TAX DESTINATION

Tax Collection at Source TCS is the amount that is collected as tax by a seller of specified goods from the buyer at the time of sale. The TCS is over and above the selling price and is paid to the Government by the seller. It is to be noted that TCS is not only attracted at the time of sale of specified goods but at the time of some other specified transaction. So, let us look at the transaction in which TCS is attracted. 01. Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall collect income tax at the rate 2%. 02. Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount,

Tax Collection at Source TCS is the amount that is collected as tax by a seller of specified goods from the buyer at the time of sale. The TCS is over and above the selling price and is paid to the Government by the seller. It is to be noted that TCS is not only attracted at the time of sale of specified goods but at the time of some other specified transaction. So, let us look at the transaction in which TCS is attracted. 01. Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall collect income tax at the rate 2%. 02. Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount,

Tax Deducted at Source (Part 2) In our last blog on TDS we discussed what is TDS, how to deposit TDS and the Due date of deducting. In this blog we will discuss more about TDS filing. Once TDS is deducted and deposit. The deductor has to file TDS return to the government. For TDS filing deductor often need TAN. So firstly let us understand difference of PAN and TAN. PAN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.  PAN cannot be used for TAN, hence, the deductor has to obtain TAN, even if he holds PAN. However, in case of TDS on purchase of land and building, the deductor is not required to obtain TAN and can use PAN for remitting the TDS. Further in case of TDS on rent and TDS on payment of certain sums by Individuals of HUFs, th

Tax Deducted at Source (Part 2) In our last blog on TDS we discussed what is TDS, how to deposit TDS and the Due date of deducting. In this blog we will discuss more about TDS filing. Once TDS is deducted and deposit. The deductor has to file TDS return to the government. For TDS filing deductor often need TAN. So firstly let us understand difference of PAN and TAN. PAN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.  PAN cannot be used for TAN, hence, the deductor has to obtain TAN, even if he holds PAN. However, in case of TDS on purchase of land and building, the deductor is not required to obtain TAN and can use PAN for remitting the TDS. Further in case of TDS on rent and TDS on payment of certain sums by Individuals of HUFs, th

Hello Everyone! Welcome to our last blog of the series forms of Business. In our earlier blog we have discussed Proprietorship, partnership and LLP. In this blog we will discuss the Company.  So let's get started. What is a company? Company is the association of people who come together for a common business objective. Company has its own identity. In the eyes of law it is a separate legal entity which means a company can enter into an agreement on its own. The owners of the company are known as shareholders. Indian companies are governed by 'The Companies Act, 2013'.    The shareholders hold shares of the company and in exchange of shares they give money to the company. This is one of the ways to raise funds. The company can raise funds through debt as well.  In company the management and ownership lies with different people. As discussed, shareholders are the owners whereas directors are the people who are responsible for the management of the company. Types of companies

Hello Everyone! Welcome to our last blog of the series forms of Business. In our earlier blog we have discussed Proprietorship, partnership and LLP. In this blog we will discuss the Company.  So let's get started. What is a company? Company is the association of people who come together for a common business objective. Company has its own identity. In the eyes of law it is a separate legal entity which means a company can enter into an agreement on its own. The owners of the company are known as shareholders. Indian companies are governed by 'The Companies Act, 2013'.    The shareholders hold shares of the company and in exchange of shares they give money to the company. This is one of the ways to raise funds. The company can raise funds through debt as well.  In company the management and ownership lies with different people. As discussed, shareholders are the owners whereas directors are the people who are responsible for the management of the company. Types of companies

Limited Liability Partnership Hey everyone! Welcome back. In our last blog we discussed the Partnership form of Business and its suitability. If you really like the Partnership form but is concern about the unlimited liability associated with it then LLP is the right form for you. So let's learn more about it. What is LLP? LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP has perpetual succession which means it can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or unauthorized actions of other partners, thus individual partners are shielded from joint liability created by anot

Limited Liability Partnership Hey everyone! Welcome back. In our last blog we discussed the Partnership form of Business and its suitability. If you really like the Partnership form but is concern about the unlimited liability associated with it then LLP is the right form for you. So let's learn more about it. What is LLP? LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP has perpetual succession which means it can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or unauthorized actions of other partners, thus individual partners are shielded from joint liability created by anot

Hello Everyone! Today's blog is about Partnership form of Business. In the last blog we talked about Sole Proprietorship and whether it is a suitable form for your Business. Similarly in this blog we will discuss about Partnership form of Business in detail so that you can conclude whether it is a perfect match for your Business. So without further ado, let's get started. What is Partnership? Partnership is the relation between persons who have agreed to share the profits and loses of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are individually called Partner. The name under which their business is carried on is called the "firm-name".  For eg, Mr A and Mr B started a business and named the business as AB & Co. So in the case Mr A and Mr B will be the partners in the Partnership firm AB & Co. In India, partnership is governed by the act Partnership Act 1932. According to section 5 of t

Hello Everyone! Today's blog is about Partnership form of Business. In the last blog we talked about Sole Proprietorship and whether it is a suitable form for your Business. Similarly in this blog we will discuss about Partnership form of Business in detail so that you can conclude whether it is a perfect match for your Business. So without further ado, let's get started. What is Partnership? Partnership is the relation between persons who have agreed to share the profits and loses of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are individually called Partner. The name under which their business is carried on is called the "firm-name".  For eg, Mr A and Mr B started a business and named the business as AB & Co. So in the case Mr A and Mr B will be the partners in the Partnership firm AB & Co. In India, partnership is governed by the act Partnership Act 1932. According to section 5 of t