From The Desk of CA SANDHYA JAIN

General Overview Internal control  is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against theft and unauthorised use, acquisition, or disposal is also part of internal control. Internal Controls The term internal controls refers to the overall operating framework of Policies, Practices, Systems, Management Philosophy, Values and Actions which exist in an organization to ensure that a.        Essential organization Objectives are met; b.       Assets are protected and Risks are managed; c.        Legal requirements are met; d.       Information used to report is accurate To devise and maintain an adequate system of internal control for the operations of entity is the responsibility of management. Internal controls are the overall me...

Corporate Social Responsibility (CSR) The Companies Bill, 2012 passed by Lok Sabha recently would come into force after its approval by Rajya Sabha and assent by the President of India. The new law will have far reaching effects. In recent years, increasing attention has been given to the concept of Corporate Social Responsibility (CSR), defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations . CSR is not new to India, companies like TATA and BIRLA have been imbibing the case for social good in their operations for decades long before CSR become a popular cause. Inspite of having such life size successful examples, CSR in India is in a very nascent stage. It is still one of the least understood initiatives in the Indian development sector. It is followed by a handful of public companies as dictated by the very basis of their existence, and by a few private companies, with international shareholding as this i...

List of Documents Required for Registration 1.        Pan Card Copy –Company/Firm/proprietor 2.        Pan Card Copy –Authorized signatory of Firm/Company 3.        Ground Plan of Factory(which should also provide description of boundaries of premises to be registered) 4.        List of Directors in case of Company, Partners in case of Firm 5.        Memorandum and Articles of Association/Partnership deed 6.        General power of attorney (in case application is signed by authorized agent) 7.        PAN card copy of directors/partners other than signatories 8.        Address proofs of the factory premises like: a)       Copy of purchase agreement along with electricity bill, water bill etc., if factory i...

Registration Procedure under Central Excise Who are Liable to register As per the Central Excise Rules 2002 as amended time to time by way of notifications., rule 9 “Manufacturer of excisable goods or any person who deals with excisable goods are required to get the premises registered with the Central Excise department before commencing business”. On first time  reading this definition  the first thing comes in my mind that the coverage of rule 9 is wide and it even covers all those who are in to manufacture or dealt with excisable goods like a wholesaler or a retailer or a individual who  buys goods for sale/resale or own consumption. But when gone through detailed  It give me the Impression “manufacturers’ of excisable goods or any person who deals with excisable goods, with some exceptions, are required to get the premises registered with the Central Excise Department before commencing business” So there are some exceptions also provided that “a perso...

ZERO DUTY EXCISE ROUTE-Garment The Union Budget 2013-14 presented by the India’s Finance Minister P Chidambaram has brought cheer for the textile and garment industry by providing them “ Zero excise duty route ”, as existed prior to Budget 2011-12, is being restored on ready-made garments and made ups (for cotton and spun yarn sector at the yarn, fabric and garment stages). The zero excise duty route will now be available in addition to the CENVAT route under which manufacturers can pay excise duty on the final product and avail of credit of duty paid on inputs. In the case of cotton there will be zero duty at the fiber stage also; and, in the case of spun yarn, there will be a duty of 12% at the fiber stage. Position prior to Budget 2013-14  Excise was levied on readymade garment by the budget 2001 prior to that these are out of the scope of excise. Excise duty levied @ 16% ad valorem on readymade garments and these are falling under Chapter 62 of the Fi...

INVESTMENT IN PPF Only an individual resident to India can open PPF account this facility is not available to NRI’s , also not available to HUF and AOP’s.There are multiple reasons why we invest in PPF but here I am listing down some  reasons which make it a good investment and an option which creates wealth. This is the only account which is free from court attachment. We also can invest on the name of minor and when the minor becomes major he or she might have a good fortune without any liability or fear of attachments. PPF account opening process is very simple and hassle-free. Investor can subscribe to scheme through Post Office or through banks appointed by Government. To open a PPF account, investor has to visit any of the banks/Post Office and submit account opening form and other documents. Some banks also offers online opening of accounts.   Interest rate applicable from April 1 st 2013 is 8.7% earlier it was 8.8%. -     ...

Audit under Different Statute As of we all know that every act has its own type of audit like VAT Act has VAT audit, Service Tax Service Tax Audit, Excise act Excise audit, 2000 and income tax act has Tax Audit. These all are tax audits but every audit has different aspects for it and only the audit done u/s44AB of income tax act is known as Tax Audit. In every statute/ act there are some specific sections which defines the criteria and limit applicable to any entity falls in the preview of that statute/act.  Like income tax act speaks about tax audit of business and profession u/s 44 AB, Excise act also prescribe Audit under it likewise all other statute  VAT ,Service Tax Company Act has specific sections directing an Audit. 1.        Income Tax Audit 2.        Excise Audit 3.        Company Law Audit 4.        VAT Audit 5.   ...