OPC Annual Filing 2023

OPC Annual Filing 2023: Key Summary

q  Define One Person Company:

Sec 2(62) "One Person Company" means a company which has only one person as a member. 

For OPC: Return Filing Provisions & AGM

q  Section 137 of the Companies Act, 2013

One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year. 

q  AGM not Applicable for OPC: Section 96

(1) Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next.

q  OPC Annual Filings – Timeline and Key points:

One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year.  (Section 137 of the CA 2013).

§  AGM not Applicable for OPC: (Section 96.)

§  A person can be member in only one OPC.

§  The following 2 E - forms to be filed for Annual ROC filing is:

                                      i.      MGT-7 - Annual return

                                    ii.      AOC- 4 - Financial Statements, Balance Sheet & P&L Account

§  Due date for Annual Financial Statements (AOC-4): The due date for Annual Filing is 27.09.2023 (if FY ended on 31.03.2023)

§  Due date for Annual Return (MGT-7A): OPC does not require to hold AGM, yet the due date for filing Form MGT 7 shall be 60 days from the completion of the 6 months from the end of financial year, that means due date will be 60^th day from 27.09.2023.

Form MGT-7A is the form prescribed for Annual Return of One Person Company and Small companies. This form is applicable in respect of Annual Return for the F.Y. 2021-22 and onwards of OPC as defined under Section 2(62) of Companies Act, 2013, and small companies.

§  Penalty for non - submission with in due timeline: 

In case a return has not been filed, a Penalty (additional fees) will be levied from the due date (27.09.2023 – in case of AOC-4) of INR 100/- per day for each day for which default continue.   

§  DIR - 3 KYC Compliance: 

It is mandatory compliance for DIN / DPIN holders.

a.       E- Form DIR-3 KYC is to be filed by an individual who holds DIN / DPIN and is filing his KYC details for the first time or by the DIN holder who has already filed his KYC once in e-form DIR-3 KYC but wants to update his details.

b.      Web service DIR-3-KYC-WEB is to be used by the DIN / DPIN holder who has submitted DIR-3 KYC eform in the previous financial year and no update is required in his details.

Due date for filing the KYC form is 30th September, 2023. Penalty is 5000 per DIN / DPIN if not filed within timeline.

For further query, please connect at cslalitrajput@gmail.com

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Taxation Rules for Leave Encashment – Brief Overview

Taxation Rules for Leave Encashment – Brief Overview

Leave encashment is a process in which an employee receives monetary compensation in exchange for unused or accumulated leave days. In many organizations, employees are entitled to a certain number of paid leave days per year, which can be taken for various reasons such as vacation, personal or family emergencies, or illness.

Leave encashment is often provided as a benefit to employees as it allows them to receive financial compensation for leave days they did not utilize. It can be particularly beneficial for employees who are unable to take their leaves due to work commitments or personal circumstances.

Leave Encashment is the mechanism by which your unused leaves can turn into additional income and allows employees to receive compensation for their accumulated unutilized leave balance.

Different types of leaves typically available to employees:

·         Casual Leave

·         Earned Leave Or Privilege Leave

·         Medical Leave

·         Holiday Leave

·         Maternity Leave etc.

Taxation of Leave Encashment (before amendment):

Sl.	Particulars of Leave Encashment	Taxability
1	Received During Service	The entire amount is considered taxable and forms part of their 'Income from Salary.' *please note that tax benefits can be claimed. (section 89 and Form 10E under IT Act 1961)
2	Received at the time of retirement or resignation:	For Govt. Employees: fully tax-exempt. For Non-Govt. Employees: partly exempt and partly taxable. (Follow Section 10(10AA)(ii))
3	Legal Heir of a Deceased Employee:	fully tax-exempt

 

Latest Update by CBDT:

Central Board of Direct Taxes (CBDT) raises tax exemption on leave encashment for non-govt salaried employees to ₹25 lakh. The direct tax authority said that the relief applies to the period of earned leave in the credit of the employee at the time of retirement whether on superannuation or otherwise. It is effective from 1 April, 2023.

The total tax-exempt amount under a section in the Income Tax Act dealing with leave encashment of salaried private sector employees shall not exceed the limit of Rs. 25 lakh.

In the case of government employees, the entire leave encashment amount received is tax exempt. In the case of private sector employees, the benefit is subject the conditions listed under section 10 of the Income Tax Act, which deals with incomes exempt from taxation.

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

RBI Press Note 3 Format _ Draft

RBI Press Note 3 Draft Format 

FOREIGN DIRECT INVESTMENT (FC GPR / FC TRS / Downstream Investment)

Date:

............ BANK LTD.

……………………….

 

Dear Sir/ Madam,

 

Ref: Investment in (Name of Indian Company) for ________(number of shares) shares by remitting FCY amount ________(Remitting FCY Amount)

We confirm that this investment of FCY __ is not from an entity of a country, which shares land border with India or the Significant Beneficial Owner (jointly or severely) of an investment into India who is situated in or is a citizen of any such country (Pakistan, Bangladesh, Afghanistan, Nepal, Bhutan, Myanmar, and China.  China includes Hong Kong and Macau).

Herewith we confirm we are in compliance to Press Note No. 3(2020 Series) dated 17/04/2020

We are hereby sharing the shareholding pattern of our company for your reference (optional)

Investor category	Investor country	Percentage holding as of ___ (date) – prior to remittance

   

Yours Faithfully                                                                       Yours Faithfully          

                                               

 

 

Authorised Signatory                                                           Authorised Signatory          

Name:-                                                                                   Name:-

Designation:-                                                                        Designation:-

Email id :-                                                                              Email id :-

Contact number:-                                                                  Contact number:-                 

(Investor)                                                                              (Investee Company)                                             

For any query please connect @ 9625483520 / cslalitrajput@gmail.com 

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Board Resolution for Change in GST Address - Draft

Extracts of the minutes of the ……….. (no. of meeting) meeting of the board of the directors of ………………………. PRIVATE LIMITED (the Company) held on ………(DAY), ……………….. (Date) at …….. (Time) at the registered of the Company at ………………………………………. 

Board Resolution for Change in GST Address

“RESOLVED THAT pursuant to the applicable provisions of GST Act, 2017 and other applicable rules and regulations as amended from time to time, the consent of the Board of Directors of the Company be and is hereby accorded to make necessary amendment in the core field with respect to the change of address from ………………… to …………………… against GSTIN ……………………. at GST Portal.

RESOLVED THAT the Board do hereby appoint Shri …………….. (DIN …………), being the Directors of the company as Authorised Signatory for enrolment of the Company on the Goods and Service Tax (GST) System Portal and to sign and submit the necessary returns / documets electronically and/or physically and to make applications, communications, representations, modifications or alterations on behalf of the Company before the Central GST and/or the concerned State GST authorities as and when required.”

FURTHER RESOLVED THAT Shri …………… (DIN ………….), being the Directors of the company be and is hereby authorized to represent the Company and to take necessary actions on all good s and service tax related issues including but not limited to presenting documents/records etc., on behalf of the Company liaising / representing  for  registration of the Company and also to make any alterations, additions,  corrections,   to the  documents, papers,  forms, etc.,  filed with  service  tax  authorities as and  when required.

FURTHER RESOLVED THAT Shri ……………..  (DIN …………..), being the Directors of the company be and is hereby authorized on behalf of the Company to sign the returns, documents, letters, correspondences etc. and to represent on behalf of the Company, for assessments, appeals or otherwise before the goods and service tax authorities as and when required.

Certified True Copy 

For ……………………………..

 

(Sign) ____________

Name:

(DIN)

(Address)

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

EPF Scheme / Investment – Top 10 Key Updates - Part 1

 EPF Scheme / Investment – Top 10 Key Updates - Part 1

EPF is the main scheme, under which retirement benefits are accumulated, launched under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and which is managed under the aegis of Employees' Provident Fund Organisation (EPFO).

1.      Applicability: EPF covers every establishment in which 20 or more people are employed and certain organisations are covered, subject to certain conditions and exemptions even if they employ less than 20 persons each.

2.      Under EPF scheme, an employee has to pay a certain contribution towards the scheme and an equal contribution is paid by the employer.

3.      Contribution paid by the employer is 12 per cent of basic wages plus dearness allowance plus retaining allowance. An equal contribution is payable by the employee also.

4.      For most employees of the private sector, it's the basic salary on which the contribution is calculated.

5.      The employee can voluntarily pay higher contribution above the statutory rate of 12 percent of basic pay. This is called contribution towards Voluntary Provident Fund (VPF) which is accounted for separately.

6.      The Interest in EPF is calculated on the basis of monthly running balance.

7.      Universal Account Number (UAN) is allotted by EPFO which acts as an umbrella for the multiple Member IDs allotted to an individual by different establishments.

8.      Currently, 8.50 percent interest is being paid on EPF investments.

9.      If no withdrawals from your PF account have been made prior to retirement, you will be eligible for a pension (EPS-Pension). You will get a monthly pension as part of EPFO's EPS (Employee Pension Scheme).

10.  The government has notified the amendment in EPF scheme rules regarding withdrawal of funds from the EPF account to deal with coronavirus-related financial exigencies. The government had allowed employees to withdraw from their provident fund account in case they needed emergency funds due to financial stress caused by the covid-19 pandemic. EPF member can withdraw up to 75% of his/her provident fund balance or three months’ basic wages plus dearness allowance, whichever is lower.

 

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

OPC Annual Filing 2022: Compliances & Due Dates

OPC Annual Filing 2022: Compliances & Due Dates

q  Define One Person Company:

Sec 2(62) "One Person Company" means a company which has only one person as a member. 

For OPC: Return Filing Provisions & AGM

q  Section 137 of the Companies Act, 2013

One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year. 

q  AGM not Applicable for OPC: Section 96

(1) Every company other than a One Person Company shall in each year hold in addition to any other meetings, a general meeting as its annual general meeting and shall specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between the date of one annual general meeting of a company and that of the next.

q  OPC Annual Filings – Timeline and Key points:

One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty (180) days from the closure of the financial year.  (Section 137 of the CA 2013).

§  AGM not Applicable for OPC: (Section 96.)

§  A person can be member in only one OPC.

§  The following 2 E - forms to be filed for Annual ROC filing is:

                                      i.      MGT-7 - Annual return

                                    ii.      AOC- 4 - Financial Statements, Balance Sheet & P&L Account

§  Due date for Annual Financial Statements (AOC-4): The due date for Annual Filing is 27.09.2022 (if FY ended on 31.03.2022)

§  Due date for Annual Return (MGT-7A): OPC does not require to hold AGM, yet the due date for filing Form MGT 7 shall be 60 days from the completion of the 6 months from the end of financial year, that means due date will be 60^th day from 27.09.2022.

Form MGT-7A is the form prescribed for Annual Return of One Person Company and Small companies. This form is applicable in respect of Annual Return for the F.Y. 2021-22 and onwards of OPC as defined under Section 2(62) of Companies Act, 2013, and small companies.

§  Penalty for non - submission with in due timeline: 

In case a return has not been filed, a Penalty (additional fees) will be levied from the due date (27.09.2022) of INR 100/- per day for each day for which default continue.   

For further query, please connect at +91 9625483520 / cslalitrajput@gmail.com

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

MCA Forms revised - MGT-7A & CSR 1 on 20.09.2022

MCA Forms MGT-7A & CSR 1 revised  on 20.09.2022

Ministry of Corporate Affairs on 20^th September, 2022 has revised the following forms:

1.      MGT-7A: Form for filing annual return by OPCs and Small company.         

2.      CSR-1: Registration of Entities for undertaking CSR Activities.

You are hereby requested to download the latest versions of the Forms (MFT – 7A and CSR -1) before filings.

Download the forms from: Click Here

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.