Registrations/Enrollments/Certificates

Incorporation is just the beginning of a company, after Incorporation, there are various registrations which a company must undertake which can be briefly classified under three categories:

We have experience of prevailing various registrations from different government departments.
For any assistance in this regards, please reach us on info@capunith.com

1. Income Tax

Among the direct taxes, income tax assumes great significance; it is being levied on the income of individuals by the Government of India. Income Tax is governed by Income Tax Act, 1961. The total taxable income of a person includes all the income received, accrued or earned by him during the previous year. For the purpose of charging tax the phrase person encompasses individuals, association of person, hindu undivided families, firms, limited liability partnerships, body of individuals and any artificial judicial person.

Previous year refers to the financial year ending on 31st March of Every year, whereas assessment year refers to a period of 12 months commencing on the 1st day of April.

For example, for previous year ending on 31.3.2010, the assessment year is 2010-11 (i.e. from 1.4.2010 to 31.3.2011)

Income Tax Act opts for certain registrations namely:

• Permanent Account Number (PAN)
• Tax deduction and collection Account Number (TAN)
• Tax Residency Certificate
• TDS certificate (lower tax)

a. Permanent Account Number (PAN)

PAN is a ten-digit alphanumeric number issued by the Indian Income Tax Department. It was introduced to facilitate linking of various documents, including payment of taxes, tax arrears, and tax demand. PAN is compulsory for undertaking major financial activities/transactions. It is also issued to foreign nationals (such as investors) subject to a valid visa. It is unique to each individual and is valid for the lifetime of the holder, throughout India.

We have experience of prevailing various registrations and approvals from the tax department.

For any assistance in this regards, please reach us on info@capunith.com

b. Tax deduction and collection Account Number (TAN)

Tax Deduction Account Number or Tax Collection Account Number is a 10 -digit alpha-numeric number issued by the Income-tax Department. TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS). As per Section 203A of the Income Tax Act, 1961 it is mandatory to quote TAN number on all TDS returns.

We have experience of prevailing various registrations and approvals from the tax department.

For any assistance in this regards, please reach us on info@capunith.com

c. Tax Residency Certificate (TRC)

It is very much required to have a Tax Residency certificate from the resident country tax authorities to claim the applicable relief under Double Taxation Avoidance Agreements (DTAA). The resident has to file an application in Form 10FA to the assessing officer for obtaining TRC along with the supporting documents and according to the new rule the assessing officer on receipt of the application, being satisfied on the particulars contained therein has to issue Form 10FB to the resident.

We have experience of prevailing various registrations and approvals from the tax department.

For any assistance in this regards, please reach us on info@capunith.com

d. TDS certificate

TDS has been one of the important aspects under Income Tax. Form 16, 16A, 16B, 16C are few of the TDS certificates that are issued by the person deducting TDS to the assessee from whom the TDS is being deducted while making payments, these certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers.

For example, Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees.

We have experience of prevailing various registrations and approvals from the tax department.

For any assistance in this regards, please reach us on info@capunith.com

---

2. Goods and Service Tax (GST)

GST has been the biggest game changer; it is a comprehensive indirect tax being levied by the Government of India on sale of goods and provision of services. This law was launched on 1st July 2017 by submerging various other indirect taxes. We provide several services under the GST law such as:

• Registration under GST Act
• Filing of returns such as GSTR-1, GSTR-3B
• Addressing notices issued under GST law
• Providing consultation on GST issues
• Facilitating in obtaining GST refunds
• Conducting audits under GST laws

Registration and Threshold:

• Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be Rs. 20 lakhs and Rs. 10 lakhs in the States of Manipur, Mizoram, Nagaland and Tripura
• Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers of goods would be Rs. 40 lakhs and Rs. 20 lakhs in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand with effect from 01.04.2019.

Advantages to Trade and Industry under GST:

• Simpler tax regime with fewer exemptions
• Increased ease of doing business
• Reduction in multiplicity of taxes that are at present governing our indirect tax system
• Elimination of double taxation on certain sectors (like works contract, software, hospitality sector)
• Will mitigate cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply
• Reduction in compliance costs
• More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market
• Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc
• Average tax burden on supply of goods or services is expected to come down which would lead to more consumption, which in turn means more production thereby helping in the growth of the industries manufacturing in India.

Punith and Associates provide these above services to our clients from diverse industries such as manufacturing, automobiles, IT (information technology), garments, real estate, pharmaceuticals, etc.
For any assistance in this regards, please reach us on info@capunith.com

---

3. Others

a. Employee Provident Fund (PF)

Employee provident fund is a saving scheme for the employees introduced under Employees' Provident Fund and Miscellaneous Provisions Act, 1952. Employees' Provident Fund Organization is a statutory body being formed under the Ministry of Labour and Employment, to assist the Central Board in administering the provision fund scheme.

Applicability of EPF registrations for employers:

For any establishment which is engaged in any industry having 20 or more employees have to register under EPF, whereas some of the establishments having less than 20 employees would be required to obtain EPF registration but that would be on a voluntary basics. We at Punith and Associates assist the establishments in services related to EPF namely:

• New registrations
• Amendments of existing registrations
• Voluntary registrations
• Filing of returns (Annual and Monthly)

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

b. Employee State Insurance (ESI)

Employee State Insurance Act, 1948 was promulgation by the parliament as one of the major legislation for the social security of the workers in independent India to provide for certain benefits to employees in case of sickness, maternity and employment injury.

Applicability:

• Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
• Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, newspaper establishments, establishments engaged in Insurance Business, Non Banking Financial Companies, Port Trust, Airport Authorities and Warehousing establishments employing 10* or more persons.
• Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 10* or more persons in certain States/UTs.
• The existing wage limit for coverage under the Act effective from 01/01/2017 is Rs.21,000/- per month [Rs. 25,000/- per month in the case of persons with disability].

Contribution:

The contribution payable to the corporation shall comprise of employee contribution and employer contribution at a specified rate.

ESCI Contribution	Existing Rate (%)	Revised Rate (%)*
Employer’s Share	4.75	3.25
Employee Share	1.75	0.75
Total ESI Contribution	6.50	4.00

*with effect from 1st July 2019.

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

c. Professional Tax (PT)

Professional tax is a direct tax that is levied and collected by the state governments of India. Punith and Associates assist the establishments in services related to Professional Tax namely:

• New registrations
• Amendments of existing registrations
• Voluntary registrations
• Filing of returns (Annual and Monthly)

Entities required to have PT registration are:

• Private or Public limited company
• Firms
• Hindu Undivided family (HUF)
• Any club or associations or societies
• Corporate Bodies

Individuals exempted from PT are:

• Senior citizens (persons who have attained a age of 65 years)
• Dumb and Deaf persons (either salaried or on wages)
• Physically Handicapped (persons not less than 40% disability)

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

d. Trade License

Trade license refers to the permit issued by the municipal corporation granting permission to an entity or an individual to carry on a particular business in a specific premise, mainly to safeguard the society at large. Karnataka Municipal Corporation Act has listed few activities under Schedule X namely:

• Hotels and Restaurants
• Dry cleaning and laundry.
• Water tankers.
• Nursing homes and hospitals, diagnostic centers.
• Chemicals and Pesticides
• Barber shops, Beauty Parlors, etc.
• Construction work like brick molding, granite
• Food and Food processing.
• Boarding and lodging.
• Marriage halls and convention centers.

Punith and Associates assist the establishments in obtaining Trade License from the BBMP.
For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

e. Import Export Code (IEC)

IE code is a mandatory requirement for individuals involved in import and export of goods and services from India. IEC is a 10 digit unique code issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India which is valid for lifetime.
We at Punith and Associates assist the establishments in services related to IEC namely:

• New registrations
• Amendments of existing registrations

Exemptions under IEC:

• Import or Export of Goods for personal use
• Importer and export by central government or agencies or undertakings for defense purpose or other specified list under Foreign Trade

Benefits of IEC:

• Assist in expansion of business
• Availing Several Benefits
• No filing of returns
• Easy processing
• No need for renewal

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Employee State Insurance (ESI)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar
• Shops and Establishment

f. MSME /Udyog Aadhaar

MSME sector contributes to 45% of India's total industrial employment; it aims to be a backbone of the economy in promoting equitable development for all. Thus in order to support MSME's the Government of India has come up with various subsidies, incentives and schemes under the MSMED Act.

The Union Cabinet had approved the amendment to change the criteria to classify MSMEs from "investment in plant and machinery" to "annual turnover."

Revised MSME Classification
Composite Criteria: Investment and Annual Turnover
Classification	Micro	Small	Medium
Manufacturing and Service	Investment Less than Rs.1 Cr and Turnover Less than Rs.5 Cr	Investment Less than Rs.10 Cr and Turnover Less than Rs.50 Cr	Investment Less than Rs.20 Cr and Turnover Less than Rs.100 Cr

Punith and Associates assist the establishments in services related to MSME namely:

• New registrations
• Amendments of existing registrations
• Taxation
• Consultation on benefits

Udyog Aadhaar:

Udyog Aadhaar Memorandum (UAM) is a simplified registration for MSME's which would constitute a self declared format certifying the existence with mandatory information's such as owners aadhaar details, bank account details. We at Punith and Associates assist the establishments in services related to these matters also.

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• Shops and Establishment

g. For shops and establishments

Shops and Establishment registration is a state based registration, the Shops and Establishments Act is enacted in every state in India to regulate them based on the wages, working hours, leaves, work conditions and so on. It is mandatory for every shop and establishment to register itself within 30days of commencement of work.
Punith and Associates assist the establishments in services related to shops and establishments namely:

• New registrations
• Amendments of existing registrations
• Renewal of registrations
• Filing of returns

Documents required for registration:

• Proof of Establishment (Sale deed or rent agreement)
• Address Proof
• ID proof of authorized person
• Employee Details (if any)
• Images of establishment (interior and exterior)

For any assistance in this regards, please reach us on info@capunith.com

Following may be few of the registrations required based on the business:

• Trade License
• Import Export Code (ICE)
• Employee State Insurance (ESI)
• Professional Tax (PT)
• Goods and Service Tax (GST)
• MSME or Udyog Aadhaar

For Startups

Startup India Initiative was launched on 16th January, 2016 with an aim of supporting the entrepreneurs and building a vigorous startup ecosystem and transforming India into a nation of job creators instead of job seekers. Department of Industrial Policy and Promotion (DPIIT) is a dedicated team which manages this initiative.

Tax exemptions have been provided under Section 80IAC of the Income Tax Act, post these clearance the startups can avail tax holiday for 3 consecutive years out of the first ten years of incorporation, the startups can also avail tax exemptions' under Section 56 of Income Tax Act (Angel Tax) post recognition under DPIIT.

Eligibility Criteria for applying for Income Tax Exemptions under Section 80IAC:

• The entity should be recognized as Startup
• It should be incorporated after 1st April 2016
• It should be either Private limited or LLP only.

Eligibility Criteria for applying for Income Tax Exemptions under Section 56 (Angle Tax):

• The entity should be recognized as DPIIT Startup
• Aggregate amount of paid up share capital and share premium of the Startup after the proposed issue of share, if any, does not exceed INR 25 Crore.

Punith and Associates assist the startups in getting these recognitions and tax exemptions. We also provide various other registration and consultation services for startups. Please feel free to reach us at info@capunith.com