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STOCK AUDIT

Stock Audit Stock audit, in general usage is considered as an important auditing term which refers to the physical verification of the inventory. However at times, it may also involve the valuation of the inventory but it would depend on the terms of reference or the engagement letter of the assignment. When heading forward, it is important to remember and keep in consideration the purpose for which the audit is being conducted because different audits may have different approach which would ultimately depend on the aim. In other words, stock audit is a statutory process which every business institution needs to perform at least once in a financial year. As far the stock audit process is concerned, the process mainly involves the counting of physical stock presenting the specified premises and verifying the same with computed stock maintained by the company. The reason and purpose behind executing this is to correct the discrepancies present in the book stock when compared to physical

MANDATORY COMPLIANCES FOR PRIVATE LIMITED COMPANIES (POST INCORPORATION COMPLIANCES)

MANDATORY COMPLIANCES FOR PRIVATE LIMITED COMPANIES A Private Limited company is the most common form of starting a business. It gives the benefit of higher goodwill, more recognition and is more preferred over other forms of business. Incorporation of Private Limited is done with the help of a professional. A professional helps you to complete all the compliances of the company. But as a Director/ Shareholder/ Member of the company you must be aware of all the compliances to be fulfilled to avoid any penalty or late fees due to non-compliances. Here is a list of compliances that a company need to fulfil in order to keep all the compliances up to date. Compliances relating to filing of Forms: 1.        Auditor Appointment                    : Every company is required to appoint an auditor within 30 days of the incorporation of the company. Irrespective of the fact that your CA is an Individual or a firm, they can be initially appointed for the first year of audit of the comp

COMPANY REGISTRATION

Company Registration There are various forms of company registration like Private limited company, Public Limited Company, Limited Liability Partnership, One Person Company etc. Each of these forms of company has its own merits and demerits. Like in Public Limited Company you need at least 3 Directors and 7 members. The compliances of Public Limited Company are more than other forms of company registration. Limited Liability Partnership is a new form of Partnership with benefits of company registered with MCA. However the concept of LLP has not gained acceptance as much as Private Limited Company has got. LLP also has tax rate more than that of Private Limited Company. People have also some misunderstanding with regard to LLP that the liability of all the partners of LLP is limited. But it is not so, the liability of partners other than Designated Partners is limited, and the liability of Designated Partners is limited. And there is a requirement of at least 2 Designated Partners

STARTUP INDIA REGISTRATION

About Start-Up India Registration An entity shall be considered as a Startup if such entity incorporated as a company or registered as a partnership firm or a limited liability partnership in India then up to 7 years from the date of its incorporation/ registration, however in the case of Startups in the biotechnology sector, the period shall be up to 10 years from the date of its incorporation/registration it may be considered as a startup subject to the other conditions as prescribed. If its turnover for any of the financial years since incorporation/ registration has not exceeded Rupees 25 crores and working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a Startup Startup India Scheme is an initiative by the

SECTION 80C OF THE INCOME TAX ACT, 1961

Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. 80C.  (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one hundred and fifty thousand rupees. (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—   ( i ) to effect or to keep in force an insurance on the life of persons specified in sub-section (4);  ( ii ) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan referred to in clause ( xii ), on the life of persons specified in sub-section (4): Provided  that such contract does not contain a provision