Professional Updates

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