Key points of 42th GST council Meeting headed By FM N. Sitharaman

Key points of 42nd GST council Meeting by video conferencing

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www.carajput.com; council meeting

The 42nd GST Council met by video conference under the directorship of Union Finance & Corporate Affairs Minister Smt NirmalaSitharaman. Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur, along with State & UT Finance Ministers and senior officers of the Ministry of Finance & States / UTs, also attended the conference. The result of the 42nd GST Council meeting by video conferencing is proposed as follows:

  • The cessation of compensation is expanded beyond a transitional duration of 5 years. As specified in the GST(CS) Act, 2017, ending in June 2022. The act is updated accordingly.
  • The existing GSTR-1/3B return filing procedure will be extended to 31st Mar 2021.
  • Taxpayers with aggregate turnover less than 5 crores are permitted from 1st January 2021 onwards to file returns (both FORM GSTR-1 and FORM GSTR-3B) on a quarterly basis in an approved bank account connected with the registrant’s PAN & Aadhaar. Even so, in the first two months of the year, these taxpayers would have to pay at least 35 percent of the last quarter’s net cash tax liability by using the auto-generated challan and adjustment should be made for the balance in the third month of the year while filing the return.
  • For the submission of refund claims, Refund to be paid/disbursed on an approved bank account connected with the registrant’s PAN & Aadhaar with effect from 1st Jan 2021. DSC is no longer compulsory. It can also be signed through Aadhaar authentication.
  • To promote satellite launching services by new start-ups, the ISRO  provided satellite launch service, Antrix corporation ltd. and NSIL will be excluded.
  • With effect from 1st April 2021, the provision for disclosing HSN codes / SAC in tax invoices and Type GSTR-1 has been updated as follows-
Aggregate turnover more than or equal to Rs. 5 Crore 4 digit of HSN/SAC
Aggregate Turnover less than Rs. 5 Crore 6 digit of HSN/SAC
For other categories of suppliers notified soon 8 digit of HSN/SAC
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www.carajput.com; 42 GST council meeting

  • The CG will disburse to the States tonight the reimbursement cess collection, amounting to Rs. 20,000 crores, against the tax shortfall for FY 2020-21. In addition, the state’s share of the FY 2017-18 IGST collection, amounting to approximately. 25,000 crores, to be disbursed by next week as well.
  • Another conference to reach the official notice will be held on 12 October 2020 in regard to payments to States with a revenue deficit.
  • The existing form GSTR-1/3B system is to be expanded till 31 March 2021 and the GST regulation is to be changed to make this system the default return filing system. Additionally, payment of tax will be made monthly through challan.

With effect from 1st Jan 2021

  1. FORM GSTR-3B output tax obligation is auto-populated on the basis of FORM GSTR-1 filed by the taxpayer.
  2. FORM GSTR-3B input tax credits are auto-populated on the basis of FORM GSTR-2B filed by monthly filers’.

With effect from 1st April 2021

  1. FORM GSTR-3B ‘ input tax credit is auto-populated on the basis of FORM GSTR-2B filed by quarterly filers.
  2. FORM GSTR-1 is compulsory to be filed before FORM GSTR-3B in order to ensure the auto-population system as stated earlier.
  • Amendment to the CGST Rules: Multiple amendments to the CGST Rules and FORMS, including requirements for the provision of Nil FORMCMP-08 via SMS, have been proposed.

Note:- In this notice, the decisions of the GST Council were submitted in simple language for easier interpretation. The same effect will be granted to notifications/circulars from the Gazette that alone has the force of law.

Regards

Rajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Reasons for the Movement of Goods under the GST

GST is a tax-based destination, i.e. goods/services would be taxed at the place where they are purchased and not at the point of origin. So, the state in which they are consumed would have the right to receive the GST.

This, in effect, makes the idea of the place of supply essential to GST, as all the regulations of GST revolve around this one.

The place of supply of goods under the GST determines if the transaction will be counted as intra-state or interstate, and the levy on SGST, CGST & IGST will be calculated and the results.

GST: Place of Supply In case There is a Movement of Goods

Reasons for the Movement of Goods under the GST 

Supply  In case of outward supply of goods, the supply liable to GST as per Schedule I or inward supply of goods liable to tax under reverse charge by a taxable person.

Export or Import  In case of export of goods from or import of goods into the territory of India

Job Work  When the principal and the job worker are registered persons the EWB will be generated by the principal when he occasions the movement of goods for job work and by the job worker when he occasions the movement after job work, and by the recipient, if the job worker is not a registered person.

SKD or CKD – The goods may be supplied on semi-knocked down (SKD) condition or the goods may be supplied in batches to be assembled at the place of the recipient in case of completely knocked down (CKD) conditions, the e-way bill is to be generated, based on the value of the product being transported

Line Sales When the goods are taken in the delivery van in a particular route to effect sale to all the retailers, the movement of goods is to be covered by an e-way bill. When the goods are moved under ‘Recipient not known’, they may not know the details of sales. However, the total value of the consignment e-way bill has to be generated.

Sales Return  When the recipient rejects and sends back the goods they have to generate an e-way bill or the supplier will have to generate an e-way bill on the capacity of the recipient of such goods

Exhibition or Fairs – When the registered person is going to participate in an exhibition or fair, and the goods are moved from the godown of such person, then the e-way bill is to be generated

For own use – When goods are purchased for personal use, the supplier will generate EWB

Others – For any item other than the above, such as the movement of goods for provision of supply of service or for any other purpose which involves movement of goods, EWB should be generated  

GST: No Movement of Goods

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

KEY TAKEAWAYS OF GSTR 4 ANNUAL COMPOSITION SCHEME DEALERS 

KEY TAKEAWAYS OF GSTR 4 ANNUAL COMPOSITION SCHEME DEALERS 

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www.carajput.com; GST; GSTR-4 due date

  1. What exactly is Form GSTR 4 Annual Return:-Annual GSTR 4 Annual Return for each Financial Year will be submitted by all Composition Taxpayers (w.e.f 01 April 2019). For those taxpayers who have opted for GST Composition Scheme in the new indirect tax regime, the GSTR-4 form is an annual return. Under the GST composition scheme, taxpayers will be required to file one return for each fiscal year only. The taxpayers will also be required to file CMP-08 for the payment in each qtr of the year. The expected date for each CMP-08 filing is the 18th of every succeeding quarter
  2. Who is supposed to file Form GSTR-4 Annual Return: All Composition Dealers who have preferred composition scheme for some time, must file GSTR 4 on a yearly basis from 01.04.2019 on. Both registration composite taxpayers are required to file a tax return. A taxpayer who opts for a Composition Scheme is required to file GSTR-4, except for –Non-resident taxable citizen
    Taxpayers who are eligible to collect TCS
    Distributors of Input Operation
    Taxpayers liable to deduct TDS
    Composing taxable citizen
    OIDAR Suppliers (Online Information and Database Access or Retrieval)
  3. May Nil GSTR 4 Annual report filed: you can register the report of Zero for the financial year if you have:
  • NOT made any outward supply
  • NOT received any goods/services
  • Have NO other liability to report
  • Have filed all Form CMP-08 as Nil
  1. Due date of filing GSTR 4 & GST CMP-08 Payment Form: It must be filed by 31/10/2020 for FY 2019-20 and the due date for GST CMP 08 Due Date for FY 2020-21
Quarterly Period  Timeline Dates
1st Quarter – April to June 2020 18th July 2020
2nd Quarter – July to September 2020 18th October 2020
3rd Quarter – October to December 2020 18th January 2021
4th Quarter – January to March 2021 18th April 2021

 

  • Required to file Form GSTR-4 Annual return: Click on Services-Return-Annual Return-Select FY 2019-20-Search-GSTR 4- File Return to login into your dashboard.
  • Process step to be taken care during the filling of GSTR 4:
  • www.carajput.com;GST GSTR4

    www.carajput.com; GST GSTR4

  • The File key is only activated if:
  • No additional cash is required for liabilities
  • You tapped on the checkbox for the declaration
  • You picked the approved signatory information from the drop-down list
  • The surplus balance paid by GST CMP-08, which is included in the derogatory declaration of responsibility, will also be added to liabilities if any.
  • If the available balance in the electronic cash ledger is less than the amount needed to cover the liabilities, you can directly generate the voucher by clicking on the Build CHALLAN button.
  • Taxes and late payments are drawn up automatically in Table-8, but interest is the feedback of the customer. Liabilities can only be discharged by an automated cash ledger.
  • The inward supply data (from Table 4B, 4C, and 4D for each tax rate) will be auto-drawn in Table-6 only after the Taxpayer has pressed the ‘Continue to register’ button. The balance before that is shown as ‘0’ (zero)
  • After entering outward supply information in Table-6 and pressing the “Proceed to register” button, RCM-based liability is auto-populated from the details provided in Table 4B, 4C, and 4D. Table-6 indicates then the gross tax obligation
  • The taxpayer has to enter the descriptions of the outward supplies in Table-6 (Row 12-16) of GSTR-4 manually.
  • Overview of self-assessed liability is auto-populated on the basis of filed Form CMP-08 in Table-5 of the GSTR-4 Annual Return & is uneditable.
  • The GST amount in Table-4 of GSTR-4 is basically auto calculation made on the input of the values fed in Taxable Value and tax rate fields. However, the GST amount is editable in the table. The CESS shall be paid by the taxpayer.
  • The cumulative revenue is expected to be entered over the last year and if there is no sale or revenue in the last year of the company or if it is not registered, it could be zero.
  • The annual GSTR 4 return submission will be triggered after the taxpayer has completed the filing of all quarters of the CMP-08 for that fiscal year.

Note: Point to be considered while using offline Tool

  1. A few Important points to consider before filing GSTR 4:
  • Form GSTR 4 can be filed only if, all applicable quarterly statements in Form CMP 08 of that financial year, have been filed.
  • Form GSTR-4 Annual Return, once filed, can’t be revised
  • After successfully filing, ARN will be generated and intimated through email and SMS
  • Currently, only the online filing has been enabled on the portal. Shortly, an offline tool to file Form GSTR-4 Annual Return will also be made available.
  1. New updates in Form GSTR 4Current features of GSTR 4 Return Form
  • The GSTR 4 annual return due date has been extended again until 31 October 2020 for the year 2019-20 Read more
  • Let us understand how to create use offline techniques to plan Form GSTR 4 Annual Composition Taxpayer Return. The GST platform has created an offline excel tool for all tax-paying citizens to help them obtain their GSTR 4 annual return form
  • GSTR 4 Returns shall be filed on an annual basis for compounding taxable individuals. The last date of filing of the GSTR-4 (CMP-08) payment form is the 18th of the month following the section. GSTR 4 (CMP-08) returns may be filed on 18 April, 18 July, 18 October, and 18 January, and so on.
  • GSTR – 4 The form is submitted by all taxpayers enrolled under the composition scheme.
  • Business enterprises listed under the composition system would be expected to pay tax at fixed rates on a regular basis without the use of an input tax credit facility.
  • The taxpayer would be allowed to show the overall amount of products purchased over a given time and the tax collected at the composition rate
  1. Annual Return Form GST-4 Available on the GST Server.

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    www.carajput.com; GST GSTR4

Currently, the GSTN has agreed to encourage residents, assessors, and companies to file GSTR 4 on an annual basis. This has been achieved because of the community’s demand. The form is also available on the site, which further eased the assessment and the taxpayers in identifying and submitting the form as per their approval.

11. Recent Council GST Meeting with regard to for Composition Traders

  • GSTR 4 return is required to be submitted on a quarterly basis instead of on a quarterly basis with the tax paid on a quarterly basis.
  • The GST Council expanded the annual turnover cap to 1.50 Crores, effective from 1 April 2019.
  • GST threshold of 6% relevant to the Composition Scheme for service providers and sales of up to 50 lakh per year
  • Note: The aforementioned changes shall be taken following the official notification of the govt.

12. Does the GSTR 4 be revised?

After filing on the GSTN Site, GSTR-4 can not be updated.

13. Is there a penalty for the late filing of GSTR 4?

A delayed fee of Rs. 200 per day shall be charged if the GSTR-4 is not filed within the due date. The cumulative late fee can not, nevertheless, exceed Rs. 5,000.

14. The basic term normally used in GSTR 4

SAC – Services Accounting Code

B2C – From registered person to unregistered person

UQC – Unit Quantity Code

POS – Place of Supply of Goods and Services

GSTIN – Goods and Services Taxpayer Identification Number

UIN – Unique Identification Number

HSN – Harmonised System of Nomenclature

B2B – From one registered person to another registered person

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Key updates on GST- Compliance Before 31st August 2020

Key updates on GST- Compliance Before 31st August 2020

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www.carajput.com; GST

Background

Adhering to tax-related compliance introduced by the Indian government is obligatory for taxpayers in India. Failure to comply with the due dates for filing GST returns as well as the GST rules which result in the government imposing severe penalties on taxpayers in India. The tax compliances have experienced a complete improvement in the last 6 months. Given the prevailing Coron-19 pandemics, the entire compliance schedule has been changed.

It is not only about income tax but also about GST. We’ve been reviewing income tax compliances over the past week and now we’re going to cover compliances that need to be completed by August 31 to escape fines and late fees. Tax compliance was difficult, especially during the COVID period, when human health and safety were of primary importance. All the GST compliance requirements, the deadlines for which are August 31, 2020, are given below.

GST Milestones expiring 31 August 2020

Many deadlines for GST implementation expired on August 31, 2020. To prevent late payments and fines, it is important to recall those due dates and to file the returns. Let’s see which time-limit expires on August 31, 2020.

After taking into account the notifications the final deadlines will be as follows: 
 2 Yr  from the prescribed date falls between Final due date to submit a refund application
1st January 2020 to 19th March 2020 The respective day between 1st January 2020 to 19th March 2020
20th March 2020 to 31st March 2020 31st August 2020

Due to COVID 19 Situation and after Hon’ble FM Ms. Nirmala Sitharaman Ji “Corona is an act of God” and business loss now is the time to avoid late Fee, Interest, and Penalties.

Deadlines are as under:

·Refund Application FY 2017-18: Online thru Form GST RFD-01

·GSTR-4 (FY 2019-20): Filed by Composition Taxable Person (Notification No. 59/2020).

·GSTR-5: Filed by Non- Resident taxable person.

·ITC 04: ITC-04 is related to job worker and submitted by the principal every quarter. The last date of ITC 04 of the 4th quarter of 2019-20 and the first quarter of 2020-21 is 31st August 2020. (Notification No. 55/2020 dated 27.06.2020).

·As per Notification No. 55/2020 dated 27.06.2020, the due date for the month of March 2020 to July 2020 is extended to 31st August 2020 (Point No. 5 to 9).

·GSTR-5A: Filed by OIDAR service providers.

·GSTR-6: Filed by Input Service Distributors (ISD).

·GSTR-7: Filed by TDS deductor.

·GSTR-8: Filed by E-commerce Operator.

·Letter of Undertaking (LUT) FY 2020-21: Notification No. 55/2020 Letter of Undertaking (LUT) is a document that exporters can file to export goods or services without having to pay taxes. Any registered individual will be able to supply LUT in GST RFD 11 type and export products without paying the integrated fee.

·Other related GST compliances (except few provisions covered in the exclusion clause of N.N 55/2020-CT dated 27.06.2020) which falls during the period 20.03.2020 to 30.08.2020 and which has not been made.

E-Invoicing: E-Invoicing is soon for becoming necessary, We built a knowledge pool for fast integration. Details are an attached post : 

Details about the E- Invoices 

Applicability of E-invoice Framework for GST

Basic details of Invoice registration Portalirp on GST

Moving to the September GST compliance timeline, here is a detailed description of our September compliance calendar:

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www.carajput.com; GST Planner

GST Returns Application late fee

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www.carajput.com; GSTR-4 Late Fees

The late fee according to the GST Act is Rs. 100 a day per statute. So it’s under CGST 100 and under SGST 100. Max is Rs. 200 / day. The maximum amount is Rs 5,000/-. No late fees are paid on IGST.

Submission of return is mandatory under GST. And if there is no trade, you will have to file a refund from Zero. You can not file a return until you register the return of the previous month/quarter. Late filing of GST return would also have a cascading impact and will lead to heavy fines and penalties. The GSTR-1’s late filing fee is deposited in GSTR-3B ‘s liability ledger directly after such a delay.

Interest / Late Fee to be paid

The interest per annual is 18 percent. It must be based on the amount of outstanding tax owed by the taxpayer. It is to be calculated at the time of payment on the Net tax liability identified in the ledger. The time span is from the next day after filing due date to the final payment date.

Prosecution in GST 

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www.carajput.com; GST Prosecution

So here is the expectation that the compliances will be completed before all these extended due dates.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

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www.carajput.com; GST No late Fees

For each GSTR-3B return, a late fee of Rs. 500/- is capped.

In the perspective of the GST taxpayers’ massive relief the government has chosen to limit, on the basis of the condition that such GSTR-3B reports are filed prior to 30 September 2020, a late maximum fee of Form GSTR-3B to Rs 50/- (only 500) by tax return for the tax period July 2017 to July 2020.

Notice was provided to include zero late fees if no tax liability exists; and if there is any tax liability, the GSTR-3B returns filed by 30 September 2020 will be subject to a maximum late fee of Rs. 500 for such returns.

Thanks to further flexibility in the deferred fee paid for tax periods between May 2020 and July 2020, numerous representations have been issued. In order to clean up past pendency of returns between July 2017 and January 2020, relief has been issued for February 2020 of April 2020 in addition to previously granted. In addition, the design and implementation of a standard late payment are easier on an automated common portal.

The late fee for the return is only limited to Rs. 500/- if it is filed before 30 September 2020.

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www.carajput.com; GSTR-4 Late Fees

Summary of Important Due date of July and Aug 2020

 

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www.carajput.com; Prosecution in GST

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Why Virtual Office is an essential address for small Indian firms.

Why Virtual Office Address is essential to Indian small businesses.

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www.carajput.com; Virtual Office

Business prospects have plenty of needs and requirements and most company owners look forward to some of the new technologies that are available ahead to assist them in the company of scale. There are tons of ways in which new business owners are trying to implement to make sure they are ready to develop their business quickly. The saddest reality is, the idea of a virtual office address is not known to a lot of businesses, especially to small companies.

Virtual Office Address for Business Registration

Most are not aware that having a virtual office address can have an immense effect on their business and can help them hit a speed not connected to the conventional environment of their offices.

What is the address of the virtual office?

The aim is to get a legislator answer in a room when you are not running an efficient office when you take up a virtual job. To make it simpler, without running an office there, you will have the place’s address.

Tons of confusion emerges in the mind when the idea of virtual offices is stated. The idea is basic, all you have to learn is that virtual offices almost seem to have an address. The only difference is that you would actually just have an address and not an actual physical location. This means that you actually don’t have to have a real office, you’re just going to have a main place address and buy a website. It’ll help you save tons of the investment in the capital you simply allocated for equivalent with this virtual office idea.

Today, if you’re a small company, you have to consider a lot of things, like the use of virtual offices. Several benefits, particularly for small businesses, relate to having a virtual office. The following advantages will confirm that while running the company at its best, you will expand your business in a very fast phase in the short term.

Values for small businesses in India Virtual Office address

The benefits that you can actually reap as a small business will be a significant factor in the overall success of your business model, which also demonstrates that methods of your company scaling can be much quicker than traditional routes. The main advantage you’re going to have is that the savings you receive from a virtual office address in India.

www.carajput.com;GST Virtual Office

www.carajput.com; GST Virtual Office

Economical Virtual Office Address Services for GST Registration

Savings of the capital

There are countless things you just have to confirm before you start a business and one of the first goals is to have enough money to spend when your company has a dry spell. This suggests that each process you do with your company must be cost-effective, and often it’s important especially for a replacement company.

You will save 70% of your investment with a virtual office because the bulk of your money is not invested in operating an actual office. This rise in savings in your investments will help you broaden your business strategies and also help you do a lot of complex work on other investments.

Huge presence to Small Business

We all know how important the presence of your business is as a little business owner. More and more scope you have the business, the more ready you are to build a client database. You are ready to develop your products on the path in no time by increasing the customer base and, in no time, your products will have huge market demand, so long as the product or the service you provide is of good quality. 

Adding a knowledgeable outlook

Hundreds of factors contribute to the professional identity of a small company, but the bulk of the effort comes from a place of company. This gives your company enormous credibility. A key position specifically means that all leading specialist businesses are situated in prime locations and that you have a high level of services. You have met the need to create an expert face for your company with a virtual office address at a prime location.

www.carajput.com; Virtual Office

www.carajput.com; Virtual Office

Prime Virtual Office Address at Cheapest Prices

Attracting more business opportunities

When you have been figured out that your company will improve drastically and in no time if your services are equally successful, you will face tremendous demand. Your enterprise will draw more business opportunities than ever, as an organization with an honest reputation in an excellent location.

Access to items from the virtual office services at the workplace.

Different facilities like email, training rooms, conference rooms, etc. can also be accessed at extra cost with a virtual office in India. This means that you are going to do business efficiently within a short time and that massive business investment will also take place within a short period.

You simply have to try and locate a virtual office provider such as www.carajput.com and make a reservation right away. By contacting us on www.carajput.com you will always book a virtual office and ensure a reservation now!

If you’ve got any questions please visit the website and contact our skilled support team for a detailed look.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST newest Notifications: CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

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www.carajput.com; GST 40th Council meeting

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020, the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020, and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

www.carajput.com;GST 40th Council meeting

www.carajput.com; GST 40th Council meeting

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

www.carajput.com;GST 40th Council meeting

www.carajput.com; GST 40th Council meeting

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

 

www.carajput.com;GST Relief to small business

www.carajput.com; GST Relief to small business

Summary of Important Due date of July and Aug 2020

Thanks

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Whirlpool convicted & imposed a penalty of Rs 4.07 lakh by NAA for denying customers the benefit of the GST rate reduction.

Whirlpool convicted in accordance with Rs. 4,07,451/- of profiteering by the National Anti Profiteering Authority on its fridges

www.carajput.com; GST

www.carajput.com; GST

NAA discovered the long-term consumer corporation Whirlpool of India convicted of not having to pass on a GST rate reduction advantage of more than Rs 4.07 lakh to its refrigerator purchasers. Kerala State Screening Committee Anti-Profiteering (NAA) vs. Whirlpool India Ltd.

The concise details of the matter are that the petitioner had made reference a case against Whirlpool to the Standing Committee on Anti-Profit-making alleging profiteering on the supply of fridge Whirlpool (HSN code 84182100), by not passing on the benefit of reducing tax rate w. e. f. 1 July 2017 Pursuant to Section 171 of the CGST Act, 2017, by way of a substantial price decrease.

Few justifications by the defendant and the authority to reply

The plaintiff contended that the rise in prices could not be created because of other commercial factors, which had the impact of placing unlawful restraint on his fundamental right and was consequently in accordance with Article 19(1)(g) of the Indian Constitution.

In this relation, it would also be important to state that section 171(1) requires only the participant to pass on the advantage of the reduction in taxes to the purchasers and does not require him to set his prices in accordance with any authority direction. The above profit was provided by the government to ordinary buyers by sacrificing their valuable tax revenue which the respondent can not be permitted to misappropriate and enrich themselves at the detriment of unorganized, voiceless, and vulnerable common buyers. The respondent is free to exercise his right to trade and set prices, but under the pretext that it infringes his right to trade, he can not deny the above benefit.

The defendant also argued that the product’s manufacturing cost (BOM) had experienced a rise since August 2016 due to a rise in the cost of raw materials which had been computerized to come at the MAP at the end of each and every month.

In this relation, it would also be necessary to note that on the very date from which the tax rate was reduced, there was no reason for the respondent to increase its basic price. There is also no justification for ascertaining why the respondent had not raised its price every month during the period from August 2016 to June 2017 when he computed the MAP every month.

The representative also claimed that there had been an increase in the total freight cost in 2017 compared to Rs. 29 per unit in 2016, which was expected to be added to the price.

As mentioned above, the defendant had no reason to raise its price on the occasion of the reduction in taxes, and thus the respondent’s argument is frivolous and not bonafide, which was made with an ulterior purpose for the betterment of the tax cut.

Held by Authority: on the grounds of the details of the matter, the amount profited by Whirlpool shall be determined as Rs. 4,07,451/-. The Respondent is instructed to lower the price with the above-mentioned product and also to deposit the benefited amount together with interest at 18 percent. A notice of cause shall be issued to him to illustrate why the punishment under the GST Act should not be enforced on him.

Prosecution under GST are as under 

 

www.carajput.com;GST Prosecution

www.carajput.com; GST Prosecution

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate And Professional Updates on 16th July 2019

Direct tax Updates:

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  • CBDT has issued Clarification regarding taxability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment Fund.
  • Govt has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 lakh crore, a task that the CBDT chief said is difficult but achievable. He also said that the government can only think of further “lowering” corporate tax rates once the exemptions and deductions in this sector are phased out.
  • Govt has ruled out a rollback of the ‘super-rich’ tax on foreign portfolio investors (FPIs) organised as trusts or AOP. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge.The move will hit 40% of the FPIs.
  • Income Tax Return (ITR) filing compulsory for persons who deposit over Rs 1 crore in a current account in a year, spend over Rs 2 lakh on foreign travel or have an annual electricity bill of more than Rs 1 lakh.
  • Persons receiving income upto Rs. 50 lakh from salary/1 house property/other income, file Income Tax Return SAHAJ by 31.07.2019. Avoid late fee of Rs. 5000.

Indirect tax Updates:

  • The pending decision to introduce parity in GST rates on government and private lottery is unlikely to feature in the meeting. Sources said the meeting of group of ministers (GoM) mandated to deliberate on the issue of lottery was cancelled at the last moment. It is learnt that the decision to cancel the GoM meeting was taken to prevent any possible violation of the model code of conduct, which has set in on Sunday following the announcement of general elections to the Lok Sabha by the Election Commission of India.
  • The law review committee and the fitment committee under the GST Council deliberated on setting up the guidelines for taxpayers after the rates on underconstruction houses were slashed in the last Council meeting on February 24. The GST rate for affordable houses was reduced to 1 per cent, while that for all other underconstruction houses was reduced to 5 per cent.
  • The need for detailed guidelines or rules was borne from the fact that the rate reduction made builders ineligible to avail input-tax credit (ITC) in the value chain, which would bring back informal cash channels to the real estate business. The committees are said to have gone ahead with the mandatory requirement for builders to procure 80 per cent of their inputs from registered dealers in the formal sector. The new rates and rules come into force on April 1.  In addition, the rules would specify the extent to which the opening input-tax credit on April 1 could be used by builders. It is likely that the Council would take a decision to utilise credit to the extent of the completion of the housing project.
  • Experts said the projects that are nearing completion would benefit the most from the rules, which are learnt to have been submitted to the GST Council. It is yet not known as to which authority would certify the extent of completion, but experts said it would be subject to audit nonetheless. The guidelines would also have the methodology to deal with properties which have a mix of residential and commercial spaces.

Other updates:

  • Exports fall for first time in nine months amid trade tensions
  • Shriram Transport looking to raise up to₹10,000 crore through NCDs
  • Sun Pharma Surges 3.6% After Morgan Stanley Double Upgrade
  • IRDAI may Relax Rules for Pension Plans & Ulips, Make Surrenders Easy
  • Aditya Birla Fashion acquires 51% stake in Finesse International for ₹60 crore
  • Securitisation Market Records 50% Growth in Q1
  • India’s steel exports fall 34% to 6.36 MT in 2018-19
  • Govt may issue sovereign bonds in phases, first lot to be of $3-4 billion
  • Manipal Hospitals set to buy Medanta for ₹6,000 crore
  • MFs differ with banks over DHFL resolution, may opt for the DRT route
  • Customers forgotten in rush for electric vehicles, says TVS Motor chairman
  • Exports contract 9.71% in June; trade deficit narrows to $15.28 b
  • Sun Pharma launches capsules for lipid disorder treatment in US
  • NCLAT order on Essar Steel has rewritten IBC rules: Lenders
  • Ashok Leyland temporarily shuts Pantnagar plant
  • IndiGo secures credit facility worth ₹2,577 crore amidst promoters dispute
  • NIIF may invest $100 million in Multiples PE’s third fund
  • Ambuja looks to expand cement capacities with buys in RMCs, aggregates
  • BHEL, CONCOR tie up for rail-based logistics terminal at Haridwar
  • Reckitt Benckiser and Apollo Hospitals tie up to launch ‘Arogya Rakshak’
  • ‘Amazon Prime Video, ZEE5 in talks for a platform deal’
  • Govt diverting around Rs 17,000 crore from petrol and diesel cess kitty
  • Investors flee debt funds as credit quality slumps to lowest in 16 months
  • USFDA completes Chennai facility audit with zero observations: Natco Pharma
  • Sales improve 16% in the first quarter: Tata Steel
  • NTPC raises ₹4,300 cr through bonds
  • Sensex Rises 160 Points on Infy Surge, Macro Data
  • Hero Electric eyes South India for new plant
  • Real estate developers at risk as stress in credit market dries up funding
  • Cotton Greaves increases stake in electric two-wheeler maker Ampere

Key Due Dates:

  • 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
  • 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service  recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one  financial year for the specified and notified services.
  • 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
  • 10-07-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.
  • 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
  • 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
  •  13-07-2019 – GSTR-6 for Input Service Distributor.
  • 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May’19.
  • 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June, 2019.
  • 15-07-2019- ESI/PF Payment for m/o June 2019.
  • 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.
  • 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
  • 20-07-2019 – GSTR-3B for the m/o June 2019.
  • 20-07-2019 – GSTR-5 for the m/o June 2019.
  • 20-07-2019 – GSTR-5A for the m/o June 2019.
  • 25-07-2019-  EPF return filing for the month of June 2019.
  • 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
  • 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in     month of June’19.
  • 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.
  • 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June, 2019.
  • 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
  • 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.
  • 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 23rd January 2019

Direct Tax Updates:

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  • The Department of Income Tax made a list of Individuals who made Out High value transaction in financial year 2017-18 but did not file income tax returns. The Department is analyzing the list carried out to identify non-filers about whom specific information was available in the database of the department.
  • The information may include statement of financial transactions, tax deduction at source, tax collection at source, foreign remittance, Export and Import. The Non-filers Monitoring System aims to identify and keep a watch on people who enter into high-value transactions and have potential tax liabilities but have not filed their tax returns Data analysis has identified some non-filers who have made high-value transactions in financial year 2017-18 but have still not filed income tax return for assessment year 2018-19. The department has enabled e-verification for taxpayers to decrease the cost of compliance by responding online.
  • The Taxpayers Can Access information relating Their cases from the portal of compliance which is accessible through the e-filling portal of the income tax Department. A Stable Accountholder needs to submit the response on the compliance portal and obtain a proof of it. All the Non Fillers are requested to file Their Income tax Return and assess their tax liability for AY2018-19 or submit online response within 21 days. Explaining if the matter Find Satisfactory Would Be Closed online. In Case of No Return File Or no Response is received initiation of proceedings under the Income-tax Act, 1961 will be considered.

Case Laws of Income Tax:

Bombay High Court in case of  Suresh Kishna Bhagat Vs. Pr. CIT-2 Thane

Payment of 3rd installment as per the Income Declaration Scheme, 2016 (IDS) been delayed – These are strong indications that the legislature does not envisage any extension of time for payment of tax under the Scheme. No directions contrary to such legislation scheme can be granted.

Punjab and Haryana High Court in case of M/S Glaxo Smithkline Consumer Healthcare Limited vs. ACIT

Treatment of unutilised MODVAT credit, balance as at the end of the year as payment of excise duty – Deduction u/s 43B – Excise duty paid in advance in the Personal Ledger Account (PLA) – Benefit of deduction allowed

ITAT Delhi in case of Cliff Scaffoldings Pvt. Ltd. Vs. ITO,Ward-3 (2), New Delhi

Denial of exemption claimed u/s 10AA – sale made by one SEZ unit to another SEZ unit – there is a provison in another enactment (SEZ Act) which contains non obstante clause then that would override the provision of the Income Tax Act – Benefit of exemption allowed.

ITAT Amritsar in case of M/S Ram Lal Bhasin Public School Vs. The CIT (Exemptions), Chandigarh

Exemption u/s 10(23C) – assessee is a school of “Sanatam Dharma Paracharak Sabha” – when the assessee was running a school for educational purposes and not for earning profit, then it was entitled to the exemption u/s 10(23C)(vi)

Indirect Tax Updates:

Image result for inDirect Tax HD Pics

  • The biggest tax reform since India’s independence is still in a fluid state of continuous change as businesses, especially the small ones, struggle to cope with the rigors of a technology-driven and transparent tax system that has cast its net far and wide to bring at least 3.4 million new indirect taxpayers. Some of the concessions to small businesses announced earlier this month by federal indirect tax body, the GST Council, ahead of parliamentary polls due by April-May, raise fears about sacrificing some of the basic design advantages of GST over the previous regime simplicity and uniformity.

GST Registration:

On The Last Meeting of GST Council Held On 10th January 2019 decided to let states choose between two possible criteria i.e. 20Lakh & 40Lakh annual sales for businesses to get GST registration as it could not arrive at a consensus on doubling the current threshold level.

Having two state-specific turnover threshold limits can shake the foundations of GST. One can only hope that local businesses will put pressure on those states that refuse to raise the threshold, to eventually raise it to 40 lakh and bring it at par with the other states.

Return of the CESS:

The State is working towards the process of taking a call on the threshold that suits their local economy Kerala, which is recovering from the worst floods in a century that submerged large parts of the state last year, will opt to retain 20 lakh annual sales threshold for GST registration, while Delhi, Jammu and Kashmir, and Assam have opted for 40 lakh Even in most advanced countries, it took twothree years for GST to stabilize. India is far more diverse.

When there are different legal provisions in different states, uniformity takes a hit which is a step backwards This could also encourage some units to move to other states for staying out of tax net, the kind of distortions India tried to address with the tax reform.

Reform Goals Achieved:

GST has helped in adding 3.4 million new indirect taxpayers, according to Economic Survey of FY18 and has helped in formalizing the economy. It has also improved transparency in the tax system and reduced the tax incidence on a host of products and services.

This, despite the fact that the administration is not on a tax enforcement drive. The number of items in the highest slab of 28% has also been brought down. The Council is now working on using data from radio frequency identification tags attached to vehicles to verify whether e-way bills or electronic permits issued for goods shipment are misused. The idea is to collect data passively to check tax evasion and boost revenue receipts. GST could see further changes with the opposition Congress party making it an election issue, arguing a revamp is needed.

RBI Updates:

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  • The central bank is of the opinion that the OIS market needs to be developed in line with the developed countries as it provides an interest rate hedging tool to overseas investors. If FPIs participate in large numbers, liquidity would increase.
  • The Investors on Us basis, who need to be compliant with stringent US Securities and Exchange Commission norms, look for operational ease whenever they come to any emerging market. The RBI on Monday met about 40 FPIs for the first time in about five years to gauge overseas investment interest in domestic fixed-income and debt securities.

Key Due dates:

  • Challan-Cum Statement in respect of TDS under Section 194IB for the month of December 2018 is 30thJanuary 2019.
  • Challan-cum statement in respect of TDS under section 194IA for the month of December 2018 is 30thJanuary 2019.
  • TDS return for Purchase of Property For the month of December 2018 is 30thJanuary 2019.

Quote of the Day:

The purpose of a profession is to fulfill the personal wishes of a prospect.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)