What does E.C.S mean?

ECS stands for Electronic Clearing Service.

What is that?
If you are a salaried person and have a salary account in a bank. Then, you can contact bank authorities and sign for ECS for loans that is ...

previously, when we buy loans each month we will have to pay them back using cheque or cash. Isn't?

Now, if you sign for ECS and submit that copy to the bank from where you are getting loan, then they will automatically detect the loan EMI amount on a specified date of a month.

Eg: In my case, each month on 05'th, ICICI detects a specific amount as EMI from my account.

ECS is electronic clearing system, In this the banks have been given a standing instruction that every month an amount that is ether the amount on due on bills (credit card, Mobile phone, etc) or on installment of your loan or even in some cases mutual funds and shares, so the required account is taken out of your account and given to the required party through a safe and secured transaction.

MCA 21 Project and Important Guidelines for e-filing

MCA 21 Project and Important Guidelines for e-filing

[Submitted by Mr. S. Narayanaswamy,
M.Com. AICWA. ACS
Chennai]

May 20, 2006

Introduction to the MCA 21 Project

The MCA 21 project, is an ambitious, e - governance initiative, visionary in nature, for fulfilling the aspirations of corporates, Banks, Financial Institutions, corporate lenders, investors, government regulatory agencies, professionals, and other stake holders in the 21st century. This project will change the administration of Company Law, by the Registrar of Companies, and other offices of the Ministry of Company Affairs.

There will be a change from the traditional paper based system to paperless environment to administer the corporate law compliance. The delivery of government services will be improved systematically, to all the stake holders and also substantial cost reduction can be effected to administer the rules and regulations.

There are about 7,20,000 registered companies spread throughout the country. On 18.2.2006 the Ministry has launched its portal www.mca.gov.in at Coimbatore, Registrar of Companies office as a pilot project. The MCA 21 project has been formally launched at New Delhi, on 18.03.2006, by the Prime Minister Dr. Manmohan Singh.

This portal is expected to facilitate e filing, on line inspection of company documents and requisition of certified copies.

MCA 21 e-governance project is in the process of implementation at various stages. The following are the general guidelines for the stake holders of this prestigious project.

1. Please verify your Company Master data. This is a time bound action to be done by the company representative or by the assisting professional concerned. The Ministry proposes to carryout the corrections by 30th June, 2006. The companies information given in the Master data, are to be printed and checked by the Company representative or by the assisting professional. Any corrections to be made in the Company Master data are to be intimated with necessary proof with the concerned ROC office, and follow up the same. The Ministry has scanned and digitized all the permanent records and also Annual Returns and Balance Sheets for the latest two years in respect of all active companies.
   
2. All stake holders are required to register themselves with the MCA PORTAL. Registration is free of cost. A simply registered user can also view the public documents on payment of prescribed fees. A Business user and/or a professional user shall require a Digital Signature Certificate and his access rights are different.
   
3. New e forms and fees:
   
   The Ministry has also notified the new e forms and fees payable against each e forms filed. It has also introduced various new forms, changes made in various existing forms, and also done away with some old forms such as Form 13, Form 29 etc. with effect from 01.03.2006.
   
   It has introduced new forms such as FORM 23 AC for filing of Balance Sheets and Profit and Loss Accounts, FORM 62, for filing Return of Deposits and Compliance Certificate u/s 383A.
   
   Various new fields have been incorporated in the new e forms. Hence the professionals have be very careful in filling up the complete data in the e forms.
   
   It has also revised various e forms subsequently, and notified the same in its site. The following main forms have under gone some changes after the date of its first release. FORM 1, FORM 1A, FORM 1 B, FORM 2, FORM 32, FORM 18, FORM 5, FORM 8, FORM 17, FORM 20 B, FORM 23 AC, FORM 25C
   
4. Please verify the index of charges in respect of the company you are representing. Kindly take all the details of the charges as per the records made available for MCA 21 project implementing team. A separate charge number is given by the MCA 21 project team. This number is to be quoted in the future in the FORM 8 and FORM 17 while modifying the charge or satisfying the charge respectively for effecting the transactions successfully. The Ministry has scanned and digitized all the subsisting charge documents. The Index of such charges are made available for viewing without any charge.. There may be lot of charges that would have already been satisfied and the same may be shown as existing charges. And there could be lot of charges that would have got modified during the course of the period of the charges. Please approach the concerned ROC office or at the facilitation centre with the full details of charges existing and the corrections proposed in the charges and in the Index of Charges.
   
5. Apply for Director Identification Number (DIN) though internet facilities in the MCA 21 portal. All the existing directors and the proposed to be directors, shall have to obtain a DIN number, by filling the required details in the DIN Application Form. Applying for a second DIN number is prohibited. After Filling up the DIN application form, and obtaining a provisional DIN number,( generated automatically by the system) the DIN Application form shall be sent to Regional Director's office at Noida by courier or by registered post with the required identity proof and address proof. The certified copies of the following documents are to be sent to MCA DIN CELL at Noida.
   
   PAN CARD
   RATION CARD
   PASSPORT with address
   DRIVING LICENCE
   Latest Telephone Bill.
   
   The Ministry is not charging any separate fees for giving the DIN Number. After receiving the DIN number the concerned Director shall also intimate to the companies about his DIN number. On receipt of such DIN number particulars from the Director concerned, the Company also intimate to the respective ROCsabout the details of DIN Number of its directors.
   
   The Companies (Amendment) Bill 2006, has already been passed by the Parliament and as the provisions of the said bill obtaining and quoting DIN number in the e forms filed with the ROCs are mandatory. Further non obtaining and non quoting of DIN numbers are also liable for punishment.
   
6. Procure Digital Signature Certificates (DSCs) on or before 30th June 2006.
   All the e forms are to be filed by using the DSCs. The Company Directors and other company representatives who are signing the eforms are required to obtain DSCs to enable e -filing. A class 2 DSC is a mandatory requirement for this purpose.
   
   The DSCs are given by the authorized certification agencies. The DSCs are given for one or two years period only. The Certifying agencies are also levying a charge for issue of DSCs. The professional who is attesting the e -forms shall also obtain a DSC. This is also a pre-requisite in the MCA 21 system.
   
7. Banks/Financial Institutions and other corporate lending agencies are also required to obtain a class 2 DSC for its authorized officials, to sign the FORM 8 and FORM 17, and file the same with the Registrar of Companies. Filing of Form No. 13 has been done away with. The Ministry proposes not to accept any documents after 30th June 2006 with out a valid DSC for the officials of the corporate lenders also.
   
8. The ministry is in the process of setting up 53 facilitation centres throughout the country. These facilitation centres are accepting documents physically filed by the corporates. The Ministry has requested the corporates and their assisting professionals, to bring soft copies of e-forms along with the manually signed copies, and also the soft copies of attachments.
   
9. While filing any ROC forms physically, at the Facilitation centres, a declaration should also be given by the authorized company representative regarding e Filing using the Digital Signature Certificate of ROC official/ Facilitation Centre staff.
   
10. The Ministry has also taken necessary initiatives for the implementation ofCertified Filng Center for e -forms. The ministry has permitted the practicing members of the 3 professional institute to register and operate as a certified filng centre of e -forms. It has given the following as the pre requisite conditions.
    
    Minimum Office Space Required
    
    200 Sq.ft
    
    Hardware requirement
    
    Minimum 2 Pentium - IV, computers, with Colour Monitors, USB ports, Floppy Disk Drive, and CD writer
    Deskjet or Laser printers
    Minimum one scanner
    
    Minimum Software requirement
    
    Windows 2000/Windows XP
    Adobe reader 7.0.5
    PDF Converter
    Anti virus software
    Internet Explorer version 6.0 and above
    Java Run Time Environment
    Digital Signature
    Minimum one trained staff is also required.
    
11. The ROC fees and other statutory fees shall be paid in electronic mode.
    
    Though MCA 21 System also accepts conventional payment mode, it is suggested to make the payment through electronic mode, which is faster and safer too. On line payments through internet banking and credit cards are accepted by the system. This will facilitate faster processing of documents by the MCA employees and officers. The Ministry has tied up with 200 branches of State Bank of India, Punjab National Bank, Indian Bank, ICICI Bank, and HDFC Bank for making payments through Challan based system. For online payment the Payment Gateway of ICICI Bank has also been authorized.
    
12. Certification of e -forms.
    
    FORM Nos. 2, 3, 5, 8,10,17, 18, 23, 24AB, and 32 are to be pre certified by Practising Chartered Accountants/Company Secretaries/Cost Accountants. For pre certifying the e forms the practicing professional has to obtain a class 2 digital signature.

SERVICE TAX: READY RECKONER FOR THE CALANDER YEAR

SERVICE TAX: READY RECKONER FOR THE CALANDER YEAR

[Submitted by CA. Pradeep Modi,
B.Com. FCA, DISA,
Kolkata, West Bengal]

July 17, 2008

STEP-1. REGISTRATION

Registration within a period of 30 days in FORM ST-1 is Compulsory where the aggregate value of taxable service exceeds Rupees Nine Lakhs.

Registration in form S.T. -2 shall be granted within seven days.

New services introduced w.e.f. 16.05.2008 are:-

1. Information Technology Software Service;

2. Investment Management Service under ULIP;

3. Stock Exchange Service;

4. Commodity Exchange service;

5. Clearing & processing House services;

6. Supply of tangible goods for use service.

STEP-2. BOOKS & RECORDS

No specific records have been prescribed. The records, including computerized data if any, being maintained by an assessee as required under any other laws in force (e.g. Income tax, Sales tax) is acceptable

STEP-3. VALUATION

1. The value of any taxable service shall be the gross amount charged by the service provider of such service provided or to be provided by him. The transactions between associated enterprises, any amount credited or debited to any account (including suspense account) in the book of account of person liable to pay Service tax will be taken for reckoning gross amount charged.
   

2. TDS: The Service Tax is to be paid on the value of taxable services, which is charged by an assessee. Therefore, the Service Tax is to be paid on the amount of income tax deducted at source because it is also a part of Consideration.
   

3. UTILIZING CENVAT CREDIT ON INPUT, SERVICE, INPUT & CAPITAL GOODS
   

   1. When input service are common for exempted service as well as output service, the credit to the extent 20% of tax liability on the output service.
   2. However, on certain specified input service the CENVAT Credit could be utilized without having any restriction of 20%.
      
4. Service tax Rate in general is 12%, Education Cess 2% and Secondary & Higher education Cess 1% but for Works Contract, the rate is 4% under composition Scheme.

STEP-4. PAYMENT

1. The payment of service tax on monthly / quarterly basis shall be deposited by way of GAR-7 Challan.
   
   1. In case where an assessee is an individual or a partnership firm:-
      The value of taxable services received during any quarter shall be required to be paid by him 5th day of the month immediately following the said quarter.
      
   2. (b) In case of all other categories of service tax assessee:-
      The value of taxable services received during any calendar month shall be required to be paid by them to the credit of the Central Government by the 5th day of the month immediately following the said calendar month.
      
   3. However, service tax for the month of March or the quarter ending in the month of March is to be paid by 31st March, of that calendar year.
      
2. DELAY IN PAYMENT
   Interest @ 13% per annum for the period by which the crediting of the levy or any part thereof is delayed.

STEP.5- ADJUSTMENT IN TAX

Where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be, subject to the following conditions:-

1. excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification,
2. excess amount paid by an assessee, on account of delayed receipt of details of payments towards taxable services may be adjusted without monetary limit,
3. in other cases the excess amount paid may be adjusted with a monetary limit of Rs. 100,000/- for a relevant month or quarter, as the case may be,
4. the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of 15 days from the date of such adjustment.".

STEP.6- FILING OF RETURN

All categories of service tax assessee shall be required to submit a half-yearly return by the 25th day of the month following the particular half-year (i.e.25th October & 25th April) in FORM ST-3 in triplicate along with:-

1. Copy of each of the form GAR-7 challans submitted for the month/quarter covered in the half, and
2. A memorandum in form ST-3A giving full details of the difference between the amounts of Service Tax collected and the actual amount deposit (month wise) if applicable.
3. If no services have been provided or no recovery is made, such assessee may file a Nil Return.

STEP.7- REVISION OF RETURN

An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of ninety days from the date of submission of the return.

STEP.8- PENALTY

1. The failure to pay service tax within the specified period attracts penalty. The amount of penalty shall be Rs.200/- per day or 2% of such tax per month whichever is higher [which shall not exceed the amount of service tax payable].
   
2. For delay in furnishing the return:
   
   1. 15 days from the date prescribed, an amount of Rs. 500/-;
   2. beyond 15 days but not later than 30 days, an amount of Rs. 1,000/-; and
   3. beyond 30 days from the date prescribed for submission of such return an amount of Rs. 1,000/- plus Rs. 100/- for every day from the thirty first day till the date of furnishing the said return:

   Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed Rs. 2,000/-.

STEP.9- SHOW CAUSE NOTICE

1. WHO: - The Assistant / Deputy Commissioner of Central Excise.
   
2. WHY: - Service Tax on any service provided by the assessee has been paid shortly, not paid, refunded erroneously.
   
3. WHEN: - Short levy or erroneously granted any refund due to suppression of facts, misstatement or evasion with intent to evade payment of service tax to be levied, the notice could be issued within five year from the relevant date.

STEP.10 - APPEALS

10.1 APPEAL TO THE COMMISSIONER (APPEALS):-

1. WHO: - An Assessee
   
2. WHY:-
   (i) assessment order passed by the Assistant / Deputy Commissioner.or
   (ii) denying his liability to be assessed under Service Tax, or
   (iii) against order levying interest or penalty or
   (iv) denying any refund of service tax.
   
3. WHEN: - Within 3 months from the receipt of the order in question. Commissioner (Appeals)may extend that said period by a further period of three months, If he feels that Appellant was prevented by sufficient cause from filing the appeal within the aforesaid period of 3 months
   
4. HOW:- Form ST- 4
   
5. ADJOURNMENT: - That any adjournment during hearing may be give only after recording the reasons and the adjournment given shall not be more than three times.
   
6. DECISION:- The Commissioner of Central Excise (Appeals) shall hear and decide the appeal within a period of 6 months of its being filed and pass such orders as he thinks fit and he may enhance the service tax, interest or penalty or denying any refund of service tax.
   

10.2. APPEAL TO THE APPELLATE TRIBUNAL:-

1. WHO:-
   (i) Any person aggrieved by an order passed by the Commissioner of Central Excise or
   (ii) An appellate order passed by the Commissioner of Central Excise (Appeals)
   
2. WHY:-
   (i) the Committee of Chief Commissions or the Committee of Commissioners objects to any order passed by the Commissioner of Central Excise in relation to the service tax, it may direct the Commissioner of Central Excise to appeal to the Tribunal.
   (ii) denying the Commissioner of Central Excise objects any appellate order passed by the Commissioner of Central Excise (Appeals), he may direct the Assistant / Deputy Commissioner to file an appeal to the Appellate Tribunal against such order.
   
3. WHEN:- (i) Respondent has a right to file cross objection with 45 days from the date of receipt of Notice or such extended period as permitted by the Tribunal and the cross memorandum shall be disposed off along with the appeal.
   (ii) An appeal to the Tribunal shall be filed within 3 months, time period may be extended if sufficient cause. The Appellate Tribunal can condone the delay in filing the appeal or cross objection on sufficient cause being shown.
   
4. HOW: - (i) in Form ST-5 & ST-7 as the case may be & Form ST-6 ( for Cross objection and has to be accompanied with a fee as prescribed.
   
5. ADJOURNMENT: - That any adjournment during hearing may be give only after recording the reasons and the adjournment given shall not be more than three times.

10.3. POWER OF SEARCH

If the Commissioner of Central Excise has reason to believe that any documents or books or things which in his opinion will be useful for or relevant to any proceeding under this Chapter are secreted in any place, he may authorize any officer [Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be] to search for and seize or may himself search for and seize such documents or books or things.

The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches, shall, so far as may be, apply to searches under this section as they apply to searches under that Code.

1. Gazetted Officer of Central Excise (Superintendent and above) has the power to summon any person for giving evidence or producing documents necessary for any inquiry.
2. The person must attend in response to summons and answer such questions as do not incriminate him and on his failure to do so, he attracts penalties.

10.4. SERVICE TAX AUDIT

1. WHO:- Central Excise Officer authorized by the AC/DC or audit party deputed by the C&AG.
   
2. WHEN:- Norms for Audit of service providers are as under:
   

   S.No.	Amount of tax in CASH and CENVAT paid annually	Frequency of Audit
   1.	Taxpayers paying more than Rs. 50 lakhs	Every Year
   2.	Taxpayers paying between Rs. 25 to Rs. 50 lakhs	Once in two Years
   3.	Taxpayers paying between Rs. 10 to Rs. 25 lakhs	Once in Five Years
   4.	Taxpayers paying below Rs. 10 lakhs	2% of the taxpayer every Year

   
   
   

3. HOW:- Every Assessee shall make available at the registered premises at all reasonable time of all records for inspection and examination.

company information - Corporate Law Experts - Chartered Accountants India,Taxpayers, CAs India, CA india ,ICAI, Company Secretary ,CS, Cost Accountants, MBA, Finance Professionals

Steps to be taken to get incorporated a private limited company:-

* Apply for DIN (Director Identification Number) Documents Required: Identity and Address proof and one passport size photo of the proposed directors.[information required about directors are Name, Father's Name, Date of Birth, Nationality, Present Residential address, Permanent Residential address]
* Apply for Digital Signature Documents Required: Identity and address proof of the any one proposed director
* Apply for the availability of the name (Suggest 3-4 name for the new company)
* Drafting of Memorandum and Article of association
* Pay Stamp Duty on Memorandum and Articles of Association (Now you can pay stamp duty online electronically also)
* File the documents for Company Registration (Form 1, Form 18, Form 32, Power of attorney)
* Get the Registration Certificate through email and speed post.

Additional Steps to be taken for formation of a Public Limited Company
Consent of Directors to act as such in Form No.29.

* Arrange for payment of application and allotment money by Directors on shares taken or agreed to be taken.
* File the statement in lieu of prospectus with ROC in schedule-iv of the Companies Act.
* File a declaration in Form-20 duly signed by one of the Director.
* Obtain the Certificate of Commencement of Business.

Dear Friend

Procedural requirement for formation of new company:

1. Obtain Digital signature of one of the promoter/director
2. Obtain DIN of at least two director
3. After obtaining approved DIN file Form 1A with ROC for name availability
4. If name is available ROC give name with in 3 days from the date of assigning
5. U will print at least two MOA and AOA.
6. File Form 1, 18, and 32 with the concerned ROC with the prescribed as given in Schedule X
7. File physical document like MOA and AOA for correction and other formalities, if required
8. After verification of physical documents of incorporation, ROC generate the Company Identification Number (CIN) and issue certificate of Incorporation at the registered address of the company

Payment of fee for respective form for incorporation of Pvt. Ltd.

1. For Form 1A is fixed of Rs. 500/-
2. For Form 1 u should pay as per your Authorised Capital
3. Form 18 fee is Rs. 500/-
4. Form 32 fee is Rs. 500/-

If you wanted to pay fee first of all your longing should be on MCA portal. Payment of challan will be made in authorised bank as given on MCA Portal.

What is MICR?

What is MICR?

Many of you would have seen the magnetic inks bar codes printed on the bottom of your bank's cheque leaves. These bar codes are known as MICR code, an abbreviation for 'Magnetic Ink Character Recognition'.

Actually, the MICR is the name given to the technology used in printing the code.

In the early 1980s the Reserve Bank of India introduced many new modes for safe and effective payments across the country. One such important mode introduced was the unique system of MICR based cheque clearing system.

Apart from being a security bar code to protect your transaction, the MICR code is also an indispensable part for online money transfers. Every bank branch is given a unique MICR code and this helps the RBI to identify the bank branch and speed up the clearing process.

What does it comprise?

The MICR code has nine digits in it with each three digits signifying some important information about the transaction and the bank. The first three digits in the MICR code represent the city code that is the city in which the bank branch is located.

In most cases it is in line with the PIN code of the postal addresses in India.

The next three digits stand for the bank code while the last three digits represent the bank branch code.

For example, if you have an account with State Bank of India [ Get Quote ] (SBI) Mumbai [ Images ] (Central) then its nine digit MICR code will be 400002009 wherein:

400, the first three digits representing the city code for Mumbai;

002, the next three digits representing the bank code for SBI;

And 009, the last three digits representing the bank branch code for Andheri (West).

You can check the MICR codes of different banks and its branches by checking it out on the RBI website.

How does MICR help speed up the processing of cheques?

Unlike the manual clearing of cheques where there is a possibility of many human errors and subsequent delay in clearing, the MICR code on the cheque printed with a unique magnetic ink usually iron oxide has magnetic material present in it and thus makes it machine-readable and almost error proof!

Under this method the reading machine or a cheque sorting machine reads through a cheque when inserted and identifies the branch the cheque belongs to and activates the automation clearing process.

The MICR code is so clear and fine that the machine could read it even if the MICR code isn't visible due to other marks or stamps on it.

According to the Reserve Bank of India report (Payments in India: Vision 2009-2012), all bank branches will be enabled with MICR codes.

Also, the RBI intends to reduce paper-based clearing process by introducing MICR- Cheque Processing Centres that will process over 95 per cent of volume and value of cheques processed in the country.

BankBazaar.com