Are you a director of a private limited company having a website?

 Are you a director of a private limited company having a website?

 Here are 3 disclosures that are mandatory else you may face dire penal consequences.

 

1.     Contact details on Home/Landing Page

a)     Name

b)    CIN

c)     Regd  Office Address

d)    Contact No., Name & Email of person to contact for grievances

 

2.     Notice of Shareholder Meeting (AGM & EGM)

Every Co. has to hold AGM (Annual General Meeting) every year for adopting financials etc. EGM is held on need basis. Notices of meetings are mandatorily required to be uploaded on website.

 

3.     Annual Return of the Company

Annual Return (Form MGT-7/7A) which is required to be filed with ROC (Registrar of Companies) every year is also required to be uploaded on website.

 

4.     Resignation of a Director

The fact of "Resignation of a Director" needs to be put up on the website within 30 days.

The above disclosures were mandatory website disclosures that apply to all companies irrespective of their type & size.

 

5.     Penalty for violation of the above:

		Penalty on Company			Penalty on each director
	Violation	Flat Amount	Variable Penalty per day	Maximum Limit	Flat Amount	Variable Penalty per day	Maximum Limit
1	Contact details NOT on Home/Landing Page	Nil	1000/-	1 lakh	Nil	1000/-	1 lakh
2	Notice of Shareholder Meeting NOT on website	10,000/-	1000/-	2 Lakhs	10,000/-	1000/-	50,000/-
3	Annual Return of the Company NOT on website	5,000/-	500/-	No Limit	5,000/-	500/-	No Limit
4	Resignation of Director NOT on website	10,000/-	1,000/-	2 lakhs	10,000/-	1,000/-	50,000/-

 

6.     Related Provisions

 

Sec 12 read with Rule 26 of Incorporation Rules

Sec 101 read with Rule 18 of Management & administration Rules

Sec 92

Sec 168 read with Rule 15 of Appointment & Qualification of Director Rules

Supreme Court decision Mohit Minerals decision for a layman’s understanding

 The earlier position for an importer was when he is importing and paying ocean freight for import, he might be paying the freight to a Non resident line and hence it was treated as an import of service. For import of service, importer was liable to pay IGST on Reverse Charge Basis and he could claim Input Tax Credit on the same (so there was no effect at all).

But when he is importing goods on a CIF basis, the freight was paid by then Non resident seller and importer is not paying any ocean freight. But department demanded that there is an import of service and hence importer has to pay IGST and he can take ITC also. But trade objected this because of 3 reasons – (1) the ocean freight cost is already loaded on the value of goods imported and hence paying tax on ocean freight again will result in double taxation and (2) as the non-resident seller is paying the ocean freight, they don’t even know the amount of ocean freight.  (3) When something is imported on CIF basis, service is received by the foreign seller and not the Indian importer. So there cannot be any import of service by the importer of goods.

So the matter went to Gujarat High Court and Gujarat High Court held that importers need not pay IGST on reverse charge basis on ocean freight when import was on CIF basis.

Department went in appeal before Supreme Court against this order and Supreme Court now held that the decision of the Gujarat High Court is valid.

Now the factual situation is like this:

Payment on FOB basis:

• ·       If shipping line is based in India, GST payable by shipping company under forward charge.
• ·       If shipping line is based outside India, GST payable by Importer under RCM.

Payment on CIF basis:

• ·       If shipping line is based in India, GST payable by shipping company under forward charge.
• ·       If shipping line is based outside India, NO GST payable as per Supreme Court Decision

Can we take ITC on Employee Uniforms?

 Can we take ITC on Employee Uniforms?

GST on any expenses incurred in the course or for furtherance of business, unless it is specifically blocked, can be claimed as ITC.

Uniforms are not covered under blocked credit u/s 17(5).

Uniforms are used by the employees only during office hours when attending official duties. They don’t wear it for personal functions or occasions. It is given to employees as per the internal policy of the company. It is printed with Company Logo. So, it is a part of brand identity of the company.  Hence, it is not for any personal consumption or gift to employee. It is purely a business expenses and hence ITC is available.