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GST Registration for businesses in Co-Working Spaces

by Sanjeev Archak Sanjeev Archak No Comments

Co-working spaces growing in India at a fast pace. Startups, small and medium-sized enterprises (SMEs) and even multinationals are based in co-working spaces. A co-working space provides work on a plug and play model which is convenient as well as cost effective for businesses.

This co-working concept has posed a challenge for GST authorities when it comes to providing GST registration. GST authorities so far have been hesitant in providing registration to businesses working from a co-working space. Most often the reasons for rejection was that the co-working space could not be considered as “principal place of business” as per the GST law. To further this reasoning the GST department contended that there were other companies in the same space and hence it could not act as principal place of business.

Recently, a co-working space in Kerala petitioned the GST Authorities to permit the registration for businesses based out of co-working spaces. The co-working space argued that hiring full-fledged offices in big cities is unaffordable due to high rental charges. Due to this reason many startups prefer co-working spaces. The following questions were raised by the co-working space in its petition to the GST Authorities:

  1. Can GST registrations be allowed for multiple companies from the same address?
  2. Can registration be denied even if they follow all GST rules regarding “place of business?

The GST authorities ruled that there is no prohibition under GST law for obtaining GST registration to a shared office space or virtual office, if the land lord permits such leasing as per the agreement. Further, the GST authority ruled that every business seeking registration shall upload the following:

  1. the rental agreement with the landlord
  2. if there is a sub-lease, then rental agreement between lessee and sub lessee
  3. monthly utility bill in connection with the payment of electricity charges or water charges

This ruling is a relief for businesses working out of a co- working space and will enable to obtain GST registration henceforth.

Running a business in India is not an easy task. It involves a constant investment of both time and effort as well as technical capabilities of knowing the various statutory compliance and regulations.

But many early businesses struggle with the multitude of compliances that are part of doing business in India. Our advisors at Integra Books can help you ensure you do the right things at the right time

7 Different Funding Options for Startups in India

by Sanjeev Archak Sanjeev Archak 1 Comment

For an entrepreneur to pivot their business models and explore untapped opportunities, funding becomes the inevitable step. Apart from choosing the right entity for registering your startup business and going through the cumbersome process of following the various regulatory compliance’s, getting your startup funded is an important aspect that needs significant time and effort.

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The Ultimate Annual Compliance Checklist for Startups in India

by Sanjeev Archak Sanjeev Archak 3 Comments

For a Startup registered as a private limited company in India, there are certain compliance requirements laid down by the Companies Act, 2013 and other regulatory bodies that need to followed and adhered to from time to time. Failure to adhere to such regulations would lead the startup to penalties that could severely damage your business and harm the reputation that you have worked so hard for. Keeping this in mind, we have curated an annual compliance checklist for startups in India.

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Pre-Funding Compliance Checklist for Startups in India

by Sanjeev Archak Sanjeev Archak 1 Comment

Typically, most modern startups today seek some sort of funding after they’ve been set up. While we have huge respect for companies that bootstrap, raising funds from investors has become quite common these days and often a necessity as well. But in most cases, startup founders are so involved in the process of raising funds that they forget to look at the mandatory compliances and due-diligence processes that are involved before and after fundraising. Today we’ll take a look at the pre-funding compliance checklist for startups in India.

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Rules Applying to IGST for Advertisement Services

by Sanjeev Archak Sanjeev Archak No Comments

Rules applying to IGST for advertisement services were amended recently via notification dated 15 November 2017. The guidelines state the criteria for allocating the IGST to various States/Union Territories in case of the advertisement services are supplied either to the Central/ State Government, a local authority or even a statutory body as per Section 12(14) of the IGST Act, 2017.

These criteria are applicable in case of no contract between the recipient and the supplier regarding the amount to be to be mentioned on the invoice. Here is a brief below of the major pointers issued as amendments to help you grasp the gist quite quickly.

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How to Manually File GST Refund Claims

by Sanjeev Archak Sanjeev Archak No Comments

The Government of India is introducing new policies for the benefit of the nation. Last year in November government introduced Demonetization to prevent hoarding of black money and in July 2017 it introduced Goods and Services Tax, a group of indirect taxes which replaced a lot of indirect taxes levied by State and Central Government. In November 2017 in order to simplify the process of GST refunds, Government introduced a Circular No. 17/17/2017 stating the process of –“How to Manually File GST Refund Claims”. Here I will help you to understand the procedure in a better and easy way.  Read more

Get to Know About the Penalty for Late Filing of Service Tax Return [And More]

by Sanjeev Archak Sanjeev Archak 2 Comments

Every service provider in India is aware of service tax and many have at some point dealt with a penalty for late filing of service tax return. For those who are not aware, service tax is an indirect tax that is levied on the services provided by any service provider. Consumers are responsible for paying this service tax which is included in the invoice, and service providers are responsible for collecting it and paying it through the service tax return.

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GST FAQs on Composition Scheme

by Sanjeev Archak Sanjeev Archak No Comments

Our second part in the GST FAQs series deals with the Composition Scheme which was introduced under the Goods and Services Act keeping the best interests of small businesses in mind. SMEs often face the challenges of maintaining various compliances with the statutory bodies of the country in a timely manner.

Composition Scheme permits the taxpayer to choose for making GST payments as a fixed percent of the business turnover rather than paying those taxes under regular norms of the GST law.

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