GJM & Co.

What is Tax Audit? – Untangling the Mystery   A lot of new age businessmen or entrepreneurs have this curiosity often as to what is tax audit.   It’s a term that often worries young start-ups and they are concerned about its applicability when growing a business.   The fact is that the income tax rules in India circling tax audit are complex indeed and that is the reason even some seasoned business owners fail to till date to understand its applicability.   In this article however we shall try to untangle and simplify the answer to today’s question.   We shall also discuss about its objectives, its applicability and consequence to failure in completing the same, if applicable. Before we go into – What is tax audit? Let’s understand what an audit is in general with respect to business finances and financials.   Dictionary wise an audit is an official inspection of an organization’s accounts which is summarized, commented and opined upon through a report,...

How to form a Private Limited Company in India? As new ideas to do business keep emerging, the importance of having the right form of business entity becomes a crucial element prior to initiating any commercial activity.  Indian laws offer a wide and complex variety of vehicles to do business like Sole-proprietorships, Hindu undivided families (HUF), Partnerships, Limited liability partnerships, Private limited companies and Public limited companies.  The choice of your business entity form depends on the volume, scale, complexities and parties involved and one must do a thorough analysis beforehand to determine the choice to be opted for as changing business entity form of an ongoing business at later stages, although doable, can be cumbersome.  It is best to consult a Chartered Accountant firm and discuss your business plans to help arrive at the right decision. In today’s article, we shall deal briefly with the formational aspects of a Private limited company in India...