Get Yourself Registered on TDS TRACES Website

The Income Tax Department has introduced the concept of TDS TRACES, in which taxpayers and deductors have explained the entire process as well as can easily download the challan details from here. Apart from this, the mistakes made in the previously filed returns can also be rectified.

Know About TDS TRACES

TRACES, TDS Reconciliation Analysis and Correction Enabling System is in fully expanded form. The Income Tax Department has introduced this online facility to make the process efficient and to rectify the already filed TDS returns. This avoids the task of filing revised returns for the process of rectification, which is a time-consuming process. Taxpayers and deductors can easily access the TRACES website through an online process. One can refer to TDS and TCS paid while filing the return to ask for further details and to check the details.

TDS TRACES Registration

Registration on TDS TRACES can be done as both taxpayers and deductors.

As a Taxpayer

Go to the website (www.tdscpc.gov.in).
Select the taxpayer option and then click Register as a new user.
It is necessary to provide the following details to the applicant:

Name
In case of date of birth or company date of incorporation
PAN Details
Verification Code

After filling in these details, click on proceed.
In addition, the following details are required:

TDS or TCS details through Form 26AS or Form 16 / 16A
Details through Form 26QB
Statement of advance tax, self-assessment tax, TDS on the property paid from the challan.

Go ahead and then provide the applicant’s communication details.
Then create an account and verify the details entered, and click proceed.
The taxpayer will receive an activation link. The message will be sent to the registered email and mobile number by the taxpayer. In this message, click on the link and activate the account from OTP.
After this, TDS TRACES login.

As a Deductor

Visit website (www.tdscpc.gov.in)
Select the deductor option and then click Register as a new user.
Fill in the required details:

TAN
Verification Code.

The system will automatically detect details such as form type, fiscal year and quarterly.

The deductor will be required to enter a TDS Return Token Number or PRN (Provisional Receipt Number).

A valid CIN, BSR code, date of deposit, invoice amount and CD record number are provided along with the challan number.

A maximum of 3 PAN-amount combinations are filed by the deductor and a TDS file has to be submitted against the PAN as well.

The deductor will then have a validation code valid for the previous financial year, quarter and type of form. Enter the authentication code to proceed.

Go ahead and then provide the applicant’s communication details.

Then create an account and verify the details entered, and click proceed.

An activation link will be received on the deductor’s registered email and mobile number. Click on the link that came in the email and mobile messages. Activate the account by receiving OTP.

Then login TDS TRACES and take advantage of the services offered in it.

Use of TDS TRACES

The TDS TRACES website allows taxpayers as well as TDS Deductor to perform various activities, but has some limitations:

TCS / TDS file for rectification

View challan status

Submit refund request online

View and download Form 26AS

Complete online correction of previously filed TDS returns

Check the status of various tax details online

Download the consolidated file, justification report and both Form 16 and 16A.

Online correction of OLTAS challan.

TDS TRACES has transformed the complex and paper-based system that allows taxpayers and deductors to take advantage online.

Facilities available at TDS TRACES

The following are the main facilities offered by TDS TRACES to the taxpayer:

Download Form 26AS and Form 16B

TDS Certificate Verification

The collected TDS compliance report can be studied and downloaded from here.

The facilities offered by TDS TRACES to deductors are:

The status of the challan can be seen

Download Form 16 and Justification Report

Online improvement

TDS Refund

View TDS / TCS Credit against PAN

Declaration of non-filing statement.

TDS Challan Checking Process on TRACES

It is of utmost importance to check the TDS details while filing your quarterly TDS or TCS return. Checking can easily be done by logging into the TRACES account. The status of the challan can be seen by CIN (Challan Identification Number) or BIN (Book Identification Number). By providing a CIN or BIN, the status of the invoice can be seen by the duration of the payment.

Following are the steps to check TDS Challan on Trucks, which are:

Step 1: Log in to the TRACES portal using credentials.

Step 2: Then move the cursor over the statement or payment link in the top menu. Click the status of the invoice from the drop-down menu on it.

Step 3: Check the status of the challan by CIN or BIN.

CIN

In case of CIN, select the CIN option to check the status of the challan. After that choose the payment term and click proceed. A list will appear for the status of the movement, where the details will be found.

BIN

In the case of BIN, select the BIN option to check the status of the challan. Choose the payment term, then click Go. After clicking enter BIN details on the open page, then view consumption details and click on it.

Conclusion

The Income Tax Department has introduced the concept of TDS TRACES, in which taxpayers and deductor can study the challan, as well as download the challan details. TRACES taxpayers can rectify mistakes made in previously filed returns with this new concept and also provide a number of features for deductions on its taxpayers.

April 20, 2021April 20, 2021

RBI Extends Timeline To Comply With Directions On Recurring Online Transactions

The Reserve Bank of India announced an extension of the timeline for the processing of recurring transactions from six months to 30 September 2021. With many banks failing to comply with the directives, including the top lenders, the Reserve Bank decided to extend the implementation date of the guidelines for recurring online transactions. In this article, let’s take a look at this development.

Background

RBI issued a framework for processing e-mandate on recurring online transactions. This framework initially applied to cards and wallets, but in January last year the framework was also extended to cover integrated payment interface transactions.

The additional factor of authentication requirement has made digital payments safe and secure in India. With customer security and convenience in the use of recurring online transactions, the framework extended the use of the additional factor of authentication during registration and earlier transactions (to the extent of Rs 2000, with rest for subsequent transactions, up to Rs 5000), and prior Transaction notification, mandate withdrawal facility, etc.

The major motive behind this framework was to protect customers from fraud and to hear about customer convenience. Extending the timeline to 31 March 2021, based on the request of the Association of Indian Banks to allow banks to complete migration, RBI advised stakeholders to migrate to the framework by 31 March 2021 in December last year. Therefore, sufficient time was provided to the stakeholders to follow the guidelines.

Although, it was noted that the framework was not fully implemented even after extending the deadline. The RBI stated that this compliance has been noted with grave concern and will be dealt with separately. It is further noted that implementation delays by some stakeholders led to potential large-scale customer inconvenience and default conditions. Therefore the Reserve Bank, with the aim of preventing any inconvenience to the customers, decided to push the timeline for stakeholders to migrate to the framework by six months by 30 September 2021.

RBI Required Mandatory Points for Recurring Online Transactions

The following mandatory points may be noted:

Beginning in October, if you have set the option of auto payment for recurring transactions, you will need additional authentication as per the rules issued by the Reserve Bank.

As a relief for bank customers, RBI has raised the limit of recurring transactions to Rs 5000.

This means that if you have a recurring auto payment of more than Rs 5000, you will receive an OTP from your bank, and once the OTP is certified, the payment will be deducted.

The new RBI rules will apply to transactions made using all types of cards. This means that when you have a registered debit card or credit card for auto payment, you will need an additional factor of authentication if the transaction is worth more than Rs 5000.

All types of prepaid payment instruments, including wallets, are included in the scope of the new RBI regulations. This means that any recurring payment of more than Rs 5000 through it will require additional authentication.

The Reserve Bank has in the past introduced a number of security and security measures for payment via card, and now the UPI has also been included under the requirement for additional authentication.

As the new RBI rule, it will allow banks to send notifications to their customers 24 hours for auto payments for recurring transactions.

Customers will be provided with the option to select the mode of notification they wish to receive at the time of registering the e-mandate for recurring auto payments.

Banks Ready for the Change of Recurring Online Transactions

For banks and payment institutions, this change is nothing short of a tough challenge where they need to overhaul existing recurring payment flows and maintain standardization for easy execution of payments.

Officials at fintech firms said the industry sought a further expansion because of the infrastructure burden on merchant partners, banks and payment processors. He said that banks have a difficult task with the infrastructure population already upgrading their systems and standardizing payment flows for the Reserve Bank’s new mandate for recurring payments. In addition, the payment failure risk increases in case of any fault in the system, which will affect customer confidence on recurring payments.

HDFC claimed that it completed the development of a common e-mandate platform and is working jointly with merchants to enable it to live for its customers as soon as possible. An official of the State Bank of India said that the bank does not have an auto-charge facility on its debit card and is now installing a new structure.

Conclusion

The Reserve Bank of India, as a one-time measure, has extended the timeline to ensure full compliance with the new framework. It may be noted that during the extended timeline, no new mandates for recurring online transactions will be registered by stakeholders unless the mandates are in line with the framework. The RBI warned that any further delay in following the framework beyond the above timeline would attract stringent supervisory action.

April 9, 2021April 9, 2021

Everything You Need To Know About Credit Score

Today’s era, people are very enthusiastic to know about the credit score, but the information remains incomplete due to lack of complete information in one place. This article talks about credit score in detail as well as how important it is for borrowers to maintain a good score.

A credit score refers to a score of 3-digits between 300-900 and credit information is given to the company based on information provided by individuals or companies. This credit score in turn is accessed by your potential lenders. It is considered by bankers and lenders to be one of the most important deciding factors.

What is a Credit Score?

A credit score refers to a number between 300 and 900 that reflects the creditworthiness of the consumer. Accordingly, the higher credit score, the better a borrower represents the potential lenders.

Credit history under a credit score is based on the number of accounts opened, the total level of loan and repayment history and other factors. Many times lenders use the credit score to evaluate the probability that a person will repay the loan on time.

A credit score is important because it is represented by the value or dependence of the borrower. A person has a direct relationship with the eligibility for the loan.

Importance Of Credit Score in India

In India, the Reserve Bank of India(RBI) has the rights to license the company to access and manage credit information. The RBI has so far licensed four companies to carry out these activities, which are as follows:

CIBIL- Credit Information Bureau (India) Limited
Equifax
Experian
High Mark

First in 2001, CIBIL started its activities and became the most popular credit information company in India. Additionally, the other three companies monitoring credit scores have their own scoring system.

One special thing in these companies is that if the credit history is six months old, then they score one in terms of no credit history or zero. Apart from this, these companies provide in-depth credit reports and credit scores based on credit reports.

What is CIBIL? How does it analyse the credit score?

CIBIL stands for Credit Information Bureau (India) Limited. It is one of the credit information companies, which is engaged in maintaining records of all credit-related activities of companies and individuals, including credit cards and loans.

Registered banks and financial institutions periodically report to CIBIL all credit-related activities. CIBIL issues the CIR (Credit Information Report) and credit score periodically based on the credit-related information provided, which serves to provide data to banks by helping banks filter out loan applications received during their business.

What Is The Credit Score Range In a Credit Score?

A credit score range in a credit score is a 3 -digit number that summarizes the activities of a person’s or company’s credit history. A credit score is between 300 and 900. It is important to maintain a high credit score in the credit score. The higher the credit score, the easier it will be for an individual or company to obtain loan approval.

The most commonly used scoring model has a credit score range of 300 to 900. Creditors set their own standards for which score they will accept, but these are general guidelines:

A score of 750 – 900 is generally considered excellent credit. This credit score indicates that the party concerned is paying all dues on time. Given this credit score, it becomes easy to get a loan or credit card approval from the bank.
A credit score between 650 and 749 is considered good credit. This score is considered good by good lenders and willing to offer loans.
This credit score between 550 and 649 is appropriate. It states that the party concerned struggles to pay the outstanding balance and interest rates will also be higher.
Scores of 350 – 549 are considered bad credit scores. This indicates that the party concerned (individual or company) is not able to pay the EMI on time. Getting a loan or credit card in this credit score range is difficult because looking at the credit score, it seems to indicate a higher risk.
And, credit scores below 350 are non-applicable or have no history. If a person or company has not taken any loan or has not used a credit card, then there will be no credit history i.e. the credit score will be considered non-applicable.

Thus, a good credit score range increases the likelihood of a good deal on debt and credit cards.

Why do lenders monitor credit scores?

Lenders check the credit score to see the creditworthiness of the borrower, so that the lender can know which category the credit score range of the borrower is in. The lender will monitor the borrower according to the credit score range.

Some of the main factors are:

• Lender looks at credit history

• Find out the borrower’s ability to repay the loan

• To determine and understand whether the borrower qualifies for the loan

• To know about the risk and debt balance of the borrower

• To fix the amount for the loan and applicable interest

How to analyze your credit score?

Want to know your credit score check? Just read the following steps…

Step 1) Firstly, visit to https://www.cibil.com/ and have to log in

Step 2) Register to receive your annual credit score and online report.

Step 3) Then, You need to fill in your personal details such as address, PAN details, date of birth etc.

Step4) Click Submit after filling. After submitting the details, the applicant will receive an SMS and an email about the credit score.

Step5) Click on the link in SMS or Email. Then you will be directed to the CIBIL login page. And enter the email ID and password once sent.

Now you can see your credit score on the screen. The Reports tab will take you to your Reports section. Check account information for detailed reports and your credit history.

Conclusion

If you start monitoring your credit score, you will realize that your unwillingness to repay the loan or over-indebtedness increasingly affects your chances of getting a loan in the future. And you will become more specific about repayment of your loan and overdraft and avoid applying for additional loan.

Thus, it can be concluded that maintaining a high credit score is important as it ensures ease of obtaining loan or credit card approval. At the same time it would be more likely to get loan approval.

March 18, 2021March 18, 2021

How to Invest in Alternative Investment Fund (AIF) in India?

aif registration ,alternative investment fund registration online in india,alternative investment fund registration online in india with sebi,alternative investment fund registration ,alternative investment funds india , aif registration online,aif registration with sebi`

In today’s market in India there are several ways of investment by way of mutual funds, stocks etc. and the unconventional options like Alternative Investment funds.

If you are looking for the best way to invest then AIFs are a very good option to invest if you are ready to take additional risk.

In order to avail good profits out of AIFs, you need to be well read about these funds. These funds have a bright future in India especially with the high net worth individual clients.

So in this blog we will delve deeper to understand different ways to invest in AIF and its benefits thereof.

What is an Alternative Investment Fund?

Alternative Investment fund is a fund which is privately pooled from the Indian or foreign investor for investing in accordance with a defined investment policy for the benefits of its investors.

AIFs in India are established either as a company, Trust or LLPs or a corporate body. This asset class includes venture capital funds, private equity, angel funds and hedge funds.

If an investor is meeting all the investment criteria then AIFs are the best option for them to choose.

These Funds do not come under the purview of Securities and Exchange Board of India (SEBI) mutual fund regulations.

However, AIFs product comes under the purview of regulation 2(1) (b) of the regulation Act, 2012 of SEBI.

SEBI classifies AIFs into 3 broad categories as in Category I, Category II and Category III.

Classification of Alternative Investment Funds

SEBI has classified the AIFs into three broad groups as-

Category I

Category I usually invests in startups or in small or medium enterprises for ventures in their early stages or infrastructure or social venture etc.

These sectors are considered as socially desirable or economical by the government of India as well as for the regulatory bodies.

Sub-Categories of Category I of AIF

Venture Capital Funds- these ventures invest in the start ups and emerging businesses which have a long term growth curve. These ventures take part in day to day operations of the businesses.
Angel Funds- These funds comply with the regulations of Chapter III-A of the SEBI AIF regulation for making investments.
Small and Medium Enterprises Funds- In this investments are done in small and medium enterprises. The minimum investments for these funds are capped at INR 1 crore, with a minimum tenure of lockin period of three years.

Category II

Category II AIF do not take any sort of leverage or borrowing except meeting day to day operations of the company. The minimum corpus for this scheme is INR 20 Crore, with a tenure for lockin period for 3 years.

There is no incentive or concession from the government side on these funds.

Sub-categories of Category II

Private Equity Funds- These funds take complete ownership of the company as they cannot raise funds by equity and investments, with a lock-in period ranging between four to seven years.
Debt Funds- These funds generally invest in the debt securities. Investments in these funds are either done in listed or unlisted companies according to the fnd objectives.
Funds to Funds- These funds follow a strategy of investment to invest in other Alternative Investment Funds.

Category III

These funds apply in various trading strategies like future and margin trading, arbitrage and derivative trading while investing in listed or unlisted derivatives.

They are two types of funds as close ended and open ended funds and are way less regulated than the traditional funds.

Sub-Categories

Hedge Funds- These Funds pool investments from private investors to invest in international as well as domestic markets using several trading as well as investment strategies. These funds include a hefty fee of about 2% of the investment and about 20% share of the profits.
Private Investment in Public Equity- These fund managers in this strategy often buy stocks of publicly traded companies, but at a discounted price.

How to invest in any AIF

If you are ready to take risk then investments in AIF is the best option. You have to be eligible to invest in AIFs usually it is the resident Indians, NRIs i.e. who have settled abroad and foreigners. If you are a general investor, your permissible limit will be INR 1 crore whereas the minimum investment limit is INR 25 Lakh for the angel investors.

And investors who are willing to make an investment in unlisted companies, then you should be prepared to undertake the associated underlying list. An AIF cannot openly invite the public to subscribe to its units, rather they can only raise funds from the esteemed investors through a private placement.

After payment of the registration fees, once the certification is done by SEBI that the AIF has been registered, the AIF contacts the stock exchanges for the listing of the funds by submitting an investment management agreement or a placement memorandum, in accordance with Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. You have to submit your income proof, ID proof and the PAN card to invest in an AIF.

Contact BIAT Consultant for your AIF registration needs at info@biatconsultant.com.

March 8, 2021March 8, 2021

Termination and Liquidation of Alternative Investment Funds (AIF)

The year 2020 has gone for good as it affected many businesses including alternative investment funds which leaves investors in dismay amidst widespread job loss and business shutdowns.

These markets faced serious concerns around the life of funds centered around-

Early Termination
Liquidation and
Extension of the Funds

In this blog we will discuss Alternative Investment Fund and primarily we will discuss category I and II in this blog, as in India these both funds are close ended funds registered under SEBI.

Different Types of Alternative Investment Funds

AIf Category I- This category has a positive effect on the financial system. The AIf programme includes funds that make advances to sectors that have significant economic and social viability and includes Venture Capital Funds, SME Funds, Social Venture Capital Funds and infrastructure Funds.
AIF Category II- This category of funds used to meet day to day expenses that are permitted by SEBI. This category also includes AIF debt funds. Based on the state objectives of the fund, investments are done primarily by listed/unlisted investee corporates in this fund.
AIF Category III- This AIF program comprises of all those funds that are likely to result in negative externalities involving complicated strategies in trading and degenerative systematic risk involved in leveraging and includes –

Hedge Funds
Private Investment in Public Equity (PIPe) funds

Salient features of AIF

Following are the salient features of AIF-

Category I and II are given for a term of 3 years and can be extended for 2 more years with the approval of at least two third of investors by value. Category III on the other hand has the option of being open ended or close ended.
SEBI mandates the filing of information memorandum for stipulated fees.
AIF under category I and II may be listed on stock exchange provided the tradable lot comprise a minimum amount of INR 1 Cr. However, stock exchange programmes cannot be opted by any AIF to raise funds.
The permitted upper limit of investible funds for any investee company is 25% for any AIF programmes/schemes.
As per SEBI, all AIFs are required to have qualified Institutional Buyer status.
Proper guidelines are available in AIF regulations in order to avoid any conflict in future.
On an annual basis all AIFs are required to provide the investors with the composite financial details around portfolio company and material risk involved along with the strategies used to manage them.
As per guidelines SEBI reserves the right of investigation and/or inspection of the AIFs and also issues further necessary guidelines as required.

Termination of Alternative Investment Funds

AIFs generally expire when the fixed term of the fund as documented in the fund papers expires.

However there is always a prior termination of AIFs as mentioned in the clause of the agreement. AIF regulations also talks about early termination of AIFs.

It is obvious that both the investors and fund managers are aligned and focus all strategies and efforts towards the continuation of the fund till its original expiry date; more so investments in funds with longer tenure are designed to reap returns over a designated time period.

The principal objective being the maximisation of the value of the portfolio by aligning with the time available based on the tenure of the fund. For this asset class, the planned ‘orderly exit’ helps the fund to optimize the risk and return opportunities.

For AIF Category I, there is a distinct difference between liquidation and termination (winding up) of the fund. Liquidation should ideally happen within 12 months of termination of the fund. Understanding the difference becomes important in drawing giveback provisions for investors.

February 11, 2021February 11, 2021

RBI Organises QR Code mechanism for digital payments

Digital payment mode has worked in a big way and for the same reason a lot of Payment System Operators (PSOs) are coming up on the web. The initial push for digital payment came into being with the demonetization policy of the Government in 2016.

Now with pandemic ruling the roost the digital payment has got a bigger fillip.

RBI’s course of action for Uniform QR based payments

In the current scenario, it is convenient to scan a QR code and make payment for various kinds of bills. This kind of receptive formula has become a backbone for the digital payment portals in India. Today, each PSO uses an independent proprietary QR code to accept the digital payments.

It is to be noted that the Reserve Bank of India (RBI) had put in place a Committee under the aegis of Prof Deepak Phatak to analyze the present QR Code mechanism in India and to come out with a process for more compatible Codes. RBI had intimated the report of this Committee with several recommendations.

After thorough analysis of those recommendations, the following decisions have now been taken by RBI:

Presently, the 2 compatible QR codes – the UPI QR and the Bharat QR – will operate as at present.

All the Payment System Operators (PSOs), presently using their independent QR codes must soon be directed to adapt to one or more uniform QR codes, once such uniform system comes into force.

The procedure to shift towards uniform QR codes will happen by 31^st March 2022. From now onwards, no proprietary QR codes will be created or utilized by any PSO to receive the online payment.

Here, RBI will perform the consultative part for integration and improvisation of such interoperable QR codes. This is to install the major features suggested by the Phatak Committee.

As such, the PSOs may also take the lead in spreading knowledge about such interoperable QR codes among their customers.

Note: These steps have been suggested to institute a strong and comfortable payment acceptance infrastructure. This will improve the user experience as a result of compatibility and system efficiency.

The suggestions for the single QR mechanism impinge on 4 aspects:

Interoperability & Scalability

Innovation

Security

Customer Awareness

QR for starters

The QR Code happens to be a 2D barcode that includes black squares assorted in a square grid with white background. Scanning devices such as barcode readers or smartphone cameras are utilized for reading and interpreting the QR codes.

There are 2 types of QR codes:

Static

Dynamic

Static: QR code which remains unchanged and is chiefly printed on paper. It has details regarding the payee, and the consumer should enter the amount after scanning.

Dynamic: The dynamic QR codes are drafted with a software and this can comprise more fields like the price amount.

So, the RBI now strives to eliminate all problems such as the lack of interoperability or compatibility of the QR codes, by suggesting remedies for organizing the QR codes.

Key aspects of a uniform QR mechanism

Interoperability & Expandability

The Proprietary QR codes hinge on closed loop mechanisms. This can create obstacles for the open, compatible payments ecosystem. So, RBI suggests a simple blueprint to totally rescind the proprietary loop QR codes with the new open and interoperable ones.

A unified QR code pertaining to every payment portal entails a deeper concentration risk in comparison to the individual Proprietary QR codes. So, RBI needs to drive the numerous interoperable QR codes e.g. Bharat QR or UPI QR to facilitate swift on-boarding of all types of merchants on digital payment platforms.

With regard to costing, it is felt that paper-oriented (Sticker) does not need any maintenance.

Innovation

RBI will focus on standardizing the digital payment apps. It will even gauge the network for the usual QR branding so that a regular and convenient experience can be materialized.

This apart, the offline QR code might be utilized for minor payments such as travelling, ticketing etc. This manner the QR codes will turn multipurpose in nature.

QR apps will now have extra features such as

Save QR,

Invoice relay through Dynamic QR,

Setting up e-Mandate

There is no requirement to open a fresh bank account for QR code on-boarding. Existing accounts will be sufficient as a valid merchant KYC for quick merchant on boarding. The acquiring bank of the merchant (on the basis of the payment size) may be furnished. This can increase the potency of merchant KYC.

The Bharat QR will come with the P2PM (Merchant treated as person) feature, which will enable rapid and convenient on-boarding of micro enterprises through their current bank account.

Bharat QR-specific measure: Inclusion of NBFCs and FinTech worries.

UPI QR-specific measure: Multiple UPI IDs may be permitted for a single recipient. If any UPI IDs does not function, then a different UPI–ID may also be utilized by the payer. backend

Safety:

These steps may be taken to secure payments:

Sign-up needs of Bharat QR codes might be assessed. Payer presented offline QR will be a signed in for dynamic QR code.

Security check and audit of the Application utilized for QR Code oriented payment must preferably be held by 3rd party entities.

Resolution of the merchant’s name has to be at the acquirer bank’s system.

Rules drafted for revoking / rotating keys utilized to sign static QR codes.

Consumer familiarization:

Every stakeholders must conduct education and awareness campaigns for QR code adoption.Multi-currency and Multi-language assistance to be explored for maximum traction among customers across the countries.

The online payment apps should provide clarity over data safety.

Consumer awareness for secure Wi-Fi usage for digital deals.

Documents needed for the Merchant KYC

Given below are the documents required for KYC of the merchants and for the payment aggregators (PA):

Use image

Benefits of Uniform QR code

Interoperability of several payment alternatives through common QR will be beneficial for all stakeholders of the ecosystem. This can reduce expenses and facilitate systematic risk management.

The good thing is that the QR codes can be installed swiftly even in any parts of the country and accessible to every type of merchant. They function as a Do it yourself (DIY) solution. The merchant will be able to download any payment app and sign up with ease. He can then start receiving online payments from his customers.

These days several Mobile banking apps are unified with numerous features such as Mutual Funds, Demat accounts, Insurance, NEFT, RTGS, IMPS etc. Currently, all banks perform thorough assessment according to its internal compliance norms. Here, a QR Code can serve the purpose of a 2nd factor authentication for every future online transaction.

QR codes will come with the multi-currency and multi-language features for international transactions. Highlighting of payment particulars such as Merchant’s Name, Tip or Convenience Fee, Transaction Amount, Terminal ID, Location etc. in a local vernacular and native currency will increase the customer belief.

In the end

Regulatory assistance is a must for seamless progress of the Uniform QR code mechanism. Over here, RBI will in all probability implement these measures to enhance the uniform QR code system:

RBI may draft a transparent plan to totally eliminate proprietary QR codes for new open, compatible ones.

Accordingly, the RBI may issue relevant norms regarding refurbished KYC process for swifter merchant on boarding.

The Regulator may also draft fresh guidelines regarding common registry to facilitate digital payments Apps to check and verify the recipients.

This kind of mechanism could be executed by the Government by permitting a less controlled interchange instead of cutting down MDR charges on QR code to 0.

Government may even provide certain tax incentives to the merchants with the common QR code. This will enhance electronic transactions and give a good push to Digital India initiative.

RBI may permit the Offline QR codes for various kinds of modest payments such as transit or travel bills, ticketing etc. This will also increase the use of QR code.

This apart, a Security test and audit may be carried out of the Apps utilized for QR code-based payment service provider (PSP).

January 24, 2021January 24, 2021

What makes an ISO certification critical for a company?

ISO or the International Standards Organization happens to be an autonomous body which offers standards of the organisation. As for a standard, we can specify it as quality, safety and efficiency of the products or services offered by the businesses. ISO 9001 certification highlights the criticality of superior quality of goods and services. So, Register your company and be ISO certified as soon as possible. The ISO certificate assists in improving your business reliability and authority and the whole capacity of the business. If your organization is ISO certified, it entails several benefits.

The reason ISO certification is important

ISO certification happens to be the affirmation given by the MSME Government. The ISO certification in India comes with several benefits. Let us explore them one by one.

Superior faith 

Worldwide acceptance is there for the International Organization for Standardization (ISO). It strengthens dependability and sincerity of your products or services in the mind of the public.

Gain huge traction 

The brand recognition will scale new heights. This can maximize your professional outlook amongst other market researchers and the public as well.

Heightened Consistency 

ISO 9001 assists you in maximizing the control of your business processes. As your control over your business goes up, the consistency also rises. More consistency means your customers are satisfied every time they are dealing with you.

Stamp of Govt accreditation 

Your product can be marketed with ease. You can even tag your product with the ISO symbol while packaging and documenting. This type of government branding benefits you in several ways.

Retain customer significantly 

One critical aspect that helps attract more customers is a government tag on your product. This helps you multiply customers significantly. And satisfy customers a lot.

Promote at will 

ISO accords you and your products increased value. This can be used as a selling factor. You can endorse your products by securing global quality credit.

Trade between countries available 

As ISO certification is accepted globally, the same facilitates trade between countries. Having a few limitations and documentation issues, your trading process gets legally accepted.

Strengthened employees 

Apart from benefiting the company, the ISO label empowers the employees as well. This betters their performance and increases their commitment. Also, their profiles become value-added. Their familiarity with their work gets enriched being an ISO-based company.

Inculcating professional culture  

Professionalism goes up in the company premises. Having a global certification, the employees, authorities and the management have no choice but to inculcate a professional culture in the company.The same professionalism helps companies to gain more goodwill in the market.

All round satisfaction 

ISO 9001 certification mandates the training and evolution of your staff and management. Also, it gives essential tools to them to carry out their jobs properly. Resultantly, your employees will gain knowledge galore about the tasks they have undertaken and as the training is imparted, their career prospects go up.

Bring down excess consumption

As you grow post getting the ISO, you become aware of what to use and what not to. You will learn and evolve considerably in a unique manner to improve your business in the market.

Assures safety of the products/services 

If a company is ISO certified, the quality is something that gets attached to your business like a glue. This assures the safety of the products/service utilized by the general public

Operations become efficient 

The procedures, jobs, methods, measures and dealings get simplified and shared equitably amongst the workers. Also, operations will become improved and more efficient. This manner you can operate a business without complaints and complexities. It is true that acquiring an ISO certification helps your business in several ways. But getting one is not an easy task. Document verification has to happen officially for the ISO license. Further, the documentation entails some cost as well. So, getting an ISO certification will cement your company’s presence in the global market.

Select the ideal ISO Certification type

Importantly, you must select the ISO certification standard in sync with your business.

Zero in on a dependable ISO Certification Body

It needs to be kept in mind that ISO does not give certificates to the applicants itself. The job of allotting ISO Certificates to the applicants is carried out by external bodies. It is very crucial for you to perform your research and select a dependable and authorized certification body to acquire the certification from.

Please factor in the following

Assess the past records of various ISO Certification agencies.

Gauge if they adhere to the CASCO standards. This is a committee established by the ISO to monitor issues associated with conformity assessment.

Assess whether they satisfy the condition of ISO Accreditation agencies.

January 14, 2021January 14, 2021

Methods of applying an ISP License

isp license registration in india,isp license,isp license provider in india,process for isp license registration in india,how to apply for isp license in india,procedure for applicaiton of isp license in india,internet service provider license,isp registration online in india

The Indian government came out with a single license for every telecom related services and it is called Unified License. As for Unified License, the license holder must apply for ISP license for various areas. You have to get a Unified License in which you will obtain authorization for offering ISP services for a particular area. So, it has to be remembered that there is no different ISP license as such. One must rather acquire ISP Authorization under the Unified License.

As for Unified License only one can be held by a single company, however, one can apply for several ISP authorizations of diverse areas. But the validity of such authorizations will be similar to that of the Unified License.

The procedures for obtaining the ISP License in India

Suitability Aspects

To obtain an ISP license, you require a registered company under the Companies Act, 1956. In case you don’t have one then just visit the website of registrar of companies for the same.

Choose an apt ISP License category to apply under

After obtaining an ISP license, the person has to decide the category of license required – category A, B or C. In India, 3 separate types of licenses are needed to be an internet service provider. Also, it depends upon the City/State/Town/District/Village you want to launch your ISP business in.

The 3 categories of ISP licenses are:

Class A (National Area)
Class B (Telecom Circle/Metro Area)
Class C (Secondary Switching Area)
The Class A ISP license can be a costly affair, followed by Class B & C respectively.

Fiscal Criteria

In order to popularize internet access in smaller towns, cities & villages, the Government of India has brought in a cost-effective Class C license compared to a Class A or B.

So let us get into the financial nitty gritty of acquiring the various licenses.

Service	Minimum Equity	Minimum Net worth	Entry Fee (Rs.)	Performance BG (Rs.)	Financial BG (Rs.)	Application Processing Fee (Rs.)	Total Capital Required (Rs.)
ISP “A” (National Area)	Nil	Nil	30 Lakh	2 Crores	10 Lakh	50 Thousand	2,40,50,000
ISP “B” (Telecom circle/Metro Area)	Nil	Nil	2 Lakh	10 Lakh	1 Lakh	15 Thousand	13,15,000
ISP “C” (SSA)	Nil	Nil	20 Thousand	50 Thousand	10 Thousand	10 Thousand	90,000

The total capital needed for a Class C license is INR 90,000/. For Class A license the amount is INR 2.50 crores.

So, to be a Class C ISP license holder, you need something around Rs. 3-4 lakhs, subject to the lawyer / ISP consultant fees.

Upon choosing the category of the ISP license you require, it is pertinent to know the whole application process.

Application Method to begin with

Post choosing the ISP license category, you have to fill an application form. Along with the form, a non-refundable Processing Fee of INR 15,000/- should be given by the applicant via DD/Pay Order from a Schedule Bank payable at New Delhi issued in the name of Pay & Accounts Officer(Headquarter) DOT. You are also required to submit the requisite documents as well:

Company-specific documents

An attested copy of the Certificate of Incorporation of the company issued by the Registrar of Companies.

A certified copy of Memorandum of Association and Article of Association underlining the provisions, which includes Internet Services in the chief objects of the company.

Written permission of the company’s board related to the decision of the company to apply for a new ISP License and particulars of the authorized signatory including name and designation along with the specimen signature.This disclosure needs to be signed and stamped by a Company Secretary.

Certified copy of Form-18 and the copy of challan form i.e. GAR-7 case registered.(If office address is not given in Certificate of incorporation or the address shown in Certificate of incorporation varies from that of in the application form).

Document for Foreign Investment

A copy of FIPB Approval in the name of Applicant Company, certified by the Company Secretary is required if the cumulative FDI (direct and indirect equity) in the applicant company is in excess of 49%.

Document Assessment

After this, the Department of Telecom will scrutinize your application and contact you within 60 days. In the event of any problem regarding your application, there might be a hitch when it comes to issuing a response from the DOT.

If your application is satisfactory, then the DOT will issue a ‘Letter of Intent’ in your favor. However, your application might be rejected or delayed due to dishonoring legal, security, hardware, commercial and contractual compliance, and human follies such as incomplete form submission.

Grant of Letter of Intent

In case there are no problems in your application form to acquire the ISP authorization under the Unified License, the DOT will issue a ‘Letter of Intent’ in your favor. Once the same is given you need to give the one-time entry fee along with the required bank guarantees. The total of both for Category A is 2.4 crores, for category B is 13 lakh & for category C is 80,000/-. Also, you need to give a signed license agreement with the DOT and any other documents needed, including the documents mentioned in the Letter of Intent.

The one-time entry fee is non-refundable. Further, once the Letter of Intent is issued, all the other formalities have to be performed within a specific period as prescribed in the Letter of Intent.

Confirmation

If all conditions are satisfied, you will be given an ISP authorization under the Unified License for a period of 20 years. The DOT will either contact you through mail or directly to intimate you about the status of your ISP License.

Last but not the…..

It has come to light by now that the methods regarding ISP licensing is technical and protracted for an ordinary person to fulfill. If these procedures are not adhered to then the application can be disapproved as well. So, it would be better on your part to get your documents & forms analyzed by a professional ISP consultant or lawyer to ensure you don’t face any objections or heartbreaks due to delay or rejection.

January 8, 2021January 8, 2021

The method to obtain liquor license in India

If you want to sell alcohol in India then apply and obtain a license for it. Everyone, be it liquor vends or restaurants they must apply for a liquor license online or offline. Without the valid license engaging in selling liquor can you land you in legal soup. In this write up, let us go through the procedure in getting a liquor license in India, and the method of applying for it.

 Why do you Need Liquor Liquor?

The license happens to be a consent given by a State’s Excise Department that permits people to manufacture, transport, and sell alcoholic beverages within the state. Hence, it regulates these activities within the state:

Businesses allowed to sell and market alcohol
Time and place to sell alcohol
Amount of alcohol to be sold at a time
The charge fixed for the purchase of alcohol
Kinds of liquor that may be sold
Who to give the liquor for money
Businesses permitted to manufacture, distribute and have alcohol

It is to be noted that the sale, distribution, and manufacture of liquor fall under the ambit of the State List according to the seventh schedule of the Constitution. Therefore, the state governments have jurisdiction over the rules and regulations framed within their jurisdiction. Resultantly, several states have diverse laws regarding the sale and manufacture of liquor. The chief laws controlling the sale and consumption of alcohol in India are as follows;

Article 47 of the Constitution
Licensing Act 2003
Delhi Excise Act, 2009 and Excise Rules, 2010
Punjab Excise Act, 1914
Uttar Pradesh Excise Act, 1910
Bengal Excise Act of 1909
Goa Excise Duty Act, 1964
Bombay Prohibition Act of 1949
Karnataka Excise Act, 1965
Tamil Nadu Liquor Rules, 1981

Kind of liquor licenses in India

Beer and Wine License – For entities who want to sell only light alcoholic beverages, such as beer and wine. Also these businesses are not allowed to deal with hard liquor.

Restaurant Liquor License –For restaurants wanting to provide alcohol and pertain to establishments earning less than 40% of their total income via liquor sales.

Tavern License – For entities whose liquor sale constitute over half of their profits

Brewpub License – For establishments who brew their own wine and beer.

Temporary License – To offer liquor at a party or event in a town with less than 20 lakh people.

FL-4 License – For those who seek to serve alcohol at private parties within a private resort or apartment.

L1 – Needed for the wholesale supply of Indian liquor

L3 – Allows hotels to offer foreign liquors to guests in hotel rooms, while the L5 permits hotels to offer liquor in bars or restaurants within the hotel premises.

L6 – For the retail vendors of Beers and Indian Liquors.

L19 – Permits clubs to offer foreign alcohol.

The ways to apply liquor license in India

As each state has their own liquor laws, it is imperative to consult an expert prior to making the first move to avoid legal hassles later. But, this is the usual process in getting a liquor license in India.
Go through the State Excise Department’s official website to familiarize with the process. You can even visit their office or the office of another licensing authority to get some insight into what is expected.
After getting an idea about the methods involved, decide about the kind of license you require.
Then, obtain the needed documents to initiate the application process.
Download the application form for your type of license from the State Excise Department’s website.
Fill the form with the requisite particulars and attach relevant documents wherever necessary.
Some of the details you must describe include your place of business, personal information, and the type of liquor you want to sell.
Furnish the filled form to the relevant authority and provide the requisite application fee. The authority will then evaluate all the particulars given. They can even visit your business premises to see whether things are as per laws or not. If they find any anomaly, they can seek additional documents, which has to be provided.
After the verification process, a notice will be put up regarding your business on your premises. This is to inform the locals regarding your new business. In case they want to put any kind of objections, they can do so within a specified period, and you need to convince them why your business will not be an obstacle to them. If there are no further objections, the authority can provide you with a Liquor License, and you can start functioning.

Cost of liquor license in India

As the liquor regulations differ from state to state, the expense of getting a license also sways based on your location of business. Also, the expense of getting the license hinges on the type of license you desire and the size and nature of your business. But, given below is a run down on the average liquor license cost in India.

Temporary License – To offer liquor at a party or event in a town with less than 20 lakh people, you should pay either :

INR 7,000 if you want to offer liquor to less than 100 people
INR 10,000 if you want to offer liquor to over 100 people
FL-4 License – INR 13,000.

Serving Liquor in Rooms – To provide alcohol in a restaurant, you must pay either;

INR 5,00,000 for serving only in rooms
INR 1,50,000 for serving in a beer shop or restaurant
State Liquor License – Anywhere between INR 5000 and INR 15,000

Documents needed for a liquor license application

Applicant’s Identity Proof and Address proof
Address proof of the business premises
NOC from the State fire department
NOC from the concerned municipal corporation
Duly filled Application form
MoA and AoA of companies, if applicable
Latest ITR copy
Applicant’s passport size photograph
Affidavit substantiating no criminal records in the applicant’s name
Affidavit declaring the applicant has no pending dues in their name

How can we Help?

The team of legal experts employed with us can offer you the assistance you need. We have the ability to guide you regarding the licenses and registrations procedures needed to begin such a venture. Our lawyers have the ability to help you with all required documentation. Also, we offer services regarding incorporation, permitting you to register your business swiftly and efficiently. Finally, our team will assist you get all other licenses and tax registrations you require to turn your business fully compliant.

December 23, 2020December 23, 2020

The Methods To Acquire Private Security Agency License

PSARA License online , private security agency license ,online PSARA License , PSARA License,apply PSARA online , PSARA License cost, psara license consultant

Private security agencies happened to be the ones engaged in offering security services comprising training of security guards to any industrial or business undertaking or a company or any other person or property. The functions of a private security agency come under the jurisdiction of the “The Private Security Agencies (Regulation) Act, 2005. In this write up, we delve into the method for getting a Private Security Agency License in detail.

The Private Security Agencies (Regulation) Act, 2005

The Private Security Agencies Act, 2005 governs every aspect of the running of a private security agency business in India. The Act encompasses the entire India with the exception of the State of Jammu and Kashmir and is in vogue since June 2005.

Appointment of Governing Authority by State Government

The Act makes provision for every State Government to assign an officer, not lower than the rank of a Joint Secretary in the Home Department of the State or an equivalent officer to be the Controlling Authority for the State. The Controlling Authority for the State can issue private security agency license, renewal and controlling of function of private security agencies. Also, the Act gives powers to the State Government to create rules to execute the provisions of this Act. So, several States have implemented Private Security Agencies Rules to properly carry out the responsibilities of the State Government as per the Act.

Acquiring Private Security Agency License

According to the Act, nobody can begin or launch a private security agency business without having a private security agency license. Further, no private security agency can offer private security outside India devoid of acquiring permission of the Controlling Authority, which may consult the Central Government in advance as per such permission. Hence, any person wanting to launch a security agency business has to get a license in India.

Suitability Regarding Private Security Agency License

Indian Company, Firm or Association of Persons can apply for a security agency license. Also, if the agency happens to be a company, then the chief shareholder has to be an Indian. Apart from the above condition, the following obligations have to be met:

The person or company should not be convicted of an offence with regard to promotion, incorporation or management of a company (any deception or misfeasance on the part of him with regard to the company), including an undischarged collapse;

The person or company should not be sentenced by an authorized court for an offence, the given punishment for which is imprisonment of not less than two years;

The person or company should not have any connection with any organization or association that is barred from doing business under any law due to their activities posing a danger to national security or public order.

The person should not have been dismissed or sacked from Government service due to wrongdoing or moral turpitude.

Charges Pertaining to Private Security Agency License

The government fee for getting security agency license is:

Private security agency functioning in single district: Rs.5000/-
Private security agency working in one to five districts: Rs.10000/-
Private security agency running in the whole state: Rs.25000/-

After filing an application for obtaining a security agency license, the Controlling Authority has to scrutinize the application and grant/reject the license by sixty days from the date of receipt of the application. After the issuance, the security agency license will be active for five years and renewal is possible for next 5 years by paying the requisite fees.

Running Private Security Business

After getting the security agency license, the company or firm must begin functions within six months of acquiring the license. The security agency is liable for providing training and inculcating skill development to security guards. Apart from the security guards, the appropriate number of supervisors needs to be hired by the agency according to the Act.

These individuals can be security guards or security guard supervisors:

Indian Citizen or a citizen of other country as the Central Government might, through notification in the Official Gazette, clarify;
Individuals who have finished eighteen years of age, but yet to attain sixty-five years;
Persons who can convince the agency about his background and character.
Persons to finish the security training triumphantly;
Persons meeting some norms regarding physical standards;
Persons who have not been convicted by an authorized court or who has been dismissed or sacked due to misconduct or moral turpitude while serving in any of the armed forces of the Union, State Police Organisations, Central or State Governments or in any private security agency.

While choosing private security guards, all private security agencies must give preferences for individuals who have served as a member in one of the following forces:

Army
Navy
Air Force
Any other armed forces of the Union
Police, including armed constabularies of States
Home Guards

Want to apply for private security agency license ? Please contact BIATConsultant for the same .