Compliance for branch

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Pravin Prajapat (Querist)

14 January 2013 Plz any one can tell me about the Compliance require for Branch engaging in Jewellery Business.
Situation is this that A XYZ Ltd. Company having its Head Office in Kalkatta and now it Opened a Branch in Maharashtra (Interstate Branch).
So...I want to know that
1. what are the Provision under Income Tax
Act (Like... for Audit....For
TDS....etc..)
2. Under Service Tax
3. Under MVAT

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 January 2013 For Branch Audit -
As per Section 228 of the Companies Act
(1) Where a company has a branch office, the accounts of that office shall,[be audited by the company’s auditor appointed under section 224 or by a person qualified for appointment as auditor of the company under section 226,

(2) Where the accounts of any branch office are audited by a person other than the company’s auditor the company’s auditor—

(a) shall be entitled to visit the branch office, if he deems it necessary to do so for the performance of has duties as auditor, and

(b) shall have a right of access at all times to the books and accounts and vouchers of the company maintained at the branch office:
.
TDS: Separate TAN of Branch may be applied
.
Service tax No of the Branch: PAN based Service Tax No is required to be applied.
.
Application for MVAT and CST is required to be made.

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Pravin Prajapat

Pravin Prajapat (Querist)

14 January 2013 Thank you Sir .....and Let me cleared about the Audit Provision that When the Branch should have to be got Audited its Account..?
Its Compulsory for Audit or based on turnover etc. ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 January 2013 Turnover Based provisions are under the Income Tax Act. Where as in case of a company, compulsory audit is required under the Companies Act. I wish your branch should be get audited under both the statutes.
.

Pravin Prajapat

Pravin Prajapat (Querist)

14 January 2013 Means the Branch has to be Considered as Separate Entity and nothing to get merge with the Head Office for Compliance under Several Act(Law)...?

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