Growing Importance for TDS Compliance

Nowadays delay in payment of TDS and in TDS return Filing makes an assessee liable to Late Payment Interest, Late Payment Penalty, Late Filing Fees, Late Filing Penalty and Further makes him liable to prosecution under the provision of the Income Tax Act, 1961. In this article we are discussing some of these provisions which makes it clear that TDS cannot be taken lightly and we should take utmost care in timely payment of TDS and filing of TDS return.

TDS payment and Return Filing

The provision of TDS is getting stringent and from now it is becoming very necessary for all to comply the same and understand the importance of TDS.

As per the provision of TDS is to be deducted on payment or credit whichever is earlier.

So for e.g. If bill date is 15/4/13 amounting to 25000/- but advance payment is made on 05/04/2013 amounting to Rs. 85,000/- than TDS has to be deducted on 85,000/- on 05/04/2013 and to be paid either on same day or next day. Though the due date of payment is 7th of next month but that is not to be considered as due date, it is just grace days provided by department for the convenience of the assessee. Hence as soon as you deduct TDS it has to be paid. Even if we pay the TDS on 7th,the challan would get process with 24-48 hours as per banking terms. Hence as per Income tax department the date would not be considered as 7th but it would 8th or 9th as per the bank processing. Hence late payment interest would be charged for 2 months i.e. from date of deduction to date of payment.

If TDS is paid after 7th, Interest is charged at 1.5% p.m. (18% p.a.) from date of deduction till date of payment.

For e.g. if TDS is deducted on 15th April and paid on 9th May than interest would be calculated for 2 months i.e. April and May. Hence, it is advisable to pay TDS on date of deduction itself rather than waiting for 7th of next month for payment.

It is from now compulsory to pay online TDS for all assessee whose payment exceeds Rs. 1,00,000/- for the whole year. Hence if the assessee does not have online payment facility kindly get the same.

Even if PAN is incorrect, TDS @ 20% needs to be deducted. Hence, always take PAN copy of the party and file return.

Now, only 2 digits and 2 letters of PAN are allowed to be changed in revised return which would cause more difficulties as if whole PAN is in correct it would be difficult to change the same. Hence from now it is advisable that PAN copies is taken from all clients and then send all details.

GUIDELINES- REQUEST FOR REFUND

It is mandatory to register digital signature on TRACES to submit the refund request.

Request for refund can be submitted only if there is no outstanding demand against the TAN. Refund request can be submitted after total outstanding demand is closed.

A refund request can contain maximum of five challans. For claiming more challans, submit new request. Maximum refund amount will be the minimum challan balance amount in the challan history.

Available amount per challan must be greater than Rs.100/- Ensure that all statement in which the challan has been claimed have been processed before claiming refund for the challan.

The article resources from the CACLUBINDIA

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Major Steps concerned In Registration of Private Limited Company

1: Receiving DIN

DIN can be obtained by making an application online. All the obtainable and intending Directors have to get hold of DIN within the given time-frame as notified in Sections 266A to 266G of Companies (Amendment) Act, 2006.

2: receiving DSC

Digital Signature can be obtained from any of the Certifying Authorities in India. It is mandatory as all the filings done by the companies under MCA21 e-Governance programmed are need to be filed online with the use of Digital Signatures by the person authorized to sign the papers.

3: Name Filing

After finalization of name, an application of name availability has to be filed in form 1. Please note that selection of name is subject to Guidelines issued by MCA.

4: Drafting Of MOA & AOA

MOA is a document that sets out the constitution of the company. It contains the main objectives, supplementary/ subsidiary objectives for the achievement of the main objectives, other objectives and the scope of activity of the company and also describes the relationship of the company with the outside world.

AOA contains the rules and policy of the company for the management of its internal affairs. It states the authorized share capital of the planned company and the names of its first/ permanent directors.

NOTE: While the memo specifies the objectives and purposes for which the Company has been created, the Articles lay down the rules and policy for achieving those objectives and purposes.

5: Filing Of Form 1, 18 & 32

Form 1 – It is an application or statement for incorporation of a company along with MOA & AOA.

Form 18 – It is an application to be filed by one of the directors of the company informing the ROC the registered office of the planned company.

Form 32 – It is an application stating the fact of engagement of the planned directors on the board of directors from the date of incorporation of the planned company and is signed by one of the planned directors.

6: Receiving Certificate of Incorporation

The ROC will issue Certificate of Incorporation after careful review of papers submitted in the above stated steps. Section 34(1) cast an compulsion on the ROC to issue a Certificate of Incorporation, normally within 7 days of the receipt of documents. A Private Limited Company can start its business instantly on receiving the Certificate of Incorporation.

First Edge eFinancial Services are providing services in year 2009, and in a short extent of 2.5 years, it skilled more than 200 incorporations including all forms like Private Limited Companies, LLPs, Societies, Trusts etc.

RBI may put cap on NPAs at 5% of Advances

PSU banks with over 5% bad loans may have to sell their loans to asset restructuring companies (ARCs) in future. The Reserve Bank of India (RBI) and the ministry of finance are considering the option of putting a cap at the maximum amount of bad loans that a bank can have on its books.

The finance ministry as well as the central bank are appalled at the rising level of bad debts of the PSU banks. According to latest figures, the 26 PSU banks of the country have clost to 5% NPAs on their books. If the amount of restructured loan is also tamkn into account, then the figure touches 10%.

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Drafting of MOA and AOA

Stage 4: Drafting of  MOA and AOA
MOA is really a record which models your metabolism from the organization. It includes the primary goals, incidental/ supplementary goals for your achievement from the primary goals, some other goals and also the range associated with action from the organization as well as explains the connection from the organization} using the outdoors globe.

AOA provides the regulations from the organization for your administration of inner matters. This says the actual certified discuss funds from the suggested organization and also the brands of first/ long term company directors.

NOTICE: As the Nota identifies the actual goals as well as reasons which is why the organization continues to be created, the actual Content articles put together the guidelines as well as rules with regard to attaining all those goals as well as reasons.