Q. Does aggregate turnover include value of inward supplies received on which Reverse Charge Mechanism (RCM) is payable?

“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis),

Q. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?

This is one of the best query asked by the general public from all the India as many people have done that wrong. Hence, the government has clearly said that the new registration would be required because partnership has a separate legal status under GST from a proprietorship.

Q. A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?

The query is relating to the GST registration in India. Section 24 of CGST act deals with the mandatory GST registration in India. As per section 24, if any person makes any interstate supply of goods or services in India, then GST registration shall be mandatory irrespective of the turnover.

Q. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?

This is perhaps the most asked question by the civil contractors or work contractors because GST is not very clear on whether GST registration shall be required or not. Further, even the reply by the government is also not satisfactory.

Q. When is registration in other state required? Will giving service from Nasik to other state require registration in other state?

This is perhaps the very important question which is directly related to registration under GST. Many people are still confused as to when GST registration is required in India.

Q. Important checklist for section 8 Company registration?

The important checklist to register the section 8 company is as follows: You must be clear with your social objectives, You must have some idea on source of your funds and the utilization of the same, The documents of atleast two person are required to register the section 8 company, Draft your objectives under memorandum very clearly to avoid any rejection from the government department.

Q. Is closing (winding up) the section 8 company is a simple task?

No, closure of section 8 company takes a lot of time and energy. It cannot be closed under any fast track mode like Strike off rules recently released. If you want to close the section 8 company, then we need to follow the full lengthy procedure to close down the company.Further, before closure of the company, we need to get the compliance upto date. Because without making fully compliant company, the application for closure will not be accepted.

Q. How taxation works under Section 8 company?

Taxation over section 8 company is treated at par with other companies. The profits are taxes @30%. However, if section 8 company is registered under section 12AA (tax exemption) of the income tax act, then Section 8 profit is completely exempt and no tax is levied on the company.However, certain compliances is to be made every year to continue enjoying the tax exemption.

Q. Is there any requirement for minimum number of members for section 8 Company?

No, there is no concept of minimum number of members for section 8 Company. Anyone who can register the section 8 company need not worry regarding the membership. The requirement of having the membership is under Nidhi Company and not under section 8 company.

Q. Explain the difference between trust, societies and Section 8 company?

The difference between the three terms is as follows:Trust-It is an simple registered NGO and does not have any specific authority,Lacks trust factor,Trust deed is the most important document,Registration cost is low. Societies- Societies are registered under the Societies registration act and hence authentic, Mild trust, as membership is an important criteria, Deed of Societies is most important document, Registration cost is somewhere between 15000 to 20,000, Compliances as per deed. Section 8- Section 8 company is the most authentic NPO or NGO which is registered under Companies Act, 2013, High on trust factor, Memorandum of Association is the most important document,Registration cost is around 25000, due to work load involved, Various compliances including audit prescribed.