Professional Updates

All about EPF E-sign and Digital Signature letter approval process Process for Getting DSC Approved: From Submission to Approval To get a Digital Signature Certificate (DSC) approved by the Employees' Provident Fund Organisation (EPFO), employers must follow a detailed and structured process. Below are the step-by-step guidelines, starting from the submission of the DSC request letter to the final approval. 1. Submission of the DSC/E-Sign Request Letter Log in to the Unified Portal under the establishment’s login section. Navigate to the DSC/E-Sign request submission page. Download the DSC/E-Sign request letter template from the portal. Complete the request letter, which includes: Three specimen signatures of the intended signatory placed in the designated space. The letter must be properly countersigned by the employer (whose name must be legibly placed below the signature). Ensure the employer’s stamp/seal is affixed on the letter. 2. Attach the Required Documents In additi

AGM notice for regularisation of Additional Director NOTICE OF ANNUAL GENERAL MEETING NOTICE is hereby given that the [Xth] Annual General Meeting of the Members of [Company Name] will be held on [Date] , at [Time] , at [Venue] , to transact the following businesses: ORDINARY BUSINESS: To receive, consider, and adopt the audited financial statements: To receive, consider, and adopt the audited financial statements of the Company for the financial year ended March 31, 2024, including the reports of the Board of Directors and Auditors thereon, and in this regard, to pass, with or without modification(s), the following resolution as an Ordinary Resolution: “RESOLVED THAT the audited financial statements of the Company for the financial year ended March 31, 2024, and the reports of the Board of Directors and Auditors thereon, laid before this meeting, be and are hereby considered and adopted.” SPECIAL BUSINESS: Regularization of Mr. XYZ (DIN-000000): To consider and, if thought fit, t

Resolution for  Nomination of Directors as Designated Persons for Disclosure of Beneficial Interest CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD [04/2024] OF DIRECTORS OF [COMPANY NAME] HELD ON [DATE] AT [TIME] AT THE REGISTERED OFFICE OF THE COMPANY SITUATED AT [ADDRESS] . Introduction: The Chairman informed the Board that, as per Rule 9(4) of the Companies (Management and Administration) Rules, 2014 , every company is required to designate a person responsible for providing information to the Registrar of Companies (ROC) regarding the beneficial interest in the company whenever requested by the ROC.  As company is not require to appoint Company Secretary, it was proposed to designate all directors of the Company as the responsible persons for this purpose, in compliance with Rule 9(5) of the Companies (Management and Administration) Rules, 2014, to ensure the Company meets its regulatory obligations. After discussion, the following resolution was passed

Trust Audit Submission Due Date Extended for FY 2023-24 The Charity Commissioner of Maharashtra has extended the due date for submitting trust accounts online for the financial year 2023-24. As per Circular No. 612 dated 26/09/2024, the new deadline for submission is 30th November 2024. Trust Audit Submission Due Date Extended for FY 2023-24 Under section 33(1) of the Maharashtra Public Trusts Act, 1950, trustees are required to have their accounts audited within six months of balancing the accounts, typically as of 31st March. Several trusts and societies have been de-registered in the past for non-compliance with this critical requirement. Trust Audit ensures the trust remains active and compliant with the Charity Commissioner. Make sure to take advantage of this extension and submit your trust accounts in time to avoid penalties or de-registration. Here is Circular No. 612 confirming the extension of the due date for online submission of trust accounts for FY 2023-24.  #TrustAudit20

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

The key difference between Section 9(3) and Section 9(4) of the Central Goods and Services Tax (CGST) Act, 2017 In the context of GST, Reverse Charge Mechanism (RCM) is indeed a key concept. It shifts the liability to pay tax from the supplier to the recipient of goods or services, under specific conditions. Here is the differentiation between the sections 9(3) & 9(4): Aspect Section 9(3) Section 9(4) Application Specific categories of supply of goods or services or both Specific class of registered persons receiving goods/services from unregistered suppliers Notification Government notifies specific categories of supplies on the recommendation of the Council Government notifies specific classes of registered persons on the recommendation of the Council

A New TDS Requirement for Partnership : 194T The recent amendment to the Income Tax Act, India, introduced a new section, 194T, effective from April 1, 2025. This section mandates the deduction of tax at source (TDS) on certain payments made to partners of firms. Let's delve into the details of this new provision and its potential implications for partnerships. Key Provisions of Section 194T Scope: The section applies to any firm responsible for paying sums to its partners in the nature of salary, remuneration, commission, bonus, or interest. Tax Deduction: At the time of crediting such sums to the partner's account (including the capital account) or at the time of payment, whichever is earlier, the firm must deduct income tax at a rate of 10%. Exemption: The deduction is not required if the total or aggregate sums credited or paid to the partner during the financial year do not exceed ₹20,000 . Implications for Partnerships Increased Administrative Burden: Firms will need

Everything You Need to Know About PPF Account 1. What is the Public Provident Fund (PPF) Scheme? The PPF Scheme is a government-backed savings scheme aimed at providing long-term investment options for individuals, offering tax benefits and a fixed rate of interest. 2. Who can open a PPF account? Any individual can open a PPF account in their own name or on behalf of a minor or a person of unsound mind for whom they are the guardian. 3. How many PPF accounts can an individual open? An individual can open only one PPF account in their own name. They can also open one account on behalf of each minor or person of unsound mind for whom they are the guardian. 4. Can a joint PPF account be opened? No, joint accounts are not allowed under the PPF Scheme. 5. What is the minimum deposit required to open a PPF account? The minimum deposit required to open a PPF account is ₹500. 6. What is the maximum deposit limit for a PPF account in a financial year? The maximum deposit limit is ₹1,50,000 in