Limited Liability Partnership Act, 2008 – CMA Inter Law and Ethics Study Material

Leave a Comment / CMA Inter / By / November 13, 2023

Limited Liability Partnership Act, 2008 – CMA Inter Business Laws and Ethics Study Material is designed strictly as per the latest syllabus and exam pattern.

Limited Liability Partnership Act, 2008 – CMA Inter Law and Ethics Study Material

Distinguish Between

Question 1.
Briefly explain the difference between Partnership and Co-ownership. (June 2014, 4 marks)
Answer:
Difference between Partnership and Co-ownership.

Basis of Distinction Partnership Co-ownership
1. Agreement It arises from an agreement. It may or may not arise from an agreement.
2. Business It is formed to carry on a business. It may or may not involve carrying on a business.
3. Profit or Loss It involves profit or loss. It may or may not involve profit or loss.
4. Mutual agency Partners have a mutual agency relationship. Co-owners do not have a mutual agency relationship.
5. Name of persons involved The persons who form partnership are called partners. The persons who own some property jointly are called owners.
6. Maximum limit A partnership with object of acquisition for gains cannot be formed beyond 50 numbers of partners [Section 464 read with Rule 10 of Companies (Miscellaneous) Rules, 2014 There is no maximum limit of owners.
7. Transfer of interest A partner cannot transfer his share to a stranger without the consent of other partners. A co-owner can transfer his share to a stranger without the consent of other co-owners.
8. Right to claim partition A partner has no right to claim partition of property but he can sue the other partners for the dissolution of the firm and accounts. A co-owner has the right to claim partition of property.
9. Lien on property A partner has a lien on the A co-owner has no such partnership property for lien. expenses incurred by him on behalf of the firm.

Descriptive Questions

Question 2.
(i) Who is a Partner by “Holding Out” or “Estoppels”? (Dec 2013, 2 marks)
Answer:
If any person behaves and/or poses or presents in such a way that others consider him to be a partner, he will be held liable to those persons who have been misled, suffered or lent finance to the firm on assumption that he is a partner. Such a person is known as ‘Partner by Holding out or Estoppels.” He is not a true partner and he is not entitled to any share in the profit in the firm.

Question 3.
Answer the question:
What tests would apply for determining the existence of partnership? Discuss. (June 2015, 3 marks)
Answer:
As must be clear from the discussion of various elements of partnership, there is no single test of partnership. For example, in one case there may be sharing of profits but may not be any business, in the other case there may be business but there may not be sharing of profits, in yet another case there may be both business and sharing of profits but the relationship between persons sharing the profits may not be that of principal and agent. And in either case, therefore, there is no partnership.

Thus, all the essential elements of partnership must coexist in order to constitute a partnership. To emphasize this fact, Section. 6 expressly provides that “in determining whether a group of persons is or is not a firm or whether a person is or is not a partner in a firm, regard shall be given to the real relation between the parties, as shown by all relevant facts taken together.” Thus, the existence of a partnership has to be determined with reference to the real intention of the parties, which must be gathered from all the facts of the case and the surrounding circumstances.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

Question 4.
State your views on the following:
A partner is not an agent of other partners in a partnership firm. (June 2016, 2 marks)
Answer:
Incorrect: The basis of the partnership is mutual agency, hence a partner is an agent of all other partners.

Question 5.
What are the rights of outgoing partners? (June 2017, 9 marks)
Answer:
Rights of outgoing partners
Section 36 provides that an outgoing partner may carry on a business competing with that of the firm. He may advertise such business, but, subject to contract to the contrary, he may not:

  • use the firm name;
  • represent himself as carrying on the business of the firm; or
  • solicit the custom of persons who were dealing with the firm before he ceased to be a partner.

Section 37 provides that in case where a partner has died or ceased to be a partner, the surviving and continuing partners may carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or the estate of deceased partner. In the absence of a contract to the contrary, the outgoing partner of the representative of the deceased partner is entitled at the option:
to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm; or
to interest at 6% per annum on the amount his share in the property of the firm.

Where an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner and the same is duly exercised, the estate of the deceased partner or the outgoing partner is not entitled to any further or other share of profits. But if any partner, assuming to act in exercise of the option, does not, in all material respects comply with the terms, he is liable to account under the provisions of this section.

Practical Questions

Question 6.
A, B, and C were partners in a firm of drapers. The partnership deed authorized the expulsion of a partner when he was found guilty of flagrant breach of duty. A was convicted of travelling without ticket. On this ground, he was expelled by the other partners B and C. Is the expulsion justified? (June 2014, 3 marks)
Answer: .
Yes, the expulsion is justified. In this case, the partnership deed authorized expulsion on the ground of flagrant breach of duty. Doing an act which brings a partner within the penalties of criminal law is flagrant breach of duty. Also, the expulsion decision was taken by majority of partners (Carmichel Vs. Evans (1904) 90 LT573).

Question 7.
A, B, C are partners ¡n a firm. As per terms of the partnership deed, A ¡a entitled to 20% of the partnecship property and profits. A retires from firm and dies after 15 days. B, C continue business of the firm without settling accounts. What are th rights of A’s legal representatives against the firm under the Indian Partnership Act, 1932? (Dec 2014, 3 marks)
Answer:
Section 37 of the Indian Partnership Act, 1932 provides that where a partner dies or otherwise ceases to be a partner and there is no final settlement of account between the legal representatives of the deceased partner or the firms with the property of the firm, then in the absence of a contract to the contrary, the legal representatives of the deceased partner or the retired partner entitled to claim either.

  • such shares of the profits earned after the death or retirement of the partner which, is attribute to the use of his share in the property of the firm; or
  • interest at the rate of 6 percent per annum on the amount of his share in the property.

Based on the aforesaid provisions of the Section 37 of the Indian Partnership Act, 1932 in the given problem, A’s representative, at his option, can claim:

  • the 20% shares of profits (as per the partnership deed); or
  • Interest at the rate of 6 percent per annum on the amount of As share in the property.

Question 8.
Answer the questions:
(a) (iii) Rohit and Anurag are partners in a firm. They borrowed a sum of ₹ 10,000 from Parul. Later on, Rohit becomes insolvent but his assets are sufficient to pay back the loan. Parul compels Anurag for the payment of entire loan. Referring to the provisions of the Indian Partnership Act, 1932, examine the validity of Parul’s claim and decide as to who may be held liable for the above loan. (June 2015, 3 marks)
(c) (iii) Arun, Varun, and Tarun started a Kirana business in Chennai on 1st January 2012 for a period of five years. The business resulted in a loss of ₹ 20,000 in the first year, ₹ 25,000 in the second year and ₹ 35,000 in the third year, Varun and Tarun wish to dissolve the firm while Arun wants to continue the business. Advise Varun and Tarun. (June 2015,2 marks)
Answer:
(a) (iii) The present problem is concerned with the contractual liability of the Partners. As stated in the Section 25 of the Indian Partnership Act, 1932, in partnership the liability of the partners is unlimited.

The share of each partner in the partnership property along with his private property is liable for the discharge of partnership liabilities.

The liability of the partners is not only unlimited but is also stated that a partner is both jointly and severally liable to third parties.

However, every partner is liable jointly with other partner and also severally for the acts of the firm done while he is a partner.

On the basis of above provisions, Parul can compel Anurag for the payment of entire loan. Anurag must pay the said loan and then he can recover the share of Rohit’s loan from his property.

(c) (iii) As per provisions of Sec. 44(f) of Indian Partnership Act, 1932, Varun and Tarun are advised to make a petition to the Court for the dissolution of the firm on the ground that the firm cannot be carried on except at a loss. Since the firm was constituted for fixed term of five years it cannot be dissolved without the consent of all the partners and as such Varun and Tarun cannot compel Arun to dissolve the firm.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

Question 9.
(a) Answer the question:
(iii) Akash, Ashish, and Anhl were partners in a firm. By his willful neglect and misconduct, Anil caused serious toss to the business of the firm. After several warnings to Anil, Akash and Ashish passed a resolution expelling Anil from the firm. By another resolution, they admitted Abhishek as a partner in place of Anil. Anil objects to his expulsion as also to the admission of Abhishek. Is he justified in his objections? (Dec 2015, 3 marks)
Answer:
A partner may be expelled from a firm by majority of the partners only if,

  • The power to expel has been conferred by contract between the partners, and
  • Such a power has been exercised in good faith for the benefit of the firm.

The partner who is being expelled must be given reasonable notice and opportunity to explain his position and to remove the cause of his expulsion.

Yes, Anil is justified in his objections. :
In the absence of an express agreement authorizing expulsion, the expulsion of a partner is not proper and is without any legal effect.

[Section 33(1)] Anil’s objection to the admission of Abhishek is also justified as a new partner can be admitted only with the consent of all the partners.[Sectlon 31(i)]

 

Question 10.
(ii) Mayur and Nupur purchased a taxi to ply it in partnership. They had done business for about a year when Mayur, without the consent of Nupur, disposed of the taxi. Nupur brought an action to recover his share in the sale proceeds. Mayur’s only defence was that the firm was not registered. Will Nupur succeed in her suit? (Dec 2015, 3 marks)
Answer:
As per Section 69(3) of Indian Partnership Act, the term set-off may be defined as the adjustment of debts by one party due to him from the other party who files a suit against him. It is another disability of the partners and of an un registered firm that it cannot claim a set-ott when a suit is filed against it.

Yes, Nupur will succeed in her suit. As the business had been closed on the sale of the taxi, the suit in the question is for claiming share of the assets of a dissolved firm. Section 69(3) especially protects the right of a partner of an unregistered firm to sue for the realization of the property of a dissolved firm.

Question 11.
Answer the question:
(ii) ABC & Co., a firm consists of three partners A, B and C having one-third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so quoting the relevant provisions of the Indian Partnership Act. (June 2016, 5 marks)
Answer:
Expulsion of a partner (Sec. 33):
Expulsion of a partner Is another event necessitating reconstitution of a firm.
A partner may be expelled from a firm if the following conditions are satisfied:

  • expulsion should be as per the express provisions in the agreement;
  • power of expulsion should be exercised by majority of partners;
  • expulsion should be in good faith.

Only when all the above three conditions are satisfied a partner can be expelled from a firm.

As stated above expulsion should be in good faith. The test of good faith may be:

  • expulsion is in the ¡nte rest of the firm
  •  expelled partner has been given notice
  • an opportunity of being heard has been .aff orded to the partner.

Thus, in the given case A and B the majority partners can expel the partner only the above conditions are satisfied and procedure as stated above has been followed. Further, the in valid expulsion of a partner does not put an end to the partnership and it will be deemed to continue as before.

Question 12.
Answer the question:
(iii) X and Y were partners carrying on a banking business. X had committed adultery on several women in the city and his wife had left on this ground. Y applied to the court for dissolution of the firm on this ground. Will he succeed? (Dec 2016, 5 marks)
Answer:
As per Section 44(c) of Indian Partnership Act, 1932 sometimes, a partner is guilty of misconduct. When the Court is satisfied that the misconduct adversely affects the partnership business the Court may allow the dissolution of the firm: Y will not succeed. In this case, though X is guilty of misconduct but his misconduct does not have any adverse effect on their business as bankers [Snow y. Milford (1868) 18 LT 142).

In the above case, the Court observed that how can it be said that a man’s money is less safe because one of the partners commits adultery. It was further observed that in those cases where the moral conduct of a partner would affect the firm business, it can be a ground for dissolution of the firm. e.g. where a medical man had entered into partnership with another and it was found that his conduct was very immoral towards some of his patients, the firm can be dissolved on the ground of misconduct by the partner.

Short Notes

Question 13.
(a) Write short note on:
(iv) Annual Return (limited liability partnership) (June 2013, 4 marks)
Answer:
Annual return: (Section 35): As per Section 35 of the LLP Act, every LLP shall file an annual return within sixty days of its financial year in such form and manner as may be prescribed. Such return should be accompanied by prescribed fees.

If the LLP fails to comply with the provisions of Section 35 regarding filing of annual return, the LLP will be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every designated partner of such LLP shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

Descriptive Questions

Question 14.
Comment on the following based on legal provisions:
Provisions of Indian Partnership Act 1932 are applicable to LLPs and the body Corporate may be partner of LLP. (Dec 2012, 2 marks)
Answer:
The rules and regulations relating to Limited Liability Partnership have been described in the Limited Liability Partnership Act 2008, hence provisions of Indian Partnership Act 1932 are not at all applicable to LLP’s. As regards the second portion of the question, the body corporate may be a partner in the LLP as per LLP Act 2008.

Question 15.
If the following statements are not correct, give the correct answer.
(i) Authorized capital for formation of limited liability partnership (LLP) is one crore.
(ii) Maximum number of partners in a LLP shall not exceed 50.
(iii) Foreign nationals can also be partners in a LLP.
(iv) Audit is not required in LLP in any circumstances. (Dec 2013, 1 x 4 = 4 marks)
Answer:
(i) NIL-Since the authorised capital is not specified in the Act.
(ii) No maximum limit-as no specific number specified in the Act.
(iii) Yes, foreign Nationals can also be partners.
(iv) Audit is required if the contribution is above INR 25 Lakhs or if annual turnover is above INR 40 Lakhs.

Question 16.
What are the circumstances in which Limited Liability Partnership may be wound up by Tribunal?
(Dec 2013, 3 marks)
Answer:
The circumstances in which a limited liability of partnership may be dissolved by Tribunal are provided in Section 64 of the Limited Liability Partnership Act, 2008 A limited liability partnership may be wound up by the Tribunal in following ways:

  • The limited liability partnership decides that limited liability partnership be wound up by the Tribunal;
  • if, for a period of more than six months, the number of partners of the limited liability partnership is reduced below two;
  • if the limited liability partnership has acted against the interests of the sovereignty and integrity of India, the security of the state, or public order;
  • if the limited liability partnership has made a default in filling with the Registrar the statement of account and solvency or annual return for any five consecutive financial years; or
  • if the Tribunal is of the opinion that it is just and equitable that the limited liability partnership be wound up.
  • If the limited liability partnership is unable to pay its debts.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

Question 17.
(i) Explain the concept of ‘whistle-blowing’ with respect to the Limited Liability Partnership Act, 2008. (June 2014, 3 marks)
Answer:
A whistle-blowing policy means a policy in which a mechanism is established to listen and take action against any wrong practice anywhere in the company. The concept has been discussed in Section 31 of the Limited Liability Partnership Act, 2008.

As per the Section:
1. The Court or Tribunal may reduce or waive any penalty leviable against any partner or employee of a limited liability partnership if it is satisfied that:

  • such partner or employee of a limited liability partnership has provided useful information during investigation of such limited liability partnership; or
  • when any information given by any partner or employee (whether or not during investigation) leads to limited liability partnership or any partner or employee of such limited liability partneršhip being convicted under this Act or any other Act.

2. No partner or employee of any limited liability partnership may be discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against the terms and conditions of his limited liability partnership or employment merely because of his providing information or causing information to be provided pursuant to sub-Section(1).

Question 18.
A Limited Liability Partnership is not bound by any act of its member. Justify. (June 2014, 2 marks)
Answer:
It the member has no authority to act on behalf of LLP, the LLP is not bound by his act. A limited liability partnership is not bound by any act of a member in dealing with persons if:

  • The member in fact has no authority to act for the limited liability partnership by doing that thing.
  • The person knows that the members has no authority or does not know or believe him to be a member of limited partnership.

Question 19.
A limited liability partnership wants to shift its registered office from Udaipur in the State of Rajasthan to Gurgaon in the State of Haryana. What procedure the corporation has to follow? (Dec 2014, 4 marks)
Answer:
Sec. 13 of the LLP Act states that a limited liability partnership may change the place of its registered office and file the notice of such change with the Registrar in Form 15 within 30 days.

Registered office can be changed from one place to another place in the manner provided in the Partnership Agreement, if the agreement is silent then consent of all partners shall be required for changing the place of registered office of limited liability partnership to another place, where the change in place of registered office is from one State to another State, the limited liability partnership having secured creditors shall also obtain consent of such secured creditors.

Where the change in place of registered office is from one state to another state, a general notice, not less than 21 days before filing any notice with Registrar, is required to be published in a daily newspaper published in English and in the principal language of the district in which the registered office of the limited liability partnership is situated and circulating in that district giving notice of change of registered office.

However, there is just change in the jurisdiction of one Registrar to the jurisdiction of another Registrar; the limited liability Partnership shall file the notice in Form 15 with the Registrar from where the Limited liability partnership proposes to shift its registered office with a copy thereof for the information to the Registrar under whose Jurisdiction the registered office is proposed to be shifted.

Failure to comply with the provision of this section the limited liability partnership and its every partner is liable to be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees.

Question 20.
Answer the question:
(ii) Explain the extent of liability of limited liability partnership under Section 26 of LLP Act. (June 2015, 3 marks)
Answer:
Extent of liability of limited liability partnership is contained in Section 27 which are as under:
1. A limited liability partnership is not bound by anything cloned by a partner in a dealing with a person if:

  • the partner in fact has no authority to act for the limited liability partnership in doing a particular act; and
  • the person knows that he has no authority or does not know or believe him to be a partner of the limited liability partnership.

2. The limited liability partnership is liable if a partner of a limited liability partnership is liable to any. person as a result of a wrongful act or omission on his part in the course of the business of the limited liability partnership or with its authority.

3. An obligation of the limited liability partnership whether arising in contract or otherwise, shall be solely the obligation of the limited liability partnership.

4. The liabilities of the limited liability partnership shall be met out of the property of the limited liability partnership.

Question 21.
For any contravention of provisions of the LLP Act or LLP agreement, all the partners of LLP are liable for all penalties. Offer your views based on Limited Liability Partnership Act, 2008. (Dec 2015, 3 marks)
Answer:
False, it is the designated partner who is responsible for doing all acts matters, and things as are required to be done by LLP as per the Act or as specified in the LLP agreement, Unless expressly provided otherwise in this Act, a designated partner shall be responsible for doing of all acts, matters, and things as are required to be done by the limited liability partnership in respect of compliance of the provisions of this Act including filing of any document, return, statement and the like report pursuant to the provisions of this Act and as may be specified in the limited liability partnership agreement; and liable to all penalties imposed on the limited liability partnership for any contravention of those provisions.

Question 22.
Answer the question:
Limited Liability Partnerships are body corporate. Do you agree? Justify. (June 2016, 5 marks)
Answer:
Limited liability partnership to be body corporate:

  1. A limited liability partnership is a body corporate formed and incorporated under this Act and is legal entity separate from that of its partners.
  2. A limited liability partnership shall have perpetual succession.
  3. Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership.

Question 23.
Answer the question:
List the circumstances under which a LLP formed under the Limited Liability Partnership Act, 2008 may be wound up by tribunal. (Dec 2016, 6 marks)
Answer:
A limited liability partnership may be wound up by the Tribunal, if:

  • The limited liability partnership decides that limited liability partnership be wound up by the Tribunal;
  • it, for a period of more than six months, the number of partners of the limited liability partnership is reduced below two;
  • If the limited liability partnership ¡s unable to pay its debts;
  • If the limited liability partnership has acted against the interests of the sovereignty and integrity of India, the security of the State or public order;
  • If the limited liability partnership has mode a default in tiling with the Registrar the Statement of Account and Solvency or annual return for any five consecutive financial years; or
  • If the Tribunal is of the opinion that it is just and equitable that the limited liability partnership be wound up.

Question 24.
A limited liability partnership wants to shift its registered office from Mumbai in the State of Maharashtra to Kolkata in the State of West Bengal. What procedure the corporation has to follow under Limited Liability Partnership Act, 2008? (Dec 2018, 8 marks)
Answer:
According to Sec. 13 of the LLP Act Provides that a limited liability partnership may change the place of its registered office and file the notice of such change with the Registrar in form 15 within 30 days.

Registered office can be changed from one place to another place in the manner provided in the Partnership Agreement, if the agreement is silent then consent of all partners shall be need for changing the place of registered office of limited liability partnership to another place, where the change in place of registered office is from one State to another State, the limited liability partnership having secured creditors shall also obtain consent of such secured creditors.

Where the change in place of registered office is from one State to another State, a general notice, not less than 21 days before filing any notice with Registrar, is need to be published in a daily newspaper published in English and in the principal language of the district in which the registered office of the limited liability partnership is situated and circulating ¡n that district giving notice of change of registered office.

Although, there is just change in the jurisdiction of one Registrar to the jurisdiction of another Registrar; the limited liability Partnership shall file the notice in Form 15 with the Registrar from where the Limited liability partnership proposes to shift its registered office with a copy thereof for the information to the Registrar under whose Jurisdiction the registered office is proposed to be shifted.

Failure to comply with the provision of this section the limited liability partnership and its every partner is liable to be punishable with fine which shall not be less than two thousand rupees but which may extend to twenty-five thousand rupees.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

Alternate Answer:
Change of LLP Office from one State to another (In the given problem, it is from iViumbal, Maharashtra to Kolkata, West Bengal)
1. ResolutIon for Change of Address: It should be done as per LLP Agreement. If where the Limited LLP doesn’t provide for any such procedure, consent of all partners shall be required for changing the place of Registered Office of Limited LLP to another place.

2. Secured Creditors: Consent of Secured Creditors required for such change of address.

3. Form to be filed: Form- 15 to be filed with Registrar from where (here it is Mumbai) the LLP proposes to shift its registered office with a copy thereof for the information to the Registrar under whose jurisdiction (Kolkata) the registered office is proposed to be shifted within 30 days of such change.

4. Pubhc Notice: Publish a general notice, not less than 21 days before filing any notice with Registrar, in a daily newspaper published in English and another regional language where the registered office of the LLP is situated (Mumbai, Maharashtra) and circulated in that district giving notice of change of registered office.

5. From when to be filed: Within 30 days of publishing of notice.

6. Penalty: Failure to comply with these provisions, the LLP and it’s every partner is liable to punishable with fine which shall not be less than two thousand rupees but which may extend to twenty five thousand rupees.

Question 25.
Discuss the procedure of conversion from private limited company into limited liability partnership. (Dec 2019, 9 marks)
Answer:
The procedure of conversion from private limited company Into Limited Liability Partnership is examined below:
Para 1(b) of the third schedule defines the term ‘convert’ in relation to a private company converting into a LLP, as a transfer of the property, assets, interests, rights, privileges, liabilities, obligations, and the undertaking of the private company to the LLP in accordance with the third schedule.

A company may apply to convert itself into a LLP if and only if –

  • There is no security interest ¡n its assets subsisting or in force at the time of application; and
  • The partners of the LLP to which it converts comprise all the shareholders of the company and no one else.

Upon the conversion of a private company into an LLP, the company and its shareholders, the LLP and the partners of the LLP shall be bound by the provisions of this schedule that are applicable to them.

The company has to apply with the Registrar by filing the different documents:
1. A statement by all its shareholders in Form No. 18 and fees containing the following particulars

  • The name and registration number of the company;
  • The date on which the company was incorporated; and

2. Incorporation document and statement; On the receipt of the above said documents, the Registrar shall register the documents subject to the provisions of the Act and the rules made there under. The Registrar may require the documents to be verified as he considers fit. The Registrar shall issue a certificate of registration in Form No. 19 as the Registrar may determine stating that the LLP is, on and from the date specified in the certificate.

The LLP shall inform the concerned Registrar of Companies (ROC) within 15 days of the date of registration about the conversion and of the particulars of LLP in Form along with the fees.

If the Registrar is not satisfied with the particulars or other information furnished the Registrar may refused to register. Against this order appeal may be made before the Tribunal.

Question 26.
Discuss the procedure of conversion from unlisted public company into limited liability partnership. (Dec 2022, 10 marks)

Limited Liability Partnership Act, 2008 CMA Inter Law, and Ethics Notes

1. Meaning of LLP
Any two or more persons associated for carrying on a lawful business with a view to earn profit may form a limited liability partnership by subscribing their names to an incorporation document and registration with the registrar of companies.

2. Mutual Rights and duties of partners
Mutual rights and duties of partners of an Limited Liability Partnership meters and those of the Limited Liability Partnership and its partners shall be governed by an agreement between the partners.

3. No. of Partner
Every Limited Liability Partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident of India.

4. LLP Agreement
The mutual rights and duties of the partners of limited liability partnership and the mutual rights and duties of a limited liability partnership and its partners shall be governed by the limited liability partnership agreement between the partners or between the limited liability partnership and its partners.

5. Solvency
Every limited liability partnership shall file the Statement of Account and Solvency in Form 8 with the Registrar, within a period of thirty days from the end of six months of the financial year to which the Statement of Account and Solvency relates. A limited liability partnership’s Statement of Account and Solvency shall be signed on behalf of the limited liability partnership by its designated partners.

6. Accounts Audited
A limited liability partnership whose turnover exceeds forty lakh rupees, in any financial year or whose contribution exceeds twenty-five lakh rupees shall be required to get its accounts audited.

7. Annual Return
Every limited liability partnership shall file an annual return with the Registrar in Form 11.

Limited Liability Partnership Act, 2008 - CMA Inter Law and Ethics Study Material

8. Foreign LLP
As per rule 34(1) of the LLP Rules, a foreign limited liability partnership shall, within thirty days of establishing a place of business in India, file with the Registrar in Form 27-

  • a copy of the certificate of incorporation;
  • the full address of the registered or principal office of the limited liability partnership in the country of its incorporation;
  • the full address of the office of the limited liability partnership in India which is to be deemed as its principal place of business in India;
  • list of partners and designated partners, if any and the names and addresses of two or more persons resident in India, authorized to accept on behalf of the limited liability partnership, service of process and any notices.
SIP Cancellation Form

SIP Cancellation Form – How to Cancel a SIP?

Leave a Comment / Finance / By / December 12, 2023

SIP Cancellation Form: Many mutual fund companies are offering a Systematic Investment Plan (SIP) to their investors. With the help of this plan, investors can invest a small amount instead of investing a lump sum. Nowadays, most investors prefer to invest through this plan, but they have certain questions or doubts regarding the cancellation of this plan. Certain questions like How do I cancel a SIP? How to discontinue a SIP? How long does the cancellation take? comes to the investor’s mind. Through this article, we will try to clear some of their doubts so that they can invest without having any fears.

How to Cancel a SIP?

SIP or Systematic Investment Plan is considered as a commitment to invest for a specific amount of time under a particular mutual fund scheme. In the case of perpetual SIP, one can invest as long as he/she wishes as they don’t have any end date. But sometimes, people lose their interest in these kinds of investments because of having less money to invest or due to poor performance of SIP, and they want to discontinue their plan as soon as possible.

As SIP is considered a voluntary investment, one has the right to discontinue it whenever the need arises. The mutual fund company didn’t have the right to charge any cancellation fees for discontinuing the SIP midway. The mutual fund company and the bank through which funds are provided for the periodic investment have to be informed about the discontinuation of the SIP.

Different Ways of Cancelling the SIP

  • If a person has invested in SIP through an online platform such as AMC Website, CAMS, Karvy, MFUtility, ETMoney, Coin Zerodha and Groww, then he/she can cancel the plan anytime through the official website of the company.
  • If a person has invested in SIP through a distributor, then he/she has to fill up a SIP Closure Form. This form is issued by the Asset Management Company. One must put the exact date on the form from when he/she wants to discontinue the SIP. After filling it up, submit it to the AMC. It might take approximately 21 days for the cancellation or discontinuation of the SIP.
  • If the person investing through SIP has activated NACH, then he/she only needs to remove the Asset Management Company as a biller from his/her bank. After these actions, no further investment will take place in his/her folio.
  • If a person’s account is considered underfunded or stops payment instructions have been forwarded for more than 2 months, then AMC has all the rights to discontinue the SIP.

Note:

  • A person who has invested in the SIP for a specific period then after the expiry of the period the SIP stops automatically.
  • There is no need of redeeming the money once the SIP is cancelled.
  • Cancellation of SIP attracts no tax because, in this case, one is stopping the investment; thus, taxes are exempted.

How to Cancel a SIP

Pause or Temporary Stop of SIP

If a person is investing in SIP through an online platform, then he/she can easily pause it whenever the need arises. If an investor wants to stop the SIP temporarily, then he/she needs to give a stop payment instruction to the bank or maintain a low balance in the bank account. This will lead to the cheque being dishonoured. One can continue to invest in the same SIP after this period.

When Should You Stop The SIP?

People seem to stop investing in SIP and decide to discontinue it when the stock market falls. But during these times, one should invest more and increase the SIP amount so that he/she can earn some huge profits in the long run. SIP with a long-term horizon mitigates market risk and volatility. But most of the investors get afraid and stop their investment in SIP.

SIP Cancellation Form

A SIP cancellation form is used to collect the details of the investor who wants to discontinue or cancel the SIP. Through this form, the mutual fund company gets to know the date when the investor is planning to stop the SIP. One can download this form from the official website of the mutual fund company. In case the SIP has joint holders, then the form needs to get signed by either one of the holders or by all the holders depending upon the mode of holding. Let’s discuss the way of obtaining SIP cancellation form from two companies:

How to Obtain SIP Cancellation Form From Cams

  • Visit the official website of Cams, i.e., camsonline.com and go click on the Tab “Investors Services”
  • Click on “Service Request Forms”, which you can find on the left-hand side of the webpage.
  • Under the option “Non-Financial Transaction Request”, select  SIP/SWP/STP Cancellation request.
  • Tick the SIP box for placing the cancellation request. You might notice a drop-down list from where you can select mutual funds.
  • A site will appear asking about your details, fill each and every detail correctly without making any mistakes after filling up the details, press next.
  • Fill in the other details and print the form. You need to take this form and present it before the CAMS RTA local office or AMC office and lastly, submit the application. You will receive an acknowledgement receipt on the return of your submission.

How to Obtain SIP Cancellation Form From Karvy

  • Go to the official website of Karvy, i.e., https://www.karvymfs.com/karvy/
  • Click on the option “Mutual Fund Investor Services”.
  • Under the “Downloads”, click on the option “services”. 
  • You have to scroll down in order to reach the “services” section and then click on click on SIP/STP/SWP cancellation request.
  • After completing all the above steps, you will reach a webpage where you will have access to download the SIP cancellation form.
  • After filling up the SIP cancellation form correctly, you need to present it before the Karvy RTA local office or AMC office and then submit it to them. Every time remember to collect the acknowledgement receipt, which will act as proof in the near future if anything goes sideways.
Reasons for GSTR- 9 Extensions

GSTR-9 | Date Extension Updates And Common Issues Faced By CAS While Filing It

Leave a Comment / GST / By / November 13, 2023

GSTR-9: GSTR 9 refers to the GST annual return form that the regular taxpayers must pay yearly with all the essential details, including CGST, SGST, and IGST paid in the year. This content includes all the essential and related details of GSTR-9 annual procedures, eligibility, format, and rules.

Latest Updates about GSTR-9

The deadline for filing GSTR-9 has been extended a few times for numerous reasons, including the complexity in filling the form. For the businesses and CAs, the last year has been a lot confusing and a complex duration where they tried understanding the complicated GSTR-9 form when they continued tallying the monthly and quarterly filed returns with the account books.

GSTR-9 updates as on various dates are mentioned here:

  • As of 28th February 2021: The due date for filing GSTR-9 and GSTR 9C for the financial year 2019-20 got further extended up to 31st March 2021.
  • As of 1st February 2021: GST audit requirements by the professionals like CMAs and CAs got removed from the GST law. For this, Sections 35 and 44 were also amended. According to the amendment, on the GST portal, only GSTR-9 annual returns requires filling based on self-certification by the taxpayers. It entirely removed the need for a GSTR 9C reconciliation statement. The government has not yet clarified the date for applicability of this removal.
  • As of 30th December 2020: The due date for filing GSTR-9 and GSTR 9C for the financial year 2019-20 got extended up to 28th February 2021.
  • As of 28th October 2020: The due date for filing GSTR-9 and GSTR 9C for the financial year 2018-19 got further extended till 31st December 2020.

Reasons for GSTR- 9 Extensions

Here is a list of some reasons that led to the extension for the due date of filing GSTR-9:

The Mismatch of ITC Between GSTR-2A and GSTR-9’s Table 8A

This area caused immense pain for the taxpayers due to the mismatch between the input tax credit that appeared in the auto-generated GSTR-2A return and the input tax credit that was auto-filled in table 8A of GSTR-9. Some primary reasons for this mismatch are as follows:

  • There is no chance for the input tax credit on supplies for the financial year 2017-18 to get auto-populated in GSTR-9 if the same got declared beyond 20th April 2019.
  • After considering the amendments, the final figures reported in GSTR-9 were found to be against the gross value that appeared in GSTR 2A.
  • For the time when the recipient taxpayer was under Composition Scheme, the input tax credit related to the invoices failed to appear in GSTR-9.
  • Where the supply places lie in the supplier taxpayer’s state instead of the recipient taxpayer, the input tax credits on the invoices got excluded from GSTR-9.

Bifurcation of Input Tax Credit Required in GSTR-9 and GSTR 9C

For GSTR-9, there was a need for bifurcation of all the input tax credit availed from the capital goods, inputs, and input services. Therefore, the form thus requires a complete thorough analysis of a taxpayer’s account books along with the verification by the concerned auditor. As not all taxpayers keep a record of this bifurcation, it leads to undue stress of obtaining the details later for avoiding misreporting it.

Some Input Tax Credits Were Claimed But Are Not Reflecting in GSTR 2A:

For the financial year 2017-18, while filing GSTR 3B returns, some taxpayers claimed the input tax credit to be eligible under the CGST act. A significant part of the input tax credit is not reflecting in GSTR 2A for numerous taxpayers. With this scenario, the question that arises is whether that input tax credit will be considered ineligible and will the taxpayers start receiving notices from the tax department with a fair chance to prove the authenticity of those credits.

GSTR-9

Some Goods Got Imported In The Financial Year 2017-18, But Itc Only Claimed In The Financial Year 2018-19

There is no separate field for reporting the input tax credit claimed in the financial year 2018-19 over the goods that previously got imported in the financial year 2017-18. Even though the government clarified that such input tax credit must be reported in table 6(E) of GSTR-9, that will be for the full credit availed between 2017 July and 2019 March. As the auditors are required to prepare the reconciliation statement based on this information, it is easier for the taxpayers to report it accurately and separately.

Overlaps in the Figures of Table 6(B) and 6(H)

Table 6(B) requires the reporting of the inward supplies and income tax credit availed during the financial year, apart from the imports and the inward supplies liable for reversing the charges. In contrast, in table 6(H), a reporting of input tax credit availed, reversed, and then reclaimed in the same financial year. This resulted in the figures’ overlaps in table 6(B) and 6(H) of GSTR-9. Even though the government issued a clarification to caution the taxpayers about both fields’ meaning, there is a need for more clarification, including the examples and redressal of accounting challenges.

RCM Liability’s Disclosure in GSTR-9

CBIC released a clarification for disclosing the liability under RCM due for the financial year 2017-18 but was paid in the financial year 2018-19, but that was unclear. This is mainly because on 4th June 2019, the press release used the words “additional outward supply” and did not mention RCM. However, on 28th June 2019, the Central Tax notification was released with the words “additional liability.” As the taxpayers have to report the total of these undisclosed liabilities under table 4(G) of GSTR-9, the equivalent tax portion of these liabilities requires to get declared under the ‘Tax payable’ section in Table 9.

Declaration of HSN Summary for Inward And Outward Supplies

HSM summary details must be disclosed by the suppliers having a turnover of more than 1.5 crores INR. This is an essential requirement for the inward and the outward supplies. It caused some essential hassles for the taxpayers who failed to maintain this data previously and are now required to spend more time and effort obtaining and reporting these details.

No Clarity for Filling GSTR-9’S Table 4F

Table 4F of GSTR-9 discloses all the advances on which the tax is paid without issuing the invoices. Clarification for filling this table states that the information source must be table 11A of GSTR1 returns. This is good only for the monthly level as annually; the entire year’s adjustments must be considered. This signifies that the data must also be sourced from table 11B of the GSTR1 returns.

Strenuous Process of Uploading GSTR 9C

The entire process of uploading GSTR 9C is hectic and involves various steps that the auditors find time-consuming, unnecessary, and complex. Apart from the involved procedure, there are some other issues while filing GSTR 9C where the statutory auditor’s address details do not get accurately captured. The auditor cannot entirely enter the qualifications due to the word limit.

Other Issues Faced in Filing GSTR 9

Along with the issues mentioned above, some taxpayers also faced some other issues while filing GSTR-9, like:

  • Negative values copy-pasted in GSTR 9 and GSTR 9C offline utilities are only allowed in tables 5M, 5N, and 5O. Negative values can also be copied elsewhere, and JSON gets generated, but the GSTN does not process similarly.
  • Even after no error detection, the JSON file does not get uploaded.
  • There are two final PDF copies of GSTR filed returns in some cases, and the GSTN portal has not yet resolved the issue.
  • Set-off is completed under DRC-03, but the taxpayers still cannot file it.
  • In some cases, the DRC-03 is not getting reflected on the common portal.
  • The bifurcation or splitting of the expense ledger in GSTR 9C is a time-consuming process and does not has any known relevance.

The Surath People’s Cooperative Bank Personal Loan | Eligibility, How To Apply?, Advantages and Documents Required

Leave a Comment / Loan / By / November 13, 2023

The Surath People’s Cooperative Bank Personal Loan: The mission of the Surath People’s Co-operative Bank is to be the choicest financial service provider with a particular focus on ingenious quality products, technical expertise and efficient services for customer to achieve their objectives and goals.

In this article we would also know about Surat People’s Bank Personal Loan, Surat People’s Bank Personal Loan Application Procedure and myths on personal loans in this article.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

The Surath People’s Cooperative Bank

The Surath People’s Cooperative Bank Personal Loan Overview

With the commencement of the 20th century, Co-operative Movement had started in India and the dream of Late Shri Raosaheb Vrundavandas Jadav to start a cooperative bank turned into reality under the name of The Surat People’s Co-operative Bank Ltd.

The Surat People ’s Co-operative Bank Ltd was established in 1922 at Surat. It was registered on 10th March 1922 and started functioning from 21st April 1922 onwards. The Bank was first registered as Urban Co-Operative Bank in India and became a Scheduled Bank on 1st September 1988.

How to Apply for a Personal Loan in the Surat People’s Co-operative Bank?

The way to apply for the Surat People’s Cooperative Bank Personal Loan is very easy. One can apply online by going to the bank’s website and filling out the application form there by filling the necessary personal and work information along with the uploading the relevant and necessary documents online.

All the aforesaid steps can also be done offline in a manual way by visiting the bank and completing all the procedures there under the guidance of a bank employee.

The Surath People’s Cooperative Bank Personal Loan Eligibility Criteria

People from are of 21 to 58 years can apply for the Surat People’s Cooperative Bank Personal Loan. Permanent staff of the State or Central Government, Public Sector Undertakings, Corporations, the Private Sector Companies and reputed companies or establishments are also eligible. Salaried / Self – Employed with regular income and people with number of minimum 3 years in the present job/ business/ profession are also eligible for the Surat People’s Cooperative Bank Personal Loan.


The Surath People’s Cooperative Bank Personal Loan Documents Required

The personal documents which are required for the Surat People’s Cooperative Bank Personal Loan are as follow –

  • Completely filled and signed up application form of the personal loan.
  • Passport sized photograph of the applicant.
  • Proof of identity- Passport, Driving license, Aadhar Card, Government Department ID card, PAN Card, Voter ID card.
  • Proof of income- Latest salary slip showing all deductions or Form 16 along with recent salary certificate (for salaried or remunerated individuals), these are mainly used as Income Certificates. Income Tax Returns of two previous financial years are also required (for other than salaried or remunerated individuals).
  • Proof of Address – The Bank account statement, Latest electricity bill, Latest mobile or telephone bill, most recent credit card statement, existing house lease agreement.
  • Bank Statement or Bank Pass Book that has entries of last 6 months are also required among the required documents.

The Surath People’s Cooperative Bank Personal Loan Features

  • Loan amount is maximum
  • No security is required to avail for the personal loan
  • Myriad loan repayment options
  • The mode of application of the personal loan is fast and easy
  • Attractive interest rates
  • Offers special schemes as well as discounts for employees of large firms or companies
  • Approval of the loan is quick
  • Guarantor isn’t insisted upon by the bank

Takeaways from the Article

The Bank is immensely popular in the city of Surat in the Indian state of Gujarat and is serving since 97 years to the people of Surat as well as to the people of South Gujarat. The bank has a chain of 30 branches, 25 in Surat, 1 branch at Vapi , 1 branch at Navsari, 1 branch at Chikhli, 1 branch at Valsad (all in Gujarat) and 1 branch at Mumbai (in the Indian state of Maharashtra).

Hence, the bank carried a prestigious history and trustworthy customers and years of experience an success in Banking.

Utkarsh Small Finance Bank Personal Loan | Eligibility Criteria, Documents Required, Features, Characteristics and Advantages

Leave a Comment / Loan / By / November 13, 2023

Utkarsh Small Finance Bank Personal Loan: For fulfilling all types of financial requirements like a holiday abroad, wedding, reimbursement of a prevailing loan, medical urgencies, and many more. Without distressing about holding any collateral or estate, which is possible with the help of the amazing Utkarsh Small Finance Bank personal loan rate of interest.

You can take the loan with the minor documents at a suitable rate of interest. Moreover, one can use the amount of the loan for various reasons and put the Utkarsh Small Finance Bank loan calculator tool to use.

If you are willing to apply for a personal loan, it is important to know about the documents and the method in detail.

Thus, read further about the significant components in Personal loans by Utkarsh Small Finance Bank, including the method of Utkarsh Small Finance Bank loan apply online, and much more.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank Overview

Utkarsh Small Finance Bank gives banking assistance like gives accounts for checking, securities, cash market, undertaking, security, mortgages, and period loans, as well as remittances, and Internet banking assistance. It assists clients in India.

The motive of the bank is to give hope to clients for fulfilling their ambitions and desires.

It focuses on giving assistance that is process-oriented, technology-driven, and people-centered emerging in reasonable, extensible, and endurable organizations stimulating social-class modification.

Utkarsh Small Finance Bank Features

  • It provides accessible banking assistance – loans, budgets, securities, and interests across India to fulfill your everyday requirements.
  • It gives personal loans to salaried clients, in private or civil section associations that meet the eligibility norms.
  • Reimbursement in EMI.
  • The bank gives its clients a choice to protect their savings in FD and receive good repays.
  • In this bank personal loan amount starts from Rs. 100,000 to 1,000,000 and rate of interest on personal loan 14to 28 percent per annum.
  • It gives several kinds of savings account choices to serve different clients’ necessities.

How to Apply for a Personal Loan in Utkarsh Small Finance Bank?

An individual can visit their closest Utkarsh Small Finance Bank’s sector or can also interact with them regarding the requirements at communications@utkarsh.bank.

Utkarsh Small Finance Bank Personal Loan Eligibility Criteria

  • Age should be between twenty-one to fifty-eight years.
  • The person should be a permanent worker of State or Central Government or esteemed establishments.
  • Needs to have regular earnings whether the individual is salaried or self-employed.
  • Working experience at the recent job needs to be at least three years.
  • The net salary of the individual needs to be at least 25,000 per month.

Utkarsh Small Finance Bank Personal Loan Documents Required

  • One needs to fill the form with appropriate information along with the applicant’s signature.
  • Proof of identity like Passport, Voter Id, etc is needed.
  • Adress evidence such as Voter ID, bill of telephone, etc is required.
  • Bank declaration of last six months.
  • Recent salary receipt with the latest Form 16
  • The recent form 16 with the salary receipt is needed.
  • Passport size images.

Reasons for Rejection of the Loan

  • The low credit value can be a reason for the rejection of a loan as credit value shows the credit trustworthiness of the person. Thus, decent credit value shows that the individual can pay back the loan without default while low credit value leads to the rejection of the loan application.
  • A higher value of the prevailing loan lessens the possibility of getting a new loan.

Utkarsh Small Finance Bank Personal Loan Features

  • The loan amount is up to Rs. Ten lakhs.
  • Salaried persons are eligible.
  • A processing fee is up to two percent of the sanctioned amount.
  • One can utilize the amount of loan to fulfill different expenditures like those related to the renovation of the house, trips, weddings, and medical crises.
  • Reimbursement term: Applicants are allowed to pay back the amount of the loan in a duration that varies from 1 year to 4 years, as per the individual’s comfort.
  • The bank enables the person to pay the loan amount before the payable period both in portion and entire, which guarantees savings in extents of interest payoff. This is yet liable to distinct situations and indictments.
  • Numerous loan repayment choices
  • Quick and straightforward personal loan request processing
  • Quick loan authorization
  • Impressive and competitive interest rates
  • Offers outstanding strategies and rebates for workers of large corporations
  • Generally, no assuranspecialtyed for getting a personal loan.

Takeaways from the Article

Are you ready to apply for a Personal loan in Utkarsh Small Finance Bank? Then it is essential to know about the period and documentation before applying for any loan. We hope this article enables you to understand more about Personal loans offered by the Utkarsh Small Finance Bank, their eligibility, documents needed, etc.

It has different reimbursements choices and an impressive interest rate, which is an encouraging factor to apply for a personal loan.

EPF Balance

How to Get Information About EPF Balance, Annual Statement, SMS, E-Passbook?

Leave a Comment / EPF / By / November 13, 2023

How to Get Information about EPF Balance, Annual Statement, SMS, E-Passbook: EPF, which stands for Employee Provident Fund, serves as a saving tool for the employees. The employer and employee contributions for savings can be obtained after switching jobs or retirement. Access to EPF annual statement helps employees to plan their expenses, check the status of PF balance, and ail a loan again their EPF balance. Being a member or an employee of the EPFO, one does not have to wait for others to share the EPF balance statement at the end of the year.

There are four ways to check Employee Provident Fund annual statement if UAN is registered and EPF is unexempted. These facilities involve UMANG App, SMS, EPFO Member, and Missed Call. However, if EPF is managed by any exempted establishment, then one has to follow a different method to check EPF annual statement.

What is EPF Balance?

Employee Provident Fund is a national scheme practised in India. The state as well as national government activists for all employees to pay their EPF. It occurs at the onset of employment where the employee and employer gave a certain amount. Some amount of money is saved at the employee EPF to provide for retirement.

Employee Provident Fund Organization (EPFO) pools together all the funds to help to maintain the accounts of the employee. These funds support the family members even after the employee is dead. From the 12% of the salary, family members can get insurance, medical services, and housing services. The salary PF deduction gets split where 8.33% of employees’ share goes to Employees Pension Scheme. EPS offers pensions for nominees, widow pension, or pension on disablement. The remaining 3.67% goes to the Employees Deposit Linked Insurance Scheme. It provides life insurance cover to the EPF member. The records of the account remain active even if the employee moves to a different job. However, it leads to the loss of some funds. The introduction of the UAN number solved this problem.

What is the UAN Number Associated with EPF?

UAN, which stands for Universal Account Number, is a 12-digit number allotted to all EPFO employees to help track their PF balance. This number helps employers in knowing the contributions made. Employees can follow up on their previous accounts to know EPF balance. The PF is linked to this number where the employee offers the number to new employers for contribution. UAN is useful to make withdrawals for the PF accounts. Apart from it, employees can enjoy several benefits such as check their statements, balance, and contribution.

How to Check PF Annual Statement for Unexempted Establishments?

EPF Passbook: EPF UAN passbook is accessible at the EPF website run by the EPFO. Visit the site, go to Settings, then For Employees section, and then Member Passbook. Here one can enter their Universal Account Number and password. Select the Member ID and see details related to opening balance, EPS Pension contribution by the employer in the passbook. Apart from it, there are details related to transfers and withdrawals made to or from the EPF account.

Send SMS: By sending an SMS to 7738299899, one can get the details of EPF balance and latest contribution. It is possible only if Universal Account Number is registered with the Employees’ Provident Fund Organization. One should send SMS EPFOHO UAN ENG on the number mentioned. Here ENG refers to the first three characters of the language preferred. It is available in different languages such as Punjabi, Hindi, Gujarati, Tamil, Marathi, Bengali, Malayalam, and English (default).

So, if one wants to receive a message in Punjabi, then they can type EPFOHO UAN PUN. The SMS received involves the information about UAN, Name, Aadhaar, DOB, Bank details, PAN, EPF balance, and last contribution made.

UMANG App: UMANG, which stands for Unified Mobile Application, is an evolving platform to avail central, regional, or state government services. It involves PAN, Indane Gas, EPFO, GST, HP Gas, NPS, DigiLocker, Bharat Gas, and more. The citizens of India can work seamlessly with the government. The passbook accessible at this app is similar to that on the EPF site. To get started, one has to go through a one-time registration process using a registered phone number. The app is not only useful to view the EPF passbook, but also to raise a claim, and track a claim.

  • Download the UMANG app on Windows, Android, or iOS
  • Select EPFO and there will be three types of services namely- General Services, Employee Centric, and Employer Centric Services
  • By selecting Employee Centric Services, one can see view passbook, raise or track claim
  • Click on the View Passbook to see EPF annual statement

Missed Call: Give a missed call on 011-22901406 from the mobile number registered on the UAN portal. One will receive an SMS that gives name, Universal account number, DOB, bank details, Aadhaar, PF balance statement, and the last contribution made.

How to Download the EPF e-passbook Online?

The EPFO does not provide any hard copy of the PF statement. EPF contributors can download their e-passbook or statement multiple times in a month. By using the e-passbook facility available on the EPFO website, one can download EPF annual statement. It is essential to first register with EPFO and enter information:

  • Name
  • Date of Birth
  • Mobile Number
  • Email ID

Any of the KYC documents among Voter ID Card, PAN Card, Driving License, Passport, or other, and the number appearing on it

After registering, active EPF funders can view plus download their PF balance statements. However, PF statements e-passbooks are not available for Private Trusts or exempted companies. It cannot be availed for settled or inoperative EPF accounts or a negative balance. To generate an e-passbook, one has to follow steps as mentioned below:

  • Login to the EPFO website and register by giving above mentioned details
  • Click on the label ‘Get PIN’
  • Enter the PIN sent via message to the mentioned mobile number
  • Click on the option ‘Download e-passbook’
  • Select PF office state from the list mentioned
  • Enter the company PF code
  • Give PF account number and name mentioned in office records
  • Click on the Get PIN tab and update the PIN sent
  • After three working days, one can get their e-passbook online

How to Check the PF Balance of Exempted Companies?

There are more than Private Trusts in the country. Many large companies such as Wipro, Infosys, Sail, Nestle, TCS, Accenture, HDFC, and more, which have their own PF Trusts. Such private companies are discharged to contribute their EPF corpus with EPFO. These companies manage money with their trusts and have to give the same or higher return compared to EPFO managed funds. An employee of such exempted establishment cannot use the same methods of PF balance check as for an unexempted establishment. Some of the ways to check PF balance of exempted company:

Check out Salary Slip: 

Most professional establishments give salary slips to their staff through internal mails. In these slips, one can find other enrolments apart from the details of salary. Along with it, some companies also issue the PF statement. Employees can find their EPF annual statement and monthly aids in that slip.

Log in to Company Site: 

Many big companies maintain an employee portal in which one can find the EPF section. By going through the PF account details, one can see the EPF balance. TCS and Wipro are some companies that offer an online facility to check PF balance statements.

Consult HR Department: 

In case, if one is not able to find EPF statement by the above-mentioned methods, then they can consult a senior in their office. Anyone, generally a professional HR department who deals with the EPF, can provide all the details.

Final Thoughts on EPF Balance, Account Statement

One can download PF annual statements for unexempted establishments by visiting the UMANG website, sending an SMS, e-passbook, or giving a missed call. For exempted companies, getting a PF statement is quite complicated and can be achieved by direct login on the company website or contact the HR department.

ITR_4

INCOME TAX RETURN-4 (ITR-4) | Structure, Process and Changes in ITR 4

Leave a Comment / Income Tax / By / November 13, 2023

ITR 4: What is ITR 4? ITR 4 is basically a form for Income Tax Return and is made for the taxpayers who have selected for the tentative scheme of income as per the Income Tax Act’s Section 44AD, Section 44ADA and Section 44AE. However, if the business’s annual turnover exceeds Rs.2Crore, then also the taxpayer has to file ITR – 3.

Who Should File ITR 4?

ITR – 4 forms must be filed by any partnership/individual/HUF firm whose total salary or turnover for Assessment Year 2019 – 20 comprises:

  • Income through an individual professional that is calculated u/s 44ADA.
  • Income from individual business u/s 44AE or 44AD.
  • Salary/Pension up to Rs.50Lakh.
  • Income through a single individual house property that is worth up to Rs.50Lakh (this excludes the loss that is carried forwarded or brought forward loss in this head).
  • Income through any other sources that are up to Rs.50Lakh (this excludes winning from horse race and from the lottery).

Who Should Not File ITR 4 for The Assessment Year?

Anyone whose source of income is salary, house property, or some other source and if the annual income of an individual is more than Rs.50Lakhs is not eligible to use this form.

Any individual who is either a director in a company or invested in unlisted equity shares is also not eligible to use the ITR 4 form.

Structure of ITR 4 Form

The basic structure of the ITR 4 form can be divided into four parts:

Part A: General Information about the form.

Part B: Gross total income calculation through the five income heads

Part C: Gross total taxable Deduction and Income.

Part D: Tax computation and status.

  • Schedule BP: Details of income from an individual Business (For Assessment Year 2018 – 19, this form is modified to include details of GST along with detailed information of finances which is furnished in Schedule BP)
  • Schedule 80G: Donations’ details that are entitled to deduction as per 80G
  • Schedule IT: Payment’s statement of tax on advance tax and self-assessment.
  • Schedule – TCS: Statement’s tax collected at the source.
  • Schedule TDS1: Tax deducted statement at the source over the income that is other than salary.
  • Schedule TDS2: Tax deducted statement at the source over the income that is other than salary.

The Process to File ITR 4

One can submit his/her ITR 4 form either online or offline:

Offline Mode:

One can file the ITR 4 form offline only in the below-mentioned cases:

  • If any individual is of 80 years or more.
  • The individual’s income is not more than Rs.5 Lakhs, and those who do not need to claim the refund in ITR.
  • The following is the process of filing Income Tax Return offline:
  • By furnishing Income Tax Return in the form of physical paper.
  • By furnishing the bar-coded return.

The income tax department issues an acknowledgment during the submission of the physical paper return.

Electronically / Online:

  • This can be done by furnishing the Income Tax Return electronically under the digital signature.
  • By electronically transmitting the data and after that submitting the return’s verification in the Return Form, i.e. ITR – V.

If one submits his/her ITR 4 form electronically with a digital signature, then an acknowledgement is sent to that person on his/her registered email id. One can also select to download this form manually from the website of the Income Tax Department. Then he/she is needed to sign this form and send it to the Department of Income Tax’s CPC Office that is situated in Bangalore within three months (approximately 120 days) of e-filing.

Note: ITR 4 is one of those forms that are annexure-less, which means; one does not have to attach any document while sending it.

Major Changes Made in ITR 4 for AY 2020-21

  1. Individual taxpayers need to meet the criteria of (a)incurring expense above Rs 2 lakh on foreign travel or (b) making cash deposits above Rs 1 crore with a bank, or (c) if the total expenditure is above Rs 1 lakh on electricity, then the individual should also file for ITR-1. The taxpayer should specify the amount of the expenditure or deposit.
  2. Under Part A, the ‘Govt’ checkbox stands changed to ‘State Govt’ and ‘Central Govt’, and a checkbox for ‘Not applicable’ (e.g. family pension etc.) has been introduced under the section of ‘Nature of employment.
  3. Return filed under section has been separate between normal filed and filing in response to notices.
  4. The ‘Schedule VI-A’ for tax deductions is revised to include reduction under section 80EEA and also section 80EEB. A drop down is given to enter a description of donations under section 80G
  5. In ‘Schedule BP’, gross receipts or gross turnover to include revenues from authorizing electronic modes received before the mentioned specified date.
  6. The details of tax deduction claims for payments or expenditure or investments made between 1 April 2020 until 30 June 2020.

Major Changes Made in ITR 4 for AY 2019-20

  1. ITR 4 form for the year 2018-19 does not apply to a person who is either a director of a company or has already invested in unlisted equity shares.
  2. Under Part A, the ‘Pensioners’ checkbox has been introduced under the section of ‘Nature of employment’.
  3. Return filed under section has been separated between normal filing and already filed in response to official notices.
  4. Deductions under salary will be separated into standard deduction, professional tax and entertainment allowance.
  5. 80G Deduction: The amount of Donation is bifurcated into cash and other modes.
  6. Separate Business details like Business code, name of business, description for section 44AD, 44AE and 44ADA.
  7. New fields under section 44AE have been introduced like Registration No. of goods carriage, whether hired/owned/leased, Capacity of goods carriage in Tonnage (in MT), No. of months for which goods carriage was hired/owned/leased by assessee etc.
  8. Under GST details, the turnover rate text has been replaced by “Annual value of outward or exported supplies as per the GST returns filed”.
  9. ‘Deemed to be let out property’ option is made available now under ‘Income from house property.
  10. The taxpayers will be required to provide income-wise detailed information and description under the ‘Income from other sources.
  11. For deduction u/s 57(iia), a separate column is introduced under ‘Income from other sources – in case of family income through a pension.
  12. Section 80TTB column is now included for senior citizens.

Presumptive Taxation Under Section 44AD

What is Section 44AD of the Income Tax Act?

To provide relief and reduce the tax burden to the taxpayers from tax compliances, the government of India incorporated and introduced a simplified scheme. The scheme of tentative taxation under section 44AD of the Income Tax Act of India. Businesses are not required to maintain regular books of accounts anymore if they are adopting the presumptive taxation scheme.

A presumptive income scheme allows the assessee at a prescribed rate under the income tax act to declare their income. Section 44AD is one of the newly introduced sections of such a scheme. This saves a lot of compliance-related costs and time.

The pertinence of section 44AD of the Income Tax Act

There are special allocations accommodated in section 44AD of the income tax act, which applies to the individual. Below are the types of an individual who can choose for the provisions of the given scheme:

Partnership firms(excluding limited liability partnership),

Individual resident taxpayers,

Hindu Undivided Family,

To benefit from the provisions of the scheme, the individual should not have claimed deduction under chapter VI-A which states “deductions in respect of certain incomes” or section 10AA. It applies to businesses whose gross receipts or total turnover in the previous year is less than Rs. 2 crore.

A few assessees who cannot opt the section 44AD scheme

An individual assessee or a firm who is involved in providing professional services and earning the income, which is in the nature of commission or brokerage, cannot adopt the presumptive income scheme. However, a separate has been introduced for such professionals, which is section 44ADA that allows them to opt for this presumptive scheme.

A person who is having any business of agency or an individual assessee who is claiming deduction under chapter VI A under part C or section 10AA – deductions in respect of a certain amount of income.

Features Provided by section 44AD of Income Tax Act

Section 44AD bestows an option to the individual assessee to choose between opting for the presumptive scheme or the normal provisions. Mentioned below are few key features of the presumptive income scheme of Section 44AD:

As per the scheme provisions, a sum equal to 8% of the gross receipts or total turnover of the assessee or a percentage higher than 8% shall be considered to be the profits of such business.

In order to encourage businesses to accept digital payments and to promote digital transactions, the rate of 8% has been revised and been brought down to 6%. Thus, in effect, individual accepting digital payments can consider their deemed 6% of total income. This would be only applicable in a case where the amount of such gross receipts or turnover is received by:

Account Payee Bank Draft or Cheque

  1. IMPS
  2. UPI
  3. Credit Card
  4. Debit Card
  5. Net Banking
  6. NEFT
  7. RTGS

However, the individual assessee has the option to declare an amount higher than the presumptive income so calculated, or in his return of income, claimed to have been actually earned by the individual.

The eligible assessee, to the extent of the whole amount on or before 15th March, needs to pay the advance tax.

The assessee will get exemption from maintaining books of accounts by opting for the scheme.

In a case where an assessee declares profits in accordance with the scheme by opting for the presumptive scheme and does not declare the profits for any five consecutive assessment years, not in accordance with the scheme, in accordance with the scheme, the individual shall not be eligible to claim any benefit of the provisions for further five assessment years starting from the year in which profits were not declared.

Allowances and Deductions of Section 44AD Presumptive Income

Any deductions shall be deemed to have already been provided if permitted under the provisions of sections 30 to 38. In such a case, the taxpayer cannot claim any further deduction.

A deduction on account of salary paid and interest to the partners can not be claimed under the provisions of section 44AD as it does not allow the firm.

As per sections 40, 40A, and 43B, there shall be no disallowances.

Applicability of Advance Tax in Section 44AD

In straightforward terms, income tax should be paid in advance instead of the year-end is what advance tax means. It has to be made in installments as per the due dates provided in the income tax act and falls in the category of ‘pay as you earn’.

An individual assessee opting for the scheme of presumptive tax, to the extent of the whole amount before or on 15th March of the financial year, must pay the advance tax.

The Pertinence of Written Down Value for Presumptive Income Section 44AD

An eligible business shall be deemed by the written down value of any asset to have been calculated as if the individual assessee had been already claimed and, in respect of depreciation for each of the relevant assessment years, allows the deduction.

The Pertinence of Section 44ADA for Professionals

In case the individual assessee is carrying on any business, the provisions of section 44AD are only applicable. The provisions of section 44ADA will actually come into force in a case where the assessee is carrying on a profession.

Section 44ADA is also another presumptive tax scheme that was introduced from the financial year 2016-17. For small professionals, it provides a simple method of taxation.

The scheme is applicable to the following individuals:

Individual who engages in any profession referred to in section 44AA(1). Professions such as engineering, the architectural, legal, and medical profession. Additionally, the technical consultancy or profession of accountancy or interior decoration or any other profession is notified by the Official Gazette Board.

Individuals who do not exceed 50 lakhs of gross receipts or turnover in the previous year.

In the case of such individuals, the presumptive income would be a sum is a higher amount or equal to 50% of the total gross receipts as may be provided for by the assessee under section 44ADA. Any further deductions which are allowed under section 30 to 38 shall be deemed to have already been provided for them.

Like section 44AD, the individual must pay the advance tax if opting for section 44ADA. The assessee must make the payment by 15th March of that financial year. Under section 44AA(1), the taxpayer is getting exemption from the maintenance of books of accounts in respect of such income.

An individual may claim that his gains and profits from the above profession are lower than the gains and profits deemed to be his income under section 44ADA. If such total income of the individual exceeds the basic exemption limit, then under section 44AA, the individual has to maintain books of account. The books of accounts of the individual must also undergo an audit. Additionally, the individual needs to furnish a report of such audit.

Which Individual can file a return under section 44AD?

Under section 44AD, the following assessee’s can file a return:

  • A resident partnership, HUF, and an individual firm (excluding LLP). The individual assessee must engage in eligible businesses. Under section chapter VIA or 10A/10AA/10B/10BA – deductions in respect of certain income(80IA to 80RRB), he must not claim any deduction.
  • The firm or individual’s gross receipts or profit in the previous year does not exceed a gross amount of Rs. 2 crores.
  • Other than a business of leasing goods carriage, plying, or hiring, will be imposed on individuals or firms engaged in any business.
  • Further, the individual assessee must declare a minimum of 6% or 8% of the gross receipts or total turnover.

What Is The Turnover Under Section 44AD of the Income Tax Act?

For the purpose of section 44AD, gross receipts or total turnover is the amount that is receivable or received from the client in respect of the sales made in the foregoing year. An option to the individual assessee to choose either the mercantile or cash method of accounting is provided under Section 145 of the income tax.

Gross receipts shall not consider or include the value of material supplied by the client or business.

Below are some receipts that do not form part of the gross receipts:

  • Retention money
  • Value of inventory
  • Interest income
  • Sale of property, plant, and equipment
  • Advances received from customers

Under Presumptive Income, Is The Maintenance Of Books Of Account Mandatory?

The assessee can claim relaxation in the maintenance of books of accounts if the assessee is opting for the presumptive income scheme.

Compulsorily maintain his accounts books if a person declares his income below 6%/8% of gross receipts or total turnover, total taxable income is above the exemption limit.

Presumptive Taxation Under Section 44AE

Who can opt for the tentative taxation scheme of Section 44AE:

The provisions of section 44AE are pertinent to every person (i.e., an individual, company, HUF, firm, etc). A person who is engaged in the hiring or leasing of goods carriages, the business of plying and who at any time does not own more than ten goods vehicles during the year can adopt the presumptive scheme of section 44AE for taxation.

Business/Persons Not Covered Under This Section 44AE

A person who is engaged in the hiring or leasing of goods carriages, the business of plying and who at any time does own more than ten goods vehicles during the year can not adopt the presumptive scheme of section 44AE for taxation.

Under The Presumptive Taxation, Computation Of Taxable Business Income Scheme Of Section 44AE

For an individual who is willing to opt for the presumptive taxation scheme of section 44AE, the individual’s income will be computed on an estimated basis.

For Heavy Goods Vehicle, at the rate of Rs. 1,000 per ton of gross or total vehicle weight, income will be computed for part of a month or every month during which the heavy goods vehicle is owned by an individual taxpayer.

In the case of vehicles other than the heavy goods vehicle, at the rate of Rs. 7,300 per ton of gross or total vehicle weight, income will be computed for part of a month or every month during which the heavy goods vehicle is owned by an individual taxpayer. In this case, part of the month would be considered as a full month.

Payment Of Advance Tax Under Section 44AE

In the case of an individual who adopts the tentative taxation scheme of section 44AE, there is no adjustment as regards payment of advance tax, and, hence, the individual will be liable to pay advance tax even if the person adopts the presumptive taxation scheme of section 44AE.

Presumptive Taxation Under Section 44ADA

Who can opt for the tentative taxation scheme of Section 44ADA

To give reassurance to small taxpayers engaged in specified professions, the presumptive taxation scheme of section 44ADA is designed.

A person or individual resident in India engaged in the following professions can take advantage of the presumptive taxation scheme of section 44ADA

  1. Accountancy
  2. Technical consultancy
  3. Legal
  4. Medical
  5. Engineering or architectural
  6. Any other profession as notified by CBDT
  7. Business/Persons not covered under this section 44ADA
  8. Interior decoration

Certain professionals or individuals whose total gross receipts or income from profession surpass Rs. 50,00,000 in a financial year of India are considered to be not eligible to choose this section.

Vijaya Bank Personal Loan @ 10.50% to 12.50%. | Features, Repayment, Eligibility Criteria, Process to Apply

Leave a Comment / Loan / By / November 13, 2023

Vijaya Bank Personal Loan: Personal loans are used to fulfill humans’ uncertain or leisure activities like vacation, education, house medical emergencies, etc. The bank covers these kinds of activities with flexible interest rates. These loans require no less security to borrow money and use for basic needs.

Unlike the other loans that one can take in from banks, personal loans mostly require no to less clearance protocol. In addition, you can also access personal Loan online and offline services from different banking institutions. During this challenging time, Vijaya Bank covid-19 personal loan can be a solution.

Let us look at the loans granted by Vijaya Bank and Vijaya Bank loan status so that it is easy for you to say whether it’s applicable for you, and then you can proceed with getting the Loan with the application.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

Vijaya Bank

Vijaya Bank Overview

Vijaya Bank is one of the most highly rated public sector banks with its office and prominent building in Bangalore, Karnataka, India. Vijaya Bank has 2031 branches throughout the country with more than 4000 customer points and 2001 ATMs.

Having personal loans from the validated Vijaya Bank is quite safe, since the personal loans of the Vijaya Bank are lawfully provided, which is essential for all persons, availing all sorts of investments.

Vijaya Bank Features

  • Availability of a Longer tenure: If you have an account with the bank and then have your salary details, take expenses and negotiate with you want terms of the Loan.
  • Negotiation with the bank: The interest can be divided over many months if you have an extended loan period, making it likely for you to pay more, over the extended period.
  • Allowance to make a prepayment: To reduce the EMI cost, and the most effective way is to make a payment until you can afford it. Repaying the loan early action point of the tenure gives you a good credit score and saves interest on coming payments.

How to Apply for a Personal Loan in the Vijaya Bank?

There are two main or exact ways using which we can apply for a loan that can lead to approval with the correct documents and eligibility criteria.

  • Apply online- you can open the bank website, start filling up the personal information they are asking for and then ask for the loan type you want. After doing this, upload necessary documents, check the eligibility criteria and apply for the Loan.
  • Apply offline- for offline method features, and you can go to the bank of any branch near your house and then ask about the documents and other things they will be taking. Then, submit all the required documents and fill the form with the correct signature to start the process

Vijaya Bank Personal Loan Eligibility Criteria

There are specific standards needed to fulfill before the personal loan for a person can be approved.

  • The age limit to get a loan is 21 years to a maximum of 65 years.
  • They should be an Indian citizen.
  • Any salaried or self-employed individual must be employed and eligible to repay the Loan.
  • Should be employed for at least two years or on a business for two years and currently one-year job continuation.
  • The income criteria can vary according to cities and branches of the bank but are around 4000 to 20000.
  • The loan amount can start from 2 lacs and go to 70 lacs based on the individual’s repayment capacity.
  • Tenure six to sixty months.
  • It can be a preferred customer or a credit score of 750.

Note: Even if you are aware of the criteria you need to meet, it is advisable for applicants to go beyond this step and check the loan amount that they can get from Vijaya Bank. The bank authenticates the amount of loan using the eligibility calculator, which calculates EMI first.

Vijaya Bank Personal Loan Documents Required

  • A correctly filled up and signed personal loan application
  • Three coloured passport size photographs.
  • Updated passbook of the last three months and the bank account statement.
  • Identity proof Aadhar Card, passport, driving licence etc.
  • Address proof with the bank statement, electricity bill, credit card statement on mobile bill latest.
  • Income proof for non-salaried or self-employed individuals is the income tax returns of the last two financial years.
  • Income proof for salaried individuals is the latest salary slip and recent certificates and deductions.

Vijaya Bank Personal Loan Features

  • The interest rate for the personal Loan that a candidate is the same can vary from 10.50% to 12.50%.
  • Prepayment and loan processing is a faster process than any other place.
  • The loan amount can be 18 times the last drawn salary concerning the loan eligibility criteria.
  • The candidate’s location determines the salary amount and the loan amount that you are eligible for. It can be higher in metropolitan cities or fluctuate based on the type of city in the loan amount.
  • If a person has some fixed assets or stays at housing, you can repay the loan, and also, the employment of the company can make the process smoother.
  • The credit history is essential as eligibility and the loan repayment depend on the Loan.

There are many other loans that the bank provides, like a car loan, housing loan, and health insurance loan, and these things can be inquired through the bank’s official website or by going into any of the nearest branches in your locality.

Types of Personal Offered by Vijaya Bank

The types of Personal Loan as offered by the Vijaya Bank are:

  • Marriage Loan
  • Loan for Government Employees
  • Doctor Loan
  • Loan for Pensioners

About the Repayment of Vijaya Bank

Once the loan is approved, there are ways by which you have to repay the loan. There are three distinct ways to repay the Loan and Vijaya Bank.

  • SI or Standing Instruction- the money automatically gets from the bank account at the end of the month. The only eligibility is that you have to get an existing account holder of Vijaya bank and get your salary in that account.
  • PDCs or Post-Dated Cheques- this doesn’t require a person to have an account at the Vijaya bank. Any person can submit a post-dated EMIs cheque and present it at the nearest branch. This gets offered at non-ECs locations and has to be submitted only.
  • ECS or Electronic Cleaning Services: ECS is for people who don’t have an account in the Vijaya Bank. On approval, the amount will be automatically debited at the month-end.

Takeaways from the Article

The Bangalore-headquartered bank is a desirable bank for an individual to avail of a personal loan. It offers a variety of purposes such as marriage, education, medical crisis, and others.

You must be aware of the various aspects such as loan repayment options, loan eligibility, the documents needed, etc., which the article has readily fulfilled.

Nature of Contract – CA Foundation Law Study Material

Leave a Comment / CA Foundation / By / November 13, 2023

This Nature of Contract – CA Foundation Law Study Material is designed strictly as per the latest syllabus and exam pattern.

Nature of Contract – CA Foundation Business Law Study Material

Question 1.
All contracts are agreements but all agreements are not contracts. Comment.
Answer:
As per section 2(h) of the Indian Contract Act, 1872, an agreement enforceable by law is a contract. Thus an agreement backed by enforceability by law i.e. the intention to create legal relations is regarded as a contract. An agreement is a prerequisite for the creation of a contract.

Every promise & every set of promises forming consideration for each other is an agreement. Thus when an offer made by a person is accepted by another, an agreement is said to be created. However, an agreement is a wider term in comparison to contracting. It includes even those agreements which are not enforceable since they were not created with an intention of forming legal relations, such as domestic, political or social agreements.

Thus agreement is the genus of which contract is the species & only those agreements grow into contracts that create legal relations.

Nature of Contract – CA Foundation Law Study Material

Question 2.
Explain briefly the essentials of a valid contract.
Answer:
Section 10 provides “all agreements are contracts if they are made by the free consent of parties competent to contract for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void”.

Offer and acceptance:
There must be a “lawful offer” and a “lawful acceptance” of the offer, thus resulting in an agreement.

Intention to create legal relations:
There must be an intention among the parties that the agreements should be attended by legal consequences and create legal obligations. Agreements of a social or domestic nature do not contemplate a contract.

Lawful consideration:
Consideration means “something in return”. An agreement is enforceable when each of the parties to it gives something and gets something in return. The payment of money is a common form of consideration. But it may also consist of an act, forbearance, and a promise to do or not to do something. Consideration must be real, valuable and lawful.

The capacity of parties:
The parties to an agreement must be competent to contract; otherwise, it cannot be enforced by a court of law. Every person who is competent to contract who is (a) of the age of majority, (b) of sound mind and (c) is not disqualified from contracting by any law.

Free consent:
The consent of the parties must be free ie. the parties should enter into a contract voluntarily and of free will. Section 14 lays down that consent is not free if it is caused by (a) coercion, (b) undue influence, (c) fraud, (d) misrepresentation or (e) mistake.

Lawful object:
The object of the agreement should be lawful. It should be authorised or sanctioned by law. The object of an agreement is unlawful if it is forbidden by law or is fraudulent or is immoral or opposed to public policy.

Agreement not expressly declared void:
The Indian Contract Act, 1872, has expressly declared certain agreements to be not enforceable at law, e.g. agreements in restraint of marriage, agreements in restraint of trade, wagering agreements etc. The parties to the agreement should ensure that their agreement does not fall in the category of these void agreements.

Certainty:
The terms of the contract should be certain and definite and not vague. Section 29 says “Agreements, the meaning of which is not certain or capable of being made certain are void.”

Possibility of performance:
Yet another essential feature of a valid contract is that it must be capable of performing. Section 56 lays down that “An agreement to do an act impossible in itself is void.” If the act is impossible in itself, physically or legally, the agreement cannot be enforced at law.

Writing and registration:
According to the Indian Contract Act, a contract may be oral or in writing. An oral contract is as much enforceable as a written contract. However, if there is a provision in any law prescribing that contracts should be in writing/ registered then, this formality of writing and registration should be followed.

Nature of Contract – CA Foundation Law Study Material

Question 3.
“The law of contracts is not the whole law of agreements nor is it the whole law of obligations.” – Comment.
Answer:
Obligations may arise from different sources. The law of contract deals only with such legal obligations which arise from agreements. Obligations that are not contractual in nature are outside the purview of the law of contract. For example, the obligation to observe traffic rules does not fall within the scope of the Contract Act.

The other sources of obligations are obligations under the trust law or the law of tort or the fundamental duties under the Constitution etc. They are outside the purview of the Contract law since they are not voluntarily created through an agreement. Salmond has rightly observed: “The law of contracts is not the whole law of agreements, nor is the whole law of obligation. It is the law of those agreements which create obligations and those obligations, which have their source in agreements”.

Question 4.
Differentiate between:
(a) Void agreements & Void Contracts
(b) Voidable & Void Contracts
(c) Void Agreements & Illegal Agreements
Answer:
(a)

Void Agreement Void contracts
An agreement not enforceable by law is said to be void. A contract that ceases to be enforceable by law becomes void when it ceases to be enforceable.
It is void right from the beginning i.e., ab initio since one or more of the essentials of a valid contract are missing. it becomes void subsequently. On account of change is law, change in circumstances or on an account of the subsequent impossibility of performance.
No restitution of benefits is allowed. Restitution may be granted when the contract is discovered to be void or becomes void.

(b)

Void contracts Voidable contracts
A contract that ceases to be enforceable by law becomes void when it ceases to be enforceable. A contract which is enforceable by law at the option of one or inure of the Parties hereto, but not at the option of the other or others. Thus it is enforceable at the option of the aggrieved part’.
It ¡s valid at the time of Formation & remains valid till an event takes place which results in the contract ceasing to be enforceable. It may be voidable right from the beginning or voidable subsequently. It remains valid if the aggrieved par1 does not elect to avoid it within a reasonable time.
A contract becomes void due to change in circumstances, change in law or subsequent impossibility of performance etc. A contract is avoidable right from the beginning if consent is caused by coercion, undue influence, fraud or misrepresentation. A contract becomes voidable subsequently on account of breach of contract or failure to perform the contract at the time fixed if the time is of the essence of the contract.
Compensation is not payable. The aggrieved party can claim damages for loss sustained by him if any.

(c)
Difference between Void & Illegal agreements:
a. Scope: An illegal agreement is narrower in scope than a void agreement. All illegal agreements are void but all void agreements are not necessarily illegal. For E.g. an agreement with a minor is void, but not illegal.

b. Collateral Transactions: When an agreement is illegal, other agreements which are incidental or collateral to it are also tainted with illegality, hence void. However, agreements collateral to avoid agreement are not necessarily void.

c. Restitution: In the case of an illegal agreement, no right/remedy is available to either party. Hence money paid under an illegal agreement cannot be recovered. Under sec. 65 if an agreement is discovered to be void any person who has received advantage/benefit must restore it or make compensation for it.

d. Punishment: In case of an illegal agreement the parties may be punished under the criminal law, in case of a void agreement (which is not illegal) there is no such punishment.

Question 5.
Write Short Notes on:
(a) Unenforceable Contracts
(b) Quasi Contracts
(c) Unilateral Contracts
Answer:
(a) Unenforceable contract. An unenforceable contract is one, which suffers from some technical defect. It is valid in itself but is not capable of being enforced in a court of law because of non-observance of some technical formalities such as insufficiency of the stamp, want of registration, attestation etc. In some cases such contracts can be enforced if their technical defects are removed, for example, the defect of under stamping can be removed by affixing the right value of stamps.

(b) Quasi-Contract. Quasi-contract is a contract in which there is no intention on the part of either party to make a contract but the law imposes a contract upon parties. These are not actual contracts but they resemble a contract that is created by law under certain circumstances. Here, the law creates legal rights and obligations when there is no real contract. For example; obligation of Under of lost goods to return them or liability of person whom money is paid by mistake to repay it back.

(c) In the case of a unilateral contract, only one party has to perform his obligation and the other party has performed his obligation at the time of formation of the contract or before. If A buys a railway ticket for his journey from Nagpur to Bombay. A has performed his duty under the contract by paying the fare but the railways are yet to perform their promise i.e. of carrying him from Nagpur to Bombay. Such contracts are also called contracts with executed consideration or one-sided contracts.

Question 6.
Lekhpal promises today ? 5 lakhs to his son if the son passes the CA exams. On passing the exams, the son claims the money. Can the son file a suit against the father?
Answer:
No. Because it is a domestic agreement [no intention to create legal relations]

Question 7.
X, a coolie in uniform carried Y’s luggage from the railway platform to taxi without being asked by Y to do so. Y does not make any attempt to stop X from carrying the luggage. Is Y bound to make payment to X?
Answer:
Yes [implied contract: implied offer & implied acceptance (silence as a manifestation of acceptance)]

Nature of Contract – CA Foundation Law Study Material

Question 8.
Arun has two cars – one of white colour and another of red colour. He offers to sell one of the cars to Basu thinking that he is selling the car which has white in colour. Basu agrees to buy the car thinking that Arun is selling the car which has red in colour. Will this agreement becomes a valid contract?
Answer:
No. [Hint – since consensus idem is missing]

Question 9.
Point out with reason whether the following agreements are valid or void:

  1. Riya promised Samarth to lend Rs. 500,000 in lieu of consideration that Samarth gets Riya’s marriage dissolved and he himself marries her.
  2. Aryan agrees with Mathew to sell his black horse. Unknown to both the parties, the horse was dead at the time of agreement.
  3. Ravi sells the goodwill of his shop to Shyam for Rs. 4,00,000 and promises not to carry on such business forever and anywhere in India.
  4. In an agreement between Prakash and Girish, there is a condition that they will not institute legal proceedings against each other without consent.

Answer:
1. Void Agreement – As per Section 23 of the Indian Contract Act, 1872, an agreement is void if the object or consideration is against public policy. The agreement in the given case is of the nature which interferes with marital rights & duties of a person and is therefore opposed to public policy, illegal and void ab initio.

2. Void Agreement – As per Section 20 of the Indian Contract Act, 1872, an agreement made on the grounds of a Bilateral Mistake of fact is regarded as void. The mistake of fact is with respect to the existence of subject matter at the time of formation of the contract.

3. Void Agreement – As per Section 27 of the Indian Contract Act, 1872, an agreement that is in restraint of trade is treated as void. However, a buyer of goodwill can exceptionally impose certain restrictions on the seller of goodwill, not to carry on the same business provided such restrictions are reasonable regarding the duration & place of business. The restrictions imposed in the given case are unreasonable and therefore the agreement is in restraint of trade & void.

4. Void Agreement – As per Section 28 of the Indian Contract Act, 1872, an agreement that is in restraint of legal proceedings is void. The agreement in the given case imposes an absolute restriction on the rights of the parties to institute legal proceedings & is therefore regarded as void.

Nature of Contract – CA Foundation Law Study Material

Question 10.
Mr W boards a bus at a bus stop. He travels for some distance and on arrival at his destination, he makes a move to get off the bus. The conductor stops him and asks for the fare. He denies his duty to pay to say they did not form any contract comment.
Answer:
Hint: Implied contract – a contract that can be understood from the conduct of the parties – Mr W is bound to pay the fare for availing the transportation services.

Question 11.
State whether a contract is created in the following cases:-

  1. Mr. R promises to supply 4 teakwood chairs to Mr. S for a price which shall be fixed by Mr. F.
  2. Mr. P promises to pay Rs. 10 Lacs to Mr. T, if he brings back to life Mr. P’s dead wife.
  3. A mother promises to give Rs. 500 to her son, if he accompanies her for shopping.
  4. Mr. P promises to pay Rs. 10 Crores to Mr. N if he resigns from his party and joins Mr. P’s political party.

Answer:
Hint:

  1. A valid contract is created – the terms of the contract should be certain or capable of being made certain.
  2. No contract is created – the impossibility of performance – void ab initio.
  3. No contract is created – domestic agreements are mere agreements and not contracts.
  4. No contract is created – political agreements are mere agreements and not enforceable.
Depreciation As Per Companies Act

Depreciation As Per Companies Act | Depreciation Rates and Provisions As Per Companies Act 2013

Leave a Comment / Saving Schemes / By / November 13, 2023

Depreciation As Per Companies Act: Depreciation, as per the companies acts 2013, is “ Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or another amount substituted for cost, less its residual value”.

Depreciation is calculated for two reasons:

  • Accounting- It covers two sides, firstly, decrease in the value of assets and allocation of the cost of help to the useful life of assets.
  • Taxation-It refers to the reduction in net taxable income to reduce the amount of tax payable.

Methods to Calculate Depreciation as Per Companies Act, 2013

Straight Line Method

Straight-line depreciation is a method for calculating the value of depreciation of a fixed asset over a period of time. In this method, a constant rate of depreciation is taken for a particular asset. Depreciation is calculated for a specific asset for a year and then the same amount is deducted every year.

Written Down Value Method

Written down value depreciation is a method in which a constant rate of depreciation is applied to the net book value of assets each year, therefore more depreciation expenses in the early years of the life of the asset and less depreciation in the later years of the life of the asset.

Schedule II Of The Companies Act 2013

Depreciation as per companies acts 2013 requires an asset to be depreciated over its useful life whereas the old Schedule XIV of the companies act 1956 which requires minimum rates of depreciation to be provided by a company. According to Section 123 of the companies act 2013, depreciation will be calculated as per Schedule II and for the assets which have been bought into force from 1 April 2014.

The useful life of an asset is the period for which an asset is expected to be available to be used by an entity. Over here, depreciation holds the word amortization.

The date of purchase is very important to calculate the remaining useful life of the asset as of 1.4.2014. Existing assets are depreciated over the remaining useful life as of 1.4.2014.

Transitional Effect of Schedule II

The important factor to be shown in the books of account is the effect of this transition on 1st April 2014. According to Note 7 to part C of Schedule II from the date given the carrying amount of the asset as of that date will be:
Depreciated over the remaining useful life of the asset. The residual value will be recognized in the opening balance of the retained earnings where the remaining useful life of an asset is nil.

There are two scenarios for the assets as of 1st April 2014,

Asset’s remaining useful life as per Schedule II is nil: In this case, the carrying amount has to be adjusted in the opening balance of the retained earnings in the balance sheet after keeping the residual value.

Asset’s remaining useful life is as per schedule II is not nil: In this case, we continue depreciating the balance as of 1 April 2014 over the remaining useful life after recalculating the amount of depreciation. So, in that case, no effect of restating the carrying amount will be required to be given.

Method of Calculation of Depreciation as per Companies Act 2013

Rate of Depreciation under Written down value method

R = ( 1- n * s/c)* 100

Where R = Rate of Depreciation(in %)

n = Useful life of the asset (in years)

s = Scrap value at the end of the useful life of the asset

c = Cost of the asset

The depreciation rates applicable to some of the assets, if the asset is purchased on or after 1st April 2014 and useful life is considered as given in companies act 2013 and residual value as 5% is given below in the table.

Depreciation Rate as Per Companies Act for Some Assets

Nature of assets Useful life Rate (SLM) Rate (WDV)
Buildings
Building (other than factory buildings) RCC frame structure 60 1.58% 4.87%
Building( other than factory buildings) other than RCC frame structure 30 3.17% 9.50%
Factory buildings 30 3.17% 9.50%
Fences, walls, tube wells 5 19.00% 45.07%
Other (including temporary structure) 3 31.67% 63.16%
Bridges, culverts, bunkers 30 3.17% 9.50%
Roads
Carpeted roads
Carpeted roads-RCC 10 9.50% 25.89%
Carpeted roads- other than RCC 5 19.00% 45.07%
Non-carpeted roads 3 31.67% 63.16%
Furniture and fittings
General Furniture and fittings 10 9.50% 25.89%
Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries, welfare centres, meeting halls, cinema halls and theatres and circuses and furniture and fittings let out on hire for use on the occasion of marriages and similar functions. 8 11.88% 31.23%
Motor Vehicles
Motorcycles, scooters and other mopeds 10 9.50% 25.89%
Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire 6 15.83% 39.30%
Motor buses, motor lorries, motor cars and motor taxies other than those used in a business of running them on 8 11.88% 31.23%
Motor tractors, harvesting combines and heavy vehicles 8 11.88% 31.23%
Electrically operated vehicles 8 11.88% 31.23%
Uttar Bihar Gramin Bank Personal Loan @ 11.25% | How To Apply?, Eligibility, Types, Features and Benefits

Uttar Bihar Gramin Bank Personal Loan @ 11.25% | How To Apply?, Eligibility, Types, Features and Benefits

Leave a Comment / Loan / By / November 13, 2023

Uttar Bihar Gramin Bank Personal Loan: For fulfilling all types of financial requirements like a holiday abroad, wedding, reimbursement of a prevailing loan, medical urgencies, and many more. Without distressing about holding any collateral or estate, which is possible with the help of the amazing Utkarsh Small Finance Bank personal loan rate of interest.

You can take the loan with the minor documents at a suitable rate of interest. Moreover, one can use the amount of the loan for various reasons, and put the Utkarsh Small Finance Bank loan calculator tool to use.

If you are willing to apply for a personal loan, it is important to know about the documents and the method in detail.

Thus, read further about the significant components in Personal loans by Utkarsh Small Finance Bank, including the method of Utkarsh Small Finance Bank loan apply online, and much more.

Uttar Bihar Gramin Bank

Uttar Bihar Gramin Bank Overview

Utkarsh Small Finance Bank gives banking assistance like gives accounts for checking, securities, cash market, undertaking, security, mortgages, and period loans, as well as remittances, and Internet banking assistance. It assists clients in India.

The motive of the bank is to give hope to clients for fulfilling their ambitions and desires.

It focuses on giving assistance that is process-oriented, technology-driven, and people-centered emerging in reasonable, extensible, and endurable organizations stimulating social-class modification.

Uttar Bihar Gramin Bank Features

  • It provides accessible banking assistance – loans, budgets, securities, and interests across India to fulfill your everyday requirements.
  • It gives personal loans to salaried clients, in private or civil section associations that meet the eligibility norms.
  • Reimbursement in EMI.
  • The bank gives its clients a choice to protect their savings in FD and receive good repays.
  • In this bank personal loan amount starts from Rs. 100,000 to 1,000,000 and rate of interest on personal loan 14to 28 percent per annum.
  • It gives several kinds of savings account choices to serve different clients’ necessities.

How to Apply for a Personal Loan in Utkarsh Small Finance Bank?

An individual can visit their closest Utkarsh Small Finance Bank’s sector or can also interact with them regarding the requirements at communications@utkarsh.bank.

Eligibility Criteria for a Personal Loan Application in Utkarsh Small Finance Bank

  • Age should be between twenty-one to fifty-eight years.
  • The person should be a permanent worker of State or Central Government or esteemed establishments.
  • Needs to have regular earnings whether the individual is salaried or self-employed.
  • Working experience at the recent job needs to be at least three years.
  • The net salary of the individual needs to be at least 25,000 per month.

Documents needed for a Personal Loan Application in Utkarsh Small Finance Bank

  • One needs to fill the form with appropriate information along with the applicant’s signature.
  • Proof of identity like Passport, Voter Id, etc is needed.
  • Adress evidence such as Voter ID, bill of telephone, etc is required.
  • Bank declaration of last six months.
  • Recent salary receipt with the latest Form 16
  • The recent form 16 with the salary receipt is needed.
  • Passport size images.

Reasons for Rejection of the Loan

  • The low credit value can be a reason for the rejection of a loan as credit value shows the credit trustworthiness of the person. Thus, decent credit value shows that the individual can pay back the loan without default while low credit value leads to the rejection of the loan application.
  • A higher value of the prevailing loan lessens the possibility of getting a new loan.

Features of the Personal Loan of Utkarsh Small Finance Bank

  • The loan amount is up to Rs. Ten lakhs.
  • Salaried persons are eligible.
  • A processing fee is up to two percent of the sanctioned amount.
  • One can utilize the amount of loan to fulfill different expenditures like those related to the renovation of the house, trips, weddings, and medical crises.
  • Reimbursement term: Applicants are allowed to pay back the amount of the loan in a duration that varies from 1 year to 4 years, as per the individual’s comfort.
  • The bank enables the person to pay the loan amount before the payable period both in portion and entire, which guarantees savings in extents of interest payoff. This is yet liable to distinct situations and indictments.
  • Numerous loan repayment choices
  • Quick and straightforward personal loan request processing
  • Quick loan authorization
  • Impressive and competitive interest rates
  • Offers outstanding strategies and rebates for workers of large corporations
  • Generally, no assuranspecialtyed for getting a personal loan.

Takeaways from the Article

Are you ready to apply for a Personal loan in Utkarsh Small Finance Bank? Then it is essential to know about the period and documentation before applying for any loan. We hope this article enables you to understand more about Personal loans offered by the Utkarsh Small Finance Bank, their eligibility, documents needed, etc.

It has different reimbursements choices and an impressive interest rate, which is an encouraging factor to apply for a personal loan.