Frequently asked questions

GST Registration

Is it mandatory to regsiter for GST ?


GST Registration is compulsory, if : 1. Annual Turnover exceeds to ₹ 40 Lakhs ( ₹ 10 Lakhs for North- Eastern states and hilly states) 2. E-Commerce Operator. 3. E-Commerce Seller. 4. TDS Deducter. 5. A casual taxable person having business location in other states. 6. Those supplying online data base access service from outside India. 7. Those who were earlier regsitered under VAT and Service Tax.




What documents are required for GST Registration ?


Goods and Services Tax (GST) registration is mandatory if annual turnover of firm exceeds ₹ 40 Lakhs ( ₹ 10 Lakhs for hilly areas). If you are E-Commerce operator, it is mandatory even if annual turnover is less than ₹ 40 Lakhs. GST registration certificate is also an important legal document that can be used to apply for business loan and other purposes. GST registration can be made offline as well as online mode by submitting required documents as per guidelines. Lets discuss the documents required for GST registration in case of different forms of organisation. For Sole Proprietorship : 1. Passport size photograph of proprietor 2. PAN Card 3. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 4. Bank Statement or Cancelled Cheque For Partnership Firm (General) : 1. Passport size photograph of partners 2. PAN Card of partners 3. PAN Card of firm 4. Partnership Deed 5. Authorisation Letter 6. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 7. Bank Statement or Cancelled Cheque For Partnership Firm (Limited Liability) : 1. Passport size photograph of partners 2. PAN Card of partners 3. PAN Card of firm 4. Partnership Deed 5. Authorisation Letter 6. Digital Signature Certificate (DSC) 7. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 8. Bank Statement or Cancelled Cheque For Hindu Undivided Family : 1. Passport size photograph of partners 2. PAN Card of promoter 3. PAN Card of firm 4. Authorisation Letter 5. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 6. Bank Statement or Cancelled Cheque For Private Limited Company : 1. Passport size photograph of Promoter 2. PAN Card of promoter 3. PAN Card of firm 5. Photograph of authorised signatory 6. Certificate of incorporation 7. Authorisation Letter or copy of resolution passed by bOD 8. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 9. Bank Statement or Cancelled Cheque For Public Limited Company : 1. Passport size photograph of Promoter 2. PAN Card of promoter 3. PAN Card of firm 5. Photograph of authorised signatory 6. Certificate of incorporation 7. Authorisation Letter or copy of resolution passed by bOD 8. Address Proof : If owned : Electricity Bill/ Property Tax Receipt/ Municipal Khata Copy/ any other valid legal document If Rented : Rent agreement/ lease agreement/ NOC from property owner 9. Bank Statement or Cancelled Cheque




What is the mode of GST Registration ?


GST Registration can be made by offline mode as well as online mode.




How much time it will take to get GST Certificate through online mode ?


Usually it takes 3 to 4 working days if applied through online mode.




How much time it will take to get ARN number ?


Usually it takes 15 minutes to receive ARN number .




What to do if GST registration application is cancelled ?


Normally GST Authority doesn't cancel application directly . Usually they want some clarification related to documents or business activity . If they don't find a satisfactory answer then only aplication is cancelled . In the case a fresh application can be filed .




Is it mandatory to have a bank account at the time of registration ?


No it is not mandatory to have a bank account for GST registration . Bank details can be added any time after GST registration by filing amendments .




Can we change in details after GST registration ?


Yes all the details can be changed by filing amendment except PAN number .




What to do if GST Registration is cancelled for non filing of returns ?


First file all the pending returns and clear all the liabilities on account of returns or late fess or any other chaarges and penalties . After fiiing returns just make an online application for revocation of GST registration stating the reasons and clarifications . If GST Officer is satisfied with the application filed he/ she issue an order to revoke, if not cancelled within 30 days .





GST Return

Who has to file Monthly Return (GSTR-3b) ?


Every individual or firm has to file monthly return (GSTR-3b) even if no transaction take place.




Who has to file GSTR-1 ?


every individual or firm has to file GSTR-1, even if no transaction take place. Follwing tax payers are exempted from filing GSTR-1: 1. Registered as composition dealer 2. Registered as Input service distributor 3. Taxpayer liable to collect to collect TCS OR TDS 4. Non resident taxable person




Can I file GSTR-1 on quarterly basis ?


Yes, you can ! if your annual turnover is less than ₹ 2 Crores ?




What happened if GST return is not filed ?


Being a registered GST tax paper it is compulsory to file GST return on or before due date even if no transaction take place. Not filing GST return on or before due date results in imposing penalty . Authorities has also right to cancel GST number if GST return is not filed for 6 months .




What is due date to file GST Return ?


Due date to file GST return is notified time to time. Usually GSTR-3b has to be filed on or before 20th of next month, GSTR-1 to be filed on or before 10th of next month .





Private Company Registration

What are the documents required for Private Limited Company Registration ?


1. Pan Card of all members 2. Proof of place of busniess 3. Passport size photograph of all members 4. Latest Bank Statements 5. Address proof of members 6. Digital Signature 7. Pan Card of Firm 8. MOA 9. AOA 10. Consent of directors




What is minimum paid up capital for a Private Limited Company ?


₹ 1,00,000




What number of directors can be there in a private Limited Company ?


Minimum 2 directors should be there in a Private Company .




How much it takes to register a Private Limited Company ?


Usually it takes 4 working days to 7 working days .




Is it possible to convert a Private Limited Company to other legal entities ?


Yes a Private Limited Company can be converted into Limited Liability Partnership (LLP), One Person Company (OPC) or Public Limited Company as per convenience and suitability. A Private Limited Company Can't be converted into a General Partnership or Sole Proprietorship.




What are the priviledges of Private Limited Company ?


- Limited Liability of all members- It simply means members are not individually Liable to pay of the Liabilities of firm, which results in decrease in degree of risk. - Simple process of formation. - Goodwil build up. - Easy to wind Up. - Growth and Expansion. -




Can we raise fund through FDI ?


Yes





One Person Company

What is meant by One Person Company ?


One Person Company is a private company incorporated by an individual and same individual act as a director, member and shareholder.




Can a firm be a member of One Person Company ?


No as per Companies act guidelines only a natural person can be a member in One Person Company .




Can a Non-resident Indian or foreigner can be a member of One Person Company ?


No only an Indian citizen and resident in India can be a member in One Person Company .




What are the advantages of One Person Company ?


1. Freedom in decision making 2. Easy to incorporate as it requires less paper work 3. Few compliances to follow after incorporation 4. Limited Liablity that simply means Member/ Director is not personally Liablle to pay off the Liability of One Person Company 5.As per need One Person Company can be converted in to other legal entities like Private Limited and Limited Liability Partnership




Can an individual be member in two or more One Person Company ?


No an individual can be a member of only One Person Company .




What is minimum paid up capital to incorporate One Person Company ?


Rs. 1 Lakh




Is it compulsory to nominate a nominee ?


Yes it is compulsory to nominate a nominee in case of One Person Company .




Who can be a nominee in One Person Company ?


Any adult natural person having Indian citizenship and resident in India can be appointed as nominee in One Person Company .




How much time it will take to register One Person Company ?


Usually it takes 5 days to 7 Days to incorporate a One Person Company .




What documents are required to incorporate One Person Company ?


1. PAN Card of director 2. Voter id/ Passport/ Driving Licence of director 3. Latest Bank Statement/ Telephone bill/ Electricity bill not older than 2 months 4. If firm address is rented : Rent agreement or No Objection Certificate 5. If firm address is owned : Telephone bill/ Electricity bill/ Municipal tax receipt not older than 2 months





Limited Liability Partnership

What is meant by Limited Liability Partnership ?


Limited Liability Partnership (LLP) is a partnership inwhich one or all partners have limited Liability .




What number of partners can be there in Limited Liability Partnership (LLP) ?


Minumum twp partners and there is no upper limit .




What is minimum paid up capital in case of Limited Liability Partnership (LLP) ?


No minimum capital is required to start Limited Liability Partnership (LLP).




Who can be a partner in Limited Liability Partnership (LLP) ?


Any individual or firm or body can be a partner in Limited Liability Partnership (LLP) .




What are the documents required for Limited Liability Partnership (LLP) ?


1. PAN Card of partners 2. Passport/ Driving Licence/ Voter Id card of partners 3. Passport size photograph of partners 4. Business address proof: If owned : Electricity bill/ telephone bill/ Gas bill If rented : Rent agreement




How much it takes to register Limited Liability Partnership (LLP) ?


Usually it takes 4 to 7 days




What are post incorporation compliances in case of Limited Liability Partnership (LLP) ?


1. Filing of Limited Liability Partnership (LLP) agreement (Form 3) with ROC within 30 days of incorporation . 2. Depositing the contributed amount in to bank Account . 3. Annual Return Filing .




Can a foreigner or NRI be partner in Limited Liability Partnership (LLP) ?


Yes a foreigner or NRI can be a partner in Limited Liability Partnership (LLP) subject to have a designated partner as Indian resident .





Income Tax Return

Who has to file ITR-1 ?


An individual has to file ITR-1 subject to fulfill the following conditions : 1. Residential Status- Should be Indian resident . 2. Income Range- Rs. 2,50,000 to Rs. 50,00,000 during a financial year . 3. Souces of Income - Salary, Rental income from one house property, Interest income from bank deposits .




What are the documents required for filing ITR-1 ?


Following details are required to file ITR-1 : 1. PAN Card details ( Name, PAN Number, Date of birth ) 2. Email-Id 3. Mobile Number 4. Bank Account Number and IFSC Code 5. Address 6. Aadhar Number Following documents are required to file ITR-1 : 1. Rent Receipt Copy ( In case of rental income ) 2. Form-16 (For salaried person) 3. Interest certificate (In case of interest income )




What is the mode of filing ITR-1 ?


ITR-1 can be filed online as well as offline .




What are the consequences of not filing ITR-1 ?


If you have not filed ITR-1, even if you were eligible to file may results in levying penalty by Income Tax department . Apart from penalty Income Tax department may issue notice seeking the reason why ITR-1 was not filed .




What is Income Tax slab for the year 2019-20 .


Income tax slab for the financial year 2019-20 (Assessment year 2020-21) is as follows : For General Category ( Less than 60 Years) * Up to Rs. 2,50,000 - Nil * Rs. 2,50,000 to Rs. 5,00,000 - 5% * Rs. 5,00,000 to Rs. 10,00,000 - 20% * Rs. 10,00,000 and above - 30% For Seniour Citizen Category ( 60 Years to 80 Years ) * Up to Rs. 2,50,000 - Nil * Rs. 2,50,000 to Rs. 3,00,000 - 5% * Rs. 3,00,000 to Rs. 5,00,000 - 5% * Rs. 5,00,000 to Rs. 10,00,000 - 20% * Rs. 10,00,000 and above - 30% For Super Seniour Citizen Category ( 80 Years and above ) * Up to Rs. 2,50,000 - Nil * Rs. 2,50,000 to Rs. 3,00,000 - Nil * Rs. 3,00,000 to Rs. 5,00,000 - Nil * Rs. 5,00,000 to Rs. 10,00,000 - 20% * Rs. 10,00,000 and above - 30%




Who is eligible to get standard deduction ?


Every tax payer whose annual income during a financial year from all sources is Rs. 5,00,000 or less is eligible to get standard deduction up to Rs. 12,500 u/s 87A.




Which savings or investments are covered u/s 80C ?


Section 80C is a provision of Income Tax Act under which a tax payer can claim a deduction of Rs. 1,50,000 on savings and investments specified in the provision . Following savings and investments are covered u/s 80C : 1. Life Insurance Premium 2. Employees Provident Fund 3. Public Provident Fund 4. Voluntary Provident Fund 5. General Provident Fund 6. Sukanya Samridhhi Yojna 7. National Saving Certificate 8. Unit Linked Insurance Plan 9. Fixed Deposit ( for 5 years or more) 10. Senior Citizens Saving Scheme 11. Mutual Fund (ELSS ) 12. Repayment of housing loan (Interest excluded) 13. Tuition Fees 14. Stamp duty and registration charges on housing property




What is due date to file ITR ?


ITR can be filed by the end of July .




Who is eligible to File ITR-2 ?


An individual or Jount Hindu Family who sourced income of Rs. 2,50,000 or more from following is eligible to file ITR-2 : 1. Salary 2. Pension 3. Rental income (One or more than one property) 4. Capital Gain 5. Agriculture income more than Rs. 5,000. Note: If sourced any income from business and profession is not eligible to file ITR-2 .




What documents are required to file ITR-2 ?


1. Form 16 ( If sourced income from salary ) 2. Rent Receipt ( If sourced income from hose property) 3. TDS Certificate ( If sourced income from interest ) 4. Statement of profit or loss issued by the ( If sourced capital gain )




Who is eligible to file ITR-3 ?


An individual or Joint Hindu Family who sourced income from following : 1. Salary 2. Pension 3. Rental income 4. Capital Gain 5. Business and profession 6. Income as a partner