Business

India’s Gross Domestic Product (GDP) benefits significantly from the substantial contributions of micro, small, and medium-sized enterprises (MSMEs). These enterprises employ over 110 million people. However, MSMEs encounter challenges and obstacles in their journey of growth and expansion. To address and support these MSMEs, the Indian government initiated a significant step on May 13, 2020, by introducing a new classification metric. Under this classification, all MSMEs in India are referred to as ‘Udyam’ and must undergo the ‘Udyam Registration‘ process. This decision received approval from the Union Cabinet, making Udyam registration mandatory for all MSMEs starting from July 1, 2020. MSME industries are the backbone of the economy. They are also known as Small Scale Industries (SSIs). The government of India provides an MSME registration to the industries classified by the government as Micro, Small and Medium Enterprises (MSME) in India. The MSME registration helps MSMEs to obtain various benefits provided by the government for their establishment and growth.  What is MSME? MSME stands for Micro, Small, and Medium Enterprises. It is a classification introduced by the Government of India following the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. These enterprises primarily produce, manufacture, process, or preserve goods and commodities. The MSME sector is crucial to India’s economy, contributing significantly to employment generation and overall economic growth. What is MSME Classification? when the government introduced the MSME registration in 2006, the MSME classification was based on the investment criteria in plant and machinery or equipment. The government revised the MSME classification by inserting annual investment and annual criteria. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed. The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding if an entity is considered as an MSME: Revised MSME Classification Criteria Micro Small Medium* Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore What is Udyam Registration/MSME Registration? Udyam Registration is an electronic certificate issued by the Indian government to Micro, Small, and Medium-sized Enterprises (MSMEs) operating in the country. It has replaced the earlier Udyog Aadhaar Memorandum (UAM) registration process. While Udyam registration is not mandatory, it offers significant benefits to MSMEs, making it advantageous for them to apply for this registration. By obtaining Udyam registration, MSMEs become eligible for various government benefits and incentives exclusively available to enterprises under the MSME category. The registration process for Udyam is entirely based on self-declaration, eliminating the need to upload any documents, papers, certificates, or proofs. Udyam Registration Number- Upon successful registration, the enterprise, referred to as “Udyam” in the Udyam Registration portal, will be allotted a unique and permanent identity number known as the “Udyam Registration Number.” Udyam Registration Certificate- After completing the registration process, an e-certificate called the “Udyam Registration Certificate” will be issued to the enterprise. This certificate serves as an official confirmation of their eligibility for government benefits and support. MSME Registration Eligibility All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities are eligible for MSME registration: Individuals, startups, business owners, and entrepreneurs Private and public limited companies Sole proprietorship Partnership firm Limited Liability Partnerships (LLPs) Self Help Groups (SHGs) Co-operative societies Trusts Benefits of Udyam Registration Access to Government Schemes: Udyam registration is a prerequisite for MSMEs to avail themselves of various government schemes and programs the Ministry of MSME offers. These schemes include the Credit Linked Capital Subsidy, Credit Guarantee, Public Procurement Policy, and more. Registering under Udyam ensures that MSMEs can tap into these initiatives and receive essential financial support and incentives. Seamless Integration: The Udyam portal seamlessly integrates with other critical government systems, such as the income tax portal, GST identification systems, and government e-marketplace. This integration streamlines various administrative processes, making it easier for MSMEs to manage their financial and tax-related affairs efficiently. Priority Sector Lending: With Udyam registration, MSMEs become eligible for priority sector lending from banks. This special lending consideration enables them to access credit facilities more efficiently and at favorable terms, further supporting their business expansion and investment plans. Extended MAT Credit: MSMEs with Udyam registration are entitled to carry forward Minimum Alternate Tax (MAT) credit for 15 years instead of the previous ten years. This extension provides them additional tax benefits, facilitating better financial planning and stability for their long-term growth. Lower Interest Rates: One of the most significant advantages of Udyam registration is the ability to secure bank loans at lower interest rates. Typically, MSMEs with Udyam registration can avail of loans as low as 1% to 1.5%, reducing their financial burden and enhancing their capacity to invest in business expansion and innovation. Documents Required for MSME Registration The MSME registration documents are as follows: Aadhaar card PAN card  PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems. GST registration is not compulsory for enterprises that do not require a GSTregistration. However, enterprises that mandatorily need to obtain GST registration under the GST law, must enter their GSTIN for obtaining the MSME Registration or Udyam Registration. How to Get Udyam Registration Online? Step 1: Visit the Udyam registration portal. Step 2: On the homepage, click the option ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II.’ Step 3: Enter the ‘Aadhaar Number’ and the ‘Name of Entrepreneur,’ then click the ‘Validate & Generate OTP’ button. Step 4: An OTP will be sent to the mobile number linked with the Aadhaar card. Enter the OTP and click on the ‘Validate’ button. Step 5: Once the Aadhaar is validated, proceed to the PAN verification page. Enter the ‘Type of Organisation’ ‘PAN’ number, and click the ‘Validate’ button. Also, indicate whether you have filed the

Employees Provident Fund (EPF) is a social security scheme for employees in India. Employers are required to comply with Employee Provident Fund (EPF) regulations and obtain PF registration on engaging 20 or more employees. To improve ease of doing business, all services relating to provident fund like PF registration, PF return filing and payment of PF contribution has been made available online through the Unified Portal. Further, all employee related services like account transfer, EPF account balance check and claims have been brought under UAN and the Unified Portal.  Universal Account Number (UAN) The Employee Provident Fund has launched the Unified Portal to streamline and simplify all aspects of provident fund for both employers and employees. Employees who have the newly allotted UAN can use the Unified Portal for various services. For an employee to access the Unified Portal, a Universal Account Number (UAN) will be required. Previously, each of the establishment having PF registration used to issue an unique id to the employee for PF purposes leading to many employees having multiple PF. With UAN an employee will have a single identification under provident fund across employers. Hence, if a employee who is already allotted Universal Account Number (UAN) joins a new establishment, he/she must use the same UAN to enable the employer to in-turn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number (UAN). Further, the employee KYC details will be mapped against the allotted UAN rather the member id thereby eliminating the redundancy. UAN has automatically been provided provided by the EPFO for most contributing members in the following pattern: EPF members in respect of whom at least one contribution is received in or after Jan-2014. EPFO provides UAN automatically. EPF members not having UAN & no contribution received in or after Jan-2014 can request EPFO to allot UAN. Any citizen (whether EPF member or not) can request for UAN. Benefits of Joining the Unified Portal On joining the Unified Portal and linking UAN with Aadhaar, the person will be able to do the following: PF Balance Check Employees registered on the Unified Portal having a UAN that is linked to a KYC can easily check their PF Balance at anytime. Click here to know more about PF Balance Check. EPF Account Activity The employee would receive SMS about credits/debits to their EPF account. Employees having UAN can also track their EPF account balance using the EPF mobile app or by giving a missed call to 9718397183. Submit Claims Online Employee who have Aadhaar enabled UAN can submit their claims directly with EPFO. There would be no requirement to go to the employers for claims attestation. Further, all application for EPFO services can be submitted by the employee online. Download UAN Card Members enrolled on the Unified Portal can themselves download UAN Card. Similarly, the most recent passbook can also be printed at anytime on the Unified Portal. Update KYC Details Employees enrolled on the Unified Portal can update their KYC details or mobile number at anytime. Further, all the employer IDS can also be listed under the UAN on the Unified Portal to consolidate the accounts. How to Get UAN A new employee can collect UAN after making the first contribution. After collecting the new UAN, the person can activate online services on the Unified Portal by visiting the member services page. In the portal, provide your requisite KYC details like Aadhaar, Bank Account & PAN along with a list of all previous EPF account numbers to activate Unified Portal services. In case of any employee having UAN, he/she must provide the UAN on joining any new establishment. Along with the UAN, the employee must also submit KYC documents to the new employer. On submission of UAN and KYC documents, the EPF account will be auto-transferred. FAQs Q: What is Unified Portal? The employee provident fund has launched the Unified Portal to streamline and simplify all aspects of the provident fund for the employers and the employees. New employees who have a UAN can use the Unified Portal for services. Q: What are the benefits of Joining Unified Portal? By joining the Unified portal and linking the UAN the person can check the PF balance, EPF account activity, submit claims online, download the UAN card, Update the KYC details. Q: What all services can be availed through Unified Portal? By joining the Unified portal one can check the PF balance, EPF account activity, submit the claims online, download the UAN card, and also update the KYC details. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida  Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur |

Authorised Money Changers/ AMCs are entities who are authorised by the Reserve Bank of India as per Section 10 of the Foreign Exchange Management Act of 1999. Accordingly, an AMC may either be a Restricted Money Changer (RMC) or a Full Fledged Money Changer (FFMC). As defined by the Act, an Authorised Person essentially means an authorised dealer, money changer, off-shore banking unit or any other individual for the time being authorised under sub-section (1) of Section 10 to involve in foreign securities or foreign exchange. A license is required by FFMCs to purchase foreign exchange from residents and non-residents visiting India and to sell foreign exchange for specifically approved purposes. These companies are sanctioned under the Foreign Exchange Act of 1999. The RBI permits business entities to handle foreign exchange for specific purposes. These business entities are referred to as Authorized Exchanges or AMCs. Full Fledged Money Changer (FFMC) A Full Fledged Money Changer (FFMC) is an authorized entity who may purchase foreign exchange from non-residents and residents of India and sell the same for private and business travel purposes only to the people visiting abroad. As Section 10 of the Foreign Exchange Management Act, 1999 prescribes, authorized money changers are the only entities in the country that can deal in money changing activities and offer necessary foreign exchange services. For the purpose of removing the obstacles faced by foreign visitors and tourists, particular firms and hotels have also been offered the registration to deal in foreign currency notes, coins and traveller’s cheques under the directions issued by the RBI frequently. No individual is permitted to carry on or advertise that they carry on money changing business unless they own a valid money changer’s license issued by the RBI. Any individual found undertaking any sort of money changing business without a valid license is liable to be penalised under the Act. Benefits of FFMC An AMC licensee can provide sales facilities and services for foreign exchange; An FFMC licensee may offer collection certificates in the case of traveler’s cheques, foreign currency notes from non-residents and residents; An FFMC licensee can carry out foreign exchange activities for foreign tourists visiting India; An AMC licensee can settle trades in coins, traveler’s cheques, and foreign currency, at the prevailing exchange rate. Activities of FFMCs An FFMC may enter into a franchise agreement at their convenience for the purpose of carrying on the Restricted Money Changing business which basically involves the conversion of foreign currency notes, coins or travellers’ cheques into Indian Rupees (INR). An FFMC or its franchisees may freely purchase any foreign currency notes, coins or traveller’s cheques from the residents as well as the non-residents of India. An FFMC may sell Indian Rupees (INR) to foreign tourists or visitors against International Debit Cards/ International Credit Cards and take prompt actions in order to obtain reimbursements through normal banking channels. FFMCs may choose to sell foreign exchange for the following purposes. Business Visits Private Visits Forex Pre-Paid Cards Eligibility criteria for obtaining FFMC registration As per the RBI guidelines, an applicant who wants to obtain an FFMC license must fulfill the following requirements:  The applicant should obtain company registration under the Companies Act, 2013.  Further, a minimum NOF (Net-owned Fund) of Rs. 25 lakhs is necessary for one FFMC branch, while Rs. 50 lakhs for multi-branch FFMCs is mandatory.  There should be no criminal or civil cases pending against a company or individual with the Directorate of Tax Intelligence and the Directorate of Enforcement.  The subject matter clause of the memorandum must demonstrate the business of money exchange to be carried out by the company. Types of FFMC License The following are the types of license that are required by an entity to operate as a Full Fledged Money Changer (FFMC). Authorised Dealer Category-I Banks (AD Category–I Banks) Authorised Dealers Category-II (ADs Category–II) Full Fledged Money Changers (FFMCs) Documents Required for FFMC License A copy of the Certificate of Incorporation of the Entity. The Memorandum and Articles of Association comprising of a provision for undertaking money changing businesses or an appropriate amendment with the same effect. A copy of the latest audited accounts of the Entity with a certificate from Statutory Auditors certifying the Net-Owned Funds as on the Date of Application for the License. Several copies of the audited Balance Sheet and, Profit and Loss Account of the Entity for the immediate three years prior to the Date of Application for the License, wherever applicable. A Confidential Report from the banker of the Applicant in a sealed manner. Information concerning the sister or associated concerns operating in the financial sector such as NBFCs. A certified copy of Board Resolution to undertake money changing business. Procedure for obtaining FFMC License from RBI Application submission to the Reserve Bank of India: In the first step of the procedure, the applicant company has to apply along with the required documents at the regional branch of Apex Bank in the prescribed format. Annexure II deals with the format prescribed by RBI. Meet the appropriate and correct criteria: To obtain an Authorized Money Changer License from the Reserve Bank of India, a company must meet the Fit and Proper criteria. Consequently, the Board must go through a Due Diligence process to confirm that the prescribed Fit and Proper criteria are properly met. Further, one of the main functions of the eligibility and propriety criteria is to assist in determining the expertise, integrity, qualifications, and previous record of a person proposed for appointment as a director. Post Approval Requirements by FFMCs A copy of the registration under the Shops and Establishment Act or any other documentary evidence such as a rent receipt or a copy of the lease agreement must be submitted to the Regional Office directed by the Reserve Bank before the commencement of any business activity. New Full Fledged Money Changers (FFMC) must carry out their activities according to the instructions specified by the Reserve Bank often. FFMCs must, at each of its business places,

Rules Particulars     RULE 1 of the Companies (Incorporation) Rules, 2014 Short Title and Commencement RULE 2 of the Companies (Incorporation) Rules, 2014 Definitions RULE 3 of the Companies (Incorporation) Rules, 2014 One Person Company RULE 4 of the Companies (Incorporation) Rules, 2014 Nomination by the Subscriber or Member of One Person Company RULE 5 of the Companies (Incorporation) Rules, 2014 Penalty RULE 6 of the Companies (Incorporation) Rules, 2014 Conversion of One Person Company into a Public company or a Private company RULE 7A of the Companies (Incorporation) Rules, 2014 Penalty RULE 8 of the Companies (Incorporation) Rules, 2014 Names which resemble too nearly with name of existing company RULE 9 of the Companies (Incorporation) Rules, 2014 Reservation of name or change of name RULE 9A of the Companies (Incorporation) Rules, 2014 Extension of reservation of name in certain cases RULE 10 of the Companies (Incorporation) Rules, 2014 Where Articles Contains Entrenchment Provisions RULE 11 of the Companies (Incorporation) Rules, 2014 Model Articles RULE 12 of the Companies (Incorporation) Rules, 2014 Application for Incorporation of Companies RULE 13 of the Companies (Incorporation) Rules, 2014 Signing of Memorandum and Articles RULE 14 of the Companies (Incorporation) Rules, 2014 Declaration by Professionals RULE 15 of the Companies (Incorporation) Rules, 2014 Declaration from Subscribers and First Directors RULE 16 of the Companies (Incorporation) Rules, 2014 Particulars of Every Subscriber to be Filed With the Registrar at the Time of Incorporation. RULE 17 of the Companies (Incorporation) Rules, 2014 Particulars of First Directors of the Company and their Consent to Act as Such RULE 18 of the Companies (Incorporation) Rules, 2014 Certificate of Incorporation RULE 19 of the Companies (Incorporation) Rules, 2014 License Under Section 8 for New Companies With Charitable Objects etc RULE 20 of the Companies (Incorporation) Rules, 2014 License for Existing Companies RULE 21 of the Companies (Incorporation) Rules, 2014 Conditions for Conversion of a Company Registered Under Section 8 into a Company of Any Other Kind RULE 23 of the Companies (Incorporation) Rules, 2014 Intimation to Registrar of Revocation of Licence Issued Under Section 8 RULE 23A of the Companies (Incorporation) Rules, 2014 Declaration at the time of commencement of business. RULE 24 of the Companies (Incorporation) Rules, 2014 Declaration at the time of commencement of business RULE 25 of the Companies (Incorporation) Rules, 2014 Verification of Registered Office RULE 25A of the Companies (Incorporation) Rules, 2014 Active Company Tagging Identities and Verification (Active) RULE 26 of the Companies (Incorporation) Rules, 2014 Publication of name by company. RULE 27 of the Companies (Incorporation) Rules, 2014 Notice and Verification of Change of Situation of the Registered Office RULE 28 of the Companies (Incorporation) Rules, 2014 Shifting of registered office within the same State RULE 29 of the Companies (Incorporation) Rules, 2014 Alteration of Memorandum by Change of Name RULE 31 of the Companies (Incorporation) Rules, 2014 Certified Copy of Central Government’s Order RULE 32 of the Companies (Incorporation) Rules, 2014 Change of Objects for Which Money is Raised Through Prospectus RULE 33 of the Companies (Incorporation) Rules, 2014 Alteration of Articles RULE 34 of the Companies (Incorporation) Rules, 2014 34 Copies of Memorandum and Articles, etc. to be Given to Members on Request Being Made by Them RULE 35 of the Companies (Incorporation) Rules, 2014 Service of Document RULE 36 of the Companies (Incorporation) Rules, 2014 Integrated Process for Incorporation. RULE 37 of the Companies (Incorporation) Rules, 2014 Conversion of Unlimited Liability Company into a Limited Liability Company by Shares or Guarantee RULE 38 of the Companies (Incorporation) Rules, 2014 Simplified Proforma for Incorporating Company 7,9[Electronically Plus (SPICe+) RULE 38A of the Companies (Incorporation) Rules, 2014 Application for registration of Goods and Service Tax Identification Number (GSTIN). Employee State Insurance Corporation (ESIC) registration RULE 39 of the Companies (Incorporation) Rules, 2014 Conversion of a company limited by guarantee into a company limited by shares RULE 40 of the Companies (Incorporation) Rules, 2014 Application under sub-section (41) of section 2 for change in financial year RULE 41 of the Companies (Incorporation) Rules, 2014 Application under section 14 for conversion of public company into private company RULE 33A of the Companies (Incorporation) Rules, 2014 Allotment of a new name to the existing company under section 16(3) of the Act RULE 25B of the Companies (Incorporation) Rules, 2014 Physical verification of the Registered Office of the company  

In India, E-invoice is a process of generating and exchanging invoices electronically between businesses and the government. The government has introduced the e-invoicing system as part of its Digital India initiative to reduce paperwork and improve the ease of doing business in the country. As per the latest guidelines by the GSTN, businesses with an annual turnover of more than Rs. 10 crores are required to generate electronic invoices for B2B transactions. Companies must register with the e-invoicing system and generate e-invoices for all business transactions. -Invoicing under GST denotes electronic invoicing defined by the GST law. Just like how a GST-registered business uses an e-way bill while transporting goods from one place to another. Similarly, certain notified GST-registered businesses must generate e invoice for Business-to-Business (B2B) transactions. What is e-invoice? The Goods and Services Tax Network (GSTN) is the government organization responsible for developing and maintaining the technological ecosystem for India’s new Goods and Services Tax (GST) regime. It is the backbone of the GST regime and provides the technology infrastructure and services for filing GST returns online. It also maintains the GST portal and provides e-invoicing services for registered businesses. The GSTN has partnered with the Institute of Chartered Accountants of India (ICAI) and the National Payments Corporation of India (NPCI) to set up the e-invoicing system in India. E-invoicing is a system for automating the entire process of creating, sending, and storing digital invoices. It is an electronic version of a traditional paper invoice, which is generated and stored electronically instead of being printed and mailed. The main objective of e-invoicing is to make the invoicing process simpler, faster, and more efficient. The GSTN has introduced E-invoicing in an attempt to help streamline the process and ensure that all the necessary details are captured in a single invoice Who must generate e invoice and its Applicability? The e invoice applicability can be explained as follows- Turnover criteria or e Invoice limit Phase Applicable to taxpayers having an aggregate turnover of more than Applicable date Notification number I Rs 500 crore 01.10.2020 61/2020 – Central Tax and 70/2020 – Central Tax II Rs 100 crore 01.01.2021 88/2020 – Central Tax III Rs 50 crore 01.04.2021 5/2021 – Central Tax IV Rs 20 crore 01.04.2022 1/2022 – Central Tax V Rs 10 crore 01.10.2022 17/2022 – Central Tax VI Rs 5 crore 01.08.2023 10/2023 – Central Tax The taxpayers must comply with e-invoicing in FY 2022-23 and onwards if their e invoice limit or turnover exceeds the specified limit in any financial year from 2017-18 to 2021-22. Also, the aggregate turnover will include the turnover of all GSTINs under a single PAN across India. If the turnover in the last FY was below the threshold limit but it increased beyond the threshold limit in the current year, then e-Invoicing would apply from the beginning of the next financial year i.e. FY 2023-24. Suppose, ABC ltd aggregate turnover was as follows- FY 2017-18: Rs 15 crore FY 2018-19: Rs 17 crore FY 2019-20: Rs 24 crore FY 2020-21: Rs 19 crore FY 2021-22: Rs 18 crore Suppose, QPR ltd started business in FY 2019-20 and earned aggregate turnover as follows- FY 2019-20: Rs 4 crore FY 2020-21: Rs 7 crore FY 2021-22: Rs 11 crore   The ABC Ltd shall mandatorily generate e invoices from 01.04.2022 irrespective of the current year’s aggregate turnover as it has crossed the Rs 20 crore turnover limit in FY 2019-20. On the other hand, QPR ltd should comply with e-Invoicing from 1st October 2022 since its previous year’s annual turnover exceeds Rs.10 crore. The fifth phase of e-Invoicing works similar to the fourth phase. Watch the below video to learn easily. Transactions and documents criteria The following transactions and documents listed below fall under  e invoicing applicability – Documents Transactions Tax invoices, credit notes and debit notes under Section 34 of the CGST Act Taxable Business-to-Business sale of goods or services, Business-to-government sale of goods or services, exports, deemed exports, supplies to SEZ (with or without tax payment), stock transfers or supply of services to distinct persons, SEZ developers, and supplies under reverse charge covered by Section 9(3) of the CGST Act. What are the benefits of e-invoicing? By utilizing the e-invoicing system, taxpayers can gain the following benefits: E-invoicing allows businesses to streamline their invoicing process, reduce costs, and improve compliance with government regulations. The e-invoicing system is integrated with the GST portal, allowing businesses to generate and file their invoices directly with the GST portal, instead of having to manually submit. E-invoicing allows businesses to generate e-invoices, track them, and monitor their status. Who is eligible for e-invoice? As per the latest guidelines by the Goods and Services Tax Network (GSTN), the following categories of taxpayers are required to generate and issue E-invoices for their business transactions: Taxpayers with an aggregate turnover exceeding Rs.500 crores in any preceding financial year from 2017-18 onwards. Taxpayers engaged in the export of goods or services. Taxpayers who are required to deduct tax at source (TDS) under the GST regime. Taxpayers who are engaged in the supply of goods or services on behalf of other registered persons, known as the ‘Input Service Distributor’. DTA units must issue an e-invoice applicability check under the GST applicability, if they meet other requirements for eligibility. Who need not comply with e-Invoicing? However, irrespective of the turnover, e-Invoicing shall not be applicable to the following categories of registered persons for now, as notified in CBIC Notification No.13/2020 – Central Tax, amended from time to time- Notified Businesses Documents Transactions 1)An insurer or a banking company or a financial institution, including an NBFC 2) A Goods Transport Agency (GTA) 3) A registered person supplying passenger transportation services 4) A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services 5) An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax) 6) A government department and Local authority (excluded via CBIC Notification No. 23/2021 – Central Tax)  7) Persons registered in terms of Rule 14 of CGST Rules (OIDAR) Delivery challans, Bill of supply, financial or commercial credit

Computers, laptops and printers have become vital tools for companies and individuals in today’s fast-paced technological environment. Such devices, like any other asset, have a finite lifespan and depreciate over time. Understanding computer, laptop, and printer depreciation rates is critical for proper financial reporting and tax purposes.  you should be awareof thedepreciationrate on Computer Accessories and Peripherals.So, if you are using it for business than while calculating taxable business income assessee can claim deduction of depreciation at 40% but it should fall under the expression “computer” as defined in Income Tax Act, 1961. Computer and Laptop Depreciation Rate The depreciation rate is the percentage by which an asset drops in its value throughout its total useful life. The Income Tax Act 1961 covers depreciation rates under Section 32. As computers and laptops are tangible assets, it is presumed that they will depreciate in value with every passing year.  One critical component for corporate organisations is identifying which equipment qualifies as a computer in order to take advantage of a 40% depreciation rate. This enables them to deduct 40% of the cost of computers and software from their taxable business revenue.  If an item does not match the definition of a computer, it may nevertheless be eligible for the plant and machinery depreciation rate of 15%. This distinction is critical in maximising tax benefits. What exactly do you mean when you say the word “computer”? The Income Tax Act of 1961, as well as the Income Tax Rules and General Clauses Act of 1987, don’t really define what constitutes the term “computer”. The interpretation of the phrase “computer” can be assessed utilizinglegal principles, whichimplies that the significance of the phrase “computer” must be assessed not only by reviewing a dictionary, but also by implementing a popular nomenclature or large scale common usage test and evaluating the legislature’s purpose in setting the maximum rate of depreciation. Cases of historical significance- The opinion expressed by the panel in Ushodaya Enterprises Ltd. v. Assistant Commissioner of Income Tax, Circle-16 (2), and Hyderabad, is that the term “computer” is not specific solely in terms of central processing units (CPU). The Hon’ble Bench went on to say that while the function of a computer as a composite unit is to execute logical, arithmetical, or memory tasks, etc., the CPU is not the only piece of hardware which conducts these activities and may be called a “computer.” The ‘computer’ comprises both input and output devices such as that of the keyboards, cursor, printers, barcode, broadband, switchgear, adapters, cable management, and so forth. The bench put forward a test to identify whether the particular object can be a part in the ambit of same to get the depreciation. When any hardware of computer is used as the essential part to run the computer can be considered under the ambit defined. Whereas if any part s not used as a necessary accessory to the one that it is not entertain under the same. Laptop and Computer Depreciation Rate As Per Companies Act Computer and laptop depreciation rate as per Income Tax Act is based on the useful life and residual value of the assets. The rate applicable in this case applies to assets purchased after or on 1st April 2014, with a residual value considered 5%. The rates applicable as per Companies Act 2013 are as follows: Rate as per straight line method: 31.67% Rate as per written down value (WDV): 63.16% Useful life: 3 years It is vital to remember that if you wish to use the WDV method of depreciation on your computers, you must generate a new depreciation rate using the formula below:  R = {1-(s/c)^1/n}*100 Here,  n = remaining useful years of asset c = cost of asset / written down value of an asset s = scrap value of an asset at the end of its useful life R = rate of depreciation (%) Laptop and Computer Depreciation Rate As Per Income Tax Act The Income Tax Act has its own rules for computing depreciation rates for laptops and computers. These rates are often higher than those under Companies Act, allowing quicker tax write-offs.  In general, the Income Tax Act follows a block system where different categories of assets fall into specific blocks, each with its prescribed depreciation rates. Computer and Laptop depreciation rate as per Income Tax Act falls under the asset class of Plant and Machinery. The rate of deduction considered here is 40%. However, you must follow all the clauses under Rule 5(2) to be eligible for a 40% depreciation rate.  You can calculate depreciation for your laptops and computers under the specific rate of the Income Tax Act by using the following formulas: Depreciation rate per year = 1/useful asset’s life Depreciation value per year = (Cost of an asset – Salvage value of an asset) / Depreciation rate per year Printer Depreciation Rate Printers are essential in workplaces and households because they allow us to make tangible copies of digital documents. Printers, like computers and laptops, depreciate over time. The depreciation rate on printers falls under the category of computer peripherals, where you can claim a deduction of 40%. Residual value and useful life of the printer are the factors that determine this rate. Printer Depreciation Rate as Per Companies Act As per Companies Act 2013, the depreciation rate applicable to printers falls under the category of “Special Plant and Machinery ”. This rate is determined based on the useful life of the printer, which is 13 years. The depreciation rate is charged based on two different methods. They are: Straight Line Method (SLM): 7.31% Written Down Value (WDV): 20.58% Printer Depreciation Rate as Per Income Tax Act As per the Income Tax Act, printers fall under the asset class of Plant and Machinery, where the applicable rate is 40%. During the fiscal year 2017-18, the depreciation rate changed, resulting in a maximum applicable rate of 40% on any asset. To be qualified for this depreciation rate, eligibility for all of

In business, financial management is the practice of handling a company’s finances in a way that allows it to be successful and compliant with regulations. That takes both a high-level plan and boots-on-the-ground execution.When most people think of financial management, they often think of managing their own bank accounts: paying the rent or mortgage, paying utility bills, buying groceries, maybe even planning a monthly budget. But financial management for business is a much more complex pursuit. It involves controlling and tracking all the money flowing in and out of the business, as well as taking steps to make the company as profitable and financially secure as possible. What is Financial Management? Financial management is about controlling the flow of money in and out of the organization. Every business needs to sell products or services, pay expenses, balance the books, and file taxes. Financial management encompasses all of this, along with more complex processes, such as paying employees, buying supplies, and submitting reports to government agencies to show they’re obeying applicable laws and regulations. The act of overseeing all these transactions for a business is what we mean when we talk about a company’s financial management. In general, the bigger the company, the more complicated financial management becomes. Employees who specialize in financial management are responsible for all the money going into and out of the company. Smaller companies will have at least one accountant or bookkeeper who works with the bank to execute these transactions and track the flow of money. Large companies will often have entire finance teams led by a chief financial officer (CFO), controller, head of finance, or someone with a similar title. The finance team’s primary job is to make sure the company stays solvent and never runs out of cash—but it’s not their only job. They’re also responsible for handling loans and debts, balancing the books, overseeing investments, raising venture capital, and managing public offerings (i.e. selling company stock on the open market). Basically, the finance team protects a company’s financial resources, monitors and controls all transactions, and takes steps to make the company as profitable as possible. Objectives of Financial Management 1. Keeping the company solvent by avoiding bankruptcy and ensuring the business has enough money to continue operating. 2. Maximizing profitability by setting the right price for existing products and services, discontinuing unprofitable products and services, and evaluating the potential profit of new products and services. 3. Minimizing costs by monitoring spending and looking for ways to reduce overhead. 4. Ensuring a good return on investment (ROI) for venture capitalists, stock shareholders, and other investors. 5. Raising capital by attracting more investment via positive ROI. 6. Cash forecasting to make sure the organization has enough cash—not only to function but to invest in growth. 7. Reducing risks and avoiding fines by ensuring the company complies with the appropriate regulations. Increasingly, this includes environmental, social, and governance (ESG) planning and reporting. Understanding Financial Management Invoicing and receivables: Money that customers pay or have promised to pay to the business. Finance teams are responsible for sending out invoices and processing the payments as they come in. Collections teams are responsible for following up on overdue accounts (this process is sometimes outsourced to third parties). Payables: Money that the company owes to its vendors and suppliers. Finance teams are responsible for paying these bills and recording the payments. Bank transactions and reconciliations Finance teams work closely with their banks to ensure that every bank transaction is processed correctly. They must also make sure that the bank’s statements match their own records, which are kept in the company’s general ledger and subledgers. The finance team must follow up on, and correct, any mismatches between bank statements and ledgers—a process known as account reconciliation. Closing the books: On a particular date, the company will tally transactions from a given period so it can reconcile its accounts and report on its financial position. The close, as this process is known, typically happens at the end of a month, quarter, or year. Reporting: Companies must report regularly on their financial performance, whether it’s to the CEO, a board of directors, investors, shareholders, or government regulators. The finance team is responsible for ensuring that these reports are clear and accurate. Scenario modeling, planning, and budgeting: Scenario modeling starts with making certain assumptions about an upcoming period of time, such as, “Next quarter, we expect to bring in $10 to 15 million in revenue.” The finance team will run multiple “what-if” scenarios for the best and worst cases to estimate how much money the company will have if those conditions come to pass. Based on these models, the finance team will assess how best to respond and develop appropriate plans, forecasts, and budgets. Often, the finance team will work with other departments—such as sales, HR, project management, or procurement teams—to build models that include data from sales forecasts, workforce expenses, and inventory costs. This is known as connected planning. Payroll and expenses: Individual paychecks to employees are typically the responsibility of the HR department. However, overall workforce costs roll up to the finance team so they can factor it into their budgets and plans. Finance is also responsible for reimbursing employee expenses, such as work-related travel and meals. Cash management and forecasting: With money constantly flowing in and out of a business, it’s important for finance teams to look ahead. They must ensure that the company has enough cash to stay solvent for the next quarter, next year—even the next three to five years. In most companies, cash forecasting is typically done once a month. Tax strategies: Every company must file. taxes; and, like the rest of us, they want to take advantage of as many deductions as possible to prevent overpayment. Some finance teams have tax specialists on staff to manage this. Those that don’t will often outsource this task to an accounting firm. Risk and compliance Every business has financial risks, from rising interest rates to global pandemics. It’s the finance team’s job to control such risks and reduce

The TransUnion CIBIL Limited came into existence in August of 2000. Started as the Credit Information Bureau (India) in the financial capital of India, Mumbai, CIBIL was the country’s first Credit Bureau. CIBIL began with consumer operations in 2004 and stepped into commercial credit operations in 2006. By 2011, CIBIL Score was accessible to individual consumers as well. Currently working in partnership with TransUnion International, a worldwide credit bureau, CIBIL has credit records of over 550 million businesses and individuals across the Most of us are familiar with the concept of borrowing and lending. You would have come across at least one person who often forgets to return the money that he/she borrows. This makes you think twice to lend to that person because of their forgetful nature. Similarly, lending institutions would like to issue loans and credit cards only to those who they deem creditworthy. CIBIL score is one of the significant metrics that is used by the credit institutions in India to measure an individual’s creditworthiness. country. What is CIBIL Score? CIBIL score is one of the most important factors that almost every financial institution check when they receive credit application from individuals. TransUnion CIBIL has affiliations with almost every bank to gauge the creditworthiness of millions of individuals and enterprises. A high CIBIL score denotes not only your excellent financial discipline but also your integrity. Every time you apply for a loan or a credit card, your recent score (last six months) is checked. Generally, any score above 700 is considered excellent, though some banks keep the bar high and some do not mind lowering the standard. CIBIL Score Chart The following is a table depicting the various CIBIL scores and what it may mean. CIBIL Score Meaning 850 – 900 Indicates that one has never defaulted on their payments even once and is an excellent score. 750 – 850 80 % of loans are approved for people who have a score above 750. This gives them the advantage to bargain for a better rate on credit cards and personal loans. 700 – 750 This indicates that the person is good to go for secured loans. However, for an unsecured loan, the bank may impose a higher rate or investigate further. 500 – 700 This indicates that a person has defaulted on their payments a few times. Personal loans would be hard to obtain, and a private financier may levy a massive interest. 300 – 500 This is considered an inferior score and indicates too many discrepancies in loan repayments to ignore. Unless the person works on improving their score, it would be close to impossible to obtain any credit from any bank in the country. Who Computes the CIBIL Score? TransUnion CIBIL is a credit bureau or credit information company, incepted in 2000, the first of its kind in India. The firm computes the CIBIL score of individuals based on the consumer information stored in their repository. They are known for their accuracy and transparency in the calculation of the score. Factors influencing CIBIL Score Repayment History- An individual’s behaviour in the past is an indicator of their future. Every time a person avails credit or a loan, the lender is bound by duty to report the same to the CIBIL. The bank takes note of whether an individual repays their debts on time. If an individual makes an effort to repay in advance, it is considered as a positive sign. This indicates that the person can be trusted to repay the amount he owes. Drastic Increase in Credit- Every earning individual would have a certain credit limit, be it for a loan or a credit card. However, utilising the available credit in its entirety would come off as credit hungry which are seen as red flags by banks. If an individual maintains their certain credit level for all the months but is seen spending significantly more financially, it may result in a dip in the score. Debt to Income Ratio (DTI)- Typically, lenders do not encourage people to take more debts than roughly 40 per cent of their total income. So, DTI is a measure that is used to estimate the ability of a loan applicant to repay their debts based on their salaries. DTI is considered to be a useful metric to inculcate financial discipline in one’s self so that one would be able to repay their future EMIs without any trouble. Multiple Loans- It is also a concern to banking authorities when an individual has many loans such as a home loan, personal loans and vehicle loan and various credit cards registered in their name. It is always a good sign to close one before moving on to avail another one. Uses of CIBIL Score Loan Approval- There exists a common misconception that is simple to avail secured finances such as home loans, personal loans and more if one provides the bank with any valuable security. This is not always the case. Bank’s always looked into a person’s past credit behaviour before approving any loans. This is how banks decide an upper limit and an interest rate. With a poor CIBIL Score, it is difficult to avail loans. Approval of Unsecured Loans- If an individual has no security to offer a bank for a loan, a clean chit from the TransUnion CIBIL is of utmost importance. It is easier for a borrower with a high CIBIL score, of say 700 and above, to get their loans sanctioned without any security. If an individuals score is above 800, they may even get a higher amount than generally given by a bank. Interest Rates- Interest rates vary for different loans at different banks. Some may get a better deal than others even in the same bank. An excellent CIBIL Score gives you the power to bargain with banks for a better deal. Creditworthy customers have the authority to compare offers from different lenders and negotiate as they are assets for any financial institution. Insurance Another financial

Cost management is the process of planning and controlling the costs associated with running a business. It includes collecting, analyzing and reporting cost information to more effectively budget, forecast and monitor costs. Cost management practices can be applied to specific projects or to the company’s overall operating model. Cost management typically focuses on generating savings and maximizing profits in the longer term. Cost accounting: What is it? Calculating the cost of a service or activity is cost accounting. Here, accounting is carried out with a focus on cost control, classification, analysis, and interpretation. It gauges an organization’s operational effectiveness. Cost accounting aims to give managers the cost information, reports, and statements they need to make prudent financial decisions. Cost management’s range The following elements are included in the scope of cost management, which is quite broad: To ascertain the cost: The management gathers the costs incurred, further examines the sum spent on creating numerous items at various stages of production, and then makes a connection between the production and the costs expended to determine the cost. Since there are several ways to collect expenses, there are also various ways for Accounting services in India to quantify costs, including projected costs, standard costs, historical or actual costs, etc. As a result, various costing methodologies have been adopted, including operating and specific order costing. To balance the expense with the income received: making financial statements at frequent intervals as needed by management is made easier with the help of cost management. It enables management to balance the product’s cost with its revenue. The general financial statements, however, are prepared once a year. The management creates these financial statements based on reports it receives on a weekly, monthly, and quarterly basis that include information on the stock of raw materials, semi-finished goods, and finished goods, as well as information on the units produced accrued costs, and analysis. Finding unproductive and unprofitable operations in the manufacturing process is another major goal of cost management, enabling management to take the necessary action to reduce losses and boost productivity. Thus, this exercise aids in cutting down on waste. What are the benefits of cost management in project management? roject managers should not underestimate the business advantages of effective cost management. Here are three of the key benefits: Prevents overruns: By allotting costs in the early planning stages, project managers ensure they don’t overspend on specific areas. Avoids risk: A good budget will have a risk allowance to ensure project success is not compromised if unforeseen costs arise.  Aids future planning: Cost reports can help with resource optimization. This can lead to more accurate budgets in the future. What are the challenges of cost management? Cost project management can be tricky. Here are three challenges that frequently crop up: Lack of resources: If a project budget is too small, it can be difficult to secure the required labor, materials, etc., to complete the project successfully. Inaccurate estimation: Poor forecasting can occur when a manager is inexperienced or doesn’t fully understand the scope of the project. This can lead to cost overruns and affect overall profitability. Outdated technology: Project managers need access to intuitive, up-to-date technology and tools to manage costs accurately. Which project tools help with cost management in project management? Budgeting: For effective cost project management, you need an accurate budget. This requires a budgeting tool to track costs using custom hourly rates and tailored financial fields. Time tracking software: This is particularly useful when trying to estimate resource cost. When team members log hours using a task timer, project managers can use this data to determine how long a certain task takes, and allocate resources accordingly. Reporting and analytics tools: For real-time insights into their cost management process, project managers should generate weekly reports with detailed charts and graphs. Analytics dashboards can also be created for a project portfolio overview. FAQs Q: What is cost management? Cost management is the process of planning, controlling, and optimizing costs within an organization. It involves identifying, estimating, budgeting, and monitoring costs to ensure that a project or business operates within its financial constraints. Q: Why is cost management important? Cost management is crucial for ensuring financial stability and profitability. It helps organizations allocate resources efficiently, make informed business decisions, and achieve their financial goals. Q: What are the key components of cost management? The key components of cost management include cost estimation, budgeting, cost control, and cost analysis. Estimation involves predicting costs, budgeting sets financial limits, control ensures adherence to budgets, and analysis helps understand cost patterns. 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A Valuation Certificate is a document that establishes the worth of a company or an asset. It is issued by a registered valuer after conducting a thorough valuation process. This certificate provides an authoritative and unbiased estimate of the value, often fulfilling statutory requirements under the Companies Act and RBI Laws in India. Issuance of Valuation Certificates In India, only registered valuers—who have passed the Valuation Standards of ICAI (Institute of Chartered Accountants of India) or an equivalent examination—can issue Valuation Certificates. These valuers bring a wealth of experience, knowledge, and expertise, ensuring that the valuation is conducted objectively and professionally. The Startup India initiative has been launched to provide a platform for startups for networking and growing. Valuation of shares is a process of determining the price per share of the business and it is necessary for determining the health of the business and also for regulatory purposes. A startup must obtain a Valuation Report by a Registered Valuer registered with Insolvency and Bankruptcy Board (IBBI) in the following circumstances: Prior to issuing Equity shares, Partly or Optionally or Compulsory Convertible Preference Share or Partly Optional or Compulsory Convertible Debentures. Prior to issuing shares other than cash. Prior to issuing Sweat Equity shares either for cash or for consideration other than cash. Exception- A valuation report for issuance of the right shares is not required as the shares are issued at the face value of the company. The Importance of Valuation Certificates Whether you are negotiating with potential investors, planning a merger or acquisition, or engaging in statutory reporting, understanding the accurate value of your company is crucial. A Valuation Certificate serves this purpose. It not only presents the financial health of your business but also aids in making future strategic decisions. Methods of Valuation usinesses are generally valued based on the following popular methods. However, all the methods do not suit the startups. Detailed below are the valuation methods and their popularity with startups: Discounted Cash Flow Method (DCF) This method is widely used under the income-based valuation. The approach is to estimate the business value by calculating the present value of all future cash flows. It is an accepted method by businesses. Net Asset Value method (NAV) This method takes the net value of the business by reducing the liabilities from the assets. This is not a popular method for startups as investments in startups are generally low however they have huge growth potential. Market Value method (MV) The market value method is valuing a company based on its price on the stock market. However, this does not go well with startups as they are not listed companies and cannot be found on any stock market.As clearly evident, the Discounted Cash Flow method is the only viable method for the valuation of startups and hence also recommended by the Income Tax Rules for valuation of fresh issue of shares. The Intricacies of the Valuation Process The process of obtaining this significant document is meticulous and requires the expertise of a qualified valuer. It begins with an in-depth analysis of the company’s financial statements, including assets, liabilities, income, and expenses. The valuer also considers market conditions, industry trends, and the company’s operational efficiency. Furthermore, they may take into account intangible aspects such as brand value, customer loyalty, and market positioning. Upon completing this comprehensive evaluation, the valuer provides the company with a detailed report, which includes the value of the company or asset in question. Impact of Valuation Certificates on Businesses The relevance of a Valuation Certificate in the business context cannot be overstated. The certificate’s primary function is to provide an authoritative evaluation of a company’s worth. However, its impact extends far beyond this basic function. When a business seeks funding or investment, the valuation figure plays a crucial role. It helps investors understand the worth of the company, guiding their decision-making process. The certificate can provide the necessary confidence for investors to commit their resources to a venture. Additionally, the certificate can influence strategic decisions within the company. For instance, it can guide leadership in matters of mergers and acquisitions, helping determine the financial feasibility and benefits of such moves. Legal Requirements in India Legal Requirements in India: Obtaining a Valuation CertificateIn India, there are specific legal obligations outlined in the Companies Act and RBI regulations that make obtaining a Valuation Certificate essential for various transactions. These transactions include share buyback, mergers and acquisitions, capital gains tax computation, and more. To secure a Valuation Certificate in India, meticulous planning and preparation are necessary. Here are the steps to follow: Step 1: Select a Registered Valuer The initial step is to identify a valuer who is registered under the Companies Act, 2013. The official website of the Ministry of Corporate Affairs provides a list of registered valuers. Step 2: Provide Necessary Information The valuer requires accurate and comprehensive information about your company’s financial health, assets, liabilities, market conditions, and other relevant data. It is crucial to ensure that you provide the valuer with complete and precise information. Step 3: Valuation Process The valuer will perform the valuation using appropriate methodologies. The duration of this process depends on the complexity of your company’s financial structure. Step 4: Issuance of Valuation Certificate Upon successful completion of the valuation, the valuer will issue a Valuation Certificate stating the estimated value of your company or asset. In conclusion, the Valuation Certificate is an indispensable document for businesses in India due to the stringent regulatory requirements specified in the Companies Act and RBI Laws. It plays a significant role in facilitating strategic business decisions and meeting statutory obligations. FAQs Q: What is a Valuation Certificate? A Valuation Certificate is a document issued by a registered valuer to determine the value of a company or asset. It is often necessary to fulfill statutory requirements under the Companies Act and RBI Laws in India. Q: Who can issue a Valuation Certificate? In India, a Valuation Certificate can only be issued by registered valuers who have successfully passed