Registration for FBO (Food Business Operator)

How to Apply for License/Registration of FBO (FOOD BUSINESS OPERATOR)?

Payment Criteria of Fees

Fees for Grant/Renewal of License/Registration

The fees paid by any applicant for a license shall not be refundable.

Issue of Duplicate Registration or License

Documents to be enclosed for New Application for License to Central / State Licensing Authority

Details of Documents		Mandatory for whom
1.FORM B	Signed by the proprietor/ partner or the authorised signatory.( in duplicate).	All.
2.BLUE PRINT/ LAYOUT OF PROCESSING UNIT	Showing dimensions in metres/square metres and operation-wise area allocation.	Manufacturing and processing units.
3.LIST OF DIRECTORS	Full address and contact details.	Companies only.
4.LIST OF EQUIPMENTS AND MACHINERY	Number of machines, installed capacity and horse power used.	Manufacturing and processing units.
5.IDENTITY PROOF	Photo ID and address prooF  of Proprietor/Partner/Directors/Authorised Signatory.	Optional.
6.FOOD CATEGORY	Category of food which is to be manufactured.	Manufacturer.
7.AUTHORITY LETTER	Name and address of responsible and alternative person nominated by manufacturer.	Manufacturing and processing units.
8.ANALYSIS REPORT	Water must be analysed which is to be as an ingediant in food from recognised/health laboratory.	Manufacturing and processing units.
9.POSSESSION PROOF OF PREMISES.	Sale deed/ Rent agreement/ Electricity bill, etc.	Optional.
10.PROOF OF CONSTITUTION	Partnership Deed/Affidavit/Memorandum & Articles of Association.	Optional.
11.CERTIFICATE	Copy of certificate obtained under Coop Act - 1861/Multi State Coop Act – 2002.	Cooperative only.
12.NO OBJECTION CERTIFICATE	Manufacturer.	Re-labellers and Re-packers.
	Municipality or local body.	Optional.
13.PLANS	FOOD SAFETY MANAGEMENT SYSTEM PLAN OR CERTIFICATE.	Optional.
14.RECALL PLAN	Details on whom the product is distributed.	Optional.
15.SOURCES	Milk or procurement plan for milk including location of milk collection centre’s etc.	Milk and Milk Products processing units.
	Raw material for meat and meat processing plants.	Meat processing plants.
16.PESTICIDE RESIDUES REPORT	Report of water  from a recognized/ public health.	Packaged drinking water, packaged mineral water and/or carbonated water manufacturing unit.

Documents to be included for  Renewal or Transfer of License given under other existing laws prior to these Regulations

• Any change in documents or information provided during grant of previous license (Mandatory).
• List of workers with their medical fitness certificates .
• Name, qualification and details of technical personnel in charge of operation(Mandatory for manufacturing & processing units)
• Certificate or Plan of Food Safety Management System being adopted.

Contributed by:

Ms. Tanya Gagneja

(Article Assistant)

Sandeep Ahuja & Co.

10 STEPS FOR ONLINE FILING OF TDS CORRECTION STATEMENT

Online Filing of TDS correction is enabled from Financial Year 2013-14. Presently online filing of TDS Correction has been enabled only for two types of corrections i.e PAN and Challan Correction. Without Class II & Class III Digital Signature we would not be able to file online correction.

Step 1: Log in to Traces website www.tdscpc.gov.in using User ID & Password if the deductor is already registered otherwise first register yourself on traces.

Step 2: Register your Digital Signature and Go to Default menu & Select “Request for Correction”.

Step 3: Select the Correction Category, Form type, Quarter &Financial Year for which correction is sought.

Step4: Enter Token No. of the Quarter whose correction is to be filed & Click on “Submit Request”.

Step5: After submission of request a request number is received. This request no.  would be required to  track correction request.

Step6: Go to “Default” menu & Select “Track Correction Request”. There are two options of tracking request status.

            Option 1: Here you can track the correction request status only if you have the request no. with you.

            Option 2: Here no such request no. is required. Only by selecting the request period you can get the details of                                         request status.

Step7: When the Status shows”Available” then only we can file correction. Click on “Available” user will be navigated to                File Correction page and correct the Pan or Challan.

Step 8: In “Action summary” user can view the Corrections made by him just by Clicking on “View Corrections”.

Step 9: After that click on “Confirm” to submit the correction & Select option “Correction Ready for Submission”

Step10: Click on Submit for Processing & Confirm it by authenticating with Digital Signature of the person whose has deducted the tax. A message regarding confirmation of submission and new token number would be appeared in this message.

Contibuted by Shiwali Shukla, CA Finalist, Article at Sandeep Ahuja & Co

No TDS on Service Tax Component for payment to resident

No TDS on Service Tax Component for payments to resident

Circular No. 01/2014 issued by CBDT on 13 January 2014 :  CBDT Clarified that TDS is not required to be deducted on the Service tax component comprised in the amount payable to a resident if Service tax has been charged separately wherever so provided by the agreement/ contract between the payer and the payee.

Earlier it was restricted to Service tax on Rent Only as per Circular No 4/2008 dated 28 April 2008. In above mentioned circular CBDT clarified that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax. 

Correction in Tax Challans Paid online or physical

For rectifications in challans paid through online mode (internet challan)

Taxpayer may contact their concerned Assessing Officer (AO) of the Income Tax Department (ITD).

For correction - Contact TIN call centre at 020 - 27218080 or write to tininfo@nsdl.co.in Indicating the subject of the mail as Online Payment of Direct Tax.

For rectifications in challans paid physically through Banks.

NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN.

The fields that can be corrected by the Taxpayer through Bank are tabulated below:

Sl. No.	Type of Correction on Challan	Period for correction request (in days)
1	PAN/TAN	Within 7 days from challan deposit date
2	Assessment Year	Within 7 days from challan deposit date
3	Total Amount	Within 7 days from challan deposit date
4	Major Head	Within 3 months from challan deposit date
5	Minor Head	Within 3 months from challan deposit date
6	Nature of Payment	Within 3 months from challan deposit date

v  Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank.

Procedure:

 The tax-payer  has to submit a separate request form (in duplicate) for each challan to the concerned bank branch along with the following :

i. Copy of original challan counterfoil or Challan Copy

ii. copy of PAN card ( If correction desired for challans in Form 280, 282, 283)

 iv. The original authorization with seal of the non-individual taxpayer ( If correction desired for payments made by a tax-payer other than an individual)

Conditions:

The changes can be made by the banks, subject to following conditions:

i. Correction in Name is not permitted.

ii. Any combination of correction of Minor Head and Assessment Year together is not allowed.

iii. For a single challan, correction is allowed only once. However, where 1^st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.

iv. There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.

TDS on Immovable Property (Sec 194-IA)

What is TDS on Immovable Property?

As per Finance Bill 2013 Buyer of Immovable Property (Other than rural agricultural land) is required to deduct tax on the rates applicable from the sales consideration payable to RESIDENT Transferor provided the sales consideration is equal to or more than Rs.50 Lacs.

What is the applicability of Section 194IA?

Section 194IA would be applicable if any of the following conditions are satisfied:

1.       If the transaction of sale is occurred on or after 1^st June 2013 & sales consideration is equal to or exceeding Rs. 50 Lacs.

OR

2.      If the advance consideration received before 1^st June 2013 is equal to or exceeding Rs. 50 Lacs but sale agreement is made after 1^st June 2013.

Whether Sec 194IA would be applicable on Non-Resident Indian [NRI]?

No, sec 194IA would not be applicable on Non Resident Indians [NRI’s]. For information on purchase of property from NRI’s, read our article here.

When is Tax to be deducted?

·         Tax shall be deducted at the time of payment or at the time of giving credit to transferor, whichever is earlier.

·         If any advance payment is being made, then tax is to be deducted at the time of such payment.

·         If the payment is made in installments then tax is to be deducted on payment of each installment.

What is the Rate at which the Tax is to be deducted?

The Tax is deductible @ 1% of the consideration payable to resident transferor [if valid PAN is quoted].

If the seller does not provide valid PAN, then the tax is deductible @ 20%.

What is the Due date for deposit of Tax Deducted?

The tax deducted is required to be deposited on 7^th of the following month in which the tax is deducted except for the tax deducted in the month of March. In case the tax is deducted in the month of March then due date for deposit is 30^th April.

How to Deposit the Tax deducted by the buyer?

The tax deducted is to be deposited by challan cum statement on Form 26QB. You can print the challan from here.

Whether the TDS is applicable if the Property is held by Joint Owners?

In case the property is held by joint owners, the provisions of Sec 194IA will still be applicable because the threshold limit of Rs. 50 Lacs is property-wise and not transferee-wise.

Whether PAN of Seller is mandatory?

Permanent Account Number (PAN) of the seller as well as buyer should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction. If the PAN of seller is not filled or wrongly filled, then TDS would be deducted @20%.

What is the Procedure of depositing the Tax Deducted?

1.       The buyer has to fill the details of buyer and seller in Form No. 26QB.

2.       After that, the buyer has to remit the tax deducted electronically.

3.       On receipt of payment confirmation, a nine digit alpha numeric acknowledgement no. would be generated and such acknowledgement no. is to be kept by the buyer.

4.       On successful payment, a challan containing CIN and payment details would be generated. Print this as it will be required at the time of registration as Tax Payer.

What would be the implications if the Tax deducted is not deposited within due date?

In case of failure to deposit the tax deducted, interest and penalty would be levied on the purchaser.

Interest will be charged @ 1.5% per month or part of the month from the date of deduction to date of actual deposit. 

What is to be done after depositing the Tax deducted?

The buyer is required to issue Form No. 16B [TDS Certificate] to the seller of immovable property within fifteen days from the due date of deposit of tax, so that the seller would be able to take the credit of tax deducted.              

How to Download Form 16B?

Firstly the buyer is required to register himself as tax payer on TRACES [https://www.tdscpc.gov.in/]

The tutorial for registering on traces can be downloaded here.

The tutorial for downloading Form 16B can be downloaded from here.

What information is required for registration as Tax Payer on TRACES?

1)      PAN of Buyer

2)      Date of Birth/Date of Incorporation of Buyer

3)      Name of Buyer [Complete name including surname]

4)      Particulars of Tax Deducted*

(a)    TAN of Deductor

(b)   Type of Deduction

(c)    Month & Year of Deduction

(d)   TDS/TCS Amount

5)      Particulars of Challan Deposited*

(a)    Asst. Year in which Challan is deposited

(b)   Challan serial No.

(c)    Amount of Challan Deposited

6)      Complete Address of Buyer

7)      Mobile & Email id of Buyer

* The assessee may provide information for either Point 4 or 5.

What is the Information required to download Form 16B [TDS Certificate]? 

1)      User ID & Password of Tax payer

2)      TAN/PAN of Tax payer

3)      Acknowledgement No. of Buyer

4)      PAN of Seller

What is the Password to Open Form 16B?

The Password to Open Form 16B is Date of Birth/Date of Incorporation of Buyer.

- Contributed by Ms. Shiwali Shukla (Article Assistant)

Advance Tax Date Extended to 17th December 2013

The December instalment of Advance tax is required to be paid on or before 15th December, 2013 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are closed on 15th December, 2013, being a Sunday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th December, 2013 to 17th December, 2013. Taxpayers, therefore, can now pay their advance tax instalment by 17th December, 2013 without entailing any consequential interest for deferment.

Gurgaon Property Tax Calculator & Form

The Municipal Corporation of Gurgaon saw a huge rush at their office on 10th December, 2013, which was the last day to pay property tax and avail a rebate of 30%.

To ease the pressure and give Gurgaon residents some more time to pay their taxes, the MCG extended the Property Tax deadline to 31st December, 2013.

You can calculate your property tax and pay the same using the following tools and links:
1. Gurgaon Property Tax Calculator
2. Property Tax Rates
3. Property Tax Form in pdf
4. Property Tax form in doc

Mr. Sandeep Ahuja as Guest Speaker at Amity Law School, Noida

Amity Law School, Noida organized a workshop on Legal Entrepreneurship, initiated by the Ministry of Corporate Affairs on 26th February, 2013. The workshop was held to spread awareness among the students about investor protection measures in the financial markets, and to generate their interest in the field of taxation laws' practice.

Mr. Sandeep Ahuja was the guest speaker for the occasion and threw light on various provisions of the Direct Tax Laws, focusing on the scope of practice available in the field of direct taxation. He also answered queries related to investments and tax planning options available in the Income Tax laws.

Mr. Rajiv Bajaj, CFO of Panasonic AVC Networks India Co. Ltd. also spoke on the occasion about the various modes of raising finance in the Indian financial markets.

Image courtesy: www.amity.edu

Loan to Directors: Section 185 of Companies Act 2013

Section 185 of the Companies Act, 2013

Applicable from: 12^th September, 2013

Corresponding to: Section 295 of the Companies Act, 1956

Related to: Loan to Directors

Applicability: Both public and private limited companies

No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person.

Therefore, no loan can be advanced by a company to the following persons:

-          Director

-          Director of Holding or Subsidiary company

-          Partner or relative of any such Director

-          Any firm in which such Director or relative is partner

-          Any other company in which such Director is a Director

-      Any company or LLP in which not less than 25% of the total voting power may be exercised individually or jointly by any such Director(s)

-     Any company or LLP, the Board of Directors of which is controlled by any of the Directors of the lending company

Exemptions:

-          Loans to Managing Director in accordance with the terms of his appointment

-        Loans to Director as a part of loan to employees in accordance with the conditions of service applicable to all employees of the company

-          Loan pursuant to any scheme approved by the members vide special resolution

-        A company which provides loans in the ordinary course of business and interest in respect of such loans is charged at a rate not less than the bank rate declared by RBI

Penalties:

-        The company shall be punishable with fine which shall not be less than Rs. 5 lakh but may extend to Rs. 25 Lakhs

-     The Director or the other person to whom any loan is advanced or guarantee or security is given or provided in connection with any loan taken by him or the other person, shall be punishable with imprisonment which may extend to 6 months or with fine which shall not be less than Rs. 5 Lakhs but may extend to Rs. 25 Lakhs, or with both

Note: Meaning of Relative: spouse, lateral ascendants up to two levels i.e. father (including step father) and grandfather, mother and grandmother; lateral descendants on the son’s side up to two levels i.e son and son’s children, daughter (including step daughter), her husband and siblings.

Registers to be Maintained under the Payment of Bonus Act, 1965

Every employer is required to maintain the following registers in the prescribed form:

1. Register showing the computation of allocable surplus (Form A)
2. Register showing the set-on and set-off of the allocable surplus (Form B)
3. Register showing the details of the amount of bonus payable to each of employees, the amount of deductions if any, and the amount actually paid. (Form C)

The employer is also required to send an annual return to the Inspector appointed under the Act within 30 days from the expiry of time limit specified in Section 19 for payment of bonus. (Form D)