Govt notifies New Exemptions to Private Ltd Companies

Govt notifies New Exemptions to Private Ltd Companies

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The Government of India recently notified the exemption to Private Limited Companies under the provisions of Companies Act, 2013.

In the year 2015, the Government has issued four notifications granting several exemptions to Private companies, section 8 companies, Government companies and Nidhi companies.

As we all know that some exemptions were granted by MCA to Private Companies on 05.06.2015, the MCA has added more exemptions by amending the notification issued on 5th June, 2015 and by notifying further exemptions on 13th June, 2017.

As per the Notification, the exceptions, modifications and adaptations provided in it shall be applicable to a company covered under section B of the said Act which has not committed a default in filing its financial statements under section 137 or annual return under section 92 of the said Act with the Registrar.
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Exemptions to Private Companies under Companies Act, 2013

1. New Concept of *Start-up/ Start-up Companies* has been introduced:

Start up Private Companies are not required to prepare the Cash Flow Statements under Companies Act, 2013.

For the purposes of this Act, the term ‘start-up’ or “start-up company” means a private company incorporated under the Companies Act, 2013 (18 of 20’l3) or the Companies Act, 1956 (‘l of 1956) and recognized as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.”

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2. The Private Companies which are small companies are not required to mention the amount of *remuneration drawn* by Directors in Annual Return.

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3. The disclosure requirement of Adequacy of *Internal financial control in Auditor’s report* has been removed for a private company which is One Person Company or a small company or which has turnover less than rupees fifty crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or anybody corporate at any point of time during the financial year less than rupees twenty-five crore.

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4. The Startup Private Companies are also not required to hold minimum number of four *board meetings* in a year.
Earlier there were only One Person Company, small company and dormant company in this category of exemption.

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Read the full text of the Notification Here 👇👇👇👇

CLICK HERE

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Regards
ACA SOURAV BAGARIA

GST Council revises rates for 66 items

GST Council revises rates for 66 items

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After the 16th GST Council meet concluded today, the rates of 66 items under the upcoming GST regime have been revised.

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Some of the revised tax items in today’s GST Council Meeting are as follows:

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Cashew revised from 12% to 5%

Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces revised from 18% to 12%

Agarbatti revised from 12% to 5%

Dental wax revised from 28% to 8%

Insulin revised from 12% to 5%

Plastic beads revised from 28% to 18%

Plastic turpolin revised from 28% to 18%

School bags revised from 28% to 18%

Exercise books revised from 18% to 12%

Coloring books revised from 12% to nil

Pre-cast concrete pipes revised from 28% to 18%

Cutlery revised from 18% to 12%

Tractor components revised from 28% to 18%

Computer printers revised from 28% to 18%

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Another important item on which GST has been reduced was the entertainment tax on cinema.

Under the GST, there will now be two categories for movie tickets. For tickets that cost less than Rs 100, a tax of 18% will be levied. For the tickets costing more than Rs 100, a GST of 28% will be levied.

Presently, entertainment tax is levied by individual states. The states levy a different rate, ranging from 28-110%, and the weighted average for the entire country is about 30%.

However, several state governments give an exemption to cinema of the particular language of that state. Under GST, there will now be no centralised exemption.

Jailtley said:” If states want, through the DBT (Direct Benifit Transfer), the state can refund the GST of regional cinema.”

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For workers in industries like textile, diamond processing etc, where the workers take the work home, 18% tax that is now being charged will be fixed at 5% because the GST for these sectors have gone down as well.

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Composition Scheme Limit under GST hiked from 50 lacs to 75 Lacs

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The next meeting for the GST Council will be on June 18th

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Regards
ACA SOURAV BAGARIA

Cost Inflation Indexation For PY 2017-18

Cost Inflation Indexation For PY 2017-18

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CBDT Notified Cost Inflation Index for PY 2017-18 =272 with Base year as 2001-02 as follows:

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FINANCIAL YEAR

Cost Inflation Index

2001-02

100

2002-03

105

2003-04

109

2004-05

113

2005-06

117

2006-07

122

2007-08

129

2008-09

137

2009-10

148

2010-11

167

2011-12

184

2012-13

200

2013-14

220

2014-15

240

2015-16

254

2016-17

264

2017-18

272

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CII

Cost Inflation Index

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Note: This Notification shall come into force with effect from 1.4.2018 and shall apply accordingly to Previous Year 2017-18

HOW TO READY FOR GST??

HOW TO READY FOR GST??

Are you ready to implement GST

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Dear Friends, Following Points need to be considered for smooth transition to GST

1. Get Complete your working for Closing Stock for the period 31.3.2017 / 30.6.2017 before GST Implementation date .

2. Allocate your such stock into quantative mode.

3. Get the A/c Statement from your Suppliers / Creditors for the year ended 31/3/2017 & compiled them from your books.

4. Rectify Mismatch Reports of Purchases , if persists .

5. Revise your Vat Returns if point no.4 applies to you.

6. Make strict follow-up to Collect all the C forms/H Form/ I forms .

7. Get your Books Finalise for FY 2016-17

8. Make a separate file of those items which are shown in your Unsold stock as on 30.6.2017 e.g. Purchase Bills/ Bill of Entry/ Excise Paying Documents etc.

9. Stock ageing be made to ascertain if any stock is more than 1yr old. If yes then dispose it off immediately or sell it to your sister concern against Tax Invoice locally.

10. Classify stock tax rate wise, purchased locally to get ITC into SGST.

11. Classify stock purchased on invoices bearing Duty Payment & non duty payments to get ITC transferred to CGST.

12. Inform your GSTIN / ARN to all suppliers of Goods & Services.

13. Obtain GSTIN of all Suppliers & Buyers.

14. Apply for migration in all states if you have centralised registration under Service Tax.

15. Train your accountants for GST accounting and returns formats.

16. Make Chart of HSN CODES & GST Rates on your goods & services to be purchased & Sold.

17. Check whether any stock of one year old is lying with you .

18. Analyse P and L and see which expenses are liable to RCM.

19. Be in regular touch with your GST Consultant .

 

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Regards
ACA SOURAV BAGARIA