GST Policies on Income from Rent

GST Policies on Income from Rent

With Goods and Service Tax (GST) being evident in every sector then how can the income from rent escape the premises. Well, GST is much modernized and a well-structured tax collecting mechanism as compared to any tax system in India. Nothing is 100% fine therefore provisions are still being introduced to eliminate the minute flaws of GST.

For now, let’s talk about the effects of GST implementation on rental income and what it was before GST. 

Laws before GST

Before the initiation of GST the owner whose taxable earnings from rent exceeds Rs. 10 Lakhs a year has to pay service tax to the government on the taxable amount. Contrary to that, if the owner’s total taxable income from the rent of all the properties is less than Rs. 10 Lakhs per year then clearly he is immune from paying any services tax to the government. 

Another prominent rule was that tax was levied only on renting the commercial properties. Owners will come under the ambit of paying 15% tax on the total taxable income they get from renting out their commercial properties. The law remains if the residential space is given out on rent for commercial use. Rental Income from any residential property will not bring any tax obligations for the owner. 

Laws After GST

Under the GST regime, tax collection mechanism has been completely transformed for the betterment of the property owners. As per current laws, there is no tax on income earned from renting the residential house. Clearly, the owner is exempt from paying tax on the income from houses or houses he/she has given out on rent.

Another amendment is that the pre-GST threshold limit for total taxable income on commercial properties (i.e. Rs. 10 Lakhs) has been increased to Rs. 20 Lakhs. Means now the tax on income from the rent of commercial property will be charged only if it exceeds the threshold of Rs. 20 Lakhs per year.    

GST Effects on Rental Income of the property owner

There is a positive impact of GST on property owners who are getting income from rent. As discussed earlier, the owner is immune from paying tax on the income he/she receives from renting out a residential property. However, the taxable income from renting out a commercial space will invite tax at the rate of 15% (only if it exceeds the threshold limit of Rs. 20 Lakhs per year).

Adding on to this if the property is given on lease by the owner to a second party then the GST rate will be 18%, as it is considered the supply of service. 

Calculating GST on rental income earned from commercial property

Getting the figures of GST applicable to rental income from a commercial property:

• GST is calculated at an 18% rate on the taxable income from the rent of commercial properties. They are included in the supply of services.  
• Rent for shops and other business spaces is Rs. 10,000 or less per month
• Rent for community halls or any open area is Rs. 10,000 or less per day
• Properties listed under the name of any charitable or religious trust and is also managed by them then such spaces are immune from GST. However, GST is applicable only if such rooms or resting spaces cost (for the common man) more than Rs. 1000 per day. 

Note: Also you can file GST return via Gen GST Software. This software completely decade and designed by SAG Infotech PVT. Ltd. 

Tax Deduction policy on income from rent

Provided by law, the tenant of a rented commercial property has to deduct GST at the time of paying the rent to the owner. Commonly known as Tax Deducted at Source, the person paying the rent needs to deduct 10% TDS on the amount of rent he is paying to the owner. The amount will be submitted to the tax officials by the tenant or deductor.

Please Note; 10% TDS is applicable to the amount of rent from both residential as well as commercial property. On TDS there is no GST.  

Also, the tax charged by legal authorities on the rental income from immovable property rented to a registered person then it is listed under the Reverse Charge Mechanism. On the other hand, if the property is rented to any unregistered person then the government will deduct GST on their own which is known as the Forwarding charge mechanism.  

Simplification of GSTR-9 Annual Return and GSTR-9C Reconciliation Statement

The Central Goods and Services Tax (Seventh Amendment) Rules, 2019

Annual Return 

The Central Board of Indirect Taxes and Customs (CBIC) on November 14, 2019, has published the Central Goods and Services Tax (Seventh Amendment) Rules, 2019, to further amend the Central Goods and Services Tax Rules, 2017.

The Central Goods and Services Tax (Seventh Amendment) Rules, 2019 is published to simplify the Form GSTR-9 and Form GSTR-9C by making various field of these forms optional. 

Therefore, the amendments regarding the simplification of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) allows the taxpayers not to provide split of input tax credit availed on inputs, input services and capital goods and not to provide Harmonized System of Nomenclature (HSN) level information of outputs or inputs, etc. for the financial year 2017-2018 and 2018-2019.

Save as otherwise provided in these rules, they will come into force on the date of their publication in the Official Gazette.

Notification No. 56/2019 – Central Tax

Exempted from Obtaining Registration under the Central Goods and Services Tax Act, 2017

The Central Board of Indirect Taxes and Customs (CBIC) on October 22, 2018 has issued a Notification No. 3/2018 – Integrated Tax specifying the categories of persons who shall be exempted from obtaining the registration under the Integrated Goods and Services Tax Act, 2017  read with the Central Goods and Services Tax Act, 2017.

Don't be surprise

CBIC specifies the Categories of Persons who shall be Exempted from Obtaining Registration under the Central Goods and Services Tax Act, 2017

The CBIC in supersession of the Notification No. 8/2017 – Integrated Tax, dated September 14, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1156 (E), dated September 14, 2017, except as respects things done or omitted to be done before such supersession, specifies the following categories of persons who shall be exempted from obtaining registration under the Central Goods and Services Tax Act, 2017, they are namely:

(i)      Such persons making inter-State taxable supplies of handicraft goods as defined in the “Explanation” in Notification No. 21/2018 -Central Tax (Rate), dated July 26, 2018, and falling under the Chapter, Heading, Sub-heading or Tariff item specified in column (2) of the Table contained in the said notification and the Description specified in the corresponding entry in column (3) of the Table contained in the said notification; or

(ii)    Such persons making inter-State taxable supplies of the products mentioned in column (2) of the Table which has been given in the Notification and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the Table, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process.

Such persons making inter-State taxable supplies mentioned in the preceding paragraph shall be required to obtain a Permanent Account Number and generate an e-way bill in accordance with the provisions of Rule 138 of the Central Goods and Services Tax Rules, 2017.

URL: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-3-2018-igst-english.pdf

Income-tax (14th Amendment) Rules, 2019

Income-tax (14th Amendment) Rules, 2019

The Central Board of Direct Taxes (CBDT) on November 18, 2019, has issued the Income-tax (14th Amendment) Rules, 2019, to further amend the Income-tax Rules, 1962.

Income-tax (14th Amendment) Rules, 2019

Highlights 

Ø  Under Rule 30 which specifies the time and mode of payment to Government account of tax deducted at source or tax paid under section 192(1A),

a)       Sub-rule (2C) has been inserted, namely:

Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194M which specifies the payment of certain sums by certain individuals or Hindu undivided family, shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum statement in Form No. 26QD.

b)      Sub-rule (6C) has been inserted, namely:

Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QD, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2C) into the Reserve Bank of India or the State Bank of India or any authorised bank.

Ø  Under Rule 31 which specifies the procedure for furnishing the Certificate of tax deducted at source under section 203, sub-rule (3C) has been inserted, namely:

Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194M shall furnish the certificate of deduction of tax at source in Form No.16D to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QD under rule 31A after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him.

Ø  Under Rule 31A which specifies the provision regarding Statement of deduction of tax under section 200(3), sub-rule (4C) has been inserted, namely:

Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194 M shall furnish to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (System) or the person authorized by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) a challan-cum statement in Form No.26QD electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within thirty days from the end of the month in which the deduction is made.

Ø  Form 16D is for furnishing the certificate of deduction of tax at source has been inserted.

[Notification No. G.S.R.858(E)]

Telangana State List Of Holidays 2020

GOVERNMENT OF TELANGANA

ABSTRACT

Government of Telangana

HOLIDAYS- General Holidays and Optional Holidays for the year 2020 – Notified.

GENERAL ADMINISTRATION (SPL.E) DEPARTMENT

G.O.Rt.No.3022

DATED:21.11.2019 

ORDER: The following Notification shall be published in the next issue of Telangana extra-ordinary Gazette:

Notification

The Government of Telangana hereby notifies that during the year 2020 the days specified in Annexure-I (Part I) shall be observed as General Holidays by all the State Government Offices while the days for other occasions / festivals which fall on Sundays are shown in Annexure-I (Part II) and also notify Optional Holidays for State Government offices as shown in Annexure-II (Part I) while the days for other occasions / festivals falling on Sundays are shown in Annexure II (Part II).

2. The State Government directs that all offices under State Government shall remain closed on all Sundays and Second Saturdays in all the months during the year 2020, except the Second Saturday (08.02.2020) in the month of February, 2020 in lieu of public holiday declared on 1st January, 2020.

3. In addition to the above mentioned General Holidays in Annexure I (Part I), the State Government employees may avail themselves of Optional Holidays not exceeding FIVE during the year 2020 on the festival / occasions specified in Annexure-II (Part I) to this order, at their option and irrespective of the religion to which the festival pertains. Permission to avail any of these holidays shall be applied for, in writing in advance and will normally be granted by the Superior Officer competent to grant casual leave except when the presence of an individual employee is considered necessary in exigencies of Government work.

4. The Government also directs that General Holidays shall not ipso-facto apply to the Industrial Establishment and Public Undertakings under the control of the State Government, the workmen engaged in Public Works Departments and Educational Institutions in this State. Separate orders regarding the festivals/occasions when these Institutions observe holidays shall be issued by the concerned Administrative Department of the Secretariat.

5. If there is any change of date in respect of Idu’l Fitar, Idu’l Zuha, Muharram and Id-e-Milad as per the moon sight or any other holiday declared now, it shall be announced through electronic/print media. All the Departments of Secretariat, Heads of Departments and District Collectors shall take action according to such an announcement and without waiting for formal order about the change of date.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)

DR.SHAILENDRA KUMAR JOSHI
CHIEF SECRETARY TO GOVERNMENT

To

The Commissioner of Printing, Stationery and Stores Purchase, Chanchalguda, Hyderabad. (With a request to publish the above Notification in the next issue of Telangana State Extra-Ordinary Gazette and supply 200 copies to Government. )

The Home/Education/TR&B/I&CAD(PW)/Agri.&Coop./Energy/Food& Civil Supplies/ AHDD&F/ EFS&T/ Ind.&Com./B.C.Welfare /WD&CW/LE&T/YAT&C Department. (with a request to take necessary action in the matter with reference to para 4 of the notification) 

All other Departments of Secretariat All Administrative Sections in General Administration Department 

All Heads of Departments All the Collectors & District Magistrates in the State. 

The Resident Commissioner, Telangana Bhavan, No.1, Ashoka Road, New Delhi. 

The Secretary to Govt. of India, Ministry of Personnel, Public Grievances and Pensions, New Delhi.

The Chief Secretaries of all States and Union Territories The Registrar General, High Court for the State of Telangana , Hyderabad 

The Registrar, Institution of Lokayukta, Hyderabad. 

The Secretary, Telangana Public Service Commission, Hyderabad. All the Heads of Local Financial Institutions in Hyderabad. 

The Secretary to Governor, Telangana, Raj Bhavan, Hyderabad 

The P.S. to C.M/Prl.Secy. to C.M./All P.Ss to Ministers/ P.S. to C.S./P.A. to Spl.CS(Poll)/P.A. to Jt..Secy.(Proto). SF/SC

ANNEXURE - I 

GENERAL HOLIDAYS - 2020

Sl. No.	OCCASION/FESTIVAL	DATE	DAY	SAKA-ERA
1	New Year Day	01-01-2020	Wednesday	PAUSHA 11 -1941
2	Bhogi	14-01-2020	Tuesday	PAUSHA 24 -1941
3	SankrantiPongal	15-01-2020	Wednesday	PAUSHA 25 -1941
4	Maha Shivaratri	21-02-2020	Friday	PHALGUNA 02 -1941
5	Holi	09-03-2020	Monday	PHALGUNA 19 -1941
6	Ugadi	25-03-2020	Wednesday	CHAITHRA 5 -1942
7	Sri Rama Navami	02-04-2020	Thursday	CHAITHRA 13 -1942
8	Good Friday	10-04-2020	Friday	CHAITHRA 21 -1942
9	Dr. B.R. Ambedkar's Birthday	14-04-2020	Tuesday	CHAITHRA 25-1942
10	Eidul Fitar(Ramzan)	25-05-2020	Monday	JYAISHTHA 4-1942
11	Following Day of Ramzan	26-05-2020	Tuesday	JYAISHTHA 5-1942
12	Bonalu	20-07-2020	Monday	ASHADA 29-1942
13	Eidul Azah (Bakrid)	01-08-2020	Saturday	SRAVANA 10-1942
14	Sri Krishna Astami	11-08-2020	Tuesday	SRAVANA 20-1942
15	Independence Day	15-08-2020	Saturday	SRAVANA 24-1942
16	Vinayaka Chavithi	22-08-2020	Saturday	SRAVANA 31-1942
17	Mahatma Gandhi Jayanthi	02-10-2020	Friday	ASVINA 10-1942
18	Bathukamma Starting Day	17-10-2020	Saturday	ASVINA 25-1942
19	Durgastami	24-10-2020	Saturday	KARTIKA 02-1942
20	Eid Miladun Nabi	30-10-2020	Friday	KARTIKA 08-1942
21	Kartika Purnima, Guru Nanak's Birthday	30-11-2020	Monday	AGRAHAYAN 09 -1942
22	Christmas	25-12-2020	Friday	PAUSHA 04 -1942
23	Boxing day	26-12-2020	Saturday	PAUSHA 05 -1942

THE FOLLOWING FESTIVALS OCCUR ON SUNDAY & 2ND SATURDAY DURING THE YEAR 2020

Sl. No.	OCCASION/ FESTIVAL	DATE	DAY	SAKA-ERA
1	Republic Day	26-01-2020	Sunday	MAGHA 6 -1941
2	Babu Jagjivan Ram's Birthday	05-04-2020	Sunday	CHAITHRA 16 -1942
3	Shahadat Imam Hussain (R.A) 10th Moharam	30-08-2020	Sunday	BHADRA 08-1942
4	Deepavali	25-10-2020	Saturday	KARTIKA 23-1942
5	Vijaya Dasami	14-11-2020	Sunday	KARTIKA 23-1942

Note:- 8th February, 2020 (Second Saturday) is working day in lieu of public holiday declared on 1st January, 2020

ANNEXURE-II 

OPTIONAL HOLIDAYS – 2020

Sl. No.

OCCASION/ FESTIVAL

DATE

DAY

SAKA-ERA

1 BIRTHDAY OF HZT. SYED MOHAMMED JUVANPURI MAHDI MA’UD (A.S.) 10-01-2020 FRIDAY PAUSHA 20 -1941 

2 KANUMU 16-01-2020 THURSDAY PAUSHA 26 -1941 

3 SRI PANCHAMI 30-01-2020 THURSDAY MAGHA 10 -1941 

4 SHAB-E-MERAJ 23-03-2020 MONDAY CHAITHRA 3 -1942 

5 MAHAVEER JAYANTHI 06-04-2020 MONDAY CHAITHRA 17 -1942 

6 SHAB-E-BARAT 09-04-2020 THURSDAY CHAITHRA 20 -1942 

7 BUDDHA PURNIMA 07-05-2020 THURSDAY VAISAKHA 17-1942 

8 SHAHADAT HZT ALI (A.S.) 14-05-2020 THURSDAY VAISAKHA 24-1942 

9 SHAB-E-QADER 21-05-2020 THURSDAY VAISAKHA 31-1942 

10 JUMA-ATUL-WADA 22-05-2020 FRIDAY JYAISHTHA 01-1942 

11 RATHA YATHRA 23-06-2020 TUESDAY ASHADHA 02-1942 

12 VARALAKSHMI VRATHAM 31-07-2020 FRIDAY SRAVANA 09-1942 

13 SRAVANA PURNIMA / RAKHI PURNIMA 03-08-2020 MONDAY SRAVANA 12-1942 

14 9th MOHARRAM (1442H) 29-08-2020 SATURDAY BHADRA 07-1942 

15 ARBAYEEN 08-10-2020 THURSDAY ASVINA 16-1942 

16 YAZ DAHUM SHAREEF 27-11-2020 FRIDAY AGRAHAYAN 06 -1942 

17 CHRISTMAS EVE 24-12-2020 THURSDAY PAUSHA 03 -1942

THE FOLLOWING FESTIVALS OCCUR ON SUNDAY DURING THE YEAR 2020 

1 BASAVA JAYANTHI 26-04-2020 SUNDAY VAISAKHA 06-1942 

2 EID-E-GHADEER 09-08-2020 SUNDAY SRAVANA 18-1942 

3 PARSI NEW YEAR’S DAY 16-08-2020 SUNDAY SRAVANA 25-1942

FSSAI license

FSSAI Registration

The Food Safety & Standards Act, 2006 introduced to improve the hygiene and quality of food has brought about tremendous changes in the food industry. As per the Act, no person shall commence or carry on any food business except under a FSSAI license or FSSAI registration. Therefore, any food manufacturing or processing or packaging or distributing entity is now required to obtain a FSSAI License or Registration.

FSSAI Registration

FSSAI registration is required for all petty food business operator. Petty food business operator is any person or entity who:

• Manufacturers or sells any article of food himself or a petty retailer, hawker, itinerant vendor, juice stall, sweets shops or temporary stall holder; or
• Hawker selling packaged or freshly prepared food by travelling on movable cart or foot from one location to other.
• Small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding Rs 12 lakhs and whose:

• Production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/ltr per day or
• Procurement or handling and collection of milk is up to 500 litres of milk per day or
• Slaughtering capacity is 2 large animals or 10 small animals or 50 poultry birds per day or less.

Petty food business operators are required to obtain a FSSAI registration by submitting an application for registration in Form A. On submission of a FSSAI registration application, the registration should be provided or application rejected in writing within 7 days of receipt of an application by authority.

FSSAI License - State

Any person or entity that does not not classify as a petty food business operator is required to obtain a FSSAI license for operating a food business in India. FSSAI license is of two types, State FSSAI License and Central FSSAI License. Based on the size and nature of the business, the licensing authority would change. Some of the types of entities that require FSSAI state license are:

• Hotel providing lodging, meals and other guest services - upto four star rating.
• Restaurants and bars having turnover of upto Rs.20 crores per year
• Club/Canteen
• Caterers having turnover of upto Rs.20 crores per year
• Food vending agencies having upto 100 vending machines in only 1 state
• Mid day meal caterers having turnover of upto Rs.20 crores
• Mid day meal canteens having turnover of more than Rs.12 lakhs per year
• Food product marketers with a turnover of upto Rs.20 crores per year
• Food retailers with a turnover of upto Rs.20 crores per year
• Food suppliers with a turnover of upto Rs.20 crores per year
• Food product distributors with a turnover of upto Rs.20 crores per year
• Food product wholesales with a turnover of upto Rs.30 crores per year
• Food transporters having upto 100 vehicles and a turnover of upto Rs.30 crores per year
• Dairy units processing over 500 liters of milk per day or 2.5 MT of milk solids per year
• Vegetable oil processing units with turnover of more than Rs.12 lakhs per year
• Slaughter house processing more than 50 poultry birds or 11 small animals or 3 large animals
• Meat processing unit with a capacity of more than 500kg of meat per day or 150 MT of meat per year
• All grains, cereals, pulses milling units without any limit on production capacity
• Food manufacturing or processing or packing unit with turnover of more than Rs.12 lakhs per year or production capacity of more than 100kg or 100 liters per day
• Cold storage unit with turnover of more than Rs.12 lakhs per year
• Cold + Atmospheric Controlled Storage with turnover of more than Rs.12 lakhs per year
• Storage unit with turnover of more than Rs.12 lakhs per year

FSSAI License - Central

Large food manufacturers / processors / transporters and importers of food products require central FSSAI license. Some of the types of entities that require FSSAI central license are:

• Five star hotels
• Restaurants with a turnover of more than Rs.20 crores per year
• Caterers with a turnover of more than Rs.20 crores per year
• Food vending agencies with more than 100 vending machines or having machines in two or more states
• Food product importers
• Food product exporters
• Selling food products through e-commerce
• Registered office of food business operators having operations in two or more state
• Food business activity in premises belonging to Central Government Agencies
• Departmental Canteens at the premises belonging to Central Government Institutions
• Food business activity in Airport or Seaport
• Food business activity in Railway Stations
• Food product marketers with turnover of more than Rs.20 crores per year
• Food product retailers with turnover of more than Rs.20 crores per year
• Food product suppliers with turnover of more than Rs.20 crores per year
• Food product distributors with turnover of more than Rs.20 crores per year
• Food product wholesalers with turnover of more than Rs.30 crores per year
• Food product transporters with turnover of more than Rs.30 crores per year and having more than 100 vehicles
• Proprietary or novel food manufacturers
• Mid-day meal caterers with a turnover of more than Rs.20 crores per year
• Food manufacturing or processing or packing unit with a production capacity of more than 2MT per day
• Dairy units with capacity to process more than 50,000 liters of milk per day or more than 2500MT of milk solids per year
• Vegetable oil processing units with a processing capacity of more than 2MT per day
• Slaughtering house with a capacity to process over 1000 birds or 150 small animals or 50 large animals per day
• Meat processing units with processing capacity of more than 500kg of meat per day or 150MT of meat per annum
• Cold storage units with a capacity of more than 10,000 MT
• Cold storage that is atmospheric controlled with a capacity of more than 1000 MT
• Food storage with a capacity of more than 50,000 MT

Important documents required for FSSAI Registration are as follows:

Food retailers or food business operators are the main recipients for FSSAI Registration. They need to submit the FSSAI License Documents in order to obtain the FSSAI License. The relevant documents required for FSSAI License are as follows:


Photo ID of the Food Business Operator.
Identity Proof Documents such as Ration Card, Department Issued ID, PAN Card, Passport, Senior Citizen Card, Aadhar Card, Driving License, Voter ID Card
Supporting documents such as No Objection Certificate by Municipality/Panchayat, Health NOC.


Following are the documents required for FSSAI License for State:



1. Duly completed and Signed Form-B (in duplicate) by the proprietor or partner or authorized signatory.

2. Processing unit blueprint/layout plan showing dimensions in metres/square metres and operation-wise area allocation. This is mandatory for manufacturing and processing units only.

3. Full address and contact details of the list of Directors/Partners/Executive Members of Society/Trust.

4. Equipments and Machinery name and list along with number, installed capacity and horsepower used. This mandatory for processing and manufacturing units onl.

5. Government Authority issued Identity and Address Proof for Proprietor/Partner/Director(s)/Authorized Signatory.

6. List of food category the business intends to manufacture. (in case of manufacturers).

7. Authority letter which includes the name and address, responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz assisting the officers in inspections, collection of samples, packing and dispatch (for manufacturers/processors).

8. A recognized/public health laboratory issued Analysis Report (Chemical and Bacteriological) of water to be used as ingredient in food. This is mandatory only for manufacturing and processing units.

9. Proof of premises possession. (Sale Deed/Rent Agreement/Electricity Bill, etc.)

10. Certificate or plan of Food Safety Management.

11. Copy and certificate obtained under Coop-1861 or Multi State Cooperative Act - 2002 in case of cooperatives.

12. Affidavit of Proprietorship or Partnership Deed or Memorandum and Articles of Association towards the constitution of the firm (optional) - (a) FSSAI Self-Declaration for Partnership.

13. Source of raw material for meat and meat processing plants.

14. In case of units manufacturing packaged drinking water, packaged mineral water and/or carbonated water, the pesticide residues report of water from a recognized public health laboratory must be produced.

15. No Objection Certificate (NOC) or a copy of License from the manufacturer (mandatory for re-labelers and repackers only) - (a) Declaration and Undertaking System Plan or Certificate.

16. In case of Milk and Milk Products processing, the business must produce the source of milk or procurement plan for milk including the exact location of milk collection centres.

17. Certificate from the Ministry of Tourism.

18. No Objection Certificate (NOC) from the Municipality or local body.

19. Recall plan wherever applicable.

20. Form IX - Nomination of Persons by a Company along with the Board Resolution.

21. Self Declaration of number of vehicles - for transporters.

22. The declaration form - from Delhi or Himachal Pradesh.

These are the documents required for FSSAI License. The same must be carefully checked before submitting the application. You can read our blog on How to get FSSAI certificate to know about the process in detail.
It has become very important for food business operators, be it small or medium sized food business to obtain the FSSAI License in order to efficiently run the business. In order to obtain the FSSAI License, businesses have to submit the correct documents related to the food business after which the business would be issued the FSSAI Registration License.

Breach of Trust by a company - SC Ruling

Top honchos, including managing directors and directors, or any other employee cannot be held guilty for an offence of breach of trust attributed to a company, the Supreme court has ruled. Upholding an appeal led by the managing director of the popular biscuit manufacturer Britannia Industries, a bench of Justices S B Sinha and V S Sirpurkar said that they can be held vicariously responsible for the offence only if the statute provides for their liability. 

In other words even if a cheque or draft issued in favour of a company is allegedly misappropriated, the managing director or other employees cannot be held liable for the offence. S K Alagh, managing director of Britannia Industries had led the appeal challenging the rulings passed by a trial court that he was liable for prosecution over alleged misappropriation of a cheque worth Rs 1.68 lakh issued in favour of the company by a wholesale dealer. 

The wholesale dealer Akash Trader had led a case of criminal breach of trust against Alagh and other ofcial after the draft issued by him in the name of Britannia Industries was not returned to him in time even though its dealership was terminated by the company. 

According to the apex court, as the draft is drawn in favour of the company, the managing director/employee cannot be held for breach of trust stipulated under section 406 of IPC. 

As per section 406 IPC, a "person" commits criminal breach of trust, if he or she dishonestly misappropriates any property entrusted to him/her by another person. In this case the apex court pointed out that the draft was issued in favour of the company and not any individuals as such the managing director, general manager or other employees cannot be held responsible for alleged misappropriation. "If and when a statute contemplates creation of such a legal action, it provides specially therefor. In the absence of any provision laid down under the statute, a director of a company or an employee cannot be held to be vicariously liable for an offence committed by the company itself," the apex court observed. The bench explained that under certain special Act like Essential Commodities Act, Negotiable Instruments Act, Employees Provident Fund Act, provisions had been made for fixing vagarious liability on individuals and employers. 

For instance it pointed out that under section 14A of the Employees Provident Fund Act, the employer is held for vicarious responsibility and criminal breach of trust under section 406 in the event of the amount deducted from the employees is misappropriate. "But even in a case falling under section 406 of the Indian Penal Code vicarious liability has been to be not extendable to the directors or ofcers of the company," the apex court said while imposing a cost of Rs 1 lakh on Akash Traders for "harassing" the managing director.