September 10, 2024 | CA B K Goyal & Co LLP

Section 24 – Code of Criminal Procedure, 1973

CODE OF CRIMINAL PROCEDURE, 1973 / Shruti / September 10, 2024

Public Prosecutors (1) For every High Court, the Central Government or the State Government shall, after consultation with the High Court, appoint a Public Prosecutor and may also appoint one or more Additional Public Prosecutors, for conducting in such Court, any prosecution, appeal or other proceeding on behalf of the Central Government or State Government, as the case may be. (2) The Central Government may appoint one or more Public Prosecutors, for the purpose of conducting any case or class of cases in any district or local area. (3) For every district, the State Government shall appoint a Public Prosecutor and may also appoint one or more Additional Public Prosecutors for the district : Provided that the Public Prosecutor or Additional Public Prosecutor appointed for one district may be appointed also to be a Public Prosecutor, or an Additional Public Prosecutor, as the case may be, for another district. (4) The District Magistrate shall, in consultation with the Sessions Judge, prepare a panel of names of persons, who are, in his opinion, fit to be appointed as Public Prosecutors or Additional Public Prosecutors for the district. (5) No person shall be appointed by the State Government as the Public Prosecutor or Additional Public Prosecutor for the district unless his name appears in the panel of names prepared by the District Magistrate under sub-section (4). (6) Notwithstanding anything contained in sub-section (5), where in a State there exists a regular Cadre of Prosecuting Officers, the State Government shall appoint a Public Prosecutor or an Additional Public Prosecutor only from among the persons constituting such Cadre : Provided that where, in the opinion of the State Government, no suitable person is available in such Cadre for such appointment that Government may appoint a person as Public Prosecutor or Additional Public Prosecutor, as the case may be, from the panel of names prepared by the District Magistrate under sub-section (4). [Explanation.—For the purposes of this sub-section,— (a) “regular Cadre of Prosecuting Officers” means a Cadre of Prosecuting Officers which includes therein the post of a Public Prosecutor, by whatever name called, and which provides for promotion of Assistant Public Prosecutors, by whatever name called, to that post; (b) “Prosecuting Officer” means a person, by whatever name called, appointed to perform the functions of a Public Prosecutor, an Additional Public Prosecutor or an Assistant Public Prosecutor under this Code.] (7) A person shall be eligible to be appointed as a Public Prosecutor or an Additional Public Prosecutor under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (6), only if he has been in practice as an advocate for not less than seven years. (8) The Central Government or the State Government may appoint, for the purposes of any case or class of cases, a person who has been in practice as an advocate for not less than ten years as a Special Public Prosecutor : [Provided that the Court may permit the victim to engage an advocate of his choice to assist the prosecution under this sub-section.] (9) For the purposes of sub-section (7) and sub-section (8), the period during which a person has been in practice as a pleader, or has rendered (whether before or after the commencement of this Code) service as a Public Prosecutor or as an Additional Public Prosecutor or Assistant Public Prosecutor or other Prosecuting Officer, by whatever name called, shall be deemed to be the period during which such person has been in practice as an advocate. STATE AMENDMENTS BIHAR ■ Section 24(6) Sub-section (6), substitute the following : “(6) Notwithstanding anything contained in sub-section (5) wherein a State there exists a regular cadre of Prosecuting Officers, the State Government may also appoint a public prosecutor or an Additional Public Prosecutor from among the persons constituting such cadre.”—Vide Act No. 16 of 1984. JAMMU AND KASHMIR ■Section 24(6A) – After sub-section (6), insert the following sub-section: “(6A) Notwithstanding anything contained in sub-section (1) and sub-section (6), the Government of the Union territory of Jammu and Kashmir may appoint a person who has been in practice as an Advocate for not less than seven years as Public Prosecutor or Additional Public Prosecutor for High Court and for the District Courts and it shall not be necessary to appoint public Prosecutor or Additional Public prosecutor for the High Court in consultation with High Court and Public Prosecutor or Additional Public Prosecutor for the District Court from amongst the person constituting the cadre of Prosecution for the State of Jammu and Kashmir.”- Vide Order S.O. 1123(E), dated 18-3-2020, w.e.f. 18-3-2020. HARYANA ■ Section 24(6) Add the following Explanation to sub-section (6) : “Explanation : For the purpose of sub-section (6), the persons constituting the Haryana State Prosecution Legal Service (Group A) or Haryana State Prosecution Legal Service (Group B), shall be deemed to be a regular cadre of prosecuting officers.”—Vide Act No. 14 of 1985. KARNATAKA ■ Sub-section (1) – Omit the words and punctuation mark “or the State Government shall”, – For the words “appoint a Public Prosecutor” substitute the words “or the State Government shall appoint a Public Prosecutor”—Vide Act No. 20 of 1982. MADHYA PRADESH ■ Sub-section (6) – For the words, brackets and figure “Notwithstanding anything contained in sub-section (5)”, the words, brackets, letter and figures “Notwithstanding anything contained in sub-section (5), but subject to the provisions of sub-section (6A)” shall be substituted and shall be deemed to have been substituted with effect from 18th December, 1978.—Vide M.P. Act No. 21 of 1995. ■ Sub-section (6A) – After sub-section (6), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from 18th December, 1978, namely :— “(6A) Notwithstanding anything contained in sub-section (6), the State Government may appoint a person who has been in practice as an advocate for not less than seven years as the Public Prosecutor or Additional Public Prosecutor for the district and it shall not be necessary to appoint the Public Prosecutor or Additional Public Prosecutor for the district from among the persons constituting the Cadre of Prosecuting Officers in the State of Madhya Pradesh

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Young Interns Program

Government Schemes / Shruti / September 10, 2024

The Young Interns Program (YIP) is an internship program, envisaged by the Government of Rajasthan, for providing opportunities for talented and progressive youth to upgrade their skills by gaining practical experience working in programs, schemes and projects of the government departments. The program is mutually beneficial to the government as well as the interns: The Government is benefitted by infusing novelty and innovation in the project implementation and service delivery system through the youthful and courageous ideas & techniques of the young interns. The Interns are benefitted by attaining knowledge of project implementation and the ecosystem of the government functionalities. Objectives To empower the young brains to attain awareness and knowledge about various government programs and services and about various interventions between government, service providers, recipients and peripheral agencies such as media, civil society etc. To strengthen their research and evaluation skills in the field of public administration and development services. To generate interest amongst the youth towards the entire service delivery ecosystem of the public services. To get independent critical analysis of government programs and for seeking suggestions for corrective measures. To augment innovations from the young minds to enhance the outreach and impact of government schemes & programs. Deployment For FY 2023-24, the following arrangements for the deployment of 300 young interns may be executed: Interns to be deployed at each Divisional HQ: 3 each (7×3=21) Interns to be deployed at each District HQ: 2 each (26×2=52) Interns to be deployed at the Department level for specific to the schemes/projects/programs: 227 (300-21-52=227) Duration The internship is of one-year duration. NOTE 1: After the end of the first year, if the mentor/nodal officer feels and recommends the extension in the internship duration on the basis of the performance of the intern, the duration of the internship may be increased by one more year with six months at a time. NOTE 2: In no circumstances, the duration of the internship shall be more than two years. Benefits Stipend- ₹ 30,000/- per month. Laptop Connectivity and Mobility Support- ₹ 2500/- shall be paid to each intern per month. Leaves- Every intern will be eligible for one casual leave every month on an accrual basis. Such leaves shall be provided in a cumulative manner i.e. 12 leaves for the entire year (from January to December) Eligibility General The age of the applicant should be between 21 years and 30 years. The applicant should have excellent communication/presentation/intra–personal skills/soft skills. The applicant should have good Knowledge of English as well as Hindi language (Reading, Speaking, Writing and Understanding) The applicant should have well-versed ICT skills and knowledge of MS Office and other similar programs on alternative platforms. It is mandatory for all the interns to have their own Laptop and data card/internet facility. Education Specific The applicant should have a post-graduate qualification with a minimum of 60% marks or a CGPA of 6 on a scale of 10 in any stream from a recognized university. The graduate applicant of Engineering/Medical/Law/CA/CS Streams from a recognized University with a minimum 60% mark or a CGPA of 6 on a scale of 10 shall also be eligible for this internship. Reservation / Preference / Priority The applicant with working experience in the field of his/her choice of department shall be given priority. NOTE 1: Any other additional educational and/or technical qualifications and experience shall be as per the special requirements submitted by the concerned department/district collector/divisional HQ, if any.NOTE 2: In case of any dispute, the decision of the Secretary-in-charge of, Statistics Department will be binding and final. Documents Required Photograph Letter of Intent (in Hindi or English) Domicile Certificate of the state of Rajasthan Proof of Age (Birth Certificate or Marksheet of Class 10th) Proof of Educational Qualification (Passing Certificate / Marksheet) Proof of Experience Details of Bank Account Application Process Applications will be invited from eligible candidates through the online application platform in the Rajasthan Single Sign-On (SSO) Portal. [SSO Portal > SSO Login > Citizen Apps (G2C) > Young Interns Program] Scrutiny and Interview The departments shall constitute a selection committee of not less than three members including the chairperson. The mentor shall be the chairperson of the committee. All the applications shall be downloaded and scrutinized by the respective departments. The applicants found eligible shall be invited for Group Discussion and Personal Interviews (G.D. & P.I.) by the selection committee of the department. The interviews will be conducted by a board of three members not below the rank of Joint Secretary/Joint Director. Selection and Allotment The selection process for 227 young interns (on the basis of Intent Write-Up, G.D. & P.I.) shall be completed at the level of respective departments. The selection of the interns shall be on the basis of the following criteria a) Intent Write-Up: 50 marks b) Group Discussion (G.D.): 50 marks c) Personal Interview (P.I.): 100 marks 3. A composite merit list of 1.25 times the actual requirement shall be declared. NOTE: 25% of the actual requirement shall be kept as a waiting list that can be activated if an intern leaves the internship within two months of the commencement of the internship. FAQs How Is This Internship Program Mutually Beneficial To The Government As Well As The Interns? The program is mutually beneficial to the government as well as the interns as: 1. The Government is benefitted by infusing novelty and innovation in the project implementation and service delivery system through the youthful and courageous ideas & techniques of the young interns. 2. The Interns are benefitted by attaining knowledge of project implementation and the ecosystem of the government functionalities. How Many Interns Are Expected To Be Deployed In FY 2023-24? 30 Interns are expected to be deployed in FY 2023-24.

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Indian Subsidiary

learn / Shruti / September 10, 2024

Starting a subsidiary company in India can be a great way to expand your business and tap into new marketsA subsidiary company is a company whose control lies with another company. The company that holds the control is termed as a Parent Company or Holding Company. The Holding company owns a majority of the shares of the subsidiary company, and hence it can exercise control as the major shareholder. The holding company holds an interest in the subsidiary company. The company in which the holding company holds 100% share capital is termed as a wholly-owned subsidiary. The subsidiary company can be either established or acquired by the holding company. Subsidiary Company As per Section 2 (87) of the Companies Act 2013, a subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company: (i) controls the composition of the Board of Directors; or (ii) exercises or controls more than one-half of the total share capital Either at its own or together with one or more of its subsidiary companies:Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed. Explanation- For the purposes of this clause— (a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company; (b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors; (c) the expression “company” includes any body corporate; (d) “layer” in relation to a holding company means its subsidiary or subsidiaries. The above definition includes all the below mentioned types of holdings: Company A holds more than 50% of the share capital in Company B. Company A holds the power to appoint or remove the majority of the directors of Company B. Company A holds more than 50 % share capital in Company B; Company B holds more than 50% share capital in Company C, then Company A is Holding company to both B and C. Company X holds rights to modify the structure of directorship of Company Y; Company Y holds similar rights in company Z, then company X is the parent company to both Y and Z. Types of Subsidiaries in India Wholly-Owned Subsidiary- In a wholly-owned subsidiary, the parent company possesses 100% ownership of the subsidiary’s shares. However, it’s important to note that wholly-owned subsidiaries can only be established in sectors that permit 100% Foreign Direct Investment (FDI). Subsidiary Company- In this category of subsidiary, the parent company owns 50% of the subsidiary’s shares. Before proceeding with establishing a foreign subsidiary company in india, obtaining approval from the Reserve Bank of India is a crucial prerequisite. This regulatory step ensures compliance with the country’s foreign investment regulations and safeguards the interests of all stakeholders involved. Registration of a Subsidiary Company Application in the prescribed form: SPICe+ Form, which is an integrated form for the reservation of name and other services, is to be filled for the registration of subsidiary companies.SPICe+ form has two parts: – Part A – Name Reservation (New Companies) Part B: 1. Incorporation of Company 2. Application For DIN 3. PAN and TAN Application 4. EPFO and ESIC Registration 5. GSTIN Application 6. Bank Account Opening 7. Professional Tax Registration(Applicable to Companies in Maharashtra) Document upload a. Company Related – Memorandum of Association and Articles of Association – Proof of Address of registered place of Business that is if the rented property, then rent agreement and if the owned property then copy of ownership documents – Copy of Utility Bills – Copy of resolution passed by the promoter company – Capital Layout of company – Copy of certificate of incorporation in case of foreign corporate b. Directors and Shareholders Related – Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors and designated shareholders – Proof of identity and address for Directors and Shareholders – Photographs of Directors and Shareholders – The interest of first directors in other entities. – Declaration by Directors and Shareholders Advantages of Indian Subsidiary Company Entry into the Indian Market- India’s competitive environment offers a plethora of investment opportunities that attract foreign entrepreneurs to establish their subsidiary companies in the country. Foreign Direct Investment (FDI) in India- FDI involves investments by foreign companies in Indian private companies through share subscriptions or acquisitions. In 2020, the Indian government introduced a provision requiring prior approval for investments from countries sharing a border with India, making Indian subsidiary registration an attractive option for foreign investors. Perpetual Succession- The concept of perpetual succession ensures that a company’s existence remains intact regardless of events like changes in management, transfers of membership, or insolvency. The company continues to operate seamlessly, providing stability and continuity. Limited Liability- Limited liability is a significant advantage that encourages individuals to opt for company formation over other business structures. This principle extends to Indian subsidiary companies, protecting the personal assets of shareholders and directors. The company bears responsibility for its debts to third parties, shielding the personal assets of its stakeholders. Scope of Diversification- Establishing an Indian subsidiary company provides a strategic avenue for foreign businesses to expand their operations. This contributes to the growth and development of the Indian economy and introduces a wide range of goods and services, fostering healthy competition. Separate Legal Identity- According to the Companies Act, a company is recognized as a distinct legal entity separate from its shareholders and directors. This legal status empowers the company to engage in agreements with other competent entities as an artificial legal person. It also grants the company the ability to initiate legal actions and respond to allegations before the judicial system in its own name, without direct involvement from its members or directors. Property Ownership and Rental- A subsidiary company, being a legal

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Appointment of KMP in a Company : Section 203 of the Companies Act, 2013

learn / Shruti / September 10, 2024

Recently, the National Company Law Appellate Tribunal, New Delhi (“NCLAT”) passed a judgment dealing with the provisions of Section 203 of the Companies Act, 2013 (“Act”). The appellants, i.e. the Hamlin Trust, and others (“Appellants”) are shareholders of Rattan India Finance Private Limited (“Company”) holding 50% of the share capital of the Company. LSFIO Rose Investments S.a.r.l., a company incorporated under the laws of Luxembourg (“Respondent”) also acquired the 50% share capital of the Company. In terms of the Articles of Association (“AoA”) of the Company, the Respondent had a right to nominate a person to the position of chief financial officer of the Company (“CFO”). In the event the other shareholders, i.e., Respondent reject the appointment of such nominee to the position of CFO, Appellants shall have the right to nominate another person to the position of CFO. Further, in the event the Respondents reject the appointment of the second such person nominated by Appellants to the position of the CFO or at least (forty-five) days have passed since the position of CFO was vacated (whichever is earlier), Appellants shall have the right to nominate any person to the position of CFO and the Respondent shall support the appointment of such person as CFO. Definition of KMP Under the Companies Act, 2013 Section 2(51) of the Act defines Key Managerial Personnel (KMP). It states that the KMP of a company means: Chief Executive Officer, manager or Managing Director Company secretary Whole-Time Director Chief Financial Officer Such other officers, designated by the Board as KMP but are not more than one level below the directors in whole-time employment Such other officer as may be prescribed Chief Executive Officer, Manager or Managing Director The Chief Executive Officer and Managing Director are responsible for running the company. The Managing Director has authority over all company operations. They are also responsible for growing and innovating the company to a larger scale. Under the Act, the Managing Director is defined as a director having substantial powers over the company management and its affairs. A Managing Director is appointed through any of the following means: By the Articles of Association An agreement with the company A resolution passed in a general meeting By the company board of directors The Act defines a manager as the individual who manages the whole company affairs, subject to the board of directors’ direction, control and superintendence. A manager also includes a director or a person occupying a manager position in a company, even under a contract of service. However, a company cannot appoint a managing director and a manager at the same time. Company Secretary A company secretary is responsible for looking after the efficient administration of the company. They take care of the company’s compliance and regulatory requirements. They also ensure that the instructions and targets of the board are implemented. As per the Act, a company secretary or secretary means a company secretary defined under Section 2 of the Company Secretaries Act, 1980. The Company Secretaries Act defines a Company Secretary as a person who is a member of the Institute of Company Secretaries of India (ICSI). The company secretary should ensure that the company complies with secretarial standards. Whole-Time Director Under the Act, a Whole-Time Director is defined as a director who is in whole-time employment of the company. A Whole-Time Director means a director who works during the entire working hours of the company. They are different from an independent director as they are part of the daily operation and has a significant stake in the company. A Managing Director can also be a Whole-Time Director. Chief Financial Officer A Chief Financial Officer is responsible for handling the company’s financial status. They keep a tab on cash flow operations, create contingency plans for financial crises and do financial planning. They lead the treasury and financial functions of the company. Companies Required to Appoint KMP Section 203 of the Act provides that certain classes of companies must appoint the KMP, which includes the Managing Director or manager or Chief Executive Officer, company secretary and Chief Financial Officer. The company must appoint a whole-time director if it does not have a Chief Executive Officer, manager or Managing Director. Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 provides the class of companies that must appoint the whole-time KMP, which are as follows: Every listed company A public company having a paid-up share capital of Rs.10 crore or more Further, a private company having a paid-up share capital of Rs.10 crore or more must appoint a whole-time company secretary. Every whole-time KMP is appointed through a resolution of the board containing the conditions and terms of appointment, including remuneration. A whole-time KMP must not simultaneously hold office in more than one company except its subsidiary company. The board is responsible for filling the vacancies in the post of KMP within six months of the vacancy. A company can appoint or re-appoint a person as its managing director, whole-time director or manager for a maximum of five years. Roles and Responsibility of KMP The KMPs will be liable for non-compliance of the provisions provided under the Companies Act,2013. The management functions and the decisions of the company are the responsibility of the KMPs. As per section 170,detailed information of securities will be provided by KMPs and recorded in the register of the company. In the audit committee, the right to heard will be provided to KMPs while considering the audit report. But they don’t have the right to vote. AS per section 189(2), KMPs will disclose all their concerns and interest within 30 days of their appointment. Disqualifications for being KMP Section 196(3) of the Companies Act,2013 states that a company shall not appoint or continue the employment of a managing director, whole-time director, or manager if such person: Not completed age of 21years or exceeds the age of 69 years. Is an uncharged insolvent or adjudged as an insolvent. Record of holding payments from creditors. Convicted

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National Savings Certificate

Business / Shruti / September 10, 2024

The National Savings Certificate (NSC) is a secure investment option provided by the Government of India through post offices. It offers reliable returns and significant tax benefits under Section 80C of the Income Tax Act, making it a popular choice among risk-averse investors. A Government of India initiative, the National Savings Certificate (NSC) is a fixed-income investment scheme that you can open easily with any post office. What is National Savings Certificate The National Savings Certificate (NSC) is a fixed-income investment scheme that you can open with any post office branch. This is an initiative by the Government of India and encourages subscribers – mainly small to mid-income investors – to invest while saving and also saving on income tax. National Savings Certificate is a savings bond scheme that encourages subscribers, primarily small to mid-income investors, to invest while saving on income tax under Section 80C. Features & Benefits of NSC Here are some of the significant features of NSC scheme- Interest Rates : The certificates earn an annual fixed interest, which is revised every quarter by the government, thus guaranteeing a regular income for the investor. Maturity Period : The scheme originally had two types of certificates – NSC VIII Issue (5 year tenure) and NSC IX Issue (10 year tenure). With the discontinuation of the latter in December 2015, only the former issue is available for subscription. Tax Saver: As a government-backed tax-saving scheme, the principal invested in NSC qualifies for tax savings under Section 80C of the Income Tax Act up to Rs. 1.5 lakhs annually. Investment Flexibility : You can invest as small as Rs. 100 as an initial investment with no maximum limit. Accessible: It can be easily bought from any post office on submission of required KYC documents. Also, it is easy to transfer the certificate from one PO to another as well as from one person to another without impacting the interest accrual/maturity of the original certificate. Loan Collaterals: NSC certificates are accepted as collateral or security for secured loans in Banks and NBFCs. In such a case, a transfer stamp is put on the certificate and transferred to the bank while disbursing loans. Power of Compounding: Interest earned gets compounded annually and reinvested by default but will be payable only at maturity. Nomination: The investor can nominate any family member (even a minor) so that they can inherit it in the case of an unfortunate event of the investor’s demise. Corpus on Maturity: The investor will receive the entire corpus value on maturity. As there is no TDS on NSC payouts, the subscriber should pay the applicable tax on it while filing his Income tax returns or paying his advance tax. Premature Withdrawal: Generally, one cannot exit the scheme early except on the death of an investor, on a court order, or on forfeiture by a pledgee who is a Gazetted Government Officer for it. NSC Interest Rate History Financial Year April-June July-September October-December January-March 2023-2024 7.7% 7.7% 7.7% 7.7% 2022-2023 6.8% 6.8% 6.8% 7.0% 2021-2022 6.8% 6.8% 6.8% 6.8% 2020-2021 6.8% 6.8% 6.8% 6.8% 2019-2020 8.0% 7.9% 7.9% 7.9% 2018-2019 7.6% 7.6% 8.0% 8.0% 2017-2018 7.9% 7.8% 7.8% 7.6% 2016-2017 8.1% 8.1% 8.0% 8.0% Tax Benefits of NSC Investment While there is no upper limit on the amount that can be invested in NSC, only investments of up to Rs.1.5 lakh a year can earn a subscriber a tax deduction under Section 80C of the Income Tax Act of 1961. Furthermore, the interest earned on the certificates is also added back to the initial investment and qualify for a tax break as well. Furthermore, for the first four years, the interest gained on NSC is assumed to be reinvested (i.e. put back to the initial investment) and so eligible for a tax credit, subject to the overall annual limit of 1.5 lakh. The interest earned in the fifth year, however, is not re-invested and is thus taxed at the investor’s applicable slab rate. Who Should Invest in NSC? The NSC offers guaranteed interest and complete capital protection, just like some other fixed income instruments – Public Provident Fund and Post Office FDs. However, they cannot deliver inflation-beating returns like tax saving Mutual Funds and National Pension Systems. Basically, the Government has promoted the National Savings Certificate as a savings scheme for Indian individual citizens. Eligibility Criteria for NSC Hindu Undivided Families (HUFs), Trusts, Private and public limited companies are not eligible to invest in NSC. The individual must be an Indian citizen. Non-resident Indians (NRIs) are not eligible to invest in NSC. There is no age limit for individuals in order to purchase a certificate. Documents Required to Apply for NSC Investors are required to submit: Identity proof, such as a passport, permanent account number (PAN) card, driver’s license, senior citizen ID, or any other official government identification Photograph. Address proof, like electricity bill, passport, phone bill, or bank statement How to Invest in NSC To invest in NSC offline, follow the listed steps: Step 1: Collect the NSC application form online or at any post office. Step 2: Fill out the form with all the details. Step 3: Submit the form with self-attested copies of the required KYC documents. Step 4: Take the original documents for verification and pay the amount you want to invest. Step 5: Upon approval, collect the NSC of your application. How to Apply for NSC Online Step 1: Open Department of Posts (DOP) net banking and log in. Step 2: Under ‘General Services’, select ‘Service Requests’. Step 3: Click on ‘New Requests’ and choose ‘NSC Account – Open an NSC Account (For NSC)’. Step 4: Enter the deposit amount and choose the debit account linked to the PO savings account. Step 5: Choose ‘Click Here’ to run through the terms and conditions. Accept them once done. Step 6: Enter the transaction password and click on ‘Submit’. Step 7: The deposit receipt will be there to view and download. Step 8: Login and click on ‘Accounts’ to view the details of your NSC account. FAQs Is NSC Interest Taxable? NSC Interest is taxable under “Income from Other Sources”. Though, in the initial 4 years, interest is reinvested and, thus, can be claimed

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Raj Udyog Mitra Act

Government Schemes / Shruti / September 10, 2024

Rajasthan Udyog Mitra Portal has been started on 12th June to give benefits to the entrepreneurs of the state through the Rajasthan Government . Under which the main objective behind starting this scheme has been stated by the government that the youth of the state will be helped in setting up business, and through this Rajasthan Udyog Mitra Portal, unemployed people will be helped in getting employment. After applying to the people of the state on this portal, the applicant will get a certificate. Through Rajasthan Udyog Mitra Portal 2024, the Rajasthan government will get help to set up business, and the people of the state will not have to worry about starting their business due to Rajasthan Udyog Mitra Portal, Overview of Rajasthan Udyog Mitra Portal Name of the portal Rajasthan Industry Friend Portal year 2024 was started Rajasthan Government Beneficiary Citizens of Rajasthan Objective Encouraging Entrepreneurs Benefit Help to unemployed youth in getting employment Category Rajasthan Government Schemes official website Silent Features The newly registered enterprise will be given a rebate of up to 3 years under the Inspection Law by all the State governments. In addition, no prior approval is required under any state law for the establishment and operation of MSME. It ensures the promotion of new businesses in the State, which will also help with unemployment. When starting a new venture, the new enterprises can easily make the online registration at this portal and will receive the digitally signed Acknowledgment Certificate as the confirmation receipt. The authorized officer in the State Level Nodal Agency (Bureau of Investment Promotion) will issue the acknowledgment certificate. Its validity period is three years from the date of issuance. The company will be exempted from approvals and inspections under any Rajasthan law. The verification process will be done by scanning the QR Code available on the acknowledgment certificate. The company cannot change the name, type of organization, and location of manufacturing or service activity of the enterprise. The enterprise can click on update or edit and can edit the details of the Declaration of Intent. The new acknowledgment certificate with updated information will be generated. Objective of Rajasthan Udyog Mitra Portal The main objective of starting Udyog Mitra Portal Rajasthan by the Government of Rajasthan is that people have to face a lot of difficulties due to unemployment in the state, keeping this in mind, this portal has been started for entrepreneurs, so that all of them can become self-reliant to establish their own employment. The unemployed people of the state can be given employment and it can be done successfully. After applying on this portal, the applicant of the state will get approval and inspection by all the laws of Rajasthan for 3 years. The people of Rajasthan are eager to establish their industry. Eligibility to apply on Rajasthan Udyog Mitra Portal All the startups which are started after 4th March 2019 can apply through this scheme. The benefit of Rajasthan Udyog Mitra Portal will be available only to new industries established after March 4. Under Rajasthan Udyog Mitra Portal 2024, all those industries of the state will be able to apply, which do micro, small and medium sized business as per MSMED 2006. Rajasthan Udyog Mitra Portal 2024 Required Documents Aadhar card Bank account statement Mobile Number Address proof Age Certificate Passport size photograph Rajasthan Udyog Mitra Portal Registration Procedure Step 1: The applicant must go to Raj Udyog Mitra’s official portal for registration under the MSME Ordinance. Step 2: Click on the “sign-in” menu, which is displayed on the portal’s webpage. Step 3: The applicant will be redirected to the Rajasthan SSID portal registration page. Step 4: The applicant will have to choose the appropriate option. Step 5: After the successful registration, the applicant will receive the Digital Identity (SSO ID or Username). Step 6: The applicant can enter the login credentials (ID and password) and be able to log in to SSO. Step 7: Now, the entrepreneurs and existing enterprises who want to establish a new MSMEs enterprise have to submit the Declaration of Intent. Step 8: On filing all the Declaration forms, you will get a digitally signed Acknowledgment Certificate for confirmation of receipt of the Declaration of Intent. FAQs What is the Raj Udyog Mitra Act? The Raj Udyog Mitra Act is a state-level legislation in Rajasthan that aims to streamline the process of setting up and running businesses in the state. It focuses on improving the ease of doing business by creating a single-window system for approvals, clearances, and support for industrial projects. What is the purpose of the Raj Udyog Mitra Act? The primary purpose of the Raj Udyog Mitra Act is to simplify the regulatory framework for industries in Rajasthan by reducing procedural delays, offering better coordination among government departments, and providing quicker approvals for industrial projects.

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How to get Nabard Subsidy for Dairy Farming

learn / Shruti / September 10, 2024

NABARD is a development financial institution in India that manages credit-related concerns like planning, policy, and operations for agriculture and rural undertakings. National Bank for Agriculture and Rural Development (NABARD) offers funds and credit facilities for agriculture-related activities and rural development. Its prime focus area is the growth and development of rural areas nationwide. NABARD works around three main areas that include finance, development, and supervision of the agriculture sector. Dairy Farming Scheme – The Prime Minister Animal Husbandry Scheme is a central government scheme. The main objective of the scheme is to promote dairy farming in India and to make it a viable and sustainable livelihood option for small and marginal farmers. The Prime Minister Animal Husbandry Scheme provides financial assistance to eligible farmers for the purchase of dairy cattle, construction of sheds and other infrastructure, and training. Under the scheme, each eligible farmer will be provided with a subsidy of up to ₹2 lakhs for the purchase of two dairy cows or buffaloes. In addition, a subsidy of ₹1 lakh will be provided for the construction of a shed and other infrastructure, and ₹50,000 for training. The total outlay for the scheme is ₹500 crores. The scheme is open to all Indian citizens who are small and marginal farmers with less than 2 hectares (5 acres) of landholding. Farmers can apply for the scheme through the online portal of the National Dairy Development Board (NDDB). Dairy Farming Plan Dairy farming is an important part of the agricultural sector in India. According to recent reports, the country has the world’s largest cattle population with 178 million cows and buffaloes. In order to increase milk production and improve the livelihoods of smallholder farmers, the National Bank for Agriculture and Rural Development (NABARD) has launched a new scheme called the Dairy Farming Plan. Under this scheme, NABARD will provide financial assistance to state governments and dairy cooperatives for the construction of new dairy plants and the upgrading of existing ones. The aim is to help India achieve self-sufficiency in milk production by. In addition, NABARD will also set up a ₹5,000 crore Dairy Infrastructure Fund to finance projects such as the construction of milking parlors, storage facilities, and chilling units. The scheme is expected to benefit 3 million smallholder farmers and create employment opportunities for 1.5 million people. NABARD Subsidy for Dairy To promote setting up of modern dairy farms for the production of clean milk To encourage heifer calf rearing thereby conserve good breeding stock To bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level itself. To bring about up-gradation of quality and traditional technology to handle milk on a commercial scale To generate self-employment and provide infrastructure mainly for unorganized sector. NABARD Dairy Farming Subsidy Eligibility The following types of persons and association of persons are eligible for receiving the NABARD Dairy Farming Subsidy: Farmers Individual Entrepreneurs NGOs Companies Groups of unorganized and organized sector etc. Groups of the organized sector include Self Help Groups, Dairy Cooperative Societies, Milk Unions, Milk Federations, etc. However, an individual will be eligible to avail the dairy subsidy for all the components under the scheme but only once for each component. Further, if more than one member of a family must avail the dairy farming subsidy, they must set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m. Beneficiaries of Dairy Farming Scheme Eligible beneficiaries include small and marginal farmers, landless laborers, women farmers, and members of scheduled castes/scheduled tribes. Farmers can avail up to 90% loan amount as subsidy from NABARD. The interest rate on the loan is 4% per annum. The maximum loan amount under the scheme is ₹3 lakhs. The repayment period is 5 years with a grace period of 1 year. NABARD also provides insurance cover for livestock purchased under the scheme. Loan Giving Institutions Under Dairy Farming Scheme Loan giving institutions under Dairy Farming Scheme are as follows:- The Rural Development Banking and Finance Corporation (RBFC) The National Cooperative Development Corporation (NCDC) The Agriculture and Rural Development Bank (ARDB) NABARD Dairy Farming Subsidy Schemes Type: Establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc / graded buffaloes up to 10 animals. Investment: Rs 5.00 lakh for 10 animal unit – minimum unit size is 2 animals with an upper limit of 10 animals. Subsidy: 25% of the outlay (33 .33 % for SC / ST farmers, ) as back-ended capital subsidy subject to a ceiling of Rs 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for SC/ST farmers,). A maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. The subsidy shall be restricted on a pro-rata basis depending on the unit size. Type: Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves. Investment: Rs 4.80 lakh for 20 calf unit – the minimum unit size of 5 calves with an upper limit of 20 calves. Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for SC/ST farmers). A maximum permissible capital subsidy is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf unit. The subsidy shall be restricted on a pro-rata basis depending on the unit size. Type: Vericompost (with a milch animal unit .To be considered with milch animals and not separately ). Investment: Rs. 20,000/- Subsidy: 25% of the outlay (33.33 % for SC / ST farmers)as back-ended capital subsidy subject to a ceiling of Rs 5,000/- ( Rs 6700/- for SC/ST farmers,). Type: Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity). Investment: Rs 18 lakh. Subsidy: 25% of the outlay

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GST Registration

Goods & Service Tax / Shruti / September 10, 2024

Under Goods And Services Tax (GST), businesses whose turnover exceeds the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be, must register as a normal taxable person. It is called GST registration. For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it is an offence under GST and heavy penalties will apply. GST registration usually takes between 2-6 working days. Overview GST Registration online Since its introduction on 1 July 2017, the Goods & Services Tax (GST) has been mandatory for all service providers, traders, manufacturers, and even freelancers in India. The GST system was implemented to replace Central and state-level taxes such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT, making the tax process more streamlined. The GST registration charges vary depending on the type of business and turnover. For those taxpayers whose annual turnover is less than 1.5 crore, the GST framework provides an option for a composition scheme. This scheme allows them to undergo simplified GST procedures and pay taxes at a predetermined rate according to their turnover. The GST mechanism operates throughout various stages of the supply chain. This includes acquiring raw materials, production, wholesale, retail, and the eventual sale to the end consumer. Notably, GST is imposed at every one of these steps. For example, when a product is produced in West Bengal and then used in Uttar Pradesh, the GST revenue generated is allocated entirely to Uttar Pradesh, emphasizing the consumption-based nature of GST. Who should obtain the GST registration? Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.) Businesses with turnover above the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be Casual taxable person / Non-Resident taxable person Agents of a supplier & Input service distributor Those paying tax under the reverse charge mechanism A person who supplies via an e-commerce aggregator Every e-commerce aggregator Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person Key Components of GST Registration Central Goods and Services Tax (CGST): This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state. State Goods and Services Tax (SGST): SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state. Integrated Goods and Services Tax (IGST): This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries. GST Registration Turnover Limit Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs. Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions: Should not be providing any services. The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand. Should not be involved in the supply of ice cream, pan masala or tobacco. If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states. Special Category States: Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies)*(Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies). Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover Advantages of GST Registration for Businesses Legal Compliance: Ensures that businesses remain compliant with tax regulations, thus avoiding any potential penalties. Input Tax Credit: Businesses can claim credits for the GST they’ve paid on purchases, which can then be set off against the GST charged on sales, leading to a reduction in tax liability. Inter-State Trade Ease: Encourages businesses to transact across state boundaries without facing tax-related challenges. Elimination of Cascading Effect: By removing the effect of tax being levied on an already taxed amount, the overall cost of products or services is reduced. Competitive Edge: Being GST compliant can instil trust in potential customers, opening up more business opportunities. Access to Larger Markets: Major corporations often prefer collaborating with GST-registered vendors. Optimized Cash Flow: Efficient management and lower tax liability can enhance the cash flow within a business. Enhanced Credit Rating: Maintaining a consistent and positive GST compliance record can boost a business’s credit profile. Legal Safeguard: A GST registration protects businesses and ensures their rights are upheld. Simplified Compliance: The GST process is streamlined, enabling businesses to file returns and make payments online easily. Transparent Operations: Ensures businesses maintain accurate records, promoting a sense of trustworthiness and professionalism. GST Registration Documents Requirements Sole proprietor / Individual PAN card of the owner Aadhar card of the owner Photograph of the owner (in JPEG format, maximum size 100 KB) Bank account details* Address proof** LLP and Partnership Firms PAN card of all partners (including managing partner and authorized signatory) Copy of partnership deed Photograph of all partners and authorised signatories (in JPEG format, maximum size

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What is the Difference Between Cgst and Sgst

Goods & Service Tax / Shruti / September 10, 2024

The Goods and Services Tax, sometimes known as the GST, is a tax that was recently added to the Indian tax system and is assessed on the delivery of goods and services. GST Registration is necessary for the proper operation of the firm. It takes about 3-6 working days to obtain GST Registration. Any company that operates without GST is breaking the law and faces consequences. The central government would collect the CGST or SGST based on the transaction under the GST statute. Both CGST and SGST are collected when a supply of goods or services occurs within the state; this type of transaction is referred to as an intrastate transaction. What is the Goods & Services Tax? The Goods and Services Tax (GST) is a comprehensive tax that is levied on the supply of goods and services. It is a dual-level tax system, comprising the Central GST (CGST) and State GST (SGST). It has replaced the multiple taxes previously levied by the Central and State Governments of India.Some of the biggest benefits of GST for all kinds of industries and businesses have been: What is the Central Goods and Services Tax (CGST)? The Indian government imposes the Central Goods and Services Tax on all transactions involving products and services within the state. It is a tax imposed on all transactions that take place within the state. The CGST has taken the place of all previous central taxes, including the central excise charge, service tax, and customs duty. Both taxes are imposed based on the commodities, and the rates for the CGST and SGST are the same. Illustration: A has to pay two taxes if he wants to sell a product to B, who lives in the same state. The SGST rate will be 9% in addition to the 9% CGST rate. GST is not collected on products consumed in the state in which they are produced. The manufacturing tax levied by the state is then transferred to the consuming state by the union government. Calculation of CGST You are a business owner and you charge ₹12,000 for a product. Given that the product’s GST rate is 18%, the total GST comes to ₹2,160 (18% of ₹12,000). Half of the total GST for sales within the state is made up of the CGST and SGST (State GST). Hence, half of ₹2,160, or ₹1,080 (9% of ₹12,000), is the CGST. What is the State Goods and Services Tax (SGST)? The state goods and services tax, or SGST for short, is one of two taxes imposed on intrastate sales of goods and services. The state in which the items are bought and sold is subject to SGST. The current state taxes, such as the VAT, sales tax, entertainment tax, luxury tax, entry tax, state cess, and surcharge on any form of transaction involving goods and services, would be replaced by this new one. The only entity that designs the revenue obtained under the SGST is the state government. Illustration: Goods sold by Arun from Uttar Pradesh to Lakshay from Uttar Pradesh will be subject to 18% GST, which also includes 9% CGST and 9% SGST Calculation of SGST Assume you run a bakery in Delhi and you charge a customer in the same state ₹10,000 for a cake. Cake is subject to a 5% GST rate, which comprises both SGST and Central GST (CGST). The SGST rate in this scenario would be 2.5%, or half of the 5% overall GST rate. Thus, in this transaction, you would charge the client ₹250 for SGST, which would be collected by the state government. What is the difference between CGST and SGST? Difference CGST GST Meaning The Central Goods and Service tax under GST has replaced the existing tax services tax, excise tax, etc. SGST means the state goods and service tax that has replaces the existing tax like the sales tax, luxury tax, etc. This tax is levied by the state government. Collected by Central Government State Government Benefiting authorities Central Government State Government Applicable on transaction Intrastate (Within the state) Intrastate (Within the state) Registration No registration, until the turnover, is exceeding Rs.20 lakh (For northeastern states it is Rs.10 lakh) No registration, until the turnover, is exceeding Rs.20 lakh (For northeastern states it is Rs.10 lakh) Composition scheme The dealer can use the benefits up to Rs.75 lakh under the composition scheme The dealer can use the benefits up to Rs.75 lakh under the composition scheme FAQs What kind of tax is GST? The majority of products and services supplied for domestic use are subject to an indirect tax known as the products and Services Tax (GST). What are the benefits of getting GST registration? Obtaining GST registration has several advantages, including unrestricted interstate sales and the ability to claim the input tax credit. For small firms, a composition plan is an additional option that offers reduced tax liability, increased working capital, and fewer compliances. The GST tax system has significantly lessened cascading.

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Gst Law Goods and Services Tax

Goods & Service Tax / Shruti / September 10, 2024

The structure of indirect taxes in India up to 30-6-2017 was based on three lists in the Seventh Schedule of the Constitution of India, which came into effect on 26-1-1950. These provisions were based on the situation prevailing in 1935 and were based on the Government of India Act, 1935. Due to changes in the functioning of society, this structure had become outdated. Most of the countries have moved towards the common tax structure long ago. However, for India, GST is the tax for the twenty-first century. The foundation of GST in the country was laid down in the Budget Speech of 28th February 2006 by the then Finance Minister. Since then, there has been a constant endeavor for the introduction of the GST in the country whose culmination has been the introduction of the Constitution (122nd Amendment) Bill in December 2014. What is GST? The full form of GST is Goods and Services Tax. It was first introduced in the Budget Speech presented on 28th February 2006. It laid the foundation for a complete reform of India’s indirect tax system. Finally implemented on 1st July 2017 as the Goods and Services Tax Act, the indirect taxation system thus went through a chain of amendments since its inception. With this tax reform, GST replaced multiple indirect taxes that were levied on different goods and services. The Central Board of Indirect Taxes and Customs (CBIC) is the regulatory body governing all changes and amendments regarding this tax. GST Meaning and Scope GST definition is easy to decode. It is a destination-based, multi-stage, comprehensive tax levied at each stage of value addition. Having replaced multiple indirect taxes in the country, it has successfully helped the Indian Government achieve its ‘One Nation One Tax’ agenda. The tax is levied on goods and services sold within India’s domestic boundary for consumption. Implemented by a majority of nations worldwide with respective customisations, the tax has been successful in simplifying the indirect taxation structure of India. GST is levied on the final market price of goods and services manufactured internally, thereby reflecting the maximum retail price. Customers are required to pay this tax on a purchase of goods or services as an inclusion in their final price. Collected by the seller, it is then required to be paid to the government, thus implying the indirect incidence. The GST rates on different goods and services are uniformly applied across the country. Goods and services have, however, been categorised under different slab rates for tax payment. While luxury and comfort goods are categorised under higher slabs, necessities have been included in lower and nil slab rates. The main aim of this classification is to ensure the uniform distribution of wealth among residents of India. History of GST and GST Information Back in 2000, the then Prime Minister of India introduced the concept of Goods and Services Tax. He also formed a committee to draft new indirect tax law. It, however, took 17 more years for its implementation. Meanwhile, the bill went through multiple introductions, amendments and rescheduling. 2000 – Committee set up by the PM for drafting Goods and Service Tax law for India. 2004 – A task force reported a need to implement this law and improve the indirect tax system in India. 2006 – Goods and Services Tax introduction scheduled on 1st April 2010 by the Finance Minister of India. 2007 – Decision to phase out Central Sales Tax (CST). Consequently, CST rates were reduced to 3% from 4%. 2008 – GST’s dual structure was finalised by the EC for separate legislation and levy. 2010 – Postponement of GST introduction due to structural and implementation hurdles. A project launched for the computerisation of commercial taxes. 2011 – Introduction of Constitution Amendment Bill for enabling the Goods and Services Tax Law. 2012 – Discussion regarding the tax initiated by the Standing Committee; stalled due to lack of clarity regarding Clause 279B. 2013 – GST’s report presented by the Standing Committee. 2014 – The Finance Minister of India reintroduces the Goods and Services Tax Bill to Parliament. 2015 – The Lok Sabha clears the bill, but it is stalled in the Rajya Sabha. 2016 – Goods and Services Tax Network (GSTN) went live. The law’s amended model passed in both Houses of Parliament and received a nod from the President of India. 2017 – The Cabinet approves four supplementary bills on GST cleared by the Lok Sabha and the Rajya Sabha. The Goods and Services Tax Law was implemented on 1st July 2017. List of Taxes Subsumed after GST Implementation Good service tax was introduced as a comprehensive indirect tax structure. With this introduction, the government aimed to consolidate all indirect taxes levied under one umbrella. Thus, except for customs duty that is levied on the import of goods, Goods and Services Tax replaced multiple indirect taxes. This introduction helped overcome the limitations of its previous indirect tax structure regarding implementation and inefficiency in the collection process. Following is the list of indirect taxes that were subsumed by Goods and Service Tax- Indirect Taxes Imposed by the Central Government Central Sales Tax Service Tax Central Excise Duty Excise Duty (Additional) Countervailing Duty or Additional Customs Duty Special Additional Customs Duties Indirect Taxes Imposed by the State Government State VAT Entry Tax and Octroi Duty Luxury Tax Amusement and Entertainment Tax Taxes on Advertisements Goods and services related to cess and surcharges Purchase Tax Tax on betting, lottery and gambling. Objectives of GST The key objectives of GST are- ‘One Nation, One Tax’ GST took the place of many indirect taxes that existed before. It was introduced with a core motive and policy called the ‘One Nation, One Tax’. It was introduced as so to provide set tax rates for a service/product that every state would follow. It even simplified administering taxes and compliances. To Subsume Indirect Taxes in India To create a centralised and unified tax system on goods and services, GST was introduced in India. Under its laws, the majority of indirect taxes were subsumed into one to simplify administration. To Restrain Tax Evasion Prior to the introduction of GST, the tax evasion rate was very high. In

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