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What is the difference between advance and loan?
Following are the differences between advances and loans. A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services. Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance doeRead more
Following are the differences between advances and loans.
A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services.
Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance does not carry such a rate of interest.
A loan can be for a long-term period whereas an advance is given for a short-term period and against work or project.
A loan is always repaid, whereas an advance is adjusted with the outstanding bill amount.
Example-Advance given to employees against the current month’s salary. A loan is given to employee for buying a Car.
See lessCan a company form a One Person Company (OPC) as its subsidiary?
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in India is eligible to incorporate OPC. Therefore, the question of any “body corporate” or other organizations can not constitute a One person companRead more
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in
See lessIndia is eligible to incorporate OPC. Therefore, the question of
any “body corporate” or other organizations can not constitute a One person company. Naturally, they are not a natural person.
Is section 135 relating to Corporate Social Responsibility applicable to OPCs?
Hi, Section 135 of Companies Act is applicable to every company which is having : • net worth of Rs 500 crore or more; or • turnover of Rs 1000 crore or more; or • a net profit of Rs 5 crore or more during any of the three preceding financial years. The word used here is ’every company’, However, iRead more
Hi,
Section 135 of Companies Act is applicable to every company which is having :
• net worth of Rs 500 crore or more; or
• turnover of Rs 1000 crore or more; or
• a net profit of Rs 5 crore or more
during any of the three preceding financial years.
The word used here is ’every company’, However, in terms of rule 6(2) of companies (Incorporation) Rules, 2014, an OPC loses its status if paid-up capital exceeds Rs. 50 lakhs or average annual turnover is more than 2 crores in three immediate preceding consecutive years.
In view of this, it is quite clear that an OPC would not meet the criteria specified in section 135 as detailed above.
See lessWhat is the requirement as to the minimum and maximum number of directors in an OPC ?
Hi, Please refer to section 149(1) of the Company Act,2013, according to which: A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passingRead more
Hi,
Please refer to section 149(1) of the Company Act,2013, according to which:
A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a
See lessmaximum of 15 which can also be increased by passing a special resolution as in case of any other company.
is interest paid on personal loan eligible for 24(b) of income tax act?
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution. Interest paid to your fRead more
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution.
Interest paid to your friends and relatives in respect of money borrowed for the purposes specified above can also be claimed under section 24(b).
But the actual use of the personal loan should be only for the purpose of the purchase, repairs, renovation, etc. To prove this, the personal loan should be taken through a bank account and the expenditures made for the above purpose and payment of interest should also be made from the bank account.
See lessWhat is quarterly return and monthly payment scheme under GST and benefit for assessee?
Hi The QRMP (Quarterly return and monthly payment) scheme is introduced to help small taxpayers whose turnover is less than Rs.5 crores. As clear from the name It allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month. It was brought into effect from 1st January 2021 for tRead more
Hi
The QRMP (Quarterly return and monthly payment) scheme is introduced to help small taxpayers whose turnover is less than Rs.5 crores. As clear from the name It allows the taxpayers to file GSTR-3B on a quarterly basis and pay tax every month.
It was brought into effect from 1st January 2021 for the users having aggregate turnover of up to INR 5 crores in the previous financial year.
Previously, taxpayers were required to file GSTR-1 and GSTR-3B monthly, but with the QRMP scheme, they can file returns once a quarter.
Once the user opts for this scheme, He will continue to be in this scheme unless he crosses the turnover threshold or opt-out of it.
Use can opt-in/out of the QRMP scheme by visiting the GST portal by clicking Login > Services > Returns. Then, click the Opt-in for quarterly return option.
See lessWhat are the implications of RBI guidelines on current account
RBI issued guidelines for the opening of multiple operating accounts by borrowers, both current accounts, as well as cash credit (CC)/overdraft (OD), accounts to curb diversion of funds and fraud with banks. By these guidelines, banks will be having complete information of the banking exposure of thRead more
RBI issued guidelines for the opening of multiple operating accounts by borrowers, both current accounts, as well as cash credit (CC)/overdraft (OD), accounts to curb diversion of funds and fraud with banks. By these guidelines, banks will be having complete information of the banking exposure of the clients and can easily access their potential and credit limit for further credit. It will not only strengthen their banking system but also will reduce the chances of NPA and bad loans. However, Now banks have to create such infrastructure to implement these guidelines.
These Guidelines are as under:
For details guidelines, the following link can be referred to: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12137&Mode=0
See less