricity and communication cables & related works   995425 General construction services of mines and industrial plants   995426 General Construction services of Power Plants and its related infrastructure   995427 General construction services of outdoor sport and recreation facilities   995428 General construction services of other civil engineering work n.e.c.   995429 Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the constructions covered above.       Group 99543   Site preparation services   995431 Demolition services   995432 Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches.   995433 Excavating and earthmoving services   995434 Water well drilling services and septic system installation services   995435 Other site preparation services n.e.c   995439 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.       Group 99544   Assembly and erection of prefabricated constructions   995441 Installation, assembly and erection services of prefabricated buildings   995442 Installation, assembly and erection services of other prefabricated structures and constructions   995443 Installation services of all types of street furniture (e.g., bus shelters, benches, telephone booths, public toilets, etc.)   995444 Other assembly and erection services n.e.c.   995449 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.       Group 99545   Special trade construction services   995451 Pile driving and foundation services   995452 Building framing & Roof Framing services   995453 Roofing and waterproofing services   995454 Concrete services   995455 Structural steel erection services   995456 Masonry services   995457 Scaffolding services   995458 Other special trade construction services n.e.c.   995459 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.       Group 99546   Installation services   995461 Electrical installation services, including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services.   995462 Water plumbing and drain laying services   995463 Heating, ventilation and air conditioning equipment installation services   995464 Gas fitting installation services   995465 Insulation services   995466 Lift and escalator installation services   995468 Other installation services n.e.c.   995469 Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above.       Group 99547   Building completion and finishing services   995471 Glazing services   995472 Plastering services   995473 Painting services   995474 Floor and wall tiling services   995475 Other floor laying, wall covering and wallpapering services   995476 Joinery and carpentry services   995477 Fencing and railing services   995478 Other building completion and finishing services n.e.c.   995479 Services involving Repair, alterations, additions, replacements, maintenance of the completion/finishing works covered above.       Section 6: Distributive Trade Services; Accommodation, Food & Beverage Service; Transport Services; Gas & Electricity Distribution Services       Heading No. 9961   Services in wholesale trade Group 99611       996111 Services provided for a fee/commission or contract basis on wholesale trade       Heading No. 9962   Services in retail trade Group 99621       996211 Services provided for a fee/commission or contract basis on retail trade       Heading No. 9963   Accommodation, Food and beverage services Group 99631   Accommodation services   996311 Room or unit accommodation services provided by Hotels, INN, Guest House, Club etc   996312 Campsite services   996313 Recreational and vacation camp

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ITR FILING FOR LLP

A Limited Liability Partnership is a legal entity and a taxable person (assessee) for all income tax purposes. So, it is mandatory to file income tax return for LLP on or before the 31st of March every assessment year. Filing ITR is mandatory even if the LLP existed for a single day in the financial year for which it is being filed.To file Income Tax Return for LLP, you need to submit Form ITR-5 to the Income Tax Department through the Income Tax e-filing portal. LP or Limited Liability Partnership is a corporate entity formed under the Limited Liability Partnership Act, 2008. LLPs have a separate legal identity and are required to file MCA annual return (Form 8 and Form 11) and income tax return each year. What is the Process of Filing Income ITR of LLP? The process of filing ITR of LLP begins with the preparation of its account statements. These statements have to be prepared according to the provisions of the Income Tax Act, 1961. Upon preparing the statements, you can calculate the taxable income and proceed to its payment. Let us understand each of these steps one by one. Step 1: Prepare Statement of accounts for the LLP” The accounting of the LLP is the first step towards the preparation of the financial statements of the LLP. You should be careful and must comply with the provisions of the Income Tax Act, 1961. In particular, the following items require special attention while finalizing the accounts of the LLP. Preliminary Expenses TDS on payments of the LLP Consider the provisions of GST on LLP (if applicable) Partners remuneration (Special Treatment) Professional tax Payment of LLP (if applicable) Consider good practices of Tax Planning. Step 2: Income Tax Computation” The computation of taxable income is the most important step in filing an ITR for the LLP. The correctness of the financial statements is very important while doing Tax Computation for your LLP. The income tax laws treat certain expenses differently, and if the expenses do not qualify the law, these are disallowed as an expense and thus increases the taxable income. Step 3: Check for expense disallowance under Income Tax Act/Rules” Well, as said earlier the income tax department recognizes a particular payout as the expense of the LLP only if it follows the rules. Here is an example of common tax disallowances and the reasons relating to the ITR of LLP The preliminary expenses are allowed only up to 1% of capital employed in the LLP All payouts are disallowed as expenses if required TDS is not deducted. Penalty on delayed tax payments like TDS, GST, etc is not allowed Partners Salary is limited to 90% of the profit up to 3 Lakh or 60% after that. Please check the LLP Agreement for the provision of partner remuneration. Consult our specialist CA for further assistance. Step 4: Payment of Income Tax of the LLP” The self-assessment Income Tax for the LLP can be paid online by visiting the Income Tax Portal. On the tax payment portal select Challan Number – 280 and follow the on-screen instruction. The Income Tax can be paid by way of internet banking of almost all the banks. The income tax for the LLP can also be paid by debit cards of some of the banks as listed on the income tax portal. You can also pay Income Tax by visiting your Bank and submit cheque along with Tax Challan 280. Step 5: Create a profile of the LLP on the Income Tax Portal for Filing Returns.” As the LLP Income Tax Return is filed electronically, the LLP is required to register itself for the first time on the Income Tax E-filing Portal. To register the LLP, the mobile and email OTP is required. One designated partner must be registered at the Income Tax Portal as Authorized Signatory. The Digital Signature of the signatory Designated Partner is also registered on the ITR Portal for the purpose of authentication at the time of filing the ITR. Step 6: Filing of Income Tax Return for Your LLP” The Income Tax Return for the LLP can be filed only after payment of self-assessment tax. The LLP ITR can be filed with the use of the digital signature of any designated partner. However, the LLP ITR Can also be verified by way of Aadhar Based OTP of the partner who has been registered on the income tax portal Note 1: Due Date of filing LLP Income Tax Return ITR filing for the LLP has begun since 1st April. The Last Date is 31st July In the case of Tax Audit, the Last Date is 30th September. Tax audit is applicable if the annual turnover has crossed Rs.40 lakhs, or if the capital contribution has crossed Rs.25 lakhs in the concerned financial year In case, the LLP has carried out international transactions or certain Specified Domestic Transactions and has to file Form 3CEB, the last date is 30th November The applicable form is ITR-5 Belated ITR can be filed until the end of the assessment year. Note 2: Consequences of Not Filing LLP ITR The loss of the LLP can be allowed to be carried forward There shall be interest under section 234A Refunds of TDS (if any) shall be delayed You can still file late returns with late Fine under section 234F The late fine is from Rs. 1000 to Rs. 1000 depending on taxable income and delay Non-filing shall have an impact on due diligence of the LLP FAQs What is LLP? A limited liability partnership (LLP) is a body corporate under the Limited Liability Partnership Act, 2008. Furthermore, it is a legally separated entity from that of its partner. Is it mandatory to file return of income? Yes, it is mandatory for every Limited Liability Partnership (‘LLP’). Hence, they need to file the return of income irrespective of amount of income or loss. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax

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