TAXAJ - TAXAJ Knowledge Base , Miscellaneous

India’s New Labour Codes Explained

Fri, 28 Nov 2025 13:49:52 +0530

A Modern Framework for a Changing Workforce

For decades, India’s labour law system resembled a cluttered set of rules written across different periods, each carrying its own definitions, exemptions, and compliance requirements. With 29 separate labour Acts, businesses faced multiple registrations, inspections, and overlapping authorities, while workers often struggled to understand their rights or access benefits.

To bring structure and clarity, the Government of India consolidated these 29 laws into four comprehensive labour codes:

• The Code on Wages

• The Industrial Relations Code

• The Code on Social Security

• The Occupational Safety, Health and Working Conditions (OSH) Code

The objective is not to rewrite the labour ecosystem from scratch, but to remove contradictions, unify definitions, simplify compliance, and expand social security coverage to a broader workforce, including gig and platform workers. Most states have already drafted their rules, moving India closer to full implementation.

These labour codes impact nearly every working individual — salaried professionals, factory workers, gig workers, contract staff, micro-enterprise employees, and retail workers. They influence salary structures, eligibility for social security, definitions of “workers”, employee benefits, and workplace safety standards.

Understanding the Four Labour Codes

The Code on Wages

This code combines laws related to minimum wages, payment of wages, and bonuses, and introduces a uniform definition of the term “wages”. This unified definition forms the basis for calculating provident fund (PF), gratuity, and other social security benefits.

The Industrial Relations Code

This governs hiring, retrenchment, layoffs, and dispute resolution. The goal is to offer flexibility to businesses while maintaining essential safeguards for employees.

The Code on Social Security

This integrates PF, ESIC, maternity benefits, gratuity, and welfare measures under one framework. It also brings gig workers and platform workers into the social security fold—a historic step towards formal recognition.

The Occupational Safety, Health and Working Conditions (OSH) Code

This merges all laws related to workplace safety, working conditions, contract labour, and health standards. It standardises safety norms across industries and establishments of varying sizes.

Is the New Framework a Universal Win?

The new codes introduce both opportunities and challenges.

Impact on Employers

From a compliance standpoint, the codes aim to make operations more predictable. For instance, the Industrial Relations Code allows establishments with up to 300 workers (previously 100) to manage layoffs and closures without prior government approval. This is intended to encourage expansion and employment generation.

At the same time, the OSH Code introduces the “one-worker rule”, meaning even the smallest establishments must adhere to core safety standards.

Impact on Workers

The salary structure change is one of the biggest shifts. Under the revised definition, allowances cannot exceed 50 percent of total wages. This means the basic salary component must form at least half of the total compensation.

Since PF is calculated on basic wages:

• Higher basic = Higher PF deductions

• Higher PF = Lower take-home pay but stronger retirement savings

For example:

If the monthly CTC is ₹1,00,000, employers earlier structured basic pay at 30–40 percent. Under the new rule, basic pay must be at least 50 percent, increasing PF contributions and reducing take-home salary.

These changes strengthen long-term financial security but may reduce monthly disposable income.

Other notable employee-centric reforms include:

• Gratuity eligibility for fixed-term employees after completing one year of service.

• Easier portability of benefits for inter-state migrant workers.

• Permission for women to work night shifts with necessary safety measures.

• Stricter norms for hazardous workplaces, regardless of establishment size.

• Mandatory early-salary disbursal for IT and IT-enabled services — within the first week of every month.

Gig and Platform Workers Enter the Legal Framework

Under the Social Security Code, aggregators must contribute to a social security fund for gig and platform workers. While this marks an important milestone, the operational specifics — contribution percentages, timelines, and enforcement — still require clarity.

The Larger Debate: Flexibility vs. Protection

India’s labour codes attempt to strike a balance between two competing objectives:

• Making the labour market more flexible for businesses

• Providing better protection and social security for workers

Greater flexibility often benefits employers, while expanded protections increase administrative responsibilities. Striking the right balance will determine how smoothly the transition unfolds.

Where Do Things Stand Now?

India’s new labour codes represent an important step toward modernising workforce regulation. If executed well, they can deliver:

• Simplified compliance for businesses

• Stronger safety nets for employees

• Social security inclusion for gig and platform workers

However, the trade-offs are significant — lower take-home pay for many employees, reduced job protection in some cases, and delays until all states fully implement the codes.

These reforms are best viewed as a comprehensive reboot of India’s labour systems for a digital, dynamic economy. The true impact will depend on consistent implementation and collaborative efforts between employers, workers, regulatory authorities, and state governments.

The coming months will be crucial, as businesses review salary structures, workers assess benefit changes, and states fine-tune their rules. All stakeholders are watching closely to understand how India’s labour landscape will evolve.

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New UAN Allotment & Activation Process via Face Authentication: Everything You Must Know (2025 Update)

Fri, 01 Aug 2025 14:52:46 +0530

New UAN Allotment & Activation Process via Face Authentication: Everything You Must Know (2025 Update)

Introduction

The Employees’ Provident Fund Organisation (EPFO) has revolutionized its UAN allotment and activation process by launching a facial authentication-based eKYC system. This advanced step is a part of the government's Digital India initiative, aimed at making the UAN (Universal Account Number) activation process faster, contactless, and more secure.

Whether you're a new employee or someone updating your KYC, this blog walks you through the new UAN face authentication process in 2025—its features, benefits, and how you can complete it from anywhere using your smartphone.

What is UAN?

UAN or Universal Account Number is a unique 12-digit identifier allotted to each employee contributing to the EPF scheme. It links all your EPF accounts (member IDs) under one umbrella, even if you switch jobs.

Why Face Authentication for UAN Activation?

Traditional UAN activation and eKYC required:

Aadhaar OTP verification,
Biometric authentication at Aadhaar centres,
Manual KYC verification from employers.

To streamline this, EPFO introduced face authentication, removing the dependency on physical visits or biometric devices.

Key Benefits of UAN Activation via Face Authentication

✅ 100% contactless

✅ No need for OTP or biometric device

✅ Can be done from home using mobile or webcam

✅ Reduces errors in KYC updates

✅ Instant UAN allotment and activation

Who Can Use the Face Authentication Method?

This facility can be used for:

New employees applying for UAN
Existing EPF members updating KYC
Employers or HR teams managing employee PF records

Documents Required for UAN Activation

Before proceeding, ensure the following:

Aadhaar linked with mobile number
PAN (if applicable)
A smartphone or laptop with working camera
Stable internet connection

Step-by-Step Process for UAN Activation Using Face Authentication (2025)

Here's how to activate your UAN through face authentication in 2025:

Step 1: Visit the EPFO Face Authentication eKYC Portal

Go to: https://bhuvan-uidai.nrsc.gov.in/facemp/ or via EPFO eKYC page.

Step 2: Enter Your Details

Enter your Aadhaar Number
Agree to the consent form
Click on ‘Submit’

Step 3: Face Capture

Allow camera permissions on your browser or app
Align your face as shown on screen
The system will capture your facial image and verify it with Aadhaar records

Step 4: UAN Allotment or KYC Approval

If new, UAN will be generated and shared
If existing, KYC details will be updated instantly

Common Issues and Troubleshooting

⚠️ Face Not Matching Error: Ensure proper lighting and avoid accessories like glasses

⚠️ Poor Network: Use a stable Wi-Fi connection for real-time facial capture

⚠️ Camera Permission Blocked: Enable permissions in browser or app settings

FAQs on UAN Face Authentication

Q1. Is face authentication mandatory for all UAN activation?

➡️ As of now, it is an optional method but is highly recommended for ease.

Q2. Can this be done without employer involvement?

➡️ Yes, individuals can self-activate UAN or update KYC using this method.

Q3. Is this method safe?

➡️ Yes. The authentication is done via UIDAI and adheres to privacy standards.

Final Thoughts

With the launch of the face authentication system for UAN activation and KYC, EPFO has taken a giant leap towards hassle-free digital compliance. Whether you’re an employer or an employee, embracing this method saves time and ensures smoother onboarding or KYC processes.

At TAXAJ, we specialize in PF, ESI, Payroll, and Labour Law Compliances. Need help with UAN registration, EPF e-nomination, or KYC filing?

📞 Contact our experts today or visit www.taxaj.com to know more.

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Foreign Remittances Purpose Codes - RBI

Wed, 13 Mar 2024 13:29:05 +0530

Purpose Codes for Reporting Forex Transactions Payment Purposes

Purpose code is a code issued by the Reserve Bank of India (RBI) to classify each transaction with the nature of foreign currency transactions. In other words, the Purpose code helps regulators identify the exact nature of a cross-border transaction. So, it is mandatory for any cross-border payments in India.

Bank and other payment processors must report each transaction with a purpose code. Here are the purpose codes for payment purposes given in the tabular form for your reference, which are used for filing foreign remittances with Reserve Bank of India.

New Purpose Codes for Reporting Forex Transactions Payment Purposes

Group No.	Purpose Group Name	Purpose Code	Description
00	Capital Account	S0001	Indian investment abroad -in equity capital (shares)
		S0002	Indian investment abroad -in debt securities
		S0003	Indian investment abroad -in branches
		S0004	Indian investment abroad -in subsidiaries and associates
		S0005	Indian investment abroad -in real estate
		S0006	Repatriation of Foreign Direct Investment in India- in equity shares
		S0007	Repatriation of Foreign Direct Investment in India- in debt securities
		S0008	Repatriation of Foreign Direct Investment in India- in real estate
		S0009	Repatriation of Foreign Portfolio Investment in India- in equity shares
		S0010	Repatriation of Foreign Portfolio Investment in India- in debt securities
		S0011	Loans extended to Non-Residents.
		S0012	Repayment of loans received from Non-Residents (Long & medium-term loans)
		S0013	Repayment of short-term loans received from Non-Residents
		S0014	Repatriation of Non-Resident Deposits (FCNRB/NRERA etc.)
		S0015	Repayment of loans & overdrafts taken by ADs on their own account.
		S0016	Sale of a foreign currency against another foreign currency
		S0017	Purchase of intangible assets like patents, copyrights, trademarks, etc.
		S0018	Other capital payments not included elsewhere
01	Imports	S0101	Advance payment against imports
		S0102	Payment towards imports- settlement of invoice
		S0103	Imports by diplomatic missions
		S0104	Intermediary trade
		S0190	Imports below Rs. 500,000- (For use by ECD offices)
02	Transportation	S0201	Payments for surplus freight/passenger fare by foreign shipping companies operating in India.
		S0202	Payment for operating expenses of Indian shipping companies operating abroad.
		S0203	Freight on imports – Shipping companies
		S0204	Freight on exports – Shipping companies
		S0205	Operational leasing (with crew) – Shipping companies
		S0206	Booking of passages abroad – Shipping companies
		S0207	Payments for surplus freight/passenger fare by foreign airline companies operating in India.
		S0208	Operating expenses of Indian Airlines companies operating abroad
		S0209	Freight on imports – Airlines companies
		S0210	Freight on exports – Airlines companies
		S0211	Operational leasing (with crew) – Airlines companies
		S0212	Booking of passages abroad – Airlines companies
		S0213	Payments on account of stevedoring, demurrage, port handling charges, etc.
03	Travel	S0301	Remittance towards Business travel.
		S0302	Travel under basic travel quota (BTQ)
		S0303	Travel for pilgrimage
		S0304	Travel for medical treatment
		S0305	Travel for education (including fees, hostel expenses, etc.)
		S0306	Other travel (international credit cards)
04	Communication Service	S0401	Postal services
		S0402	Courier services
		S0403	Telecommunication services
		S0404	Satellite services
05	Construction Service	S0501	Construction of projects abroad by Indian companies, including import of goods at the project site
		S0502	Payments for the cost of construction etc., of projects executed by foreign companies in India.
06	Insurance Service	S0601	Payments for Life insurance premium
		S0602	Freight insurance – relating to import & export of goods.
		S0603	Other general insurance premium
		S0604	Reinsurance premium
		S0605	Auxiliary services (commission on insurance)
		S0606	Settlement of claims
07	Financial Services	S0701	Financial intermediation except investment banking – Bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financial leasing, etc.
		S0702	Investment banking – brokerage, underwriting commission, etc.
		S0703	Auxiliary services – charges on operation & regulatory fees, custodial services, depository services, etc.
08	Computer & Information Services	S0801	Hardware consultancy
		S0802	Software implementation (other than those covered in SOFTEX form)
		S0803	Database, data processing charges
		S0804	Repair and maintenance of computer and software
		S0805	News agency services
		S0806	Other information services- Subscription to newspapers, periodicals
09	Royalties & License Fees	S0901	Franchises services – patents, copyrights, trademarks, industrial processes, franchises, etc.
		S0902	Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)
10	Other Business Services	S1001	Merchanting services –net payments (from Sale & purchase of goods without crossing the border)
		S1002	Trade-related services – commission on exports/imports
		S1003	Operational leasing services (other than financial leasing) without operating crew, including charter hire
		S1004	Legal services
		S1005	Accounting, auditing, bookkeeping, and tax consulting services
		S1006	Business and management consultancy and public relations services
		S1007	Advertising, trade fair, market research, and public opinion polling service
		S1008	Research & Development services
		S1009	Architectural, engineering, and other technical services
		S1010	Agricultural, mining, and on-site processing services – protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores, etc.
		S1011	Payments for maintenance of offices abroad
		S1012	Other services not included elsewhere
11	Personal, Cultural & Recreational services	S1101	Audio-visual and related services – services and associated fees related to the production of motion pictures, rentals, fees received by actors, directors, producers, and fees for distribution rights.
		S1102	Personal, cultural services such as those related to museums, libraries, archives, and sporting activities; fees for correspondence courses abroad.
12	Government not included elsewhere (G.n.i.e.)	S1201	Maintenance of Indian embassies abroad
		S1202	Remittances by foreign embassies in India
13	Transfers	S1301	Remittance by non-residents towards family maintenance and savings
		S1302	Remittance towards personal gifts and donations
		S1303	Remittance towards donations to religious and charitable institutions abroad
		S1304	Remittance towards grants and donations to other governments and charitable institutions established by the governments.
		S1305	Contributions/donations by the Government to international institutions
		S1306	Remittance towards payment/refund of taxes.
14	Income	S1401	Compensation of employees
		S1402	Remittance towards interest on Non-Resident deposits (FCNRB/NRERA/ NRNRD /NRSR etc.)
		S1403	Remittance towards interest on loans from Non-Residents (ST/MT/LT loans)
		S1404	Remittance of interest on debt securities –debentures/bonds/FRNs etc.
		S1405	Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders or the OD on NOSTRO a/c.)
		S1406	Repatriation of profits
		S1407	Payment/repatriation of dividends
15	Others	S1501	Refunds/rebates/reduction in invoice value on account of exports
		S1502	Reversal of wrong entries, refunds of the amount remitted for non-exports
		S1503	Payments by residents for international bidding
		S1590	Outward remittances below Rs500,000- (for use by ECD regional offices)

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IceGate Registration Process Online

Sun, 16 Jul 2023 17:05:14 +0530

Step By Step Guide to Apply IceGate Registration

For starting any business of Import and Export in India, one must have two Registrations as per the Indian Government, out of which one is IEC (Import-Export Code) and another one is AD (Authorised Dealer) Code Registration.

AD Code is a 14-digit number issued for the customs clearance of the goods. This AD Code aims to ensure that the foreign currency used for transactions in an exporter’s current account comes from a legal channel. But Before we apply or link AD Code we have to complete the registration process for IceGate for which here's the detailed steps and video guidance.

Step 1 - Visit Home page of Icegate Portal

Visit the Icegate portal at https://www.icegate.gov.in/ and click on the “Login/sign Up” link.

(Home page of Icegate)

Step 2 - Click on the Old Website Option

Click on the “Old Website” given on the homepage to proceed with icegate registration.

(ICEGATE Registration Tab)

Step 3 - Click on User Login/Signup Option

After clicking on the old website, Click on the “User login/Signup” option on the Homepage of ICEGATE.

(Tab of User Login/Signup)

Step 4 - Click on the Sign Up Now option

To register on ICEGATE the applicant will have to click on the option of “Sign up now”

(Option of Sign up for ICEGATE Registration)

Step 5 - Select your ICEGATE ID / Availability of credentials

The applicant needs to provide his/her ICEGATE ID and email id. The id will be of the applicant’s choice. The ICEGATE id should be unique else the page will not accept it.

(Unique ICEGATE Id)

Step 6 - Enter IEC Number and click on Verify option

After clicking on check availability the next screen will appear to fill up the details as in the image below. Provide essential details and fill out the registration form.

(Verify the entered details for registration)

Step 7 - Select Custom Location and click on confirm button

Once all details are filled up in the form, click on Verify to check all IEC details which are mapped to IEC number as shown below:

(Select Name of Ports to register)

You have to select the location of the customs ports from the list. You may choose as many ports as you wish to add to your profile.

Step 8 - Fill up the details and attach the DSC.

Once clicked on the “confirm” tab, the page will go to the next step to fill in all the details like name, mobile number, aadhar no & documents. Mobile number and email id should be the same as DGFT registration. For this step, DSC should be connected to upload the documents.

(Enter required details)

Step 9 – Generation of OTP for authentication

The applicant will receive the OTP on the registered email id for authentication.

(Enter OTP to complete the process)

Step 10 - Enter a valid OTP to complete the registration

Applicant will receive the confirmation about the registration on his/her registered mail id stating that “your information has been received successfully & you will be intimated by email as soon as your registration approved by the competent authority”.

To get Final confirmation of approval of Icegate Registration please wait for confirmation from ICEGATE, which usually takes two to three working days.

A user ID and password for accessing your profile will be sent to your registered email address after your request has been accepted.

Step 11 - Check Status of Registration

Users can check the status of their submitted documents by logging into the ICEGATE website with their registered ID. To check the status of your registration follow the steps below:

i. Click on “ICEGATE Registration Verification”

(Icegate registration Verification)

ii. Enter “PAN No. & Image Letters” and click on submit to check the status of your ICEGATE registration.

(Enter Pan no to check the status of registration)

iii. If your registration is active then it will show the below link with details of “ICEGATE ID” & “Registered Since”

(status of icegate registration-Accepted)

iv. It will show the below image if the ICEGATE ID is not active with the definition of “No record found for this PAN number. User is not registered with ICEGATE”.

(status of icegate registration-Pending)

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Documents Required for IceGate & AD Code Registration

Fri, 05 May 2023 13:02:38 +0530

IceGate & AD Code Registration Requisites

For starting an Import and Export business in India, you must have two registrations as per Government regulations. One is IEC Registration, and another one is AD Code Registration. Without these two registrations, you can not start an import-export business in India. The AD Code is required for customs clearance of your Goods.

An AD( Authorised Dealer) Code is a 14-digit number issued. The purpose behind the AD Code is to ensure that foreign currency transactions in an exporter's current account are from a legal channel or not.

AD Code registration at any single port work for custom clearance of export or Import of Goods across India.

Documents Required for IceGate Portal Registration

ICE-GATE (Indian Customs Electronic Commerce/Electronic Data Interchange Gateway) is an e-commerce portal managed by the Indian Customs department which provides a single window for electronic submission of trade-related documents and payment of customs duties and taxes. The portal is intended to simplify and streamline the customs clearance process for importers and exporters in India. It provides a secure and efficient platform for filing bills of entry, shipping bills, and other customs-related documents online, reducing the need for manual submissions and enabling real-time tracking of shipments. The use of ICE-GATE is mandatory for importers and exporters in India who want to engage in electronic filing of customs-related documents.

We would request you to please share/keep ready the following documents to initiate the process towards ICEGATE (Indian Customs Electronic Commerce/Electronic Data Interchange Gateway) registration:

Class 3 Digital Signature Certificate (DSC) with Signing & Encryption.
Self Attested GST Registration Certificate & Import Export Code Original Certificate.
Self Attested and Colour PAN card & Aadhar card of Authorised Signatory.
Self-Attested Copy of Authorisation Letter on the letter head of the Company.
Email ID & Phone Number for Organisation.

Documents Required for AD Code Registration in IceGate

We would request you to please share/keep ready the following documents to initiate the process towards ICE-GATE (Indian Customs Electronic Commerce/Electronic Data Interchange Gateway) registration:

Class 3 Digital Signature Certificate (DSC) with Signing & Encryption
Self Attested PAN Card of Organisation
Self Attested Proof of Business/Trade (Import Export License, GST Registration certificate).
Self Attested Bank Details (Canceled Cheque or Bank Statement).
Self Attested & Colour PAN & Aadhar Card for all the Stakeholders/Directors/Partners.
Self Attested and Colour PAN & Aadhar Card of Authorised Signatory.
Self-attested scanned copy of Authorisation Letter on the letter head of the company/agency
Bank Authorisation Letter for AD Code on Bank's letter head

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NSO vs ISO : Which is Better?

Fri, 03 Dec 2021 23:44:32 +0530

NON-QUALIFIED STOCK OPTIONS VS INCENTIVE STOCK OPTIONS

If you want to begin analysing the essential differences between non-qualified stock options (NSO) and incentive stock options (ISO), you first need to understand what they are.

Stock options are a kind of equity compensation offered by companies to their employees. Instead of granting shares of stock, employees receive derivative options on the stock. The terms and conditions associated with stock options are specifically spelt out for employees in the options agreement itself. Mostly, an employee benefits from a stock option when the company’s stock attains a greater value than the exercise price of the stock. Primarily, there are two types of stock options. These are, ISO or statutory stock options and NSO, which are also referred to as non-statutory stock options.

Let’s explore NSO vs ISO and compare the chief differences between the two.

1. Tax Liability

An ISO often leads to less tax if the exercise (strike) price is almost equal to the fair market value (FMV) as of the grant date. However, for an NSO if the exercise price is at least FMV as of grant date.

2. Eligibility

When it comes to NSO vs ISO, one of the key dissimilarities between the two stock options is that NSO is only reserved for being issued to employees. On the other hand, an ISO can be issued to employees as well as independent contractors or service providers, which also includes non-employee directors.

3. Taxes due

In case of an ISO, tax is not due until the holder/employee sells the stock option. On the other hand, for an NSO, taxes must be paid as soon as the stock option is exercised. Which means at the time of the recipient/holder paying for the stock option. This is because an NSO is considered part of the income of the employee. Therefore, in contrast to ISO, an NSO involves taxation on the stock even before the employee can sell the stock.

4. Company’s benefit

From the perspective of the company, an NSO is far more beneficial as it allows the company to deduct taxes right from the moment when the employee exercises the stock option. This is not possible in the case of an ISO, thereby making NSO the more practical choice for the company.

5. Post-employment exercise period

In terms of NSO vs ISO, one of the key differences is that an ISO must be exercised within three months after termination of employment. This period can only be extended in the event of death or disability. In contrast, an NSO can be exercised at any time before the expiration date of the stock. ISOs are only applicable while the holder is still employed at the company, while NSOs don’t require employment.

6. Restrictions

Some of the important differences between NSO and ISO lie in the restrictions. While an NSO has to adhere to Section 409A strictly, the valuation of an ISO is less stringent. An ISO is also highly regulated under Section 422 of the Internal Revenue Code. For example, it is non-transferable under all circumstances, other than the death of the recipient of the stock. This is not the same for NSO.

Another example if that of the value of a stock that can be exercised every year. For ISO, only $100,000 worth of stock can be exercised annually. Beyond this cap, any stock exercised is treated as an NSO.

7. Rigidity associated

A certain operational rigidity is associated with an ISO. For instance, in most circumstances, such as one in which the employee doesn’t hold the ISO for the minimum holding period, it is treated as an NSO. If the stock is not held for two years from the date when the ISO was first granted and a year from the date on which the stock option was exercised, it is considered an NSO.

These are some of the chief differences between ISO and NSO that are considered by employers while selecting stock options for their employees.

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Mandatory Annual Updation of Import Export Code

Mon, 28 Jun 2021 13:01:17 +0530

Annual Renewal of IEC to avoid De-Activation

Ministry of Commerce & Industry under the Government of India has recently made it mandatory to update the Import Export Code details for all Import Export Code holders every year, w.e.f FY 2021-22.

The department of DGFT or Directorate General of Foreign Trade has issued a gazette notification that from April to June once every year, the Import Export Code holders are now legally required to update the details through the online system even if there are no changes. Suppose an Import Export Code holder fails to update the details. In that case, their Import Export Code shall be de-activated, and no import-export activity will be possible with that Import Export Code.

Import Export Code related provisions in Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020 are now amended/deleted and replaced with new requirements. It is provided that an Import Export Code holder has to ensure that the details are updated electronically every year during the April-June period.

In cases where there have been no changes in Import Export Code details, the same also needs to be confirmed online.

An Import Export Code shall be de-activated if not updated within the prescribed time. Import Export Code so de-activated may again be activated on its successful Updation. This would, however, be done without prejudice to any other action taken for violation of any other provisions of the FTP.

If you have any queries, reach out to our team at +91 8961228919 or mail us at connect@taxaj.com.

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How to Generate CA- UDIN

Sat, 11 Jul 2020 13:53:47 +0530

Steps to Generate ICAI UDIN

The attestation of a Chartered Accountant on a certificate or any such document is of immense value since it usually signifies that the Chartered Accountant, in his professional opinion, has ensured that there is no misrepresentation by the entity issuing/submitting such a document.

A prime example of this being an audit report issued by the auditor in respect of the financial statements of an entity stating the financial statements reflect a true and fair view of the state of affairs of the entity. It is because of this attestation or signature made by the Chartered Accountant that the investors and other stakeholders can rely on the performance of an entity.

Introduction

It is being observed that certain unscrupulous individuals are forging signatures while posing as Chartered Accountants to issue certificates and other such documents with the intent of misleading the authorities.

In view of the above, the Institute of Chartered Accountants of India (ICAI), has developed a method of securing the documents issued by a Chartered Accountant by issuing a Unique Document Identification Number (UDIN). The official announcement is available on the ICAI website.

How to generate UDIN for a document?

The following steps need to be followed after registering on the UDIN portal:

Step 1: Go to the following link: https://udin.icai.org/?mode=myicai

Note: The password for the UDIN portal can be changed at any time. It is recommended to do so after the first login.

Step 2: Click on ‘Generate UDIN’.

Step 3: Enter the required details such as Membership Registration Number, Name, E-mail ID, Firm Registration Number, Firm Name, Client Reference Code / Number, Document Description, Date of Document, Keywords and values and click on ‘Send OTP’.

The ‘keyword’ as mentioned above implies any keyword and its corresponding value / amount as contained in the document for which the UDIN is generated. For example, if the Chartered Accountant is certifying the turnover of an entity, one of the keywords could be ‘Turnover’ along with the corresponding turnover amount as its value.

Note that at least 3 keywords and their corresponding values need to be provided for a document. The maximum number of keywords that can be given are 5.

Step 4: The OTP will be sent on the e-mail address and mobile number registered with ICAI. After entering the OTP, a preview of the details entered will be available for verification. In case there are any changes in the details, press ‘Back’, else click on ‘Submit’.

Step 5: The UDIN will now be generated. Such UDIN may be used on the document by mentioning it using a pen or as a watermark on the document.

Verification of Documents using UDIN

Once a UDIN for a particular document has been generated, the details of the document corresponding with the UDIN cannot be modified in any manner. However, there may be a situation where the document may either require certain changes or cancellation altogether. In such a situation, the UDIN may be revoked by searching for the document on the UDIN portal and clicking on ‘Revoke’.

Note that a reason for revocation will need to be provided. If the UDIN is searched for in the future, it will still appear on the portal, but the same would be displayed as ‘Revoked’.

Sonu Sood Signed by PepsiCo

Wed, 03 Jun 2020 21:48:13 +0530

Sonu Sood Signed by PepsiCo

Beverage maker PepsiCo signed actor and Bollywood man-of-the-moment Sonu Sood for a one-off Instagram campaign that centres around contactless greetings and encourages people to adhere to physical-distancing norms.

Sood, who’s been helping thousands of migrants return home during the Covid-19 crisis, has 3.2 million Instagram followers. The campaign may be taken to other platforms but details haven’t been worked out yet. A PepsiCo spokesperson confirmed the development. “Broadening of the relationship with Sonu Sood, besides this campaign, is not ruled out,” the spokesperson said.

Actor Salman Khan, who also endorses the cola, has done a similar campaign.

Other actors presently endorsing Pepsi cola are Tiger Shroff and Disha Patani.

First Big Brand Association
Sood, who acted in a few south Indian films last year, has been hailed on social media for helping migrants reach their hometowns besides supplying them meal kits and sanitisers.

Generosity of spirit makes more of an impact than sheer star power under the current circumstances, experts said.

“We are passing through a phase of anxiety when celebrities putting out videos on workouts or exotic cooking won’t resonate as well with consumers, versus someone like Sonu who is actually going out there and working with and for people. The big star is no longer all that believable,” said social commentator and brand consultant Harish Bijoor.

Business and marketing expert Lloyd Mathias, formerly marketing head for Hewlett Packard and PepsiCo, said: “There is now a need for brands to work toward a larger purpose. For Sonu, this is a good opportunity to make the leap as a leading brand endorser.”

Pepsi will be Sood’s first big brand association. “As public figures, it is our responsibility to communicate the importance of ensuring safety for ourselves and others. I am proud to partner with Pepsi on driving the message of social distancing,” said the actor who is part of the cast of Yash Raj production Prithiviraj, which is scheduled to be released this year.

The Pepsi spokesperson said the company wanted to act responsibly. “With social distancing being the new reality, we would need to re-evaluate the way we greet each other,” he said.

The ongoing social distancing campaign with Salman Khan has garnered millions of views, said the company.

An official aware of the details said the endorsement fee for Sood is modest, given that he’s not been in the league of A-listers such as the Khans. PepsiCo declined to comment on fees. Sood’s previous brand associations have been with lesser-known entities such as the government-backed Fit India Movement and fresh fruit importer IG International.

Sood’s association with Pepsi comes at a time when summer sales of soft drinks are taking a hit as Indians have been staying indoors although lockdown curbs are easing. The April-June quarter contributes more than half of the packaged beverage industry’s annual sales of over Rs 20,000 crore, of which out-of-home consumption including sales at hotels, restaurants, theatres and cineplexes and live events account for 80%. While in-home consumption has picked up, the majority out-of-home consumption sales continue to be impacted.

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How to Get Solvency Certificate from CA?

Wed, 27 May 2020 10:59:22 +0530

How to Get Solvency Certificate from CA?

What is a Solvency Certificate?

Solvency certificate is a document which provides information about the financial stability of an individual/entity. This certificate is required by the government and commercial offices to be sure about the financial position of individuals/entities. A solvency certificate is required for the following reasons:

Applying for tenders
Obtaining contracts,
Visa interviews,
Legal/court matters etc.

A solvency certificate supports the financial strength of the individual/entity.

Solvency Certificate – Sample format

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Who issues a Solvency Certificate?

Solvency certificate is generally issued by the revenue department and banks on request. Banks usually issue this certificate to their customers based on the account transactions and property documents available to them. A report from a chartered accountant attesting the financial status of the individual/entity also helps in obtaining the solvency certificate from banks. In most of the cases, the certificate obtained by the customers from their banks are used for submitting tender applications/contracts to government offices.

Documents required by a bank to issue solvency certificate
In order to gauge an individual/entity’s financial position a public sector bank will need the following documents from its customers:
Application form
Banks generally have pre-specified application forms to be filled by the customer requesting a solvency certificate.
Identity/address proof
Current address proof of the individual or the entity’s registered address proof will be required.
Bank statement (savings/current)
Banks issue such certificates only for its customers who have been transacting with the bank for a specific number of years. This period might vary from one bank to another and the bank officials will analyze the bank statements (either current/savings account) to understand the customer’s financial background. Any other loan accounts or fixed deposit accounts may also be checked in detail for this purpose.
Income tax returns
Income tax returns for a certain number of years are requested by the banks from its customers to understand their overall financial status.
Audited financial statements (companies/partnership firms)
With respect to companies/partnership firms, banks will have to assess its net worth after considering all liabilities to determine the financial stability of the entity. Audited balance sheet, profit/loss account, cash flow statements for a certain number of years will be required for this purpose.
Property documents
Properties are considered to be the preferred security by banks. Individuals and entities who own properties such as land and buildings can prove their financial status through these property documents.
Gold valuation certificate
Individuals generally hold gold in their possession which is an important security that a bank may consider while issuing a certificate. If that is the case, gold is usually valued by the bank’s in-house valuer.
Certificate of Net Worth by a Chartered Accountant
Most banks ask for a net worth statement from a Chartered Accountant to issue this certificate. A net worth certificate generally lists all the assets and liabilities of an entity till date.
Any other investment certificate
Apart from the documents listed above, customers can produce any other investment statements to the bank such as mutual funds, shares, provident fund statement, etc.
Usually, once the Bank analyses these supporting documents and is satisfied with the solvency of the individual/entity with respect to the liabilities held/to be held, it will issue the solvency certificate to the customer. However, the bank does not take any responsibility for any liability that may occur in the future based on this solvency certificate.
Generally, the Bank Manager will have restricted powers to issue only a certain number/value of solvency certificates. If, issuing the certificate is over and above the discretionary powers of the bank manager, this request will be forwarded to higher officials for approval. A solvency certificate is issued only to renowned and reliable customers and banks will levy a charge for the same.

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