+91 8918900780 office@akhilamitassociates.com

CA for IT Companies and Startups in Pune — Company Registration, GST, Compliance and Everything In Between

CA for IT Companies and Startups in Pune

If you are building a technology company in Pune — whether you are operating from Hinjewadi, Kharadi, Baner, Wakad, or anywhere in between — your financial and compliance requirements are meaningfully different from a trading business or a manufacturing unit.

The structure of your revenue, the nature of your contracts, your hiring patterns, your plans to raise funding, your obligations under GST for software services, and the compliance timeline that begins the moment you incorporate — all of these have specific dimensions for IT companies that a general-purpose CA approach does not adequately address.

At Akhil Amit And Associates, we work with a significant number of IT companies, SaaS startups, technology consultancies, and software service firms across Pune and Pimpri Chinchwad. This guide explains what we have learned about what IT companies in Pune actually need from their CA — and what gets missed when founders choose the wrong advisory partner.

The Right Structure from Day One

Most IT founders in Pune incorporate a Private Limited Company — and they are right to. For an IT business, the Private Limited structure is almost always the correct choice, for reasons that go beyond the standard arguments about limited liability and credibility.

If you plan to raise funding, investors — whether angel investors, venture capital, or institutional — can only invest in a Private Limited Company in India. An LLP or proprietorship cannot issue equity shares in the way investors require, cannot structure ESOPs, and cannot accommodate the kind of governance frameworks institutional capital demands.

If you plan to hire senior talent with equity, ESOPs (Employee Stock Option Plans) are only available to Private Limited Companies. For IT companies competing for senior engineers and product managers, ESOPs are often a critical hiring tool.

If you have international clients, a Private Limited Company creates a cleaner business identity for invoicing, contract execution, and remitting foreign currency under FEMA. Your international clients — particularly in the US, UK, and Europe — are accustomed to dealing with incorporated entities, and a Private Limited Company’s compliance documentation satisfies their vendor onboarding requirements without friction.

We have written a detailed guide covering the complete Private Limited Company registration process in Pune — from why most startups prefer this structure to the documents required, the step-by-step SPICe+ process, and the realistic timeline. If you are still in the decision stage, that guide covers the full picture.

We handle Private Limited Company registration for IT companies and startups across Pune — from DSC procurement and name approval through SPICe+ filing, GST registration, Shop Act, and Udyam — as a complete process. The typical timeline with clean documentation is 3 to 5 weeks from start to a fully operational company.

Post-Incorporation Registrations — The Step Most IT Founders Miss

Getting your Certificate of Incorporation is not the finish line. Before your IT company can raise its first invoice, open a bank account, or onboard a corporate client, you need several additional registrations that sit entirely outside the Companies Act.

GST Registration — mandatory before your first invoice to any client outside Maharashtra, or to any client who requires a GSTIN for vendor onboarding. For IT companies serving corporate clients, this is effectively day one.

Shop Act (Gumasta Licence) — required for every business operating in Maharashtra, including IT offices in Hinjewadi, Kharadi, Baner, and Wakad. Banks including HDFC and ICICI ask for this when opening your company current account.

Udyam Registration — unlocks collateral-free loans up to Rs 2 crore, payment protection under the MSME Act, and eligibility for government contracts. Most IT startups qualify as Small Enterprises and should register immediately.

PTRC/PTEC (Profession Tax) — mandatory for the company itself and for employers as soon as the first employee joins.

We have covered all of these in detail in our guide on post-incorporation registrations for Private Limited Companies in Pune — including the correct sequence and realistic timelines for each registration.

GST for IT Companies and Software Services — What Most Founders Get Wrong

GST is more complex for IT companies than for most other business types — primarily because the nature of supply and the location of your clients significantly affects your GST obligations and cash flow.

Software services to Indian clients: If you provide software development, IT consulting, SaaS subscriptions, or any other technology service to clients within India — whether in the same state or different states — the service is taxable at 18% GST. If your client is in another state, you are making an interstate supply and are required to be registered for GST regardless of turnover.

Software services to foreign clients (exports): This is where many IT companies make expensive mistakes. If you are providing services to clients outside India, this qualifies as an export of services under GST. Exports are zero-rated — meaning no GST is charged on the invoice. However, to receive payment in foreign currency without GST liability and to claim refund of input tax credit, you must file a Letter of Undertaking (LUT) at the beginning of each financial year. Failing to file the LUT means you are either charging 18% GST on your export invoices (which your foreign clients cannot claim) or paying out of pocket when you should not be.

SaaS and subscription businesses: If your product serves both Indian and foreign customers, the place of supply rules, the distinction between OIDAR services, and the input tax credit treatment of cloud infrastructure expenses all need careful management.

RCM on imported services: If your IT company subscribes to AWS, Google Cloud, Zoom, Slack, or GitHub, you are technically a recipient of imported services. Under the reverse charge mechanism (RCM), you are required to pay GST on these subscriptions even if the vendor does not charge GST on the invoice. Most IT startups are unaware of this obligation.

We manage complete GST compliance for businesses in Pune — registration, LUT filing, monthly and quarterly returns, export refund claims, RCM tracking, and annual GST returns — ensuring your GST position is clean before any due diligence.

TDS — The Compliance Most IT Startups Ignore Until It Becomes a Problem

Technology companies transact heavily with vendors and contractors. Freelancers, subcontractors, cloud service providers, digital marketing agencies, SaaS vendors — all of these vendor relationships typically attract TDS obligations.

Section 194C — TDS at 1% to 2% on payments to contractors and subcontractors above Rs 30,000 per transaction or Rs 1,00,000 in aggregate per year. If you are outsourcing development work to freelancers or smaller firms, these deductions are mandatory.

Section 194J — TDS at 10% on fees for professional services and technical services. Software development, IT consulting, and related professional fees all fall under this section.

Section 194I — TDS on rent. If your office is rented and the monthly rent exceeds Rs 50,000, you must deduct TDS on rent payments.

Missing TDS deductions results in disallowance of the expense for income tax purposes and attracts interest and penalties. More practically, it surfaces during due diligence — investor lawyers specifically check TDS compliance as part of funding round documentation.

The Annual Compliance Calendar for IT Companies in Pune

Beyond GST and TDS, a Private Limited IT company in Pune has a full stack of annual compliance obligations. Missing any of them attracts daily compounding penalties under the Companies Act, 2013.

We have published a complete annual ROC compliance calendar for Private Limited Companies in Pune covering every deadline, every penalty, and every form in detail. Here is the summary specifically relevant to IT companies:

Within 30 days of incorporation: ADT-1 — appointment of statutory auditor. Most commonly missed early compliance — ₹25,000 minimum penalty.

Within 180 days of incorporation: INC-20A — commencement of business declaration. ₹50,000 penalty plus ₹1,000 per day if missed.

September 30 every year: DIR-3 KYC for all directors — DIN gets deactivated if missed. AGM must also be held by this date.

Within 30 days of AGM: AOC-4 — audited financial statements. ₹100 per day late fee.

Within 60 days of AGM: MGT-7 — annual return. ₹100 per day late fee.

Income tax deadlines: Tax Audit (if turnover above ₹1 crore) — September 30. ITR-6 for companies — October 31.

For IT companies that grow quickly, turnover crosses the tax audit threshold faster than founders expect. Planning for this in Q1 rather than discovering it in September is the difference between a smooth audit and a rushed one.

For answers to the most common compliance questions, visit our FAQ page for Private Limited Company directors.

Funding Readiness — What Investors Will Ask For

If your IT startup plans to raise angel investment or venture capital, the CA-related due diligence items investors ask for are predictable — and preparing for them proactively is significantly easier than assembling them under term sheet pressure.

Standard due diligence items investors request: – Certificate of Incorporation, MOA, AOA with proper object clauses covering your business activities – All ROC filings current — AOC-4, MGT-7, ADT-1, INC-20A – GST registration and last 12 months of returns – TDS returns for the last 2 years, showing no defaults – Audited financial statements for the last 2 years – Cap table (shareholding structure) documentation – ESOP plan documentation if options have been granted – FEMA compliance documentation if any foreign investors or NRI directors are involved

Founders who have maintained clean compliance from incorporation can provide this documentation within 48 hours of a due diligence request. Founders who have been managing compliance reactively typically need 4 to 6 weeks to remediate defaults and gather documentation — during which time investor interest can cool.

ESOP Compliance for Growing IT Teams

If your IT company plans to retain senior talent with equity, an ESOP (Employee Stock Option Plan) requires specific compliance steps that many founders handle inadequately.

The ESOP pool must be created through a board resolution and shareholder approval. The ESOP scheme documentation must comply with Companies Act requirements. Option grants, vesting schedules, and exercise events must be documented correctly at each stage. The income tax treatment of options at the time of exercise — as perquisite income, deducted under TDS — must be handled correctly for both the employee and in the company’s TDS returns.

Errors in ESOP documentation are difficult and expensive to correct after the fact. We assist companies in getting their ESOP structures right before the first grant.

Why IT Companies in Pune Choose Akhil Amit And Associates

We are a full-service CA firm with offices in Chinchwad, Wakad, and Ravet-Kiwale — serving IT companies across Pune, Hinjewadi, Kharadi, Baner, Wakad, and Pimpri Chinchwad.

Our work with IT companies includes Private Limited Company registration, GST compliance (including LUT filing and export refund management), TDS compliance, statutory audit, income tax filing, ESOP documentation, and funding due diligence preparation.

We currently manage compliance for 250+ companies across Pune, including IT service companies, SaaS startups, technology consultancies, and foreign-owned software subsidiaries operating in India.

If you are building an IT company in Pune and want a CA firm that understands the specific compliance landscape for technology businesses — not just a general practitioner — we are happy to have a conversation.

Frequently Asked Questions for IT Companies

Is 18% GST applicable on all software services? For services to Indian clients — yes, software services attract 18% GST. For exports to foreign clients, the service is zero-rated (0% GST) provided you have filed the LUT and payment is received in foreign currency. See our GST advisory page for more details.

When should an IT startup register for GST? If you have any international clients, register before your first invoice. If all your clients are in Pune, register when turnover approaches ₹20 lakh. Most IT startups with growth ambitions should register from day one.

What is LUT in GST and does my IT company need it? A Letter of Undertaking (LUT) is a declaration filed annually that allows you to invoice foreign clients without charging GST. If you have any foreign clients, you need to file the LUT before April 1 each year.

Do I need a statutory audit even if my IT company has no revenue? Yes. Every Private Limited Company must conduct an annual audit regardless of revenue. See our annual compliance guide for complete details.

How does TDS work for payments to freelance developers? Payments to freelance developers for technical services attract TDS at 10% under Section 194J if the payment exceeds ₹30,000 per year. Missing this is a common default in early-stage IT companies.

Akhil Amit And Associates is a Chartered Accountant firm based in Pune and Pimpri Chinchwad with offices in Chinchwad, Wakad, and Ravet-Kiwale. We provide company registration, GST, TDS, statutory audit, income tax, ESOP compliance, and funding due diligence support for IT companies and technology startups across Pune.

Related guides on this website: – Private Limited Company Registration in Pune — What Every Founder Should Know Before They Start – Post-Incorporation Registrations: GST, Shop Act, Udyam, and Profession Tax in Pune – Annual ROC Compliance for Private Limited Companies in Pune – Frequently Asked Questions — Private Limited Company Registration and Compliance

Annual ROC Compliance for Private Limited Companies in Pune — Complete Calendar, Deadlines, and What Happens If You Miss Them

Annual ROC Compliance for Private Limited Companies in Pune — Complete Calendar, Deadlines, and What Happens If You Miss Them

There is a moment every Private Limited Company director in Pune eventually faces.

An email arrives — or worse, a notice — from the Ministry of Corporate Affairs. Penalties have been levied. Filings are overdue. The late fee has been compounding, quietly, for months. And the director who received the notice had absolutely no idea any of this was due.

This is not an uncommon situation. It is, in fact, one of the most frequent problems we deal with at Akhil Amit And Associates. Not because founders are careless, but because nobody sat them down at the time of incorporation and explained what the Companies Act, 2013 actually requires from a Private Limited Company — every single year, regardless of revenue, regardless of whether the company has done any business at all.

This guide does that.

If you have a Private Limited Company registered in Pune or Pimpri Chinchwad — whether you incorporated last year or five years ago — this is your complete annual compliance reference. Read it once, share it with your co-founders, and use it every year.

Why Annual Compliance Cannot Be Ignored

Before getting into the specifics, it is worth understanding the legal framework.

Under the Companies Act, 2013, a Private Limited Company is a separate legal entity with its own obligations. These obligations exist from the moment the company is incorporated and continue every year — whether the company has revenue, employees, bank transactions, or not.

A dormant company with zero transactions still has mandatory annual filings. A newly incorporated company that has not yet started operations still has a compliance deadline within 30 days of incorporation. There is no grace period for new companies and no exemption for inactive ones.

The penalty structure under the Companies Act was significantly tightened in recent years. Most defaults now carry a fixed penalty plus a daily continuing penalty for every day the default continues. On some forms, the daily penalty for officer-in-default runs at ₹500 to ₹1,000 per day. For a company that discovers a three-year-old default, the penalties alone — before any legal fees — can run into several lakhs.

This is the cost of not knowing your compliance calendar.

The Complete Annual Compliance Calendar for Private Limited Companies

INC-20A — Commencement of Business Declaration

Due: Within 180 days of the date of incorporation Who it applies to: Every Private Limited Company incorporated after November 2, 2019 What it is: A declaration by the directors that every subscriber to the Memorandum has paid the value of shares agreed to be taken by them. In plain terms, it confirms that the subscribed share capital has been deposited in the company’s bank account. Why it matters: This is one of the most commonly missed compliance items for newly incorporated companies. A company that has not filed INC-20A technically cannot commence business — and cannot borrow money, invest, or deploy capital. Penalty for non-filing: ₹50,000 on the company and ₹1,000 per day on every officer in default for the period during which the default continues.

Practical note for Pune founders: INC-20A requires the company’s bank account to already be active and the share capital to have been deposited. This is why opening the current account immediately after incorporation — not weeks later — is important. The 180-day window sounds generous until you factor in bank account opening delays.

ADT-1 — Appointment of First Auditor

Due: Within 30 days of incorporation (Board appointment) — ADT-1 filing within 15 days of AGM thereafter What it is: Every Private Limited Company must appoint a statutory auditor — a practicing Chartered Accountant — within 30 days of incorporation. This appointment is made by the Board of Directors and notified to the ROC through Form ADT-1. The first auditor: Appointed by the Board within 30 days of incorporation to hold office until the conclusion of the first Annual General Meeting. Subsequent auditors are appointed at the AGM for a term of five years. Penalty for non-filing: ₹25,000 minimum, extendable up to ₹5,00,000.

Practical note: This is the most commonly missed 30-day deadline for new companies. Founders who incorporate and then take a few weeks to focus on the business often miss this window without realising. It should be part of your Day 1 post-incorporation checklist.

DIR-3 KYC — Director KYC

Due: September 30 every year Who it applies to: Every individual who has been allotted a Director Identification Number (DIN), regardless of whether they are currently an active director. What it is: An annual KYC declaration by directors, confirming their personal details including PAN, Aadhaar, mobile number, and email address. Directors file DIR-3 KYC through the MCA portal using their own credentials. Penalty: If DIR-3 KYC is not filed by September 30, the DIN is deactivated. A deactivated DIN means the director cannot sign any board resolution, file any ROC form, or perform any director-related action until the KYC is completed with a ₹5,000 late fee.

Why this matters practically: If a director’s DIN is deactivated and they need to sign off on a bank transaction, a property agreement, or a government tender — the company is stuck until the KYC is completed and the DIN reactivated. This is a situation that is entirely preventable with a calendar reminder.

Pune-specific note: We send all our clients a DIR-3 KYC reminder in August — well before the September 30 deadline — to ensure no director’s DIN is accidentally deactivated. If you are not receiving compliance reminders from your CA, this is a gap worth addressing.

AOC-4 — Filing of Financial Statements

Due: Within 30 days of the Annual General Meeting (AGM). For most companies with a March 31 financial year end, this falls around October 29 to November 29. What it is: The annual filing of your company’s financial statements with the Registrar of Companies — balance sheet, profit and loss account, director’s report, auditor’s report, and related schedules. These documents are prepared by your statutory auditor after the audit is complete. Late fee: ₹100 per day of delay. For a filing that is 30 days late, this is ₹3,000. For 90 days late, ₹9,000. For a company that misses an entire year and files two years later — the numbers compound quickly.

Practical note on timing: AOC-4 cannot be filed until the statutory audit is complete and the financial statements are signed by the auditor and the board. This means the audit must be completed before the AGM, which must be held before October 29 (for March 31 year-end companies). Founders who delay getting their accounts in order until October frequently end up with rushed audits, which increases the risk of errors and missed deductions.

MGT-7 / MGT-7A — Annual Return

Due: Within 60 days of the AGM. For March 31 year-end companies, this typically falls around November 28 to November 29. What it is: The company’s annual return to the ROC containing details of the company’s share capital, directors, shareholders, registered office address, and changes during the year. MGT-7 is for companies with turnover above ₹2 crore or paid-up capital above ₹10 lakh. MGT-7A (a simplified form) applies to smaller companies. Late fee: ₹100 per day of delay, same as AOC-4.

Important note: MGT-7 must be certified by a practicing Company Secretary for companies that are not small companies. This is a detail that catches some founders off guard when they are filing for the first time and discover they need a CS sign-off in addition to their CA.

MBP-1 — Disclosure of Interest by Directors

Due: At the first Board Meeting of every financial year (typically April) What it is: Every director must disclose their interest in other companies, firms, bodies corporate, or individuals at the first board meeting of each financial year. This disclosure is recorded in the minutes and maintained in the company’s statutory registers. Why it matters: While MBP-1 is not filed with the ROC, it is a mandatory board compliance item. Missing it is a technical default under the Companies Act that can become relevant during due diligence or disputes.

Form 8 MSME — Payment to MSME Vendors

Due: October 31 and April 30 (half-yearly) Who it applies to: Companies with turnover above ₹250 crore OR companies that have received advances from MSMEs exceeding 45 days. What it is: A half-yearly return declaring payments due to MSME vendors that are outstanding beyond 45 days. Note: Many companies that interact with MSME vendors and do not track the 45-day payment window are technically in default on this filing. It is worth auditing your vendor payment cycles.

The Annual General Meeting — What It Actually Requires

The AGM is not just a calendar event. Under the Companies Act, it is a mandatory annual gathering of the shareholders of the company with specific procedural requirements.

When it must be held: Within 6 months from the end of the financial year — i.e., by September 30 for companies with a March 31 year-end. The first AGM must be held within 9 months of the end of the first financial year.

What must happen at the AGM:

  • 1. Financial statements for the year must be presented and adopted
  • 2. Dividend, if any, must be declared
  • 3. Directors retiring by rotation must be re-appointed (or replaced)
  • 4. Auditor must be appointed or re-appointed
  • 5. Director’s report and auditor’s report must be read

What must be documented: Every AGM requires a notice to shareholders (minimum 21 days before the meeting), a quorum (minimum 2 members personally present for a Private Limited Company), and minutes of the meeting prepared and signed within 30 days.

For many small Private Limited Companies in Pune with the same individuals as directors and shareholders, the AGM is treated as a formality. It still needs to be properly documented. Undocumented AGMs are a technical default that shows up in due diligence and investor audits.

Annual Compliance Summary — Dates at a Glance

FilingDue DatePenalty for Delay
INC-20AWithin 180 days of incorporation₹50,000 + ₹1,000/day
ADT-1 (First Auditor)Within 30 days of incorporation₹25,000 minimum
DIR-3 KYCSeptember 30 every year₹5,000 + DIN deactivation
AGMSeptember 30 (March year-end)₹1,00,000 minimum
AOC-430 days after AGM₹100/day
MGT-7 / MGT-7A60 days after AGM₹100/day
MBP-1First Board Meeting of FYNo ROC filing but board default
Form 8 MSMEOctober 31 and April 30₹100/day

Beyond ROC — Other Annual Compliance for Private Limited Companies in Pune

ROC filings are the most widely discussed compliance, but a fully compliant Private Limited Company in Pune also has obligations under the Income Tax Act, GST law, and Maharashtra state law that run in parallel.

Income Tax:

  • 1. Advance Tax payments: June 15, September 15, December 15, March 15
  • 2. Tax Audit under Section 44AB (if turnover exceeds ₹1 crore): Report due by September 30
  • 3. Income Tax Return (ITR-6 for companies): Due October 31 (or November 30 if transfer pricing applies)

TDS Compliance:

  • 1. Monthly TDS deduction and payment by the 7th of the following month
  • 2. Quarterly TDS returns: Form 24Q (salary), Form 26Q (non-salary)
  • 3. Quarterly TDS certificates to vendors and employees

GST Compliance:

  • 1. Monthly or quarterly GSTR-1 and GSTR-3B depending on turnover
  • 2. Annual GST return (GSTR-9) by December 31
  • 3. GST Audit (GSTR-9C) for turnover above ₹5 crore

Profession Tax (Maharashtra):

  • 1. PTRC: Monthly or annual payment depending on liability
  • 2. PTEC: Annual payment of ₹2,500

Running all of these in parallel — ROC, income tax, TDS, GST, and profession tax — is what full compliance management for a Private Limited Company actually looks like.

How We Manage Compliance for 250+ Companies in Pune

At Akhil Amit And Associates, we act as the compliance backbone for over 250 Private Limited Companies and LLPs across Pune and Pimpri Chinchwad.

Every client receives a compliance calendar at the time of incorporation or engagement. We track deadlines internally and send reminders well in advance — not the day before a due date. Our clients do not discover missed filings from MCA notices. They hear from us first.

We handle statutory audit, AOC-4, MGT-7, DIR-3 KYC, INC-20A, ADT-1, TDS returns, GST filings, income tax, and profession tax — under one roof, for one fee. No hunting for different consultants for different filings. No gaps in coordination between your CA and your tax consultant.

If your company is currently managing these filings reactively — or if you are unsure whether your compliance is fully up to date — we are happy to conduct a compliance review and tell you exactly where you stand.

Frequently Asked Questions

What is the most commonly missed compliance for Private Limited Companies in Pune?

INC-20A for new companies and DIR-3 KYC for established ones. Both carry significant penalties and are entirely preventable with proper calendar management.

Can a Private Limited Company with zero transactions skip annual filings?

No. Zero-transaction companies still have mandatory ROC filings — AOC-4 and MGT-7 — every year. The financial statements will show nil activity, but they must still be prepared, audited, and filed.

What happens if my company has accumulated compliance defaults from previous years?

The MCA provides a condonation of delay scheme periodically (CFSS — Companies Fresh Start Scheme) that allows companies to file overdue forms with reduced penalties. Outside of these schemes, late fees must be paid along with the filing. A compliance audit to identify all defaults is the first step before beginning remediation.

How much does annual ROC compliance cost for a Private Limited Company in Pune?

The cost depends on the company’s turnover, number of transactions, paid-up capital, and specific compliance requirements. We provide transparent, all-inclusive annual compliance packages covering audit, AOC-4, MGT-7, DIR-3 KYC, income tax return, and board meeting documentation. Contact us for a quote specific to your company.

Do I need a Company Secretary for MGT-7 filing?

Companies that are not classified as small companies (turnover above ₹2 crore or paid-up capital above ₹10 lakh) require MGT-7 to be certified by a practicing Company Secretary. For small companies, MGT-7A can be self-certified by a director.

Is statutory audit mandatory even if my company has no revenue?

Yes. Every Private Limited Company must appoint a statutory auditor (ADT-1) within 30 days of incorporation. The audit is mandatory every financial year regardless of revenue, and audited financial statements must be filed with the ROC through AOC-4.

Akhil Amit And Associates is a Chartered Accountant firm in Pune and Pimpri Chinchwad providing company registration, ROC compliance, statutory audit, GST, income tax, and FEMA advisory services to startups, MSMEs, and growing businesses.

Related articles on this website:

Tag: , , ,

Private Limited Company Registration in Pune — The Complete Guide Including GST, Shop Act, Udyam, and Profession Tax

Private Limited Company Registration

Most guides about Private Limited Company registration in Pune stop at the same place.

They walk you through the incorporation process — DSC, name approval, SPICe+ filing, Certificate of Incorporation — and then end with something like “your company is now registered.”

What they do not tell you is that the Certificate of Incorporation is not the finish line. It is the starting point for a series of registrations that your company will need before it can operate, raise invoices, open a bank account, onboard corporate clients, and stay legally compliant under Maharashtra law.

At Akhil Amit And Associates, we handle Private Limited Company registration in Pune as a complete process — from incorporation through every post-incorporation registration your business actually needs. In this guide, we explain what those registrations are, why each one matters, and what the realistic timeline looks like when you put the whole picture together.

What Happens the Day You Get Your Certificate of Incorporation

Your Certificate of Incorporation arrives by email from the MCA. It contains your Company Identification Number, your company PAN, and your TAN. At this point, your company legally exists.

But it cannot yet:

  • Raise a GST-compliant invoice
  • Be registered as a vendor with any corporate client that requires a GSTIN
  • Operate as a business in Maharashtra without Shop Act registration
  • Access MSME benefits, government tenders, or priority sector bank lending without Udyam registration
  • Employ staff in Maharashtra without PTRC registration or meet your own profession tax liability without PTEC

Each of these requires a separate registration. Each has its own timeline, documents, and compliance obligations. And the sequence in which you complete them matters — because some registrations require others to be in place first.

This is what a complete Private Limited Company registration in Pune actually looks like.

The Foundation: Incorporation Under the Companies Act, 2013

Before the post-incorporation registrations make sense, it helps to understand what the incorporation process delivers — because many founders are unclear about what is and is not included in a standard incorporation package.

When a Private Limited Company is incorporated through the SPICe+ form on the MCA portal, the following are generated automatically alongside the Certificate of Incorporation:

Company PAN and TAN — allotted by the Income Tax department as part of the SPICe+ process. These are included in the incorporation itself and do not require separate applications.

EPFO and ESIC registration — for companies incorporated after February 2020, provisional EPFO and ESIC registration numbers are generated automatically through the AGILE-PRO-S component of SPICe+. These become active registrations once you hire employees.

Professional Tax registration (PTEC) — for the company itself as an entity, this is also issued through AGILE-PRO-S in Maharashtra. This is your company’s own profession tax liability, separate from the PTRC you will need once you start employing people.

What is not automatically generated — and what requires separate applications after incorporation — is everything else: GST, Shop Act, Udyam, and PTRC (employer profession tax).

Understanding this distinction matters because founders who assume “everything is handled” during incorporation often discover compliance gaps weeks or months later, sometimes when a client has already flagged the missing GSTIN or when a bank query has stalled their account opening.

GST Registration — Your First Priority After Incorporation

For most Private Limited Companies in Pune, GST registration is the most urgent post-incorporation step.

Here is why it cannot wait.

The moment your company begins generating revenue from services or goods, every B2B client will ask for your GSTIN to process vendor onboarding and record the transaction correctly in their GST returns. Raising an invoice without a GSTIN — when your business is legally required to be registered — is not just a compliance problem. It puts your client’s input tax credit at risk and can delay payments while their accounts team flags the missing information.

When is GST registration mandatory?

For a Private Limited Company in Pune, GST registration becomes compulsory when:

Annual turnover from services crosses ₹20 lakh, or annual turnover from goods crosses ₹40 lakh. But these thresholds are misleading in practice, because several situations make registration compulsory regardless of turnover — the most common being interstate supply. If your Pune-based company provides services or sells goods to clients in any other state, you are making an interstate supply and GST registration is mandatory from day one, with no turnover threshold.

Similarly, if you sell through any e-commerce platform — Amazon, Flipkart, Meesho, or any other aggregator — GST registration is compulsory regardless of your turnover or product category.

Our recommendation for Pune-based companies: Apply for GST registration within the first two weeks of incorporation, in parallel with opening your current account. Both processes require similar documents and can run simultaneously. Waiting until your first invoice is a risk that regularly causes unnecessary delays and client friction.

Timeline: GST registration typically takes 7 to 10 working days with clean documentation. If the GST officer raises a clarification query, add another 7 days. Physical verification is rarely required for Private Limited Companies with a proper registered office address.

Documents required for GST registration of a Private Limited Company:

Certificate of Incorporation, company PAN, MOA and AOA, PAN and Aadhaar of all directors, photograph of the authorised signatory, proof of registered office address (electricity bill, rent agreement, and NOC from owner if rented), cancelled cheque of the company’s current account, and the digital signature certificate of the authorised director.

Note that the current account is ideally opened before the GST application — because the bank account details are required in the GST REG-01 form. The sequence is: Incorporation → Current Account → GST Registration.

Shop Act (Gumasta) Registration — Mandatory for Every Business Operating in Maharashtra

The Maharashtra Shops and Establishments Act, 1948 requires every business operating in Maharashtra — including Private Limited Companies — to register under the Shop Act, commonly called Gumasta Licence.

This is a registration that many founders outside Maharashtra are unfamiliar with, and which is frequently missed by online incorporation portals that do not specialise in Maharashtra-specific compliance.

Who needs it?

Every establishment that employs workers in Maharashtra, including offices, IT companies, consultancies, retail businesses, and service providers — regardless of the number of employees. Even a two-director Private Limited Company operating from a rented office in Hinjewadi, Baner, or Wakad is required to obtain Shop Act registration.

Why it matters practically:

Shop Act registration is required for:

Opening a current account with several banks — HDFC, ICICI, and Axis in particular often ask for Gumasta Licence as part of their current account opening documentation for new companies.

Onboarding with corporate clients in Maharashtra, particularly IT and manufacturing companies that conduct formal vendor due diligence.

Obtaining other licences and registrations including FSSAI (for food businesses) and certain municipal permissions.

Timeline: Typically 7 to 15 working days through the Maharashtra Aaple Sarkar portal. The registration is state-governed and issued by the local municipal authority — PCMC for Pimpri Chinchwad, and PMC for Pune city.

Udyam Registration — Unlocking MSME Benefits for Your Company

Udyam registration is India’s official MSME classification system, replacing the older Udyog Aadhaar process. It is issued by the Ministry of MSME and classifies your business as a Micro, Medium, or Small Enterprise based on annual turnover and investment in plant and machinery or equipment.

For Private Limited Companies in Pune — particularly startups and growing businesses — Udyam registration is not just a formality. It unlocks a range of tangible benefits that can meaningfully affect your business from year one.

What Udyam registration gives you:

Priority sector lending from banks — Udyam-registered MSMEs are eligible for loans under government MSME schemes including the Emergency Credit Line Guarantee Scheme (ECLGS) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides collateral-free loan guarantees up to ₹2 crore.

Protection under the MSME Act for delayed payments — if a corporate buyer delays payment beyond 45 days, the MSME Act allows you to claim compound interest at three times the bank rate on the outstanding amount. This is only available to Udyam-registered businesses.

Eligibility for government tenders with MSME quotas, which in many sectors are reserved partially or fully for registered MSMEs.

Lower registration fees and concessions on certain state government licences in Maharashtra.

Who qualifies?

A Private Limited Company qualifies as an MSME if its annual turnover is below ₹250 crore and investment in equipment or plant is below ₹50 crore (Medium Enterprise threshold). Most startups and growing businesses in Pune comfortably qualify as Micro or Small Enterprises for the first several years.

Timeline: Udyam registration is a simple online process through the udyamregistration.gov.in portal and is typically completed within 1 to 3 working days with the company’s PAN and the authorised director’s Aadhaar.

Profession Tax — PTRC for Employers, PTEC for the Company

Maharashtra levies a Profession Tax on individuals earning a salary or income from profession or trade. For a Private Limited Company, this creates two distinct registration obligations that are often confused with each other.

PTEC — Professional Tax Enrolment Certificate

This is the company’s own profession tax liability as a legal entity. As mentioned earlier, for companies incorporated through AGILE-PRO-S, a provisional PTEC is issued automatically. However, this provisional registration needs to be activated and the annual profession tax of ₹2,500 needs to be paid to the Maharashtra state government.

PTRC — Professional Tax Registration Certificate

This is the employer’s registration and is required the moment your company hires even a single employee — full-time, part-time, or on contract. As an employer, your company is responsible for deducting profession tax from employee salaries based on the Maharashtra slab rates and depositing it with the government monthly.

Failing to obtain PTRC before hiring is a compliance gap that regularly comes up in corporate vendor audits and HR due diligence. The process is handled through the Maharashtra government’s Mahavikas portal and typically takes 5 to 7 working days.

What the Complete Timeline Looks Like

When founders ask us how long it takes to “fully set up” a Private Limited Company in Pune — meaning the company is incorporated, has a GST number, is compliant under Maharashtra law, and is ready to invoice, hire, and onboard clients — the honest answer is:

With complete, clean documentation and professional management: 3 to 5 weeks from the date we begin.

The typical sequence looks like this:

Week 1 to 2 — Incorporation: DSC procurement, name search and application, MOA and AOA drafting, SPICe+ filing. Certificate of Incorporation, PAN, and TAN issued by MCA.

Week 2 — Current Account Opening: Initiated immediately after COI using incorporation documents. Most banks process new company current accounts within 3 to 7 working days.

Week 2 to 3 — GST Registration: Applied once current account details are available. GSTIN typically issued within 7 to 10 working days.

Week 2 to 3 — Shop Act Registration: Applied in parallel with GST through the Aaple Sarkar portal.

Week 2 — Udyam Registration: Completed within 1 to 3 days of incorporation.

Week 3 — PTRC: Applied once GST is in process and the company is ready to hire.

Within 30 days of incorporation — Auditor Appointment (ADT-1): Statutory requirement under the Companies Act.

Within 180 days — INC-20A: Commencement of business declaration, requiring proof that subscribed capital has been deposited in the company’s bank account.

When these are coordinated properly as a single project rather than handled as separate applications in isolation — which is how many founders end up managing them — the total setup is complete, the company is fully operational, and there are no pending compliance gaps waiting to become problems six months later.

Why Founders in Pune Choose Akhil Amit And Associates

We handle Private Limited Company registration in Pune as a complete end-to-end process — not as a single incorporation service with everything else treated as an afterthought.

This means when you come to us, one team manages your incorporation, your GST registration, Shop Act, Udyam, and Profession Tax — along with your first-year compliance calendar so there are no surprises on INC-20A, auditor appointment, or ROC annual filing deadlines.

We currently manage incorporation and ongoing compliance for over 150 Private Limited Companies and LLPs across Pune and Pimpri Chinchwad, including startups, growing MSMEs, and foreign-owned subsidiaries operating in India.

Our offices serve businesses across Pune, Pimpri Chinchwad, Hinjewadi, Wakad, Baner, Kharadi, Bhosari, and Chakan.

If you are planning to register a Private Limited Company in Pune and want a clear, honest conversation about the complete process, the realistic timeline, and what it will cost — we are happy to help.

Frequently Asked Questions

Is GST registration mandatory for all Private Limited Companies in Pune?

Not immediately for all companies — but practically yes for most. Any company providing services or goods to clients in other states must register from day one regardless of turnover. Companies selling through e-commerce platforms must also register immediately. For businesses operating only within Maharashtra, registration becomes mandatory once turnover crosses ₹20 lakh (services) or ₹40 lakh (goods). Voluntary registration before crossing the threshold is advisable for any company seeking corporate clients.

What is the total cost of Private Limited Company registration in Pune with all post-incorporation registrations?

The total cost depends on your authorised capital, state stamp duty, number of directors, and the specific registrations required for your business type. We provide transparent, all-inclusive quotes covering incorporation and all applicable post-incorporation registrations — contact us for a specific estimate based on your requirements.

How long does the complete setup take — from incorporation to fully operational?

With complete documentation and professional management: 3 to 5 weeks. The bottleneck is rarely the MCA. It is usually the current account opening timeline and the sequence coordination across multiple registrations.

Can a company start billing clients before GST registration?

If GST registration is mandatory for your business (interstate supply, e-commerce, or turnover above threshold), billing without a GSTIN is non-compliant and puts your client’s ITC at risk. If your turnover is below the threshold and all business is within Maharashtra, you can technically invoice without GST — but most corporate clients will still ask for a GSTIN as part of vendor onboarding.

Do I need a Shop Act licence if I am working from home?

If your registered office address is a residential property and you are not employing staff from that location, Shop Act registration may not be immediately required. However, as soon as you have an office space or employees, it becomes mandatory. We recommend taking professional advice for your specific situation.

Akhil Amit And Associates is a Chartered Accountant firm in Pune and Pimpri Chinchwad providing complete Private Limited Company registration, Startup India Registration, GST, Shop Act, Udyam, Profession Tax, ROC compliance, Income tax, and FEMA advisory services to startups, MSMEs, and growing businesses.

Tag: , ,

Private Limited Company Registration in Pune — What Every Founder Should Know Before They Start

Private Limited Company Registration in Pune

Starting a business is an act of courage. You have an idea, a plan, and the energy to make it real. The last thing you want is to spend weeks untangling a legal process that could have been straightforward from day one.

Yet that is exactly what happens to many founders in Pune — not because they made a bad decision, but because no one sat them down and explained what registering a Private Limited Company actually involves, and more importantly, what comes after it.

This guide is our attempt to do that honestly.

Why So Many Pune Businesses Choose the Private Limited Structure

Walk into any co-working space in Hinjewadi, Baner, or Kharadi and ask founders what structure they chose. Nine out of ten will say Private Limited Company. There are good reasons for that.

The most important one is this: a Private Limited Company exists as a legal entity completely separate from you as an individual. That is not just paperwork — it changes how your business is perceived by banks, vendors, clients, and investors in a fundamental way.

When you send a quotation on company letterhead with a CIN number on it, it carries a different weight than a sole proprietorship. When you approach a bank for a working capital loan, having a registered company with audited financials and ROC compliance in order makes a material difference to your eligibility. When a corporate client in Magarpatta or Chakan wants to onboard you as a vendor, they almost always ask for your incorporation documents, GST registration, and a company PAN — not a personal one.

Beyond perception, there is genuine legal protection. A Private Limited Company limits your personal liability. If the business runs into financial difficulty, your personal assets — your savings, your home — are generally shielded from business creditors. That protection is worth a great deal when you are taking real commercial risk.

If you ever plan to raise funding from angel investors or VCs, the Private Limited structure is effectively non-negotiable. Equity can be issued cleanly, ESOPs can be structured for your team, and valuations work in a way that other structures simply do not support.

What the Registration Process Actually Looks Like

Most online resources make company registration sound like a three-step weekend project. It rarely is — not because the process is inherently complicated, but because the details matter and the MCA portal is less forgiving than people expect.

The process begins with Digital Signature Certificates for every proposed director. These are physical tokens and take a few days to arrive, so this is often where timelines start slipping for founders who try to do it themselves on short notice.

Name selection is trickier than most people anticipate. The MCA checks your proposed name against existing company names, trademarks, and a list of prohibited or sensitive words. We regularly see names get rejected for reasons founders did not see coming — an unintentional resemblance to a registered trademark, use of a word that triggers the trademark office’s scrutiny, or a name that is too generic. Getting this right upfront saves 7 to 10 days easily.

The MOA and AOA — your company’s Memorandum and Articles of Association — are where the object clause matters. The object clause defines what your company is legally authorised to do. A poorly drafted object clause can cause complications years later when you try to expand into a new business line or apply for a specific licence. This is not a document to copy-paste from a template.

Once documents are filed through the SPICe+ form, MCA typically processes the application and issues your Certificate of Incorporation along with your CIN, company PAN, and TAN. In our experience, with clean documentation, this takes around 7 to 15 working days. Delays almost always trace back to either the name approval stage or incomplete address proof documentation.

The Part Most Guides Leave Out: Compliance Begins at Incorporation

Here is where we have seen founders get into trouble — and it is something we feel strongly about being upfront about.

The registration is not the finish line. In many ways, it is the starting pistol.

Within 30 days of incorporation, your company must appoint a statutory auditor by filing Form ADT-1. Miss this and you are already in default. Within 180 days, you must file INC-20A, the commencement of business declaration — this form requires proof that the subscribed capital has actually been deposited in the company’s bank account. Failing to file INC-20A is one of the more serious defaults a new company can be in, and it carries significant penalties.

Then there are the ongoing obligations: TDS deductions and quarterly returns, GST registration (if applicable) and monthly or quarterly filings, DIR-3 KYC for directors every year before 30 September, annual accounts and board report filing through AOC-4, and the annual return through MGT-7. Penalties for late filing have increased substantially in recent years — the late fee compounds daily, and the amounts add up faster than most founders expect.

We are not saying this to alarm you. We are saying it because we have seen well-meaning founders — smart people who ran their businesses well — discover a ₹40,000 to ₹80,000 penalty bill two years after incorporation simply because no one told them what was due and when. Getting a proper compliance calendar from your CA at the time of incorporation is as important as the incorporation itself.

A Note on Choosing Who Registers Your Company

There are dozens of online portals and aggregator platforms that offer company registration at very competitive prices. Some of them are legitimate and efficient. Some of them hand you the Certificate of Incorporation and disappear.

The challenge with using a portal rather than a CA firm is not the incorporation itself — it is everything that follows. When you have a question about your company’s object clause, when you need to add a director, when you receive an MCA notice, when you are trying to understand which annual filings are actually due — you need someone who knows your company’s specific structure, not a helpdesk ticket system.

We have helped a number of clients who came to us after using portals — sometimes to correct errors in their MOA, sometimes to help them deal with penalties that had accumulated because they did not know their compliance obligations. The cost of fixing these issues is almost always significantly higher than the cost of getting it right the first time.

What We Do at Akhil Amit And Associates

We are a Pune-based CA firm with offices serving businesses across Pune, Pimpri Chinchwad, Wakad, Baner, Hinjewadi, Bhosari, and Chakan.

Our focus is on being a long-term compliance partner — not a one-time registration service. We currently manage incorporation and ongoing annual compliance for over 250 Private Limited Companies and LLPs, including several foreign-owned subsidiaries operating in Pune with FEMA and RBI compliance requirements.

When a client comes to us for company registration, we handle the entire process end-to-end — DSC procurement, name search and application, MOA and AOA drafting, SPICe+ filing, and post-incorporation registrations like GST, Shop Act, Udyam, or PTRC/PTEC as needed. More importantly, we hand them a compliance calendar and stay with them through the first year of filings, where the risk of default is highest.

If you are planning to register a Private Limited Company in Pune and want a straightforward conversation about your specific situation — structure, timeline, costs, and compliance obligations — we are happy to help.

Akhil Amit And Associates is a Chartered Accountant firm based in Pune and Pimpri Chinchwad, providing company registration, GST, income tax, audit, ROC compliance, and FEMA advisory services to startups, MSMEs, and foreign-owned businesses.

Tag: , ,

Strike Off Company in India – Complete Guide to Closing a Private Limited Company (STK-2 Process)

Strike Off Company in India

A Practical, Professional Guide for Promoters and Directors

Closing a company is often seen as a complicated and time-consuming process involving legal proceedings, high costs, and regulatory hurdles.

In reality, for many companies, there is a simpler, faster, and more cost-effective route available — known as Strike Off.

Yet, most promoters either are not aware of this option or misunderstand its applicability.

What is Strike Off of a Company?

Strike Off refers to the removal of a company’s name from the Register of Companies, effectively bringing its legal existence to an end.

It can happen in two ways:

  1. 1. Voluntary Strike Off – initiated by the company under Section 248(2)
  2. 2. Compulsory Strike Off – initiated by ROC under Section 248(1)

👉 In this guide, we focus on Voluntary Strike Off, which is the preferred and controlled exit route.

When Should You Choose Strike Off?

Strike Off is ideal when:

  1. 1. The company has stopped business or never commenced
  2. 2. There are no assets and no liabilities
  3. 3. All bank accounts are closed
  4. 4. There are no pending legal matters
  5. 5. All statutory dues are cleared

👉 Key Principle:

  1. 1. NIL Assets + NIL Liabilities = Strike Off
  2. 2. Assets exist = Consider Voluntary Liquidation

Choosing the wrong route can expose directors to serious legal consequences.

ParticularsStrike OffVoluntary Liquidation
Applicable WhenNo assets, no liabilitiesAssets exist
Process TypeAdministrative (ROC)Legal (NCLT)
CostLowHigh
TimeFastLonger
ComplexitySimpleStructured

Step-by-Step Process for Strike Off (STK-2)

Step 1: Board Resolution

Approve decision to close company and authorize filing

Step 2: Shareholder Approval

Special Resolution or 75% consent required

Step 3: File MGT-14

Mandatory filing within 30 days (often missed)

Step 4: Close Bank Accounts

All accounts must be closed with certificate

Step 5: Settle All Liabilities

No dues to creditors, employees, or government

Step 6: File STK-2

Submit application with attachments

Step 7: ROC Public Notice

30-day objection window

Step 8: Final Strike Off

Company name removed from register

Documents Required for Strike Off

  1. 1. Board Resolution
  2. 2. Special Resolution / Consent
  3. 3. Indemnity Bond (STK-3)
  4. 4. Affidavit (STK-4)
  5. 5. Statement of Accounts (STK-8 – CA certified with UDIN)
  6. 6. Bank Closure Certificate
  7. 7. Latest Income Tax Return
  8. 8. NOCs (if applicable)

Critical Compliance Checklist (Before Filing STK-2)

This is where most applications fail.

Before applying, ensure:

✔ All Income Tax Returns are filed
✔ No pending GST registration (cancel first)
✔ All TDS returns are filed
✔ Director KYC completed
✔ No active bank account
✔ No pending ROC filings (unless eligible under exception)

Most Common Mistakes (That Lead to Rejection)

  • 1. Bank account not properly closed
  • 2. GST registration still active
  • 3. Pending ITR or TDS filings
  • 4. MGT-14 not filed
  • 5. Statement of accounts older than 30 days
  • 6. Incorrect or inconsistent shareholder details

👉 Reality:
Most rejections are not due to ineligibility — they are due to poor preparation.

Important Legal Consequences

Before opting for Strike Off, understand:

⚠️ Directors remain liable even after closure
⚠️ Company can be restored within 20 years
⚠️ Any leftover assets vest with Government

Why Professional Guidance Matters

Strike Off may look simple — but in practice, it is highly sensitive to:

  • 1. documentation accuracy
  • 2. compliance status
  • 3. sequencing of filings

A small mistake can lead to:

  • 1. rejection
  • 2. delay
  • 3. legal exposure

Final Thought

Closing a company is not just about ending operations — it is about exiting cleanly and safely.

When done correctly, Strike Off is one of the most efficient exit routes available under company law.

But when done without proper structuring, it can create liabilities that outlast the company itself.

📞 Need Assistance with Strike Off?

If you are planning to close your Private Limited Company or LLP and want to ensure a smooth, compliant, and risk-free process, professional guidance can make all the difference.

Tag: , ,

Compliances for Private Limited Company in India


“If you’re operating a business registered in India, staying informed about mandatory compliance requirements is crucial, as outlined by corporate laws such as the Companies Act, 2013, Income Tax Act 1961, GST Act, and other applicable acts.

Ensuring compliance with these regulations is paramount for private limited companies. Given that many startups opt for this structure, understanding the annual compliance obligations for a Private Limited Company becomes a key concern for most growing enterprises.

A Private Limited Company offers a unique form of limited liability ownership. Its distinct features, including limited liability for shareholders, separate legal identity, ability to raise equity funds, and perpetual succession, contribute to its popularity. This structure is highly recommended for small and medium-sized businesses, whether family-owned or professionally managed.”

What are the Compliances for Private Limited Company?

“The landscape of compliance for private limited companies has evolved significantly over time.

Navigating the statutory requirements for a private company under the Companies Act of 2013 involves:

  • 1. Commencement of business – Filing of INC-20A

  • “For companies incorporated in India after November 2019 with a share capital, securing the Commencement of Business Certificate within 180 days of incorporation is compulsory.

Failure to do so attracts penalties: a fine of Rs. 50,000 for the company itself, along with Rs. 1,000 per day for directors, for each day of default.”

  • 2. Auditor Appointment – Filing of Form ADT-1

“ADT-1: Within 30 days of incorporation, every Indian registered company must appoint a statutory auditor.”

  • 3. Filing of GST Returns – GSTR 1 & GSTR 3B – Monthly/Quarterly

In India, businesses registered under the Goods and Services Tax (GST) system are required to file various returns to comply with tax regulations. Two key returns are the GSTR-1 and GSTR-3B, which serve different purposes and have different filing frequencies.

  1. 1. GSTR-1:
    • ⦁ Frequency: Monthly
    • ⦁ Purpose: GSTR-1 is a monthly return that contains details of outward supplies or sales made by the taxpayer. It includes information such as invoices issued, credit or debit notes issued, and details of exports and supplies to SEZs (Special Economic Zones).
    • ⦁ Due Date: Typically, the due date for filing GSTR-1 is the 11th of the following month. However, the government may announce extensions or changes to the due dates from time to time.
  2. 2. GSTR-3B:
    • ⦁ Frequency: Monthly
    • ⦁ Purpose: GSTR-3B is a summary return that taxpayers use to report their summarized sales and input tax credit (ITC) claims for the month. It is a self-declaration form, meaning taxpayers enter the summary figures directly without invoice-level details.
    • ⦁ Due Date: The due date for filing GSTR-3B is usually the 20th of the following month.

For certain eligible taxpayers, quarterly filing options are available for both GSTR-1 and GSTR-3B. However, it’s essential to note that while the filing frequency may differ, the information reported in these returns should reconcile.

Businesses must ensure timely and accurate filing of these returns to avoid penalties and maintain compliance with GST regulations. It’s also advisable to stay updated with any changes or notifications issued by the GST authorities regarding filing requirements or due dates.

  • 4. Accounting and Book Keeping Services

  • ⦁ Accounting and bookkeeping services for private limited companies are essential for maintaining financial records accurately and ensuring compliance with regulatory requirements. Here’s some key information about these services:
  1. 1. Scope of Services: Accounting and bookkeeping services encompass various financial tasks, including:
    • ⦁ Recording financial transactions: This involves accurately documenting all financial transactions, such as sales, purchases, expenses, and payments, in the company’s books of accounts.
    • ⦁ Preparation of financial statements: Service providers compile financial statements like the balance sheet, profit and loss statement, and cash flow statement based on the recorded transactions.
    • ⦁ Reconciliation: Reconciling bank statements, accounts receivable, and accounts payable to ensure accuracy and identify discrepancies.
    • ⦁ Payroll processing: Calculating employee salaries, deductions, and taxes, as well as generating pay stubs and filing payroll taxes.
    • ⦁ Inventory management: Tracking inventory levels, valuation, and cost of goods sold (COGS) calculations.
    • ⦁ Compliance: Ensuring adherence to applicable accounting standards, tax regulations, and statutory requirements.
  2. 2. Benefits of Outsourcing: Many private limited companies opt to outsource accounting and bookkeeping services due to various benefits, including:
    • ⦁ Cost-effectiveness: Outsourcing can be more affordable than hiring in-house staff, as it eliminates the need for salaries, benefits, and training costs.
    • ⦁ Expertise: Outsourcing firms often have experienced professionals with expertise in accounting and finance, providing high-quality services.
    • ⦁ Focus on core activities: By delegating accounting tasks to experts, company management can focus on core business activities and strategic decision-making.
    • ⦁ Compliance assurance: Outsourcing firms stay updated with changing regulations, ensuring that the company remains compliant with tax and accounting standards.
  3. 3. Choosing a Service Provider: When selecting an accounting and bookkeeping service provider for a private limited company, consider factors such as:
    • ⦁ Experience and reputation in the industry.
    • ⦁ Range of services offered and customization options.
    • ⦁ Technology and software used for accounting processes.
    • ⦁ Data security measures and compliance with data protection regulations.
    • ⦁ Service level agreements (SLAs) and responsiveness to queries and concerns.

Outsourcing accounting and bookkeeping services can streamline financial management processes, enhance accuracy, and ensure compliance, thereby contributing to the overall efficiency and success of a private limited company.

  • 5. Filing of TDS Returns on Quarterly Basis

Filing Tax Deducted at Source (TDS) returns on a quarterly basis is a critical compliance requirement for entities in India that deduct TDS from certain payments. Here’s some key information about filing TDS returns quarterly:

  1. 1. Frequency: TDS returns are filed quarterly, meaning they are submitted every three months.
  2. 2. Types of TDS Returns: There are different types of TDS returns based on the nature of payments and deductees. The most common ones include:
    • ⦁ Form 24Q: For TDS deducted on salaries.
    • ⦁ Form 26Q: For TDS deducted on payments other than salaries.
    • ⦁ Form 27Q: For TDS deducted on payments made to non-residents.
    • ⦁ Form 27EQ: For TDS deducted on payments made under the provisions of the Income Tax Act other than salaries.
  3. 3. Due Dates: The due dates for filing quarterly TDS returns are as follows:
    • ⦁ For the quarter ending June 30th: July 31st
    • ⦁ For the quarter ending September 30th: October 31st
    • ⦁ For the quarter ending December 31st: January 31st
    • ⦁ For the quarter ending March 31st: May 31st
  4. 4. Information Required: To file TDS returns, entities need to provide details such as:
    • ⦁ TAN (Tax Deduction and Collection Account Number)
    • ⦁ PAN (Permanent Account Number) of deductors and deductees
    • ⦁ Amount of TDS deducted
    • ⦁ Details of payments and deductions made
    • ⦁ Challan details for TDS deposited
  5. 5. Mode of Filing: TDS returns can be filed online through the Income Tax Department’s website using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). Alternatively, authorized intermediaries or professionals can assist with filing returns on behalf of entities.
  6. 6. Penalties for Non-Compliance: Failure to file TDS returns within the prescribed due dates can result in penalties. The penalty amount varies based on the delay in filing and the nature of the default.
  7. 7. Reconciliation: It’s essential to reconcile TDS returns with TDS certificates (Form 16 and Form 16A) issued to deductees to ensure accuracy and consistency in tax reporting.

Compliance with TDS provisions and timely filing of TDS returns is crucial to avoid penalties and maintain good standing with the tax authorities in India. Businesses should stay updated with any changes in TDS regulations and ensure accurate filing of returns to fulfill their tax obligations effectively.

  • 6. Filing of Income Tax Return of the Private Limited Company

Filing income tax returns for a private limited company in India is a crucial annual compliance requirement. Here’s some key information about the process:

  1. 1. Filing Deadline: The deadline for filing income tax returns for private limited companies in India is typically October 31st of the assessment year following the financial year for which the return is being filed. However, due dates may vary depending on any extensions granted by the tax authorities.
  2. 2. Preparation of Financial Statements: Before filing the income tax return, the company must prepare its financial statements, including the balance sheet, profit and loss account, and other relevant documents in compliance with the Companies Act, 2013.
  3. 3. Tax Computation: The company must compute its taxable income for the financial year based on the provisions of the Income Tax Act, 1961. This involves adjusting the financial results as per the tax laws, including deductions, exemptions, and allowances available to the company.
  4. 4. Filing Forms: The income tax return for a private limited company is typically filed using Form ITR-6, which is specifically designed for companies other than those claiming exemption under section 11 (Income from property held for charitable or religious purposes) of the Income Tax Act.
  5. 5. Tax Payment: Before filing the income tax return, the company must ensure that any tax liability for the financial year has been paid in full. This includes advance tax payments made during the year and any self-assessment tax paid before filing the return.
  6. 6. Filing Procedure: The income tax return can be filed electronically on the Income Tax Department’s e-filing portal. The company must register on the portal and then upload the necessary documents and information as required by Form ITR-6.
  7. 7. Auditor’s Report: In certain cases, the company may be required to obtain an auditor’s report certifying various details included in the income tax return. This report is annexed to the return while filing.
  8. 8. Penalties for Non-Compliance: Failure to file the income tax return within the specified deadline may attract penalties, including interest on tax due and late filing fees. It’s essential for companies to adhere to the filing deadlines to avoid such penalties.
  9. 9. Annual Compliance: Filing the income tax return is part of the annual compliance requirements for private limited companies in India. Companies must also comply with other regulatory requirements, including annual general meetings, maintenance of statutory registers, and filing of annual financial statements with the Registrar of Companies.

Ensuring timely and accurate filing of income tax returns is essential for private limited companies to meet their tax obligations and maintain compliance with Indian tax laws. Companies may seek the assistance of tax professionals or chartered accountants to ensure proper tax planning and compliance.

  • 7. Statutory Audit under Companies Act, 2013
  1. 1. Mandatory Requirement: Every company registered under the Companies Act, 2013, is required to conduct a statutory audit of its financial statements annually. This includes all types of companies, such as private limited companies, public limited companies, and one-person companies (OPCs).
  2. 2. Appointment of Auditor: The auditor conducting the statutory audit must be a practicing Chartered Accountant (CA) or a firm of Chartered Accountants appointed by the company’s shareholders at the Annual General Meeting (AGM). The appointment is typically made for a term of one year and must be ratified at each subsequent AGM.
  3. 3. Scope of Audit: The statutory audit encompasses a comprehensive examination of the company’s financial records, including the balance sheet, profit and loss account, cash flow statement, and notes to accounts. The auditor verifies the accuracy of financial transactions, ensures compliance with accounting standards and legal requirements, and assesses the company’s internal controls and financial reporting practices.
  4. 4. Audit Report: Upon completion of the audit, the auditor issues an audit report expressing their opinion on the fairness and accuracy of the company’s financial statements. The audit report includes various disclosures, such as the auditor’s opinion, observations, qualifications (if any), and compliance with auditing standards.
  5. 5. Filing of Audit Report: The audited financial statements and the audit report must be filed with the Registrar of Companies (RoC) within 30 days from the date of the AGM. The filing is done electronically on the Ministry of Corporate Affairs (MCA) portal using Form AOC-4.
  6. 6. Penalties for Non-Compliance: Failure to conduct a statutory audit or file the audit report within the specified timeline may result in penalties imposed by the RoC. Additionally, non-compliance with auditing standards or misrepresentation of financial statements can lead to legal consequences for the company and its directors.
  7. 7. Role of the Auditor: The statutory auditor plays a crucial role in providing assurance on the company’s financial statements, enhancing transparency and investor confidence, and facilitating informed decision-making by stakeholders.
  • 8. Filing of Applicable ROC Returns
  • a) Form AOC-4

Form AOC-4 is a document required for the filing of financial statements by companies registered in India, as mandated by the Ministry of Corporate Affairs (MCA). Here’s some key information about Form AOC-4:

  1. 1. Purpose: Form AOC-4 is used for filing financial statements with the Registrar of Companies (RoC) in India. These financial statements typically include the balance sheet, profit and loss account, cash flow statement, and notes to accounts.
  2. 2. Applicability: Form AOC-4 is applicable to all types of companies registered under the Companies Act, 2013, including private limited companies, public limited companies, and one-person companies (OPCs).
  3. 3. Filing Timeline: Companies are required to file Form AOC-4 within 30 days from the date of the annual general meeting (AGM) at which the financial statements are adopted. In case the AGM is not held, the financial statements must be filed within 30 days from the date on which the AGM should have been held.
  4. 4. Contents of Form AOC-4: The form includes various details about the company’s financial performance and position, including:
    • Balance Sheet: Details of assets, liabilities, and equity as of the reporting date.
    • Profit and Loss Account: Summary of the company’s revenues, expenses, and net profit or loss for the financial year.
    • Cash Flow Statement: Information about the company’s cash inflows and outflows during the financial year.
    • Notes to Accounts: Additional explanations and disclosures related to items in the financial statements.
  5. 5. Auditor’s Report: Form AOC-4 may also include the auditor’s report, which provides an independent opinion on the fairness and accuracy of the financial statements.
  6. 6. Mode of Filing: Form AOC-4 is filed electronically on the MCA’s portal. Companies are required to register on the portal and upload the necessary documents and information in the prescribed format.
  7. 7. Penalties for Non-Compliance: Failure to file Form AOC-4 within the specified timeline may result in penalties imposed by the RoC. Additionally, non-compliance with filing requirements can lead to legal consequences for the company and its directors.
  • b) MGT-7A (small companies and OPC), MGT-7 (others)
  1. 1. MGT-7A (For Small Companies and One Person Companies – OPC):Purpose: MGT-7A is specifically designed for small companies and One Person Companies (OPCs) to file their annual returns with the Registrar of Companies (RoC).Applicability: Small companies and OPCs, as defined under the Companies Act, 2013, are required to file MGT-7A.
  2. 2. Filing Timeline: Companies must file MGT-7A within 60 days from the conclusion of the annual general meeting (AGM) of the company.
  3. 3. MGT-7 (For Other Companies): Purpose: MGT-7 is used by companies other than small companies and OPCs to file their annual returns with the RoC.
  4. 4. Applicability: All types of companies registered under the Companies Act, 2013, except small companies and OPCs, are required to file MGT-7.
  5. 5. Filing Timeline: Companies must file MGT-7 within 60 days from the conclusion of the AGM of the company.
  • 8. Filing of Other Forms like ADT-1, DIR-3 KYC, DPT-3, MBP-1, MSME-1 and other applicable forms.
  1. 1. ADT-1 (Appointment of Auditor):
    • Purpose: ADT-1 is filed for the appointment of auditors by companies.
    • Filing Timeline: Within 15 days from the date of appointment of the auditor at the company’s general meeting.
  2. 2. DIR-3 KYC (Director’s KYC):
    • Purpose: DIR-3 KYC is filed to update and verify the KYC details of directors of companies.
    • Filing Timeline: Annually, by April 30th of the financial year for which the KYC is to be updated.
  3. 3. DPT-3 (Return of Deposits):
    • Purpose: DPT-3 is filed to furnish details of deposits accepted by the company.
    • Filing Timeline: Annually, by June 30th of the financial year for which the return is being filed.
  4. 4. MBP-1 (Disclosure of Interest by Directors):
    • Purpose: MBP-1 is filed by directors to disclose their interest in any contract or arrangement entered into by the company.
    • Filing Timeline: Whenever there is any change in the director’s interest or at the first board meeting of the financial year.
  5. 5. MSME-1 (Initial Return for Outstanding Dues to MSMEs):
    • Purpose: MSME-1 is filed to report outstanding dues to Micro, Small, and Medium Enterprises (MSMEs).
    • Filing Timeline: Within 30 days from the end of each half-year (April to September and October to March).

Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Instances of such events are:

  • ⦁ Change in Authorised or Paid up Capital of the Company.
  • ⦁ Allotment of new shares or transfer of shares
  • ⦁ Giving Loans to other Companies.
  • ⦁ Giving Loans to Directors
  • ⦁ Appointment of Managing or whole time Director and payment of remuneration.
  • ⦁ Loans to Directors
  • ⦁ Opening or closing of bank accounts or change in signatories of Bank account.
  • ⦁ Appointment or change of the Statutory Auditors of the Company.

Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.

In summary, keeping up with all the rules and regulations for private limited companies is super important. It’s like following a roadmap to make sure everything runs smoothly and stays legal. From paying taxes to doing audits and filing paperwork, it’s all about staying on top of things.

With laws changing now and then, it’s crucial for these companies to keep an eye out for any updates. This isn’t just about following the rules – it’s also about being honest and responsible with the company’s actions.

By making sure everything is done right, these companies not only avoid trouble but also gain trust from customers, investors, and others. So, while it might seem like a lot of work, staying compliant is key to running a successful and trustworthy business in today’s world.

Section 194-IA: TDS On Purchase of Immovable Property – Simplified

TDS On Purchase of Immovable Property – Section 194-IA

The buyer of immovable property is under a statutory obligation to deduct the TDS and pay it to the government within the due date. TDS has to be deducted under section 194-IA of the Income Tax Act, 1961. We have tried to explain the provisions in simplified language.

Who is liable to deduct TDS u/s 194-IA?

A Buyer of the property who is responsible for paying (other than the person referred to in section 194LA) to a resident seller any sum by way of consideration for transfer of any immovable property other than agricultural land.

Criteria to be met, so that TDS has to be paid under section 194-IA –

  1. ✓ The buyer of immovable property other than agricultural land is required to deduct tax at source u/s 194-IA. It means if you buy an agricultural land, there is no liability for the payment of the TDS.
  2. ✓ The seller should be a resident person. Thus, this section is not applicable where the seller is a non-resident. In case the seller is a non-resident section, 195 is applicable and TDS has to be paid according to that section.
  3. ✓ Even if the buyer has no income, still TDS has to be deducted and paid.
  4. ✓ The purpose of purchase is not relevant, i.e. it is immaterial whether the property is acquired as stock-in-trade or as a capital asset.

Important definitions for section 194-IA

Q. What is Immovable property?

Ans: Any land or any building or part of a building. But Immovable property shall not include agricultural land, which is not a capital asset.

Q. What is Agricultural Land?

Ans: Agricultural Land means agricultural land in India, not being a land situated in any area referred to in items (a) & (b) of section 2(14)(iii).

Q. What is “Consideration for the purposes of section 194-IA?

Ans: “Consideration for transfer of any immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee, or any other charges of similar nature, which are incidental to the transfer of the immovable property.

Meaning of “Agricultural Land” simplified –

Items (a) & (b) of section 2(14)(iii) are as under agricultural land situated –

(a) In any area comprised within jurisdiction of a municipality or a cantonment board having a population not less than 10,000;

or

(b) In any area within the distance, measured aerially,

  • (i) Not being more than 2 km. From local limits of any municipality or cantonment board, which has a population of more than 10,000, but not more than 1,00,000
  • (ii) Not being more than 6 km. From local limits of any municipality or cantonment board, which has a population of more than 1,00,000 but not more than 10,00,000
  • (iii) Not being more than 8 km. From the local limits of any municipality or cantonment board, which has a population of over 10 Lakhs.

When to deduct TDS u/s 194-1A –

• At the time of credit or at the time of payment, whichever is earlier.

TDS rate /s 194-IA –

  1. • TDS Rate: 1%.
  2. • If Pan Not Available: 20%.

Threshold Limit u/s 194-IA –

• No TDS where consideration is less than Rs. 50 Lakhs.

More than 1 buyer or seller –

More than 1 Buyer

• More than one buyer: In the case of more than one buyer and the purchase price of each buyer is less than Rs. 50 lakhs but the aggregate sales consideration of the property is more than Rs. 50 Lakhs, section 194-IA will be applicable and all the buyers will be required to deduct TDS on their respective share of the purchase price.

Note – For contradictory views, refer: Vinod Soni vs. ITO (2019)

• More than one seller: If there is more than one seller in a single sale deed in respect of the property and the aggregate consideration for the property exceeds Rs. 50 Lakhs however the share of each co-owner is less than Rs. 50 Lakhs, section 194-IA will be applicable. Therefore, the buyer would be required to deduct TDS u/s 194-IA.

Important Points on TDS On Purchase of Immovable Property – Section 194-IA –

  • • If the immovable property is purchased from a non-resident person for any value, no TDS is required to be deducted u/s 194-IA as section 195 shall apply in such a case.
  • • It is not necessary that the land or building should be situated in India. Thus, if any person purchases property outside India from a person resident in India, he is liable to deduct tax at source @ 1%.
  • • This is a unique section as TAN is not required in this section for making deduction of tax at source.
  • • Section 194-1A shall not be applicable where the immovable property has been transferred by way of gift, will or inheritance as there is no consideration in this case.
  • • In the case where the property value is Rs. 50 Lakhs or more and payment is made in installments, TDS shall be required to be deducted on every part of payment (installment) of the consideration.

Amendment on Section 194-IA by Finance Bill, 2022:

The cases where the actual consideration is different from stamp duty value Amendment by Finance Bill, 2022:

  • • The Income Tax Act, 1961 provides for deduction of tax at source @ 1% where the sales consideration
    Of the property is not less than Rs. 50 Lakhs. However, section 194-IA was not consistent with the
    provisions of section 43CA and section 50C of the Act.
  • • In order to bring consistency, the Finance Bill, 2022, has proposed amendment in section 194-1A, and
    now TDS @ 1% shall be deductible on the sales consideration or the stamp duty value of the
    immovable property, whichever is higher.
  • • But where both the sales consideration as well as the stamp duty value are less than Rs. 50 Lakhs,
    no deduction of tax will be required u/s 194-IA.
  • • This amendment is effective from 01st April 2022

How and When TDS has to be paid under section 194-IA –

  • • TDS deducted u/s 194-IA is to be deposited within a period of 30 days from the end of the month in which tax is so deducted.
  • • TDS is to be deposited electronically through a challan-cum-statement in Form No. 26QB. This
    challan can be accessed at the NSDL portal.
  • • PAN of both buyer and the seller are sufficient for the purposes of Form 26QB. Other details needed
    are the details of property sold, address details of buyer and seller along with their email id and mobile numbers.
  • • The person (buyer) who has deducted & deposited tax u/s 194-1A shall issue TDS certificate in Form No. 16B to the seller within 15 days from the due date of furnishing the challan-cum-statement in Form No. 26QB.

Important Note – No TAN is required for deduction of tax at source u/s 194-1A and no filing of TDS return is required.

Penalties Applicable on non-filing of Form 26QB.

Interest on:Calculation
Non-deduction of TDS 1% per month for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted. 
Non-remittance of TDS1.5% per month for the period from the date on which TDS is deducted to the actual date of payment.
Late filing fee:Calculation
Late filing fee under section 234E @ Rs 200
per day 		In case of default of non-filing or late filing of Form 26QB, a penal fee is applicable under section 234E of the income tax act. Rs. 200 has to be paid for every day during which such failure continues. The buyer would also be liable for defaults of late deduction, late payment, and interest thereon. 
PenaltyCalculation
Penalty under section 271H Assessing Officer may levy penalty under section 271H at his discretion. This section is applicable when a statement as required by the tax laws is not submitted timely.
The penalty under this section must be more than Rs 10,000 and can extend to Rs 1 lakh. However, if TDS is deposited with a fee & interest and the statement is submitted within 1 year of the time prescribed, no penalty shall be levied. 

Union Budget-2023-24 – Amendments in GST

Here is a summary of amendments proposed by the Union Budget in GST :

1. ITC Denied on goods or services procured for Corporate Social Responsibility (CSR)

  • ⦁ Union budget, 2023-24 has proposed to restrict the ITC on goods and services procured for Corporate Social Responsibility.
  • ⦁ However, so far, companies are entitled to take such ITC unless the same is restricted under any other clause.

2. Amendments on offenses and Compounding provisions

  • ⦁ Following offenses has been decriminalized under section 132 of CGST Act:
    • ⦁ obstructs or prevents any officer in the discharge of his duties under this Act;
    • ⦁ tampers with or destroys any material evidence or documents;
    • ⦁ fails to supply any information which he is required to supply under this Act
  • ⦁ The minimum and maximum amounts for compounding of offences reduced to 25 per cent and 100 per cent of tax involved, respectively.

3. Penalties on e-commerce operators (Section 122 of CGST Act)

  • ⦁ Specific penalty provisions has been incorporated for e-commerce operator if it:
    • ⦁ Allows supply of goods or services by unregistered person through it, other than persons who are specially exempted, or
    • ⦁ Allows inter-State supply of goods or services or both by a person who is not eligible to make such supply; or
    • ⦁ Fails to furnish correct information in TCS return
  • Defaulting e-commerce operator shall be liable to pay penalty of higher of following amounts:
    • ⦁ INR 10,000; or
    • ⦁ Amount of tax involved

4. Maximum time limit specified to file GST Returns

  • ⦁ Till date, a registered person is allowed to file pending GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C or any other GST returns) with applicable interest and penalties without any limit of period.
  • ⦁ Union budget has proposed to impose time limit of 3 years from due date for filing of following returns:
    • ⦁ GSTR-1: Return of outward supplies
    • ⦁ GSTR-3B: Return of summary of outward and inward supplies and corresponding tax payable
    • ⦁ GSTR-9: Annual return
    • ⦁ GSTR-9C: ITC Reconciliation
    • ⦁ GSTR-8: TCS Return
  • ⦁ Such a period of 3 years can be further extended by the government.

5. Extension of Composition Scheme to taxpayer selling through e-commerce operator

  • ⦁ As per Section 10(2) and (2A) of CGST Act, a registered person engaged in making supply of goods through e-commerce operators is not entitled to opt for composition scheme.
  • ⦁ Union budget has proposed to extend the facility of composition scheme to such dealers as well.

6. Other Amendments:

  1. 1. It has been clarified that Entry No. 7, High seas sales, and Entry No. 8, supply of goods from bonded warehouses before clearance for home consumption, are effective from 01.07. 2017 itself. Further, no refund shall be granted of tax collected in pursuance of such entries so far.
  2. 2. In definition of “online information and database access or retrieval services’ (‘OIDAR’), condition of “essentially automated and involving minimal human intervention” has been removed.
  3. 3. Where both supplier and recipients are located in India, place of supply In case of transportation of goods to outside India was “designation of goods”. Such provision has been omitted and now in such case, place of supply will be:
    1. a. B2B Supplies: Location of Recipient of service
    2. b. B2C Supplies: Place where goods are handed over for transportation
  1. 4. Power granted to prescribe the manner and conditions for computation of interest in case of delayed refunds.
  2. 5. Power is granted to the GST portal to share information provided by taxpayers with other systems notified by the Government. Such details to be shared post obtaining consent of supplier/recipient as applicable. 

The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

Overview of GST Returns in India

Goods and Services Tax (GST) is a tax reform that has transformed the Indian taxation system. It was introduced in India on July 1, 2017, with the aim of bringing a uniform tax structure across the country. GST replaced multiple indirect taxes levied by the state and central government, such as value-added tax (VAT), service tax, excise duty, and others.

Under the GST regime, taxpayers are required to file periodic returns with the GST authorities. GST returns are documents that contain details of all transactions made by a taxpayer during a specific period, including sales, purchases, and taxes paid and collected.

In this blog, we will discuss the different types of GST returns, their due dates, and the process of filing GST returns in India.

Types of GST Returns There are different types of GST returns that taxpayers are required to file, depending on their category and turnover. The following are the main types of GST returns:

  1. 1. GSTR-1: GSTR-1 is a monthly or quarterly return filed by registered taxpayers that contain details of all outward supplies or sales made during the period. The due date for filing GSTR-1 is the 11th day of the following month, for monthly filers, and the 13th day of the month following the end of the quarter, for quarterly filers.
  3. 2. GSTR-2A: GSTR-2A is an auto-generated return that contains details of all purchases made by a taxpayer from a registered supplier, as uploaded by the supplier in their GSTR-1. It is a read-only return, which means that taxpayers cannot make any changes to it.
  5. 3. GSTR-3B: GSTR-3B is a monthly return filed by registered taxpayers that contains details of all outward supplies, inward supplies, and input tax credit claimed during the period. The due date for filing GSTR-3B is the 20th day of the following month.
  7. 4. GSTR-4: GSTR-4 is a quarterly return filed by taxpayers who have opted for the Composition Scheme. It contains details of all outward supplies made during the period, including tax collected. The due date for filing GSTR-4 is the 18th day of the month following the end of the quarter.
  9. 5. GSTR-5: GSTR-5 is a monthly return filed by non-resident taxpayers who are registered under GST. It contains details of all outward supplies made during the period, including tax collected. The due date for filing GSTR-5 is the 20th day of the following month.
  11. 6. GSTR-6: GSTR-6 is a monthly return filed by Input Service Distributors (ISDs) that contains details of all input tax credit received and distributed during the period. The due date for filing GSTR-6 is the 13th day of the following month.
  13. 7. GSTR-7: GSTR-7 is a monthly return filed by taxpayers who are required to deduct tax at source (TDS) under GST. It contains details of all TDS deducted during the period, as well as the details of the deductee. The due date for filing GSTR-7 is the 10th day of the following month.
  15. 8. GSTR-8: GSTR-8 is a monthly return filed by e-commerce operators who are required to collect tax at source (TCS) under GST. It contains details of all supplies made through the e-commerce platform, including tax collected. The due date for filing GSTR-8 is the 10th day of the following month.

Due Dates of Filing GST Return

The due dates for filing GST (Goods and Services Tax) returns depend on the type of return and the turnover of the taxpayer. Here are the due dates for filing GST returns in India for regular taxpayers:

  1. 1. GSTR-1: This return contains details of outward supplies and is filed monthly. The due date for GSTR-1 is the 11th of the following month.
  3. 2. GSTR-3B: This return contains details of both inward and outward supplies and is filed monthly. The due date for GSTR-3B is the 20th of the following month.
  5. 3. GSTR-4: This return is filed by composition scheme taxpayers and contains details of quarterly returns. The due date for GSTR-4 is the 18th of the month following the quarter.
  7. 4. GSTR-5: This return is filed by non-resident taxpayers and contains details of inward supplies. The due date for GSTR-5 is the 20th of the following month.
  9. 5. GSTR-6: This return is filed by Input Service Distributors (ISDs) and contains details of input tax credit received and distributed. The due date for GSTR-6 is the 13th of the following month.
  11. 6. GSTR-7: This return is filed by taxpayers who are required to deduct tax at source (TDS) and contains details of TDS deducted. The due date for GSTR-7 is the 10th of the following month.
  13. 7. GSTR-8: This return is filed by e-commerce operators who are required to collect tax at source (TCS) and contains details of TCS collected. The due date for GSTR-8 is the 10th of the following month.

It is important to note that the due dates may change from time to time, and taxpayers are advised to check the official GST portal for the latest updates. Additionally, late filing of GST returns may attract penalties and interest, and taxpayers should ensure timely compliance.

Late Fees Under GST

Under GST (Goods and Services Tax), late fees are charged for delay in filing of returns. The late fees for GST return filing depend on the type of return and the duration of the delay.

  1. 1. For GSTR-3B, the late fee is Rs. 50 per day for each day of delay (Rs. 20 per day for taxpayers having nil tax liability). The maximum late fee is capped at Rs. 5,000.
  3. 2. For GSTR-1, GSTR-5, and GSTR-5A, the late fee is Rs. 100 per day for each day of delay (Rs. 25 per day for taxpayers having nil tax liability). The maximum late fee is also capped at Rs. 5,000.
  5. 3. For GSTR-6, the late fee is Rs. 50 per day for each day of delay (Rs. 20 per day for taxpayers having nil tax liability). The maximum late fee is capped at Rs. 5,000.

It is important to note that the late fees for GST return filing are subject to change by the GST council. It is also important to file GST returns on time to avoid late fees and penalties.

Interest Under GST

In the context of the Goods and Services Tax (GST) system in India, interest is charged under certain circumstances. Here are some of the key points related to interest under GST:

  1. 1. Interest on late payment of tax: If a registered taxpayer fails to pay the GST liability within the due date, interest will be charged at a prescribed rate. The interest is calculated from the day after the due date till the date of actual payment.
  3. 2. Interest on claim of excess input tax credit: If a registered taxpayer claims excess input tax credit (ITC) in their GST returns, interest will be charged on the amount of excess credit claimed. The interest is calculated from the date of claiming excess ITC till the date of its reversal.
  5. 3. Interest on refund of excess tax paid: If a registered taxpayer has paid excess tax and claims a refund of the same, interest will be paid by the government on the amount of excess tax paid. The interest is calculated from the date of payment of excess tax till the date of its refund.
  7. 4. Interest on delayed refunds: If the government delays the refund of excess tax paid to a registered taxpayer beyond a prescribed time limit, interest will be paid by the government on the amount of delayed refund. The interest is calculated from the date after the expiry of the prescribed time limit till the date of refund.

The rate of interest for each of these scenarios is prescribed by the government and is subject to change from time to time. It is important for taxpayers to comply with the GST regulations and pay their taxes on time to avoid interest charges.

Note – This is an educational content and should not be treated as legal advice, kindly contact our team so that they can help you with exact solution.

Union Budget – FY 2023-24 – Income Tax Amendments

Union budget 2023-24 has proposed various amendments in the Income tax act such as Change in slab rates, extended benefits to MSME Enterprises, relaxation in tax audits threshold limits, Relaxations for cooperative societies etc.

During the budget, every person, from a big corporation to a small businessman, looks after amendments in Income tax because it does not only impact pockets of taxpayers but also decides on compliances a business needs to carry out. Every extra compliance leads to an increase in cost and have other impacts as well.

In this article a detailed discussion is made of amendments proposed in Income Tax Act, 1961 by Union Budget FY 2023-2024.

1. Amendments in Personal Income Tax

  • ⦁ Union Budget, 2023-24 has proposed amendment in slab rates under section 115BAC (i.e., New Tax Regime) within an objective to reduce income tax liabilities.
  • ⦁ Following are the new slab rates:
Income RangeIncome Tax Rate
Upto INR 3,00,000NIL
INR 3,00,000 to INR 6,00,0005% on income above INR 3,00,000
INR 6,00,000 to INR 9,00,00015000+ 10% on Income above INR 6,00,000
INR 9,00,000 to INR 12,00,00045,000 + 15% on income more than INR 9,00,000
INR 12,00,000 to INR 1500,00090,000 + 20% on income more than Rs 12,00,000
Above INR 15,00,000150,000 + 30% on income more than Rs 15,00,000
  • ⦁ Further, tax rebate under section 87A has been increased from INR 12,500 to INR 25,000 under the new regime. Therefore, the threshold limit of exempted income has been increased from INR 5,00,000 to INR 7,00,000.
  • ⦁ Highest slab of surcharge has been reduced from 37% to 25%. Therefore, the highest rate of income tax has been reduced from 42.744% to 39%.
  • ⦁ New tax regime shall be the default scheme and if the taxpayer wants to opt for the old regime then he has to specifically opt the same.

2. Enhancement in Threshold limit of Presumptive Taxation

  • ⦁ Presumptive income allows ad hoc deduction of expenses for small business and professionals.
  • ⦁ Threshold limit to avail benefit of presumptive taxes has been enhanced:
Nature of BusinessExisting Threshold limit to avail presumptive taxationProposed Threshold limit to avail presumptive taxation
Eligible BusinessINR 2 CroresINR 3 Crores
Eligible ProfessionalINR 50 LacsINR 70 Lacs
  • ⦁ However, the benefit of enhanced threshold limit shall be provided where atleast 95% of receipts and payments are made through non-cash methods.

3. Amendment in TDS & TCS Provisions

  • ⦁ As per Section 194N, cash withdrawal from a bank exceeding INR 1 Crores is subject to TDS @ 2%. The Union Budget has proposed to enhance the threshold limit of INR 1 Crore to INR 3 Crores where the recipient is a Co-operative society.
  • ⦁ TDS on winning from online games shall be deducted at rates in force without any threshold limit. TDS shall be deducted at the time of withdrawal of funds or at the end of the Financial year.
  • ⦁ Interest to listed debentures has been brought under TDS ambit. TDS shall be deducted @ 10%.
  • ⦁ TDS on withdrawal of funds from employees provident funds (EPF) shall be deducted @ 20% in case of non-furnishing of PAN. Earlier TDS was required to be deducted at maximum marginal rate.
  • ⦁ Refund of TDS Deducted across Financial years
    • ⦁ Taxpayers generally face addition with respect to income disclosed in ITR of a year and TDS on such income is deducted by the counterparty in subsequent financial year.
    • ⦁ Union budget has provided that in such cases, assessee can make an application in prescribed form to the Assessing officer to claim benefit of such TDS.
    • ⦁ Such an application can be filed within 2 years from the end of the financial year in which TDS has been deducted.
    • ⦁ Further, the provisions of rectification shall also apply and the assessee also can make an application for rectification. For the purpose of rectification, a period of 4 years shall be reckoned from the end of the financial year in which such tax has been deducted. 
  • ⦁ As per Section 206AB, TDS shall be deducted at higher rate from specified persons, i.e., persons who have failed to file income tax returns. Union budget has excluded following persons from specified persons list:
    • ⦁ a non-resident who does not have a permanent establishment in India;
    • ⦁ a person who is not required to furnish the return of income for the assessment year relevant to the said previous year and is notified by the Central Government in the Official Gazette in this behalf.

4. Deductions to be allowed on payment basis

  • ⦁ In order to provide more security to MSME, the union budget has amended Section 43B to provide that deduction of sum payable to Micro, Small and Medium Enterprises (MSME) shall be allowed only on payment basis.
  • ⦁ So far, deduction for deposit taken from NBFC is permitted during the Financial year in which payment is made. Now, Government shall prescribe the list of NBFCs for Section 43B.

5. Lower rate of Income Tax for manufacturing cooperative societies

  • ⦁ A new section 115BAE is proposed to be inserted, which provides that following reduced rates of income tax shall apply:
    • ⦁ Manufacturing co-operative societies (established on or after April 1st, 2023, and commencing production on or before March 31st, 2024): Income tax shall be charged at 15% (plus surcharge of 10% & cess)  [provided that specified incentives or deductions are not availed]. 
    • ⦁ Income not derived or incidental to manufacturing or production: Income shall be charged at 22%.

6. Income tax on maturity proceeds of Life Insurance Policy

  • ⦁ Section 10(10D) provides that the amount received on maturity of life insurance policies is exempted from income tax subject to given conditions.
  • ⦁ Union budget has proposed to withdraw such exemption on insurance policies, other than unit linked insurance policies, issued on or after 01.04.2023 if the amount of premium payable exceeds INR 5 lacs for any of the previous year during the term of policy.
  • ⦁ In case of more than one life insurance policies, other than ULIP, threshold hold of INR 5 Lacs shall be checked for all premiums paid during the year.
  • ⦁ However, such exemption is not withdrawn on the sum received on death of a person.
  • ⦁ Amount received on maturity, net of non-tax deducted premium, shall be taxed under head “Other Incomes” in the year of receipt.

7. Exemptions to Newly established Units in Special Economic Zones (Section 10AA)

  • ⦁ Section 10AA provides for 100% and 50% deduction of profit derived from the export by newly set-up units in SEZ.
  • ⦁ As per amendments, deduction under section 10AA shall be provided only if return is filed within the due date specified u/s 139(1).
  • ⦁ Further, Deduction shall only be allowed if the proceeds from the sale of goods or provision of services are received within 6 months from the end of the previous year or within such further period as the competent authority may allow in this behalf.

8.  Amendments in Capital Gain

  • ⦁ Similar to goodwill, cost of acquisition and cost of improvement of self-generated intangible assets and rights shall be considered as “NIL” while computing capital gains on sale of such asset.
  • ⦁ Capital gain arise on transfer or redemption or maturity of Market Linked Debenture shall be considered capital gains arising from the transfer of a short-term capital asset. Further, while computing such capital gain, no deduction shall be allowed in respect of securities transaction tax.
  • ⦁ Investment under Section 54 and Section 54F has been capped for INR 10 Crores. Therefore, if cost of new asset exceeds INR 10 Crores, the amount exceeding INR 10 Crores shall not be taken into account.
  • ⦁ The transformation of physical gold into Electronic Gold Receipts and vice versa by a Vault Manager registered with the Securities and Exchange Board of India (SEBI) shall not be considered as a transfer for purposes of capital gains taxation. 
  • ⦁ While computing cost of acquisition of the asset or the cost of improvement, no additional shall be made of interest expense for which deductions are already claimed u/s Section 24(b) or or Chapter VI-A of Income Tax Act.

9. Other Amendments

  • ⦁ Benefit of Section 115BAC (i.e., new tax regime) is proposed to be extended to Association of Persons (AOP) (other than co-operative societies), Body of Individuals (BOI) and Artificial Judicial Persons (AJP). This will help in reduction of Income tax liabilities. 
  • ⦁ For the purpose of claiming deductions under section 80-IAC, incorporation date of eligible start-ups is proposed to be extended from 1st April, 2023 to 1st April, 2024.
  • ⦁ The exemption can be claimed by trusts or institutions only if return of income is furnished within time limit prescribed under section 139(1) or 139(4).
  • ⦁ Government has provided for a new appellate authority, the Joint Commissioner (Appeal), for specific categories of taxpayers, such as individuals and HUFs, to speed up the resolution process in appeal proceedings.

The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.