Frequently Asked Questions

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General

What if I can't pay my tax bill?
You will typically need your W-2 form from your employer, any 1099 forms that report income or deductions, and any receipts or documentation to support any deductions you plan to claim. It’s also a good idea to have your previous year’s tax return on hand.
What documents do I need to file my taxes?
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What documents do I need to file my taxes?
Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of “de Finibus Bonorum et Malorum” (The Extremes of Good and Evil) by Cicero, written in 45 BC.
How long does it take to get my refund?
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Company Registration

What documentation is issued when the company obtains MCA approval?

The company obtains a certificate of incorporation, which includes its CIN number as well as the PAN and TAN assigned by the income tax department. We can use the NSDL portal to apply for digital or physical PAN and TAN.

What is meant by SPICe?
SPICe is an abbreviation for Simplified Proforma for Incorporating a Company Electronically and as the name suggests it is an application form for incorporating/registering a company with MCA
What are the common Spice + forms that should be submitted for private limited company incorporation?
SPICePartA (Name Reservation) SPICePartB SPICeMoA SPICeAoA AGILEPRO SPICeINC9
Is it mandatory for every company to follow the SPICe+ process for incorporation of a company?
Yes. Every company incorporated with effect from 23rd February 2020 is required to make an application for reservation of name and incorporation through the web service SPICe+.
What is MOA and AOA?
Memorandum of Association (MOA) is the charter document of a company. A company is created by registering a memorandum. MOA contains the name of a company, the state in which the registered office of the company is located, objectives, and its authorized capital. The MOA has to be executed by the initial promoters of the company. Articles of Association (AOA) are the bylaws of a company and can be filed along with the incorporation document. AOA contains rules and regulations for the management of a company’s internal affairs and conduct of its business. It defines the relationship of a company between its members and directors and the relationship between members and directors.
What is Corporate Identification Number (CIN)?
CIN is the number allotted to a company registered in India by the Ministry of Corporate Affairs, Government of India. CIN is a 21-digit number that contains the information such as Status (listed / unlisted), NIC code of business activity, State of registration, Year of registration, Private or Public and the Registration Number in the respective state.
What is Registered Office?
A company’s registered office is its official communication address or its principal location of business. All formal communications from the company will be sent to the Registered Office address. Your registered office does not have to be a commercial establishment; it can even be your residence.

GST Registration

What falls within the GST's definition of aggregate turnover?

According to the GST law, “aggregate turnover” refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both, and interstate supplies of persons having the same Permanent Account Number. This total value is calculated on an all-India basis but does not include Central tax, State tax, Union territory tax, Integrated tax, and cess.

What is the time limit for taking a Registration under GST? After become liable for registration
A person must register within 30 days after the day on which he becomes liable to registration, in the manner and with the restrictions outlined in the Registration Rules.
What is the time limit for taking a Registration under GST for casual taxable persons and non-resident taxable persons?
Casual taxpayer and a non-resident taxpayer should apply for registration at least five days before they start doing business.
Who is a Casual Taxable Person?
According to Section 2 (20) of the CGST/SGST Act, a casual taxable person is someone who occasionally engages in business transactions involving the supply of goods and/or services, whether as principal, agent, or in any other capacity, in a State or a Union territory where he does not have a fixed place of business.
Who is a Non-resident Taxable Person?
A non-resident taxable person is any person who occasionally engages in transactions involving the provision of goods and/or services, whether as principal or agent or in any other capacity, but who does not have a fixed place of business or residence in India, according to Section 2(77) of the CGST/SGST Act.
What is the process for cancelling a GST Registration?
A GST Registered taxpayer can apply for cancellation of registration in FORM GST REG-16. A 30-day window following the “occurrence of the event warranting the cancellation” is allowed for the submission of an application in Form GST REG-16. After successful cancellation of registration a final return on form GSTR-10 must be submitted.

GST Filing

What is GSTR 1A?

It is an amendment form used to correct the GSTR-1 document including any mismatches between the GSTR-1 of a taxpayer and the GSTR-2 of their customers. Amendments to sales invoices are permitted until September month following the end of the original sales bill’s financial year.

What is the difference between GSTR 2A and GSTR 2B?
GSTR 2A is the statement which contains the details of Auto Drafted Inward Supplies for Normal Taxpayer, on the other hand GSTR 2B is the statement which contains details of Auto Drafted Input Tax Credit (ITC).
What is an E-way bill?
The e-way bill is a document that must be carried by a person in charge of a conveyance carrying any consignment of goods worth more than fifty thousand rupees, as mandated by the government under section 68 of the Goods and Services Tax Act and rule 138 of the rules issued thereunder.
What is a GSTIN? And its format breakdown?
GSTIN, or Goods and Services Tax Identification Number, is a unique 15-digit identification number provided to each registered taxpayer (mainly a dealer or supplier, but also any corporate organisation) under the GST regime. GSTIN Breakdown
  • The first two digits represent the state code as per Indian Census 2011. Every state has a unique code, for State Kerala its 32.
  • The next ten digits will be the PAN number of the taxpayer
  • Based on the number of registrations in a state, the thirteenth digit will be assigned
  • By default, the fourteenth digit will be “Z”
  • The cheque code will be the fifteenth digit. It could be a letter or a number
What is QRMP scheme?
The Quarterly Returns with Monthly Payment (QRMP) Scheme enables qualifying taxpayers to file Forms GSTR-1 and GSTR-3B on a quarterly basis while making monthly challan payments for their tax obligations. The QRMP scheme is open to all taxpayers who have previously submitted their last due Form GSTR-3B return and whose combined yearly turnover (PAN-based) for the current financial year and the previous one (if applicable) is up to 5 Crore.

Project Report

What is break-even point in project report
The break-even point is when the total costs equal the total revenue. After the break-even point, businesses will start making profits.
What are the aspects covered in project report?
The main aspects covered in the project report are the analysis of cost, payback period, cash flows, financial projections, income tax, etc.
Which is the main ratio used in project report?
Debts Service Coverage Ratio (D.S.C.R) is the important ration used in project report which shows the repayment capacity of the business project.
How long it will take to complete a project report?
Normally, we can deliver within 2-5 days with your assistance.

Digital Signature

Who issues DSC?
A licensed Certifying Authority (CA) issues the digital signature. Pantasign is our licensed CA that issues digital signature certificates under Section 24 of the Indian IT-Act 2000.
What is the purpose of DSC?
Electronic documents are signed digitally using a Digital Signature Certificate.
If one individual can have 2 digital signature certificates?
Yes, a person may have two or more DSC for business and personal usage.
What is the legal validity of DSC?
Digital signature certificates are valid in India as per the Information Technology Act 2000. DSCs are issued by licenced CAs.

Limited Liability Partnership Registration

Is it possible to convert an existing partnership firm to an LLP?

Yes, an existing partnership firm can be converted into an LLP by following the requirements of clause 58 and Schedule II of the LLP Act.

What is DPIN?
A Designated Partner Identification Number is a unique identifier assigned to all existing and proposed Designated Partners of an LLP. No individual can be appointed as a designated partner, unless the Ministry of Corporate Affairs has allotted DPIN to him/her.
What is the minimum capital requirement in an LLP?
There is no minimum capital requirement to start an LLP. In addition to that partner can contribute both tangible and intangible assets into the LLP.
What is an LLP agreement?
The mutual rights and duties of partners inter se and those of the LLP and its partners shall be governed by the agreement between partners or between the LLP and the partners. This Agreement would be known as “LLP Agreement”.
Can an existing company be converted to LLP?
Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act.

Udhyam Registration

Is Udhyam Registration mandatory for MSMEs?

Udhyam Registration is not mandatory for MSMEs, but it is highly recommended. Registration provides various benefits and incentives that can support the growth and development of MSMEs.

Who is able to enrol for Udhyam?
Udhyam registration is open to any micro, small, or medium enterprise (MSME) operating in India.
What is the government fee for Udhyam registration?
There are no such fees is collected by government for registration
How Udhyam registration can be cancelled?
Udhyam registration can be cancelled or deactivated by submitting a request in Udhyam portal

Income Tax e Filing

What is e-filing in income tax?

E-filing is the process of submitting an income tax return electronically.

What is Form 26AS?
Form 26AS is a summary of taxes deducted and paid on your behalf which can be extracted from your login. This contains information on tax deducted and amount transferred to an assesse on your behalf by deductors, tax deposited by taxpayers, and tax refunds received during the fiscal year.
What is the meaning of assessment year in income tax?
Assessment year means the period of 12 months commencing on the 1st day of April every year. It is the year (just after the previous year) in which income earned in the previous year is charged to tax.
Is agriculture income taxable?
As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. However net agricultural income is integrated with non-agricultural income and income tax is calculated on this integrated income at the rates prevailing each assessment year.
What is casual income?
Any receipt which is of a casual and non-recurring nature is called casual income. Casual income includes the following:
  • Winning from lotteries
  • Winning from card games and other games of any sort
  • Winning from gambling or betting of any form or nature.

Import Export Code (IEC) Registration

IEC can be cancelled or modified?

Yes, IEC can be cancelled or amended if there are valid reasons for doing so, such as a change in business, closure of business and so on.

Does IEC is required for personal use?
No, IEC is only required for business transactions
What is the validity of IEC?
IEC holders are required to update IEC annually, otherwise non-compliance will lead to deactivation of IEC
Do service exporters require IEC?
IEC is not required for service exporters unless they benefit from Foreign Trade Policy
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