One Person Company

One Person Company(OPC), is been newly introduced in recently enacted Companies Act 2013, the concept may be new to India, but it has been followed by other parts of the world like European countries where it is more prevalent.

Meaning:

Sec 2(62) of Companies Act 2013 defines “One Man Company” as a company which has only one person as a member.
A one man company is treated as Private company only. OPC consists of one person who himself is promoter, director, member which are all rolled into one.
Section 12(3) states that the word “One Man Company” shall be mentioned in brackets below name of such company, where ever the name is printed or affixed.

Features:

1. Only One Shareholder: Only a person, who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company.
2. Nominee for the Shareholder: The Shareholder shall nominate another person who shall become the shareholders in case of death/incapacity of the original shareholder. Only a Indian citizen and resident in India shall be a nominee for the sole member of a One Person Company 
3. Director: Must have a minimum of One Director, the Sole Shareholder can himself be the Sole Director. Company may have a maximum number of 15 directors.

Steps to Incorporate One Person Company (OPC):

1. Obtain Digital Signature Certificate [DSC] for the proposed Director(s). 
2. Obtain Director Identification Number [DIN] for the proposed director(s). 
3. Select suitable Company Name, and make an application to the Ministry of Corporate Office for availability of name. 
4. Draft Memorandum of Association and Articles of Association [MOA & AOA]. 
5. Sign and file various documents including MOA & AOA with the Registrar of Companies electronically. 
6. Payment of Requisite fee to Ministry of Corporate Affairs and also Stamp Duty. 
7. Scrutiny of documents at Registrar of Companies [ROC]. 
8. Receipt of Certificate of Registration/Incorporation from ROC.

Terms and Restrictions of OPC:

1. A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company. 
2. Minor cannot shall become member or nominee of the One Person Company or can hold share with beneficial interest. 
3. An OPC cannot be incorporated or converted into a company under Section 8 of the Act. [Company not for Profit]. 
4. An OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate. 
5. An OPC cannot convert voluntarily into any kind of company unless two years have expired from the date of incorporation of One Person Company, except if the Paid-up capital of the Company crosses Rs.50 Lakhs or the average annual turnover during the relevant period exceeds Rs.2 Crores, then the OPC has to invariably file forms with the ROC for conversion in to a Private or Public Company, with in a period of Six Months on breaching the above threshold limits. 

Dear All,
  As we all know, the Chief Minister of Karnataka, Mr.Siddaramaiah has read out the Karnataka State Budget. Below are the major changes with regard to tax point of view.

1.       Proposed to tax the liquor consumers by introducing a value added tax of 5.5 percent on sale of liquor.

2.       Increase additional excise duty on beer from 122 per cent to 135 percent.

3.       Relief measures for the trade and commerce.

4.       Continue to exempt tax on paddy, rice, wheat, pulses and products of rice and wheat for one more year from April 2014.

5.       Reduce tax on scented arecanut powder other than mixtures from 14.5 per cent      to 5.5 percent.

6.       The registration limit from the present Rs 5 lakhs of annual turnover to Rs 7.5 lakhs as a relief to small dealers

7.      Increase the license fee on primary distilleries, Indian liquor manufacturing distilleries and Breweries (A Company that makes beer is called as brewer) by 50 per cent and on retail liquor shops to Rs 3 lakhs   from Rs 1 lakhs.

8.     Increase in luxury tax on minimum daily rent to Rs 750 from Rs 500.

9.   Waiver of penalty payable for default in filing of returns by small dealers who have no tax liability and  opt for cancellation of their registration.

10. Increase in minimum sale value fixed for obtaining electronic delivery note (e-SUGAM) from Rs.20000    to Rs.25000.

11. Exemption to works contractors from compulsory registration provision.

12. Suitable administrative measures to enable dealers to rectify mistakes in the returns which have no tax    implication.

13. Provision for single second appeal against reassessment for several tax periods of one financial year.

14. Provision for remission and reduction of Stamp Duty on instruments specified in the Government notification dated: 23-04-2003, with retrospective effect.

15. Exempts stamp duty on alternate sites allotted by the Bangalore Development Authority (BDA) in lieu of the land freed from government control (denotified) and on sale deeds executed under the state government's aerospace policy 2013-23.

The above are the few important highlights.

Interest on late deposit of TDS – 3 % for delay of one day

Interest on late deposit of TDS is applicable @ 1.5% per Month or part thereof.  The period for delay is taken from date of deduction to date of deposit. So in specific cases a delay of one day may lead to pay interest @ 3%.

Suppose:

TDS deducted on 01.08.2013,

In this case,  due date will be 07.09.2013

If we deposit tax on 08.09.2013, one day delay also., interest will be applicable for two months i.e., from the date of deduction  (in our example it is 01.08.2013) to date of  deposit (i.e., 08.09.2013) @ 1.5% per month (that will be equal to 3%).

So be aware of the due dates & provisions of the laws.

ITR-1	It is for the Individual assesses having the   incomes like salary/pension/House property(Excluding the brought forward losses from previous year)/other sources(excluding the income from lottery & winning from race horses).
ITR-2	It is for the Individual & HUFs not having the income from Business or Profession. The types of income is same as ITR-1, including Capital Gains. (If any clubbing of income, can also use this ITR)
ITR-3	For Individuals/HUFs being the partners in firms & not carrying out Business or Profession under any proprietorship.
ITR-4	For Individuals/HUFs having income from a proprietary Business or Profession.
ITR-4S	SUGAM- Presumptive Business Income Tax Return
ITR-5	For Firms, Association Of Persons(AOP), Body Of Individuals(BOI).
ITR-6	For Companies other than Companies claiming exemption under section-11 (Income from property held for charitable or religious purposes).
ITR-7	For persons including Companies required to furnish return under section 139(4A)/(4B)/(4C)/(4D).
ITR-8	Return for fringe benefit
ITR-V	Acknowledgement. Where the data of the return of income in forms saral-II transmitted electronically without digital signature.

Difference between TDS and TCS

TDS :-Tax deducted at source arises when we are making the PAYMENTS which are covered under the purview of TDS

Example :-Payment of salary above the AVERAGE limit (194B)

               Payment of professional charges (194J) etc.

Note :- At the time of TDS Payer has to pay lesser amount than the actual amount

TCS :- Tax collected source arises when we are dealing with the transactions which are covered under section 206C(1) of income tax act 1961

Example :-Sale of scrap,Sale of alcoholic liquor etc.

Note :-At the time of TCS seller is used to collect higher amount than the invoice amount

However in both the cases tax amount will be remitted in govt.account

                

Abbrevations in Bank

Friends, normally we all go to banks for various purposes., here I found out few short forms normally used by the bank people. So I tought of sharing with all of you. It is nice to know the short, short forms which we use in our daily life.  The following are few such frequently used ones:

Adj - Adjustment

Ar. – Arrears

Capn. – Capitalisation

Chg/Ch. – Charges

Chq. – Cheque

Clo. – Closure

Coll – Collection

CoR/CORR – Correction

Csh – Cash

Dep – Deposit

Dish/dsh – Dishonour

Inop – Inoperative

Ins – Insurance

Lon/ln – Loan

OS – outstanding

P & T – Postage & Telegram

POS – Point of sale

Pr – Principal

Proc – Processing Charges

Ret/rtn – Return

Rnd – Round off

SC – Short credit

SI/SO/SORD – Standing Instruction

Txn – Transaction

Wdl – Withdrawal

+MOD BAL – Total Balance

  

Hope it helped you.

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