Integrated Business Services
Archive for January, 2010
Business Incubation Services
2 years ago
by Bizi
in Incubation & Startups
BizIntegrated offer Business incubation services in Pune, India.
Incubation provide wide range of services and guidance to new entrepreneurs and startups. It help you focus on your ideas and let other aspects be managed by us and save at least 50% in cost and 50% in Time.
We are seeking startup opportunities mainly targeting to compete with brick & mortar businesses by making intelligent use of electronics, mobile and web technologies along with street smart salesmanship, guts to challenge the system and exploit the opportunity.
We can provide incubation, financial and marketing support along with technology assistance. We seek people interested in entrepreneurship who believe that their current job in the regular industry make far less use of their skills. People with Sales & Operations management experience are preferred over developers.
If you have significant experience in an industry where you think intelligent application of latest technologies can create very profitable opportunities, you may be right person. We help you transform form an Employee to an Entrepreneur with calculated risk.
The startups we invest are yet to be started or currently have less then 5 staff and at Seed stage.
We focus on startups that target opportunities where they offer and alternative or full and more efficient replacement to and existing system.
e.g. If you make a tool/service that help Teacher teach better then we are not interested , If you make a tool/service that can provide an alternative or can fully/partially replace a teacher then we are interested.
This is just an example, what we mean is that your should challenge the Real world system and compete with it rather then competing in the virtual space.
Trademark Registration Services
2 years ago
by Bizi
in Corporate Identity
Trade Mark
A trademark is a distinctive sign or indicator used by an individual, business organization or other legal entity to identify that the products and/or services to consumers with which the trademark appears originate from a unique source of origin, and to distinguish its products or services from those of other entities.
In order to register your trade mark the following are the steps / procedure to be taken:
- Identify the Mark / Logo to be registered as Trade Mark
- Search with Trade Mark Registry for the availably of Trade Name / Mark for registration
- Identifying the Class under which the Trade Mark to be registered
- Filing the application with Trade Marks Registry
- Obtaining the acknowledgement form Trade Marks Registry
After issuing the acknowledgment, Trade Marks Registry will publish the mark in the Trade Mark journal for public information and will call for objections if any. If there is no objection from anyone, the Trade Marks Registry will issue the certificate of Trade Mark Registration.
Company Incorporation / Registration India
2 years ago
by Bizi
in Company Registration
Company registration in India is regulated by the Companies Act, 1956 and is administered by the Ministry of Corporate Affairs (MCA - www.mca.gov.in) through the Offices of Registrar of Companies (ROC) in each State.
Types of companies that can be registered in India are Private Companies and Public Companies.
Company Registration process starts by filing of name application with the ROC. Once, name is allotted, company registration documents have to be prepared and filed with respective ROC for registration. Up on scrutiny of documents, in a day or two the ROC registers the Company and issue the Certificate of Incorporation.
BizIntegrated simplifies the company registration process. We can assist you to register companies anywhere in India at an attractive cost.
How to setup a company in India
Steps to be taken to get incorporated a private limited company:-
- Ensure that the name does not resemble the name of any other company already registered.
- Apply to the concerned ROC to ascertain the availability of name in Form-1 A along with a fee of Rs.500/-. If proposed name is not available apply for a fresh name on the same application.
- Drafting of the Memorandum and Articles of Association, vetting of the same by ROC and printing of the same.
- Stamping of the Memorandum and Articles with the appropriate stamp duty.
- Get the Memorandum and Articles signed by atleast two subscribers in his own hand, his father’s name, occupation, address and the number of shares subscribed for and witnessed by atleast one person.
- Get the following forms duly filled up and signed:-
- Declaration of compliance – Form-1
- Notice of situation of registered office of the company – Form-18.
- Particulars of Director, Manager or Secretary – Form-32.
- Present the following documents with ROC with filing fee and registration fee:-
- Declaration of compliance – Form-1
- Form-1, 18 & 32 in duplicate.
Name availability letter issued by ROC. - Power of Attorney from the subscribers in favour of any person for making corrections on their behalf in the documents and papers filed for registration.
- Obtain Certificate of Incorporation from ROC.
Additional Steps to be taken for formation of a Public Limited Company
Consent of Directors to act as such in Form No.29.
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Other Requirements of the private limited company:
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Banking – Current Accounts
2 years ago
by Bizi
in Banking & Finance
Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts. In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit. Generally, a higher minimum balance as compared to Savings Account is required to be maintained in Current account.
As per RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts. However, in case of death of the account holder his legal heirs are paid interest at the rates applicable to Savings bank deposit from the date of death till the date of settlement. Because of the large number of transactions in the account and volatile nature of balances maintained, banks usually levy certain service charges for operating a Current account.
Current Account can be opened by:
- Sole proprietorship/Partnership concerns.
- Private Limited Companies.
- Clubs, Societies.
- Trusts, Executors and Administrators.
- Others – Govt. and semi Govt. bodies, local authorities etc.
Documents Required for Opening a Current Account
Following documents are required in case of individuals
- Two passport size photographs
- Proof of residence i.e. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration card/voters identity card
- An introduction of the person from an existing account holder.
- PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961
Different set of documents are required as per bank’s norms if the account is opened by partnership firms, private and public limited companies, HUFs / specified associates, societies, trusts etc.
Most Popular Banks in India
- ICICI Bank
- HDFC Bank
- Axis Bank
- HSBC bank
- Citibank
- State Bank of India (SBI)
Corporate Identity Package
2 years ago
by Bizi
in Corporate Identity
We will design your package with a strong and lasting personality that your customers will come to instantly recognize, and that will promote a positive and memorable view of your business. As a bonus, we will also include a free matching fax cover sheet.
After our design work is done, we will provide you with hardcopy and digital files of your identity package to use with the printer of your choice.
Our corporate identity design package includes:
» Vector-based Logo
» Professional Introductory Website with 1 Year of Hosting
» Letterhead Design
» Business Card Design
» Envelope Return Address Design
» EBAY Web Template
» Facimile Cover Sheet
» Computer Screen Background / Screensaver
» 3-5 design concepts for your review
A brief note: We are often asked what kind of design is best… Though this is a decision that should be made by your company, we personally recommend two color designs.
If you look at most major corporations you will see that their logos, letterheads, business cards, etc., are only two colors.
The main reasons are:
1. Two color designs are usually crisp, clean looking, & easy to read.
2. Two color designs are more economical for printing. Most printers are set up for one color, two color, and full color printing. Full color (CYMK) printing is more expensive than one & two color printing. For most printers, to print three colors, they have to run your piece through the press twice — once, for the first two colors, then a second time for the third color… this makes three color spot printing expensive.
We are not saying that one color, three color, and full color designs are not useful… We would not design them if we didn’t believe that there are cases when they are the best choice. A high end company quite often has the budget for using a full color design on all of their printed items and, for their market, it may be the right choice. Conversely, a natural foods company may be suited best by the simplicity and down-to-earth look of a one color design. Your choice is best determined by your own company’s needs… but, again, a two color design is recommended for most businesses for its combination of both interesting visual appeal and the reasonable costs associated in reproducing it on printed materials.
Excise Duty
2 years ago
by Bizi
in Accounting & Taxation
Central Excise Duty (CENVAT) is levied on goods manufactured and produced in
India. It is levied under the authority of the Central Excise Act, 1944 at the
rates prescribed in the First Schedule and Second Schedule to the Central
Excise Tariff Act, 1985 as amended by Central Excise Tariff (Amendment) Act,
2004. In addition, education cess at 2 per cent on excise duty amount is
levied by Finance (No. 2) Act, 2004. The effective rates may be lower pursuant
to general /specific notifications issued by the government granting whole or
partial exemption from duty. The duty, in most cases, is levied on the basis
of value of the excisable goods.
Value, for this purpose, with effect from 1 July 2000 is the "transaction
value" which is:
India. It is levied under the authority of the Central Excise Act, 1944 at the
rates prescribed in the First Schedule and Second Schedule to the Central
Excise Tariff Act, 1985 as amended by Central Excise Tariff (Amendment) Act,
2004. In addition, education cess at 2 per cent on excise duty amount is
levied by Finance (No. 2) Act, 2004. The effective rates may be lower pursuant
to general /specific notifications issued by the government granting whole or
partial exemption from duty. The duty, in most cases, is levied on the basis
of value of the excisable goods.
Value, for this purpose, with effect from 1 July 2000 is the "transaction
value" which is:
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CENVAT is payable by the manufacturer but is, ordinarily, recovered from the
buyer as a part of consideration for sale of goods. To reduce the cascading
effect of CENVAT, a scheme known as MODVAT was introduced in 1986, which has
now been renamed as CENVAT (effective 1 April, 2000). Under the CENVAT Scheme,
a manufacturer can avail of the credit of the central excise duties or
additional duties of customs (i.e. CVD) paid on specified inputs and capital
goods used in the manufacture of excisable goods and also service tax paid on
eligible input services and utilize it in discharging central excise duty on
finished excisable goods.
Custom Duty / Import Duty
2 years ago
by Bizi
in Import / Export
Customs duties are levied on import of goods into India at the rates specified
in the Customs Tariff Act, 1975. The effective rates of customs duties may
vary pursuant to general and / or specific exemption or concession
notifications issued by the government in this regard.
in the Customs Tariff Act, 1975. The effective rates of customs duties may
vary pursuant to general and / or specific exemption or concession
notifications issued by the government in this regard.
Customs duties currently comprise the following:
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In addition, government also levies anti-dumping and safeguard duties on
specified products for specified periods. “Value” for the purpose of levy of
customs duty is “transaction value” in the course of international trade in
arm’s length unrelated party transaction.
Import-Export Policy
Import of goods into and export from India is regulated by the Foreign Trade
Policy (the Policy) issued from time to time by Government of India. The
Policy remains in force for five years and is amended from time to time. The
Policy currently in force is for tax year 2004-09. Majority of goods are now
freely importable.
Service Tax
2 years ago
by Bizi
in Accounting & Taxation
Service Tax
It is an indirect tax. Service tax is a tax on services provided .The
provisions of service tax are contained in chapter V of the Finance Act, 1994
and administered by the Central Excise Department. The word ‘Service’ is not
defined in Finance Act, 1994.
provisions of service tax are contained in chapter V of the Finance Act, 1994
and administered by the Central Excise Department. The word ‘Service’ is not
defined in Finance Act, 1994.
Applicability
of Service Tax:
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Illustration: Mr. J of
Jammu and Kashmir is providing advertisement service in the state of Jammu and
Kashmir as well as in other parts of India. Service tax is not applicable for
services rendered in the state of Jammu and Kashmir. However, he is liable to
pay service tax on those services which are rendered outside the state of
Jammu and Kashmir. Service tax liability is based on the place where the
service has been rendered, but not the place from which the service is
provided.
Statutes
Governing The Levy Of Service Tax:
The following are the sources provide provisions relating to service tax.
Service tax is governed by
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Various Rules in force
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Rules are supplementary to carry out the provisions of the Act. Rules can
never override the Act and cannot be in conflict with the same.
Rate of Service
Tax:
At present, the effective rate of Service tax is 10.36 %. The above rate
comprises of Service tax @ 10 % on “Gross Value of taxable service”. Education
cess [EC] @ 2 % on service tax amount. Secondary and Higher Education cess
[SHE] @ 1 % on service tax amount.
Taxable
Service:
The Act provides the list of services to which the Act applies in section 65
(105) of the Act. At present there are 106 services covered under the service
tax net.
Taxable Value:
Valuation under service tax is only with reference to the valuation rules
namely “Service Tax
(Determination of Value) Rules, 2006”.
Taxable Event
In Service Tax:
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Tax
Liability:
Taxable event happens when taxable services are rendered. Tax liability taxes
place as soon as payment for service is received. The payment may be received
in advance (ie) before the execution of the service or in arrears (ie) after
rendering the service. If service provider receives advance payment; tax
liability to pay service tax arises.
Persons Liable
To Service Tax:
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*Where a provider of taxable service provides one or more taxable service
from one or more premises, the aggregate value of all such taxable services
and from all such premises and not separately for each services or each
premises shall be taken into account for computing “aggregate value of taxable
service.
*Input service distributor means on office managing the business of
manufacturer or producer of final products or provider of output services,
which receives credit towards purchase of input services and issues invoice,
bill or, challan for the purpose of distributing the credit of service tax
paid.
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Illustration: X ltd has a
place of business at Chennai and is registered under Service tax in Chennai.
He has factories at Trichy, Coimbatore with separate registrations and a unit
in Hyderabad. X ltd make centralized purchases for its entire unit and
distribute the input goods and services. It decides to distributes available
tax on input services of Rs.20, 000/- in the suitable ratio (as the case may
be) in the ratio 20:30:20:30. Every input service distributor, distributing
credit of taxable services should issue an invoice, a bill or challan signed
by him or a person authorized by him for each of the recipient of credit
distributed. The invoice or bill must be serially numbered.
*Services covered under section 68 (2): [Deemed service providers]
| The following table summarizes such services and the person liable to pay service taxSl.no. |
Nature of the service | Service Provider | Service Receiver | Person liable to pay tax |
| 1 | Insurance auxiliary service | Insurance agent | Insurance Company | Insurance Company |
| 2 | Service provided to a Person in India from outside India | Person outside India | Person in India | Person in India |
| 3 | Goods transport agency for transport of goods by road. Note: If the service receiver is individual, HUF etc., tax is payable by the Service provider (GTA) |
Goods transport agency | Any registered Factory. Any company. Any corporation. Any registered Society cooperative society. Any registered dealer Of excisable goods. Any registered firm Or body corporate. |
The service receiver or his agent. |
| 4 | Business Auxiliary Service – Mutual Fund distribution | Mutual fund Distributor of an agent | Mutual fund company | Mutual fund company |
| 5 | Sponsorship services | Any person | Body Corporate of firm | Body Corporate of firm |
Who Is Liable
To Register ?
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Registration
Procedures:
Any person liable to pay service tax has to register with the Superintendent
of Central Excise within 30 days from the date of commencement of the business
of taxable service. Invoice should be issued within 14 days from the date of
completion of taxable service or receipt of any payment towards value of
taxable service.
Registration
procedure under Service Tax:
Step 1: Apply for
registration in Form ST – 1 to the Superintendent of Central Excise. Online
application can also be made.
Step 2: Submit along with
Form ST – 1 the following documents
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Step 3: The
Superintendent of Central Excise will grant a certificate of Registration in
Form ST- 2 within 7 days of the date of receipt of application.
Step 4: Certificate of
Registration can be surrendered if the assessee ceases to provide the taxable
service for which he had been registered.
Where a service rendered from different location falling under different
Commissionerates, multiple registrations are required, however, even in this
case a single Registration is possible, with the permission from the
Department, if the assessee maintains centralized accounting for multiple
services provided from more than one premises. If the registration certificate
issued by the department is lost, the assessee can make written request for
duplicate registration certificate.
Payment Of
Service Tax:
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| Service provider | Monthly/ Quarterly Due dates | Due date for the March and Quarter ending March |
| Individuals and Firms | 5th of the month following the quarter ended June, Sep, Dec. | 31st March |
| Others | 5th of the following month | 31st March |
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Filing Of
Returns:
Returns are filed half yearly in Form ST – 3 [ Form ST – 3A for PA]. If the
service provider is not able to estimate the tax amount properly, he may apply
for Provisional Assessment.
Due dates are as follows:
(a) 25th October for the
half year ending 30th September.
(b)25th April for the half year ending 31ST March.
Revised returns can be filed within 90 days from the date of filing of
original return.
Nil return has to be filed even there is no tax liability and no taxable
services rendered.
| DELAYED FILING Period of Delay | Late fee |
| Up to 15 days | Rs.500 |
| 16 days to 30 days | Rs.1,000 |
| More than 30 days | Rs.1,000 plus Rs.100 per day till the date of filing return [Max Rs.2,000] |
Records To Be
Maintained:
The records as maintained by the assessee in accordance with the various laws
in force shall be accepted. Every assessee is required to furnish to the
Superintendent of Central Excise a list of accounts maintained by him in
relation to service tax. This is to be submitted only once at the time of
filing the first ST- 3 return.
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Such records need to be preserved at least for a period of five (5) years
immediately after the financial year to which such records pertain.
| PENALTIES – SEC. 76, 77 & 78Sl.no | Nature of Violation | Penalty |
| 1 | Failure to pay Service Tax [sec.76] | Not less than Rs.200 per day of default or 2 % p.m. of tax due which ever is higher. In no case penalty exceed the tax amount. |
| 2 | Suppression of value | 100% or 200% of service tax sought to be charged |
| 3 | Failure of Registration | Rs.5,000 or Rs.200 per day which ever is higher from the 1st day after due date till the day of Actual compliance |
| 4 | Failure to furnish information called by officer or Central Excise officer |
Rs.5,000 or Rs.200 per day which ever is higher from the 1st day after due date till the day of Actual compliance |
VAT – Value Added Tax
2 years ago
by Bizi
in Accounting & Taxation
India does not have a classic Value-Added Tax (VAT) structure. Instead, separate tax on sale of goods and on rendering of services is imposed under different legislations. Sale and purchase of goods is subjected to charge of sales tax. Sales tax is levied under Central and State Sales Tax legislations depending upon the movement of goods in pursuance of a sale transaction. If the transaction involves movement of goods from one state to another (inter-state), the tax is levied under Central Sales Tax Act (CSTA), 1956.
This Act also covers transactions of import of goods into or export of goods out of India. Sales tax is not imposed on import of goods into the country or export of goods out of the country. The Central Sales Tax (CST) Act is administered by the state governments and the tax is levied at the origination of transaction (origin based levy). The revenue collected under Central Sales Tax Act is retained by the state governments. The rates of tax under Central Sales Tax Act vary from state to state and product to product. The standard rate of CST is 4 per cent or the lower rate applicable in the state of seller if the purchaser is purchasing the same for resale or for use in manufacture of goods for sale or for specified purposes and both the seller and buyer are registered dealers. Otherwise, the rate is higher of 10 per cent or the rate applicable in the state of sale.
The transactions of sales or purchases involving movement of goods within a state (intra-state) are governed by respective State Sales Tax Acts. States also levy tax on transactions which are “deemed sales” like works contracts and leases. A works contract essentially is a contract for carrying out work involving supply of labor and material where the property in the materials passes during the course of execution of the contract. Lease is a transaction involving transfer of right to use goods.
From 1 April 2005, 21 states of India have replaced local sales tax with VAT. The rest of the states are still continuing to impose sales tax. The VAT, as introduced by 21 states, is not much different from local sales tax regime except that it captures value addition at each level of distribution network. The State VAT, as introduced by the states, continues to be a tax on sale of goods and does not include taxation of services. The standard rate of VAT is 12.5 per cent and there is reduced rate of 4 per cent. Besides that, there are exemptions and rate of 1 per cent and 20 percent for specified products.
In addition to sales tax, some states also levy additional tax / surcharge, turnover tax or entry tax.
Sales tax / state VAT is payable by the seller to the government. Ordinarily, sales tax / state VAT is recovered from the buyer as a part of consideration for sale of goods.
Income Tax
2 years ago
by Bizi
in Accounting & Taxation
Direct Tax
Indian taxation overview: Sense of duty.
India has embarked on a series of tax reforms since early 1990s. The focus of reforms has been on rationalization of the tax rates and simplification of
procedures.
In India tax is levied by central, state and local government bodies.
Principal taxes including corporate tax, custom duties, central excise duty
and services tax are levied by the central government. On the other hand
states levy principal taxes like state excise duties, sales tax and stamp
duties. Local government bodies levy octroi duties and other taxes of local
nature like water tax and property taxes. .
Income Tax
Income earned in a financial year is liable to tax as per the rates prescribed
for that year. A financial year runs from 1 April to 31 March of the following
year. India follows a residence based taxation system. Broadly, taxpayers may
be classified as residents or non-residents. Individual taxpayers may also be
classified as ‘residents but not ordinary residents’.
An Indian company is always an Indian resident. Additionally, any other
company whose affairs are wholly controlled and managed from India is also a
resident. Any other company would be a non-resident.
Residential
Status
Status
An individual is resident in India if he is in India in the tax year for:
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Taxability based on status
| Residential Status | Indian Sourced Income | Foreign Sourced Income |
| Resident | Taxable in India | Taxable in India |
| Resident but not ordinarily resident | Taxable in India | Not taxable in India |
| Non-resident | Taxable in India | Not taxable in India |
Heads of
Income
Income
The income is categorized under five broad heads or classes of income. The
taxable component of the income is ascertained according to the rules for a
particular head/class of income and then aggregated to determine the total
taxable income. However, losses under certain heads cannot be aggregated with
income earned under other heads.
Salaries cover those that
are received for services rendered and include wages, pension, fees,
commission and the taxable value of perquisites. For this purpose, valuation
rules for certain standard perquisites, typically provided by employers in
India, have been issued. Standard deduction is available from the salary
income. The amount of deduction depends upon the amount of salary earned.
Income from house property includes
income arising from use of residential and commercial property. Only two
prescribed deductions are permitted while computing the income.
Profits and gains from business or profession covers
income earned from business or profession net of permissible deductions,
against the revenue earned. In addition, general non-specified revenue
expenses, incurred for the business are also deductible.
Capital gains cover gains
arising from transfer of capital assets. The period of holding determines the
classification of the asset, which then determines the manner of taxation.
Capital assets held for less than 36 months (12 months in case of
shares/securities) are treated as short-term assets. Other capital assets are
categorized as long-term capital assets. Long-term capital gains enjoy a lower
rate of tax. This may further be reduced by making prescribed investments.
Sale of certain specified investments are subject to gross basis of taxation,
under which tax is levied on value of transaction. Gain arising from
transactions subject to gross basis of taxation is entitled to concessional
tax treatment under income tax.
Income from other sources is
the residuary head/class of income and covers any income not specifically
dealt with under the other heads. A deduction in respect of expenses incurred
for earning the income, is available.
Individuals
Individuals are liable to tax in India at different rates of tax as under:
| Taxable income slabs (In Rupees) | Rates of Tax |
| 0 – 100000* | Nil |
| 100001 – 150000 | 10.2 per cent |
| 150001 – 250000 | 20.4 per cent |
| 250001 – 1000000 | 30.6 per cent |
| 1000000 and above | 33.66 per cent |
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Foreign Nationals
Indian tax law provides for exemption of income earned by foreign nationals
for services rendered in India, subject to prescribed conditions. For example
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Companies
Resident Companies
Indian resident companies are liable to tax at 33.66 per cent on net basis.
Additionally, companies are also liable to dividend distribution tax (DDT) at
14.025 per cent on the amount of profits distributed to shareholders.
Non-resident Companies
Non-resident companies are typically liable to tax at 41.82 per cent on net
basis. Non-resident companies may be taxed on a gross basis or on a
presumptive basis in certain cases. However, income from long-term capital
gains is taxable at the rate of 20.91 per cent.
Kinds of Taxes
Annual Tax
An annual tax is levied on income earned, for a financial year, on the various
taxpayers listed above as per the rates declared by the annual budget. The
rates for the financial year 2005-06 are as stated in the section dealing with
“Taxation of different taxpayers”. The rates would vary with each budget. The
annual tax is payable in advance by way of quarterly installments during the
financial year. The quarters would vary depending on the taxpayer involved
e.g. in the case of companies the payment for the first quarter would fall on
15 June of the financial year involved.
Minimum Alternate Tax (MAT)
The domestic tax law also requires companies to pay MAT in lieu of the regular
corporate tax, in a case where the regular corporate tax is lower than the
MAT. MAT is computed on the book profits; subject to certain prescribed
adjustments at the rate of 8.415 per cent in the case of domestic companies
and 7.841 per cent in case of non-resident companies; MAT paid in any year is
now available as credit in any subsequent year.
Dividend Distribution Tax (DDT)
Dividends are currently exempt from taxes in India. However the company paying the dividends is required to pay DDT on the amount of dividends declared, at the rate of 14.025 per cent. DDT is a tax payable on the dividend declared, distributed or paid.