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Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY) provides subsidized loans through Financial institutions to facilitate the establishment of enterprises in the state and to provide new employment opportunities to all sections of the society.

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Role of Financial Institutions under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Under the scheme, loans will be provided for manufacturing, service and business enterprises through financial institutions like (Nationalized Commercial Bank, Private Sector Scheduled Commercial Bank, Scheduled Small Finance Bank, Regional Rural Bank, Rajasthan Financial Corporation, SIDBI and Urban Cooperative Banks).

Which Type of Enterprise is eligible

Along with newly established enterprises, pre-established enterprise will also be eligible for expansion / diversification / modernization projects.

Who Can Apply

Under the scheme Individual applicants as well as institutional applicants (self-help groups / societies / partnership firms / LLP firms / companies) will also be eligible. The establishment of the enterprise under the scheme will be Rajasthan State. The minimum age of the individual applicant shall be 18 years.

Loan Amount under Scheme

Under the scheme, loan up to Rs. 10 crore will be available for new Manufacturing and Service Enterprises and Rs. 1 Crore for units going for expansion/diversification/ modernisation . The maximum limit of loan for business will be Rs. 1 crore. The nature of the loan will be composite loan, term loan and working capital (including CC Limit). As per RBI guidelines, collateral security will not be needed on loans upto Rs. 10 lakh.

Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

The Interest Subsidy will be granted to the beneficiaries on the loan provided by banks which will be payable as follows for five years:

S.No.Maximum Loan AmountInterest Subsidy
1. Up to 25 Lakh8%
2. 25 Lakh to 05 Crore6%
3. 05 Crore to 10 Crore5%

Process

Under the scheme, the applications will have to be submitted online, whose process will be according to the guidelines prescribed for the implementation of the Scheme. Loan applications up to Rs. 10 lakh can be forwarded directly to the banks without any interview and the loans above Rs. 10 lakh will be forwarded to the bank after being scrutinized by the District Level Task Force Committee.

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How to File Form 10BD ( Donation Return) for 80G registered NGO

In this article, we will discuss the filing of Donation Return in Form 10BD, Form 10BD ( Donation Return) is required to be filed by every NGO registered under Section 80G of the Income Tax Act, where Donors get tax deductions on the basis of donations made by them to such registered insitituions. In the Amendments made in the Finance Act, the government has made it mandatory filing for such institutions to file Donation returns on or before 31st may, Late filing will attract a fee of Rs. 200 per day.

Form 10BD (Donation Return)

Information required for Filing Form 10BD ( Donation Return)

Following Information of Donar is required for the Filing of Donation form on the Income Tax Portal:

  1. ID Code- PAN, Aadhar, Passport, Tax Identification Number ( anyone)
  2. Name of Donar
  3. Address of Donar
  4. Donation Type – Corpus, specific, others
  5. Mode of Receipt of Donation – Cash, Kind, Electronic, Others
  6. Amount of Donation

Procedure for Filing form 10BD ( Donation Return) on Income Tax Portal

  1. Login to Income Tax Portal
  2. Select Filling of Forms
  3. Search and Select Form 10BD
  4. Prepare the Form
  5. Upload Excel with Donar and Donation Details ( Click below to download Excel)
  6. Submit the Form and Download the Acknowledgement

Donation Certificate in Form 10BE

Once the Return in Form 10BD is submitted, the Certificate in Form 10BE will be available for download on Income Tax Portal. NGO is required to give such certificates to Donors to enable them to claim 80G exemption.

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Annual Filings for Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is a separate legal entity and Separate from Its partners, LLP is governed by LLP Act, 2008, LLP Rules, and in accordance with LLP agreement, LLP act and rules provides for the Annual Returns that are required to be filed by LLP (LLP Annual Filing) to Registrar of Companies by every LLP. beside compliances of LLP Act and rules LLP is required to file its Income tax return and Tax Audit report if required, and designated partners of LLP is required to complete there annual DIN KYC every year, all this comes under LLP Annual Filing, below we have discussed main LLP annual filing that is required to be done by every LLP:

LLP Annual Filing

LLP Annual Filings Calendar

LLP Filing

  • LLP Form 11
  • LLP Form 8
  • DIR-3 KYC
  • Income Tax Return
  • GST Return
  • TDS Return

Due Date

  • 30th May
  • 30th October
  • 30th June
  • 30th July (Non-Audit)
  • Every month /Qtr ( For GST Registered)
  • Every Qtr ( if TDS deducted)

LLP Form 11 ROC LLP Filing

LLP Form 11 is required to be filed by every LLP, Even if LLP has not carried out any business activity LLP Form 11 is mandatorily required to be filed. LLP Form 11 is also known as LLP Annual Return and it contains information about the ownership structure of LLP like Capital Contributed by each designated partner or partner, who are the partners of LLP as on the financial year ending date for which Form 11 is required to be filed.

Mandatory Attachment of Form 11 – In Form 11 a document in respect of Designated partners and partners is required to be attached which contains details in which the designated partner of LLP is the Director or Partner.

LLP Form 8 ROC LLP Filing

LLP Form 8 is required to be filed by every LLP, LLP Form 8 is filed with respect to Statement of Accounts and solvency, In general, this form is required to be filed for filing LLP Annual Accounts to ROC. So before Filing this form LLP is required to be prepare and finalize its books of accounts, otherwise, it is not possible to file this form. LLP Audit is also done under this where Auditor is required to Digitally signed this form, in case LLP is required to get its accounts audited, Presently Limit for LLP Audit is Rs. 40 Lakh for turnover and Rs. 25 Lakh for Capital Contribution, if either exceeds this limit LLP is required to get its accounts audited.

DIR-3 KYC for Designated Partners of LLP (LLP Annual Filing)

DIR-3 KYC is mandatory for every designated partner of LLP, non-filing will lead to a fee of Rs. 5000 for activation of DIN of designated partner. The due date for filing DIR-3 KYC is 30th September.

Income Tax Return of LLP (LLP Annual Filing)

Every LLP whose accounts are not required to be audited is required to file its Income Tax return on or before 31st July. For Audited LLP the due date is 30th September.

GST Return of LLP (LLP Annual Filing)

If LLP has GST Registration, then LLP is required to file Applicable GST returns like GSTR3B, GSTR1, GSTR9, and other applicable returns on a monthly, quarterly or yearly basis as and when applicable.

TDS Return of LLP

If LLP has made payments that are required to pay after deduction of Tax at source, The TDS amount is required to be deposited before the 7th of next month and is required to file a Quarterly TDS return.

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Reduced Late Fee for LLP’s

Today we will discuss the recent Amendment made by MCA regarding fees payable by LLP, there was long-standing demand for the reduced filing fees for LLPs, In the ease of doing initiatives of the government of India, the new Reduced Late Fee for LLP will come out to be a game-changer for Small LLP.

Reduced Late Fee ( New Rules)

  • Completely Removed Rs. 100 Per Day Late Filing Fee and Introduced Rs. 10 ( for Small LLP’s ) Rs. 20 ( others) per day after a delay of 300 Days.
  • Per day Late only for Form 8 and Form 11
  • 2, 4, 6, 10, 15, 25 Time’s of Normal Filing Fee Applicable based of Number of Days Dealy for Small LLP’s
  • Small LLP Concept Introduced
  • Up to 50 times of Normal Fee applicable to other than Small LLP’s based on Number of Days dealy

Higer Late Fee ( Old Rules)

  • Rs. 100 Per Day applicable to all types of LLP’s
  • No Upper Limit ( Dealy of 100 Days costs Rs. 100*100= 10000/- )
  • All LLP forms are included in Rs. 100-day system.

A delay of 100 days for Small LLP having a Capital of Rs.1 Lakh will cost Rs. 50*10 = 500 Plus Rs. 50 = Total Rs. 550, resulting in savings of Rs. 9450

The new amended rules will be applicable from the 01st day of April 2022.

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Tax on Cryptocurrency as Virtual Digital Assets

In the Union Budget for FY 22-23, the government of India announced provisions related to Taxation of Cryptocurrency as Virtual Digital Assets, earlier to this there was no provisions for taxation of Cryptocurrency and as General practice, most the Taxpayers are declaring their income either as Trading business or if brought as an investment perspective than as Capital Assets, Short Term or Long Term Capital Gain provisions are been followed by many Industry Experts. In this article, we will discuss provisions related to the Taxation of Crypto as Digital Virtual Digital Assets.

Meaning of Virtual Digital Assets

“Virtual Digital Asset” Means––

(A) Any Information Or Code Or Number Or Token (Not Being Indian Currency Or Foreign Currency), Generated Through Cryptographic Means Or Otherwise, By Whatever Name Called, Providing A Digital Representation Of Value Exchanged With Or Without Consideration, With The Promise Or Representation Of Having Inherent Value, Or Functions As A Store Of Value Or A Unit Of Account Including Its Use In Any Financial Transaction Or Investment, But Not Limited To Investment Scheme; And Can Be Transferred, Stored Or Traded Electronically;

 (B) A Non-Fungible Token Or Any Other Token Of Similar Nature, By Whatever Name Called;

(C) Any Other Digital Asset, As The Central Government May, By Notification In The Official Gazette Specify: Provided That The Central Government May, By Notification In The Official Gazette, Exclude Any Digital Asset From The Definition Of Virtual Digital Asset Subject To Such Conditions As May Be Specified Therein

Digital Virtual Assets

Tax on Crypto as Virtual Digital Assets

For Taxation of Virtual Digital Assets new Section 115BBH has been inserted in Income Tax Act

Where the total income of an assessee includes any income from the transfer of any virtual digital
asset, the income-tax payable shall be the aggregate of

(a) the amount of income-tax calculated on the income from transfer of such virtual digital asset at the rate of thirty per cent and

(b) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the income referred to in clause (a).

From the above, it is clear that the minimum tax rate shall be thirty percent on any income received from Transfer of Virtual Digital Assets if your rate of tax is below thirty percent or if your rate of tax is more than thirty percent than the higher rate of tax applicable will be the rate of Tax on transfer of Virtual Digital Assets.

Deduction allowed while Calculating Income of Virtual Digital Asset

While calculating income from Virtual Digital Assets deduction in respect to Cost of Acquisition will be allowed and no other deduction will be allowed. Also, Set-off of any loss will not be allowed while calculating income from Virtual Digital Assets.

TDS on payment on Transfer of Virtual Digital Assets

A New Section 194S has been inserted in Income-tax Act for Provisions related to TDS on Virtual Digital Assets

Any person responsible for paying to a resident any sum by way of consideration for transfer of a virtual digital asset shall, at the time of credit of such sum to the account of the resident or at the time of payment of such sum by any mode, whichever is earlier, deduct an amount equal to one percent. of such sum as income-tax thereon

Further, if there is an exchange of one Virtual Digital Assets for another than the person responsible for paying such consideration shall, before releasing the consideration, ensure that tax has been paid in respect of such consideration for the transfer of virtual digital assets.

Non Applicability of TDS on specified person

TDS on Crypto is not applicable if the value or aggregate value of such consideration does not exceed fifty thousand rupees and ten thousand rupees for other than specified persons during the financial year.

“specified person” means a person,–– (a) being an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed one crore rupees in case of business or fifty lakh rupees in case of the profession, during the financial year immediately preceding the financial year in which such virtual digital asset is transferred; (b) being an individual or a Hindu undivided family, not having any income under the head “Profits and gains of business or profession”

TDS provisions will be applicable from 01st July 2022.

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Step by Step Udyam Registration Process

In this article we will discuss about Udyam Registration process, MSME has now made Udyog Aadhar registration as Udyam registration. After registering the Udhyam, you will be able to take advantage of MSME schemes of government of India or your respective state governments.

Visit Udhyam Registration Portal

In the first step you are requried to visit the Offical Website of MSME Udhyam Registration , the offical website for Udhyam Registration is

https://udyamregistration.gov.in

 Udyam Registration Process

Start Udyam Registration Process

Aadhar Details and OTP Verification

Once you visit the portal , you are required to enter Aadhar Number of Applicant , and Mobile Number , Please note that OTP will be send to Aadhar Linked Mobile Number of Applicant. Once you enter the OTP , the Application will proceed further for more details.

Type of Organisation and Pan Verification

Once you visit the Portal, you are required to type of Organisation and pan verification is Applicant. Fill the Details.

GSTIN and ITR Details

Do you have GSTIN and ITR so fill the details Otherwise click no.

Udyam Applicant Details

Detalis the udyam Applicant as name, Email. Mobile no, and Category Gender specially abied business and unit name Etc.

Plant Location details

Give the your plant location detalis as unit name, flat budding and town, block, road, city and pin etc.

Official Address Details

Give the your official address detalis as flat, buddling, town, block, road, city and pin etc.

Previous EM-2/UAM Details

already you have em-2/uam Click the EM-2/UAM option and fill the all details otherwise click nil option.

Enterpris Detalis

Give the enterpris detalis as incorportion, whether production and commencement.

Bank and Activity unit details

Give the bank detalis as bank name, ifs code and applicant account number.and fill the activity unit detalis.

NIC Code detalis

Give the detalis NIC code According your name of Enterprise. NIC code 3 colam and differnt type NIC code.

Number of Employed details

give the detalis employed as male, female, and other, fill the correct number of employed.

Investment and Turnover Details

Fill the correct investment and turnover details and give the district industries center. and the last step click submit and get final OTP. and wait some time.

After some time you see the next window open. enter the OTP and verification code and click the final submit. and wait some time.

after you see new window open and your Udyam Registration Process completed.

you recive your msme registration number.

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How To Obtain An ISI Certification (Bureau of Indian Standards)

How To Obtain An ISI Certification (Bureau of Indian Standards) 1

ISI certification is granted to corporations and products by the BIS (Bureau of Indian Standards), which is the standardization authority of India. ISI Certification ensures that the products that are delivered to the customers are safe are in adherence with all the quality and safety standards set by them.

ISI mark or the Indian Standard Institute, which is known as BIS, is a standard body in India that checks the quality and the efficiency of different products in India and hence keeps in check if the company is following the laid out standards given by the Institute. Now there is a very common misconception amongst the general public that ISI Certification and ISO Certification are one and the same thing. However, this is not at all true, even though both certifications work on laying out different standards and aim for one thing that is high-quality products and services to be given out they are still very much different.

Whereas  ISO Certification is provided to a company and the way it works, the internal working system (in accordance with the International Standards laid out by the ISO), ISI Certification is given out to products also, more commonly known as ISI mark.

The objectives of ISI Certification in India are as follows:

  • Ensuring delivery of high-quality products to customers;
  • Reducing wastage of resources and thereby minimising the production costs;
  • Mitigating product rejections;
  • Enhancing customer satisfaction and increasing the goodwill of the business;
  • Providing better growth prospects to the business;
  • Guaranteeing the quality and safety of products.
ISI Certification

Who grants ISI Certification in India?

The National Standard Body, i.e., BIS (Bureau of Indian Standards), has the autonomy to grant ISI certificates or mark in India. Further, once an application for the ISI Certificate is received, the BIS officer starts a preliminary examination and verification of the factory premise. The same is done to ensure that the product not only complies with the Indian Standards but is also safe to use and is not hazardous to the health of citizens in any form.

The following are the benefits of an ISI Marked Product:

  • An ISI marked products certifies its quality to its customers;
  • An ISI marked product reduces the business’s losses as well as product rejection;
  • An ISI marked product guarantees both better performance and longer shelf life.

Which products require Mandatory ISI Certification?

At present, the Indian Government has implemented numerous changes to the manufacturing and trading sector. These changes include specifying higher standards by the BIS (Bureau of Indian Standards) which must comply with by every manufacturer who wants to sell their product in the market. The following products require compulsory ISI Certification:

  • Household Electrical Appliances
  • Food Related Items
  • Cement
  • Medical Equipment
  • Oil Pressure Stoves and Cylinders
  • Automobile Components
  • Electrical Transformers
  • Steel Products
  • Milk Powder
  • Kitchen Appliance
  • Iron
  • LPG

The key pointers to consider about ISI Mark certification in India are as follows:

  • Details of the ISI mark certification must be specified by the seller on every invoice.
  • Anyone can file a complaint to BIS if the product is not of good quality.
  • All the manufacturers are regularly monitored by the BIS.
  • The BIS Officer requires three months’ time to investigate a complaint filed against a manufacturer.

What are the Documents required for obtaining ISI Certification?

The documents required for obtaining an ISI Certification are listed below:

  • Registered address of the manufacturing unit; Plant
  • A copy of the Certification of Registrations;(COI, in case of company, pan card in case of propriertor, Partnership deed in case of partnership )
  • A copy of the Test Report by a BSI (Bureau Standards of India) authorized internal laboratory;
  • Details of all the equipment used for testing;
  • Packaging details like the size of the product, storage facility, quantity, etc.;
  • Flow chart followed in the process of manufacturing;
  • Proof of Indian Residency;
  • A copy of the Trademark Registration;
  • The disposing technique of the inferior product;
  • All the details regarding the quality control staff like Name, Experience, Designation, and Qualification;
  • Layout Plan of the Factory;
  • Particulars about the raw material being used;
  • All the details regarding machinery installed;
  • A copy of Certificate from the Regulatory Authority;
  • Product drawing;
  • A copy of the Company’s bank statement;
  • Utility bills like electricity bills, water, tax receipt.

Validity Of Certificate

The issued ISI Certificate is valid for a time span of one year and the same is qualified to get renewed after the expiry.

How to apply for the Renewal of ISI Certification?

An ISI Mark Certification is valid for one year. However, the same can be renewed further by filing an application for the renewal and paying the renewal fees prescribed.

What is the Penalty for misusing an ISI mark?

If a manufacturer/ producer of any goods counterfeits or imitates a registered mark, the manufacturer will be subjected to a penalty of Rs 50000 and imprisonment for up to one year.

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List of important Legal Documents

In this article, we will discuss important Legal documents every company or startup should follow in practice, The document which clearly mentions the detailed terms and conditions, roles, and responsibilities has become a necessity for every business. Most businesses to scale up require alliances or business associates or require alternate resources or new technology, therefore to enter into a legal contract or obligation document which is the one that is clear enough to be easily understood by a person of ordinary prudence and at the same time detailed enough so that it cannot be wilfully misinterpreted is required and this documents than forms part of an integral part when the terms of the contract are beached by any party for commercial litigations purposes.

List of some important Legal Documents which every Startup Company or Business is Required :

  1. Business Associate Agreement
  2. Partnership Agreement
  3. Franchisee and Trademark Assignment Agreement
  4. Board Resolutions
  5. Business Takeover Agreement
  6. Work Space Sharing Agreement
  7. NON Disclosure Agreement
  8. Leave and Licence Agreement
  9. Software Licence Agreement
  10. Website Terms and Conditions, Privacy Policy and Disclaimer
  11. Refund Policy
  12. Social Media Policy
  13. Appointment Letter for Managerial Personals

 

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New Norms For Direct Selling Companies In India

To regulate the working of Direct Selling Companies the Union government has notified Consumer Protection Rules & asked direct selling companies to comply with them

  • It’ll be applicable to all goods, services bought or sold through direct selling as per new norms
  • All direct selling companies, sellers are prohibited from promoting pyramid schemes under new norms

The Union government has notified the Consumer Protection Rules, 2021, and asked the direct selling companies to comply with these rules within 90 days.

According to the new rules of the Ministry of Consumer Affairs, Food and Public Distribution, it will be applicable to all goods and services bought or sold through direct selling, all direct selling companies offering goods and services to consumers in India, including a direct selling entity, which is not established in India, but offers goods or services to consumers.

Under the new norms, all the direct selling companies and sellers are prohibited from promoting a pyramid scheme or enrolling any person in such scheme or participating in such arrangement in any manner whatsoever in the garb of doing direct selling business or participating in money circulation scheme in the garb of doing direct selling business.

The new rules direct the state governments to set up a mechanism to monitor and supervise the activities of direct sellers and direct selling entities while it makes a mandatory obligation for direct selling entities such as incorporation under the Companies Act, 2013, or if a partnership firm is registered under the Partnership Act, 1932, or if a limited liability partnership is registered under the Limited Liability Partnership Act, 2008.

The entities have a minimum one physical location as its registered office within India

It is also now mandatory to have a minimum of one physical location as its registered office within India and the companies to make a self-declaration that a direct selling entity has complied with the provisions of the direct selling rules.

Government notifies consumer protection rules, direct selling firms, latest national news updates, C

The entities must have a prior written contract with its direct sellers in order to authorise them to sell :

  • The entities must have a prior written contract with its direct sellers in order to authorise them to sell or offer to sell its goods or services, and the terms of such agreement will be just, fair and equitable, ensure that all its direct sellers have verified identities and physical addresses, issue identity cards and documents only to such direct sellers and also be liable for the grievances arising out of the sale of goods or services by its direct sellers.

Every direct selling entity must establish a mechanism for filing of complaints by consumers :

  • Every direct selling entity must establish a mechanism for filing of complaints by consumers through its offices or branches or direct sellers, either in person or through post, telephone, e-mail or website whereas all direct selling entities must maintain a record of all its direct sellers, including their identity proof, address proof, e-mail and other such information.

Every direct selling entity provides information regarding any direct seller on the request in writing made by a consumer after the purchase :

  • Every direct selling entity on the request in writing made by a consumer after the purchase of any goods or services, provide him with the information regarding any direct seller from whom such consumer has made a purchase, and such information must include the name, address, e-mail, contact number and any other information which is necessary for making communication with such direct seller for effective dispute resolution.

Advertisements consistent with the actual characteristics:

  • The new rules also specified that every direct selling entity must ensure that the advertisements for marketing of goods or services are consistent with the actual characteristics, access and usage conditions of such goods or services while no direct selling entity should directly or indirectly, falsely represent itself as a consumer and post reviews about its goods or services or misrepresent the quality or features of any of its goods or services.

Direct selling entity must maintain a record of all direct sellers :

  • Every direct selling entity must maintain a record of relevant information allowing for the identification of all direct sellers who have been delisted by the direct selling entity and such list must be publicly shared on its website and all direct selling entity must become a partner in the convergence process of the national consumer helpline of the Central government, the new norms added.