A private limited company is a type of Business Constituent wherein the liabilities of the members are limited to the extent of unpaid amount of shares. The minimum number of members to start a Private Limited company is 2 and maximum 200. It is a separate legal entity with the name ending with Private Limited.
Incorporation of Company starts with getting DIN for directors, applying for company name, drafting MOA & AOA, filing of forms along with necessary documents with ROC and finally getting Certificate of Incorporation.
Minimum number of members required to incorporate a Private Limited Company is 2.
Minimum capital requirement for Incorporating Private Limited Company is ₹1,00,000(One Lakh).
For change within the city limits, a Company by passing Board resolution can change the address of the registered office within the limits of the same city, town or village. An intimation of the change shall be given to Registrar in Form INC.22 along with copies of resolution and address proof.
A new director can be appointed by shareholders in general meeting of the company. If company wants to appoint a person as director in meeting other then General meeting, Company can do this by appointing such person as additional director.
The existing Board of Directors have the power to appoint additional director. The additional director appointed shall hold office till date of next Annual General Meeting (AGM )or last date on which AGM should have been held, whichever is earlier
The first meeting of the board shall be conducted within 30 days from the date of incorporation. Minimum 4 meetings of Board of director to be conducted in a year and maximum gap between two meetings should not be more than 120 days.
A Company may hold AGM within 9 months from the end of its first financial year for new companies and within 6 months from the end of the financial year for other companies.
Incorporation of LLP starts with getting DIN for designated partner, applying for company name, drafting LLP agreement, filing of forms along with necessary documents with ROC and finally getting Certificate of Incorporation.
Applicant needs to file Form 49A along with address proof and ID proof with TIN facilitation center.
Application in Form 49B needs to be filed for getting TAN registration.
Partnership firm comes to existence by executing Partnership Deed. The partnership deed should be executed in Rs.300 stamp paper and needs to be signed by all partners.
Partners can get their Firm registered with District Registrar of Firms in Form No.1 and get the registration Certificate.
Any dealer who purchases, sells, supplies or distributes the goods in the course of his business for consideration within needs to get registered under TNVAT. Dealer needs to apply for registration through online Portal with following documents
ProprietorshipA dealer can get his branch registered within Tamilnadu by applying Branch RC through online portal along with Rental agreement of the premises and EB copy/Tax receipt.
A dealer can generate C form and F form through Online portal of TNVAT based on the monthly returns filed.
A dealer whose total turnover in respect of purchase and sale within the State is not less than ten lakhs of rupees and other dealer whose total turnover in a year is not less than five lakhs of rupees shall submit an application for registration under TNVAT Act within thirty days.
The due dates are as follows
Monthly VAT return - 20th of the following month
Monthly Luxury Tax retrun - 10th of the following month
Form W for refund - Within 6 months from the date of Export
Form WW VAT audit - 31st December every year
No only one registration per PAN is allowed since registration is linked to PAN.
Every dealer who has effected Zero Rated sales (Export U/s.5(1), 5(3)) can apply for refund of VAT paid on local purchases by filing Form W within 180 days from the date of Sales.
There is no luxury tax for room rent upto Rs.499. Beyond that the slab of 10% luxury tax for rent upto Rs.1000 and 12.5% luxury tax for rent beyond Rs.1000.
The due date for filing Luxury Tax return under TNVAT in Form I, II, III is 10th of the following month.
Every registered dealer whose turnover including zero-rate sale and sale in the course of inter-state trade or commerce as specified in Section 3 of the Central Sales Tax Act, 1956 in a year, exceeds one crore rupees shall get his accounts audited by an Accountant and submit the report in Form WW to the Assessing authority within 31st December.
| S.No | Quarter ending | Due date for e-TDS | Due date for e-TCS |
|---|---|---|---|
| 1 | 30th June | 31st July of the financial year | 15th July of the financial year |
| 2 | 30th September | 31st October of the financial year | 15th October of the financial year |
| 3 | 31st December | 31st January of the financial year | 15th January of the financial year |
| 4 | 31st March | 31st May of the financial year | 15th May of the financial year |
| Particulars | Frequency | Due date - Paid Physically | Due date - Paid Online |
|---|---|---|---|
| Individual/ Partnership Firm | Quarterly | 5th of the following quarter | 6th of the following quarter |
| Others | Monthly | 5th of the following month | 6th of the following month |
| Period | Service Tax Retrun |
|---|---|
| April to September | 25th October |
| October to March | 25th April |
Service tax are required to be paid on all services except those mentioned in negative list. However, Small scale service provider can avail exemption in case the aggregate taxable turnover does not exceed ₹10,00,000(10 lakhs) in a financial year.
| S.No | Half yearly Salary/Income | Tax |
|---|---|---|
| 1 | Up to ₹21,000 | Nil |
| 2 | ₹21,001 – ₹30,000 | ₹127.00 |
| 3 | ₹30,001 – ₹45,000 | ₹317.00 |
| 4 | ₹45,001 – ₹60,000 | ₹634.00 |
| 5 | ₹60,001 – ₹75,000r | ₹950.00 |
| 6 | Above ₹75,000 | ₹1250.00 |
There is no legal formality to form a Proprietary Concern. Proprietor can start the business by opening a Bank account.
| Particulars | Sole Proprietorship | Partnership | Private Limited |
|---|---|---|---|
| Formation | No legal formalities | Minimal legal formalities | More legal formalities |
| Members | Owner | Minimum 2, Maximum 20 | Minimum 2, Maximum 200 |
| Liability | Unlimited | Unlimited | Limited to the extent of unpaid amount of Share capital |
| Controls and Management | Proprietor takes all decision | Partner takes all decision with the consent of all partners | Separation between ownership and management |
| Compliance | Minimum Compliance | Minimum Compliance | Vast Compliance |
| Governing Act | None | Indian Partnership Act, 1932 | Companies Act, 2013 |
| Income tax | Slab Rate applicable | Flat Income tax rate of 30% and AMT @ 18.5% | Flat income tax rate of 30% and MAT @ 18.5% |
| Transparency | Very less | Very less | More |
| Service Tax Payment | Quarterly | Quarterly | Monthly |
| Entry Exit | Easy | Easy | Difficult |
| Cost of formation and maintenance | Less Expensive | Less Expensive | Expensive |
| Particulars | Due date |
|---|---|
| For Individual, HUF, LLP and partnership firm whose accounts are not required to be audited U/s.44AB | 31st July |
| For Individual, HUF, LLP and partnership firm whose accounts are required to be audited U/s.44AB and Companies | 30th September |
For Men and women Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto ₹ 2,50,000 | Nil |
| Income between ₹ 2,50,001 - ₹ 500,000 | 10% of Income exceeding ₹ 2,50,000 |
| Income between ₹ 500,001 - ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
For Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto ₹ 3,00,000 | Nil |
| Income between ₹ 3,00,001 - ₹ 500,000 | 10% of Income exceeding ₹ 3,00,000 |
| Income between ₹ 500,001 - ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
For Senior Citizens (Age 80 years or more)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto ₹ 5,00,000 | Nil |
| Income between ₹ 500,001 - ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
| S.No | Due date of Installment | Amount Payable |
|---|---|---|
| 1 | On or Before 15th June | Not less than 15% of Advance tax liability |
| 2 | On or Before 15th September | Not less than 45% of Advance tax liability as reduced by amount, if any, paid in earlier installment |
| 3 | On or Before 15th December | Not less than 75% of Advance tax liability as reduced by amount, if any, paid in earlier installment |
| 4 | On or Before 15th March | 100% of Advance tax liability as reduced by amount, if any, paid in earlier installment |
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