Professional Updates

Important: You are about to lose access to your old GST return data! Starting August 1, 2024, the GST portal has begun archiving GST return data that is more than seven years old. This is part of a regular monthly process, following the guidelines under Section 39 (11) of the CGST Act, 2017, effective from October 1, 2023, as per Notification No. 28/2023 – Central Tax dated July 31, 2023. What this means for you: GST returns older than seven years will no longer be viewable or accessible on the GST portal. Act now! Data for September 2017 will be archived on October 1, 2024, and this process will continue monthly. You will permanently lose access to this data if you don’t download and save it before it's archived. Urgent action required: We strongly advise you to log into the GST portal and download your older GST returns data immediately. Once archived, it will not be retrievable. Don’t wait until it’s too late!  #Please note GSTN has restored all data due to feedback from stakeh

All about Section 194-IA TDS on sale of Immovable property Section 194-IA apply only if seller is tax resident of India. If Seller is NRI  section 195 comes into picture. 1. What is Section 194-IA of the Income Tax Act? Section 194-IA requires the buyer (transferee) of an immovable property (other than agricultural land) to deduct tax at source (TDS) while making payment to the seller (transferor). 2. What is the applicable TDS rate under Section 194-IA? The applicable TDS rate is 1% . 3. On which value is TDS to be deducted under Section 194-IA? TDS is to be deducted on the higher of the sale consideration (the actual transaction value) or the stamp duty value of the immovable property. 4. What types of immovable properties are covered under Section 194-IA? The section covers any immovable property ( other than agricultural land ). 5. What is the meaning of 'consideration' under Section 194-IA? The 'consideration' includes not only the basic sale price but also cha

Format of attendance sheet of AGM As the AGM season is underway, proper documentation becomes crucial for smooth corporate governance. Among the key documents required for an Annual General Meeting, the AGM attendance register holds particular importance. The AGM attendance register is far from being just a formality; it has significant legal and operational value. This document serves as a record of all members and special invitees present at the meeting, which is essential for confirming that quorum requirements have been met. Additionally, AGM attendance sheet stands as an official point of reference in case any disputes arise regarding the legitimacy of the meeting or decisions made. Here is the format of attendance register for AGM you can use for recording attendance of Members at AGM: ATTENDANCE REGISTER First Annual General Meeting of the Company DATE & TIME   VENUE   MODE Physical Time of Meeting

Authority letter to use Digital Signature Certificate - DSC  As regulatory requirements grow in complexity, consultants, tax consultants, and auditors, are increasingly tasked with handling sensitive filings and legal documents on behalf of their clients. For these task Digital Signature Certificates (DSC) have become essential. However, using a client’s DSC without formal authorization can lead to legal complications. A properly drafted authorization letter is not just a formality; it’s a necessity for consultants to protect both themselves and their clients. Consultants should always obtain formal authorization before using their client’s DSC on any return, statements, documents and agreements.  Sample Authorization Letter to use DSC Here’s a sample letter that consultants can present to their clients for authorization: To, ABC & Associates, Chartered Accountants, Mumbai Subject: Authorization to Obtain and/or Use Digital Signature Certificate (DSC) With reference to the

How to Fix the "DSC Not Registered" Error While Filing ADT-3 on MCA V2 Many professionals filing Form ADT-3 on the MCA V2 portal have encountered a frustrating error stating, "DSC is not registered on with xxxx on MCA." This issue seems to affect those professionals who hold a DIN (Director Identification Number) in addition to their professional role. After some troubleshooting, here’s a step-by-step guide to resolve the error: Steps to Resolve the DSC Registration Error: Go to MCA V2 Portal: Open the following link to access the MCA V2 portal: https://www.mca.gov.in/mcafoportal/showAssociateDSC.do. Select Role as Practicing Professional: In the DSC registration section, choose the role as "Practicing Professional." Follow the steps to register your DSC in this capacity. Register as Director: After registering as a practicing professional, repeat the process but this time select the role as "Director."  Proceed with Form ADT-3: Once both reg

Clarity on Input Tax Credit for Demo Vehicles: A Long-Awaited Relief for Automobile Dealers Since the introduction of the Goods and Services Tax (GST) regime in 2017, automobile dealers have been in a state of confusion regarding the availability of Input Tax Credit (ITC) on demonstration vehicles, commonly referred to as demo cars. These vehicles, which are used to provide test drives and showcase features to potential buyers, are an essential part of the sales process for authorized car dealerships. However, despite their integral role in the business, there was no clear guideline on whether dealers could claim ITC on demo vehicles, which led to years of uncertainty and inconsistency in tax compliance. After more than seven years, the Central Board of Indirect Taxes and Customs (CBIC) has finally issued a clarification through Circular No. 231/25/2024-GST, dated September 10, 2024. This long-overdue circular provides much-needed guidance on the eligibility of ITC for demo vehicles.

Consent for holding the Annual General Meeting (AGM) at a location other than the registered office of the company.  For private companies, flexibility in business operations is often a key advantage. One area where this flexibility shows is in the location of the Annual General Meeting (AGM). Legally, AGMs are expected to be held at the registered office of the company. However, under the Companies Act, 2013, there is a provision [Section 96 (2) first proviso] that allows an  unlisted company to hold its AGM at any place in India , as long as all shareholders give their consent in advance. Key Points to Consider: Written Consent from Members: To hold an AGM outside the registered office, every member must provide their consent in writing or by electronic mode beforehand. Flexibility in Location: This provision allows the meeting to be held in a location that might be more convenient for shareholders, especially if the registered office is in a different city or state. For ease ref

What is Dematerialization of shares? Dematerialization refers to the process of converting physical share certificates and securities into an electronic form like we holds shares of listed companies . This transition eliminates the need for paper-based certificates, making the ownership and transfer of securities easier, safer, and more transparency. The goal is to enhance transparency and governance by transitioning from physical share certificates to electronic formats. Who Must Comply? As the compliance deadline nears (30th September 2024 [most likely to get extension] ), stakeholders are asking if these rules apply to section 8 companies? The dematerialization mandate under Rule 9A and 9B requires all private and unlisted public companies , excluding small companies , to issue securities in dematerialized form.  What is a Small Company? A small company, under the Companies Act, is defined as a company that meets the following criteria: Paid-up capital: Does not exceed Rs 4 crore.

MLWF: Key Dates, Revised Contribution Rates Maharashtra Labour Welfare Fund (MLWF) is a government-backed social security scheme designed to provide financial assistance and welfare benefits to workers in the state of Maharashtra, India. The fund is administered by the Maharashtra Labour Welfare Board, which is responsible for collecting contributions from employers and employees and utilizing these funds to implement various welfare programs. Key functions of MLWF include: Collecting contributions: Both employers and employees contribute to the fund.    Providing benefits: These benefits can include medical assistance, education, housing, and other welfare schemes.    Implementing welfare schemes: MLWF runs various programs to improve the quality of life of workers.    Applicability: MLWF is applicable to all establishments in Maharashtra that employs 5 or more workers. This includes factories, workshops, mines, plantations, and other industrial units., hospitals, societies. Latest M

Resolution for reappointment of auditor after 5 years “RESOLVED THAT pursuant to Sections 139, 142 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 [including any statutory modification(s) or re-enactment(s) thereof for the time being in force] and pursuant to the recommendation of the Board, M/s. ABC & Associates , Chartered Accountants, having Firm Registration No. X00X8XW be and are hereby reappointed as the Statutory Auditors of the Company for the consecutive term of five years, from the conclusion of this 06th Annual General Meeting till the conclusion of the 11th Annual General Meeting to be held in the year 2029 , to examine and audit the accounts of the Company at such remuneration as may be decided by the Board of Directors in consultation with the Statutory Auditors of the Company.” RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby authorised to do all such acts and ta