What is the procedure for trust registration?


Non-Government Organizations, NGO are those entities which work for charitable purposes without an aim for any profits for self. In India, NGOs can be registered as any of the following:
1.     Trust under Indian Trusts Act, 1882
    1. Society under Societies Registration Act 1860
    2. Section 8 Company under Companies Act, 2013
An NGO can be formed as a Public Trust (charitable trust) for the benefit of the general public with a specific objective that can be related to education, health, sanitation, eradication of poverty etc.  It is different from the formation of a Private Trust where a particular group of individuals, a family or a specific class of people becomes the beneficiaries to the trust.
What are the guidelines for a Trust Registration?
A)     “Any person who is competent to contract under the applicable laws or has the power to transfer the property that is transferable can create a trust.” A Trust like all the organizations is required to be registered. Trust Registration is a fairly easy process.
B)    Before starting the process of NGO Registration, few details are required  to be in place:
a.      Name for the trust
b.     A Registered Address for the trust
c.      Objects of the trust which must be for the good of the public at large.
d.     Two trustees of the trust
e.      One settler of the trust
f.        Property of the trust which may be movable or immovable.
g.      Funds that shall be accepted: donations, grants, contributions etc
C)    Next step is to draft a Trust Deed which shall mention the details as discussed above. Apart from those, the Trust deed shall also mention following
a.       Powers with the trustees.
b.      Bank details of the Trust
c.       The procedure in event of dissolution/ winding up
d.      May provide for the procedure of amalgamation with another NGO
e.       A clause for Accounts and Audits of the Trust
The Trust Deed must be printed on stamp paper of requisite value as per the State.
The Trust Deed must be accompanied by one (1) passport size photograph & a copy of identity proof of each of the trustees, settler and the witnesses.
D)   The Trust deed shall then be registered in accordance with the Indian Trust Act of 1882 with the local registrar of the state. Along with the Trust Deed, two (2) copies of the Trust Deed signed by the settler on all the pages have to be submitted.
For the registration, the trustees, settler and the witnesses must be present at the Registrar office along with their identity proof in the original.
E)    The registrar shall scrutinize the documents, the deed for all the required details and all the documents. Upon his satisfaction, the Registrar shall enter the details in the official record, keep one copy of the trust deed for the record and return the original Trust deed to the applicants.
F)    The Trust Registration Process is now complete and the Public Trust can now be operated in accordance with the Trust Act. The Public Trust is now ready to be operating as a Non-Governmental Organization for charitable purposes.
Source url - https://enterslice1.wordpress.com/2018/07/31/what-is-the-procedure-for-trust-registration

What is TDS and when it is required to file TDS return?


TDS stands for Tax Deducted at Source. It is a type of indirect form of advance tax which is deducted from the earnings of Individual or organization prior to the amount is credited in account. Through imposing tax on the income of individual/ organization, our government generates revenue.
Rules & regulations regarding TDS are governed by the provisions of Income Tax Act, 1961. It is applicable on the income earned regularly or occasionally. It is not only limited to salary but also applicable on commission, interest, professional fees etc.  As it is payable on the earnings of individual or organization therefore tax liability arise only in case when earnings takes place.  TDS deduction takes place at the time when cash, cheque or credit payment is made to the payee account. TDS is payable as certain percentage of overall amount.
Advantages of TDS imposition
There are numerous advantages of TDS return filing. Some of them are as follows:
·         It prevents tax evasion.
·         Duly collection of tax and in timely manner.
·         Numerous people come under the tax bracket due to TDS.
·         For the government of India, TDS collection is a steady process.
TDS Return Filing
TDS return is a detail of TDS transactions made during the quarter. It is a quarterly statement which is required to be submitted with the Income tax department by the deductor. TDS return statement consist the PAN details of deductor and deductee along with the details of tax payment made to the government as well as information of TDS challan. It is mandatory for deductors to file TDS return.
TDS return filing due dates
Following are the TDS return filing due dates:
·         For the 1st quarter (1st April to 30th June) – 31st July
·         For the 2nd quarter (1st July to 30th September) – 31st October
·         For the 3rd quarter (1st October to 31st December) – 31st January
·         For the 4th quarter (1st January to 31st March) – 31st May
Provisions regarding late TDS Return Filing
As per the income tax provisions, late filing may attract penalty. There are penalty provisions regarding late filing of TDS return or when TDS return is not filed within the stipulated time as mentioned above. Fine penalty is imposed till the payment of TDS.
TDS Return Filing Forms
There are various types of TDS return filing forms and it depends upon the eligibility criteria. Every deductor has to pay the tax liability within the stipulated time and in prescribed forms.
Following are the types of TDS return filing forms on the basis of nature of income on which tax is deducted.  
1.      Form24Q- This is for TDS deduction on salary as per section 192 of the Income Tax Act, 1962.
2.      Form 26Q- This is in case payments received other than salary as per section 193 and 194 of the Income Tax Act, 1961.
3.      Form 27Q- This is in case payment made to NRIs and foreigners other than salary as per section 200(3) of the Income Tax Act, 1961.
4.      Form 27EQ- This form shows the Tax Collected at Source (TCS) by the seller as per section 206C of the Income tax Act, 1961.
Forms are required to be furnished by the deductors with the Income tax Authority in due time.

Gst- One Government One Tax, This Article On GST- One Solution


What Is GST Registration?

GST registration is an official regime in which the businesses whose turnover for the business is more than INR 2,000,000 (20 Lakhs) has to register themselves as normal taxable corporate entity. If the organization is not registered under GST regime it will be treated as an offence under the corporate laws and the business will be penalised heavily for it. The normal time period for a business to register itself under GST Regime is between 2-6 Working Days.

Businesses Which Should Register for GST:

v  Corporates and individuals who were registered under the pre GST laws like excise, VAT and Service Tax etc.
v  The businesses whose turnover exceeds the limit of INR 20 Lakhs.
v  Agents of a supplier and Input Service Distributor.
v  All the e- commerce aggregators.
v  The people who supply through e commerce aggregator.
v  People who are supplying the information of any kind of data from a place outside to someone in India, and that person is not a registered taxable person.

Documents Required for GST Registration:

v  The first and prime most important is the PAN of the Applicant without which no online GST registration can be done.
v  Then you need to show the Aadhaar card for the applicant.
v  The personal identity proofs of all the directors of the corporate entity to be registered.
v  The proof for address verification for the business location.
v  The bank account statements and also a copy of cancelled cheque is mandatory to have.
v  It is also required to produce the Digital Signature of the directors and applicants.

Penalty for not registering under GST Regime:

In case any business does not register itself for GST Regime, the business will have to pay heavily for the penalty in this case.  The amount of penalty is 10% of the tax amount which has not been duly paid and the minimum subjected amount for this penalty is INR 10,000. If the business is found to do this mistake voluntarily the amount of penalty can be even 100% of the taxation not paid duly.

Process of GST Registration:
The entire GST Registration procedure is divided here into following basic 11 steps for the better understanding to a common man and they are as follows:
v  You first need to visit the GST portal and click Register on it.
v  Then the second step requires you to fill the details like type of taxpayer, state and district of your location of business, name of the business along with the PAN of the business for which you want to register for GST. The email ID and mobile numbers for further communications and OTPs. Then click on Proceed.
v  You will now be asked to enter the OTP sent on that number you mentioned in the previous detail. Enter and Continue.
v  You will now get a Temporary Reference Number (TRN). Note it for further use.
v  Then you are required to again Go the GST portal and Click Register Now.
v  Choose TRN. Now enter the TRN provided to you over the mail and proceed it further.
v  Again you will get an OTP and you need to enter it and proceed even firther.
v  The status of the application will be shown as Drafts. Click on Edit option.
v  Then you need to fill all the details and submit relevant documents.
v  Then you need to verify the information submitted, go to the verification page and tick on declare and submit the application.
v  You will now get a message for successful registration and also the Application Reference Number.


Everything you need to know about share purchase agreement


A Share purchase agreement (SPA) is a type of agreement under which terms and conditions are set out in relation to sale and purchase of shares in a company. It is mainly a contract of sale and purchase of share capital of the company. Under this, buyer is liable to pay certain amount i.e. Purchase price and thereafter share purchase agreement is executed. There is a requirement to review stamp duty under the relevant jurisdiction. This agreement shall be signed by both the parties i.e. seller and purchaser. Share purchase agreement consist the clauses which deals with the purchaser’s rights & obligations in the capacity of shareholder.
Core Elements of Share Purchase Agreement
Ø  Description of the shares to be acquired
Ø  Purchase Price
Ø  Representation & warranties
Ø  Obligation regarding Confidentiality
Ø  Non-Competition
Why there is a need of Share Purchase Agreement?
Share purchase of a company constitutes that shareholders are the owners of the company. At the time shares are purchased, no existing contract is altered. In case shares are sold by the shareholder in a company then there is a break of relationship between the company and the shareholder.  Share Purchase Agreement defines the terms & conditions between the company and shareholder.
Following below mentioned matters will be dealt under share purchase agreement:
1.     Parties to the Share Purchase Agreement
This type of agreement comprises seller & acquirer.
2.     Recitals
Recital of an agreement defines the relationship among the parties. Object and roles of the parties are also defined there under.
3.     Share Transfer
Whenever share transfer takes place in a company, ownership will pass to the transferee. There will be description of rights & liabilities of the transferee.
4.     Condition Precedent
There must be an exhaustive clause which will provide necessary permissions & permits. It should clearly state the person responsible for obtaining each.
5.     Confidentiality
There should be clause which will be regarding confidential information shared among the parties involved.
6.     Force Majeure
This clause is applicable in case of unwanted situation arise such as financial crisis. It strengthens the interest of parties involved in agreement.
7.     Dispute Resolution
In case of any dispute among the parties, it shall be referred in arbitration to resolve dispute.
8.     Jurisdiction
There will be an applicability of Indian laws where the registered office of the company is situated.
Advantages of Share Purchase Agreement
1.     No involvement of third party
Shares can be purchased without the intervention of any third party. Therefore the process of share purchase is much distinct in comparison to asset purchase.
2.     No liability for debts
There will be no liability of seller of shares for the company’s debts. As company has a separate legal personality from its directors and shareholders. Whereas in comparison to asset sale, all the current liabilities will be kept by the seller, unless negotiations have been made with the buyer to take them over with the business
Disadvantages of Share Purchase Agreement
1.     Inheriting outstanding problems
Seller’s company will be inherited by the buyer which implies that problems will also be inherited which is in existence at the date of sale.
2.     Risk
There is an involvement of greater risk in comparison to asset purchase as buyer inherits a company. Warranties are also there which are required to protect the buyer.
Source url - http://enterslice.over-blog.com/2018/07/everything-you-need-to-know-about-share-purchase-agreement.html

Why is Non-Disclosure Agreement Required?

Non-Disclosure Agreement
Any written agreement executed between two or more parties with an intention to restrict the parties from disclosing any kind of proprietary or sensitive information is known as Non-Disclosure agreement.
Such agreements have binding clause which are applicable on either one of both the parties named in the agreement.  Thus not only restricts them from sharing such information but also from making profits as a result of such additional knowledge.
These contracts are gaining importance as in this competitive world sharing confidential information  is crucial in the process of securing investment, finding potential partners, hiring key employees or convincing potential clients etc.
What is confidential information?
Any information can be confidential information based on the business activity undertaken by the organization. For example for a manufacturing company it could be the manufacturing procedure, for a food outlet it could be secret recipes, for software development company it could be codes etc. It basically represents the information which is viable for conducting the business in a profitable manner. 
Other than above mentioned business specific information, from a business point of view following information is considered as critical and must be protected:
ü  List of clients
ü  List of sales contacts
ü  Financials of the company
ü  List of suppliers
ü  Trade Secrets
ü  intellectual Property
Various Kinds of Non-Disclosure Agreement
Based on the nature and purpose of agreement, non disclosure agreement can be of various types. On the basis of nature, it can be classified into two categories i.e. Bilateral or unilateral.
When a single party to the contract is obligated not to share or profit from confidential information described in the contract, then it can be termed as a Unilateral Confidentiality Agreement.
On the other hand, if both the parties to the contract are obligated not to share or profit from confidential information described in the contract, then it can be termed as a Bilateral Confidentiality Agreement.
On the basis of activity non disclosure agreement can be of following types;
·         Inventor Confidentiality Agreement
·         Employee Non-disclosure Agreement
·         Interview non-disclosure agreement
·         Customer Confidentiality Agreement
·         Standard non-disclosure agreement
Requirement of Non- Disclosure Agreement
To understand the requirements and benefits of a non-disclosure agreement for the business its benefits to the organization are to be understood.  These benefits include the following:
1.      It protects the organization’s proprietary information. Such information is shared with employees and other external parties organization deals with in general business flow.
2.      It imposes a liability on employees, clients, and consultants etc not to disclose such information to any outside party or any third party outside the contract.
3.      This confidentiality agreement secures the key information of the organization from being misused with an intention to harm the organization or to make extra profits.
4.      If these agreements are in writing, then they have the added advantage of being legally acceptable. Many a times an oral agreement is not recognized under the eyes of law. Thus, if one has a properly executed written document, then in case of any violation of such contract the organization can claim damages by taking legal actions.
5.      Many a time’s a contract’s profitability is dependent upon the confidentiality of some strategically important information or knowledge. In absence of these non-disclosure agreements, such information can be easily leaked and lead to undermining the viability of such project.
Source url - http://enterslice.over-blog.com/2018/07/why-is-non-disclosure-agreement-required.html
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