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E-commerce Advisory

E-Commerce space has been open to lot of dynamism and development in recent past, but as we believe this is just the beginning of a new era to do business in a new way. The business environment has always been challenging but dynamism in E-Commerce is different. There has been a start of fire among entrepreneurs to scale up the businesses to newer heights with no boundaries.

We understand that Business has the following players:-

  • Marketplace for Goods and / or Services
  • Sellers and / or Service Providers on such marketplace
  • Service Providers to E-Commerce

INMACS’ INMACS comes in as an aggregator of this Demand and available Supply of High Quality, Efficient and Proven Service across the country in a hassle-free manner with Single point of Contact:

Income Tax

Generally all entities are preparing books of accounts and financial statements and thereafter calculate profit. Government has levied Income Tax on all such profits under Income Tax Act, 1961.

Following are the various areas in which INMACS can offer support:

We offer detailed professional advise and guidance on intricacies of Tax Laws with the use of interpretation of statutes, notifications, circulars, impact of proposed amendments,
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You may provide us with detailed facts, agreements and supporting documents for the purpose of calculation of applicable rate of deduction.
We can provide support in estimation, payment and compliance of Withholding Tax Liability, Service Tax, Customs, SAD, R&D Cess, Equalisation Levy, and other Applicable Taxes and compliances if any including helping in making necessary filings like 15CA, 15CB, Customs Declaration for Import, etc
Estimation, Calculation and Payment Assistance for Advance Tax can be provided.

We offer detailed professional advisory and guidance on following matters:-

  • Advising on tax planning opportunities
  • Specialised advise on remittances and Certifications – 15CB
  • Assessments, appeals, tax clearances, refunds, low TDS approvals

We offer detailed professional advisory and guidance on following matters:-

  • Advice on cross border transactions
  • Advice on double tax treaties
  • International structuring of corporate and trust structures and wealth generation
  • International tax dispute resolution
  • Efficient and effective planning and assessment of international companies taxation in India

We offer detailed professional advisory and guidance on following matters:-

  • Review of Salary structure and appointment letters
  • Preparation & Submission of Income Tax Return
  • Advisory on Taxation Issues
  • Obtaining Income-tax Clearance from tax authorities

We offer detailed professional advisory and guidance on following matters:-

  • Transfer Pricing documentation, study and Analysis
  • Selection of the appropriate method and arm length pricing
  • Transfer pricing reports
  • Issuance of Transfer Pricing Certificate
  • Representing Transfer Pricing Audit Cases before Transfer Pricing Officer/ Appellate Authorities
  • Advance pricing

VAT - All States

VAT is an area where there are detailed compliance requirements and variation in terms of taxability and treatment to various transactions. In midst of this, it is invaluable to have a single consultant who can meet the needs of clients on Pan India basis.

Following are the various areas in which INMACS can offer support:

After initial sales subject to a minimum exemption for Small Dealers every Dealer / Seller has to take VAT Registration if he is dealing in any of the items which are subject to VAT as per the VAT Law of the state in which the dealer is located. Any party intending to do an Interstate need to take VAT & CST Registration irrespective of limit prescribed.
After Registration of Initial Premises, known as Principal / Main Place of Business, Additions may be made for Branches, Showrooms, Warehouses and also sometimes change in Other Details may be required. We can provide you support in case of such needs.
Sometimes there are doubts regarding the rate which should be applied on a particular item. This is generally governed by the classification of various states. We can provide you clear and well supported advise based on Case Laws and Interpretation of the matter wherever required.
Sometimes there are doubts regarding the rate which should be applied on a particular item. This is generally governed by the classification of various states. We can provide you clear and well supported advise based on Case Laws and Interpretation of the matter wherever required.
We can file monthly VAT Returns in any part of the country based on sales data provided to us. VAT Returns require credits to be correlated on Invoice wise basis which require deep professional specialisation and accuracy.
If required by client we can also enable in appropriate reconciliation of Sales with VAT, including recording of Sales Returns, Deductions made by Marketplace for Charges, Commissions and Other Levies in terms of Agreement.
Various kinds of Forms are to be issued and filed for various movement of material. Our Team can help in obtaining or generating the same in offline / online manner as per the system of VAT Department of respective state.
If required by client we can also enable in appropriate representation of client in front of VAT Authorities in Assessment and Appeal matters.
The rise in trade volumes in E-Platform has given rise to this requirement being brought in by many states one after another. We help you in making those filings in an easy and accurate manner.
Generally, WCT is to be deposited by a recipient of things in a Bundled manner including both Goods and Services. In such cases while making the payment the specified recipient has to deduct WCT from the Suppliers’ payment and pay it directly to the VAT Department. The process of payment may vary from State to State.

Entry Tax

Entry Tax is a tax imposed by the state governments in India over and above CST and Octroi. It is levied on movement of the goods from one state to into another by the recipient state to protect their tax base.

At present there are about 18 States in India that imposed such tax. Although the specified goods under the levy of entry tax is more or less restricted to construction items & fuels in most of the states Still there are few items and a few states that deals with goods that are being sold via e-commerce portal.

Levy starts for the specified goods when goods enter the boundary of the state for use, consumption or sale.

Person responsible for compliances

A dealer who in the course of business, whether on his own persons, brings or cause to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area. Basically, for e-commerce business it is their logistic arm who is made responsible except in Gujarat.

It includes an industrial, commercial or trading undertaking Central as well as State Government Company, H.U.F., a firm, a society, a club which carries on business. Different rate for different goods are prescribed in the respective schedule of the state.

Value on which tax will be imposed- is the original invoice value and includes the charges paid or payable for insurance, excise duty, freight charges and all other charges incidentally levied on the purchase of such goods If value is not ascertainable- Fair Market Value

States to be considered by online sellers with respect to items they sell by e-commerce portal are:-

The act is levied on cements, furniture and fixtures, electronic items( mobile phones, TVs, computer), consumable items(tea, , juices, biscuits) , iron, steel , chemicals etc.

The rates differ between 2-6 %.

Person Responsible-Importer- dealer or any other person, who in any capacity, whether on his own account or on account of a principal or any other person, effects or causes to be effected the entry of goods as specified in the Schedule into a local area or takes delivery or is entitled to take delivery of goods on its entry into a local area for consumption, use or sale therein and includes:

  • Every person who carries on the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract,
  • Every person who carries on business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.

Therefore, the prime responsibility of Entry tax payment is of Delivery partner. However the Assam Government has exempted Stock Transfer and Exports.

  • If registered under Vat and Vat is leviable when goods will be sold in Assam, then exemption is given
  • Thus in one ship model where sellers under e-commerce have a place of business in Assam is not liable to pay entry tax.In drop ship, delivery partner is liable.

Registration should be
Under Assam VAT Act, 2003 within 15 days.

Returns

  • Every registered dealer liable to pay tax under the Act whose aggregate import value of specified goods imported in any assessment year exceeds Rs.10 Lakhs, shall before the expiry of the next succeeding month, submit to the Assessing Authority his monthly statement of such import value in Form No. ET-4
  • Registered dealer, whose specified goods imported in any assessment year is below Rs.10 Lakhs, will have to furnish quarterly statement.
  • Unregistered within 10 days of delivery of goods. Plus, there is an annual return in Form No. ET-5

Payment Mechanism

Payment is done along with the statement and returns referred above via challan or crossed cheque or a crossed Demand draft

Person who brings or facilitate to bring the specified goods into a local area from any place outside the State but not outside India. That is the logistic partner/ delivery arm.

However, for the goods that are taxable under Gujarat VAT, brought into local area, an electronic operator only shall be liable to pay tax

Here liability of electronic operator will arise only when entry of the goods in made via online purchase. In onedrop ship model where there seller has an additional place of business in Gujarat itself and it transfer the goods to its office/ registered warehouse in Gujarat and then the goods are sold online the liability of electronic operator does not arise.

1. Rate of tax is five percent of the value of the goods which is standard for goods like computer system, laptops, T.V., A.C., refrigerator, Raw Petha and Petha Sweet, paper.

2. All kind of goods purchased or ordered through online shopping or E-Commerce and consigned into the local area- 10%

3. Person Liable:- Dealer

  • means any person, who in the course of business whether on his own account or on account of a principal or any other person, brings or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area. Here – Logistic Arm. But it doesn’t include individuals.
  • Here entry of goods also covers entry into local area from other local area. However, exemption is given to a dealer who brings or causes to be brought into a local area any goods which are sold by him within the local area for the purpose of being taken out of that area and are actually taken out
  • In online sale if the liability of Vat has accrued then rebate of entry tax is given. If aggregate value of goods entered is less than 5 lakhs for entry into local area of UK from local area of UK.

4. Payment Mechanism Within 60days

5. Returns For the tax period- Form C and one annual return.

6. Reversal Of Tax Sale return- without using them in such local area, returned within a period of six months Exit of goods-consigned to any place outside the State; Intra state sale- consigned to any place in any other local area for consumption, use or sale apart from that local area. If consigned to self adjusted with the liability its in that state Interstate sale- re-sold either in the course of inter-state trade or commerce or in the course of the export of the goods out of the territory of India;.

7. Registration • If registered under The Uttar Pradesh Trade Tax Act, 1948 and The Uttaranchal Value Added Tax Act, 2005- no need of registration but must furnish the information in Form- A • Not registered-apply within 30 days in form1 along with proof of deposit of registration fee of Rs.2000 Late fee- Rs.100 for every month or part thereof from the date of expiry of the period certificate of registration in Form-B.

The act is levied on yarns, marbles, tiles, wheat, edible oils, pulses and few electronic items etc.

The rates of these goods differ between 1-13%.

Person responsible- Importer

“importer” means a person who brings or causes to be brought scheduled goods into a local area from any place outside the State of Punjab, but not from a place, outside the territory of Union of India, for consumption, use or sale within the local area “person” includes any company or association or body of individuals whether incorporated or not, and also a Hindu Undivided Family, a firm, a society, a club, an individual, a local authority or any State Government, the Central Government or any Union Territory; It doesnot include individuals. No tax shall be levied on the scheduled goods under this Act, if the tax is payable under the provisions of the Punjab Value Added Tax Act, 2005 by a registered dealer.

Payment

The tax shall be payable and paid by an importer at the nearest information collection centre or check post established under the Punjab Value Added Tax Act, 2005, on entry of the scheduled goods into the State.

Detention

If a person liable to pay tax under this Act fails to pay the tax, the Excise & Taxation Officer may order detention of such goods.

1. On sugar, yarn, electrical and electronic goods, computers and their accessories, Non-alcoholic drinks and beverages, paper and its products, sanitary goods and fittings, fabrics, plastic bags and sacs –Rate differs from 4% to 5 %.

Whereas on A.C., refrigerator, the rate is 15%.

Person Responsible- Dealer

“dealer” means any person who, whether on his own account or on account of a principal or any other person, brings or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area and includes an occasional dealer.

Incidence of tax Every dealer liable to tax if during the year ending on 31st March, 1999 or subsequent years exceeds rupees one lack shall be liable to get himself registered and liable to pay tax.

Payment and disbursement of amount wrongly collected by dealer as tax collected tax wrongly -entire amount so collected to the assessing authority within twenty days after the close of the month. Default in the payment of the amount- charge on the properties of the dealer and outstanding amount+ interest@2% for each month of default

Registration An application for registration within 30 days from date of publishing these rules or date of commencement of business whichever is later in form ETLA-1in duplicate accompanied by e-Challan of rupees one hundred and such additional sum at the rate of rupees twenty five for each additional place of business certificate for registration in Form ETLA-2

RETURN

A quarterly return in Form ETLA-3 and annual return in ETLA-5 electronically within fifteen days of the last date for filing of such return.

The act is levied on electronic items (Laptops, computers, TV, refrigerators), iron, steel, cement etc.

The rates vary between 1-4%.

Person responsible:- Dealer

"Dealer" means any person, who in the course of business, whether on his own account or on account of a principal or any other person, brings or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area.

However it does not include individuals. No dealer who brings or causes to be brought any goods into a local area shall be liable to tax, if during the assessment year the aggregate value of such goods is less than five lakh rupees.

In case the dealer has paid the entry tax on some goods, which

  • are consigned to any other place outside the State or
  • are sold either in the course of inter-State trade or commerce or
  • Are sold in the course of export outside the territory of India. Then such tax will be refunded or adjusted.

Registration Within 60days

Every dealer liable to pay tax shall apply to the Assessing Authority for grant of registration certificate within thirty days from the date on which he becomes liable to pay tax.

6.If the dealer has no fixed place of business within the State of Uttar Pradesh, he shall not be liable for obtaining registration under this

7. Returns- Every registered dealer has to publish quarterly returns and an annual return (of self assessed tax).

Person Responsible- Dealer or Importer

“Dealer” means a dealer under the West Bengal Value Added Tax Act,2003, or under the West Bengal Sales Tax Act, 1994, as the case may be, and includes—

3. Person Liable:- Dealer

“Dealer” means a dealer under the West Bengal Value Added Tax Act,2003, or under the West Bengal Sales Tax Act, 1994, as the case may be, and includes—

  • a handling or delivery agent or an agent acting in any manner on behalf of the principal, or any other person who takes delivery or is entitled to take delivery of goods on behalf of a dealer on its entry into a local area,
  • where specified goods entering any local area have been dispatched to such local area by rail, road, water, air or post, and the consignee of such specified goods does not take delivery of such goods upon entry and such specified goods are sold under the provisions of any other law, the purchaser or any other person who takes delivery of such goods on his behalf;

“importer” includes a person who in any capacity brings, or causes entry of, any specified goods into a local area for consumption or use therein and a dealer;

Specified Goods Within 60days

  • Specified goods as per schedule C, CA, D of WBVAT act and Schedule IV and in Schedule VIII of the West Bengal Sales Tax Act, 1994.
  • Excluding- Agriculture equipments, chemical fertilizers, bamboo, tea.
  • Rate of tax-1%

Refund

As per the section 44 of West Bengal Value Added Tax, if the goods are returned or rejected in a subsequent year, within a period of 6 months from the date of sale of purchase, the amount is adjusted in the turnover in the year in which the goods are returned.

7. Payment Mechanism

  • Registered Dealer- within 21 days from end of every month, and a quarer;y return in Form – ET3
  • Unregistered Dealer- on the basis of entry of specified goods at the time of making declaration under section * which is done by the way of waybill for transport of goods imported into West Bengal by a dealer.
  • If the dealer has paid excess entry tax, then it can be adjusted in the next month of the same accounting year.

Registration

The act is levied on paper, computer hardware and software, electrical goods, sanitary goods, wheat, rice, Air conditioners, Air coolers etc.

Rate differ between 4% to 5%

Person responsible:- Dealer

“Importer” means a dealer or any other person who is any capacity effects or causes to be effected t he entry of any scheduled goods into a local area for consumption, use or sale therein.

Reduction Of Liability

Setoff of entry tax from VAT.

5. Collection of tax from importers

  • Every person or dealer engaged in the business of delivering or supplying goods not registered under the Act, through any System of electronic commerce or otherwise shall, at the time of or before delivery of the said Scheduled goods, recover entry tax from the buyer or importer of the said goods.
  • Amount so collected is deposited into Government Treasury.

Registration

  • Application for registration separately in respect of every place of business within seven days.
  • In Form ET-I and shall be signed and verified.
  • attach two passport size photographs
  • registration certificate in Form ET-II within a period ordinarily not exceeding thirty days from the date of the receipt of the said application
  • before granting certificate, dealer needs to submit security
  • Furnish two securities and execute a security bond for such amount in Form ET-XII.

Returns and payment of tax

  • abstract of monthly import of goods in Form Et-III,
  • a true and complete return for each quarter in Form ET IV
  • an annual return for each year in Form ET-V in respect of import of all scheduled goods and tax
  • .
  • tax or penalty or both paid into Government treasury by challan in Form ETVI

Registration

Service Tax, Swatch Bharat Cess and Krishi Kalyan Cess

Applicability

  • For Service Provider: Simply put, Service Tax & related taxes apply on all people engaged in providing services with a greater than the annual Small Scale exemption limit Viz. Rs. 10 Lacs currently.
  • For Service Recipient: In addition to this certain specified entities are required to deposit service tax under reverse charge mechanism for the amount spent on availing specified services from specified category of persons.

Following are the various areas in which INMACS can offer support:

  • Filing of periodic returns
  • Determining Service Tax liability on monthly/ quarterly basis, as may be applicable
  • Determining/ advising on the availability of service tax credit in accordance with the provisions of CENVAT Credit Rules 2004.
  • Help & Support in maintaining records as per requirements of law
  • Preventive Service Tax Health Check
  • Assistance in Departmental Service Tax Audit services
  • Support in Relation to Assessments, Audits and Inquiry by various Statutory Authorities
  • Representation Services for Assessments before officers
  • Representation Services for Appeals up till Tribunal level
  • Assistance in preparation of case in connection with proceedings before High Courts and/or Supreme Court of India and assisting the Senior Counsel in representation before the Court
  • Assistance and representation in relation to the Advance Rulings

Equalisation Levy

Applicability

  • For Service Provider: Simply put, Service Tax & related taxes apply on all people engaged in providing services with a greater than the annual Small Scale exemption limit Viz. Rs. 10 Lacs currently.
  • For Service Recipient: In addition to this certain specified entities are required to deposit service tax under reverse charge mechanism for the amount spent on availing specified services from specified category of persons.

Following are the various areas in which INMACS can offer support:

Multi-national digital platforms don't have "permanent establishments" in the country, which would make them liable to pay tax in India. The levy is likely to cover payments to large ad exchanges as well as ecommerce companies that are located outside India, as these are the entities that are heavily involved in online advertising.

Instead of a straight tax on digital advertising platforms, the government has come up with what it calls an “equalisation levy” of 6% on the fees that advertisers pay.

An Equalisation levy of 6 percent of the amount of consideration for specified services received or receivable by a non-resident not having permanent establishment (PE) in India, from a resident in India who carries out business or profession, or from a non-resident having permanent establishment in India. Correspondingly, such income would be exempt from income tax in the hands of a non-resident recipient.

  • Indian Govt. will be able to tax Giant players such as E-commerce and social networking companies.
  • This could become an additional cost for small firms/startups.
  • Non-Resident companies will not receive credit in their home countries on transactions subjected to the levy.
  • Big Players like Google, Facebook Yahoo and other large player will be most affected.

Specified services have been defined to mean online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and include any other notified services.

Equalisation levy shall not be charged if:

  • Non-resident service provider has a PE in India and income from such specified services are effectively connected to such PE.
  • Where the consideration is not for the purpose of carrying out business or profession.

Equalisation levy so deducted by the payer has to be paid to the Government by 7th day of the month following the month in which the equalisation levy is collected and in case of delay an interest @ of 1% for every month or part of a month shall be charged.

SCentral Government to make rules for the purposes of carrying out the provisions of this Chapter

  • To provide for the administrative mechanism of the equalisation levy,
  • To prescribes the duties and powers of the authorities to administer the equalisation levy,
  • To provide for interest, penalty and prosecution in case of defaults with sufficient safeguards.

This Levy will take effect from the date appointed in the notification to be issued by the Central Government.

  • Exemption under section 10 of the Income Tax Act, 1961 for any income arising from providing specified services on which equalisation levy is chargeable.
  • Expenses incurred by the assessee towards specified services chargeable under this Chapter shall not be allowed as deduction in case of failure of the assessee to deduct and deposit the equalisation levy to the credit of Central government.

INMACS can

  • Help the client in Developing an Understanding of this levy and its impact on their business.
  • End to End advisory and compliance services in relation to aforesaid regulation

FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)

Indian Government has signed an Inter-Governmental Agreement (IGA) with the United States (US) on 9 July 2015 to implement the FATCA in India. IGA read with the FATCA provisions, Foreign Financial Institutions (FFIs) in India are required to report tax information about US account holders to the Indian Government which will, in turn, relay that information to the US Internal Revenue Service (IRS).

FATCA stands for The Foreign Account Tax Compliance Act (FATCA) which was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act on March 18, 2010. FATCA creates a new information reporting and withholding regime for payments made to certain foreign financial institutions and other foreign entities

Furthermore, the US IRS will provide similar information about Indian citizens having any accounts or assets in the US.

Indian Government enacted rules relating to FATCA reporting in India and same is divided into three specific segments which deal with various aspects of the FATCA reporting regime as follows:

  • Rule 114F – Definitions of the various terms used in Rule 114G and Rule 114H;
  • Rule 114G – Information to be maintained and reported; and
  • Rule 114H – Due diligence requirement.

Alike FATCA, GOI has further committed to implement a Common Reporting Standard (CRS) as part of reciprocal exchange of information on financial accounts on an automatic basis with other countries/ non-sovereign territories.

The purpose of FATCA is to prevent US persons from using banks and other financial institutions outside the USA to park their wealth outside US to avoid US taxation on income generated from such wealth. FATCA obliges such banks and financial institutions to report information about US persons having accounts with them. Similar to FATCA, the purpose of CRS is to aid automatic exchange of information between bilateral treaty partner countries about accountholders/investors maintaining accounts in foreign jurisdictions.

The information reported will depend on the classification of the customer under FATCA and CRS. Customers will be expected to provide details such as Country of Tax residence, Tax Identification Number from such country, Country of Birth, Country of Citizenship, etc.

The following information shall be maintained and reported by a reporting financial institution in respect of each reportable account, namely:-

The name, address, taxpayer identification number [TIN (assigned in the country of residence)] and date and place of birth [DOB, POB (in the case of an individual)];

where an entity has one or more controlling persons that are reportable persons:

  • the name and address of the entity, TIN assigned to the entity by the country of its residence; and
  • the name, address, DOB, POB of each such controlling person and TIN assigned to such controlling person by the country of his residence;

account number (or functional equivalent in the absence of an account number);

account balance or value (including, in the case of a cash value insurance contract or annuity contract, the cash value or surrender value) at the end of the relevant calendar year;

in the case of any custodial account:

  • the total gross amount of interest or dividends or other income generated with respect to the assets held in the account during the calendar year; and
  • the total gross proceeds from the sale or redemption of financial assets during the calendar year with respect to which the reporting financial institution acted as a custodian, broker, nominee, or otherwise as an agent for the account holder

in the case of any depository account, the total gross amount of interest paid or credited to the account during the relevant calendar year;

in the case of any account other than that referred to in clauses (e) or (f), the total gross amount paid or credited to the account holder with respect to the account during the relevant calendar year; and

in case of any account held by a non-participating financial institution (NPFI), for the calendar years 2015 and 2016, the name of NPFI and aggregate amount of such payments.

  • Investors have to give correct and detail information to financial institutions.
  • Insurance, banking, pension and other financial institutions based on eligible criteria in India have to report their US client details to the Income Tax department for eventually sharing with the IRS.
  • There will be automatic and periodic exchange of information.
  • It ultimately will support to build more transparency in investment coming in India from US and suppress the black money.

INMACS can

  • Help the client in Developing an Understanding of the law and its impact on their business.
  • End to End advisory and compliance services in relation to aforesaid regulation

SCentral Government to make rules for the purposes of carrying out the provisions of this Chapter

  • • To provide for the administrative mechanism of the equalisation levy,
  • • To prescribes the duties and powers of the authorities to administer the equalisation levy,
  • • To provide for interest, penalty and prosecution in case of defaults with sufficient safeguards.

This Levy will take effect from the date appointed in the notification to be issued by the Central Government.

  • Exemption under section 10 of the Income Tax Act, 1961 for any income arising from providing specified services on which equalisation levy is chargeable.
  • Expenses incurred by the assessee towards specified services chargeable under this Chapter shall not be allowed as deduction in case of failure of the assessee to deduct and deposit the equalisation levy to the credit of Central government.

INMACS can

  • Help the client in Developing an Understanding of this levy and its impact on their business.
  • End to End advisory and compliance services in relation to aforesaid regulation

PF - Provident Fund

THE EMPLOYEES' PROVIDENT FUND AND MP ACT, 1952 Employees drawing basic salary upto Rs 15000(From Sep 1 2014 salary limit has been increased to Rs 15,000 before it was Rs 6500) have to compulsory contribute to the Provident fund and It is beneficial for employees who draw salary above Rs 15001(Before Sep 1 2014 minimum was Rs 6501) to become member of Provident Fund as it is deducted from the salary before it is deposited on bank or given hence compulsorily saving happens. Employee’s contribution is matched by Employer’s contribution (till 12%) so extra money and it is helpful for tax purpose too. The employer contribution is exempt from tax and employee’s contribution is taxable but eligible for deduction under section 80C of Income tax Act.

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4 March 1952. The organisation is administered by a Central Board of Trustees, composed of representatives of the Government of India, provincial governments, employers and employees. The board is chaired by the Union Labour Minister of India. The Chief Executive of the EPFO, the Central Provident Fund Commissioner, reports to the Union Labour Minister through the Permanent Secretary in the ministry. The EPFO has the dual role of being the enforcement agency to oversee the implementation of the EPF & MP Act and as a service provider for the covered beneficiaries throughout the country. To this end, the Commissioners of the Organisation are vested with vast powers under the statute conferring quasi- judicial authority for search and seizure of records, assessment of financial liability on the employer, levy of damages, attachment and auction of a defaulter's property, prosecution and arrest and detention in civil prison.

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid provisions:-

The Act is applicable to:

Every factory engaged in any industry specified in Schedule I to the Act and employing 20 or more persons;

Every other establishment employing 20 or more persons specified by the Central Government in this behalf.

Any establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein at any time falls below 20. {Section 1(3) & (5)}

Following three returns may be filed:

  • PF Challan by 15th of every month.
  • PF monthly Return on or before 25th of every month.
  • PF Annual Return on or before 30th April of every year.

ESI - Employee State Insurance

For all employees earning INR 15000 or less per month as wages, the employer contributes 4.75 percentage and employee contributes 1.75 percentage, total share 6.5 percentage. This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India.

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid provisions:-

Registration

Applicable on All Employers having more than 10 employees even if one employee is below the limit as prescribed above.

Following two returns may be filed:

  • Annual return showing the changes if any during the preceding year.
  • Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.

LWF - Labour Welfare Fund

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid provisions:-

See Details

Professional Tax

Professional tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection. In India, professional tax is imposed at the state level. However, not all states impose this tax. The states which impose professional tax are Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim. Business owners, working individuals, merchants and people carrying out various occupations comes under the purview of this tax.

Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is INR 2,500 and in line with tax payer's salary, there are predetermined slabs. It is also payable by members of staff employed in private companies. It is deduced by the employer every month and sent to the Municipal Corporation. It is a mandatory to pay professional tax. The tax payer is eligible for income tax deduction for this payment.

The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department. He/she has to furnish a return to the tax department in the prescribed form within the specified time. The return should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete and invalid sec 16(iii).

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid provisions:-

Apply for the Registration Certificate to your state tax department within 30 days of employing staff for your business. If you have more than one place of work, apply separately to each authority as regards the place of work coming under the jurisdiction of that authority.

The Returns to be filled under Professional tax act varies from state to state .They may be filled on quarterly/monthly/annual basis.

Working Capital Funding

We have a focused approach and knowledge of various products as available in banking and non-banking sector for providing finance for working capital needs of your business. We have served all nature of organisations be it Trading, Manufacturing or Services. Our Experience with funding helps us in easing the process.

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid:-

  • Advisory on Structure
  • Choice among various alternative finance options
  • Fund-raising Strategy
  • Liaising with various Banks and Non – Banking funding agencies.
  • Obtaining Sanctions, Disbursement and Monitoring
  • Reconciliation of Committed and Actual Charged rates of Interest and Bank Charges on an ongoing basis.

Planning & Structuring

Raising of Funds involves a significant amount of Planning and Structuring of various aspects of a Business Plan and also connect the various limbs of the plan into a unified and focussed strategy

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid:-

  • Advisory on Structure
  • Choice among various alternative finance options
  • Fund-raising Strategy

Agreements

Business transactions are normally a series of discussions and negotiations between the parties. It is normally presumed that it is best to re-produce the understanding between parties into a simple and clear agreement which defines the mutual rights and obligations of the parties to the agreement.

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid:-

  • Master Agreements: These are agreements which are normally general corporate agreements which are made once and used repeatedly for similar transactions with parties viz. Agreement with Suppliers of Goods & Services, Agreement with Customers, Agreement with Sellers on a Marketplace etc.
  • Shareholders Agreement: This is the most important agreement as this lays the foundation of the company, and mutual clarity amongst shareholders about their rights, duties, obligations and claims paves the way for long term bright future. These agreements are generally of following kinds:
    • Agreements amongst Co-Founders
    • Agreements amongst Company, Co-Founders and Investors
  • Other Agreements: Agreements with Merchant Bankers, Investment Bankers, Strategic Investors, Lenders, Service Providers or others by whatever name called.

We based on your requests and based on facts and understanding can provide the following services in relation to the aforesaid agreements:-

  • Drafting of Agreements based on understanding of Facts, Term Sheets and other files and papers in relation to the subject matter of the agreement.
  • Vetting the draft agreements received by you from other parties
  • To carry out Negotiations on your behalf in relation to a proposed relationship
  • To help in developing a clear understanding amongst all / some parties to the agreement about the contents of the agreements and its impact thereupon.

Accounting & Book Keeping Services

The basic purpose of any business is to earn Profit. Every businessman / entrepreneur / professional carries out multiple transactions with others in the economy to earn this Profit.

In this process it becomes very important for any businessman to keep a record of all such transactions to keep a tab on various items / indicators which are required for carrying out the business effectively and efficiently viz. Stock, Receivables, Payables, Bank Balance, Operating Expenses, etc

The recent Online Marketplaces viz. SnapDeal, Flipkart, Amazon and the like have also added a new dimension to this complexity. The Statements received by Sellers are usually complex to interpret and it is important that an independent reconciliation of the same is carried out. There are many issues which require proper attention

  • Quantitative Reconciliation of Sales, Purchase, Returns and Stock in Hand
  • Payment processing as per promised cycle
  • the levy of any deductions or charges are as per agreement
  • the recording and payment withholding taxes
  • the Cenvat Credit (wherever available / applicable) for Service Tax levied

We not only help our clients in maintaining this but also review the accounts from many angles to ensure financial discipline.

Calculation of Advance Tax, VAT, TDS & Other Liability towards payment of taxes

It is important to Estimate the payables in an accurate manner so that timely payment of dues towards government and its various authorities can be discharged. While making an estimate it is important that proper consideration is made for:

  • To arrive at Correct Base Amount for calculation of Tax
  • To arrive at Correct Rate of Tax and thereby Correct estimate of gross tax liability
  • To arrive at Correct Input Credit of various taxes
  • To arrive at Net Tax Payable
  • To pay the same before the due date prescribed under various respective statutes

We not only help our clients in arriving at above but can also train internal people of client about this routine matter or even guide the client so that they can carry out the same independently also.

Reconciliation of Schemes & Charges

Reconciliation with Suppliers and Customers is the key to long term relationship, goodwill and sustainability of any business. In the current business environment there are several adjustments in the dealings of

  • Incentives for Quantitative and Qualitative achievements
  • Penalties or Deductions on account of certain violations or non-achievement of mutual commitments.
  • Scheme Payments: There are several schemes which apply to a contract sometimes having complex conditions and require detailed monitoring of the same so as to ensure that there is no financial loss to either parties
  • Waiver or Credit Note issued – in terms of subsequent agreement.

  • Accuracy of aforesaid adjustments
  • Explaining the Terms and Queries related to Agreement
  • Indicate areas where precautions can reduce the negative impact of such clauses on client for future transactions
  • Preparation of Complaints to be pursued by other party for rectification of wrongly charged or debited amounts
  • Provide an MIS of the same to the client

Since, individual transactions are small so client may not bother, but these errors cumulatively over time can lead to unnecessary losses, and hence professional monitoring of the same is very important.

Explaining the Terms and Queries related to E-Commerce Business

E-Commerce in itself is a dynamic space and hence it is very dynamic in terms of its approach and issues faced. We have deep experienced in dealing with E-Commerce space due to varied experience and understanding we have gathered over the years by serving clients.

We shall be able to provide you consultation and understanding on various aspects required to carry out the business through E-Commerce.

You may write to us for query resolution or structuring by filling the form below.

Starting a Business: Incorporations

The incorporation of new businesses is the first step towards creation of value and wealth. The portal http://GoCompany.in, promoted by INMACS, will not only facilitate decision-making but will also expedite the process of incorporation. Converting your dreams into deeds is only a click away now. You need not travel or physically come.

The portal provides you easy steps to implement your business ideas into an incorporated entity with range of options suiting each one’s requirements.

Advisory & Compliances - FEMA and RBI

Advisory and Compliances - Foreign Exchange Management Act (FEMA), Reserve Bank of India (RBI) Guidelines and other Exchange Control Regulations, Notifications & Circulars

The Foreign Exchange Management Act (FEMA) is the legislation that governs the foreign currency in India with the objective of facilitating external trade, balance of payments and promoting the orderly development and maintenance of the foreign exchange market in India.

We provide services to investors to facilitate their investments into India, including advising on investment strategy, consultation for doing business outside India, obtaining permissions for setting up office including assistance for Joint Ventures (JV) and handling other routine compliances.

We have expertise in setting up, taking Govt. approvals, reporting, filing with authorities and all related aspects of support. The accounting for such offices, salary structuring, tax supports are part of the bouquet services provided for these clients. We also provide any specific advice required in relation to RBI matters.

As the business is happening among multi nationals, the foreign exchange transactions have increased a lot. In India RBI and FEMA regulations have to be followed. There is huge penalty on the violation of FEMA and RBI regulations. We Provide FEMA related & RBI related following services:

  • Guidance on External Commercial Borrowing (ECB).
  • Assist in obtaining permission under various provisions of FEMA, Filling of Intimations, Statuary Forms and Returns.
  • Advisory on International Transactions covered under FEMA Double Taxation Agreements (DTA)
  • Assist in obtaining import and Export code (IEC)
  • Providing Charted Accountant Certificate for repatriation of income and assets from India.
  • Making application to Reserve Bank of India for purchase/ sale of shares, debentures and security residents for both residents and non-residents of India.
  • Making application to Reserve Bank of India for purchase /sale of residential and commercial properties.
  • Setting up Partnership / Partnership by NRI'S or persons of Indian origin.
  • Assist in Obtaining various RBI, SIA/FIPB Approvals and other regulatory Approvals
  • Advisory on permitted out-bound or In Bound investments
  • Assisting in setting up companies outside India and In India.
  • Assist in Establishing a branch office, liaison office, project office or other similar outlets in India by foreign entities; Issues under Companies Act, 2013, Foreign Exchange Management Act, 1999

Legal Advisory & Compliances

There are several areas where Legal Advisory & Compliance may be applicable on / required by any business entity

  • Advisory on Licensing and other technology transactions
  • Assistance on Strategic Alliances, Joint Ventures, outsourcing and other partnering transactions
  • Advisory on Acquisitions of specified assets
  • Assistance in Restructurings and recapitalizations
  • Company Law procedural matters
  • Joint Venture Formation and Registration
  • Debt Recovery proceedings (Civil Suits, Winding up proceedings, Criminal action etc.,)
  • Company Law Board Cases
  • Economic offences related matters
  • FII, FDI related Permissions
  • Reserve Bank of India related matters
  • Foreign Exchange related matters
  • Customs related matters
  • Government Approvals
  • Government Liaison work
  • Pollution related matters

We can give our clients and associates complete peace of mind in this area by carrying out company secretarial duties for them. We also review and assess their regulatory compliance processes, assess compliance concerns, and recommend the necessary improvements required to successfully satisfy regulatory mandates. The firm also has well known and experienced advocates on the advisory panel.

Services Include-

  • Company formations
  • Preparation and filing of statutory returns with ROC including Annual Returns viz Form AOC – 4, MGT -7 etc.
  • Preparation of all documentation related to minutes and resolutions
  • Assist in preparation of statutory books
  • Advisory on company law
  • Advisory on Joint Venture, Share Purchase and Acquisition procedure
  • Assist in conducting Board Meetings and General Meetings helping
  • Services for drafting Minutes of the meetings. Maintaining records and registers for Company required under Companies Act 2013.
  • Assist in winding-up of companies
  • Striking of the defunct companies from record of Registrar and other issues;
  • Managing bankruptcy proceedings and advising under 'Sick Industries' regulations.

Securities Market in India is closely regulated, primarily by Security Exchange Board of India (SEBI) and Ministry of Corporate Affairs. There are special regulations, guidelines, rules, circulars guiding the activities of the market players. There is a need for every listed company to comply with this entire legal framework and establish Compliance Management systems.

The securities laws related to these are complex and require experienced professionals to help and navigate them. Indeed, non-compliance with applicable securities laws could result in serious adverse consequences, including a right of rescission for the security holders (i.e., the right to get their money back), injunctive relief, fines and penalties, and possible criminal prosecution.

Our Services –

  • Assist in Arbitral proceeding’s with Stock Exchange
  • Representation before SEBI/SAT and other adjudicating authorities related to SEBI regulations
  • Assistance to the company in compliance of SEBI Takeover Code related to takeover of listed companies
  • Assistance to the company in preparation of roadmap/compliances involved relating to offer documents in IPO/FPO
  • Preparation of restated financials to include them in the offer documents issued to the public
  • Private placements and related Stock Exchange Compliances and state securities law filings
  • Seed capital financings
  • Secretarial Audit Certificate for reconciliation of physical share and Demat shares
  • Half yearly Compliance Certificate under Clause 47C
  • Limited Review Report (In case the results are Unaudited)
  • Scrutiniser during the Postal Ballot

We shall be able to provide assistance in relation to following services:-

  • Compliance with various Corporate & Economic Laws.
  • Opinion on Various Corporate & Economic Laws & other complex legal issues
  • Drafting & Vetting of Various Legal Agreements including Joint-Venture Agreements, MOU’s, Takeover, Mergers & Acquisitions, Implementation Agreements, etc
  • Drafting of notices, petitions, deeds and other legal documents
  • Regularly holding sessions at client seminars to commercial and public sector bodies on litigation risk management, e-discovery and disclosure obligations and managing investigations

Disclosure: Representation services if any shall be carried out by Advocates, Chartered Accountants, Company Secretaries and other professionals or professional firms.

Since, individual transactions are small so client may not bother, but these errors cumulatively over time can lead to unnecessary losses, and hence professional monitoring of the same is very important.

Intellectual Property Rights (IPR) – Trademark, Copyright & Patents

Businesses involve innovation and uniqueness which is a result of hard work and continuous determination. It is important that such Intellectual Property is protected. The INMACS Team provides you customised and detailed guidance for protection of your IPRs. We also facilitate in registration of such Trademark, Copyright & Patents respectively.

Query Resolution & Information

We shall be able to provide you consultation and understanding on various aspects required to carry out the business and applicable Taxes and Compliances thereupon.

You may write to us for query resolution or structuring by filling the form given.