Under SEBI (Alternative Investment Funds) Regulations 2012, “Angel Fund” is a sub-class of Venture Capital Fund under Category I Alternative Investment Fund that raises stores from angel investors and puts resources into agreement with the arrangements of Chapter III-An of AIF Regulations. AIFs which put resources into start-up or early stage endeavours or social endeavours or SMEs or foundation or different segments or territories which the governments consider as socially or financially alluring are classification I AIFs.
If there should arise an occurrence of an angel funding, it might just raise supports by method for issue of units to angel investors. Under the AIF Regulations, “angel investor” implies any individual who proposes to put resources into an angel fund and fulfils one of the accompanying conditions, to be specific,
(a) an individual financial specialist who has net unmistakable resources of no less than two crore rupees barring estimation of his key home, and who:
(i) has early stage investment experience,
or, (ii) has involvement as a serial entrepreneur,
or, (iii) is a senior administration proficient with no less than ten years of experience;
(‘Early stage investment experience’ might mean related knowledge in putting resources into start-up or rising or early-organize endeavours and ‘serial entrepreneur’ should mean a man who has advanced or co-advanced more than one start-up wander.)
(b) a body corporate with a total asset of no less than ten crore rupees;
(c) an AIF enrolled under these controls or a VCF enlisted under the SEBI (Venture Capital Funds) Regulations, 1996. Angel funds might acknowledge, up to a most extreme time of 3 years, a venture of at the very least 25 lakh from an angel investor.
An AIF under the SEBI (Alternative Investment Funds) Regulations, 2012 can be built up or consolidated as a trust or a company or a limited liability partnership or a body corporate. No plan of an AIF (other than angel funding) might have more than 1000 speculators. Nonetheless, if there should arise an occurrence of an angel funding, no plan might have more than forty-nine angel investors. In the event of an angel funding, it should have a corpus of no less than ten crore rupees.
Angel funds are required to submit reports to SEBI on a quarterly premise. At present, all AIFs should send reports to SEBI by email to firstname.lastname@example.org. No physical reports are required to be documented with SEBI. The reports are required to be submitted inside 7 schedule days from the end of quarter/end of month as the case possibly.
Be that as it may, in November 2016, a large portion of the old tenets and directions were changed by SEBI. The accompanying changes were made:
- i) Upper limit for number of angel investors in a plan is expanded from forty nine to two hundred.
- ii) The meaning of startup for Angel Funds ventures will be like meaning of DIPP as given in their startup arrangement. As needs be, Angel Funds will be permitted to put resources into new businesses incorporated within five years, which was prior three years.
iii) The necessities of least investment sum by an Angel Fund in any investment undertaking is lessened from Rs. 50 lakh to Rs. 25 lakh.
- iv) The lock-in requirement of investment made by Angel Funds in the investment undertaking is diminished from three years to one year.
- v) Angel Funds are permitted to put resources into overseas venture capital undertakings up to 25% of their investible corpus in accordance with different AIFs.
What upgrades these progressions may bring, are yet to be seen.
The expression “angel” originated from the Broadway theater, when well off people offered cash to move creations. The expression “angel investor” was initially utilized by the University of New Hampshire’s William Wetzel, originator of the Center for Venture Research. Wetzel finished a review on how business visionaries assembled capital.
Angel funding is interest in little startups or business. Angel investors are frequently resigned business visionaries or administrators, who might be occupied with angel funding for reasons that go past unadulterated money related return. These incorporate information to stay up to date with current advancements in a specific business field, coaching another era of business visionaries, and making utilization of their experience and systems on a not as much as full-time premise. Consequently, notwithstanding funds, angel investors can frequently give significant administration counsel and essential contacts. Since there are no public exchanges posting their securities, privately owned businesses meet angel investors in a few ways, including referrals from the speculators’ trusted sources and different business contacts; at investor conferences and symposia. The capital angel investors give might be a one-time speculation to help the business drive or a progressing infusion of cash to support and bring the organization through its troublesome early stages. Angel investors give better terms contrasted with different banks, since they for the most part put resources into the business visionary beginning the business instead of the suitability of the business. Angel investors are centered onstart-ups make their first strides, instead of the conceivable benefit they may get from the business. Basically, angel investors are the inverse of venture capitalists. These are prosperous people who infuse capital for new companies in return for proprietorship value or convertible debt. Some angel investors contribute through crowd funding stages on the web or construct angel investor networks to pool in capital.
Angel funding are regularly put resources into arrangements sooner than Venture Capitalists. They don’t prefer to put resources into anything that is only a thought, so the entrepreneur begins with Friends and Family to back the early phase of the organization up to where there is maybe a model or Beta adaptations of the item. Angel fundings most generally reserve the last phase of specialized improvement and early market passage. Venture capitalists will then come in with an “Arrangement A” venture to take the organization through quick development and quickly create piece of the pie. VCs will help an organization to develop until they are prepared to open up to the world or be procured, so the dollars they contribute will be progressively bigger and bigger as the rounds advance.
Angles settle on choices regularly all alone and are not obligated to anybody aside from maybe their life partners. Most Angels search for an Exit, or Liquidity Event in which they recover their cash, inside three to five years. A few ventures take longer, obviously, however Angels need to recover their cash.
Notwithstanding, raising capital from Angels is diligent work. The capital raise dependably diverts entrepreneurs from doing the genuine work of building item and getting in contact with clients. Entrepreneurs ought to attempt to put off their capital raise as far as might be feasible, with the goal that they can assemble esteem and get a higher valuation for their organization before raising capital and weakening their value.
The Lokpal and Lokayuktas Act, 2013, usually called The Lokpal Act, is a Statute that aims to curb corruption, “tries to accommodate the foundation of the establishment of Lokpal to ask into claims of defilement against certain open functionaries and for matters interfacing them”.
Maharashtra was the principal state to present the Lokayukta concept through The Maharashtra Lokayukta and Upa-Lokayuktas Act in the year, 1971. Right now, there are no Lokayuktas in the states of Andhra Pradesh, Nagaland, Sikkim, Arunachal Pradesh, Manipur, Tripura, Meghalaya, Mizoram, West Bengal, Tamil Nadu and Jammu and Kashmir.
The first Lokpal Bill was presented in the Lok Sabha in 1968. The variant sanctioned in 2013 was from a draft arranged in 2010. The Bill is an execution of the Prevention of Corruption Act, 1988. To make recommendations to the Lokpal Bill, a total of 11 parliamentary boards were framed. The Bill was finally put forward in the Lok Sabha for the first time on 22 December 2011.The House passed it on 27 December as The Lokpal and Lokayuktas Bill, 2011. It was then submitted to the Rajya Sabha on 29 December, 2011. After a series of arguments that extended until midnight of the next day, there could be no vote on the Bill due to lack of time. On 21 May 2012, it was given to a Select Committee of the Rajya Sabha for recommendations. After making certain alterations to the Bill, it was finally passed in the Rajya Sabha on 17 December 2013 and in the Lok Sabha on the following day. On 1 January 2014, it got consent from President Pranab Mukherjee and came into compel from 16 January.
However, it has not been appropriately constituted considering the fact that the Selection Committee, involving the Prime Minister, the Speaker of the Lok Sabha, Leader of Opposition, Chief Justice of India or a sitting Supreme Court judge assigned by him, and a legal scholar selected by the President on the premise of suggestions of the initial four individuals, did not meet even once. The reason cited as to why the council couldn’t meet was that there was no perceived support of the House from the side of the Opposition Leader according to the current arrangements of the Act since Congress-which developed as the biggest single party after the BJP in the last votes – secured just 44 Lok Sabha seats in the 2014 election, and so it couldn’t get the status of the Opposition Leader, in the House.
This provision of the Act should be changed with the end goal to encourage the pioneer of the biggest single Opposition, to become a part of the Selection Committee. In spite of the fact that the Government has consented to make rectifications to the Act, it has not yet emerged as such, as it has been clubbed together with other proposed changes causing it to be postponed, and alluded it to the Parliamentary Standing Committee. The Committee had presented its report in December a year ago, affirming the proposed alteration.
The Supreme Court bench including the Chief Justice, T.S.Thakur, and Judges D.Y.Chandrachud, and L.Nageswara Rao, on November 23, 2016 questioned the Attorney General, Mukul Rohatgi, on why the Court couldn’t interpret the Lokpal and Lokayuktas Act, 2013, in a way to effectuate it, till the Parliament could revise the Act. Prior, senior supporter, and previous Union Law Minister, Shanti Bhushan, while speaking to the solicitor made an intense supplication to the Bench to decipher and interpret the Act, to bring Lokpal into reality as quickly as possible, as the Legislature has not demonstrated any enthusiasm for completing the requisite alterations to the Acting order to make it effective. Saying that the Act was finally passed in 2013 after a long and strenuous campaign driven by Anna Hazare, Shanti Bhushan asked “Do we require another Anna Andolan to bring Lokpal into being?”
Rohatgi told the bench that the Government would soon take a look at the proposed revision, and asked for time till December 7, to receive directions from the Government on whether the Court could interpret the Bill till the Parliament corrects the Act so as to encourage the leader of the single biggest opposition to take an interest in the Selection Committee discussions for the purpose of selection of Lokpal individuals. Be that as it may, the Bench, while supporting Shanti Bhushan’s enthusiastic interest, asked the Attorney General, the explanations behind the postponement of three years, in doing the important corrections to the Act. In spite of the fact that Shanti Bhushan asked for an early listening on the very next day, the Bench deferred it to December 7, thus conforming to the AG’s proposal to allow the Government adequate time. What happens now remains to be seen.
The making of an All India Judicial Service was initially proposed in 1960. The Chief Justices’ Meetings in 1961, 1963 and 1965 favoured the making of an AIJS, however, the proposition had to be withdrawn after a few states and High Courts opposed it, as indicated by a conference paper arranged in 2001 as a component of the National Commission to Review the Working of the Constitution. Along these lines, the Constitution was revised in 1977 to accommodate an AIJS under Article 312. The proposition was again coasted by the UPA government in 2012 when it was revisited as a parliamentary proposition for a Bill and got checked by a council of secretaries and arranged as a Cabinet note. Be that as it may, the draft bill stood withdrawn again after resistance from HC Chief Justices who saw this as an encroachment upon their rights.
In India, Judges appoint Judges through the collegium framework, which has been the recipient of a constant criticism from the legal fraternity as a result of its absence of objectivity and unbiasedness. Different Law Commissions (first, eighth, and eleventh) had additionally recommended for formation of AIJS. Even the Supreme Court has not been unwilling to the notion as reflected in two of its judgements in 1991 and 1993, where it had prescribed the setting up of an All India Judicial Service. Additionally, Article 312 of the Constitution accommodates a national level judicial service for the appointment of Judges. Regardless of this support, the arrangement for establishing an All India Judicial Service is hanging fire for as long as five decades.
India can look into the administrations of other countries to borrow structural framework ideas for setting up the All India Judicial Service. For instance, the French model, where the judiciary is worked by a career judiciary. In UK, judges are chosen from the legitimate administration and in US, the judges don’t require legal background. On this point, when contrasted with US and UK, the French model is very tasteful. There are many points of interest of the all India judicial examination framework, fair administration conditions and consistency in the guidelines. The entry-level AIJS officers can begin their vocation as additional district judges and eventually ascend to High Courts and the Supreme Court. This procedure will pull in splendid, efficient and able law graduates to assume control as judges.
The states are not in complete agreement with the idea; they are referring to a few issues that would come up at later stages. One of the issues being referred to is that few states have utilized powers under provisions of CrPC and CPC to announce that local language will be utilized as a part of lower courts in court proceedings such as plaint, written statement as well as while writing orders, judgements and decrees. In the above situation, language would manifest as a noteworthy hold up for individuals from various areas who are unfamiliar with the local language.
A retired Judge of the Delhi High Court and a former Law Commission member, Justice (retd) Usha Mehra has called the All India Judicial Services an ‘impossible idea’, saying the concept has more issues beyond the local language barriers as being anticipated by different state and district courts of India.
At this moment driving forward the proposition for an All-India Judicial Services Examination, Chief Justice TS Thakur will meet the Chief Justices of the High Courts to hold consultations over it. This endeavour, which is being contradicted by many states, means to streamline judicial appointments everywhere throughout the nation.The CJI’s initiative coincides with the end of the year test dates, which has gotten responses from numerous qualified candidates. The Delhi High Court held examinations on November 12 and 13, while Karnataka’s was conducted on November 12 and UP from November 11 to 13. Additionally, Prime Minister Narendra Modi amid the 50th year festivity of Delhi High Court held a month ago, had sponsored having an All-India Judicial Service set up on the lines of all national examinations held for civil services.
In any case, considering the tremendous pendency of around three crore cases in district courts across India and the way that the district courts are running short of 5,111 judicial officers, a step in the right heading will pave the way for fast justice.
What is GST?
The Goods and Services Tax is an indirect tax. It aims to simplify the present tax structure in India. GST subsumes most of the taxes which include Central indirect taxes like Service Tax, Additional Customs Duty, Special Additional Customs Duty, Central Excise Duty, Cess and Surcharge, and Countervailing Duty, and Sate indirect taxes such as Sales Tax, Value Added Tax (VAT), Tax on Inter-state Sale, Local Tax, Entertainment Tax, Purchase Tax, Mandi Tax/Other State-Specific Local Levies, Luxury Tax, Taxes on Lottery and Betting, and Octroi/Entry Tax.
GST is a solitary tax on the supply of goods and services, right from the producer to the buyer. Credits of input duties paid at every stage are accessible in the consequent phase of value addition, which basically makes GST a duty just on value addition at every stage. The end consumer subsequently bears just the GST charged by the last merchant in the production network, with set-off advantages at all the past stages.
Who are liable to register under GST?
Any provider who carries on any business in India and whose total turnover surpasses the threshold limit (total turnover of Rs 9 lakh for North-East India and Rs 19 lakh for the rest of India) in a financial year is subject to get himself enlisted in the State where he is carrying on his business. As per Section 2(6) of the Model GST Law, total or aggregate turnover means the total value of taxable, non-taxable, exempted exported goods and supplies of the same PAN and it will be computed on an all India basis. Be that as it may, certain classifications of people according to the Schedule III of the Model GST Law are liable to be enrolled independent of this limit.
According to Paragraph 5 in Schedule III of the Model GST Law, the following people shall be registered compulsorily disregarding the total turnover of their respective businesses:
a) people who make Inter-State taxable supplies;
b) persons who are casually taxable;
c) persons who are liable to pay taxes under reverse charge;
d) taxable persons not residing in India;
e) persons requiring to deduct tax under the purview of section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons,
they may be an agent or any other person;
g) input service distributor;
h) persons who supply goods and/or any services other than branded services through an e-commerce operator;
i) every E-commerce operator;
j) an aggregator supplying services under his trade name; and
k) such other person or class of persons as may be from time to time notified by the Central Government or any State Government on the recommendations of the Council (like persons required to deduct tax, input service distributor and notified persons).
It should also be noted that as per Section 19 (2) of the Model GST Law, separate registrations may be obtained for different business verticals (in one State) of the same person and Section 19 (3) allows one who is not required to be compulsorily registered to get voluntarily registered as well. A person who is liable to get himself registered under the GST regime should do so within 30 days of him becoming liable.
Documents required for GST registration
For registering under the GST regime, the PAN Card of the person/body seeking registration is a mandatory document. Apart from this, the following documents are required –
Constitution of Business
- Partnership Deed in case of Partnership Firm;
- Registration Certificate in case of other businesses like Society, Trust etc. which are not captured in PAN
Details of Principal Place of Business
- In case of Own premises – any document in support of the ownership of the premises like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy
- In case of Rented or Leased premises – a copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy
- In case of premises obtained from others, other than by way of Lease or Rent – a copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy
- Customer ID or account ID of the owner of the property in the record of electricity providing company, wherever available should be sought for address verification.
Details of Bank Account(s)
- Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFS Codes and Branch details
Details of Authorised Signatory
- For each Authorised Signatory: Letter of Authorisation or copy of Resolution of the Managing Committee or Board of Directors to that effect
- Proprietary Concern – Proprietor
- Partnership Firm / LLP – Managing/ Authorized Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted)
- HUF – Karta
- Company – Managing Director or the Authorised Person
- Trust – Managing Trustee
- Association of Person or Body of Individual –Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted)
- Local Body – CEO or his equivalent
- Statutory Body – CEO or his equivalent
- Others – Person in Charge
Process of Registration
The procedure of GST registration is an online process. The portal (http://gstindiaonline.com/) is maintained by the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India.
- The applicant needs to submit his PAN and contact details like mobile number and email address in Part A of Form GST REG–01 on the portal or through the Facilitation Centre or Tax Return Preparer (FCs and TRPs facilitate dealers without a proper IT infrastructure) as per the notification of board or commissioner.
- After the PAN is verified on the Portal, contact details’ verification is done by entering the OTP sent to the mobile number and the email address provided by the applicant. Once the verification is successful, the applicant will receive an Application Reference Number on the registered mobile number and E-mail address. An electronic acknowledgement of the first step of the registration will then be issued to the applicant in FORM GST REG-02.
- After that, the Part- B portion of Form GST REG-01 is to be filled by the application specifying the application reference number. The form is then submitted along with required documents.
- In case additional information is required for the Registration process, Form GST REG-03 will be issued on the portal to which the applicant has to fill out Form GST REG-04 with the required information within 7 working days after he receives Form GST REG-03.
- If all required information is provided through Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business and for every additional place of business is issued to the applicant. If the person has multiple business verticals within a state he has to file a separate application in Form GST REG-01 for registering each of those business verticals. If the details submitted are found unsatisfactory, the application for registration shall be rejected using Form GST REG-05.
Once a business is registered under the GST regime, it will be hugely benefitted. Some of the important advantages of this Registration are as follows:
- Businesses will be legally perceived as provider of products or administrations.
- Proper bookkeeping of expenses paid on the input goods or services which can be used for payment of GST due on supply of products or services or both by the business.
- Legally approved to gather charge from his buyers and pass the tax credit on to the buyers or beneficiaries.
Thus, it is very important to get registered under the GST regime. As discussed above the procedure is simple and hassle free and its benefits are many.