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Browsing through Reconstitution and Dissolution of a Firm – CA Foundation Law Notes help students to revise the complete subject quickly.

Reconstitution and Dissolution of a Firm – CA Foundation Business Law Notes

Reconstitution of A Firm:
Incoming and outgoing Partners: The constitution of a firm may be changed by the introduction of a new partner; death, retirement, insolvency and expulsion of a partner; or by the transfer of a partner’s share to an outsider. All these are included within the term reconstitution of a firm. Upon reconstitution, the rights and liabilities of the incoming and outgoing partners have to be determined. The provisions of the Partnership Act regarding such cases are stated below.

Introduction of a New Partner (Sec. 31):
A new partner can be introduced only with the consent of all the partners. The share of profits which a new partner is entitled to get is fixed at the time he becomes a partner. He is liable for all . the debts of the firm after the date of his admission but he is not responsible for any act of the firm done before he became a partner, unless otherwise agreed. These rules do not apply to a minor becoming a partner under Sec. 30.

The incoming partner may, however, assume liability for past debts by novation that is, by tripartite agreement between (a) the creditor (b) the partners and (c) the incoming partner.

Retirement of a Partner (Sec. 32):
A partner may retire –

• with the consent of all the other partners,
• in accordance with the terms of the agreement of partnership or
• where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.

A retiring partner remains liable for the partnership debts contracted while he was a partner. He may however be discharged from any liability to any third party for acts of the firm done before his retirement by novation, if it is so agreed with the third party and the partners of the reconstituted firm. Such agreement may be implied from the course of dealing between the firm and the third party after he had knowledge of the retirement.

The retired partner continues to remain liable to third parties for all acts of the firm until public notice is given of the retirement. Such notice may be given either by the retired partner or by any member of the reconstituted firm.

A retired partner is not liable for the debts of the firm incurred after public notice of his retirement. A sleeping partner may retire without giving a public notice of his retirement because he is not known to be a partner to third parties.

Expulsion of a partner (Sec. 33):
A partner can be expelled only when the following conditions are fulfilled:

• When the contract of partnership contains a provision for expulsion under stated circumstances.
• The power to expel is exercised in good faith by the majority of the partners.
• The expelled partner has been given notice of the charges against him and has been given an opportunity to answer the charges.

The liabilities of an expelled partner for the debts of the firm are the same as those of retired partner.

Insolvency of a partner (Sec. 34):
When the partner of a firm is adjudicated an insolvent, he ceases to be a partner from the date on which the order of adjudication was passed by the court. Whether the firm is thereby dissolved or not depends on the terms of the agreement between the partners.

Death of Partners (Sec. 35):
Ordinarily the death of partner has the effect of dissolving the firm. But it is competent for the partners to agree that the firm will continue to exist even after the death of partner.

Transfer of interest (Sec. 29):
What are the Rights of Transferee of Partner’s share?
Transferee’s rights: A share in a partnership is transferable like any other property, but as the Ik partnership relationship is based on mutual confidence, the assignee of a partner’s interest by sale, mortgage or otherwise cannot enjoy the same rights and privileges as the original one (section 29 of the Partnership Act). The Supreme Court in Narayanappa v. Krishnappa( 1966) has held that the £ assignee will enjoy only the rights to receive the shares of the profits of the assignor and amount of profits agreed to by other partners.

The rights of such a transferee may be noted as follows:
(a) During the continuance of partnership:
During the continuance of partnership, such transferee is entitled to receive the share of the profits of the transferring partner. However, he is bound to accept the profits as agreed to by the partners i.e. he cannot challenge the accounts.

A transferee of a Partner’s share is not entitled:

• to interfere with the conduct of the business.
• to require accounts or
• to inspect books of the firm.

(b) On the dissolution of the firm:
On the dissolution of the firm or on the retirement of the transferring partner, the transferee will be entitled against the remaining partners:

• to receive the share of the assets of the firm to which the transferring partners was entitled.
• for the purpose of ascertaining the share, to an account as from the date of the dissolution.

Rights and liabilities of an outgoing partner:
(I) Rights of an outgoing partner – An outgoing partner possesses following rights:
(a) Right to carry on competing business – An outgoing partner has the right to carry on the business competing with that of the firm, and he may advertise such business (Sec. 36). But section 36 imposes some
restrictions on his activities in order to prevent unfair competition with the firm. The restrictions imposed upon outgoing partner are:

• he may not use firm’s name,
• he may not represent himself as carrying on the business on behalf of the firm
  or
• he may not solicit the customers or the persons who were already dealing with the firm before he left the firm. The above restrictions are subject to a contract to the contrary.

However, the firm may enter into an agreement with the retiring partner not to do competitive business, and then he will not be entitled to carry on competitive business. This agreement will not be void as it will not be treated as an agreement in restraint of trade.

(b) Right to share subsequent profit in certain cases:
As per section 37, in case the accounts of the outgoing partners continue to remain unsettled and the remaining partner continues to run the business, such a partner is entitled to receive his share of profit or interest at the rate of 6% p.a. on the amount of his share in the firm.

(II) Liabilities of an outgoing partner – These may be classified into two stages:
(a) Liability for acts done before leaving the firm:
A retiring partner is liable for the acts done and debts incurred before his retirement, but he may be exempted from this liability in case on an agreement made by him with the third party and the remaining partners of the reconstituted firm.

(b) Liability for acts done after leaving the firm:
In case of retirement of a partner, a public notice is essential to this effect. If it is not given, the retiring partner will continue to be liable to third parties for the acts of the firm even after his retirement. A public notice is not essential in case of sleeping and deceased partners who is not known to be partner, and so will not be liable for such acts.

Dissolution of Firm (Secs. 39 To 55):
Dissolution of partnership and dissolution of firm:

Modes of dissolution of firm:
A firm may be dissolved on any of the following grounds:
1. By agreement (Sec. 40):
A firm may be dissolved any time with the consent of all the partners of the firm. Partnership is created by contract, it can also be terminated by contract.

2. By Compulsory Dissolution (Sec. 41):
A firm is dissolved-

• by the adjudication of all the partners or of all the partners but one as insolvent, or
• by the happening of any event which makes the business of the firm unlawful.

3. Dissolution on the happening of certain contingencies (Sec. 42):
Subject to contract between the partners, a firm is dissolved –

• if constituted for a fixed term, by the expiry of that term
• if constituted to carry out one or more adventures of undertakings, by the completion thereof,
• by the death of a partner, and
• by the adjudication of a partner as an insolvent.

The partnership agreement may provide that the firm will not be dissolved in any of the aforementioned cases. Such a provision is valid.

4. Dissolution by notice (Sec. 43):
Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all other partners of his intention to dissolve the firm. The firm is dissolved as from the date mentioned in the notice as the date of dissolution, or, if no date is mentioned, as from the date of communication of the notice.

5. Dissolution by the Court (Sec. 44):
At the suit of a partner, the court may dissolve a firm on any one of the following grounds:
A. Insanity:
If a partner has become of unsound mind. The suit for dissolution in this case can be filed by the next friend of the insane partner or by any other partner.

B. Permanent incapacity:
If a partner becomes permanently incapable of performing his duties as a partner. Permanent incapacity may arise from an incurable illness like paralysis. The suit for dissolution in this case must be brought by a partner other than the person who has become incapable.

C. Guilty conduct:
If a partner is guilty of conduct which is likely to affect prejudicially the carrying on of the business, regard being had to the nature of the business. The suit for dissolution on the ground mentioned in this clause must be brought by a partner other than the partner who is guilty of misconduct.

D. Persistent breach of agreement:
If a partner wilfully and persistently commits breach of the partnership agreement regarding management or otherwise conducts himself in such a way that it is not reasonably practicable for the other partriers to carry on business in partnership with him.

E. Transfer of whole interest:
If a Partner has transferred the whole of his interest in the firm to an outsider or as allowed his interest to be sold in execution of a decree. Transfer of partner’s interest does not by itself dissolves the firm. But the other partners may ask the court to dissolve the firm if such a transfer occurs.

F. Loss:
If the business of the firm cannot be carried on except at a loss. Since the motive, with which partnerships are formed, is acquisition of gain, the courts have been given discretion to dissolve a firm in cases where it is impossible to make profits.

G. Just and Equitable clause:
If the court considers it just and equitable to dissolve the firm. This clause gives a discretionary power to the court to dissolve a firm in cases which do not come within any of the foregoing clauses but which are considered to be fit and proper cases for dissolution.

Consequences of dissolution:
a. Rights & liabilities of partners on dissolution (Secs. 45 to 55):
When the firm is dissolved, the business of the firm is wound up, the assets are realised to pay the debts and the surplus, if any is distributed amongst the partners. For the purposes of winding up of the firm, the partners possess certain rights and are subject to certain liabilities. These are discussed below.
1. Right to have the business wound up (Sec. 46):
On the dissolution of a firm, a partner has the right

• to have the business of the firm wound up and the debts of the firm settled out of the property of the firm.
• to have the surplus distributed among the partners according to their rights.

2. Continuing authority of partners for purpose of winding up (Sec. 47):
The partners authority to act for the firm and to bind their co-partners continues even after dissolution of the firm for the following two purposes :

• to wind up the affairs of the firm (for example recovering money from debtors).
• to complete transaction begun but unfinished at the time of the dissolution.

3. Right to share in personal profits earned after dissolution (Sec. 50):
Every partner has a right to share in any secret profits derived by any partner under any transaction carried out in the firm name or by use of the property or business connection of the firm, after the dissolution but before winding up.

4. Right to have premium returned on premature dissolution (Sec. 51):
Where a partner has paid a premium (goodwill) on entering into partnership for a fixed j term, and the firm is dissolved before the expiration of that term, he shall be entitled to repayment of the whole or a reasonable part of the premium. The amount of repayment will depend upon (a) the terms upon which he became a partner & (b) length of the time during which he was a partner.

Example:
X entered into a partnership, in a firm for a period of 10 years and paid ₹ 5,00,000 as premium. The firm was dissolved after expiration of 3 years because of the insolvency of a partner. Here, X shall be entitled to ₹ 3,50,000 (5,00,000/10 3 = 1,50,000; 5,00,000 – 1,50,000 = 3,50,000) as return of premium.

No such premium shall be paid to the partner if such premature dissolution:

• is due to death of a partner, or
• is due to his own misconduct or
• is as per agreement which contains no provision for the return of premium.

5. Rights where partnership contract is rescinded for fraud or misrepresentation (Sec. 52):
Where a partner was induced to join the firm by the fraud or misrepresentation of any other partner, the aggrieved partner has the right to rescind the partnership agreement and is entitled:
→ to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him;

→ to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm,

→ to be indemnified by the partner or partners guilty of fraud or misrepresentation against all the debts of the firm.

6. Right to restrain the use of firm name or firm property (Sec. 53):
After a firm is dissolved, every partner, may restrain any other partner:
→ from carrying on a similar business in the firm name or

→ from using any of the property of the firm for his own benefit, until the affairs of the firm have been completely wound up. However, it will not affect the right of any partner or his representative who has bought the goodwill of the firm to use the firm name.

b. Liabilities of partners on dissolution:
1. Continuing liability until public notice (Sec. 45):
If a public notice is not given of the dissolution of a firm the partners continue to be liable to third parties for any act done by any of them after dissolution.

2. Liability for continuing authority of Partners for purpose of winding up (Sec. 47):
After the dissolution of the firm, the partners continue to be liable for acts done to wind up the affairs of the firm and to complete transactions begun but unfinished at the time of the dissolution.

Mode of settlement of accounts after dissolution:
The partners may lay down their own procedure for the settlement of accounts after dissolution. In the absence of a prior agreement between the partners in this regard, the accounts may be settled in accordance with the provisions provided in sections 48, 49 and 55 of the Indian Partnership Act which are discussed below:
(i) Goodwill shall be included in the assets and it might be sold separately or along with other property of the firm.

(ii) Losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and lastly, for the balance, the partners shall individually subscribe in their profit sharing ratio.

(iii) Assets of the firm, including partners’ contributions to make deficiencies of capital, shall be applied firstly, for paying the debts of the firm to third parties, secondly if there remains any surplus, it shall be utilized in paying each partner the amount of advances given to the firm. Such payments are made in the ratio of advances made by the partners. For example, if X gives an advance of ₹ 50,000 and Y of ₹ 60,000, then the ratio of payment shall be 5:6.

thirdly, if still there remains any surplus, it shall be utilized for paying each partner rateably on account of capital. For example, the capitals of X, Y and Z have been contributed for ₹ 6,00,000, ₹ 7,00,000 and ₹ 8,00,000 respectively. Here, the proportion of capital shall be 6 : 7 : 8. and finally, the residue to be divided amongst partners in their profit sharing ratio.

(iv) In case one of the partners is insolvent and nothing is recoverable from him, then, the de-ficiency of such a partner is borne by the solvent partners in the ratio of their capitals in accordance with the rule in Garner v. Murray.

(v) Payment of firm debts and separate debts: According to Section 49 of Partnership Act, where there are debts of the firm as well as individual debts of the partners, then the following rules shall apply:
→ The property of the firm shall be first utilized in payment of the debts of the firm; and if there remains any surplus, then the share of each partner in such surplus shall be applied in payment of his individual debts, or if there is no such individual debt then his share shall be paid to him.

→ The individual property of any partner shall be applied first in the payment of his individual debts; and if there remains any surplus, it shall be utilized in the payment of the debts of the firm.

Public Notice (Sec. 72):
1. The Partnership Act requires that a public notice must be given in each of the following cases:
(a) On minor attaining majority:
A minor partner on becoming a major must give public notice of his intention to remain or not to remain a partner. [Sec. 30(5)]

(b) Retirement of a partner:
When a partner retires from the firm, he must give public notice to terminate further liability. [Sec. 32(3)]

(c) Expulsion of a partner:
When a partner is expelled from the partnership business he must give public notice to terminate further liability. [Sec. 33]

(d) Dissolution of the firm:
When a partnership firm is dissolved, the partners of the dissolved firm must give public notice to terminate further liability [Section 45(1)]

2. Mode of the Public Notice:
According to Sec. 72 the Public Notice becomes effective when the following steps have been taken:
(a) The notice has been published in the Official Gazette.

(b) The notice has been published in at least one vernacular newspaper (i.e. which is published in Indian language) circulating in the district where the concerned firm has its place or principal place of business.

(c) If the firm is registered, the notice has been sent to the Registrar of Firms.

3. Consequences of not giving public notice:
(a) On minor attaining majority:
If a minor is admitted to the benefits of partnership under Section 30 he has to give public notice within 6 months of his attaining majority or of his obtaining knowledge that he has been admitted to the benefits of partnership, whichever date is later. If he fails to give notice, that he has elected to become or not to become a partner in the firm, he shall become a partner in the firm on the expiry of the said 6 months and is liable as a partner of the firm.

(b) Retirement of a partner:
If a retiring partner does not give a public notice of the retirement from the firm under section 32, he and the other partners shall continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement.

(c) Expulsion of a partner:
If in case of expulsion of a partner from the firm a public notice is not given, the expelled partner and the other partners shall continue to be liable to third parties dealing with the firm as in the case of a retired partner. [Section 33],

(d) Dissolution of the firm:
If a public notice is not given on dissolution of a registered firm, the partners shall be liable to third persons of any act done by any of them which would have been an act of the firm if done before the dissolution (section 45).

When public notice is given of the dissolution of a firm, no partner shall have authority to bind the firm except for certain specific purposes as given in Section 47. According to this section, after the dissolution of a firm, the authority of each partner to bind the firm and their mutual rights and obligations of the partners shall continue :

• so far as may be necessary wind up the affairs of the firm
• to complete transactions begun but unfinished at the time of the dissolution.

Process of Registration Under GST: Through registration under the GST, a person who pays tax can register themselves under the GST if they are running a business. After they have successfully registered, they will receive a unique registration number. The number is unique to all taxpayers, and it is called the Goods and Services Tax Identification Number of GSTIN. The number is a 15 digit long number that the central government assigns to all taxpayers after obtaining their registration.

The Constitution of India, under Section 279A, formed the GST council. The Union finance minister, the union minister of state revenue, and the union minister of tax and finance are the group of people who form the GST council. All the respective laws and regulations that apply to GST registration for a business will be on their respective central and state websites. The law came into being on 1st July 2017 to remove all other forms of indirect taxation in the country. GST applies to all records of services and products that have been manufactured and produced in our country. It also applies to the freelancers according to the new labour law amendments.

Since GST came into being, all other forms of taxes, such as value-added tax, entertainment tax, sales tax, etc., are combined under Goods and Services tax. There is a specific percent of the amount that people charge under the GST for every step in the supply chain. Since GST registration is online, businesses would not have to go offline to make their registration under the GST.

If a person or a business operates from more than one state, they will have to get a separate registration for each operating state. We can understand if every company has to register under the GST by understanding the GST registration procedure in detail.

Who is Eligible to Register under the GST?

Suppose a person’s business supplying goods has a turnover of Rs. Forty lakhs or more in a financial year have to register as an individual taxable person. Though the threshold limit for people with businesses in the north-eastern states such as Jammu and Kashmir, Himachal Pradesh, and Uttarakhand is Rs. 10 lakhs, the turnover limit is of Rs. 20 lakh for individual category states and Rs. 10 lakh for service providers.

Certain businesses have to mandatorily register under the GST irrespective of their turnover if they belong to any of the following categories.

1. Input service distributor or ISD and Casual taxable person
2. Non-resident taxable person
3. Interstate goods and services supplier
4. Goods supplier through an eCommerce portal or online portal
5. Any category of the service provider
6. Obligation to pay tax under the reverse charge mechanism
7. Online data access and retrieval service provider
8. TDS or TCS deductor

What are the Documents People Require to Register Under the GST?

People who have to register under the GST need to have the following documents.

1. Permanent Account Number or PAN of the applicant
2. Proof of business registration or incorporation certificate
3. Copy of Aadhaar card
4. Address proof and identity of promoters and director with their recent photographs
5. Authorisation letter or a board resolution for authorised signatory
6. Bank account statement or cancelled cheque for proof
7. Digital signature

Categories of GST Registration

There are various categories of taxpayers according to their GST registration and their jobs. Here are the types of GST registrations below.

Normal Taxpayers: Normal taxpayers are the majority of businesses in India. These are the businesses whose turnover is more the Rs. Forty lakhs in one financial year. They have to register as an average taxable person. But, if the threshold limit is less than that according to their residential states, they have to register if their turnover is more than Rs. 10 lakhs.

Casual Taxable Person: If people have occasional or seasonal businesses, they can register their business under the GST for casual taxable persons. They can make a deposit that is equal to their GST liability for the occasional business operations. The tenure for them is three months, but they can apply for extensions and renewals for their businesses.

Non-residential Taxable Person: People who live outside India but occasionally supply their goods or services as agents or in other capacities to the Indian residents have to file for their business registration under this category. They need to pay a deposit equal to the standard GST liability during their GST active tenure. The typical term for such people is three months, but they can also extend or renew their registrations if they want.

Composition Registration: Suppose a business has an annual turnover of up to Rs. One crore, then they have to register under the Composition scheme. Companies have to pay a fixed amount of GST in this category regardless of their actual turnover amount.

Procedure for GST Registration

Obtaining a GST registration is easy and free. People can do it online at the comfort of their homes through the official GST portal. A taxpayer who has to register for the normal registration can visit their site and fill up form GST REG 1.

Part A

1. Step 1: Visit the GST portal.
2. Step 2: Click on the registration option under the services tab and then click on new registration, i.e., Services> Registration> New registration.
3. Step 3: The application form has two parts- part A and part B. According to the type of taxpayer from the ‘I am a’ drop-down list, people have to select the’ taxpayer’ option.
4. Step 4: Now, they have to select the state and district to which they belong to and want a registration from the ‘State/ UT and District’ drop-down list.
5. Step 5: They can enter the Legal Name of the Business in the field with the same title and enter the entity’s name according to the PAN database documents.
6. Step 6: They can input the PAN of the business or the PAN of the proprietor in the Permanent Account Number field.
7. Step 7: Next comes the email address field. They have to mention a functional email address of the primary authorised signatory.
8. Step 8: They have to input their valid mobile number if they are the primary authorised signatory.
9. Step 9: They have to enter the captcha and proceed to click on the ‘proceed’ button.
10. Step 10: Once they have completed all the above steps, they will move on to part B of the form. Here, they will receive an OTP and after inputting it, they will become verified, and their information will be saved so far. They will then receive a temporary reference number or TRN that they will receive in their registered email address and their mobile number.

Part B

1. Step 1: Click on services> Registration> New registration and then select the temporary reference number or TRN button to log into the site using the number.
2. Step 2: You have to enter the TRN you generated in the TRN field and type the captcha text you can see on the screen. After that, click on ‘proceed.’ TRN is a temporary reference number and it will not be the same after completing the process. But people need it for the next steps of registration. It is important to note it carefully.
3. Step 3: Enter the OTP you got on your mobile and email and input it on the verify OTP page and click on the ‘proceed’ button.
4. Step 4: You will be able to see the ‘My Saved Application Page,’ and you can click the action column and select the edit button.
5. Step 5: Now, you have to go to the top of the page and click on the registration application form with ten tabs opened. Then click on each of these tabs and enter the details such as business details, partner detail, authorised signatory, principal and additional places of business, goods and services details, state information, verification, and Aadhaar card authentication.
6. Step 6: Click on ‘save and continue,’ and then your application will get submitted. You have to sign it digitally using a DSC and then click to proceed.
7. Step 7: Finally, after submission, you will get an Application Reference Number or ARN in your email or phone number, and you can confirm your registration.

What is the Penalty for not Filing Under GST?

If a taxable business does not register under the GST mandatorily, then they will have to pay a penalty of 10% of the tax amount, which can be up to Rs. 10,000. Therefore, all businesses have to register under the GST mandatorily if they fall under the following categories.

1. Businesses that supply goods with a turnover of over Rs. 40 lakh in one financial year must register under the GST. If they belong to J and K, Himachal Pradesh, and Uttarakhand states, the turnover limit is Rs. 10 lakh.
2. Service providers with a turnover of Rs. 20 lakh in a financial year and Rs. 10 lakh for the special states
3. Causal table people or input service distributors or ISD: Every causal taxable person has to go for the process of GST registration.
4. Non-resident taxable people: People who are not Indians also have to register for GST if they trade their goods or services to the people of India.
5. Inter-state goods and service supplier
6. E-commerce portal supplier of goods: All eCommerce aggregator has to consider the registration of GST are a mandatory document. If such an eCommerce entity does not produce a turnover of more than Rs. 20 lakh in one financial year, then they do not have to make such a registration compulsorily.
7. Any other service provider
8. Liable to pay tax under the reverse charge mechanism: Any e-commerce entity has to apply for the GST registration but any business whose turnover is less than Rs. 20 lakh per financial year does not have to register under the GST.
9. TCS or TDS deductor
10. Online data access or retrieval service provider: Companies that provide database access or any form of streaming system to a person residing in India have to register to GST as per the requirements.

Furthermore, if a business operates in two different states, they will have to obtain separate registrations for each state of their functioning. A person can also apply for multiple registrations within a state if require. Still, the government has removed the procedure of allocating numerous registrations for different businesses to operate efficiently. Usually, a company can get multiple registrations for GST under a state if they have separate business verticals and different products from one another.

The CBIC has issued a notification stating that if a business entity does not file for the GST return, then they have to face strict penalties. The defaulter will have their back accounts attached. Furthermore, they will have to pay Rs. 100 per day of non-compliance according to CGST and SGST. Any delay will lead to Rs. 200 fine according to Section 122 of the CGST Act for non-compliance. Other strict penalties can also apply according to their situation.

Benefits of Registering Under the GST

There are multiple benefits of registering under the GST, which are applicable for regular registered businesses such as the following.

1. Operate business without restrictions in various states.
2. Can avail of input tax credit
3. The benefits for composition dealers if they register under the GST are as follows.
4. Lower impact on working capital
5. Limited compliance as compared to other categories of taxpayers
6. The benefits for businesses that have voluntarily opted in for GST registration are as follows.
7. Operate business without restrictions in various states
8. Can avail of the input tax credit
9. Competitive advantages in comparison to other businesses.

On the other hand, businesses registered with the GST can avail of other benefits as well. They will get recognised as an official business entity in the eyes of the law. The public and the consumers can also recognise them as a legal business. They will get appropriate accounting cycles, other governmental incentives, lower tax rates, double taxation, reliefs and exemptions from double taxations, e-way bills, and much more. It is best for business owners to register themselves under the GST.

What is ITC under the GST Regime?

ITC or input tax credit can allow a business person to pay less on taxes on their inputs of a specific amount of products. They will get benefits since they will have to pay reduced tax liabilities on the products.

Therefore when a business usually buys some form of product, they would have to pay a specific amount of tax when they receive the product from the seller who has a GST registration. When the business pays the fixed amount of tax, they can add the same to the taxes they spent at the time of purchase. Hence, ITC allows the registered business to consider adjustments on taxes.

Tax Rates for GST Registration

The government has brought out various tax rates for the GST registration. They can change according to the requirements of the government. But here is the complete list of the GST tax rates that the government can levy as follows.

1. Bare Necessities: The government does not levy any tax or GST for basic necessities and amenities.
2. Household Necessities and drugs: People have to pay a 5% tax on basic household necessities and medicines.
3. Computer products and processed foods: The government levies a rate of 12% from such products.
4. Hair oil, raw materials, capital goods, and other forms of industrial products: On such items, people have to pay an 18% tax on consumer goods and capital goods. These are required for various industrial processing.
5. Luxury items: It has the highest rate of tax. People have to pay a 28% tax for luxury goods. These can be cars and other products that fall under this category.

Prathama Bank Personal Loan: Prathama Bank is a Gramin Bank in India established on 02-10-1975. It has headquartered in Moradabad. Its operational area is in a Total of 20 districts. It is the first Regional Rural Bank of India. Syndicate sponsors it. It was first established on the 2nd of October in 1975. Its new name is Gramin Bank. The government of India owns 50% of the Prathama UP Gramin Bank. Further, you will get to know the process of getting a loan from Prathama bank.

Want to compare Prathama Bank Personal Loan with other bank personal loans for lowest interest rates and extra offerings? Just keep an eye on our Complete Guide on Personal Loan & choose the suitable bank to apply for the loan.

Prathama Bank

Prathama Bank Personal Loan Details

• To get a personal loan from Prathama Bank, your age should be from 21 to 58 years.
• In Prathama Bank, the interest rate is 9.99 % annually.
• The period of tenure in Prathama Bank is from 12 to 60 months.
• The processing fee for a personal loan in Prathama Bank is from 1% to 2% of the total personal loan amount.
• The prepayment charges and part payment charges of the personal loans are decided by the bank only.
• The minimum loan amount is 5000, and the maximum loan amount is up to rupees 10 lacs.

Prathama Bank Personal Loan Eligibility Criteria

• The CIBIL score should be 750 or above.
• The IIT requirement is from 21 to 58 years.
• The minimum income should be from rupees 15000 to rupees 25000.
• The person should be salaried, self-employed for a pensioner

Prathama Bank Personal Loan Interest Rates and Charges

• The personal loan interest rate in Prathama Bank is 9.99 % annually.
• Processing charges of personal loans in Patna bank is 1% to 2%.

Prathama Bank Personal Loan Documentation Required

Identity proof:-

• Copy of passport
• Copy of driving license
• Copy of Aadhar card
• Copy of voter ID card

Address proof:-

• Utility bill
• Permanent residence proof
• Ration card, statement of bank account, latest credit card statement

Income proof:-

• Salary slip of last six months
• Bank statement of past three months

Why Should You Apply for Personal Loans in Prathama Bank with the Help Of A Databank?

• It is the leading and best help all over India.
• The processing requires very little documentation.
• It provides very fast approval.

Calculating EMI Personal Loan on Prathama Bank

To calculate EMI personal loan on Prathama BanTo following requirements are listed below:-

• Loan amount
• Interest rate
• Tenure
• Put all these values in the EMI calculator and find your monthly EMI.

Processing Time for Personal Loan on Prathama Bank

Following are the features of processing in Prathama Bank of personal loans.

• Quick processing
• No paperwork required
• The processing fee can be varied, and you can be asked about the processing fees details by the bank

Overdraft Facility of Personal Loan by Prathama Bank

Credit office is once an individual overdraft, and you can put an all-out when required. At whatever condition, the ideal point is you have to Reimburse. At present, it is the most credit choice and is advised by everyone and favorite of the individual necessities and fulfills their demands.

Prathama Bank Different Loan Fulfills

Loan of the home

• Personal loans provided by the pragma banks for houses are listed below:-
• 21 years is the minimum age requirement
• 60 years is the maximum age requirement
• For the home loans, regular income applicants are mandatory
• You should on more than the required monthly income of the home loan

Given below are the personal loans for the person working in a government sector

Loan of education

• The bank provides you education loans
• The amount of the loan should be more than rupees 4 lacs
• The interest rate that doctor banks provide is 11 % to 13 %

Pensioners personal loan

• Banks can ask dog customers about the processing charge.
• The interest rate is very affordable in Prathama Bank.

Balance transfer of personal loan

• It means that the borrower transferred the amount to another institution.
• The interest rate is very minimal.
• Payments have a long tenure.

Personal Loan Top Up in Prathama Bank

There is an additional amount on the existing loan on the Prathama Bank personal loan top-up.

Prathama Bank Personal Loan Status

You can visit the site of the Prathama Bank.

• Eligibility should be checked.
• The form should be filled with your information.
• The managers of the Prathama Bank will contact you.

Prathama Bank Personal Loan Types

Loan of home renovation

For the people who wish to get their homes revamped, Prathama Bank provides a special offer. Through this, the individual can get new settlements or any other kind of development in installments with credit support.

Following given are some of the vital highlights of Prathama Bank:

Prathama Bank renovation home Lowes is as low as 11.25%.

To get their home remodeled, people can get an advanced sum up to rupees 2remodelled. No documentation is required for the home run in the Prathama Bank, which makes the whole process worry-free.

Once the bank offers you the application, you will get your advance credit within the time limit of 72 hours or three days.

Holiday loan

Prathama Bank provides you with a holiday loan that can assist you and organize your fantasy, but there is a minor issue.

Now, what’s the issue?

Prathama Bank and subsidize or scope of one’s individuals related to lodging, booking cost, etc. Following given are the key highlights of the Prathama Bank Holiday loan listed below:-

11.25% per annum is the financial cost starting for a holiday loan.

You can enjoy your holiday without much of the profitable stretch of the measure up to rupees 20 lacs.

Financing is basic and straightforward, and this guarantees minimal documentation and is streamlined.

It is added to your record straightforwardly.

Funding of the fresher

The fresher funding in the Prathama Bank is a special design fresher funding that helps the customer in many ways. For example, for their first work it ongoing aluminum following are the major highlights of the Pra Aluminium funding pressure are given below

1.5 Lakh is the credit sum

The candidate must be at the age of 21 years

Personal loan of NRI

By seeing the necessities of one individual. Prathama Bank has a very good offer according to an individual advance explicitly for NRIs.

The bank offers a very flexible amount of rupees 10 lakh with adaptability and the use of NIRs.

15.49% per annum is the start of a personal loan of NRI.

How Should You Apply for A Personal Loan in Prathama Bank?

There is so much less or little requirement of paper, so there is a very much minimal amount of documentation required in Prathama Bank.

This benefits the one individual to save your time and get your loans As Quick As Possible in Prathama Bank. for a personal loan is very simple following are the steps given below you can follow to apply for the personal loan:-

You can visit the database website, fill the application form, and give you all the information.

You can call yourself from the Prathama Bank to get a personal loan.

The instructor of Prathama Bank will guide you throughout the entire process of personal loan and tell you every detail regarding the personal loan that is applied for the personal loan in Prathama Bank.