Statutory Compliance

Statutory Compliance is very Important for any businesses in India. Every company has one common thing at its core – people. Without people, no organization can function. For a company to function well, it needs to be organized and streamlined, with proper norms and regulations set in place. These regulations extend to every facet, including the company’s interactions with its employees and its finances. This is known as statutory compliance.

On July 1st, 2017, India moved to a new tax system – one that aims at converting the entire nation into a single market. If you are new to GST and keen to know how this new tax will affect you and your business, this section will help you understand the basics of the ‘Good and Simple Tax’.

GST Registration

We all know that registering for GST is mandatory, but does your business even need a GST registration? What would be the pros and cons of obtaining a GST registration and how does one obtain it? This section gives you a clear understanding of the registration process and how to go about it.

GST Rates & HSN Codes

The HSN Code is a universal system of product/service nomenclature that has been used since 1988. It is important to use the correct HSN codes for your product and tax it at the correct rate. If you wish to know your product’s HSN codes and GST rateplease check below link.

https://cbic-gst.gov.in/gst-goods-services-rates.html

GST Returns

Filing tax returns on time is an important part of being GST-compliant. We will help you to decide which returns your business needs to file, and how to file them on time.

http://www.websitedev.info/capital-bid/wp-content/uploads/2021/04/Acrobat-Document.pdf

Some of the rules and regulations which it is mandatory to be compliant to, or which need statutory compliance, are the Income Tax Act, Companies Act, PF and ESIC, and Service Tax. There are different forms, taxes, and assesses for these.

Companies Act:

The table below shows the list of incorporation related forms

Purpose	Form (public and private cos)
Incorporation of company	INC-7
Reservation of name	INC-1
Nominee consent form	INC-1 (OPC)
Appointments of Directors	DIR-12
DIN Application	DIR-3
Notice – director resignation	DIR-11
Notice- Auditor registration	ADT-3
Statutory Report	22
Nominee consent form	INC-3
Change in Member	INC-4
Filing profit and loss account	23ACA

 

Income Tax Act:

The following table shows tax rates for individuals and HUF

General/NRI	Senior citizen	Super senior citizen	Rate
Rs.2.5 to Rs.5 lakh	Rs.3 to Rs.5 lakh	–	10%
Rs.5 lakh to Rs.10 lakh	Rs.5 lakh to Rs.10 lakh	Rs.5 lakh to Rs.10 lakh	20%
Above Rs.10 lakh	Above Rs.10 lakh	Above Rs.10 lakh	30%

 

Deductions:

The following table shows deductions under various sections

Section	Particulars	Amount
Section 80CCC	Pension Fund	Rs.1.5 lakh
Section 80C	PPF	Rs.1.5 lakh
	ULIP
	NSC
	ELSS
	MF
Section 80D	Mediclaim	Rs.25,000 (general) and
		Rs.30,000 (senior citizen)
Section 80EE	Interest on housing loan	Up to Rs.1 lakh
Section 80E	Interest on higher education loan	–
Section 80TTA	Interest on savings account deposits	Rs.10,000
Section 80G	Donation	50% and 100% of donation

 

PF and ESIC:

The following table shows PF and ESIC rates

	Employee Contribution	Employer Contribution
ESIC	1.75% of wages	4.75% of wages
PF	12% of basic + dearness allowance + food concession	12% of basic + dearness allowance + food concession +
		retaining allowance (maximum of Rs.15,000 per month)

Companies and LLPs in India are required to comply with annual filings under the Companies Act, 2013 and Limited Liability Partnership Act, 2008.The filings with the ROC should be made once in a year or on the occurrence of specified events. We provide the ROC compliance calendar for regular and annual filings during the year 2021 as below:

 

Description	Form	*Due date	Period
An annual statement for submitting details of the business of the LLP and its partners. All registered LLPs should file the form within 60 days from close of the end of the financial year.	Form 11	30-May-21	FY 2020-21
	(Annual returns of an LLP)
Director KYC submission for DIN holders as on 31 March 2021. Every person who has a DIN allotted and the status of the DIN is  ‘Approved’.	DIR-3 KYC	30-Sep-21	FY 2020-21
To be filed in less than 15 days from the conclusion of AGM. Every company should intimate the ROC about the appointment of an auditor.	Form ADT-1	14-Oct-21	FY 2020-21
	(Appointment of auditor)
The form should be filed annually with the ROC. It is also known as the statement of accounts and solvency. Every LLP should submit the data of its profit or loss and balance sheet.	Form 8	30-Oct-21	FY 2020-21
	(Financial Reports of an LLP)
To be filed 30 days from the conclusion of AGM. Specified companies should file the financial statements with the ROC.	Form AOC-4	30-Oct-21	FY 2020-21
	(Filing of annual accounts)
To be filed within 60 days from the conclusion of AGM. Every company should file an annual return, furnishing details about the company.	MGT-7	29-Nov-21	FY 2020-21
	(Filing of annual returns)
Filing of resolutions with the ROC regarding Board Report and Annual Accounts. The details of the resolutions passed should be filed.	MGT-14	Within 30 days of the board meeting	Within 30 days of the board meeting
	(Filing of resolution with MCA)
All MSMEs should file a half-yearly return with the registrar for outstanding payments to Micro or Small Enterprises.	Form MSME		30-Apr-21
	(outstanding payments to MSME’s)	30 April 2021 and 31 October 2021	(For the period of  October’20 – March’21)
			31-Oct-21
			(For the period of  April’21 – September’21
	*The due dates mentioned are subject to change as and when notified by the concerned department.

 

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