Tax & Registration

We all know that we’re required to pay certain taxes to the government from time to time. These are broadly classified into direct and indirect taxes. Direct taxes are taxes that we pay directly to the government, like income tax and corporation tax.

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Goods and Services Tax- GSTEasily Available by Us

We all know that we’re required to pay certain taxes to the government from time to time. These are broadly classified into direct and indirect taxes. Direct taxes are taxes that we pay directly to the government, like income tax and corporation tax. Indirect taxes, on the other hand, are taxes that are paid by individuals to an intermediary who shall then pay it to the government. Common examples of indirect taxes are Value added Tax (VAT) and Goods and Services Tax (GST).

Up until 2017, goods and services in India were taxed in varied ways like Value Added Tax (VAT) and service tax. To make the tax structure simpler and bring it under one umbrella, the government implemented the concept of one single tax called the Goods and Services Tax (GST).

The GST Council meets regularly to decide or modify the GST on various commodities and services. For example, some commodities were initially placed in the higher GST tax bracket (18%-28%). But after inputs from states and industries, these commodities were reconsidered more as necessities than luxuries and their GST rates were reduced.

Types of Goods and Services Tax:

Central Goods and Services Tax (CGST)

State Goods and Services Tax (SGST)

Integrated GST (IGST)

GST Rates

The GST rate is broadly classified into 4 categories: 5%, 12%, 18% and 28%. Goods and services are bracketed under these categories depending on whether the item is essential, non-essential, a necessity or a luxury.

Let us look at the GST rates of a few common items:

Tax Rates Products
0.25% Cut and semi-polished polished diamonds and other precious stones.
5% Essential household commodities like edible oil, sugar, spices, tea, and coffee (except instant coffee). Coal, Indian Sweets and Life-saving drugs also attract a 5% GST rate.
12% Computers and processed food.
18% Soaps, hair oil, toothpaste and cream are covered in this bracket.
28% Luxury commodities like small cars, consumer durables like AC and Refrigerators, premium cars and high-end motorcycles, cigarettes and aerated drinks.

Some very essential items like milk attract no GST. This is to ensure that essential commodities that are consumed in almost every home are readily available without tax.

GST Rates for Common Services

GST Rates on loans

Tax Rates Services
Nil Services offered under Bank Service Bank Deposit (BSBD) under Pradhan Mantri Jan Dhan Yojana (PMJDY). Hotel accomodation for transactions below Rs. 1000 per day.
5% Working for newspaper printing, Renting cabs, Tour operator services, Print media ad spaces
12% Building construction for sale, Food and drink at restaurants (without AC or Liquor license), Movie tickets costing less than or equal to Rs. 100
18% Food and Drink at AC restaurants with liquor license, Outdoor catering, circus, drama, theatre.
28% Amusement parks, Theme parks, water parks, sporting events like the IPL, casinos, ballet, race course, go-karting, Food and drink in AC 5 star hotels.

The earlier service tax applicable on loans has now been replaced by GST. The rate of GST is set at 18% and is only levied at the loan processing charges.

Home loan: 18% GST

Personal Loan: 18% GST

Car loan: 28% GST

GST on Gold

The gold itself is levied with a GST of 3%, whereas the making charges are taxed at 5% if the manufacturing is outsourced to a job worker.

Tax

Income Tax

Taxes in India are mainly of two types: Direct Taxes and Indirect Taxes. Direct taxes are those taxes that a tax paper pays directly to the government, like the Income Tax that earning individuals pay every year and the Corporate Tax that firms and companies pay to the government.

Indirect taxes are those taxes that an intermediary collects on your behalf and pays it to the government. Examples of indirect taxes are service tax, Value Added Tax (VAT) and Goods and Services Tax (GST) that we pay for commodities and services.

Let us look at Direct Taxes and there two main types:

Income Tax: Any individual or Hindu Undivided Family (HUF) who earns an income in India (including NRIs) has to pay a tax to the government on their income. This is called an Income Tax and the rate of taxation is decided by the government.

Corporate Tax: Just like individuals have to pay income tax on their earned income, companies and firms have to pay corporate tax on the profits that they generate. The rate of corporate tax is decided by the government.

Income Tax - Basic Principles

Income Tax has to be paid for any income that an individual generates, unless it is tax exempted. Whether it is a salary that an individual earns, a pension amount, income from rented property, income from stocks and mutual funds and even the interest earned from keeping your funds in a savings account, all of it levies a tax.

Tax Slabs and Taxpayers

The term ‘taxpayer’ can mean any of the following:

Now it is true that all of the above groups of persons do not have similar incomes. They all have a varied level of annual income, and hence they cannot be taxed equally. Therefore, people’s incomes are bracketed or grouped into tax slabs or tax brackets. Each of the four different tax slabs attract a different rate of income tax.

Income Tax Slab Tax Applicable as per New Regime
Rs.0 – Rs.2,50,000 Nil
Rs.2,50,001 – Rs. 5,00,000 5.00%
Rs.5,00,001 – Rs. 7,50,000 Rs.12500 + 10% of total income exceeding Rs.5,00,000
Rs.7,50,001 – Rs. 10,00,000 Rs.37500 + 15% of total income exceeding Rs.7,50,000
Rs.10,00,001 – Rs.12,50,000 Rs.75000 + 20% of total income exceeding Rs.10,00,000
Rs.12,50,001 – Rs.15,00,000 Rs.125000 + 25% of total income exceeding Rs.12,50,000
Above Rs. 15,00,000 Rs.187500 + 30% of total income exceeding Rs.15,00,000

Corporate Tax

Corporate tax is paid by companies and it is calculated against profits earned by the company, capital gains, income from rented property, and income from other sources like dividends and interest.

Range of income Rate of tax
Companies with up to Rs.400 crore gross turnover 25%
Gross turnover that exceeds Rs.400 crore 30%

Surcharge rates

Particulars Domestic Companies Tax rate
If total income range is between Rs.1 crore and Rs.10 crore 7% as per rate of tax above
If total income range exceeds Rs.10 crore 12% as per rate of tax above

Company Registration

When you start a new business in India, it is always prudent to get your company registered with the Ministry of Corporate Affairs (MCA). Before you can register your business, you must choose what type of business structure you want your company to take. In India, we have four types of company structures:

1) One Person Company (OPC)

2) Limited Liability Partnership (LLP)

3) Private Limited Company (PLC)

4) Public Limited COmpany (PLC)

Whatever the business structure you choose, registering your company will drastically increase its credibility and also give you a lot of benefits.

Benefits of Registering a Company


Procedure for registering your company

You can easily get your company registered using the online portal for the Ministry of Corporate Affairs.

Step 1: Apply for a Digital Signature Certificate (DSC)

Step 2: Apply for a Director Identification Number

Step 3: Application for company name availability.

Step 4: Filing of eMoA (e-Memorandum of Associations) and eAoA (e-Articles of Associations)

Step 5: Apply for PAN and TAN of the company

Step 6: Submit certificate issued by the Registrar of Companies

Step 7: Open current bank account for the company.

Step 8: Done!

That is how you can get your company registered. Feeling that it’s too much of a hassle? Do not worry. Let us handle it for you. At Cat-Eye Consultancy, we can guide you with getting your company registered in the blink of an eye.

Partnership Firm

A partnership firm is a firm where two or more individuals come together to form a business and agree to divide the profits among themselves in an agreed upon ratio. A partnership is much easier to form than an LLP and the compliance required is minimal as compared to companies.

Creating a partnership.

Choose a name

A name must be given to the partnership firm but a couple of guidelines need to be followed when choosing a name:

a) The name must not be too similar to another existing business. This rule ensures that people do not confuse one business with the other and the reputation of existing businesses could be mistaken if new businesses adopt similar sounding names.

b) The name must not contain words like Empire, Crown, Emperor, Empress or anything that hints that the business is sanctioned or approved by the government.

How to form a partnership agreement?

The document that signifies that a firm is a partnership and contains all terms of the partnership is called a partnership deed. It contains all details regarding the rights, shares, duties and obligations of each partner.

Details required for a partnership deed

a) General Details:

1. Name and address of the firm.

2. Names and addresses of all the partners.

3. Nature of the business

4. Date on which the business was started or is to be started.

5. Initial investment contributed by each partner

6. Profit/loss sharing ratio among the partners

b) Specific Details:

Apart from the above general details, further specific details must also be mentioned in the partnership deed that could avoid future conflicts.

1. Interest on invested capital, details of funds drawn by partners or any loans provided by partners to the firm.

2. Salaries or commissions to be paid to the partners.

3. Details of the partners’ rights within the firm, including additional rights that active partners may enjoy.

4. Duties and obligations of all the partners

5. Procedure or protocol to be followed in case of death of a partner, or dissolution of the firm.

6. Any other special clauses that the partners want to include.

Registering your partnership firm.

To register your partnership firm, you must submit an application, alongwith the required fees, to the Registrar of Firms of the State where your business is located. You’ll be required to furnish the following documents:

After completing all formalities the registrar will verify all your documents. If they are satisfied, they will register your firm in the Register of Firms and issue a Certificate of Registration.

To make your registration process easier, we at Cat-Eye Consultancy can guide you with forming your partnership deed as well as registering your firm. Our services will ensure that your partnership firm is established and registered in quick time and with a process that is more streamlined and hassle-free.

Copyright Registration

A creative person that writes stories, novels, creates music and draws art, would always want that their work be identified as their own, and an assurance that no one else could copy their work. That is exactly what a copyright is. It is a right of the creator that doesn’t allow anyone else to copy their work. When someone holds a copyright over a creative work, they hold exclusive rights to that work and no one else can copy, imitate, or reproduce that work in any form.

The following things can be copyrighted:

A copyright in India lasts for 60 years, and it is issued by the Registrar of Copyrights. The register of the Registrar of Copyrights contains 6 categories:

PART – 1: Literary works other than computer Programs

PART – 2: Musical Works

PART – 3: Artistic Works

PART – 4: Cinematography Films

PART – 5: Sound Recording

PART – 6: Computer Programs, tables & Compilations

Is it mandatory to get a copyright?

It is not necessary to get a copyright for every piece of creative work. However, getting a copyright provides many benefits. You get the assurance that you will have the legal advantage if anyone were to copy your work. If your work was copyrighted and someone copies it, you have every right to sue that person in a court of law.

Procedure for copyright registration

The process of getting your copyright can be done online with the following steps:

Step 1: Visit www.copyright.gov.in

Step 2: Register as a new user.

Step 3: Login with your username and password.

Step 4: Click on ‘Click for Online Copyright Registration’.

Step 5: Follow the instructions to fill Form XIV

Step 6: Fill up the Statement of Particulars and the Statement of Further Particulars (if applicable)

Step 7: Make the payment.

Once you make the payment, you will be issued a Dairy No., after which a waiting period of 30 days commences. These 30 days are reserved for others to make an objection over your copyright claim. If no objection is received, the scrutineer will scrutinize your application and forward your application to be registered, If everything is in order, your copyright will be entered into the Register of Copyrights.

For a hassle-free and smoother copyright registration process, you can always let us at Cat Eye Consultancy provide our excellent services in this regard. Our quick and streamlined copyrighting process will ensure that your application is error-free and has no chance of getting rejected.

Import Export Code (IEC)

If you think that circulating your product in India is limiting your growth potential, then the next thought that you may have is going global. That is, exporting your products abroad and targeting the global market. Similarly, you may be looking to import certain products looking to sell them in India. In either case, you will be required to acquire certain licenses, follow protocols and get registrations done in order to import or export in and out of India. The Import Export Code (IEC) license is one such license that you must have if you want to move goods in and out of India.

The Import Export Code is a 10-digit code that is required by anyone who wants to start an Import/Export business in India. It is issued by the Director General of Foreign Trade (DGFT) and once you get your code, it will be valid for life. Importer merchants cannot import goods without the IEC code and similarly, exporter merchants cannot export goods or avail benefits like the export scheme without the IEC license.

When do you need an IEC?

The IEC is required in the following situations:

Steps involved in acquiring an IEC Code:

Step 1

Fill out the application form in the required format, that is: Aayaat Niryaat Form no. 2A format. and file it with the Regional office of DGFT where your business is located.

Step 2

Compile all the required documents like identity proofs ( given below), legal documents and address proof with your bank details & the certificate in respect of ANF2A form.

Step 3

Once your application process is complete, you are required to file it with the DGFT in the form of a Digital Signature Certificate (DSC). During this step you will also be required to make the necessary payment for the IEC registration.

Step 4

If everything is in order and your application is approved, you will receive your Import Export Code as a soft copy from the DGFT.

Documents required for the IEC (Import Export Code) Registration

You will need to furnish the following documents when applying for the IEC.

If you require some guidance in getting your IEC registered without any hassles, we’ll be more than happy to assist you in the process. At Cat Eye Consultancy, we pride ourselves in getting IEC registrations done in quick time and make the process smooth and obstacle-free for the applicant.

Trademark Registration

When looking at brand names and logos, usually we either see a ‘ ™ ‘, or a ‘ ® ‘ symbol next to the name. These symbols simply mean that the brand name or logo that you're looking at has been trademarked or is a registered trademark. This signifies that that particular idea, concept, logo, or the name itself is unique to that particular brand and cannot be copied by any other brand.

Thus, a trademark is nothing but a unique sign or identity that makes your brand stand out from others. A trademark can be a logo, a brand name, a design, a tag line, a combination of colours or a sound. If you’ve come up with a creative idea to make your business unique, then you must safeguard it from plagiarism and emulation by registering it as your own trademark. Once you register your trademark, it is part of your business’s intellectual property and you have the right to sue anyone that tries to copy it.

In India , trademark registrations are carried out by the Controller General of Patents, Designs and Trademarks, Ministry of Industry and Commerce. Your trademark is registered under the Trademark Act of 1999 and is valid for 10 years. You can always renew your trademark registration again after 10 years.

™ - The ™ sign can be used as soon as 3 days after the application is. It does not signify that your trademark is registered, it only shows that your trademark application has been filed.

® - The ‘R’ sign properly denotes that your trademark has been duly registered and it usually takes upto 2 years to be approved.

What can you trademark?

The trademark rules of India mention that any item that is used to build your brand and makes it stand out can be trademarked. This includes names, logos, graphics, colour combination, photograph, smell, sound, phrases, symbols, initials or a combination of any of these.

A trademark can be registered by individuals, private firms, companies, LLPs and NGOs.

Benefits of trademark registration:

Trademark Registration Procedure

You can either file your application manually by submitting it to the Registrar Office of Trademarks situated in all major cities, or do the entire registration online by using the government portal.

Once you choose your trademark, you need to do the following steps to get your trademark registered online:

Once you get your registration certificate, your trademark is officially registered and you can start denoting it with the symbol ®.

Cat Eye Consultancy can help you get your trademark application done and dusted in a jiffy. We’ll guide you towards getting your inque trademark right from the start. This includes searching for a unique trademark, comparing and contrasting it with other existing trademarks (if any), and performing the entire registration process on your behalf. This will ensure that you get your trademark registered as soon as possible and flaunt the ® sign next to your logo.

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Kindly furnish the following details if you have any queries regarding any of our services. One of our representatives will contact you shortly with more information related to your query.

Management

CCSPL is backed by professional management and possesses a technological capability through well-qualified and highly experienced personnel. Details of Key person s is mentioned hereunder:

  • Rishi Mohan Rastogi

    A Chartered Accountant passed in the year 2015 and a total work experience of around 10 years. Rishi specializes in Taxation (both direct and Indirect), Management consultancy Services and Financial Consultancy.

  • Suneet Rastogi

    A Chartered Accountant with more than 14 years of total work experience. The total experience of around 14 years has been majorly into banking. He has been dealing into secured SME advances business in all these years with ICICI, RBS and Indusind. In his last assignment he was designated as ZH- BBG, Mumbai for Indusind.

  • Ankur Rastogi

    A Chartered Accountant with more than 14 years of total work experience. The total experience of around 14 years has been majorly into banking, handling Working Capital and Project Loan requirements in SME segment. He has worked in different geographies across India in all these years with ICICI, RBS and Indusind bank. In his last assignment he was designated as ZH- BBG, for Indusind bank.