Clarification regarding employers post hiring rules and regulations

656 votes

Sir,
With regards to the clarification sought, please note the following:

For the formation of the Pvt Ltd. Co., the following are the requirements:

1. Digital signature of Two Directors
2. Director Identification Number
3. Obtain Name approval from Registrar of Companies (ROC)
4. Register under ROC (Company formation)
5. Memorandum and Article of Association
6. Notary and Stamp duty payment
7. GST Registration
8. Shops and Establishment Registration
9. PAN (Permanent Account Number)
10. TAN (Tax Deduction and Collection Account Number)
11. Professional Tax Registration (Employee, if salary exceeds Rs.15000/- pm)
12. Professional Tax Registration (Employer)

As regards the hiring of the employees, the following may be noted:

a. Income Tax:
Since you are paying them less than Rs.2 lac/pa, they are below the taxable limit as per the Income Tax Act and hence there is no requirement of paying any tax. However, on a personal front the employees can obtain their PAN cards.

b. Profession Tax:
Salary upto Rs.15,000/- p.m. PT Nil
Salary Rs.15001/- and above PT Rs.200/- p.m.



Please revert for any further clarifications.

Regards,

Advocate Ashok A. Deshpande LawRato

803 votes

GST AND Income tax as applicable slab. Strict labour laws are not applicable. However, if you can apply under start up schemes, you get some exemptions even on tax for a few years. The best place to visit would be a chartered accountants office.

LawRato LawRato