Tag Archives: Startup CFO Bangalore

Legal Complainces for StartUps

Startups are prone to go haywire in terms of delivery, execution, and setup costs. Amongst everything, it gets taxing to think and execute tasks related to tax. But this is an important financial element that one can not afford to overlook. A startup may incur losses in initial years and those go unaccounted. But then there are chances to save a new business from further financial losses by shielding it with tax benefits.

Here are five important tax tips for startups useful at many levels – from starting to each stage of progress.

1. Compliance With Tax Norms Makes Life Easier

As a startup, you would want to focus all your efforts and energies in offering better solutions to your customers. The entire concept of compliance is to set you free from other legal requirements and do what you do best – focus on core business. Tax norms help businesses to get clarity on implications of tax in the finances. Once done, the aim should be to have better financial planning by keeping in mind the applicable taxability and other compliance-related expenditures.

2. Hire/Consult Tax Professionals

Professionals in the industry can help you to execute all the necessary formalities, ensuring completion of all those nitty-gritty of the subject matter involved. For some, you will also need advice from tax experts on how to plan your finances by incorporating the tax implications concerned.

Opt for business professional services to ensure complete control over tax-related compliance. Having a professional consultant on-board will also help you prepare for any unforeseen contingencies. Expert opinion in the case of compliance is recommended in case of tax-related compliance queries.

3. Learn About the Broad Norms

Awareness plays a major role when it comes to knowing the legalities involved in running a business. And since the tax is one of the core concerns that new businesses have, an overall & general know-how becomes indispensable. It is essential that startups get acquainted with the applicable laws and provisions. Complying with such standards may prove to be a daunting task given the wide scope and comprehending deeper aspects involved. The Income Tax Act of India, 1961, allows legal authorities to strictly govern income tax along with rigorous checks and harsh penalties imposed upon defaulters.

4. Know Your Rights and Benefits as a Taxpayer

Tax regulations will certainly impact your business as it has its own set of implications that your business cannot escape from. The best thing is to know the rights that you enjoy as a taxpayer. For example, 100per cent tax exemption on profit gains for the first three years with the exception of Minimum Alternate Tax (MAT, 18.5per cent). Then there are exemptions on capital gain tax, the abolition of angel investment tax, and SEBI directed Funds of Funds. Such benefits must be observed and startups should leverage plenty such tax laws and regulation. Doing so will also improve the acceptability levels with VCs, investors, and banks.

5. Deeper Insights for Future Planning

Allocating resources is the key to the streamline all the other business activities and accordingly channelize the finances for the team. For better returns and future financial goals, avoiding taxation can prove disastrous. Startups should dwell deeper to gain important insights that will help those at the helm of affairs to take right decisions. You will learn to allocate resources – channel your finances for better returns – envision financial goalkeeping taxability in mind. There are chances that your future launch may get affected by the tax norms and other requirements. Ensure a tight watch over every minuscule change in the tax regime and align it for your business requirements.

Most of the new startups are stringent with taxation but they lack clear information since the subject has many branches associated with it. Startups should also ensure a pervasive compliance management system with Chartered Accountants, lawyers and tax professionals mentoring it. Try incorporating technology to manage all the compliances with utmost diligence to ensure timely tax payments and completion of all legal formalities pertaining to it.

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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E Mail ID : vidyasunilassociates@gmail.com

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Cell No. : +91 9739834819

Angel Tax

However, it is time for startups to breathe at ease as angel tax is about to be a thing of past. As per media reports, the income tax department has notified about 120 startups that they are exempted of angel tax.

Business daily Livemint reported that about 150 firms had applied for tax relief of which 120 have received the tag of ‘startup’. The intimation was sent to startups in the last few days under a new scheme announced in February which brings an end the much talked about angel tax in the startup community.

On February 19 this year, the Department for Promotion of Industry and Internal Trade (DPIIT), in an announcement, broaden the definition of a ‘startup’ and exempted investors and entrepreneurs from the so-called ‘draconian’ angel tax. As per the new norms, an entity is a startup up to 10-years of its establishment and its turnover hasn’t exceeded INR 100 crores.

Anuj Golecha, Co-Founder, Venture Catalysts says with the relaxation of angel tax norms, the government has given a major relief to startups. Earlier there were a lot of redundancies, stretched timelines, and red-tapism due to the procedures, which will now be eliminated.

“This move will further ensure a conducive environment and enable quick processes for budding entrepreneurs. These numerous measures have widened the scope of startups and eased investment in startups across the network, which is a very positive development,” he said.

Even though the government has addressed the problem, investors are now keen to understand if they could implement the notification smoothly. Anil Joshi from Unicorn Ventures is sure these reforms will evolve and the government will actively keep making changes as system demands.

“However, if they are not implemented properly then I fear that angels may dissociate themselves from investments as no one wants to get into scrutiny for investment from tax paid income,” he added.

What Next?

Now that angel tax will have been relaxed and it will haunt fewer startups, can India truly be startup nation? Well, honestly – there is a long way to go.

Presently, India stands tall among the top countries as a startup nation. However, at the ground, the government and ecosystem have a lot of work to do to truly call India a startup nation.

From StartupIndia to DigitalIndia, there have been several initiatives that have been kicked off by the central government while on the other side even states have tried to nurture entrepreneurship in their regions. But often while discussing regulator related issues, we often forget to seek Indian Inc’s participation to develop the ecosystem.

“We need active participation from corporates to make the ecosystem more vibrant. They need to actively involve with startups for a solution and also actively scout for acquisition,” Joshi says.

On the other hand, Lakshmi Potluri-CEO, DCF Ventures says the efforts of both the state and central government have started to show. Having said, rural and non-tech entrepreneurs still need a lot of nurturing and handholding to grow into scalable businesses.

“Entrepreneurs outside tier I cities with great ideas are yet to be tapped and nurtured as access to information/mentors is limited or nonexistent. The ecosystem should look at creating opportunities to showcase a variety of startups to the industry in different domestic, industry shows, global platforms, etc. Lastly, more cross border best practices exchange from successful ecosystems such as Israel, Germany etc., will be a wonderful opportunity and insight for those who are running such startup/entrepreneurship facilitation ecosystems,” she adds.

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Website : http://www.vidyasunilassociates.com

Legal Complainces for StartUps

Here are five important tax tips for startups useful at many levels – from starting to each stage of progress.

1. Compliance With Tax Norms Makes Life Easier

2. Hire/Consult Tax Professionals

3. Learn About the Broad Norms

4. Know Your Rights and Benefits as a Taxpayer

5. Deeper Insights for Future Planning

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Website : http://www.vidyasunilassociates.com

Cell No. : +91 9739834819

VidyaSunil & Associates

VidyaSunil & Associates is into practice of Tax Compliance, Company / Corporate Law Compliance, Accounts, Audit, Fund Raising, GST, Start Up Consultancy established with a objective to provide wide Spectrum of Activities under One Roof.

We aim to be part of your team & provide value added services in a smooth and efficient manner while leaving you to focus on developing your business. We provide a long-term solution that understands your business through personalized “Solution Based Consulting”.

Professional Services are catered in below mentioned expertise fields:

We provide the best advise & practice for Startups / SME / MSME on matters relating to Business Planning & Development, Mergers & Acquisitions (M&A), Business Valuation, Tax Compliance – (Direct & Indirect Taxes).

We are specialized in catering to IT / Non IT / Health Care & Startups – Out Sourced CFO Services / Virtual CFO Services: Accounting / Book Keeping (complaint with I GAAP / IFRS) including Implementation. MIS Reports, Cash Flow Analysis, Financial Modeling, M&A, Costing & Budgeting.

Tax Compliance includes Direct & Indirect Taxes ( including Handling of Litigations/ Attending to Personal Hearings ) Expertise services in Commercial Taxes – GST / KVAT, Central Excise, Service Tax, SEZ, STPI, Import Export Consultations, FEMA & Allied taxes.

Acting Consultant / Advisor & Mentor to various Startups / SME & MSME Ventures.

We are founded by a team of experts in accounting, auditing and taxation services as now grown and diversified into a multi-dimensional consulting firm having footprint not just in the conventional areas like Statutory Audit, Internal Audit, GST Audit, Investigation but also in new sphere as well.

Our Services:

We offer a wide array of professional services in the areas mentioned below:

Accounting and Payroll Services

︎Setting up of accounting system

︎Book keeping and general accounting services

︎Preparation of Financial Statements

︎Cash Forecasting

︎Budgeting

︎Financial reporting & Analysis

︎Liaison with Financial Institutions and Banks

Strategizing, Planning and Compliance, Advisory and Representation

︎Direct Taxes (Income Tax, TDS, Wealth Tax)

︎Indirect Taxes (GST, PT & Others)

︎Assistance in Statutory Compliances

︎Filing of Income Tax Returns for Individuals, Partnership forms, LLP, Private Limited companies

︎Calculation, Review, Reconciliation, Payment & Filing of GST, PT, TDS, e-TDS, PF, ESI, etc.,

Statutory Registrations and Compliances

︎Registration of entities as a proprietary concern, partnership firm, private limited company, public limited company, trust, AOP etc

︎Registration with different Statutory bodies of PAN, TAN, GST, Professional Tax, Shop & ︎Establishment (Labour Licence), Provide

︎Export & Import Licence, MSMED, etc.

︎Assistance for compliance with the procedures of company law including maintenance of statutory registers, filing of statutory return

︎Meetings and other day to day operational matters.

Looking forward to hear back from you for any support/assistance

Advice for Connect :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. : 9739834819 / 9480633382

Outsourced Accounting Services

We are a 10 year old company based out of Bangalore and engaged in providing a range of services to our clients who are mainly drawn from the IT and services sectors.

Our team includes professionals of diversified fields from post graduates, who are well versed in the services sector and manufacturing, construction sector.

We cater to the needs of many IT , Services and Manufacturing Companies including MNCs. You can find the complete list of detailed professional services in our website.

We provide services in terms of the following :

Virtual CFO services
Accounting and book-keeping services
CFO/Controller support services
On-line payroll and statutory compliances
Direct and indirect tax compliance services
GST related services including filing of multiple returns, etc
Obtaining GST refunds including filing of refund claims, follow up with the Department, etc.
Handling of service tax/GST/VAT audits, replying to show cause notices, filing of appeals, etc
Handling issues related to VAT/service tax including pending re-assessments, investigations, etc
Transfer pricing related services
Company Secretarial services including maintenance of minutes, ledgers, etc
Due Diligence related services

We can also help in obtaining refunds for exporters, under the GST regime.

Our delivery team is well trained to handle recognized packages like SAP, TALLY, SAGE and QUICKBOOKS.

We would be pleased to offer our services to your Company, on highly competitive rates.

At a time when your cash flows could have been impacted due to the prevailing Covid situation, we could be of value to you.

Advice Connect :

VidyaSunil & Associates

Web : http://www.vidyasunilassociates.com

Cell No. : 9739834819 / 9480633382

File your Income Tax Returns

As per current tax laws, the basic tax exemption limit applicable to an individual depends on the tax regime chosen by him/her. If an individual opts for the new tax regime, then basic exemption limit will be Rs 2.5 lakh irrespective of his/her age.

However, if an individual opts for the old tax regime, then basic exemption limit depends on the age of the person. Currently, the basic exemption limit for resident individuals below the age of 60 years is Rs 2.5 lakh. For senior citizens aged 60 years and above but below 80 years, income up to Rs 3 lakh is exempted from tax.
For super senior citizens (those above the age of 80 years), the basic exemption limit is up to Rs 5 lakh.
Individuals who fall under seventh proviso to Section 139(1) are as follows:

a) who have deposited an amount or aggregate of the amounts exceeding Rs 1 crore in one or more current accounts maintained with a banking company or a co-operative bank; or

b) who have incurred an expenditure of an amount or aggregate of the amounts exceeding Rs 2 lakh for himself or any other person for travel to a foreign country; or

c) who have incurred expenditure of an amount or aggregate of the amounts exceeding Rs 1 lakh rupees towards consumption of electricity or;

d) who full-fill such other conditions as maybe prescribed.

Therefore, if you are required to file ITR mandatorily due to any of the conditions mentioned above, then ensure that you have filed your tax return before the deadline or else late fee will be levied even if your gross total income is below the taxable limit.

Advice for contact :
VidyaSunil and Associates
Web : http://www.vidyasunilassociates.com

Hope anti-profiteering law won’t have to be used: FM Arun Jaitley

Finance minister Arun Jaitley has expressed the hope that the government
will not have to use the anti-profiteering provision of the goods and services tax (GST) and said prices should drop overall under the new regime to be put in place on July 1.
Jaitley said in an interview that there may be some challenges initially, but expects
companies to get accustomed to GST quickly, calling for patience as the reform is rolled
out.

“On an overall basis, the net weighted average of the whole consumption basket is less
than what it was,” he said. “So, in terms of weighted average it should come down.”
India is one of the few countries that has shown it has the ability to carry out structural
reforms, Jaitley said, citing insolvency laws, overseas investment reforms and the Air India disinvestment plan.

On some sections of industry seeking a GST deferral, the minister said the government
has been atypically ahead on this count.

“Normally, in a reform process, the private sector is ahead of the government,” he said.
“This time government seems way ahead of private sector. For an industry association to
say postpone it in face of a constitutional amendment was highly regrettable.”
The minister expects companies to pass on the benefits of GST. “There is already an inbuilt mechanism of anti-profiteering clause,” he said. “I hope we do not have to use it. It should act as a deterrent.” GST is expected to reduce incidence of taxation on goods by
providing full credit for taxes paid on inputs.

The anti-profiteering clause has harsh provisions including cancellation of GST registration of those not sharing gains.

He said GST — which replaces 17 taxes such as central excise duty, service tax, value-added tax, and 23 cesses —was an efficient and simple tax.

“There will be challenges initially,” he said. “There can be hiccups even in the most perfect technology but the beauty of a perfect technology is that it removes those hiccups as soon as possible. This is a reform that is in the interest of the common man, traders,
businesses, industry and the whole country. You need to be patient.”

In response to a question on the possible boycott of the proposed midnight launch ceremony by some political parties, Jaitley said GST is a ‘saanjhi vyavastha’ (joint mechanism) for the whole country that was finalised with the contribution and support of all parties.

“We have had consultation at every stage of the formulation of the new tax. At the time of the constitutional amendment, we incorporated suggestions made by Congress,” he said. “All bills have been approved by them. Their state governments have passed
GST legislations. Finance ministers of the states where their party is in power have participated in the council and agreed to the GST framework.”

He said India had created a federal institution in the GST Council and hoped that the tradition of decision-making by consensus will be followed in future as well.

KEY POLICY CHANGES
India is one of the only countries making such key policy changes, he said.
“The whole world accepts that if anyone has shown the potential to carry out structural reforms (in the current global situation), it is India only. We carried out FDI reforms, we got largest FDI in the world… The government and prime minister have shown that political-level corruption can be ended,” he said.

Source : Economic Times

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Retailers need to file single GST return every month: Revenue Secy

Days before the rollout of the landmark GST, the government today sought to dispel the notion that the new tax regime will be cumbersome and compliance- heavy, saying taxpayers need to file only one return every month, similar to what they presently do.

In an interview to PTI, Revenue Secretary Hasmukh Adhia said the notion that assessees will have to file three returns every month is unfounded and retailers or B2C dealers need not give invoice wise details every month.

“Eighty per cent of the businesses will have to simply file total turnover detail in return because they are all B2C dealers or retailers. Return filing is very easy, people need not worry about filing process, it is very transparent and is done by machine,” Adhia said.

Explaining filing of returns, he said when a supplier uploads details of sale invoices, a GST Return-1 is generated by 10th of next month.

The details from the suppliers in GSTR-1 automatically gets updated in the GST Return-2 (GSTR 2) of the purchaser. GSTR-2 is to be filed by 15th of next month and is just a few clicks on computer. GSTR-2 doesn’t need full filing of return.

“GSTR 2 is not to be filed by anybody. It will be appearing in the computer on their own account and they can confirm it. If there is any transaction missing in purchase which computer is not showing because the person from whom you bought has forgotten to put it, then you get a right to add it. It is an auto-populated return. Click it and accept it online,” he said.

Adhia said retailer and B2C suppliers need not worry about the return filing procedure as they have to file only turnover wise detail in GSTR-1.

While only B2B dealers have to file both GSTR-1 and GSTR- 2, retailers do not need to file the GSTR-2 as they have to only match with what the dealer has uploaded on the GST Network.

“Ordinary people need not worry…It is not at all complex and people need not worry. 80 per cent of the businesses will have to just file total turnover,” Adhia said.

By 17th of the month, both the supplier and the recipient would have to reconcile the invoice details and file the third return (GSTR-3) by 20th of the month.

GSTR-3 is combination of GSTR-1 and 2 and is computer generated. It gives the summary of the total output tax liability, input tax credit and the difference is the tax liability for the month.

“Out of three returns which are prescribed, only one return has to be filed by the retailer. The remaining two returns are auto-generated by the computer which is only a facility given to them to see so that if there is any mistake they can correct it,” Adhia said.

Adhia said only in case of B2B dealers, invoice wise details are required. “Those number of dealers are very few in the country”.

The GSTN will launch an excel sheet format for B2B dealers so that they can keep the invoice wise details ready and can upload it on the 10th of every month.

In the excel sheet, the businesses would have to give details of transaction, like invoice number, GSTIN of buyer, commodity sold or services given, value of the goods or services sold, the tax incidence and taxes paid.

The GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, has already relaxed return filing rules for businesses for the first two months of the rollout of the new indirect tax regime.

As per the revised return filing timeline decided by the Council, for July, the sale returns will have to be filed by September 5 instead of August 10. Companies will have to file sale invoice for August with the GST Network by September 20 instead of September 10 earlier.

As regards traders, manufacturers or eateries opting having turnover up to Rs 75 lakh and have opted for composition scheme, they will just have to give their total turnover in GSTR-1 and no invoice wise detail is required.

These businesses will have to file just one return every three months, Adhia said.

Such returns are to be filed by 18th of the month in the succeeding quarter.

Source : Times of India

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Details required for GST Registration

Valid E-mail Address :

Valid Mobile Number :

Bank Account details

Bank name:

Account number:

Account type:

IFSC Code of all the bank accounts maintained:

Details related to business

Registered name as per VAT:

Registered name as per PAN:

PAN number of the Business:

Constitution of Business: Partnership Firm / Private Ltd. Co. / Individual,

Address of Business:

Details of State VAT: Karnataka

Excise Registration No. :

Note: Since GST Number is pan based, only one registration in a state can be migrated to the GST Portal.

Details related to promoters/ partners/ directors

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

Details related to authorized signatory

Name:

Father’s name:

Date of Birth:

Address:

Email ID:

Cell No. :

PAN number:

Passport (if not a citizen of India)

Note: More than one authorized signatory can also be added.

Details related to Principal Place of business

Address:

Email ID:

Phone number:

Business Premises: Owned or leased,

Nature of activity carried on:

Details related to Additional place of business:

Address

Email ID

Phone number

Owned or leased

Nature of activity carried on

Details of goods and services supplied

HSN code for products for products / SAC code for services.

Maximum 5 products can be added in the application.

Documents Required for Enrollment

Proof of Constitution of Business

In case of Partnership firm: Partnership Deed of Partnership Firm

(PDF and JPEG format in maximum size of 1 MB)

In case of others:

Relevant Proof of Constitution, (In case of Proprietors, Existing VAT Registration certificate / Central Excise Registration Certificate / ST registration certificate be uploaded)

Photograph of Promoters/ Partners/ Karta of HUF JPEG – Size 100 KB

Proof of Appointment of Authorized Signatory (Board Resolution in case of Companies / Authorization letter in case of others entities)

In file PDF or JPEG with Size 1 MB

Photograph of Authorized Signatory: In JPEG file with Size 100 KB

Proof of Principal place of business: Valid Rental Agreement or Sale Deed / Municipal Tax Receipt PDF or JPEG – Size 1 MB

Opening page of Bank Passbook/ Statement containing Bank Account Number, Address of Branch, Address of Account holder and few transaction details PDF and JPEG : Size 1 MB

Digital Signature Formalities

Please sign across the photo @ specified place with Blue ink only. Kindly do not fill the application; we will take care of this.

Provide PAN Copy and for Address Proof*** (Please read : Address Proof document as in Application Form – Kindly provide one of those) duly attested by your personal bank manager. Attestation shall be in “Blue Ink Only”.

Kindly take note that the Bank Manager has to specify the following below details without fail:

Name
Designation
Office address
Contact no. (Office landline or his cell no.) Along with their
Email id.

You will receive a verification call to the given mobile number and DSC passwords will be sent to the provided mail ID ( for Download)

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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E Mail ID : vidyasunilassociates@gmail.com

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Karnataka assembly unanimously passes state GST bill

With less than a month left for the rollout of the GST, the ‘Karnataka Goods
and Services Tax Bill, 2017’ was unanimously passed by the state assembly here today.
Before Karnataka, as many as 24 states and Union Territories had passed the State
Goods and Services Tax (SGST) bill in their respective legislative assemblies.

As per the GST Constitutional amendment, all states have to pass SGST bills by
September 15, 2017, failing which they will lose their taxation powers.

Piloting the bill, Karnataka Chief Minister Siddaramaiah said the state has always been at
the forefront of issues like implementing tax reforms, including VAT.

“Even the World Bank has acknowledged Karnataka as the most progressive states in
implementing tax reforms,” he added.

Countering this, Vishweshwara Hegade Kageri (BJP) said the image of the state took a hit
for not being the first state to pass the SGST bill, especially after being the first state to implement VAT.

“Karnataka should have been first to have agreed to implement GST, especially after the state was first to implement VAT in the country… But this did not happen… This is one of the examples where it hurt the image of Karnataka being a progressive state,” the BJP
leader said.

Kageri also slammed Siddaramaiah for not agreeing to implement GST on earlier occasions despite 50 per cent of the states agreeing to do so.

“Everybody knows the hurdles created by your party (Congress) in parliament to stall the bill, which was your own baby,” he argued.

Taking an indirect dig at BJPruled states, Siddaramaiah said as many as 24 states and one union territory have agreed to implement GST, but initially Gujarat, Madhya Pradesh and Rajasthan were against it.

Siddaramaiah also said since parliament has already passed GST Bill, the state assembly did not have much scope to debate over it because decisionmaking powers are vested with the GST Council.

However, suggestions submitted by members will be presented during GST Council meetings, he added.

The Chief Minister said he did not attend the GST Council meetings because he did not get time and had deputed Agriculture Minister Krishna Byre Gowda.

Source : Economic Times

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819