Monthly Archives: January 2016

TRANSACTIONS ABOVE 2 LAKHS…TIME TO DISCLOSE YOUR PAN DETAILS

The Central Government has executed a mandatory rule to quote the permanent account number (PAN) for all transactions exceeding Rs. 2 lakhs  in order to hold the flow of  black money.

This requirement will come into effect from 1st January 2016 and will be applicable on all sale and purchase of goods and services including all modes of payments.

This move will also have a zooming eyeball on the highly expensive household electronics gadgets,foreign holidays via tour packages, expensive jewellery and watches and also will indirectly be of maximum help to audit to catch hold of high value transaction by one particular individual by  cross checking with the IT department whether the individual has declared the income or not.

Valuable tips to businessman and service providers :

It is  advisable to get a copy of PAN (formally on their letterhead) from all the customers on whom they  are likely to raise bills exceeding Rs 2,00,000/- .

 It is also necessary to furnish PAN of buyer/service recipient  on all invoices exceeding Rs. 2,00,000/- subject to verification of the their pan details.

Below list shows some changes in limits for quoting pan details:

  • Sale or purchase of immovable property raised from 5 lakhs to 10 lakhs
  • Restaurant bill raised from Rs.25000 to Rs.50,000 (this refers to one time bill)
  • Purchase or sale of shares of an unlisted company from 50,000 to 1 lakh.

Please remember heavy penalties are prescribed for failure to comply with these requirements.

 This initiative will stiff the swings of black money, not only killing corruption but also  hold the flow of  money laundering.

 

Editor :  Mr.Baban Utekar 

Please feel free to reach me at [email protected] for further queries if any

 

 

NO MORE HASSLES FOR DIRECTOR IDENTIFICATION NUMBER (DIN) !!!!

Director Identification Number (DIN) is a Unique Identification Number issued by Central Government (Ministry of Corporate Affairs) given to an existing or a potential Director of the company which is incorporated. DIN was introduced under the section 266A & 266B of the companies act 1956 further amended as Act 23 of 2006.

WHY SHOULD ONE APPLY FOR DIN :

Every individual, who is or wants to be the director of the company, needs to apply for DIN.

It is a natural phenomenon for any company to raise funds from investors and public when it is created at the entry level. Unfortunately if the company faces loss due to bankruptcy due to which the Director is absconding, how do the investor trace these Director/s ????? The primary concern of introducing DIN is to keep a complete eye on the Directors so that they do not cheat anyone or even if they make an attempt to cheat, they can be traceable with the information gathered from DIN.

DIN not only helps in creating the identity of the Director but also maintains a successful data of the director’s existence with his past and present companies. Any minor or major changes done such as address etc, the same needs to be informed to the Central Government to keep the data live.

One DIN is required per director/person irrespective of how many co’s he is managing.

LIST OF DOCUMENTS NEED TO BE ATTACHED:

  • High resolution photograph of the applicant
  • PAN is mandatory (self-attested)
  • Present Address proof which should not be older than 2 months (self-attested)
  • Declaration of applicant in DIR-4 (notarized)
  • Copy of passport in case of foreign nationals.
  • Verification in Form No.DIR -4 is as per the format given in the website.

 Any person intending to apply for DIN shall have to make an application in e-Form DIR-3 and should follow the below procedure:

  • Download Form- DIR-3 from MCA Portal by given link. http://www.mca.gov.in/MinistryV2/Download_eForm_choose.html
  • Fill the given Particulars in e-form. 
  • Attach the photograph (JPEG). 
  • Attach scanned copy of documents as mentioned above. 
  • Physical documents are not required to submit at DIN cell. 
  • The e-Form shall have to be digitally signed and shall be uploaded on MCA21 portal. 
  • Form DIR-3 is mandatorily to be signed by an Applicant and a practicing professional or secretary (who is a member of ICSI) in whole time employment or the Director of the existing company. 
  • The applicant is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees or the Professional is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees . 
  • After obtaining the login-id, Login to the MCA21 portal and click on ‘e-Form upload’ link available under the ‘e-Forms’ tab for uploading the e-Form DIR-3.

 OTHER MANDATORY THINGS TO FOLLOW:

  • Upon upload, pay the fees for e-Form DIR-3.
  • Only electronic payment of the fees shall be allowed (I.e. Net banking / Credit Card). No challan payment will be accepted under revised procedure of DIN allotment. e-Form DIR-3 will be processed only after the DIN application fee of Rs 500 /- is paid. 
  • Approved DIN shall be generated in case the form is being signed by a practicing professional and details have not been identified as potential duplicate. Provisional DIN shall be generated in case form is signed by secretary in whole time employment or Director of existing company and details have been found as potential duplicate. A suitable informational message and an email shall be provided to the user that the DIN shall be approved after due verification by the DIN cell. 
  • Processing of e Form DIR-3. 
  • In case, DIR-3 gets certified by the professional (i.e. CA (in whole time practice)/ CS (in whole time practice)/ CWA (in whole time practice)/, the DIN will be approved by the system immediately online (in case it is not potential duplicate). 
  • Post-approval changes in particulars of Form DIR-3. 
  • If there is any change in the particulars submitted in e-form DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting e-form DIR-6 along with the required attested documents.

 APPROVAL OF DIN:-

After uploading the form and payment, either approved or provisional DIN is generated within 3 working days subject to details are not potential duplicate. 

POSSIBLE REASONS FOR  REJECTION OF DIN APPLICATION:-

  • The supporting documents are invalid or expired.
  • The proof of identity submitted has not been issued by a Government Agency.
  • The submitted application does not have photograph affixed.
  • The applicant’s name, father’s name, date of birth of applicant filled in application form does not match with the name in the enclosed evidence.
  • If enclosed documents are not self attested.

 CONCLUSION:-

DIN application process is simplified to the extent possible by Ministry of Corporate Affairs. Any applicant proposed to be director can apply and obtain one within very short duration. This is one of the mandatory requirements for all E-filing of companies

Author :  Ms. Raksha Iyer (Article @ APD)

[email protected]

 

“NO CA CERTIFICATE For Various Exchange Remittances”

Central Board of Direct Taxes (CBDT) is empowered by Section 195 of the Income Tax Act to seize information in regards of payments made to Non Residents, whether chargeable to tax or not. Rule 37 BB of the Income-tax Rules has been altered vide Notification No. G.S.R. 978(E) dated 16th December, 2015 to maintain a balance between reducing the burden of compliance and collection of information under section 195 of the Act.

Summary Of Specification Of Rule 37 BB Is As Below:

A person responsible for making a payment to a non-resident or to a foreign company has to provide the following details:

 When payments made is Rs.5, 00,000/- or less,

For such payments information is required in Part A of Form 15CA

 When payment made exceeds Rs. 5,00,000/-

  • A certificate from Assessing Officer under Section 197
  • An order from Assessing Officer under section 195(2) or 195(3)
  • Part B of Form 15CA has to be provided
  • Certificate in Form 15CB from an accountant
  • Part C of Form 15CA

The Changes Under The Rectified Rules 37bb Are As Follows:  

No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not require RBI approval under its Liberalised Remmittance Scheme (LRS).

Further the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.

Following Are The Five New Exempt Payment Types :- 

  • Advance payment against imports
  • Payment towards imports-settlement of invoice
  • Imports by diplomatic missions
  • Intermediary trade
  • Imports below Rs.5,00,000-(For use by ECD offices)

 A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5,00,000/-

Prescribed form No. 15CC for Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made by him.

The amended Rules will come into force from 01.04.2016.

Please feel free to reach me at [email protected] for further queries if any.