Since the passing of the GST Constitutional Bill by the Rajya Sabha in August last year, the country has been preparing itself for the new tax regime. The new GST law is India?s biggest tax reform initiative which is expected to improve compliance levels, increase government revenue in company registration in India and create a common playing field for businesses by amalgamating a host of central and local taxes.
On the face of it, GST seems to be a mixed bag with some of the necessities becoming cheaper, while the others might get more expensive. While in the longer run the Goods and Service Tax might have a favorable effect on most of the sectors of the economy, in the short run, as with the most of the reforms, the benefits seem to be limited. Based on the experience of GST implementation in other countries, India could observe an inflationary impact at the onset of the reform, which might fade away once the legislation sinks in.
The present rate of service tax is 15 percent and is applicable to most of the services, excluding essential ones like cultural activities, ambulance services, and certain pilgrimages and sports events. Under Goods and Service Tax, this rate would increase to 18 percent making the services more costly. For some goods like edible oil, textiles, etc. the excise duty is nil and the VAT in several states is 5 percent. Hence, the total cost of such goods is close to 8%-9%. With GST, the cost of such goods is likely to increase and this might put a hole in the budget of a common man to wholly owned subsidiary in India.
Digital Signature Certificate And Its Need?
The documents required for formation of a company are required to be filed on-line and DSC is a verification tool (equivalent to hand written signature) used for filing such documents with the ROC. DSC can be obtained for any one or more directors of the proposed company under whose name the documents are usually filed. DSC is of various classes and a Class II DSC is applicable for incorporation and for the process thereafter. Company formation services in India
How to Obtain DSC?
Government has authorized various certification agencies for issuing DSC. In order to obtain DSC, the prescribed application form of the chosen agency has to be filled in and submitted along with the identity proof and address proof. The certification agency office verifies all the documents and upon satisfaction issues DSC in a USB token (and also through email). It is a password protected file. New Company Registration in india
Documents and Information Required?
One identity proof containing photo and date of birth and one address proof is required to be submitted along with the executed form.
Identity proof may be a Passport/Voter Card/Driving License/PAN Card etc. In case of foreign citizen/NRI, identity proof should necessarily be a passport copy.
Address proof may be a Passport/Voter Card/Ration Card/Driving License/Electricity Bill/Telephone Bill/Bank Statement etc.
General information such as name, father’s name, date of birth, nationality, contact details, etc. is also required for filling the form. Additionally, father’s and mother’s name is required for the mandatory roll check of DSC with ROC.
In case of a foreign national, the photograph, identity proof and address proof should be duly attested by the notary public/Indian embassy/ apostille authority in the home country of the applicant. Company Formations Procedure in India
Follow UpIt may take around 1-3 days to obtain a digital signature.
NoteAn application for DSC can also be made simultaneously with the DIN application to save time. ++