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Director identification number

Director identification number (DIN) is a unique number of a director which is allotted by the government to any of the person who intended to be a director or existence director in any company. If a single director is have directorship in two or more than companies then also the director number will be remain same, because DIN is the only identity with the help of we can Track who are the owner of the DIN .

DIN is a number which contains 8 digits of unique number and if a director once applies for the DIN then the number will have the validity for the lifetime. By the help of DIN the details of the director maintain in the database.
People often have Question that, what if the director leaves the company and joins another. The answer will be DIN is a specific num
ber which belongs to the particular single director, whether he leaves the company or joins another one, he has to use the same DIN for his identity.

What is the usage of DIN?

DIN has so many usages in body corporate including LLP, for the filing of returns, for the purpose of submitting any application or information under any law, and into all these above mentioned usage we have to mention the DIN exactly beneath of his signature.

Necessary forms for the DIN application

SPICe forms
DIR-3 form
DIR-6 form
All these above mentioned forms should be file electronically and also should be filed digitally after then only we can upload it on the MCA21 portal

DIN application procedure

SPICe form: – For the application of DIN allotment for being a director in new company then it is mandatory to have fill SPICe form only.
DIR-3 form: – If anyone wants to become director into any existence company then they have to file DIR-3 form for the allotment of DIN.
DIR-6 form: – If there will be need to change anything in a particular of the director then it will be file in the form DIR -6.

Followings are the document which is needed to attach with the forms.

With SPICe Form: –

With the SPICe form we need to attach the identity and address proof, DIN will be allotted to the applicant only when the application will be approved.

With DIR-3 form: –

Attachments

• Residential proof
• Photograph
• Identity proof
• Verification ( Name of the applicant, father’s name, date of birth, text of declaration and physical signature of the applicant)
• In case if the applicant belongs to foreign nation then it is mandatory to have the passport as identification.

2. Documents should be attested by the CA, CS and CMA.

All the attachments mentioned above is should be attest by the CS, CA and CMA and they should be whole time practice. And in the case of foreign nations their documents can be attested by the consulate of the Indian embassy and foreign notary.

After of uploading the DIR-3 and documents which will be acceptable by all the online method, the offline payment is not allowed.

3. Generation of DIN

After the payment and the application will be submitted, you will get the system generated application number, then central government will approve or reject. After approving the DIN it will communicate to the applicant within the one month or if the government will not approve they will send the mail of rejection.

With DIR-6 form: –

For the purpose of changing anything we have to file DIR-6 online.

All about ITC and RCM on purchase and hiring of motor Vehicle

The section 17 and sub section 5 of CGST Act has cleared the query of many of taxpayer that if the motor vehicle are using for the business purpose still the tax payers are not liable to claim input tax credit. Before the date of 01/02/2019 it is restricted for the taxpayers to claim input but after the amendment in CGST Act 2018 which is effectual from the date of 01/02/2019. And the amendment has substitute the clause and introduced the new clause and let the tax payer avail the input tax credit on their purchasing or hiring of the motor vehicle

The CBEC vide notification number 22/2019 on 30/09/2019 has introduced the rule in which renting the motor vehicle services comes under the reverse charge mechanism (RCM)

On the purchase of motor vehicle for the personal use it is not allowed to claim ITC but for the business purpose it is allowed to avail the input tax credit but there are 2 cases where the scenario is different. Both cases are following.

Purchase for business purpose: – the vehicle should be used for all the purpose which is specified in the section 17(5) A or sitting capacity should be less than 13.

The specified purpose of in section 17(5) A is followings

Transportation of passenger.
Imparting training on driving.
Transportation of goods.
Further supply of such vehicles.

Hiring for the business purpose:-the hired vehicle should be used for all the purpose which is specified under section 17(5)A or the seating capacity should be less than 13 or the third condition is for obligatory to provide service to employee by law.

If the supplier is other than company and recipient is the company.

buyer can claim input tax credit if the supplier is not company
GST chargeable as 12% if the supplier is other than company.
Buyer can’t claim input tax credit if the recipient is company.
gst chargeable as 5% RCM if the recipient is company
If the supplier is other than company and recipient is the company.

What is the meaning of motor vehicles under this scheme?

The vehicle which is supposed to use on the road and refers to motor vehicle act 1988. The use of this vehicle should be on road but excluding the following purpose.

The vehicle is adapted only for the use in factory or.
The vehicle having less the four wheels which is fitted with the engine capacity should be not excluding 35CC or.
Vehicle running on fixed rails.

Purchase of motor vehicle

According to the section 17(5) A,AB : – It means ITC is not available for two clauses under section 17(5) both of the clauses are defined below.

Clause A: – the motor vehicle is uses for the purpose of transporting the passenger having seat including driver 13 or less than 13.

Clause B: – the motor vehicle is uses for the service of general insurances, repair and maintenance, and servicing of the vehicles.

Tds on sale of property

Tds on sale of property is levied 1% of all the property where the total transaction value is more than 50 lakhs. Tds on property has been explained in details of article.

Rate of TDS on sale of property;

TDS on sale of property is 1% of the property value is more than 50 lakhs. Tds is required to deduct
for all the transaction after 1st july 2013 if the property of transaction value is more than rs. 50 lakhs. If the seller in not- resident in india he is an NRI then the rate of tds will change.

Amount on which the Tds is to be deducted ;

Tds @ 1% is to be deducted on all property transaction which are above 50 lakhs. TDS is deducted on all type of property transaction irrespective the property is consideration flat or building or vacant. tds is deducted of all type of property transaction except agricultural land.

Tax deduct on property to be deposited with govt;

As per the income tax act any tds is deduct shall be deposited with govt. on before the specified due date of deposit of tds. Any person deduct in tds shall also the apply section 203A. Tds is deduct by the buyer at the time of making the payment of seller has to be deposited within the period of 30 days from the end of month.

Tds on purchase of property from NRI:

Tds on purchase of property in case of long term capital gain 20% and applicable tds rate surcharge less than 50 lakhs is 20.8% and 50 lakhs to 1 crore is 22.88% and more than 1 crore 23.92%.
In the case of NRI pan is mandatory and resident pan is mandatory.

Procedure for deposit of tds on property with govt;

Buyer of property is required to deduct tds on property from the purchase price of the property deposit this tds with the income tax department. form 26qb is required to furnish mentioned all details ;
pan number of buyer, address of buyer , pan number of seller, address of seller, address of property transferred , date of payment, amount paid, date of agreement, residential status.

More than 1 buyer or 1 seller;

In case of more than 1 buyer and 2 seller- 2 forms have to be submitted,

and in this case 2 buyer and 2 seller- 4 forms have to be submitted for their respective property share.

Pan card of seller and buyer should be mandatory in form 26QB regarding the tds on property on sale transaction. In the case of seller does not have pan card then tds is to be deduct in 20% of total transaction value. the provision are applicable for the tds purchase of property only. These provision wont be applicable on payment made as rent of property. the provision of section 194I are applicable of tds on rent in case tds is deduct in 10%.

ESOP issuance procedure

There are so many schemes which makes great employability system and make their employees eager to do work with passion and interest. As these schemes keep the employees motivated with the things like bonus, incentives, and fame which belongs with the name of company.

So here we are going to know about one of those schemes which is ESOP (employee stock ownership plan) this is the scheme wherein the employee has the right to buy the shares of the company at a discounted price at any future date, the company should be the same in which they are working. The ESOP scheme encourages the employees to work harder and better. The companies always provide the ESOP package to the entire newly hired employee in order to attract the new, fresh and best talent for their best outcomes at the earliest.
Basically the idea behind of this scheme it to enhance the value and share by providing the shares to employee and make them shareholders and being a self vested in the company.

Following is procedure to issue the ESOP: –

ESOP scheme drafting and approval in the board meeting

This is the scheme where documents contain these various things given below.
ESOP Administration
Details of the exercise period and vesting period
The size of equity
Cessation of the employee

The main motive of the drafting to ensure that scheme has been drafted by the point of view of employee benefit otherwise there is no use of this point as the motive is to attract the top talents or if it will not be followed then the entire purpose will seem to be defeated. And once the drafting will be completed by containing all the terms it will be pass to board of director in the board of meeting to be approved.

Approval in AGM

A notice must have to be send to all the members for the intimation of EGM (extraordinary general meeting) within the stipulated period of time. At this EGM the ESOP scheme will be approved by the shareholders via passing of a special resolution

Filing with registrar of company

The board and special resolution which has been passed in Extraordinary General Meeting is must to be filed with the ROC in the form of MGT-14 within the stipulated time period.

Register maintenance and granting of option

Once the ESOP scheme will approve then the stock options will be starts granted to the employees who are eligible for the scheme. The time period of vesting must be one year from the date of granting. There is the form named by Form PAS-3 is to be filed with the ROC, just at the time of exercising to the employee’s option and there is also a form named by Form SH-6 wherein the register of ESOP is to be maintained.

Benefit of ESOP to startup

Raise the additional equity capital.
Refinance the unpaid debt.
Enable the more and active participation in the growth of company.
Control on company’s cash variability.
Attract the prospective talent and retention of existing talent.