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Input tax credit under GST The Input Tax Credit refers to the tax amount paid on purchases, which can be claimed when paying taxes on sales. While this provides a basic understanding, there are several important provisions under the GST law that should be considered. This article will explain these provisions in detail. What is an input tax credit? Under GST, the Input Tax Credit is subject to various sections and rules. This benefit is accessible to the supplier and helps to decrease their tax liability for sales. The fundamental requirements for Input Tax Credit are outlined in Section 16 of the CGST Act, while Section 17 imposes some restrictions on its availability. Additionally, Section 18 deals with how Input Tax Credit is handled during the transfer or shifting in a business entity. How does the Input tax credit mechanism work? GST is a value-added tax, which means that each individual in the chain is responsible for paying tax only on their value addition. To better und

Difference between TM ( ™ ) and R ( ® ) symbol We often come across two symbols associated with Trademarks - ‘TM’ and ‘R’. Each symbolizes a different type of trademark. The ‘R’ symbol stands for a Registered Trademark, while ‘TM’ represents an Unregistered Trademark. The trademark itself can be a signature, symbol, logo, design, etc., followed by the symbol in superscript. A trademark is a form of intellectual property that provides the owner with exclusive rights to use and authorize others to use the trademark with the owner's permission, in exchange for adequate consideration. It serves as a means to identify the origin of a product. Registered Trademark A trademark that is officially registered under the Trademarks Act, of 1999 is known as a registered trademark. The registration of a trademark provides the owner with exclusive rights, including the sole use of the mark in relation to their products or services. The registration period for a trademark is ten years, afte

Understanding the Differences between Copyright, Patent, and Trademark "In the context of intellectual property , the terms patent, copyright, and trademark refer to the exclusive rights granted to creators for their original works. These rights typically offer a period of exclusivity to the creator to use and distribute their work. The protection provided by copyright, patent, and trademark extends to the output resulting from the implementation of the idea in practice. Given the availability of multiple intellectual property rights, individuals often find it challenging to differentiate between them. This article aims to clarify the distinctions between Copyright, Patent, and Trademark." Copyright As soon as an author creates an original work, copyright protection is established. This exclusive right covers a wide range of works, such as paintings, photographs, music, books, and computer programs, among others, defined under the Copyright Law. Copyright laws protect the

  Change of Partners in Limited Liability Partnership (LLP) The Limited Liability Partnership  is operated by its partners, who oversee all aspects of the business to achieve its objectives and vision. The addition or departure of partners does not affect the LLP's legal status, but it does impact the business's growth and the remaining partners' responsibilities. Any changes to the partners or their information require approval from the Ministry of Corporate Affairs. The process of adding a partner to an LLP The addition of a new partner to an existing LLP typically requires the approval of all current partners, unless the LLP agreement permits one partner to do so without the others' consent.  To join the LLP, the new partner must express their intention to do so, and after being admitted, the LLP must file Form 4 within 30 days. The form must be signed by an existing designated partner and accompanied by a certificate from a practicing company secretary or charte

  Preparation and Maintenance of Statutory Registers The Statutory Registers comprise specific records of the Company’s Directors, Shareholders/Members, Loans & Guarantees, Deposits, Shares, etc. These registers are kept at the registered office of the Company. As per the Companies Act 2013, all businesses are required to maintain and update their records. The company should keep accurate documents and statements that depict the organization’s state of affairs at its registered office for each financial year, including all its subsidiaries and other locations. The law mandates the recording of transactions at the company’s registered office and branches, which should be maintained on an accrual basis, using a double-entry bookkeeping system.  Most businesses maintain their statutory registers in a loose-leaf binder or bound book. However, they can be maintained in any format such as a computer record. The Companies Act 2013 necessitates that every company submits these records

  What is a Letter of Undertaking in GST? A Letter of Undertaking (LUT) is a document used in the context of the Goods and Services Tax (GST) in India. Under the GST regime, a registered person who exports goods or services can export them without paying any integrated tax (IGST) by furnishing a LUT to the tax authorities. The LUT is a declaration made by the exporter to the effect that they will fulfill all the requirements under the GST Act and the rules made thereunder. By furnishing a LUT, the exporter assures the tax authorities that they will export the goods or services in accordance with the applicable laws and will not make any supplies that are not in conformity with the GST Act. To be eligible to furnish a LUT, an exporter must fulfill certain conditions, such as having an income tax PAN, having filed GST returns for the previous period, and not having been prosecuted for any offense under the GST Act. The LUT must be furnished in the prescribed form and manner and must

What Trademarks cannot be registered in India? Trademark registration paves the way for products and services to be uniquely identified. It differentiates between products and services. Trademark registration is a crucial step in establishing a unique identity for products and services. It serves as a differentiator in the marketplace and provides the trademark owner with exclusive rights to their trademark while safeguarding against infringement. This protection is essential for building goodwill, customer loyalty, and valuable assets. To ensure effective brand naming, it's important to have a clear understanding of what can and cannot be trademarked. In this article, we'll explore the limitations of trademark registration in India and provide guidance on choosing a brand name. Absolute Grounds for Refusal of Registration Void of distinguishing characteristics In Indian trademark law, the requirement of distinctiveness is strictly interpreted. A trademark that lacks

Quarterly Return Filing and Monthly Payment of Taxes ( QRMP ) in GST To assist small taxpayers with a turnover of less than Rs. 5 crores, the Central Board of Indirect Taxes and Customs (CBIC) introduced the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) scheme under the GST . This scheme allows registered individuals who need to furnish Form GSTR-1 & GSTR-3B and have an aggregate turnover of up to Rupees 5 crores to file GSTR-3B on a quarterly basis and pay tax on a monthly basis. They can do so by using a simple challan in FORM GST PMT-06. The government is empowered under the Central Goods and Services Tax (CGST) Act of 2017 to notify a specific group of registered individuals who must file a return every quarter or part thereof as prescribed in the CGST Rules, 2017.   According to the CGST Act, 2017, notified individuals must pay the tax due to the government within a prescribed time frame, taking into account particulars such as inward and outward supplies,

Ordinary Resolution vs. Special Resolution A resolution is a formal means by which a company record decisions made during a meeting of its members. Most decisions that affect a company are required to be made through a resolution. Additionally, the company's Articles of Association, which serve as its constitution, may contain specific provisions outlining which decisions must be made through a resolution. Ordinary Resolution An ordinary resolution is one that has more votes in favor than against it, with a majority of over 50% of the members, including shareholders or directors, who attend the General Meeting either in person or by proxy. The resolution can be passed by a show of hands, polling, or electronically. Proper notice of the meeting must be given to members, and those who do not participate in voting are not considered. Typically, an ordinary resolution is required to conduct routine business at the Annual General Meeting (AGM). Ordinary resolutions are required f

Can a Director of one company be an employee of another Company? Who is a Director? A Director is an individual elected by the company to exercise the statutory affairs of the company and he is the one who is responsible for the management of the company’s affairs. The scope of authority of the director is limited by the provisions of the companies act 2013 and clauses in articles of association of the company. Types of Directors? Let’s understand the different types of directors that businesses usually have. Residential Director Independent Director Additional Director Small shareholders Director Alternate Director Nominee Director Shadow Director In general, there are two categories of directors: "executive" and "non-executive." An executive director may be the only director of a company and has a significant personal interest in the company's success, often as a major source of income throughout their working life. On another side,

Important Key Points for Multi-class Trademark Application Introduction When a Trademark is registered, it legally safeguards the registered brand name from unauthorized usage. The registration of a trademark is determined by the kinds of goods and services offered. The Ministry of Commerce and Industry classifies all goods and services into 45 categories.  To register a brand name under a trademark, it is necessary to know the appropriate trademark category. Additionally, a product may fall into more than one category. Filing separate applications for each category can be a lengthy procedure. What is a Multi-Class Trademark Application? In order to register a service mark or trademark across two or more product or service categories, a multi-class trademark application is used. This type of application enables the applicant to register their trademark in more than one category by filing a single federal trademark application. The most obvious advantage is that the applicant can

Significance of claiming a user date in a trademark registration application Trademark Registration in India follows the principle of prior use and first claim. This implies that the person who applies for a brand name first is granted priority for trademark registration. Including a user date in the Trademark Registration application is recommended to safeguard the trademark and prevent any potential infringement. In situations where two identical trademark applications are submitted, the applicant who can prove an earlier date of use is likely to have a stronger case compared to someone who has either applied on a proposed-to-be-used basis or claimed usage on a later date. Therefore, the user date is a crucial factor in securing absolute rights in Trademark registration. What is “User Date” in Registration of Trademark? The term "User Date" refers to the date when a brand name's user started using the name, whether or not the name was registered. For goods, the