Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 7 March 2021

Small Steps for Small Firms ? Not enough

 


Context :

Abridged Annual Return in Form MGT-7A for OPCs & Small Companies

 

Extract :

Ø  “Provided further that the Central Government may prescribe abridged form of annual return for “One Person Company, small company and such other class or classes of companies as may be prescribed”.

Ø  “(1) Every company shall file its annual return in Form No. MGT-7 except One Person Company (OPC) and Small Company. One Person Company and Small Company shall file annual return from the financial year 2020-2021 onwards in Form No. MGT-7A.”

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Context :

OPC Annual Filing – Important Statutory due dates for FY 2019-20 

Extract :

E-Form AOC 4 due date

  • This is to be filed with relevant ROC, within 180 days of the close of financial year.
  • In case of an OPC, the annual financial reports contain only particulars such as Balance Sheet, Profit and Loss Account, Auditor’s Report, and the Consolidated Financial Statement.

ROC Form MGT 7 Due date

  • This is one most important RoC return filing for an OPC (One Person Company), which contains current / updated information about the directors and shareholders of the OPC

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Context :

List of Annual Compliances by One Person Company 

Extract :

Ø  A One Person Company shall file its Annual Return within 60 days of entry of ordinary resolution in Minute Book.

Ø  With a view to facilitate ease of doing business and for reducing the burden of One Person Company, the Central Government has prescribed abridged form of Annual Return to be annually filed by One Person Companies.

Ø  Annual Return of every One Person Company shall be signed by the company secretary or where there is no company secretary, by the director of the company.

Ø  The financial statements of a One Person Company can be signed by one director alone.

Ø  Cash Flow Statement is not a mandatory part of financial statements for a One Person Company. Financial statements of a one person company need to be filed with the Registrar, after they are duly adopted by the member, within 180 days of closure of financial year along with all necessary documents.

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MY TAKE :


Dear Smt Sitharamanji,

 

Ø  This is a very welcome announcement , but I urge you to “ Go the Whole Hog “ and totally abolish Corporate Income Tax for first 10 years of operations for “ One Person Companies “ as suggested in my following earlier e-mails :


 One Person Company [ OPC ] – A welcome FIRST step……………..[ 15 Feb 2921 ]

 21-22 Budget Blues : One Person Company ( OPC )……………………[ 01 Feb 2021 ]

 A New Economic Order ? aka " Start Up Act - 2015 "…………….. … [ 12 Sep 2015 ]

 

Ø  There is no way , either Public Sector or Private Sector, can generate 12 million NEW paid jobs each year

Ø  In the past one year , millions of persons employed with our 65 million MSME have lost their jobs

Ø  This is on top of 55 million youth ( out of 219 million in age group of 15 – 24 ) already unemployed

Ø  Government must pull out all stops to enable them to become “ SELF EMPLOYED

Ø  By making my suggested announcement ( viz: No Corporate Tax for OPC for 10 years ) , Govt loses nothing, since, in any case these 55 million are NOT paying any PERSONAL INCOME TAX !

Ø  On the other hand , by getting them “ Registered “ on Income Tax Department portal as “ ZERO TAX PAYERS “ ( despite honestly declaring each year’s PROFIT and accumulating OFFICIAL wealth-corpus ) , Govt will be able to track, how much INCOME they are managing to EARN by becoming SELF EMPLOYED

Ø  This is a simple and straight forward method to bring these 55 million into “ Organized Data-Base

Lesson from History :

Ø  A few years back when Pradhan Mantri Jan Dhan Yojna ( PM-JDY ) was launched, no one had ever thought of allowing people to open a bank account with ZERO balance ! It was unthinkable . But it was a revolutionary / out-of-box thinking on your part which has by now, enabled 41.75 crore ( 417.5 million ) citizen to open bank accounts.

Ø  In March 2015, the percentage of ZERO BALANCE accounts, was 58 % . Today it is a mere 7.5 %

This is a proof that the Govt. committed to #FinancialInclusion to all citizens

   ( source : Jan Dhan accounts cross 41 crore, only 7.5% zero-balance accounts )

 

Ø  Implementing my suggestion will ensure #TaxAccountability for all ( even for those paying ZERO tax )

 

With regards,

Hemen parekh  /  hcp@RecruitGuru.com  /  08 March 2021

  

 

 

 

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