Suman Jain & Associates

Khekada, Baghpat, Uttar Pradesh

We are a leading name in the field of offering Company Law Consultancy Services. With Companies functioning in India governed by Companies Act, 2013, each company needs to get registered with Registrar of Companies (ROC) and file necessary documents for different statutory requirements.

Mainly, Indian companies are of two types

• Where maximum numbers of members are 50
• It prohibits any invitation to public to subscribe shares/debentures
• Restrict right to transfer its shares

Public Limited Company

• Invite public to subscribe shares or debentures
• No limit on maximum members

Formation of Private/ Public Limited companyThe process that involves formation of Private/ Public Limited company include drafting of memorandum & article of association of companies and converting a Private Company into Public company and Public Ltd. into a Private Ltd. The other steps that are part of formation include Changing name of company, Change of registered office, Alteration of main object of company and inclusion of new business in memorandum of company, Statutory meeting & report, Appointment of directors and their remuneration, Holding & subsidiary company, Inter corporate investments; Amalgamation, merger and acquisition of companies; Payment of dividend by companies Further, the Company Law consultancy services offered are designed to serve the demands of all big and small type of companies regardless of size who are regulated by Companies Acts 2013. Other than this, the Company Law Matters Consultancy service offered takes care of company’s legal compliance.

Here, our team of experts assists firms to –

• Interpret and comply with rules and regulations
• Smoothly continue to operate in chosen sectors

Some of the sections of Companies Act where we hold expertise in providing guidance/assistance/interpretation to Company Law include: Company formation –

• Company secretarial matters like necessary companies House filings
• Accounting matters like statutory disclosures, deadlines and exemptions
• Matters affecting share capital and distributions

Statutory Audit –

• Statutory provisions that relate to different meetings like Statutory Meetings, Board Meetings
• Seeking Licenses and Approvals for start-up
• Other different provisions as applicable to Company

We are a leading name in the field of offering Company Law Consultancy Services. With Companies functioning in India governed by Companies Act, 2013, each company needs to get registered with Registrar of Companies (ROC) and file necessary documents for different statutory requirements.

Mainly, Indian companies are of two types –

Private Limited Company :

• Where maximum numbers of members are 50
• It prohibits any invitation to public to subscribe shares/debentures
• Restrict right to transfer its shares

Public Limited Company :

• Invite public to subscribe shares or debentures
• No limit on maximum members

Formation of Private/ Public Limited company

The process that involves formation of Private/ Public Limited company include drafting of memorandum & article of association of companies and converting a Private Company into Public company and Public Ltd. into a Private Ltd. The other steps that are part of formation include Changing name of company, Change of registered office, Alteration of main object of company and inclusion of new business in memorandum of company, Statutory meeting & report, Appointment of directors and their remuneration, Holding & subsidiary company, Inter corporate investments; Amalgamation, merger and acquisition of companies; Payment of dividend by companies. 

Further, the Company Law consultancy services offered are designed to serve the demands of all big and small type of companies regardless of size who are regulated by Companies Acts 2013. Other than this, the Company Law Matters Consultancy service offered takes care of company’s legal compliance.

Here, our team of experts assists firms to :

• Interpret and comply with rules and regulations
• Smoothly continue to operate in chosen sectors

Some of the sections of Companies Act where we hold expertise in providing guidance/assistance/interpretation to Company Law include :

Company formation :

• Company secretarial matters like necessary companies House filings
• Accounting matters like statutory disclosures, deadlines and exemptions
• Matters affecting share capital and distributions

Statutory Audit :

• Statutory provisions that relate to different meetings like Statutory Meetings, Board Meetings
• Seeking Licenses and Approvals for start-up
• Other different provisions as applicable to Company

As governments around the world look to raise additional revenues to plug shortfalls, many governments have shifted away from corporate, income, and payroll taxes. Instead, they’re raising revenue through ‘indirect taxes’, such as value added tax (VAT), goods and services tax (GST), sales and local taxes,  customs and excise duties, and so on. Proof of this trend can be seen with the introduction of GST in Malaysia in 2015, as well as the planned introduction of GST in India in 2017 and VAT in the Gulf States.
The introduction of new indirect tax regimes and changes to existing regimes can create significant challenges for most business. Though certain indirect taxes are not a bottom line cost for many clients, the compliance requirements can be complex and there can be an impact on cash flow. Our Indirect Tax Services team has deep knowledge about indirect taxes in the 162 countries and territories in our global organisation. Our Indirect Tax team meets regularly and our corporate culture of collaboration means we bring our collective knowledge to all engagements.
Our tax professionals can help you manage your indirect tax compliance burden and we can help you put strategies in place to ensure an efficient approach to the varied challenges created by indirect taxes. We provide an integrated approach to help you manage your indirect tax issues across jurisdictions. And, you get hands-on involvement of our most experienced professionals – people who take pride in exceptional client service.

Our services related to indirect taxes include:

• Providing advice for minimising VAT/GST cash flow issues and the chance of being subject to interest or penalties for non-compliance
• Developing and implementing appropriate indirect tax strategies
• Providing advice about the implications of indirect taxes on real estate transactions
• Assisting with the implementation of efficient processes to avoid customs duty costs and cash flow issues
• Training staff on specific indirect tax-related issues
• Preparing ‘bad debt’ relief claims to recoup VAT overpaid in insolvency situations
• Preparing technical tax submissions to tax authorities with respect to indirect tax issues
• Engaging with tax authorities on your behalf in the event of an indirect tax audit

Good and Service Tax is the largest Indirect tax reform in India which is going to impact the way business is carried out at pan India level. It’s going to replace almost all the existing Indirect tax or levies like Excise Duty, Service Tax , VAT, Entry Tax etc. It’s impact will vary across the different kind of businesses.
Dual GST structure enhances the overall complexity which can be mitigated through a robust IT system. It’s imperative and high time for companies to gear up and assess the likely impact of GST on their kind of business.
Old age concepts like “Sale”, “Manufacturing”, “Stock Transfer” needs to be unlearned and new terms like “Destination”, “Consumption”, “Place of supply” to be learned.
Now, almost whole India will be one market, breaking the boundaries of erstwhile State specific indirect taxes.

Our scope of services under GST regime

• Impact analysis - Our team of experts will understand your business and carry out an impact analysis covering all the important aspects i.e. working capital requirement, logistic issues, job work vs. In-house, procurement, Maximum Retail Price.
• Transition support - For existing registered entities under various Indirect tax laws, there would be an automatic transition to GST regime. The transition process will require assessment of situation and positions of taxation liability under existing laws. We’ll work out the strategy for transition to GST and it’s likely impact on the closing balance of tax obligations and benefits.
• Regular compliances - Once GST is made applicable and transition process is complete, our next role would be to support you in regular compliances under GST which includes but not limited to new registrations, amendments in existing registration, calculation of periodical tax liability, preparation and filing of tax return, tax assessment etc.

We also offer income tax services that comprise taxation on income earned in a financial year a part of which is taxable as per rates prescribed for that year. With the financial year running from 1 April to 31 March of following year, broadly taxpayers are classified as residents or non-residents where the individual taxpayers can be classified as ‘residents but not ordinary residents’. Our team of tax consultants and financial advisors also allows us to offer Income tax consultancy services that are aimed at offering business solutions to Manufacturers, Traders, Dealers as well as Service providers of industry.

Residential StatusAn individual is considered resident in India if he is in India in tax year for: 182 days or more; 60 days or more where the period of 60 days stands changed to 182 days or more for –

• Indian citizens/persons of Indian origins on visit to India
• For citizens of India leaving India for employment abroad as members of crew of Indian ship during tax year
• A resident is “not ordinarily resident” in India in any tax year if he:
• Has been “non-resident” in India in nine out of 10 previous years preceding that year
• Has during previous seven years, preceding that year been in India for total period of 729 days/less

Heads of IncomeIncome is categorized under five broad heads/classes where the taxable component of income is ascertained as per the rules for particular head/class of income followed by aggregation for determining total taxable income. These include:

• Salaries – Received against services rendered and include wages, pension, fees, commission and taxable value of perquisites.
• Income from house properties that comprise income that arises from use of residential/commercial properties. Here, only two prescribed deductions are permitted while computing income.
• Profits and Gains from Business/Profession that covers income earned from business/profession that is net of permissible deductions, against revenue earned.
• Capital Gains that covers gains which arise from transfer of capital assets and the period of holding determining classification of asset, which then determines manner of taxation. The gains comprise short-term assets and long-term capital assets.
• Sale of Certain Specified Investments that are subjected to taxation under which tax is levied on value of transaction.
• Income from Other Sources that are residuary head/class of income covering any income not specifically dealt with under other heads.

Rules Governing Foreign NationalsFor foreign nationals, Indian tax law provides exemption of income earned subject to prescribed conditions. This is based on conditions like –

• Individual’s stay in India does not exceed 90 days
• Payment made is not deducted in computing income of employer
• Remuneration received by person employed on foreign ship provided his stay in India not exceeding 90 days
• Remuneration of foreign diplomats, consular staff, trade officials and their staff and family
• Income of employee/consultant of government approved foreign charitable institutions

Companies
Domestic Company

• Income-tax @ 25% of total income for companies having turnover does not exceed 400 crore, in other case 30%
• Surcharge at the rate of 7% of income tax provided that total income exceeds Rs. 1 crore and 12% in case income exceeds Rs. 10 crore
• Education Cess @ 4% of total of Income-tax and surcharge

Firms

• Income-tax @ 30% of total income
• Surcharge at the rate of 12% of income tax provided that total income exceeds Rs. 1 crore
• Education Cess of 4% of total of Income-tax and surcharge

Kinds of Taxes

• Annual Tax which is levied on income earned in a financial year and is based as per the rates declared in annual budget. With rates varying with each budget, the tax is payable in advance by way of quarterly installments during financial year.
• Minimum Alternate Tax (MAT) is tax levied @ 19.055% of book profit. Here, the surcharge is at the rate of 7% of such income tax provided that total income exceeds Rs. 1 crore. Further, the Education Cess is @ 4% of total Income-tax and Surcharge.