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FSSAI, License

Food License or FSSAI was established to achieve three objectives:

  1. Framing an integrated Food Law
  2. Prioritizing Consumer Safety
  3. Harmonizing food standards with international regulations.

Every Food Business Operator (FBO) in India needs to be licensed or registered under the Food Safety Standards Act 2006. Under FSSAR, licensing is a two-tier system involving central and State Licensing. In this blog, we will be looking into the kind of business that requires FSSAI License.


Kind of Food Businesses that comes under central licensing:

  1. Dairy units including milk chilling units equipped to handle or process more than 50 thousand liters of liquid milk/day or 2500 MT of milk solid per annum.
  2. Vegetable oil processing units and units producing vegetable oil by the process of solvent extraction and refineries including oil expeller unit having installed capacity more than 2 MT per day.
  3. All slaughterhouses equipped to slaughter more than 50 large animals or 150 or more small animals including sheep and goats or 1000 or more poultry birds per day.
  4. Meat processing units equipped to handle or process more than 500 kg of meat per day or 150 MT per annum.
  5. All food processing units other than mentioned under point.1 to point.4 including relabellers and repackers having installed capacity more than 2 MT/day except grains, cereals, and pulses milling units.
  6. 100 % Export Oriented Units
  7. All Importers importing food items for commercial use.
  8. Retail chains operating in three or more states.
  9. Food catering services in establishments and units under Central government Agencies like Railways, Air and airport, Seaport, Defence etc.


Kind of Food Businesses that comes under State licensing:

License for commencing or carrying on the food business, which is not covered under central licensing shall be granted by the concerned State Licensing Authority.

  1. Dhabha.
  2. Restaurants
  3. Storage
  4. Wholesaler
  5. Retailer
  6. Distributor
  7. Supplier
  8. Canteen
  9. Club
  10. Transporter
  11. Hawker
  12. Marketer
  13. Food Processor

 

In conclusion, this means almost every Food Business Operator is required to get Food License. Wazzeer has helped a number of Food startups in all legal, accounting, and secretarial services, we would be very happy to help you. Just in case you want our expert advice, do let us know. 

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Acquisitions, Agreements

1. Acquisition of Shares:

 

Acquisitions may be via an acquisition of existing shares of the target, or by subscription to new shares of the target. 

 

 a. Transferability of Shares:

 

Depending upon the entity type, the eligibility and procedure of carrying out this process will change. For instance, maximum membership of private limited company is 200, and transferability of shares is governed by the AoA as guided by the Company Act, 2013. While acquiring shares of a private company, it is therefore advisable for the acquirer to ensure that the non-selling shareholders (if any) waive any rights they may have under the articles of association.

 

In case of a Public Limited Company, Shares are easily transferable. Any transfer of shares, whether of a private company or a public company, must comply with the procedure for transfer under its articles of association.

 

b. Squeeze out procedures:

 

Situations where there is already Contracts held by shareholders of the Transferee company, such sensitive situations guided by specific sections of Company Act, 2013.

  • Section 395 of the CA 1956 – Section 395 envisages a complete takeover or squeeze out without resort to court procedures. Governs when Contracts between shareholders.

 

  • Section 236 of the CA 2013 – Under the CA 2013, if a person or group of persons acquire 90% or more of the shares of a company, then such person(s) have a right to make an offer to buy out the minority shareholders at a price determined by a registered valuer in accordance with prescribed rules.
  • Scheme of the capital reduction under section 100 of the CA 1956 – Section 100 of the CA 1956 permits a company to reduce its share capital in any manner and prescribes the procedure to be followed for the same.
  • Section 186 of CA 2013 provides for certain limits on inter-corporate loans and investments.

 

2. SEBI Regulations

 

If the acquisition of an Indian listed company involves the issue of new equity shares or securities convertible into equity shares (“Specified Securities”) by the target to the acquirer, the provisions of Chapter VII (“Preferential Allotment Regulations”) contained in ICDR Regulations will apply (in addition to company law requirements mentioned above).

 

3. Takeover Code

 

If an acquisition is contemplated by way of issue of new shares, or the acquisition of existing shares or voting rights, of a listed company, to or by an acquirer, the provisions of the Takeover.

 

Merger and Acquisition are two business decisions that have to be securitized up by qualified Lawyer and Accountant. Starting from due diligence till contracts signing, ensuring that nothing is been hidden or executing things smoothly is a task. Wazzeer understands the requirements thoroughly and delivers a well-consulted end to end legal, accounting, and secretarial service to our clients, all you have to do is ->“Get your Wazzeer”

 

 

 

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Accounting, Start up Lessons, Startup Funding Paperworks

What does the CA say?

Maintain Chart of Accounts right from the early stage of the venture.

 

Is Chart of Accounts really important?

A company’s Chart of Accounts is a view of all Asset, Liability, Equity, Revenue, and Expense accounts included in the company’s General Ledger. The number of accounts included in the chart of accounts varies depending on the size of the company. Designing a COA is one of the first tasks that have to be performed when setting up a budgeting and its associated accounting and financial reporting systems.

 

The Chart of Accounts (COA) although appears to be just concerned with classifying and recording financial transactions, is critical for effective budget management, including tracking and reporting on budget execution.  A mistake in designing the Chart of Accounts could have a long-lasting impact on the ability of the system to provide required financial information for key decisions. Remember, COA is also the hub of any computerized accounting and reporting system.

 

How does maintaining Chart of Accounts benefit the firm?

  • The COA specifies how the financial transactions are recorded in a series of accounts that are required to be maintained to support the needs of various users/stakeholders.
  • The COA provides a coding structure for the classification and recording of relevant financial information within the financial management and reporting system.
  • The COA provides room for planning, controlling and reporting of budgetary allocations as well as internal management needs of budget units and/or cost centers.

 

How is Chart of Accounts designed?

COA can be designed by anyone who is aware of the nuances of accounting, but the difference that an experienced professional brings in is productivity and quality. It is a known fact that startups, most of them, lack the management bandwidth and expertise to carry out COA related works. 

The development and implementation of a COA should involve the following key steps:

  • The COA can only be properly configured after a comprehensive business needs analysis has been undertaken
  • The COA segments and the hierarchical levels within each segment should be defined.
  • The COA and its segments should use basic logic and account definition
  • Creating a global or a unified COA establishes a foundation for consistency in terminology and serves to eliminate redundant accounts
  • Define clear institutional, legal and procedural frameworks to prevent the COA structure from becoming fragmented.
  • For the COA to achieve its desired impact of facilitating improved budget management and financial reporting, all users should be adequately trained.
  • An effective change management strategy also needs to be developed to implement the new COA and associated reforms in the accounting and reporting system

 

Wazzeer Professional Network is built on qualified CAs, CSs, and Lawyers who work with startups in understanding and delivering various compliance works seamlessly. We would be happy to work with you getting this organized and compliant. Let’s connect -> “Get your Wazzeer”

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Federal Income Tax Returns Filing

In this blog, we will look into tax rules that affect every person who may have to file a federal income tax return in the US. It answers some basic questions:  Who should file for returns? And what forms to be used to file returns.

 

Who needs to file for returns?

 

If you are a U.S. citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent.

 

As a brief, there are three major categories:

  1. For Individual – Form 1040 / 1040EZ is required to be filed for 2018 by April 15.  For earlier years, 1040X has to be filed
  2. For Partnership firms – Form 1065 by March 15, 2018
  3. For Corporations – Form 1120 or 1120S by March 15, 2018 (for those fiscal ending Dec 31, 2017). Else it is 2 1/2 months from the date of the financial year ending.
  4. Filing of extensions for submitting the tax returns
      1. For Individuals – Form 4868
      2. For Partnership firms – Form 8736
      3. For S Corp – Form 7004

 

Standard criteria based on which you may choose the forms:

 

Form 1040EZ: This form may be filed if

 

  • Your filing status is single or married filing jointly
  • You claim no dependents
  • You don’t claim any adjustments to income
  • You don’t claim any credits other than the earned income credit
  • You, and your spouse if filing a joint return was under age 65 on January 1, 2018, and not blind at the end of 2017
  • Your taxable income is less than $100,000
  • You had only wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest wasn’t over $1,500
  • Your earned tips, if any, are included in boxes 5 and 7 of your Form W-2
  • You don’t owe any household employment taxes on wages you paid to a household employee
  • You’re not a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005
  • Advance payments of the premium tax credit weren’t made for you, your spouse, or any individual you enrolled in health insurance coverage for whom no one else is claiming the personal exemption

 

Form 1040A: This form may be filed if

 

  • Your income is only from wages, salaries, tips, interest, ordinary dividends, capital gain distributions, taxable scholarships and fellowship grants, pensions, annuities, IRAs, unemployment compensation, Alaska Permanent Fund dividends, and taxable social security or railroad retirement benefits
  • The only adjustments to income you can claim are the IRA deduction, the student loan interest deduction, and the educator expenses deduction
  • You don’t itemize deductions
  • Your taxable income is less than $100,000
  • The only tax credits you can claim are the credit for child and dependent care expenses, the credit for the elderly or the disabled, education credits, the retirement savings contributions credit, the child tax credit, the additional child tax credit, the earned income credit, and/or the premium tax credit, and
  • You didn’t have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option

 

Form 1040: This form may be filed if

 

  • Your taxable income is $100,000 or more
  • You have certain types of income, such as business or farm self-employment income; unreported tips; dividends on insurance policies that exceed the total of all net premiums you paid for the contract; or income received as a partner, a shareholder in an S corporation, or a beneficiary of an estate or trust
  • You itemize deductions or claim certain tax credits or adjustments to income, or
  • You owe household employment taxes

 

Form 1065: This form may be filed if

 

Form 1065 is an information return used to report the income, gains, losses, deductions, credits, and other information from the operation of a partnership. A partnership doesn’t pay tax on its income but passes through any profits or losses to its partners.

Partners must include partnership items on their tax or information returns. The term “partnership” includes a limited partnership, syndicate, group, pool, joint venture, or other unincorporated organization, through or by which any business, financial operation, or venture is carried on, that is not, within the meaning of the regulations under section 7701, a corporation, trust, estate, or sole proprietorship.

 

  • Partnerships with more than 100 partners (Schedules K-1)
  • You and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership and you must file Form 1065.
  • A domestic LLC with at least two members that do not file Form 8832 is classified as a partnership for federal income tax purposes
  • A religious or apostolic organization exempt from income tax under section 501(d) must file Form 1065
  • A qualifying syndicate, pool, joint venture, or similar organization that fails to be elected under section 761(a) that may be treated as a partnership for federal income tax purposes
  • An electing large partnership (as defined in section 775) must file Form 1065-B, U.S. Return of Income for Electing Large Partnerships.
  • A foreign partnership with effectively connected income (ECI) during its tax year
  • A foreign partnership had U.S. source income of $20,000 or less during its tax year
  • More than 1% of any partnership item of income, gain, loss, deduction, or credit was allocable in the aggregate to direct U.S. partners at any time during its tax year
  • A Foreign partnership is withholding foreign partnership as defined in Regulations section 1.1441-5T(c)(2)(i).
  • A Foreign partnership had U.S. partners at any time during its tax year
  • A Foreign partnership is withholding foreign partnership as defined in Regulations section 1.1441-5T(c)(2)(i).
  • If an entity with more than one owner was formed as an LLC under state law, it generally is treated as a partnership for federal income tax purposes and files Form 1065

 

Form 1120 and series: This form may be filed if

 

Form 1120 is used by U.S. Corporation to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation.

 

  • S corporation (section 1361) should file form 1120S
  • Unless exempt under section 501, all domestic corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income should file form 1120
  • Domestic corporations must file Form 1120, unless they are required, or elect to file a special return.
  • A domestic entity electing to be classified as an association taxable as a corporation must file Form 1120 unless it is required to or elects to file a special return
  • The LLC can file a Form 1120 only if it has filed Form 8832 to elect to be treated as an association taxable as a corporation.
  • A corporation (other than a corporation that is a subchapter T cooperative) that engages in farming should file form 1120
  • Subchapter T cooperative association (including a farmers’ cooperative) will file form 1120C
  • Foreign corporation (other than life or property and casualty insurance company filing Form 1120-L or Form 1120-PC) should file form 1120F
  • Foreign sales corporation (section 922) should file form 1120FSC
  • Condominium management, residential real estate management, or timeshare association that elects to be treated as a homeowners association under section 528 should file 1120H
  • Life insurance company (section 801) should file 1120L
  • Fund set up to pay for nuclear-decommissioning costs (section 468A) should file form 1120ND
  • Property and casualty insurance company (section 831) should file form 1120PC
  • Political organization (section 527) should file form 1120PL
  • Real estate investment trust (section 856) should file form 1120REIT
  • Regulated investment company (section 851) should file form 1120RIC
  • Settlement fund (section 468B) should file form 1120SF

 

Wazzeer professional Network is built on experts in this matter, we can get your Income Tax Returns filing done seamlessly on our platform for $40 per hour. To start the process -> “Get Your Wazzeer”

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License, Licenses

Ever thought of starting a Homestay business and placing it for rent on Airbnb? If yes, then this is a blog is for you. Homestays are gaining popularity among the businesses in unorganized sector all credits goes to the unique experiences which come along with it. In the top 50 emerging tourism destinations of India, homestays form 13 percent of the total accommodation. Building a hotel involves frequent investments; homestays, on the other hand, are created out of rooms which already exist within a property or an entire property in itself, hence involving nominal or no expenditure. Since travelers nowadays are on the lookout for an offbeat approach to learning more about a place or a destination, this concept seems both, lucrative and appealing at the same time. 


The Ministry of Tourism classified fully operational terms of Bed and Breakfast/ Homestay facilities as ‘Incredible India Bed and Breakfast/Homestay Establishments’. The idea behind this is to provide a clean and affordable place for foreigners and domestic tourists including an opportunity for foreign tourist to stay with an Indian family so as to experience Indian customs and traditions.


Incredible India Scheme of Bread and Breakfast regularizing Homestay License:

  1. Speaking of classification, Homestay Establishments is grouped as :
  • Gold
  • Silver

     While the government of Rajasthan only considers Gold and Silver, Kerala, for instance, has a Diamond category added to the homestay too. 

  1. Facilities and services provided will be checked by the Regional Classification Committee. 
  2. Once approved by Ministry of Tourism, will be duly publicized. A directory of such establishments shall be prepared. Short-term training courses in hospitality sector will also be patronized
  3. It is important to get a license that the owner of the homestay (along with family) shall reside in the same establishment
  4. Homestay Establishment is expected to maintain the required standard. Any serious faults will be reported to the Department of Tourism and the Department is free to take any action including cancellation of the classification.
  5. The Committee may recommend a category either higher or lower than the one which you are applied for. In case of category higher than the one you are applied, you will have to deposit the required fee for the recommended category. However, in case of a lower category, there will be no refund of the extra fee.
  6. Any changes in the facilities of the unit should be reported to the Ministry of Tourism, Government of India within 30 days.
  7. After this, a recognition certification will be given to the owner.



Who can apply for  Homestay License?

  1. Individuals or families who own a house of good quality in the state and can spare at least 2 rooms for tourist accommodation.
  2. The classification will be given only in those cases where the owner/promoter of the unit along with his/her family is physically residing in the same unit.
  3. A maximum number of rooms for offering to the tourists shall be limited to 5.
  4. At least one of the family members should be able to communicate in English.
  5. The houses in areas of tourism importance will get priority.

 


Application Form:

Application must be collected from the State Tourism Department Head office or from other concerned district offices. The application for Homestay License must be sent along with the requisite fee to the State Ministry of Tourism. Applications can even be sent to the district level. This makes easier for the establishment in small towns and rural areas. 

 


Mandatory requirements at the time of submitting application form:

Along with the duly filled form, you would require:

  1. Proof of ownership/lease of the building.
  2. Location plan showing access to the building from the major roads.
  3. Plan and elevation of the existing building.
  4. One hard copy and one soft copy of the photographs of the building including the interiors.
  5. Police Clearance Certificate from the Local Station House Officer

After submission of application form, the representatives of the district government come in for a surprise inspection, following which a homestay is recognized and rated as per facility available. The process of acquiring an electrical connection is the same as that of a home, so it varies from state to state. The whole process might take a couple of years. 

 


Application format for an establishment of homestay:

  1. Name of the Homestay Establishment.
  2. Category applied for
  3. Name and address of the promoters/owners with a note on their background
  4. Complete postal address of the Homestay Establishment
  5. Details of the Homestay Establishment.
  6. Photographs of the building including interiors showing types of facilities available, bathroom, living room, bedroom, parking etc.
  7. Details of payment of application fee
  8. Checklist details as per Annexure II
  9. Consent of acceptance of the regulatory conditions (please enclose a copy of the prescribed undertaking as per Annexure III duly signed by the owner of the establishment)

 

Conclusion:

Still, in its nascent stage in India, homestays are gradually increasing their presence to meet the existing demand. To list a homestay establishment on any directory, offline or online, procuring Homestay License would be necessary.

We at Wazzeer are budding entrepreneurs just like you with a bigger vision to transform the industry. Wazzeer simplifies things for you. If you have a business plan and wish to take a leap come on board with us. Get to know about the nuances related to incorporation and starting your business in a hassle-free way.

 

Our experts are right here to align your ideas with reality, to kick-start the procedure to acquire  Homestay License, Let’s Connect -> “Get your Wazzeer”

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Business Formation, NGO Registration

On an average, the time consumed to register societies is around 30 days’, which is not an affordable thing for entrepreneurs. With the given regulatory environment, in this blog, we will unleash strategies you can utilize to speed up the registration to kick-start early.

 

Step 1: Get clarity if your Idea qualifies to be charitable

 

Definition of Charitable purposes – Business ideas with an objective of either:

  • Relief of poverty,
  • Education,
  • Advancement of religion and
  • other purposes beneficial to the community not coming under any of the preceding heads.

 

Step 2: Meet the team size criteria

 

The founding team should consist a minimum of 7 members. Also, ensure that the members have following documents in place:

  • Valid IP Proofs
  • Valid Address Proofs

 

Step 3: Name the society such that it can be approved by registrar

 

Before you get fixated on a name, we advise you to check is the name can be approved by the registrar. Wondering how? Well, these are the criteria for society name selection:

  • The name should be unique and not similar to already registered Societies.
  • The name must not suggest patronage of the government of India.

 

Step 4: Keep Office Address related documents in place

There have been cases were registration process got delayed by weeks, because of property related documents. We advise you to have these documents in place:

 

  • Electricity or Water bill
  • In case you own the place, then keep property papers intact
  • Landlord NOC

 

Step 5: Get Memorandum of Association (MoA) drafted by experienced professionals

 

MoA is a legal document that constitutes details of:

  • The name of the society
  • The objective of the society
  • Details of governors, council, directors, committee, or other governing bodies.

MoA is a document that will be submitted for many business-related registrations in future. Also, this document can be accessed by the public. For MoA to meet the quality benchmark, getting the same drafted by a qualified professional is advised.

 

Step 6: Draft Rules and Regulations governing society compatible with MoA

 

This document will address:

  • Details of membership and subscription
  • Planning for meetings
  • Criteria for governing bodies appointment
  • Planning auditor appointment
  • Dispute resolution strategy
  • Dissolution strategy

Note, Along with MoA, submit a copy of rules and regulations of the society certified by at least three governing bodies. If you miss on this, you might have to face a delay.

 

Step 7: Keep required documents in tact

 

List of documents apart from MoA, Rules & Regulation, office address details and member details,  there are a few documents that will be required for registration:

  • Request letter signed by founding members addressing Registrar requesting registration.
  • Proceedings of the first meeting (general body meeting conducted to set the rules and regulations)
  • Declaration by the president of the society
  • A sworn affidavit from the President or Secretary, declaring the relationship between the subscribers.

 

Step 8: Be available to pay fees on time.

 

Once you submit all the documents as discussed in above steps, you will have to pay a fee of INR 50 or such smaller fees from time to time.

Follow the steps listed above diligently, and if the registrar is satisfied he or she would approve the registration of your society.

 

As a closing note, a Couple of questions that founders of societies generally tend to ask:

 

Q1. Is it mandatory to register a society?

 

No, but the advantages of registration is –

  • NGO is recognized only after registration
  • Low risk
  • Limited liability for members
  • Society can be vested upon,
  • Society and members can sue anyone,
  • Society can purchase property in its name,
  • Exemption from income tax,
  • Considered as separate entity from members,

 

Q2. How can a society be dissolved?

 

A Society can be dissolved by:

  • its members,
  • the Registrar,
  • the Court or
  • by the Government.

 

Q3. Under what circumstances can a registrar dissolve a society?

 

 The registrar of societies (as per the respective state acts) can dissolve a society. These circumstances may be:

  • The society has done unlawful activities
  • According to the memorandum of association governing the society:
  • Society’s object clause has not been fulfilled
  • Office of the society has ceased to be in state of registration
  • Members of the society are below the required number of seven
  • Society has ceased to function for a particular period of time
  • Society has been declared insolvent(not able to pay its liabilities).
  • Society’s activities are against the Governmental or the state policy
  • Society has become insolvent
  • Society has contravened any law or the provisions of the Societies Registration Act 1860

 

Q4. Is it necessary that the society maintains its books?

 

Yes, it is necessary that proper books of account with respect to:

  • All sums of money received and expended by the society and the matters 
  • Respect of which the receipt and expenditure takes place;
  • All sales and purchases of goods by the society; and
  • The assets and liabilities of the society

 

The charitable organization can maintain books of accounts from the following three methods of accounting:         

  • Cash Basis of Accounting
  • Accrual Basis of accounting
  • Hybrid/Mixed basis of Accounting

 

Q5. Should Balance sheet and annual list of governing body be filed with registrar?

 

Yes, Balance sheet and annual list of governing body after dedicated auditing have to be filed with the registrar by 14th day succeeding the day on which the annual general meeting of a society is held.

 

Q6. How can Wazzeer help in this matter?

 

We at Wazzeer are young entrepreneurs just like you with a bigger vision to transform the industry, precisely speaking we things simple.

You would get access to a pool of professionals who have worked in this field that have a minimum of 5 years’ experience.

We provide a clear quotation, no hidden charges. As we kick start, you see the updates real time. The ball is on your court all the time. So, let’s connect -> “Get your Wazzeer”

 

 

 

 

 

 

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ITR Filing for Freelancers, TAXATION

Filing of Income Tax returns is a mandatory duty along with the payment of Income Tax to the Government of India. It is important to understand that Income Tax return is a document which is filed by you stating your Total Income in a Financial Year through various sources of income i.e Salary, business, house property, etc. It contains the details of tax paid and any refunds that have to be given by the government. 


Financial Year is the year of your income, and Assessment Year is the year next to it in which the tax is due. Eg – Financial Year 2017-18, Assessment Year 2018-19. The deadline has been kept to furnish these details after four months from the end of the financial year so that taxpayers have sufficient time to collect the data for the whole year and report in time to the government.


Many people tend to believe that not declaring income or maybe understating income is worth because it is saving you a few bucks. This leads to tax evasion for example not declaring interest received on bank fixed deposits or accepting income in cash and not route it through the official system.


A very blurred perception among several individuals is that filing of returns is not important because eventually, the government’s main objective is to ensure that its tax kitty is getting the revenue due to it. This misconception needs to be cleared. Know that it is our constitutional duty to file tax returns when you are required to do so. Your job is not just ending at paying taxes; filing returns is equally important.


So when does it become essential to file returns?


It is very important to file returns when your income as a freelancer or a blogger is exceeding INR 2,50,000 annually. This would be your Total Taxable income post deductions, the details of which we would be discussing below.


Let’s get started with the step-by-step understanding of how will you be calculating your gross income, deductions, considering the tax slabs, forms, deadlines– keeping in mind your respective profession.


Forms for ITR filings

As a Freelancer/ Blogger, you can go ahead with Form ITR 4S while filing the tax returns. Your account book needs audit according to the ITR laws (Section 44AB) if your income is more than Rs 1 crore. In this case, you must file the ITR before 31st of September.


When your turnover is less than 1 crore no audit is required, and the last date for submission of ITR is July 31st. The best part is Freelancers can also use the Presumptive Taxation method, and escape the tedious task of account book-keeping!


When the earning is less than Rs 50 Lakhs during the given financial year (under the Section 44AD, and the section 44AE of the Income Tax Act) the ITR Form 4S should be used in such a case.


Now, what do you mean by Presumptive Taxation Scheme?


In this case, the income is calculated on the basis of assumption rather than factual basis. As per as the new section 44ADA, the records of the expenses need to be maintained. Any freelancer, filing presumptive income tax return must remain consistent for the next 5 years otherwise; one will not be able to obtain the benefits from the scheme.Bloggers, self-employed professionals and freelancers like you should definitely go for presumptive income tax as it is easy and has numerous benefits.


How are you saving time by ITR 4S Filing?

The introduction of section 44AD of the income tax act has come as a breath of relief for the taxpayers. It gives professionals like you the liberty from complex ITR form 4 and escapes long trails of scrutiny. It is saving your time in manifold ways:


  • No need of getting your account books audited
  • No need of filling in a longer form
  • No need to maintain account books
  • Just fall into the tax bracket and give the tax on the lump sum basis. The income tax department is not going to check the margin and expenses. It trusts you!

Not just these but another benefit of filing tax through Presumptive Tax Scheme is that there is a minimum rate of estimation of income. Hence the actual rate of profit needs not be calculated and the minimum of 8% can be used as profit rate. Thus total revenue will help to calculate presumptive profit. However, if you think that you earn much more than the 8% of total revenue, then you can easily increase the rate for yourself.

Will you be requiring any professional to go about this?

Online tax-return filing has drastically reduced the time taken for a refund of excess taxes. In the earlier days, one had to wait for years to receive tax refunds. Now, the good news is – the Income Tax Department now processes and send refunds in a short time of 7-10 days as its latest technology upgrade of electronic and Aadhaar-based ITR verification has begun on a successful note.


To claim a refund faster, you must ensure that you file your taxes before the deadline of 31st July. If you file taxes after the deadline, the refund can be extended by many months. In order to avoid such delays, hassle and confusion you can count on e-filing your ITR with the help of handpicked professionals from Wazzeer. We would not just be helping you out with quicker return-filing but also keep a track of all the glitches that might come with processing your timely refund.


Since figuring out plenty number of forms for ITR filing becomes a daunting task, let Wazzeer aid professionals like you, to go about this smoothly. Let’s Connect!

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Contracts and Agreements

 

There are tons of contracts that any startup would come across in its day to day life, to remind a few – Employees contract, Vendor Agreement, Logistics level contract, Service level contracts etc. Alarmingly 2017 has seen a massive increase in startups utilizing the opportunity of free contracts template, and a majority of these contracts are invalid and have opened up doors for legal disputes. Founders and decision makers of startups, areas of contractual control should be a focus for you this year. Why? Well the room for corporate governance has been boundless and the government is not going to back off, with this in effect to protect company and shareholder interests, companies need to be proactive in assessing their contract risks. With that as the abstract, let’s see How to manage contracts risk in a startup. 

 

First and foremost, you should have a clear understanding of the contract in depth and get it right while highlighting what could go wrong as a risk management initiative. 

 

Secondly, never treat all contracts alike, the reason being objective of each contract would be different. For instance, a contract drafted with a purpose to streamline inventory management in logistics would be much different from employee contract. 

 

Thirdly, Majority of times contract related problems arise from lack of transparency between parties, types of contract risks that can deduce the value of a contract:

 

  • Poor or perverse incentives
  • Bad planning
  • Bad Demand management
  • Ill-informed buying
  • Deliberate Contract Manipulation
  • Embedded options
  • Elaborate pricing structure
  • Miscommunication
  • Poorly managed knowledge transfer

 

In a recent study, by Contract Management Benchmark Report cited “Ineffective control and management of supplier contracts cost businesses $153B per year in missed savings opportunities and increased risks. With Globalization and the trend to outsource non-core business processes have also contributed to increasing use and importance of contracts, the number and complexity of contracts have increased, so has the volume of risks associated with those contracts.

 

Ways by which Contract Risks can be managed:

 

  1. At Contract Drafting Stage


              • Establish the scope of the contract review
              • Review and validate the universe of vendor relationships
              • Agree on objectives mutually
              • Understand Expectations
              • Developing contract review procedure
              • Establish a legally enforceable format
  2. At Contract Review Stage


              • Review of regulatory and business risk factors
              • Third party or contract risk profile
              • Areas of focus for monitoring procedures
              • Contract assessment reviews
              • Contract financial visibility assessment
  3. At Contract Improvement Stage


              • Implementation of changes in legal viability format
              • Highlight and leverage embedded options
              • Highlight for improvements

    At Post-Contract monitoring Stage


              • Compliance verification and validation procedures
              • Data extraction and Analysis
              • Trend Analysis
              • Industry Analysis
  4. At Communication or delivery stage


              • Contract Assessment reviews and reports
              • Coverage of client expectation
              • Compliance and monetary findings
              • Process and control improvement recommendation
              • Revision of contractual terms, termination of the relationship, contract enhancements etc.


We at Wazzeer have always delivered reliable consultation at all end to end services that business would require in its entire lifetime. We would be excited to help you, so let’s connect!

 

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Business Formation, LLP

What you know is right, to incorporate an LLP you need two or more persons with a view to becoming only subscribers of profit that the business would make. But, before you become  partner in LLP things you should consider knowing is covered in this blog. Remember, to register an LLP you would need a professional, and having a qualified professional on your side while incorporating is the best you could do, we at Wazzeer are experts in this matter.


Who can become a partner in an LLP?

Any individual or corporate body can become a partner of LLP, provided:

  1. Individual with sound mind as per the Court of competent jurisdiction
  2. Individual is not adjunct under any grounds


How many partners can an LLP consist of?


Minimum of 2 partners and maximum could be any number. If at any time the number of partners of an LLP is reduced below two, yet the LLP continues to carry out business for than 6 months, the partner who runs business during that period is liable for all LLP activities.

 

If you think this is so simple, the true game changer is coming up: Designated Partner Vs Partner

 

Every LLP should consist of at least two designated partners who are individuals and at least one of them should be Indian resident. Other partners are more like shareholders.

 

The Designated partners:

  • Are like directors of the firm
  • Are responsible for the LLP being fully compliant
  • Are liable to all penalties imposed on LLP
  • Are the authority who executes, manages, and decides for the LLP

 

To be a Designated Partner: This would be carried out in accordance with LLP Agreement

  • As a partner, you should give prior consent to LLP
  • File with the registrar the particulars of every individual within 30 days of appointment
  • Obtain Designated Partner Identification Number (DPIN) now called dIn from the central government.
  • If the Body corporate wishes to be a Body corporate it has to appoint a nominee to act as a Designated Partner on behalf of the Body corporate.

 

Note: In case Foreign Body Corporate or Foreigner is involved in an LLP, the funds transferred by this foreign source are allowed in only those sectors where 100% FDI is allowed.

Remember, the LLP Agreement is the rulebook and the game has to be played in accordance with this holy rule book.

Wazzeer has helped over hundreds of LLPs starting from incorporation till fundraising compliance, we would be very happy to serve you. Let’s connect to build a success story.

 

 

 

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Copyright, IP

Copyright is an asset celebrated by Copyright Certificate holders, this intellectual property protection right protects original work of authorship including software, books, articles, photographs and other creative works. As the copyright is a legal evidence and public notice of ownership, if this intellectual property is infringed, the remedies for copyright infringement will be covered briefly in this blog.

Note: without any agreement, no one can use any such property.

 

Civil Remedies for Copyright Infringement:

 

The civil remedies for copyright infringement are covered under Section 55 of the Copyright Act of 1957. The different civil remedies available are:

 

1)    Interlocutory Injunctions

 

The most important remedy is the grant of an interlocutory injunction.  In most case, the application filled is for interlocutory relief and the matter rarely goes beyond the interlocutory stage. There are three requirements for there to be a grant of interlocutory injunction – Firstly, a prima facie case. Secondly, there needs to be a balance of convenience. Finally, there needs to be an irreparable injury.

 

2)    Pecuniary Remedies

 

Copyright owners can also seek three pecuniary remedies under Section 55 and 58 of the Copyright Act of 1957. First, an account of profits which lets the owner seek the sum of money made equal to the profit made through unlawful conduct. Second, compensatory damages which let the copyright owner seek the damages he suffered due to the infringement. Third, conversion damages which are assessed according to the value of the article.

 

3)    Anton Pillar Orders

 

The Anton pillar order gets its name from the holding in Anton Pillar AG V. Manufacturing Processes. The following elements are present in an Anton Pillar Order – First, an injunction restraining the defendant from destroying or infringing goods. Second, an order permitting the plaintiff’s lawyer to search the defendant’s premises and take goods into their safe custody. Third, an order that the defendant is directed to disclose the names and addresses of suppliers and consumers.

 

4)    Mareva Injunction

 

The Mareva injunction comes into play when the court believes that the defendant is trying to delay or obstruct the execution of any decree being passed against him. The court has the power to direct him to place whole or any part of his property under the court’s disposal as may be sufficient to satisfy the decree. This is provided in Order XXXVIII, Rule 5 of The Civil Procedure Code, 1908.

 

5)    Norwich Pharmacal Order

 

The Norwich Pharmacal Order is usually passed when information needs to be discovered by a third party.

 

Criminal Remedies:

 

Under the Copyright Act, 1957 the following remedies are provided for infringement:

 

  1. Imprisonment up to 3 years but, not less than 6 months
  2. Fine which may not be less than 50,000 but, may extend up to 2,00,000
  3. Search and seizure of infringing goods
  4. Delivery of infringing goods to the copyright owner



Good to have factors that Wazzeer brings in while handling cases like this are: accessibility to right professionals, clarity in pricing, and simplicity in delivery. We call this smart way to run a business.  We would be happy to help you, let’s connect -> “Get your Wazzeer”


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