Frequently Asked Questions

GST registration is mandatory if your aggregate turnover exceeds Rs 40 lakh (Rs 20 lakh for services, Rs 10 lakh for special category states). It is also mandatory regardless of turnover if you:

• Make inter-state supplies
• Supply through e-commerce platforms
• Are required to pay tax under reverse charge
• Are a casual or non-resident taxable person

• Goods suppliers: Rs 40 lakh (Rs 20 lakh in special category states)
• Service providers: Rs 20 lakh (Rs 10 lakh in special category states)
• Composition scheme: Rs 1.5 crore for goods, Rs 50 lakh for services

These thresholds are based on aggregate turnover across all your business verticals on the same PAN.

• GSTR-1 (outward supplies): 11th of the following month
• GSTR-3B (summary return with tax payment): 20th of the following month
• GSTR-9 (annual return): 31 December
• GSTR-9C (reconciliation statement, if turnover exceeds Rs 5 crore): 31 December

For QRMP scheme taxpayers, GSTR-1 is quarterly and GSTR-3B is monthly with IFF facility.

Do not ignore it. Read the notice carefully to understand the allegation — it could be related to ITC mismatch, non-payment of tax, incorrect returns, or classification issues.

• Engage a qualified CA immediately
• File a written reply within the time specified (usually 30 days)
• Gather all supporting documents — invoices, e-way bills, bank statements, contracts
• Attend the personal hearing if scheduled
• If the demand is confirmed, you can appeal to the Appellate Authority within 3 months

GST applies to under-construction properties at 1% (affordable housing, up to Rs 45 lakh) or 5% (non-affordable) without ITC. No GST on completed properties with OC/CC. For commercial properties, GST is 12% with ITC.

In redevelopment projects, GST applies on the developer’s construction service. For JDAs, GST on development rights is payable under reverse charge, deferred until completion certificate. Land sale is exempt from GST.

RERA (Real Estate Regulation and Development Act, 2016) requires all real estate projects with land area over 500 sqm or more than 8 apartments to be registered with the state regulatory authority (MAHARERA in Maharashtra).

This applies to builders, developers, and promoters. Registration must be obtained before any advertisement, marketing, booking, or sale of units. Exemptions apply to projects completed before RERA and projects involving only renovation without new allotment.

• Check the RERA registration number on the MAHARERA website and verify project details
• Review the title report and ensure clear title
• Verify all approvals — IOD, CC, environmental clearance
• Check for any encumbrances, mortgages, or litigation
• Review the builder’s track record on MAHARERA (past projects, complaints)
• Verify the carpet area calculation matches RERA definition
• Review the agreement for sale carefully, especially payment schedule and penalty clauses
• Check the escrow account status and project financial health

• Affordable housing (up to Rs 45 lakh, carpet area up to 60 sqm in metro cities): effective GST is 1% without ITC
• Non-affordable housing: effective GST is 5% without ITC

These rates include a deemed one-third abatement for land value. GST is applicable only on under-construction properties — no GST after OC/CC is issued. The builder must charge GST on the booking amount, installments, and all charges except stamp duty and registration fees.

• Under Income Tax, the landowner’s capital gains liability is deferred to the year of receiving the completion certificate (Section 45(5A))
• GST on development rights is payable by the developer under reverse charge, deferred until CC/OC
• The developer pays GST on construction service for the landowner’s share
• Stamp duty is applicable on the JDA and on individual unit conveyances
• TDS under Section 194-IA applies on each unit transfer

Proper structuring of the JDA is critical to optimize tax outcomes for both parties.

1. Step 1: Obtain Digital Signature Certificate (DSC) for all directors
2. Step 2: Apply for Director Identification Number (DIN) through SPICe+ form
3. Step 3: Reserve the company name through RUN (Reserve Unique Name) service
4. Step 4: File SPICe+ (INC-32) with MCA along with MOA and AOA
5. Step 5: Obtain Certificate of Incorporation

The process typically takes 7–15 working days. You will simultaneously get PAN, TAN, GST registration, EPFO, and ESIC registration through the integrated SPICe+ form.

Minimum requirements: 2 directors, 2 shareholders, Rs 1 lakh authorised capital (no minimum paid-up capital).

Udyam Registration provides:

• Priority sector lending from banks at lower interest rates
• Collateral-free loans under CGTMSE scheme (up to Rs 5 crore)
• Protection against delayed payments (buyer must pay within 45 days, with interest at 3x bank rate)
• Exemption from direct tax in initial years under specific schemes
• 50% subsidy on patent registration fees
• Preference in government procurement (25% of procurement reserved for MSMEs)
• Lower electricity rates in some states
• Reimbursement of ISO certification costs

For trademark registration you need:

• The trademark (logo/wordmark/combination) in the prescribed format
• Applicant’s identity proof (PAN, Aadhaar for individuals; Certificate of Incorporation for companies)
• Address proof
• Signed Form TM-A
• Power of attorney (if filing through an agent)
• MSME/Startup certificate (for fee concession)
• Description of goods/services with the appropriate class under the Nice Classification

The process takes 12–18 months and includes filing, examination, publication in the Trademark Journal, and registration. Government fees are Rs 4,500 per class (Rs 9,000 for non-MSME entities).

FSSAI (Food Safety and Standards Authority of India) registration/license is mandatory for anyone involved in food business — manufacturing, processing, packaging, storage, distribution, or sale of food products.

• Basic Registration: Turnover up to Rs 12 lakh
• State License: Turnover between Rs 12 lakh and Rs 20 crore
• Central License: Turnover above Rs 20 crore or for importers/exporters

Documents needed: Identity proof, address proof, food safety management plan, list of food products, and NOC from the local municipal authority.

A Virtual CFO is a qualified Chartered Accountant or senior finance professional who provides CFO-level strategic financial leadership to your business on a part-time, remote, and flexible basis.

Unlike a regular accountant who handles bookkeeping and compliance, a Virtual CFO focuses on cash flow management, financial planning, MIS reporting, fund raising support, banking relations, and strategic decision support.

The engagement is typically monthly, costing Rs 25,000–75,000 per month compared to Rs 2–4 lakh for a full-time CFO.

Your business needs a Virtual CFO when:

• You are profitable on paper but consistently short of cash
• You are planning to raise debt or equity funding
• Your business is growing rapidly but margins are shrinking
• You have received tax notices indicating compliance gaps
• You are making major decisions without financial modelling
• Your banker is unhappy with financial submissions
• You are planning a succession, exit, or M&A transaction

Generally, businesses with turnover between Rs 2 crore and Rs 50 crore benefit most from Virtual CFO services.

A Virtual CFO provides:

• Monthly MIS reports and financial dashboards
• Cash flow forecasting and working capital management
• Budgeting and variance analysis
• Fund raising support (CMA data, financial models, pitch decks)
• Banking relationship management and facility negotiations
• Compliance calendar and regulatory oversight
• Tax planning and structuring
• Business valuation
• Internal control assessment
• Board-ready financial presentations

The scope is customised based on your business needs and can be scaled up or down.

Virtual CFO fees typically range from Rs 25,000 to Rs 75,000 per month depending on business size, complexity, and scope of services.

This compares to Rs 2,00,000–4,00,000 per month for a full-time CFO (plus employee benefits and infrastructure costs). Annual cost of a Virtual CFO is Rs 3–9 lakh versus Rs 30–55 lakh for a full-time CFO.

Most engagements are structured as monthly retainers with quarterly reviews. Additional project-based fees may apply for specific assignments like fund raising or business valuation.

Statutory audit is a legally mandated audit under the Companies Act, 2013 (for companies) or under the Income Tax Act (tax audit under Section 44AB). It is conducted by an external auditor appointed by the shareholders and results in an audit report filed with the ROC/Income Tax Department.

Internal audit is a management tool — it is an ongoing review of internal controls, processes, and risk management conducted by an internal team or appointed firm. Internal audit reports to the management/audit committee, not to external regulators.

Both are important: statutory audit ensures legal compliance, while internal audit improves operational efficiency and prevents fraud.

Tax audit under Section 44AB is mandatory if:

• Your business turnover exceeds Rs 1 crore (Rs 10 crore if at least 95% of transactions are digital)
• Your professional gross receipts exceed Rs 50 lakh
• You are claiming lower profits than the presumptive rates under Section 44AD (8%/6% of turnover) or 44ADA (50% of receipts)
• You have opted out of presumptive taxation after opting in

The tax audit report (Form 3CA/3CB and 3CD) must be filed by 30 September (extended to 31 October if transfer pricing applies). Penalty for non-compliance is 0.5% of turnover or Rs 1,50,000, whichever is lower.

TDS (Tax Deducted at Source) compliance involves:

• Obtaining TAN (Tax Deduction Account Number)
• Deducting TDS at the applicable rate at the time of payment or credit, whichever is earlier
• Depositing TDS with the government by the 7th of the following month (30 April for March)
• Filing quarterly TDS returns (Form 24Q for salaries, 26Q for non-salaries) by the prescribed due dates
• Issuing TDS certificates (Form 16/16A) to deductees within the prescribed time
• Filing correction statements if errors are found

Non-compliance attracts interest under Section 201(1A) at 1–1.5% per month and penalties under Section 271C equal to the TDS amount.