What are the options for NGO Registration?

NGO stands for Non-government organizations which are formed to support the underprivileged sections of the society and help in the management of different issues such as social, cultural, legal, and environmental, art, science etc. There is no intervention from government in the functioning of these NGOs. People voluntarily give their name to contribute to the functioning of the NGO. In this blog we will discuss about the NGO registration.

Topics covered under this blog:

a.       What are the types of NGO registration?

b.       What is the process of NGO registration in the form of trust?

c.       What is the process of NGO registration in the form of society?

d.       What is the process of NGO registration in the form of section 8 company?

What are the types of NGO registration?

In India, NGO registration can be done in three ways. The Indian Trusts Act, 1882, Society Registration Act, 1860 and companies Act, 2013 governs the NGO in the form of Trust, society and Section 8 Company respectively.

Further, we will look into the procedure of forming these NGOs-

What is the process of NGO registration in the form of trust?

For NGO registration in the form of trust you need to clarify the following-

1.       Purpose of creating a trust

2.       Idea behind the trust

3.       Beneficiary details

4.       Properties of the trust assigned by the assignee

Further below mentioned steps will be carried out for NGO registration:

·         STEP1: Naming an NGO

The first step is to come up with the name for your NGO

·         STEP2: List of members of the trust

You need to specify, who will be the settler, trustees (at least 2) and beneficiaries for your NGO.

·         STEP3: Memorandum of Association (MoA)

You have to frame a Memorandum of Association (MoA) and trust deed which must include all the key provisions and clauses. Trust deed is executed on the stamp paper that should be of value in accordance with the laws prescribed by the government.

·         STEP4: Submission of signed deed

All the trustees and settler has to sign the trust deed, and register it with the local registrar of the area, where the NGO will be functional.

What is the process of NGO registration in the form of society?

 There are certain steps that need to be followed for the NGO registration in the form of society-

·         STEP1: Naming the Society

The first step is to select the name for your NGO.

·         STEP2: Formation of Governing Body

You need to decide upon the governing body of the proposed trust.

·         STEP3: Memorandum of Association (MoA)

Then you are required to make the memorandum of Association and by-laws of the proposed society. It consists of all the rules and regulations in relation to the registration and operation of the Society.

·         STEP4: Submitting Documents

At last, you just need to submit the MoA (Memorandum of Association), documents regarding the rules and regulations of an NGO, and other registration documents.

You have to submit all these documents with the registrar of the state, where the proposed NGO will be operating.

What is the process of NGO registration in the form of section 8 company?

Below are the steps to be followed for the NGO registration in the form of section 8 company registration-

·         STEP1: Obtaining the Digital signatures

The first step is to obtain the digital signatures for all the proposed directors of the company. These digital signatures will be required to sign the application of incorporation and few other related documents.

·         STEP2: Naming the Section 8 Company

There is a RUN service available on the MCA portal, which you can use for the name approval of the NGO. You will be allowed to propose 2 names for the proposed Company.

·         STEP3: SPICE form

This is the main step under which incorporation application is filed in SPICE form along with the necessary documents like MoA (Memorandum of Association), AoA (Article of Association) of the company. If the proposed directors of the company do not posses DIN then they can directly apply for DIN (Director Identification Number) through SPICE form.

·         STEP4: Form INC-12

You need to submit an online application in Form INC-12 to the respective ROC to get the license issued.

·         STEP5: Formation of an NGO

After the proper inspection of the application of registration by ROC, License will be issued; along with the Company’s PAN&TAN number.

Hope you have a clearer picture regarding the NGO formation in India.

For more information please contact Enterslice.

Source url – https://entersliceindia.hatenablog.com/entry/what-are-the-options-for-ngo-registration

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What were the Effects of GST on MSME Business

Have you ever come across the abbreviation MSMEs while going through the newspaper (especially business columns) or watching business news on TV?  If yes its good, if not then let us inform you that MSMEs stand for micro, small and medium enterprises. MSMEs are considered to be playing a very important role as they are expected to offer higher employment by 2020.

This sector has also been contributing to the government’s initiatives; MAKE IN INDIA and SKILL INDIA.

The introduction of GST (Goods and services tax) led so many questions and confusion to rise. People had expectations, what all would be affected by it.  

Difficulties faced by the MSMEs on the introduction of GST

·         Whenever we try to do something, we are faced with the challenges that may or may not prove beneficial for everyone. So let’s take a look at what all situations were faced by the MSME, when GST came into effect.

·         During the initial times, there was a lot of confusion as everybody couldn’t grab the fundamentals of GST

·         There were even some loopholes in the infrastructure, which actually took little long to stabilize, Input tax credit was also noticed to be delayed in few cases, which ultimately affected the MSME industry.

·         Goods and services tax disrupted the supply chains, especially in the case of small traders, who were supplying to big manufacturing companies.

Effect on liquidity due to Daily Sales Outstanding (DSO)

Daily sales outstanding refers to the number of days, it takes to collect the payments once you have supplied the goods or services.

According to the reports published in the economic times, daily sales outstanding turned out to be higher, after the introduction of GST registration.

Changes in the cost of borrowing for MSMEs

Most the MSMEs had outstanding inventories, which would be taxed under the new GST regime. However, as these MSMEs lacked compliance infrastructure to have the tax invoices for those inventories.

This lead to the weak credit profile, due to which these MSMEs could not the avail the bank loans, which ultimately pushed them to approach non-banking financing options, And these non-banking financial entities charged a higher rate of interest in comparison to the banks.

Effect on the sales of MSMEs

Because of the introduction of the GST registration, there was a decline in the sales of MSMEs. GST brought more steps, which caused delays in the whole MSME Registration procedure. This also led to high costs, which was not under control.

Future Expectations

Once MSMEs become the part of GST regime, these would be a part of larger compliance climate. There would be a better level of preparedness and discipline in conducting the business.

Our government of India is also committed to providing support to these MSMEs, ultimately would take a positive turn for everybody’s benefit.

These were all the effects of GST registration on MSMEs, but in the long run it would benefit us all.

Source url - https://enterslice1.weebly.com/blog/what-were-the-effects-of-gst-on-msme-business

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A detailed Process of TDS Return Filing

Are you looking to file your TDS returns? Do you know the procedure of filing the TDS returns? What is the meaning of TDS? If you are wondering with the same question and looking for the answers; then let us inform, you are at the right spot.
In this article, we will explain the meaning of TDS returns, the process of TDS return filing, and documents required for filing the TDS returns.

What do you understand by TDS returns filing?

TDS stands for tax deduction at source, which is collected by the Income-tax department whenever there is a transaction taking place.
The next part of it is to file the TDS returns, which is a quarterly statement; that has to be submitted to the I-T department.
There are certain details (listed below) that need to be handy while during TDS returns filing-

1. PAN of the deductor and the deductee
2. Amount of tax paid to the government
3. TDS challan information
4. Valid TAN, must be registered for e-filing
5. Digital signatures (DSC), (registered for e-filing, in case you want to upload the documents using DSC)
6. Others, if any

Further, we will take a look at the process of TDS returns filing.

How do we file TDS returns?

TDS returns filing involves really simple steps and can be filed smoothly if follow the steps properly, which are listed below.
 STEP1: visiting the online portal

The first step is to visit the web portal of the Income tax department. And click on the login here (red box).

STEP2: Filling the credentials

Then you have to fill the credentials asked in the above image. In user id, you have to provide the TAN and mention the further details as asked.

STEP3: TDS upload

You just need to click on the upload TDS tab, circled in red to move ahead with the process of TDS returns filing.

STEP4: selection of details

Next, you just need to select the valid options as per the requirement. Once you are done with the selection of options, you just need to click on the validate tab.

STEP5: validate the TDS returns

There are basically two modes of validating the TDS returns. You can either upload the TDS documents by using the DSC or by using Electronic verification code (EVM).

Through DSC

Here you just need to upload the zip file of TDS. Once you have uploaded the zip file, you will be asked to upload the digital signatures, as shown in the image below.

On clicking the upload tab, shown in the above image; a confirmation will appear on the screen and a confirmation e-mail will be sent to you.

Through EVM or Electronic Verification Code

If you do not have the digital signatures, then you can validate the TDS returns through EVM

You just need to upload the zip file of TDS and click on the E-verify tab. Further, you can select either of the options, as mentioned in the image below.

At last, you just need to enter the EVM code and click the submit tab. Hence you are done with the TDS return filing.

For more information please contact Enterslice.

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Description of Tax audit limit and due date

Have you ever heard about the term audit or tax audit? Who does this work tax audits? Take a deep breath we will answer all your questions one by one. It basically involves the verification of the accounts maintained by the assessee. Auditors validate the Income the tax computation and compliance with the laws of income tax. A certified chartered accountant carries out the auditing of accounts.

Further, we will discuss the tax audit limit, audit due date etc.

What do you understand by tax audit limit?

There are certain tax audit procedures and tax audit limit, whose provisions are mentioned under the section 44AD of the Income Tax. Let’s take a look at what are the limits and basically who all have to undergo Tax Audits.

In accordance with the Section 44AB, a tax audit is required by the business entities, working professionals, and person who are already enrolled under the Presumptive Taxation Scheme.

In the case of Business

If you operate a business in India, and your total turnover sales or gross receipts are more than Rs. 1 crore in any of the previous year, then there would be a requirement of Tax Audit.

In accordance with section 2(3), business is defined as any trade, commerce, manufacturing activity or any adventure or concern in the nature of trade, commerce, and manufacture.

In the case of a Profession

If you are a working professional and your gross receipts in that profession are more than Rs. 50 lakhs in any of the previous year, then there would be a tax audit.

If you are wondering, what all professions are involved in this, there is a list mentioned below-

1.       Engineer

2.       Legal Professionals-Advocate or lawyer

3.       Technical consultant

4.       Accountant

5.       Technical Consultant

6.       Medical Professionals-Doctor, Physiotherapist etc

7.       Architect

8.       Authorized Representative

9.       Interior Decorator

In the case of the Presumptive Taxation Scheme

There is a presumptive taxation scheme available under section 44AD, if you are enrolled under this scheme or the annual turnover or sales exceeds Rs. 2 crore then there would be a requirement of a tax audit.

You have to obtain the tax audit report if you are already enrolled under the presumptive taxation scheme (Even if the profits made by you, are lower than the mentioned amount under the presumptive taxation scheme).

Hope you have an idea by now, regarding who has to obtain the tax audit reports and what are their limits.

Have you taken a note of next due date of tax audit reports? 

The tax audit due date for 2019 has not been announced yet by the Income-tax department. But still, just to give an idea; for the year of 2018, the tax audit due date was 30^th September.

Keep yourself audit ready beforehand.

For more information, please contact Enterslice.

Source url - http://enterslice.over-blog.com/2019/01/description-of-tax-audit-limit-and-due-date.html

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