Letter for GST not Applicable

Goods and Service Tax is the indirect tax that is levied on supply of goods and services in India. It is a multistage and comprehensive tax. As per the rules and regulations, there are different kinds of companies which fall under the exempted category of GST and therefore, GST is not applicable on them. In such a scenario, the need for writing a letter for GST not applicable surfaces.

In this post, we bring to you a sample Letter for GST not application. If you fall in the category which exempts you from GST then you can use this letter format as the base for creating a customized draft.

Letter for GST not Applicable Format

From,

Ravikant Sharma

Ajanta Dry Fruits Pvt. Ltd.

New Delhi

Date: 1st January, 2020

To,

The Manager,

Seven Seas Pvt. Ltd.

Delhi

Sub: GST Not Applicable

Dear Sir,

We are writing this letter to inform you that the products sold by Ajanta Dry Fruits Pvt. Ltd. fall outside the purview of GST. Dry fruits fall under the exempted category of GST and therefore, GST is not applicable on it.

We are sharing this information for your records as all your purchases with Ajanta Dry Fruits Pvt. Ltd. will be without GST. For any further clarifications on the same, please feel free to get in touch with us.

Sincerely,

Ravikant Sharma

Manager

Ajanta Dry Fruits Pvt. Ltd.

Check Here to download Letter for GST Not Applicable in Word Format

 

Application Letter for Loan Date Extension

Many of us have taken loans from bank but sometimes we are unable to repay them on time because of various reasons. In such a scenario, intimating the bank of the same in a formal way by writing application letter for loan date extension is the right thing to do. With a request letter for extension of payment, you are expressing you clear intensions and you are requesting some more time. You can submit a loan extension request letter to avoid any charges for late payment as well.

In this post, we bring a formal sample application to request for loan extension. Use the letter to bank for loan date extension to create a customized letter that states you condition to the bank in a professional manner.

Sample Application Letter to Request for Loan Date Extension

From,

Ramakant Sharma

78, Giridhar Apartments,

Karol Bagh,

Delhi

Date: December 3rd, 2019

To,

The Bank Manager

KGPG Bank,

Delhi

Sub: Request for Loan Date Extension

Dear Sir,

I hold a savings account with your prestigious bank at your Karol Bagh Branch, bearing account number 011/59596. I also have an auto loan running with your bank of amount Rs.5,00,000 with loan account number 05/78946. As per the terms of the loan, on 5th of every month, an amount of Rs. 15,000 is deducted from my account.

I would like to bring to your notice that due to the delay in my salary for the last month, I do not have enough balance in my account to honour the payment. My salary will be credited to my account on December 10th, 2019 and after that my account will have enough balance to pay the instalment for this month.

I request you to please consider my situation and accept this application for loan date extension for this month. I understand that delay in paying installments against loan attracts charges and therefore, I request you to please waive off these charges and have the instalment amount debited on the 10th of this month, instead of 5th.

I have a long association with your bank and I have always been prompt with my payments. It is just for this time that I request you to please allow me the date extension for loan based on my account history.

Thanking you in anticipation for considering my request.

Sincerely,

Ramakant Sharma

Click Here to Download Application Letter for Loan Date Extension in Word Format

 

What is HUF and Format for Declaration for Creation of HUF?

HUF or Hindu Undivided Family is a legal entity which can be formed by Hindu family by the family members coming together and putting together the assets. Other than Hindus, Sikhs, Jains and Buddhists can also form a HUF.

The roots of HUF go back into the Hindu Law. It consists of males of a family lineally descending from a common ancestor. The members of the family are not restricted just to sons but also includes unmarried daughters and the spouses of the sons. Because of its unique nature, the HUF’s relations merge from the status and not from any legal contracts.

Though HUF is automatically created at the time of marriage but businessmen use it for saving taxes and because of lesser requirements for compliance that help them with smoother working. Another important thing to note here is that a HUF is taxed separately from the members of HUF.

Prerequisites to Form HUF

Compliance with the understated requirements is must in order to have a HUF:

  • Name

It should have a name because HUF is a separate entity, it should have a name.

  • Capital

Ancestral property, assets received through will, assets gifted by friends or relatives can be used to form HUF because capital is an important prerequisite for setting up any business entity.

  • Members and Their Religion

Only a Hindu, Jain, Sikh or Buddhist married couple can form a HUF whose child or children will be integrated into it after the birth. There is a Karta (the male head with decision making responsibility), coparceners (who are entitled to share of property) and members. On death of sole male member in the family, the existing female members will continue with functioning of HUF. And an adopted child can become a member but not a coparcener.

  • HUF Deed

Formation of HUF doesn’t depend upon a legal deed but having a deed is a legal proof that the entity exists. It should include a declaration by family member along with name and authority of Karta, capital invested in forming HUF etc.

  • Separate PAN and Bank Account

Under Form 49A, application for PAN for HUF can be submitted. This requires HUF deed and is important for financial transactions, filing ITRs and claiming deductions. PAN and ITRs have signatures of Karta. Likewise, a separate bank account of HUF is must to maintain funds which must only be required for business purpose.

Use the format for Declaration for Creation of HUF to form your own HUF. Easy to download declaration for HUF in MS Word format for families to have a well-formed HUF which can be used for carrying out business and saving on taxes.

Click Here to Download Format for Declaration for Creation of HUF

 

Convert Residential to Commercial Property Letter

If you have a question that can a commercial property be converted into residential or vice versa then the answer is yes. If you have a residential property with commercial use then you can always convert it into a commercial property to make sure that it adds on to your earnings. To begin the process, you need to write a convert residential to commercial property letter to the municipal corporation of your city or area. Application to convert residential to commercial property must be precise and should include the reason for commercial property conversion.

Shared below is a sample Application of Conversion from Residential to Commercial Property. Use this letter for business in residential property without hassles.

Format for Converting Residential Property to Commercial Property

Date: November 13th, 2019

To,

The Municipal Officer

Jaipur Nagar Nigam

Jaipur

Sub: Application to Convert Residential Property to Commercial

Respected Sir,

I am writing this letter to request you to please accept my application for converting my residential building into a commercial one.

My building is located close to New Atish Market, Mansarovar, Jaipur. I had constructed this residential complex with an intention to have an additional income but due to increased commercial activities in that area, there are no residential buildings in proximity and no families are keen on staying in this area. Because this building is a residential one, there are hardly any occupants in the building. On the contrary, there are many companies interested to take a space on rent in the building for commercial purpose.

I am aware that in order to convert a residential property into a commercial one, there are some laws that are to be followed. Therefore, I am writing this application for conversion so that I can rent it out to companies for commercial use and have some income generating from it.

I request you to please consider my application and grant me a certificate for conversion. For any further details, please contact me at 9898989898. Please feel free to visit the building for inspection.

Thanking you.

Sincerely,

Amit Gupta

Click Here to Download Convert Residential to Commercial Property Letter

 

Latest Company Law Compliance for a Director to Know

Whether a person is a director in one or more company or simply holds a DIN, he is suppose to be aware of the newest compliances shared below which put the onus of compliance in association with the director or the company on his shoulders in a direct or indirect manner. Therefore, as the director, he needs to keep in mind the compliances stated below to stay safe from any complications later on.

Compliances Every Director Should Know

Here is the list of compliances a director has to be aware of:

1. DIR- 3KYC

  • Directors holding DIN as on March 31st, 2018 were needed to file the DIR- 3KYC form.
  • As per MCA, all the DIN holders are required to annually file DIR- 3KYC.
  • Presently, the DIR- 3KYC forms available on the portal do not cater to DINs.
  • You will be able to download revised forms shortly from the portal.
  • This form will be required to fill by all the DIN holders within duration of 30 days of deployment.
  • All the DIN holders will need to file KYC form.
  • All the DIN holders who fall under “Deactivated due to non-filing of DIR- 3 KYC” will also need to get their DINs activated.

2. ACTIVE e-form INC-22A

  • The date to file INC-22A was April 25th, 2019 earlier but later it was extended to June 15th, 2019.
  • All the companies which have been incorporated on or before December 31st, 2017 will need to fill INC-22A.
  • For companies who fail to fill ACTIVE or Form 22A before the extended date then that company will be marked ACTIVE non-complaint.
  • In this situation, company will not be able to bring about any changes such as Changes in authorized capital (Form SH-07); Amalgamation or Merger (INC-28); Changes in paid-up capital (Form PAS-03), Changes in Registered Office (Form INC-22), Changes in Director (Form DIR-12) (cessation would be allowed).

3. MSME Form

  • All those companies which are getting supplies from MSMEs in form of goods or services are suppose to report and file MSME form -1.
  • This form is required to be filled in case of the payment for procurement has exceeded duration of 45 days counting from the date of receiving the supplies.
  • This form was made available on the portal from May 1st, 2019 and the late date to fill this form will be May 31st, 2019.
  • In case of failure to fill the form, a fine of up to Rs. 25,000 will be required to pay by the company.
  • Directors may also have to face an imprisonment of 6 months and fine ranging from Rs. 25,000 to 3,00,000.
  • To avoid such a situation, companies must clearly state the status of their creditors and also report balances in MSME forms.

These are the three forms which every director should be aware of in order to avoid attracting any penalties.