An Getax Business advisory determines your requirement for the certification and connects you with a Chartered Accountant .
The Chartered Accountant reviews your documents and gets all him doubts clarification
Based on the findings, the Chartered Accountant prepares a certificate and certifies the same, based on the information provided.
What is the process to obtain a turnover certificate?
“Certificate” is an official document which attests a fact. Certificate can be needed to attest any basic fact such as Date of Birth, Marriage, Death etc. or it can be required to attest any critical facts like Medical status of a person, Financial figures, Achievement in any course or training etc.
Every section of the society including individuals, partnerships, corporate entities, or business entities has an indispensable need of certification from CA/CS Or other professionals under various statutes, rules, regulations, procedure in India and abroad.
This is considered to be one of the most comprehensive and essential services rendered.
Certification and Attestation can be carried out under various categories and there is no exhaustive list for that. However, following are few common areas where certificate from professionals is mandatory :
Certification under the Income Tax Act 1961
Certificate under GST Law
Certificate under Company Law
Certification for LIC, passport, credit card, etc
Documents for banking related requirement
Net worth Certification
Attestation and certification under various other laws
Apart from statutes, certificates from Chartered Accountants can be required by various other persons to authenticate correctness of facts such as Turnover certificate required in government tenders.
1. Certificates which are issued on the basis of financial statements and books of accounts namely:
Capital Contribution Certificate
Gross Turnover Certificate
Sundry Debtors Certificate
Closing Stock Certificate
Statutory Liabilities Certificate
2. Certificates which forms the basis of statutory records mandatory to be maintained under several laws such as the Companies Act 2013
3. Certificates under the ambit of merger and demerger
Fair Value Certificate for Shares
Buy-Back of Shares
Allotment of Shares
Transfer of Shares from Resident to Non-Resident and Vice Versa.
4. Form 15 CB is the certification issued under Income Tax Act, 1961 to determine liability of payer to deduct on TDS on payment made to non-residents.
5.Net worth Certificate. The major purpose of issuing this certificate being:
For Bank Finances
For Bank Guarantees
Issuance for Visa
Student Study Loan
Some governmental tenders
6. Section 92 of the Income Tax Act 1961, requires a certification to determine arm’s length price of underlying transaction
7. Fund utilization or Grant utilization certificates are also required by the following clients:
Non Governmental organizations
Statutory bodies
Autonomous bodies
Charitable organizations
8. Deductions claimed under section 80IA, 80IB, 10A or 10B of the Income tax Act 1961 also requires certification to ensure that the concerned person complies with other requirements of statute
Claim for refund under GST Act or other Indirect tax laws can be done only after it is certified by a chartered accountant.
Exchange Control Legislation requires a certification for imports, ECB, EOU, DGFT, remittances, etc.
Companies planning for initial public issue needs several certificates.
Privilege and limitation certificates described under different laws and regulations.
Transfer Pricing certificate.
Certificate for different exemptions under federal tax regulations.
The above list is not all conclusive and exhaustive. TAXAJ has been undertaking certification work with an aim to fulfill the several needs of the client efficiently.
A turnover certificate is a factual statement that certifies the turnover of the entity based on the requirements. The turnover certificate in India assures the users that the turnover generated by the business entity during a specific period. A turnover certificate is issued by the Chartered Accountant. This certificate certifies the total turnover of the applicant’s organization.
The turnover can be for 1 or more years depending on the requirements. This turnover is in the name of the organization’s applicant and not that of a group or sister organization.
The contents of the turnover certificate in India will depend on the requirements and the purpose for which the turnover certificate is being produced. A basic turnover certificate includes the following information:
Name and details of the business entity
Registration details
Period for which the turnover is stated
Purpose of the turnover certificate
Details of the practicing professional
UDIN
Any other information as required.
The process to obtain a turnover certificate in India is very simple :
Submit the documents as per the Checklist
Documents are verified by the CA
A Draft copy of the turnover certificate is shared
Once the draft is approved a final certified copy is issued by the Chartered Accountant
A turnover certificate is required by anybody willing to get an assurance on the turnover of the entity in speculation. Here are some cases where the turnover certificate might be required.
For participating in tenders issued by the various companies, local authorities, and also institutes.
It is also required in the banks and the financial institution for loan purposes.
Also required by investors to fund an existing or new project/business.
The turnover certificate in India is a certificate that provides an assurance certificate to the user about the turnover of a business entity. It is issued by a practicing Chartered Accountant who is specializing in issuing the turnover certificate.
Net worth of an individual or an Enterprise is the total assets of the individual or Enterprise less total liabilities. Net worth thus gives a good indication of the total financial worth of a person at a point in time. Positive net worth that is growing year on year shows good financial health; conversely, a negative net worth or net worth decreasing year on year shows poor financial health. Net worth is used as an indicator of financial health in various processes.
Net worth certificate is a document that is compiled and certified usually by a Chartered Accountant taking into consideration all the assets and liabilities of the individual or Enterprise. Net worth Certificate maybe required as a part of an application for the decision maker to gauge the financial health of the applicant. Net worth certificate from a Chartered Accountant is commonly required as a part of visa application, bank loan application, franchisee application and more. Want to obtain a net worth certificate? An IndiaFilings Business Expert can help you obtain a Net Worth Certificate from a Chartered Accountant near you.
During a visa application process, net worth certificates are requested to determine the financial net worth of the visa applicant.
During a bank loan application process, net worth certificates are requested to determine the financial worth of the loan applicant.
During a franchisee application process, net worth certificates are requested by the franchisor to determine the financial net worth of the franchisee.
Net worth is used as an indicator of financial health in various processes. Net worth certificate is a document that is compiled and certified usually by a Chartered Accountant taking into consideration all the assets and liabilities of the individual or Enterprise.
Personal KYC Document Required for Networth Certificate
ID Proof: PAN Card / Aadhar Card / Driving License / Voter ID Card / Passport.
Address Proof: Aadhar Card / Voter ID Card / Passport / Bank Statement or Passbook / Electricity Bill / Tax Bill / ITR / Property Index Copy etc.
Mobile No/ Email ID
The following are movable assets that are needed to obtain a net worth certificate.
1. Fixed assets: These include assets like buildings, computer equipment, land, and furniture.
2. Intangible assets: For example, goodwill, brand recognition, and copyright.
3. Investment detail: include investments in stocks and bonds, mutual funds, etc.
4. Capital of Business: The financial resources that are available to the business
5. Vehicles: These include information about the cars or vehicles in which the company is involved
6. Pledged securities: These include promissory notes, stock certificates, and the like
7. Bank Balance: The account's ending balance of cash at the end of the day.
Chartered Accountants (CAs) are only qualified to certify net worth certificates for visas in India. It is necessary to quote the UDIN (Unique Document Identification Number) produced by the Chartered Accountant duly generated to verify the authenticity of a Net worth Certificate online. Moreover, the CA's seal, signature, and the date and location of the signature are required.
The net worth certificate usually contains the values of movable and immovable assets.
Bungalow or Plot
Apartments or Flats for Residence
Office or Commercial Spaces etc
Agriculture Land or other Land
Any furniture available etc.
Assets or Other Immovable Property
Money in the bank, FDs, mutual funds, shares, etc.
Vehicles (cars, bicycles, buses, planes, etc.)
Ornaments made of gold, diamonds, metal, etc.
Various debts, stocks, and assets valuation at book value.
The value of life insurance, investments, etc., at the time of death
Form 15CA is a Declaration of Remitter and is considered as a tool for collecting information in lieu of payments that are chargeable for tax in the hands of recipient non-resident of India. This is starting of an effective Information Processing System which may be utilized by the Income-tax Department to freely track the foreign remittances and their source to determine tax liability.
Financial Institutions are now more vigilant in seeking such Forms before remittance is effected since now as per revised Rule 37BB a duty is implied on them to furnish Form 15CA received from remitters to an income-tax authority for the uses of any proceedings under the Income-tax Act.
Yes, the form is required to fill for any non-resident but for some certain conditions if prevailed. Those conditions can be easily understood by the following sentence:- “(To be filled up if the remittance is chargeable to tax and does not exceed fifty thousand rupees and the aggregate of such remittances made during the financial year does not exceed two lakh fifty thousand rupees)”
Therefore it appears clear that Form 15CA is not required to be filled if the remittance/ payment to a non-resident are not chargeable to tax.
The Primary key Transformation of Forms 15CA and 15CB
Taxpayers are not needed as of now to assign the same CA for several 15 CA /CB submissions annually. Appointment of CA for Form 15CB is a single-time activity for a certain Financial year.
Once a particular Assignment is accomplished in the year, a CA can begin Form 15CB for a certain Remittee & Remitter without the need of the taxpayer to fill Part – C of the Form 15CA and assigning it to CA throughout the year. The prior practice of various acceptance/rejection for each from is dragged to simplifying the process.
Now, CA can access Form the 15CB from the file Income Tax Forms functionality for filing alternately of Worklist for your action.
Offline / Bulk Mode of the consent method is allowed since 4th Oct. The taxpayer can initiate XML files using the Java-based offline Services that are open on the portal in the ‘Download’ section under the ‘Income -tax Forms’ page and upload the similar in the portal for further filings. The new online procedure will follow soon the portal.
Form 15CA is segregated into sections based on different situations. The remitter needs to go through the form and fill in proper details in the relevant section:
Parts of Form 15CA
Part A – Section A of Form 15CA is filled in by the remitter when the payment or the total sum of the payment extended by the remitter to the NRI recipient during a particular Financial Year is Rs. 5 Lakhs or less.
Part B – Section B of Form 15CA is in the role when such payments are more than Rs. 5 Lakhs. Information is entered by the filer in Section B after acquiring a certificate from the Assessing Officer (valid under section 197) or the order from the Assessing Officer (valid under sub-section (2) or sub-section (3) of section 195).
Part C – If such payments made during a particular FY exceed Rs. 5 Lakhs, the related information has to be entered in Section C of Form 15CA after acquiring the Tax Determination Certificate or Form 15CB from authorized CA (valid under sub-section (2) of section 288).
Part D – Payments made by the remitter during a particular FY which is not referred to in sub-section 37BB or in other words is not taxable under law, the information related to such payments is to be entered in Section D of Form 15CA.
Note: Form 15CB is required to be filled only when the remittance exceeds Rs 5 Lakh in the said fiscal under the income tax act 1961.
Form 15CB liability can be ascertained and certified by obtaining the Certificate from a Chartered Accountant in Form no. 15CB. This certificate has been prescribed under Section 195(6) of the Income-tax Act and is an alternate channel of obtaining Tax clearance apart from the Certificate from the Assessing Officer.
Remitter’s Name
Remitter’s Address
Remitter’s PAN Number
Principal Place of Business of the Remitter
E-Mail Address and Phone No. Of Remitter
Status of the Remitter (Firm/Company/Other)
Name and Status of the Remittee
Remitter’s Address
Nationality of the Remittee i.e. Place Where Remittance Is Made
Business Portfolio of the Remittee
Principal Place of the Remittance
Country to Which Remittance Is Made
Currency in Which Remittance Is Made
Amount of Remittance in Indian Currency
Proposed Date of Remittance
Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
Name of Bank of the Remitter
Name of Branch of the Bank
BSR Code of the Bank
. Father’s Name of the Signing Person
Designation Of The Signing Person
List of Documents Required for 15CA-15CB-Ccertificate
Copy of PAN card
Address of payer and receiver
Backup such as invoice for payment being made
Bank Account Details from where payment being made
Bank Branch Address from where payment is being made
Declaration form as a backup for NO permanent establishment (PE) in India, if applicable
DSC of the remitter (if remittance limit is above certain limit)
Email ID and Contact number of the person making payment