August 22, 2024 | CA B K Goyal & Co LLP

Types of Bill of Lading

learn / Shruti / August 22, 2024

A bill of lading (BL or BoL) is a legal document that’s issued by a transportation company to a shipper. It details the type, quantity, and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination. This document must accompany the shipped products no matter the form of transportation. It must be signed by an authorized representative from the carrier, shipper, and receiver. What is Bill of Lading ? A Bill of Lading is essentially a contract of carriage between the Shipper, Consignee, and Carrier stating the terms and conditions of carriage. Shipments cannot be executed without a Bill of Lading. BoLs must be issued for goods to travel from Point A to Point B. They are legally binding documents, and they often serve as proof of ownership over the goods being carried. A bill of lading is issued by the carrier and, in doing so, he acknowledges that the goods have been received from the shipper/exporter in good condition. Contents of Bill of Lading Names and Addresses – In this section, the full names and addresses of both the shipper and the receiver should be mentioned so it would be straightforward to locate the document. Purchase Orders or Special Reference Numbers – These numbers are considered essential to the business in terms of freight that has to be released for pickup or accepted at delivery. Special Instruction – Under this section, all the instructions for carriers, not for extra service requests, like a lift gate or delivery notification, are taken down. Date – The pickup date will be mentioned here to track the freight when shipping invoices are composed. Description of Items – All shippers must note the number of shipping units, the dimensions and weight, and the description of the material and its makeup. Packaging Type – Items such as cartons, crates, pallets, and drums used when shipping must be noted. NMFC Freight Class – Freight classes impact the cost of the shipment. In general, freight shipments are divided into 18 categories based on weight, dimensions, density, storage capability, ease of handling, value, and liability. Department of Transportation hazardous Material Designation – Hazardous shipments must be mentioned, and special rules and requirements are applicable while shipping. Purpose of Bills of Lading The carrier does not require to submit all the originals before the delivery. The exporter has to retain control over the complete set of the sources until the payment is effected, a bill of exchange is accepted, or some other assurance for the price has been made. Therefore, an account of lading is significant when making shipments. The bill acts as an agreement between a carrier and a shipper for the transportation of goods, and on other conditions, it serves as a receipt issued by a page to the shipper. Types of Bill of Lading Clean Bill of Lading A clean Bill of Lading is issued by the Shipping Company or its agents without any declaration of the defective Constitution of the goods/ packages taken on Board/ stuffed in containers. Received for Shipment Bill of Lading A received Bill of Lading is a document issued by a carrier as evidence of receipt of goods for shipment. It is given before the vessel loading and is not an onboard bill of lading. Through Bill of Lading Bills of Lading are more complex than most BOLS. The document permits the shipping carrier to pass the cargo through several modes of transportation or several distribution centers. Depending on the destination, this bill includes an Inland Bill of Lading and an Ocean Bill of Lading. Claused Bill of Lading A claused Bill of Lading is issued when the cargo is damaged, or the quantity goes missing. Container Bill of Lading A container Bill of Lading is a document that gives information about goods delivered in a safe container or containers from one port to another. House Bill of Lading A House Bill of Lading is a document generated by an Ocean Transport Intermediary freight forwarder or non-vessel operating company. The paper is an acknowledgment of the receipt of shipped goods issued to the suppliers when the cargo is received. This Bill of Lading is also known as the Forwarder’s Bill of Lading. Master Bill of Lading A Master Bill of Lading is a document created for shipping companies by their carriers as a transfer receipt. The document specifies the terms required for transporting the freight, details of the consignor or the shipper, the consignee, and the respective person who possesses the goods. Charter Party Bill of Lading A Charter Party Bill of Lading is an agreement between a charterer and a vessel owner. The vessel’s charterer issues the document to the shipper for the goods shipped on board the vessel. Multimodal Transport Document/ Combined Transport Document A multimodal Transport Document or Combined Transport Document is a type of Through Bill of Lading that involves a minimum of two different modes of transport, land or ocean. However, the modes of transportation can be anything from freight boats to air. Stale Bill of Lading A stale Bill of Lading is presented for negotiation after 21 days from the date of shipment or any other date/ number of days stipulated in the documentary credit. Short-term/ Blank Back Bill of Lading A short-term or Blank Back Bill of Lading is issued when the detailed terms and conditions of the carriage contract are not given on the body of the Bill of Lading or the back of the Bill of Lading. Straight Bill of Lading A straight Bill of Lading indicates that the goods are consigned to a particular person and are not negotiable free from the existing equities. This means that an endorsee acquires no better rights than those the endorser holds. This bill is also called a non-negotiable bill of lading. At the same time, this type of lading is unsafe from a banker’s perspective. Order Bill of Lading Order Bill of Lading is

Types of Bill of Lading Read More »

UPI Transaction Charges

learn / Shruti / August 22, 2024

Developed by the National Payment Corporation of India (NPCI), UPI enables real-time fund transfers between two accounts through mobile devices. Also known as Unified Payment Interface, this payment system makes it extremely convenient to make payments instantly and digitally. One of the compelling reasons for UPI’s immense popularity is that you don’t have to pay additional fees or charges for money transfers and payments. The National Payments Corporation of India (NPCI) developed the Unified Payment Interface (UPI). UPI allows real-time transfers between personnel accounts, banks and merchant accounts through mobile devices. It also facilitates instant bank-to-bank payments, making online payments convenient and easy. It is the most preferred payment system in India. What is a Prepaid Payment Instrument (PPI) in UPI? The Prepaid Payment Instrument (PPI) in UPI means digital wallets that allow a person to store money and make real-time payments online. Wallets, smart cards, preloaded gift cards, vouchers and magnetised chips also come under PPIs. Payments through PPI are made when a transaction is done via a wallet, like a PhonePe wallet, by scanning a UPI QR code. A few more examples of wallets are the Paytm wallet, SODEXO vouchers, Amazon Pay, Freecharge wallet, etc. What are UPI’s Transfer Limits? While UPI payments are fast, convenient, and easy, there is a limit to the amount and number of transactions you are allowed to make daily. As per NPCI, the maximum UPI transaction limit is Rs. 1 lakh daily. Educational institutions and healthcare facilities are provided a limit of Rs. 5 lakh per day. The bank-to-bank transfer limit varies from Rs. 25,000 to Rs. 1 lakh based on the bank account linked with your UPI. The UPI transfer limit is set daily or monthly, depending on the bank. UPI New Regulations As per the new rule, an interchange fee of up to 1.1% on UPI transactions above Rs.2,000 made through PPIs, applicable from 2024. Surcharge/Interchange fee on UPI payment When UPI transactions are made through PPIs, such as wallets, interchange fees will be imposed. The interchange fee is associated with card payments and is charged to cover the processing, accepting and authorising transactions costs. This fee is similar to the merchant discount rate applicable to credit cards. It increases revenue for payment service providers and banks. In UPI transactions, the interchange fees are transaction fees the merchant must pay when a customer processes a transaction. Thus, when a customer makes a payment through UPI using a PhonePe QR code at a store, the merchant should pay the interchange fee to the payment service provider, i.e. PhonePe. The interchange fee is applicable in the range of 0.5-1.1% on different services. An interchange fee of 0.5% is applicable on fuel payments, 0.7% for the post office, telecom, utilities, agriculture and education, 0.9% for supermarket payments, and 1% for insurance, mutual fund, government and railways. Will customers have to pay the interchange fee on UPI payments made via wallets? Customers will not have to pay the interchange fees for UPI payments made through PPIs for Peer to Peer (P2P) and Peer to Merchant (P2M) transactions. P2P transactions mean transferring an amount between two individuals or individual accounts through UPI. P2M is where customers make payments through UPI to merchants for purchases. One bank charges the interchange fee to another bank for processing a transaction. In the case of UPI transactions, the merchant bank (the business or person receiving payment) pays the interchange fee to the payer bank (the person making the payment). Thus, the interchange charges only apply to PPI merchant transactions, and there is no charge to customers. Customers or users do not have to pay interchange fees for the UPI payments when the UPI is linked to a bank. Merchants will pay the interchange fee when the UPI is linked to the wallet. The interchange fee will also not affect customers who make UPI payments to family, friends, other individuals or the merchant’s bank account. FAQs Are there any charges for UPI transactions? UPI transactions are free for users. There are no fees for sending and receiving money through UPI or bank transfer. Only merchants that accept payments from customers through digital wallets need to pay interchange fees. Do banks impose transaction fees for UPI transfers between banks? No, there are no transaction fees involved for UPI transfers between banks. The National Payments Corporation of India (NPCI) has facilitated seamless bank transfers through UPI without additional charges.

UPI Transaction Charges Read More »

Scrutiny Assessment under Income Tax – Section 143-(3)

Income Tax / Shruti / August 22, 2024

The process of verifying the data a taxpayer has supplied in the returns they have filed to the income tax department is known as income tax assessment. Following the submission of an assessee’s income tax return, the Income Tax department conducts an assessment. The assessment is being done so that the Income Tax department may check the return that was submitted to make certain that the amount of taxable income stated and tax that was paid were accurate Income Tax Assessment The term “assessment” in the context of income tax refers to the process where the Income-tax Department evaluates a taxpayer’s return of income. This evaluation is done to verify the accuracy and correctness of the information provided by the taxpayer in their Income tax return. The assessment process involves various methods, including: Regular assessments examine the details submitted in the taxpayer’s return for accuracy. Re-assessment might occur in specific situations as specified by the tax laws. Best judgment assessment under Section 144, where the evaluation is based on the best judgment of the Assessing Officer, is typically used when the taxpayer fails to comply with specific requirements of the tax laws. Notably, the Finance Act of 2018 introduced Section 143(3A), which implemented an e-assessment scheme for regular assessments carried out under Section 143(3). Further expanding this, the Finance Act 2020 included the best judgment assessments under Section 144 within the scope of e-assessment. By leveraging digital platforms, E-assessment aims to make the entire process more efficient and less cumbersome. Scrutiny Assessment Under Section 143(3) A thorough review of an income tax return that has been filed by a taxpayer is a scrutiny assessment in income tax Under Section 143(3). During a scrutiny assessment, a tax officer will carry out numerous tests and procedures to verify the accuracy and legitimacy of the taxpayer’s claims, deductions, and other items in their income tax return. A scrutiny assessment in income tax aims to make sure that the taxpayer hasn’t understated their income, calculated an excessive loss, or underpaid their taxes in any other way. For the following situations, scrutiny evaluation on Section 143(2) would be appropriate: A Section 139 income tax return or a Section 142 answer to something like an scrutiny assessment in income tax notification has been submitted (1). In order to make sure that the taxpayer hasn’t underestimated their income, calculated an excessive loss, or underpaid their income taxes in any way, the Assessing Officer or Income Tax Authority believes it essential or expedient to conduct an audit. Scrutiny Assessment in Income Tax Notice u/s 143(2) To initiate a scrutiny assessment, the concerned Income Tax officer must first issue an income tax notice under Section 143(2). In the income tax notice under Section 143(2), the Assessing Officer would request the taxpayer to appear in person or complete the process through e-Assessment and/or produce information and documents which the tax officer ascertains to be important for determining the taxable income and tax payable. An income tax notice under Section 143(2) should be served within a period of six months from the end of the financial year in which the return is filed. For example if an income tax return is filed on 2nd November 2018, notice under Section 143(2) can be served on the assessee up to September 30, 2019. If the notice is issued on 29th September 2019 and is received by the assessee after 30th September 2019, it is not a valid notice. If the notification is sent out on September 29, 2019, and the assessee receives it after September 30, 2019, it is not really a legitimate notice. When is Notice u/s 143(2) Issued? Notice u/s 143(2) is issued to you by the Income Tax Department when your Income Tax Return is selected for scrutiny assessment or detailed assessment u/s 143(3). In simple words, Scrutiny assessment or detailed assessment u/s 143(3) means scrutiny is carried out to confirm the correctness and genuineness of various claims, deductions, etc., made by you in your Income Tax Return. The basic purpose of this scrutiny assessment is to ensure that you have filed the return with the correct income and paid the tax accordingly. The objective of this scrutiny is to check that: You have not understated your income You have not computed excessive loss You have not underpaid the tax in any manner Any mismatch in Income figures High value transactions Or any other defect in the ITR So, we can conclude to carry out scrutiny u/s 143(3) of the Income Tax Act, notice u/s 143(2) is issued by the Income Tax Department. Such notice can be issued within three months from the date on which the financial year ends. What is the Time Limit for Issuance of Notice u/s 143(2)? A notice u/s 143(2) of the income tax act for scrutiny assessment can only be issued up to a period of three months from the end of the financial year in which you furnished the return. (before 1 st April 2021, the limit was six months from the end of the financial year) For example, Ms. Sharma filed her return on 25.07.2022 for the financial year 2021-2022. In such a case, the notice u/s 143(2) of the income tax act can be issued to Ms. Sharma only up to 30.06.2023(being the end of three months period from FY 2022-2023 in which the said return was filed). What Exactly is a Scrutiny Assessment? A scrutiny assessment, as defined under section 143(3), involves a detailed examination of the income tax return. During this assessment, the tax authorities meticulously check the authenticity and accuracy of various claims, deductions, and other details you have provided in your return. Scope of Assessment under Section 143(1): The assessment under Section 143(1) is essentially a preliminary check of the income tax return filed by the taxpayer. At this stage, the focus is not on detailed return scrutiny. Instead, it involves a basic verification process where certain adjustments may be made to the income or loss reported by the taxpayer.

Scrutiny Assessment under Income Tax – Section 143-(3) Read More »

drug control organization license

Business / Shruti / August 22, 2024

Rajasthan drug license is a document of permission for carrying out businesses related to pharmaceutical industries that deal with drugs, medicines and cosmetics. The government of Rajasthan issues drug licenses to regulate the manufacture, storage, distribution and sale of drugs. Rajasthan Drug License is issued under the Drug and Cosmetics Act of 1940 to the person dealing with drugs. As per this act, it is mandatory to obtain a drug license before the commencement of the drug business. Meaning of Drugs Section 3(b) of the Drugs and Cosmetics Act,1940 defines “drug” to include all medicines and devices for the use of human beings or animals internally or externally, and all substances planned to be used for or in the diagnosis, mitigation, treatment, or prevention of any disorder or disease in animals or human beings, including preparations applied on the human body for the purpose of repelling insects like mosquitoes; it also includes all substances that can be used for the destruction of insects and all components of a drug – like empty gelatin capsules. The definition was amended in 1964, to include Ayurvedic and Unani Drugs. Importance of Rajasthan Drug License The Rajasthan drug license gives the permit to sale, resale, market, manufacture, trade, etc. of drug and cosmetics. Without a drug license, no person can do pharmacy business or even start to associate with any dealings in Rajasthan. To ensure the good health of our nation through adequate access the drugs and medicines, the Drugs & Cosmetics Act made it mandatory to obtain a drug license Rajasthan drug license also ensures that the drugs and goods are not misused or abused by any individuals Dealing with drugs and cosmetics without a drug license is a cognizable offence. Every business person in the pharmacy industry needs to have their drug incense to carry out their day-to-day business work. Rajasthan drug license contains the rules and regulations for the person who is dealing with drugs and details of the business premises. Purpose of Drug Licence The access to medicines and drugs must be restricted and regulated to ensure that such goods are not abused or misused by individuals. Thus, all pharmacists, wholesalers, retailers, manufacturers, sellers, dealers and importers of drugs, cosmetics, ayurvedic, Siddha and Unani drugs have to mandatorily obtain drug license under the Drugs and Cosmetics Act, 1940. The purpose of the drug license is to grant permission to allow enterprises or individuals to engage in businesses related to drugs and cosmetics. No enterprise or individual can operate a business dealing in drugs, medicines or cosmetics without obtaining a drug license in India. In addition to a drug license, they must also obtain a trade license and a shop and establishment registration. The Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945, help the government regulate and monitor the quality of drugs sold in India. The government exercises control over drugs from the raw material stage during manufacture, sale, distribution and till it is sold on to a patient or consumer by a pharmacist in a retail pharmacy, hospital or dispensary. The government also exercises control in the aspects related to import and export of medicines, sale of the drug to a minor, consumption of schedule H & X drugs, etc., that requires thorough monitoring and cautious execution. The drug license is granted by the drug controlling authority under the Drugs and Cosmetics Act, 1940. Who needs a Drug License? Businesses with any cosmetics intended to be poured, sprinkled, rubbed or introduced into the human body or for cleansing, beautifying, promoting attractiveness, or altering the appearance of a Human must obtain a Rajasthan Drug license. It is essential to obtain a Drug license to deal with medicines which are used for external or internal use of human beings or animals Manufacturing and distribution drugs/cosmetics applied to the human body to repel insects like mosquitoes also need Rajasthan drug license. Businesses with substances used for the destruction of insects which cause disease in human beings should obtain a drug license. A Rajasthan drug license is essential for dealing with empty gelatine capsule To manufacture, store and distribute the medicines used for diagnosis, treatment, mitigation or prevention of disease or disorder in human beings or animals, need a Rajasthan drug license Types of Drug License Manufacturing License– License issued to a business that manufactures drugs inclusive of allopathic/homoeopathy medicines. Sale License – License issued for the sale of drugs. It has the following bifurcations: – Wholesale Drug License – Retail Drug License Wholesale License – A drug wholesaler must obtain a wholesale licence. Wholesale means the sale of the drug to a person/retailer to further sell it. Retail License – A retail license is required for the retail sale of drugs. A retail sale means the sale of drugs or cosmetics for the consumption of the end consumer. Retailers can sell it to a dispensary, hospital, educational, medical, or research institute. Retailers engaged in pharmaceuticals, cosmetics, stand-alone pharmacists, ayurvedic shops, etc need this license. Loan License – License issued to a business that does not own the manufacturing unit but uses the manufacturing facilities of another licensee to manufacture drugs. Import License – License issued to any dealer importing the products for the manufacturing of drugs or is engaged in the business of importing drugs in India. Multi-Drug License – License issued to businesses that own pharmacies in multiple states with the same name. Drug Controlling Authority or Regulatory Authority State Drugs Standard Control Organisation (SDSCO) – Issues licenses for the sales, distribution, and manufacture of drugs regulated by the state authorities. Central Drugs Standard Control Organisation (CDSCO) – Responsible for approving and issuing licenses for the newly made drugs and clinical trials of drugs. It also controls the quality of the imported drugs and coordinates with the SDSCO. State Drug Controlling Authority with approval by the Central License Approving Authority – Issues licenses for establishing blood banks and their components and products like Vaccines, Sera, etc. Department of Ayush – Issues licenses for ayurvedic, Unani, Siddha, homoeopathic and herbal products for cosmetic

drug control organization license Read More »

National Rural Health Mission (NRHM)

Government Schemes / Shruti / August 22, 2024

According to the World Bank, almost 64.61% of the Indian population lived in rural areas in 2021. Most rural regions lack modern healthcare facilities and the advanced infrastructure required to provide quality services. What is National Rural Health Mission? The National Rural Health Mission was launched on 12th April 2005 to provide quality health care to the rural population. The Ministry of Health and Family Welfare implements it. It establishes a community-owned health delivery system through intersectoral convergence with a special focus on health determinants like water sanitation and nutrition. National Rural Health Mission Objectives The main essence of the National Rural Health Mission is to ensure a healthcare delivery system that focuses on decentralized, community-owned healthcare delivery. It also aims to provide support to those who contribute to the social determinants. The basic objectives are: To reduce the infant mortality rate and maternal mortality rate To ensure population stabilization. To prevent and control communicable and noncommunicable diseases To encourage intersectoral coordination To make the Public Health Care delivery system fully functional and accountable. To upgrade Aayush to promote a healthy lifestyle. Implementation of public-private partnership and MIS. Components of National Rural Health Mission The National Rural Health Mission includes core components like Health System Strengthening, Reproductive, Maternal, Newborn, Child, and Adolescent Health (RMNCH+A), and National Disease Control Programs. It also encompasses community participation initiatives like the ASHA program and Rogi Kalyan Samitis. Infrastructure development and human resource enhancement are key elements. ASHA: Accredited Social Health Activists (ASHAs) are community health volunteers. They act as a bridge between the health system and the community. They provide a range of health services, including home-based deliveries, immunization, and referral services. Rogi Kalyan Samiti (RKS): RKSs are patient welfare committees. These are responsible for managing the affairs of hospitals. They provide financial support to patients and their families. They also help to improve the quality of care in hospitals. United Grants to Sub-Centres (UGS): UGSs are grants that are provided to sub-centres to improve their infrastructure and services. This includes providing better equipment, training for staff, and improving access to care. Health Care Service Delivery: NRHM has helped to improve health care service delivery. This is achieved by providing ambulances, mobile medical units, and human resources. This has helped to reduce the time it takes for patients to access care and to improve the quality of care. Janani Shishu Suraksha Karyakram (JSSK): JSSK is a program that provides free transport, drugs, diagnostic tests, blood, and diet to pregnant women and sick newborns in public health institutions. This has helped to reduce maternal and neonatal mortality rates. Strategies of National Rural Health Mission NRHM strategies involve decentralized planning and a community-based approach to health services. It focuses on improving healthcare infrastructure and increasing the workforce in rural areas. The mission promotes public-private partnerships to ensure comprehensive healthcare. Decentralised village and district-level health planning and management: This strategy aims to give more power and responsibility to the local level so that they can plan and manage their own healthcare needs. This is done by creating the following: Village Health and Sanitation Committees (VHS&SCs) and District Health Management Societies (DHMSs). Appointment of Accredited Social Health Activist (ASHA) ASHAs are community health volunteers responsible for providing health care services to the rural population. They are trained to provide a range of services. This includes home-based deliveries, immunization, and referral services. Strengthening the public health service delivery infrastructure: This strategy aims to strengthen the public health infrastructure in rural areas. This is done by: building new health facilities, upgrading existing facilities, and providing equipment and supplies. Grants are provided to states and districts to improve their health infrastructure. Mainstreaming AYUSH: AYUSH is a system of traditional Indian medicine. It includes Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy. This strategy aims to integrate AYUSH into the public health system so that people have access to a wider range of healthcare services. Reorienting medical education: This strategy aims to reorient medical education so that it is more relevant to the needs of the rural population. This is done by introducing new courses and training modules on rural health. It also involves the provision of scholarships to students from rural areas. Promoting public-private partnerships: This strategy aims to promote public-private partnerships in the health sector. The government can leverage the resources of the private sector to improve healthcare delivery in rural areas. Implementation Strategies Core Strategies Train and improve the capacity of Panchayati Raj Institutions (PRIs) to own, control and manage all the public health services. Promoting access to improved health care services at the household level through the female health activist (ASHA). The health plan for each village through the Village Health Committee of the Panchayat. Strengthening the sub-centre through an untied fund which would enable the local planning and action and more Multi-Purpose Workers (MPW). Strengthening the existing PHCs and CHCs, and provision of 30 to 50 bedded Community Health Centers (CHCs) per lakh population for the improved health care to a normative standard (Indian Public Health Standards defining equipment, personnel, and the management standards). Implementation and Preparation of an inter-sectoral District Health Plan that will be prepared by the District Health Mission, including drinking water, nutrition, sanitation and hygiene Integrating the vertical Health and Family Welfare programmes at the National, State, District and Block levels. Technical Support provided to the National, State and District Health Missions, for the Public Health Management. Strengthening the capacities required for the data collection, assessment and review for the evidence-based monitoring, planning and supervision. Formulation of the transparent policies for the deployment and career development of the Human Resources for health. Developing capacities for preventive health care at primary levels for promoting healthy lifestyles, a decrease in the consumption of tobacco and alcohol etc. Promoting the non-profit sector that is particularly in the underserved areas. Supplementary Strategies Regulation of the Private Sector including the informal rural practitioners to ensure the availability of quality service to the citizens at the reasonable cost. Promotion of Public-Private Partnerships for achieving public health goals. Mainstreaming the AYUSH – revitalizing the local health traditions. Reorienting the medical education to support all the rural health issues including the management of Medical care and Medical

National Rural Health Mission (NRHM) Read More »

Salary Hike Calculator

learn / Shruti / August 22, 2024

A salary hike, also known as an increment is an increase in the current wage by a fixed percentage. This is expressed as a percentage of the current salary and is known as the percentage hike. A salary hike refers to an increment in salary. It includes upward adjustment of a person’s compensation package. It is usually given by an employer based on important factors like an employee’s performance, his experience, inflation, or fluctuations in the job market. Salary hikes are important achievements in an employee’s career. It shows recognition for their contributions and provides them with opportunities for increased financial stability and professional growth.. What is a salary hike? A salary hike is an addition to an employee’s compensation besides the bonus. Employers use salary hikes to adjust base salaries and compensation regularly. This type of salary increase is distinct from bonuses and commissions, which are typically performance-based. A salary hike typically recognises an employee’s long service to a company and reflects changes in the employee’s responsibilities towards them. Salary Hike Calculator Work Input Current Salary Details: Users can start by entering their current salary data into the calculator. This includes their current salary amount, any extra benefits or allowances received, and other details like bonuses or commissions. Enter Proposed Salary Adjustments: After that, users input the proposed salary adjustments. This could include factors such as a percentage increase in salary, a fixed amount of raise, or any changes in benefits or allowances. Calculate Salary Hike Percentage: Once the current and proposed salary details are entered, the calculator applies a predefined formula to calculate the percentage increase in salary. This formula typically involves subtracting the current salary from the new salary, dividing it by the current salary, and then multiplying by 100 to obtain the percentage increase. Display Updated Salary Amount: After the calculation is complete, the calculator displays the updated salary amount post-hike. This provides users with a clear understanding of how their salary has changed and what their new income level will be. Optional Features: Some advanced Salary Hike Calculators may offer additional features such as comparison tools to analyze different salary hike scenarios, charts or graphs to visualize the impact of salary adjustments, and options to factor in tax implications or other financial considerations. How to Calculate Salary Hike Percentage? Determine Current Salary: Start by identifying the individual’s current salary. This could be their annual salary, monthly salary, or any other period-specific amount. Identify New Salary: Next, determine the new or proposed salary after the hike. This could be the result of a salary increase, promotion, or any other change in compensation. Calculate the Difference: Find the difference between the new salary and the current salary. This can be done by subtracting the current salary from the new salary. Calculate Percentage Increase: Divide the difference obtained in step 3 by the current salary. Then, multiply the result by 100 to express it as a percentage. Formula to calculate hike percentage (New salary – Old salary) * 100 / (Old salary) = Salary hike percentage Here is an example to help you understand:Suppose your monthly salary was ₹30,000 and your new salary is ₹36,000. The salary increase would be ₹35,000 – ₹30,000 = ₹6,000. Here, the hike percentage would become (₹6,000100) / ₹30,000 = 20%. Common reasons for salary hike Displaying a good work ethic and positive attitude: A positive attitude and a strong work ethic can help you influence and improve the performance of your colleagues. Managers reward employees who uphold ethical standards and are diligent, as this fosters productive engagement within the organisation. Inspiring and challenging your colleagues: Employees who exhibit leadership abilities and understand their teammates’ motivations are likely to be the next generation of managers and senior staff. A salary hike is one way to motivate them to stay with the company. Being proactive: Performing tasks without being asked and trying to boost your skills and knowledge can help you become a greater asset to the company. When you are proactive and can identify what the company has set as a criterion for a salary hike, you can fulfil them and increase your prospect of receiving an increment. FAQs When was the last time you received a salary hike? The date you started your job and the last time you received a raise can also affect your chances of receiving a successful salary increase. If you joined the business recently, or if you have received a raise within the last six months, your employer may not consider your request for a pay increase. It may be a good time to request a raise if you have not received one in years and have continued to take on more responsibility at work and perform well. If you believe you are due for a raise, consider the following to help you gauge your progress and quantify it in terms of the deserved salary hike: Collect all information about your work history and increasing responsibilities, including dates and amounts of previous hikes. Compile a list of your significant accomplishments and completed projects since your last salary hike. What makes me deserving of a hike? By asking yourself why you deserve a raise, you can determine your major objectives. Perhaps you deserve a raise because of the value you bring to the company, or you wish to earn additional money to increase your disposable income. When requesting a salary increase, it is crucial to exhibit your value to the organisation. If you believe that you deserve a salary hike, it can be easier to convince your employer for the same. With the following tips, you can request an adequate raise: Compare your compensation to the national average for the same role. This can help you establish a starting point for salary negotiations. Compile a list of initiatives you have taken, your skills and expertise that can benefit the company and use it to determine your eligibility for a raise.

Salary Hike Calculator Read More »

fcra registration for trust and ngo

learn / Shruti / August 22, 2024

Any trust, organization, or Section 8 charity that accepts a foreign contribution or donation must register under Section 6(1) of the Foreign Contribution Regulation Act, 2010. This kind of registration is called an FCRA registration because it is mandated by the Foreign Contribution Regulation Act of 2010. the world is more focused towards social and environmental causes. Businesses themselves, apart from their regular objective of profit-making, are actively involved in activities that promote social, economic, cultural and environmental growth and prosperity. The world today is so well connected and so well linked that accessibility to any part of the world is easy. Transactions between people, places and countries take place on a day to day basis. As a result, the flow of foreign currency into and out of each country is now completely natural and an absolute commonality. The Objective of FCRA 2010 The Foreign Contribution Regulation Act, 2010 was enacted with a view to:- Regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individual associations or companies. Prohibit the acceptance and utilization of foreign hospitality or foreign contribution for any activities unfavourable to national interest and for matters related to therewith or incidental thereto. The Eligibility Requirements Standard Procedure for Registration Regular registration necessitates that applicants fulfill certain conditions. An application must be eligible under the law, which may necessitate registration as a Section 8 business under the Companies Act of 2013 or as a society under the Society Registration Act of 1860 or the Indian Trusts Act of 1882. Must have significantly impacted the world by accomplishing novel things within its field. Must have put in at least Rs—10,00,000 over the past three years to succeed (Excluding administrative expenditure). Please include copies of audited financial accounts prepared by qualified Chartered Accountants for the prior three years to apply. A newly constituted corporation can get approval from the Ministry of Home Affairs to accept foreign donations for a specific purpose, activity, and source through a process called Prior Permission (PP). The Requirement for Preceding Authorization and Documentation Prior Permission Registration The Prior Permission route is ideally suited for those organizations which are newly registered and would like to receive foreign contributions. This is granted for receipt of a specific amount from a specific donor for carrying out specific activities/projects. The association must:- Be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or registered as Section 8 Company as per the Companies Act, 2013 or any such Act as may be required. Submit a specific commitment letter from the donor to the Ministry of Home Affairs which indicates:- Amount of contribution given Purpose for which it is proposed to be given Where the Indian recipient organization and foreign donor organization have common members, the following conditions need to be met: The Chief Functionary of the Indian organization can’t be part of the donor organization. At least 51% of the members/office-bearers of the governing body of the Indian recipient organization should not be employees/members of the foreign donor organization. Where the foreign donor is an individual: He cannot be the Chief Functionary of the Indian organization. At least 51% office bearers/members of the governing body of the recipient organization should not be the family members and close relatives of the donor. Criteria for grant of FCRA Registration The ‘person’ or ‘entity’ making an application for registration or grant of prior permission- Is not fictitious or benami; Has not been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another; Has not been prosecuted or convicted for creating communal tension or disharmony in any specified district or any other part of the country; Has not been found guilty of diversion or mis-utilisation of its funds; Is not engaged or likely to engage in propagation of sedition or advocate violent methods to achieve its ends; Is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes; Has not contravened any of the provisions of this Act; Has not been prohibited from accepting foreign contribution; The person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him. The person being other than an individual, any of its directors or office bearers has neither been convicted under any law for the time being in force nor any prosecution for any offence is pending against him. The acceptance of foreign contribution by the entity / person is not likely to affect prejudicially – The sovereignty and integrity of India; The security, strategic, scientific or economic interest of the State; The public interest; Freedom or fairness of election to any Legislature; Friendly relation with any foreign State; Harmony between religious, racial, social, linguistic, regional groups, castes or communities. The acceptance of foreign contribution- Shall not lead to incitement of an offence; Shall not endanger the life or physical safety of any person. How to Apply for FCRA Registration The first step is the one where the online portal of FCRA needs to be accessed. Form FC – 3A (Application for FCRA Registration) or Form FC – 3B (Application for FCRA Prior Permission) is to be clicked on, as the case may be. The webpage will next present the user with an option to apply online. Once the “Apply Online” option is selected, the next step is to create a username and password by clicking on “Sign Up”. Once a username and a password have been created, and the message regarding the same is displayed on the screen, the applicant may log in to the account. Once logged in, the “I am applying for” will have a dropdown list from which FCRA Registration has to be chosen. “Apply Online” is to be selected next, following which “Proceed Registration” has to be selected. Next, in the title bar, the FC-3 menu is to be clicked on to start

fcra registration for trust and ngo Read More »

Rajasthan Investment Promotion Scheme

Government Schemes / Shruti / August 22, 2024

The objective of this scheme implemented by the Rajasthan Government is to encourage new industries and encourage new investment in old industries. This scheme will be in force from 07 October 2022 to 31 March 2027 and it can be amended from time to time as per the need. Eligibility for MSME Sector under RIPS 2022 (a) Manufacturing UnitsAll MSME manufacturing units (except tobacco/pan masala, beef, aerated water plant, retail/trading activity, other prohibited activity) are eligible to avail the benefits under RIPS 2022. (b) Service Enterprises Service enterprises engaged in the following business are eligible to receive benefits under RIPS2022:- Cold Chain StorageConference HallsElectronic Manufacturing ClustersHealth CareIT & FintechHotels & TourismEntertainmentFilm CityCold Chain in PharmaceuticalsCommon Utility CentresPreservation of Agricultural Products Employment Generation Subsidy:Employers of eligible MSME units will get 50% refund of the amount deposited by them in EPF and ESI. This refund will be available to the employer for seven years. Green Incentives:(i) 50% of the cost incurred by the employer on water audit will be refunded, up to a maximum of Rs 2 lakh. Cost incurred on water equipment will be refunded up to Rs 20 lakh. (ii) 50% of the cost of equipment purchased for recycling and reusing waste water and rainwater harvesting will be refunded, up to a maximum of Rs 7.50 lakh.(iii) 50% of the cost of equipment purchased for waste material management will be refunded, up to a maximum of Rs 1 crore. Other incentives:1. 50% of the cost incurred on obtaining quality certificate or process certificate for export will be refunded, up to a maximum limit of Rs 25 lakh.2. Subsidy of up to 75% of the cost of obtaining patent will be provided, up to a maximum limit of Rs 5 lakh.3. 50% of the investment made in the process of raising funds through SM platform will be rebated, up to a maximum limit of Rs 5 lakh Benefits for MSME units under RIPS 2022: MSME units are refunded 75% of the SGST tax paid by them as investment subsidy for a period of 7 years.Interest Subsidy: The benefit of interest subsidy for MSME units under RIPS 2022 is given for 5 years. The slabs of interest subsidy under RIPS 2022 for MSME units are given below:Loan amount – Interest subsidy (%) Rs.1 crore to 5 crore – 6% Rs.5 crore to 10 crore – 4% Rs.10 crore to 50 crore – 3% FOCUSED CATEGORIES The RIPS 2022 policy has simplified architectural to enable easier in understanding with considering the FOCUS category classified under RIPS 2019 to ensure there should not be any exclusion in the new policy. The eight identified priority category under RIPS 2022 as under: Manufacturing Services Sunrise sectors MSMEs Startups Logistics Parks, Warehousing & Cold Chains R&D, GCC & Test Labs Renewable Energy Plants FAQs What is the Rajasthan Investment Promotion Scheme (RIPS)? The Rajasthan Investment Promotion Scheme (RIPS) is a policy initiative by the Government of Rajasthan to attract and encourage investments in the state. It aims to promote sustainable industrial development, create employment opportunities, and enhance economic growth by providing various incentives and benefits to businesses and industries setting up operations in Rajasthan. What types of businesses are eligible for incentives under RIPS? RIPS is open to a wide range of businesses, including manufacturing units, service enterprises, agro-based industries, IT and IT-enabled services, handicrafts, and more. Specific eligibility criteria and incentives may vary depending on the nature and scale of the business.

Rajasthan Investment Promotion Scheme Read More »