Exclusive mandatory compliance offer for startups
Our survey has confirmed that: Every 2nd Startup get Income Tax Notice for tax demands or for non-compliance, 3 out of 7 Startups finds place on the defaulter list of Registrar of Companies due to non-compliance, 2 out of 4 Startups incur unnecessary pay-out by way of interests and penalties. This offer would protect your startup from unnecessary taxes, penalties by keeping your business in perfect compliance as you grow.
Questions in Mind
1. Are all businesses eligible for this offer?
No. Once the turnover of your company touches Rs. 5 lakhs or the number of financial entries exceed 30, various other compliances like Service Tax, etc get attracted. Additionally, for such growing companies, books of accounts have to be maintained on real time basis. Hence, this offer is not suitable for you.
For compliances of your growing company, outsource your day to day tax, accounting services and Pay-roll functions, check out our day to day Tax & Regulatory Services – Retainership Package.
2. What is this "Startup Offer"?
This offer is for startups only. In most cases, in the initial years, a startup does not generate much of business. However, there are few basic mandatory compliances which a company has to comply with, irrespective of your turnover or business. “Startup Offer” aims to protect these startups. This offer would help your business comply with the basic compliances and thereby avoid unnecessary penalties & interests.
3. What is included in this package?
This package includes the basic and mandatory compliances that a company having a turnover of less than Rs. 5 lakhs or financial entries not more than 30 has to take up:
· Preparation of Financial Statements (Balance Sheet, Profit & Loss Statement, All ledgers, Depreciation Schedule, Trial Balance)
· Income Tax Return Filing – ITR 6
· Annual ROC Filing – AOC 4, MGT 7, ADT 1 (as the case maybe)
· Audit Compliances
· Secretarial Drafting- Director’s Responsibility Statement, Audit Report, Director’s Report, Internal Financial Controls Report
4. What is the penalty if my company fails to meet these compliances?
· Preparation of Financial Statements – punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than Rs. 50,000 but which may extend to Rs. 500,000 or both
· Income Tax Return Filing– Not filing the ITR of your company on time can lead to a penalty, but there are also other consequences and inconveniences attached to the delay. Following are the consequences:
· Penalty for Late Filing u/s 234F – Penalty upto Rs.10,000 on non-filing of your Return (minimum Rs.5,000). Payment of Interest – interest u/s 234A @ 1% per month or part month. Carry Forward of Losses – Not Allowed in case of non-filing of ITR within due date. No chance of Revision of ITR in case of delayed filing.
· Annual ROC Filing–Additional fee @Rs 100 per day per form. Apart from this, provisions for striking off the company and prosecution are also present.
5. What if my startup is not a private limited company? Do I still have to pay Rs. 15500?
No. This package is mainly for private limited companies. If your startup is not a private limited company, simply write to us at [email protected] We would customize a special package for you at reduced costs, as per the scope of work involved.
6. Does your package include Govt efiling fees and taxes too?
No. This package does not include Govt e-filing fees, taxes, penalties and GST. Ministry generated payment challans would be provided to you as a measure of transparency.
7. Is this offer suitable for companies registered on or after 01st April, 2019?
No. This offer is not suitable for such companies. Companies incorporated on or after 01st April, 2018 need day to day services like real time book-keeping, BRS, TDS due diligence, TDS payments and deductions, recording of minutes and statutory registers, etc, which this offer does not cover.
Please refer check out or Retainership Package for current year compliances.
8. I have my filings pending for FY 2016-17 and FY 2015-16. Will the fees still be Rs. 15500?
Please note that the fee of Rs. 15500 is an annual fee or per annum fee. Hence, if your filings are pending for two financial years, say FY 2017-18 and 2016-17, the total fee would be Rs. 31000(Rs. 15500*2).
9. What is the due date for meeting these compliances?
The due dates for meeting these compliances are as follows:
ITR filing – 30th September, 2019
ROC filings – within 30 days from the date on which the Annual General Meeting of your company is supposed to be held. In most cases, this date is 30th September. Hence, the due date comes to 30th of October, 2019, this year.
10. What is DSC? Is the fee for DSC included in the package?
DSC or Digital Signature Certificates are the digital equivalent (that is electronic format) of physical or paper certificates. Physical documents are signed manually, similarly, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
No, our fees do not include DSC renewal charges. But you can customize the package to include such renewal at some additional cost.
11. What services are not included in this offer?
This offer includes only basic mandatory compliances which are required to be met on an annual basis.