Balance Sheet Finalization - Quick completion check list

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New partner in an existing partnership (Partnership Deed)

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THIS DEED is executed on this _____ day of ________ between:
Sh.________________ s/o, Sh. __________________, r/o of _________________________, 

Sh.________________ s/o, Sh. __________________, r/o of _________________________, (hereinafter referred to as "the existing Partners") of the one part 
Sh.________________ s/o, Sh. __________________, r/o of _________________________, hereinafter referred to as "the new partner") of the other part
The existing partners and the new partner hereinafter collectively referred to as the "Parties". 
1. The existing Partners have been carrying on the business of ___________ in partnership together at under the firm name M/s _______________ vide terms of a deed of partnership dated ____________ (hereinafter called "the existing partnership business").

2. Sh. __________ has expressed his desire to join the existing partnership business as the new partner and is ready to contribute a capital of Rs.__________

3. The existing Partners have agreed to introduce Sh. __________ as the new partner in the existing partnership business on the terms and conditions hereinafter appearing.

1. Term of Partnership
The partnership hereby constituted (hereinafter called "the new partnership") shall be deemed to have commenced on the day of ____________ and from such date the deed of partnership dated _________shall be superseded by this deed and shall continue unless otherwise determined by the Parties. 

2. Name
That the business of the Partnership shall be carried on under the same name and style as that of the existing partnership business i.e. M/s ____________________. 

3. Place of Carrying Business
That the business of Partnership shall be carried from ________________________ or any other place as may be agreed upon by the Parties.

4. Capital Contribution & Interest on Capital
The capital of the new partnership shall be Rs. __________ whereof Rs.________ represents the capital of the existing partnership contributed by the partners and the balance of Rs ________ shall be contributed by the new partner __________ as his share. However, further funds required for the new Partnership shall be contributed or arranged by the Parties equally and in such manner as may be mutually agreed upon by and between the Parties from time to time. Interest at the rate of ____ percent per annum or as may be prescribed under Section 40 (b) of the Income Tax Act, 1961 or any other applicable provisions as may be in force under the Income tax assessment of Partnership firm for the relevant accounting period shall be payable to the Parties on account standing to the credit of the account of the Parties. Such interest shall be calculated and credited to the account of each partner at the close of each accounting year. However, in case of loss or lower income, rate of interest can be nil or lower than ____ percent as may be agreed upon by and between the Parties from time to time. 

5. Remuneration
That the new partner shall also be a working partner in the firm and he shall be entitled to a remuneration of Rs. ________ per month which shall be paid by the __th of each month. The Parties shall be entitled to increase or reduce the above remuneration as may be agreed upon from time to time by and between the parties. 

6. Drawings by Partner
The new Partner shall be entitled to draw (in addition to the remuneration as per clause 4) out of the partnership business any sum or sums of money not exceeding Rs. ________ per month for his own use, such sums to be duly accounted for on each succeeding settlement of accounts and division of profits of the partnership and if any excess drawings is found on any such settlement, the same shall be refunded by the new partner concerned (with interest at ___% per annum).

7. Debts of Old Partnership
All the debts and liabilities of the existing partnership shall be discharged by the existing partners and they shall indemnify and keep indemnified the new partner and also the assets and the properties of the new partnership against such debts, liabilities and against all proceedings, costs, claims and expenses in respect thereof;

8. Profits of Old Partnership
All the profits of the existing partnership up to the commencement of the new partnership shall belong to the existing partners only in the proportions in which they would be entitled thereto vide the terms of deed of partnership dated ________

9. Profit Sharing Ratio of new partnership
That profits or losses of the new Partnership (including losses of capital nature, if any) shall be divided amongst and borne by the Parties in proportion to their respective shares in the new partnership.

10. Deed of Partnership dated _____ to remain in force
All the terms of the deed of partnership dated _______, except those as has been modified by this deed, shall remain in force and shall have effect as if the same have been executed by the parties hereto. 
IN WITNESS WHEREOF,the parties have set their hands this ____________ day of __________.

The Existing Partners

The New Partner


Basics of Investing in Shares

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This article is about the basics of investing in shares. It is a well known fact that the markets have outperformed other asset classes such as property over time. Investing in shares offer tax benefits, diversification, flexibility and control over your own financial future. Buying a share (or in other words the stock) means that you are buying a share of the company. You own a share of the profits, which are handed down to shareholders through dividends and you can also see capital growth as share price increases. The company benefits from listing on the stock market as they can finance their business or an expansion plan without needing to borrow money.

But before you jump into investing into any company shares, here are a few important questions to ponder and answer to help assess your own financial situation and your financial goals for the future: What is the outcome that you want to achieve from investing in shares? What kind of return would you like? Income from company dividends or capital growth? Are you aware of the risks? And are you prepared to take the risk of investing your capital in the share market for the opportunity for a return?

Starting capital for investing in shares can vary greatly: but if you are looking to start with the minimal amount, you can start investing from $500 plus brokerage costs. However, most people start with $2000.

Another part of a sound comprehensive investment plan (of which investing in shares is one component) is considering your time frame as well as your age. For example, someone who is young have the time to risk a little more (since they have time to recover any major losses) but may have limited capital to invest with. Older people have less time to correct any major loss, hence have to choose more secure investments but are more likely to have more capital to play with.
Holding shares and investing in stocks may have tax implications and you may be eligible for some tax benefits. When companies have paid tax on their profits, as the dividends are distributed to the shareholders, tax credits which are called franking credits are included per share. The franking credits can then be used to offset the tax payable on your other income. Another tax benefit that may be available to you is a 50 percent discount on capital gains payable if you hold your shares for longer than 12 months. Please obtain professional advice from your accountant which suits your particular circumstances.

Investing in shares allows you the investor to diversify. This will spread your risk and you may choose to distribute your risk over different industry sectors such as financial services, healthcare or the risky exploration sector.

Another benefit in investing in shares is that you basically have flexibility of choice: you can buy or sell shares quickly as you please. For highly liquid shares, once you execute a sell order, you have access to your cash within two days. Compared to other investment classes (such as real estate) it may take much longer to exchange or liquidate your investment into cash.

Finally, choosing to invest in shares you've basically put yourself into the driving seat of your financial future. You've got the steering wheel and you are in charge of controlling your financial future - you have the responsibility of choosing where your investment capital will be placed and for how long. You may also choose to use a full service broker to give you further advice.


Company Incorporation Amendment Rules 2015 Highlights

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1.  Rule 5 for penalty on One person Company has been omitted and replaced with Rule 7A where the penalty is reduced from Rs. 10,000/- to Rs. 5,000/- and from Rs. 1,000/- to Rs. 500/- respectively.

2. In these rules, the words "having paid up share capital of fifty lakhs rupees or less or average annual turnover" has been replaced everywhere with "having paid up share capital of fifty lakhs rupees or less and average annual turnover".

3. In rule 16 (1) (q), the promoter or first director can self-attest his signature and photograph in INC 10.

4. Integrated process of incorporation:

Rule 36 has been inserted for the integrated process of incorporation of a company w.e.f. 01.05.2015.

The application of allotment of DIN up to 3 directors, reservation of name, incorporation of company and appointment of directors shall be filed in INC 29 for one Person Company, Private company, public company and Producer Company can be filed.

With the registration fee specified in Companies registration of offices and fees rules 2014, Rs. 2,000/- will be extra paid along with Form INC 29. 

Only one name can be proposed in the Form INC 29.

MOA and AOA will be prepared in the templates given in INC 30 and 31 respectively.

The proof of registered office also will be attached with INC 29 as happens in INC 22. No separate INC 22 is required to be filed in that case.

If the registered office and correspondence office will be same, then no need to file INC 28.

Two resubmissions shall be allowed in case of INC 29 and time given shall be 15 days for every resubmission. After 2 resubmissions, if the form will have certain defects, then the form shall be rejected.

COI will be issued in INC 11.

5. New and updated INC 7, 10, 11, 22, 29, 30, 31 are attached with these rules too.


Form 10 F Format ~ section 90 A of the Income-tax Act 1961

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[See sub-rule (1) of rule 21AB]

Information to be provided under sub-section (5) of section 90 or sub-section (5) of section 90A of the Income-tax Act, 1961

I ………………. *son/daughter of Shri ………………. in the capacity of ………………. (designation) do provide the following information, relevant to the previous year ………………. *in my case/in the case of ………………. for the purposes of sub-section (5) of *section 90/section 90A:-

Sl.No. Nature of information Details
(i) Status (individual; company, firm etc.) of the assessee

(ii) Permanent Account Number (PAN) of the assessee if allotted

(iii) Nationality (in the case of an individual) or Country or specified territory of incorporation or registration (in the case of others)

(iv) Assessee’s tax identification number in the country or specified territory of residence and if there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the assessee claims to be a resident

(v) Period for which the residential status as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A is applicable
(vi) Address of the assessee in the country or territory outside India during the period for which the certificate, mentioned in (v) above, is applicable

2. I have obtained a certificate to in sub-section (4) of section 90 of sub-section (4) of section 90A from the Government of ………………. (name of country or specified territory outside India)

Permanent Account Number:……………….


I ………………. do hereby declare that to the best of my knowledge and belief what is stated above is correct complete and is truly stated.

Verified today the ………………. day of ………………..

Signature of the person providing the information

Notes :
1. *Delete whichever is not applicable.
2. #Write N.A. if the relevant information forms part of the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.


Penalties under Companies Act 2013

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Penalties under Companies Act 2013

Section        Particulars Who is liable Amount of Penalty
119(3) Default in allowing inspection of minutes of
general meeting or resolution passed by postal ballot
Company Rs.25,000/-
Officer who is in
136(3) Default in sending copies of audited financial
statement to members and its inspection
Company Rs.25,000/-
Officer who is in
140(3) Retirement of Auditor Auditor Rs. 50,000/- to Rs. 5 Lakh
157(2) Intimation of DIN Company/Officer Rs. 25,000/- to Rs. 1 lakh
173(4) Default in giving required notice of Board meeting Every person whose duty is Rs.25,000/-
184(4) Disclosure of Interest Director Rs. 50000 to Rs. 100000
and/or Imprisonment
Upto 1 year
189(6) Default in keeping register of contracts or arrangements in which directors are interested and disclosure by directors of their interest Every director Rs.25,000/-
190(3) Default in keeping contract of service with MD
and WTD and allowing its inspection
Company Rs.25,000/- for each default
Officer who is in
Rs.5,000/- for each default
352(8)(a) Company Liquidator retaining money without
depositing it in Company Liquidation Dividend and Undistributed Assets Account
Liquidator Such amount as may be
determined by ROC.

Specimen Resolution of Board of Directors – For Appointment of Cost Auditors

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Specimen Resolution of Board of Directors – For Appointment of Cost Auditors

Extract from minutes of the meeting of the Board of Directors M/s _______________Ltd. held at the _______ office of the Company on _(date)_____ at ---------- am / pm.
RESOLUTION NO. ---------------------

Company Secretary tabled the Companies (Cost Records and Audit) Rules, 2014 (GSR 425) dated 30.6.2014 as amended by Companies (Cost Records and Audit) Amendment Rules, 2014 (GSR 01) dated 31st December, 2014 issued by Ministry of Corporate Affairs (MCA), whereby the Company is required to arrange for audit of its cost records for the year 2014-15.

The Chairman informed the Board that the audit Committee has recommended for appointment of M/s _________________, Cost Accountants, who have given their consent to act as Cost Auditors and laid on the table the consent letter received from them.

After discussions the Board decided to appoint the said Cost Auditors, and “Resolved that, pursuant to section 148 (3) of the Companies Act, 2013 and rule 6(2) of the Companies (Cost records and Audit Rules) 2014 M/s _________________, Cost Accountants (Registration No. _____) be and are hereby appointed as the Cost Auditors of the company to conduct audit of cost records made and maintained by the company pertaining to …………………(products / services) for financial year commencing on 1st April, 2014 and ending on 31st March, 2015 at a remuneration of Rs. _________ (Rupees __________________ only) plus Service Tax & re-imbursement of out–of– pocket expenses.

Further Resolved that the said appointment of the Cost Auditor should be included as an Agenda item at the next General Meeting of the members of the Company for ratification of the remuneration payable to the Cost Auditors by the members of the Company.

Further Resolved, that the secretary or any one of the director of the company be and is hereby authorised to submit the necessary intimation in Form CRA-2 to the Central Government for appointment of Cost Auditors by the Company and to do all such other acts as may be necessary from time to time to make the Resolution effective.”
The Board noted that none of the directors of the Company are interested in their appointment


Amendments In Service Tax Rate from 1st June, 2015

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Following provisions will come into effect from 1st June, 2015.

2.1 Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015. The rate of Service Tax is being increased from 12% to 14% (including cesses). The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers)

2.2 Sections 153 and 159 of the Finance Act, 2015 provide that section 95 of the Finance (No.2) Act, 2004 and section 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess, respectively, on taxable services, shall cease to have effect from a date to be notified by the Central Government. The above provisions levying Education Cess and Secondary and Higher Education Cess should also cease to have effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19th May, 2015 refers), that is the date with effect from which the increase in the Service Tax rate comes into effect.


Declaration u/s 194C(6) for non-deduction of tax at source (Sample)

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Declaration u/s 194C(6) for non-deduction of tax at source


__________ (Name of the Payer)

__________  (Address of the Payer)


I, ________, Proprietor / Partner / Director of M/s _________________ (name and address of Payee) [hereinafter “the contractor”] do hereby makes the following declaration as required by sub section (6) of Section 194C of the Income Tax Act, 1961 for receiving payments from the payer without deduction of tax at source:-

1. That I/We am/are authorized to make this declaration in the capacity as proprietor/partner/director.

2. That the contractor is engaged by the payer for plying, hiring or leasing of goods carriage* for its business.

3. That the contractor does not own more than 10 goods carriage* as on date.

4. That if the number of goods carriages* owned by the contractor exceeds ten at any time during the previous year 2015-16 (i.e. 01.04.2015 to 31.03.2016) or after furnishing this declaration, the contractor shall forthwith, in writing intimate the payer of this fact.

5. That the Income Tax Permanent Account Number (PAN) of the contractor is ____________ . A self-attested photocopy of the PAN is furnished to the payer along with this declaration. 

Place : ______

Date : _______                                                                             (Name of Declarant)


I, the above named declarant do hereby verify that the contents of the above paragraphs one to five are true to the best of my knowledge and belief, and no part of it is false and nothing material has been concealed in it.

Place :


(Name of Declarant)

* Goods Carriage” means any motor  vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage. [Explanation (a) to subsection (7) of Section 44AE read with Explanation (ii) of Section 194C and  Section 2 of the Motor Vehicles Act, 1988.]