How to Strike off a Company or Winding up a Pvt. Ltd. Company in India

There are only three ways of Winding up a Company:-

  1. Winding up by the tribunal
  2. Voluntary Winding up(This part had been omitted in Companies Act, 2013 now this part is regulated by IBC,2016)
  3. If a Company has gained a status of defunct Company

Winding Up by the Tribunal

  • By Special Resolution resolving that company be wound up
  • Company has acted against the national Interest (Sovereiegnity,integrity,security etc.)
  • Defaulted in financial statements/annual returns for immediately preceding 5 Consecutive FY.
  • On application by the Registrar or any other person authorized by the Central Government.
  • On Just and equitable ground

In the above cases petition may be presented by:

  1. The Company
  2. Any Contributory or Contributors
  3. All or any of the persons specified in Clause (a) and (b)
  4. Any person authorized by Central Government in that behalf
  5. In case affairs of the company conducted in a Fraudulent manner, by the CG/SG

Winding up regulated by IBC (Voluntary winding up)

An application to the adjudicating authority (being the Tribunal-NCLT) for initiation of corporate insolvency resolution process can be made only when  there is a “default” in payment of debt by corporate person. In this regard, it is to be noted that term “default” has been defined in the code to mean non repayment of a debt, whether whole or in part, which has become due and payable by a corporate person. This would imply that, now under the Code, insolvency resolution proceedings can be initiated even against a financially solvent company having made a default in payments of its debts, since the same would fall within the purview of “default” under the code. Once the application for initiation of corporate insolvency resolution process is made and the same is accepted by the Tribunal, an insolvency professional is appointed for conducting the corporate insolvency resolution process.

Application under IBC can be made by:

  • Financial Creditor
  • Operational Creditor
  • Corporate Debtor

If a Company has gained a status of defunct company

Defunct company is a company which has:

1. Nil asset and nil liability, and

2. Not commenced any business or activity since its incorporation

or

Not been carrying any business operation since last one year.

The Companies Act, 2013 laid down the procedure for winding up a Defunct Company. A Defunct Company can be wind up with a fast-track exit (FTE) which requires submission of the STK-2 form. Hence, Form STK-2 is required in order to wind up a Defunct Company and there is no additional procedure for that. The form STK-2 needs to be filled with the Registrar of Companies and the same needs to be duly signed by the director of the company authorized by its board to do so.

All About New GST Return

  • The Govt.in 35th council meeting unveiled the new goods and services tax (GST) return forms and place a transition mechanism which allows taxpayers to try the new return filing forms during July-September, but it will become mandatory only from October.
  • The new return as been simplified by the government and the draft of the same has also been released along with some offline utilities.
  • Here is everything you need to know about the new monthly GST return filing mechanism:
  • New GST Return Due Date Applicability for Taxpayers Filing in Table
Month Form to be Filed Current Form Filing Turnover Limit
October 2019
January 2020  
GST ANX-1 GST RET 1 GSTR 1 GSTR 3B More Than 5 Crore
More Than 5 Crore
January 2020 GST ANX-1 GSTR 1 Up to 5 Crore
January 2020 GST RET 1 GSTR 3B Up to 5 Crore
October 2019 GST PMT 08 GSTR 3B Up to 5 Crore
  • Here turnover means  the turnover of previous fiscal year.
  • Now if your turnover is below Rs.5 crore and you choose to file return quarterly you have 3 options:-
  • (i) Sahaj
  • (ii) Sugam
  • (iii)Normal RET-01(It can be filed either monthly or Quarterly)

Here is the brief of all the New forms.

  • Form GST ANX-1  – Form GST ANX-1 contains the details of outward supplies, imports, and inward supplies attracting a reverse charge.
  • Form GST ANX-2- Based on GST ANX-1, filed by all, businesses will be able to download details of auto-drafted inward supplies in GST ANX-2. The trade will be required to accept, reject or keep in pending the ITC on inward supplies.
  • Form GST RET-01- After uploading details of supplies in FORM GST ANX-1 and taking action on the documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-1.  Information declared through FORM GST ANX-1 and FORM GST ANX-2 shall be auto populated in the main return (FORM GST RET – 1).Other than auto populated there are some more information which needs to be filled.
  • Form GST ANX 1 A- This form is to be filed for making amendments in form GST ANX-1
  • Form GST RET 1 A- The taxpayer has to file this form for making amendments in the form GST RET-1.
  • From January 2020 onwards, all businesses would shift to new return filing system with entities above Rs 5 crore turnover filing GST RET-1, GST ANX-1 and GST ANX-2. Those with turnover below Rs 5 crore in the previous financial year would have to file GST PMT-08, GST RET-01, GST ANX-1 & 2.

How to Check Income Tax Refund Status?

Want to check Income Tax refund status?  Taxpayers can view status of refund by following given below steps:-

There are two methods to check refund status:-

  1. Income Tax Website
  2. NSDL website

Previously, we could check refund status from income tax portal by following given steps: To view Refund/ Demand Status, please follow the below steps:

  1. Login to e-Filing website with User ID, Password, and Captcha.
  2. Go to My Account and click on “Refund/Demand Status“.
  3. Below details would be displayed. Assessment Year. Status. Reason (For Refund Failure if any)

METHOD 1 :- Through Income Tax Website

Step 1: Login to e-Filing website with User ID, Password, and Captcha

Step 2: Go to my account tab and click on “view e-filled Returns/Forms”

Step 3: Click on Income Tax Returns and submit:

Step 4:- Click on Acknowledgement no. :-

Step 5:- Given below screen will appear

METHOD 2 :- Now, refund status can be checked on NSDL website

Step1.  Go to https://www.tin-nsdl.com/

Step 2: Go to services tab & click on status of Tax Refunds

Step3:  Click on Status of TDS Refunds:

Step 4: Fill below details & click on proceed

This screen will display after clicking on proceed

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019-FAQs

Q.1. From which date this scheme will come into effect?

Ans-The effective date of the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 is 01.09.2019.

Q.2. What are the statutes covered under the Scheme?

Ans. This Scheme is applicable to the following enactments, namely:—

(a)   The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made thereunder;  
(b)   The following Acts, namely:—  
(i)   The Agricultural Produce Cess Act,1940;
(ii)   The Coffee Act, 1942;
(iii)   The Mica Mines Labour Welfare Fund Act, 1946;
(iv)   The Rubber Act, 1947;
(v)   The Salt Cess Act, 1953;
(vi)   The Medicinal and Toilet Preparations (Excise Duties) Act, 1955;
(vii)   The Additional Duties of Excise (Goods of Special Importance) Act, 1957;
(viii)   The Mineral Products (Additional Duties of Excise and Customs) Act, 1958;
(ix)   The Sugar (Special Excise Duty) Act, 1959;
(x)   The Textiles Committee Act, 1963;
(xi)   The Produce Cess Act, 1966;
(xii)   The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;
(xiii)   The Coal Mines (Conservation and Development) Act, 1974;
(xiv)   The Oil Industry (Development) Act, 1974;
(xv)   The Tobacco Cess Act, 1975;
(xvi)   The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;
(xvii)   The Bidi Workers Welfare Cess Act, 1976;
(xviii)   The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;
(xix)   The Sugar Cess Act, 1982;
(xx)   The Jute Manufacturers Cess Act, 1983;
(xxi)   The Agricultural and Processed Food Products Export Cess Act, 1985;
(xxii)   The Spices Cess Act, 1986;
(xxiii)   The Finance Act, 2004;
(xxiv)   The Finance Act, 2007;
(xxv)   The Finance Act, 2015;
(xxvi)   The Finance Act, 2016;
(c)   Any other Act, as the Central Government may, by notification in the Official Gazette, specify.    

Q.3. Who is eligible to avail benefit under Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019?

Ans. All persons are eligible to opt for the scheme. Except the below mentioned-

  • who have filed an appeal before the appellate forum and such appeal has been heard finally on or before the 30th day of June, 2019;
  • who have been convicted for any offence punishable for the matter for which he intends to file a declaration;
  • who have been issued a show cause notice and the final hearing has taken place on or before the 30th day of June, 2019;
  • who have been issued a show cause notice for an erroneous refund or refund;
  • who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019;
  • a person making a voluntary disclosure after being subjected to any enquiry or investigation or audit; or
  • a person making a voluntary disclosure after having filed a return wherein he has indicated an amount of duty as payable, but has not paid it;
  • who have filed an application in the Settlement Commission for settlement of a case;
  • Persons seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944.

Q.4. What is relief proposed by LDRS?

Ans. Relief proposed by LDRS is as follows:

Q.5. What is the meaning of ‘Tax dues’ here?

Ans. Situation: 1 Where a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum

For Ex: – . A SCN has been issued to me for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. In the Order in Original (OIO) the duty confirmed is of Rs.1000 and an amount of Rs.100 has been imposed as penalty. I have filed an appeal against this order before the Appellate Authority. In that case the amount of duty which is being disputed is Rs.1000 and hence the tax dues will be Rs.1000.

Situation: 2 Where more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum

For Ex: – A SCN has been issued for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. In the OIO the duty confirmed is of Rs.900 and penalty imposed is Rs.90. I have filed an appeal against this order before the Appellate Authority. Further, Department has also filed an appeal before the Appellate Authority for an amount of duty of Rs.100 and penalty of Rs.10.In that case The amount of duty which is being disputed is Rs.900 plus Rs.100 i.e. Rs.1000 and hence tax dues are Rs.1000.

For Ex: – A SCN has been issued for an amount of duty of Rs.1000. The Adjudicating Authority confirmed the duty of Rs.1000. I have filed an appeal against this order. The first appellate authority Commissioner Appeals/CESTAT reduced the amount of duty to Rs.900. I have filed a second appeal (before CESTAT/High Court. The department has not filed any appeal. In that case the amount of duty which is being disputed is Rs.900 and hence the tax dues are Rs.900.

Q.5. Shall the pre-deposit paid at any stage of appellate proceedings and deposit paid during enquiry, investigation or audit be taken into account for calculating relief under the Scheme?

Ans. Yes, any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be adjusted while issuing the statement indicating the amount payable by the declarant.

Q.6. Can amount payable under LDRS be paid through Input tax credit?

Ans. Amount payable under LDRS shall not be paid by utilizing input tax credit account under the indirect tax enactment or any other Act.

Thus, it appears that the payment is to be discharged in cash. Although if any pre-deposit has been deposited then for such amount ITC shall be allowed.

Q.7. Whether tax discharged under Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 can be claimed as ITC?

Ans. The taxdischarged under LDRS cannot be claimed as ITC

Q.8. What procedure will be followed for withdrawal of appeals where the person has filed a declaration under the Scheme?

Ans. Where the declarant has filed an appeal or reference against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, such appeal or reference or reply shall be deemed to have been withdrawn.

In case of a writ petition or appeal or reference before any High Court or the Supreme Court, the declarant shall file an application before such High Court or the Supreme Court for withdrawing the writ petition, appeal or reference and after its withdrawal with the leave of the Court, he shall furnish proof of such withdrawal to the Designated Committee.

Q.9. If a SCN covers multiple issues, whether the person can file an application under the Scheme for only few issues covered in the SCN?

Ans.  No. A person cannot opt to avail benefit of the Scheme in respect of selected matters. He must file a declaration in respect of all the matters concerning duty/tax liability covered under the SCN.

Q.10. Whether the declarant will be given an opportunity of being heard or not?

Ans. Yes, as per section 127(2) and (3), after the issue of the estimate, the Designated Committee shall give an opportunity of being heard to the declarant, if he so desires, in case of a disagreement.

So we have discussed some major points of this scheme, but if we take a case of company and director where director has been convicted for an offence so in that case can relief under this scheme to be given? Department needs to clarify few points so that better understanding can be established apart from that this is very good initiative and assessee should opt for this scheme if they consider it fit for their purpose. The deadline of this scheme is 31.12.2019.

CHANGE ITR FORM PARTICULARS

Filed your ITR and want to change your bank account details ?  No need to worry, you can update it through “CHANGE ITR FORM PARTICULARS “

According to the income tax department’s website, “After upload of the ITR, if any change occurs in taxpayers Bank Account, Address, Mobile number and e-mail id, then taxpayer can update these changes through ‘Change ITR Form Particulars’. Any update can be made only prior to processing of the return.”

This facility helps taxpayer to update/change their basic details without revision of return. It is a convenient way for taxpayers to update/change their basic details like bank details, address, email & mobile.

If you want to update such details, follow below 5 simple steps :-

Navigate to My Account –> Service Request —> New Service Request –>Change ITR Form Particulars Enter Acknowledgment Number and Click Submit.

Step1 :

Step2 :

Step3 :

Step 4 :


Step 5 : User can change Bank Account Details; change Address Details, Email-ID, Mobile Number.

Applicability of TDS in Case of Cash Withdrawal (FAQs)

Q.1. What is the section 194N of IT act 1961?

Ans. The Finance (No. 2) Act, 2019 has inserted a new section 194N in the Income-tax Act, 1961 (the ‘Act’), to provide for levy of tax deduction at source (TDS) @2% on cash payments in excess of one crore rupees in aggregate made during the year, by a banking company or cooperative bank or post office, to any person from one or more accounts maintained with it by the recipient.

It will be applicable from 1st Sept, 2019.

Q.2. Whether TDS on cash withdrawal prior to 1st 2019 will be applicable?

Ans. Any cash withdrawal prior to 1st September, 2019 will not be subjected to the TDS under section 194N of the Act. However, since the threshold of Rs. 1 crore is with respect to the previous year, calculation of amount of cash withdrawal for triggering deduction under section 194N of the Act shall be counted from 1st April, 2019.

Q.3. Whether TDS will be applicable if a account holder requests the bank to issue a bearer draft or bankers cheque (Pay order).

Ans. The TDS is not applicable in the case of an account holder requesting the bank to issue a bearer draft or bankers cheques which are cashable for cash at a different location or time. Such sum is not liable for TDS since the bank is not paying any sum in cash.

Q.4.On what amount TDS will be deducted? Please explain.

Ans.Lets understand it with an example- the aggregate payments made till the last payment was Rs 99, 80,000/- and the present payment is Rs 100,000. The aggregate payments so made crosses and reaches Rs 1, 00, 80,000/-. Now the matter for consideration whether the TDS is on Rs 80,000 or on Rs 100,000. From the language of the provision, it is applicable at 2% of Rs 80,000 = 1600 and the net payment to be made by a banker is Rs 100,000 minus Rs 1600 = 98400.

Q.5.Whether the limit is applicable on each account separately or on Consolidated Accounts.

Ans. That the limit is applicable for each such an account maintained by it. For instance if ABC Ltd has cash credit account, current account, Overdraft account, the limit of Rs 1 crore is applicable for each such account.

Q.6.TDS is a deductible from certain payments being in the nature of income of the recipients and it takes the character of advance collection of taxes. But in that case cash is not in the nature of income then how it will be reported in 26AS.

Ans. If the provisions of 194N are implemented from the viewpoint of TDS, posting to 26AS might pose a challenge since presently all the TDS provisions and the corresponding TDS Deductions get posted to 26AS as income and the TDS corresponding to that. Cash withdrawal cannot itself become an income of an assessee.

Q.7.Whether recipient need to be account holder always?

Ans.  If we read the wordings it states that “account maintained by the recipient “.Therefore the recipient is different from the account holder, and the payment is by bearer cheques the TDS is not deductible.

Q.8.Whether provision of section 194N applicable on authorized money changers?

Ans.  It is not clear whether authorized money changers, who happen to deal in hard currencies are also subjected to TDS, the provisions should not be applicable to money changers since no account of the customer is maintained by them and nevertheless they do not carry on banking operations and they deal with different currencies and only exchange facilities provided.