Monthly Archives: Jun 2016


Basic Information Of Digital Signature certificate

What is Digital Signature Certificate?

A Digital Signature Certificate or DSC plays the role of the normal handwritten signature, but it serves as a certificate like a driving licenses or passport.

The DSCs serve as a proof of identity for a person or an organization for specific purpose online.

In simple language, Digital Signature Certificates serve as an electronic proof of your identity in the cases of accessing online information or online transactions.

How does it work?

  • Basically, Digital Signature Certificate (DSC) associates the identity of an individual/device with public and private keys.
  • It contains information about a user’s identity (such as their name, pin code, country, email address, the date the certificate was issued, name of the CA).
  • These keys won’t work in the absence of the user.
  • They are used by browsers and servers to encrypt/ decrypt information regarding the identity of the certificate user.
  • The private key is stored on the hard disk of the user’s computer or on an external device such as a USB token.
  • The user retains control of the private key and it can only be used with the issued password.
  • The public key is distributed with the encrypted information. So, if one of these keys in not available or do not match, the authentication process fails. This means that the encrypted data cannot be decrypted and therefore, is inaccessible to unauthorized parties.

A DSC is issued by the licensed Certifying Authority (CA). It means a person who is granted a licence to issue a Digital Signature Certificate under Section 24 of the Indian IT, Act 2000. You can check out the list of licensed CAs here

Now, there are three types of Digital Signature Certificate, which are called Class 1, Class 2 and Class 3 Certificate.

Class 1 To be issued to individuals/ Private Subscribers.
Class 2 To be issued for Income Tax filing, ROC and MCA filing
Class 3 To be issued for the purpose of e-Tendering, e-Procurement, Trademark / Patent filing, etc.

Uses of Digital Signature Certificate

The DSCs are used for…

  1. Sending/Receiving digitally signed and encrypted emails/documents
  2. Carrying out secure transactions on Internet
  3. e-Tendering or e-Procurement
  4. e-Filing Income Tax Returns
  5. Signing Documents like MS Word, MS Excel and PDFs

How to Acquire a Digital Signature Certificate?

You can acquire a DSC at following websites:  

Documents Required:

Documents to be submitted along with application of the DSC may vary as per the applicant and the class of digital signature to be obtained.

In case of Individuals, following documents are to be attached along with an application form:

  • Self attested copy of PAN
  • Passport size photographs of the applicant
  • Self attested copy of any one of the latest copy of:
    • Water Bill
    • Electricity Bill
    • Telephone Bill
    • Credit Card
    • Voter ID
    • Driver’s License
    • Passport

In case of Organizations, some of the documents required to be submitted along with the application are:

  • PAN of the Organization
  • Incorporation certificate / deed / agreement etc.
  • Details of authorized signatory of the organization and his//her ID Proof
  • Latest Bank statement of the Organization etc.

The above list is inclusive and not exclusive. The DSC provider may ask for additional documents as well.

A step-by-step guide to Get your Digital Signature Certificate

  • Download the Application Form from any of the sources mentioned above
  • Fill up the form. Note that the fields marked with ‘*’ are mandatory to fill up.
  • Get Self-attested copies of the documents mentioned above.
  • Re-confirm your email ID.
  • Take Signature on the Application form and Subscriber’s Agreement.
  • If the DSC providers have online payment option you can pay the fees online or else you can send a demand draft as per the requirements.

Government has come up with DSC Management Utility to simplify this entire process. Click here to see how!

Frequently Asked Questions

Do I require different DSCs for different banks?

Not if the DSC is under the same class.

One can sign a copy on paper without the person’s knowledge. Can the same happen with Digital Signature?

It all depends on how secure the owner has kept the key. If a traitor gains access to the key, he can access the signature.

If I’m transferred to another post or department in my job, will my Digital Signature change as well? Why?

Yes, it will.

If the owner of DSC is transferred to another post, and the proceedings require for it, his/her existing certificate will be revoked and new one will be issued. Even if the same key is used, the digital signature generated is different each time.

What is the cost of acquiring a DSC?

The charges may vary as there are many entities issuing DSC and they have different charges.

How much time does it take to get the DSC issued?

The Certifying Authority may take three to seven days to issue your DSC.

What is the validity period of DSC?

The validity period of Digital Signature Certificate may vary from one to two years.

If I want to eFile on the MCA portal, what type of DSC do I need?

DSC of Class 2 and Class 3 is required to eFile on MCA portal.

Can I have two Digital Signatures; one for official use and the other for personal use?

Yes, you can.

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Indirect Tax

Basic Information on Service Tax in India

Service Tax is a tax which is paid by the provider of service. Any person whose revenue from providing of any type service (whether Consultancy/Affiliate/Designing/ SEO or any other service) during the year is more than Rs. 10 Lakh is liable to pay service tax as per the tax rates prescribed by the govt.

The current service tax rate is 15%, and this rate varies due to changes done in budget  announced every year. Service Tax is liable to be paid on any service rendered by any person in India if the revenue of the person providing the service is more than Rs. 10 Lakh p.a. This service tax is also levied on bloggers and freelancers as they also provide a form of Service.

It is pertinent to note here that Sale of Ad Space on a website is also a part of Service and Service Tax would also be levied on Sale of Ad Units on a Website/ Mobile device. From 1st July 2012 till 30th Sept 2014 – sale of ad space on a website/ mobile was specifically exempted from the levy of Service Tax as this was included in the negative list of services on which service tax is not applicable.

However, Budget 2014 brought in an amendment and now sale of Ad Unit on a Website/ Mobile would attract Service Tax @ 15% wef 1st June 2016. This Service Tax would be applicable on all kind of digital ads i.e. Direct Ad Sales, Google Adsense Ads, Ad Sales through Agents etc.

Service Tax Exemption

Service Tax is not levied in the following cases:-

  1. In case the Total Revenue/Turnover of the business is less than Rs. 10 Lakhs. This exemption is known as Small Scale Exemption.
  2. All Services which are exported out of India are also exempted from the levy of Service Tax. The Govt. has specified several rules for determination of whether a service provided is considered as Export or not.

Service Tax Rate

Service Tax is levied @15% on revenue whereas income tax which is levied on the total income. The difference between revenue and Income is explained with the help of the following equation:-

Revenue – Expenses = Income

So, if the total revenue (excl ad sales) during the year is more than Rs. 10 Lakh, you would be required to pay service tax to the govt.

Charging of Service Tax to the Client

Although service tax is payable by the person who is providing the service he can still charge it from your client. This can be explained with the help of the following example.

For eg: Mr. A provides some service to Mr. B for Rs. 50 Lakhs on which Service Tax is levied @ 15%. Now in this case, service tax of Rs. 7,50,000 is payable by Mr. A to the govt. However, Mr. A can charge this service tax amount of Rs.7,50,000 from Mr. B and then deposit this with the govt. Practically, Mr. B also won’t mind paying this extra Rs.7,50,000extra as he knows that this amount is not going into the pockets of Mr. A, and Mr. A would be depositing this amount with the govt.

This is how the whole service tax industry works wherein the person who is providing the services, charges the service tax amount from the person receiving the service. You may have also noticed in restaurants and at many places it is written – “Service Taxes extra”.

Service Tax extra basically means that the person receiving the service has to himself pay the service tax over and above the rates mentioned.

In case, you don’t charge Service Tax from your client, you would be required to pay this service tax amount from your own pocket. However, if your total net revenue during the year is less than Rs. 10 Lakhs, you won’t be required to pay this service tax at all.



Service Tax Registration, Payment and Return Filing


Just like PAN No. is issued to each individual for filing his Income Tax Return, similarly Service Tax No. is also issued to every person liable to pay Service Tax. Registration for service tax is a simple process and application for service tax can also be made online through the automated website of the Central Excise and Service Tax Department.

Different due dates have been prescribed by the Govt for the payment of service tax depending on the kind of registration (Individual/ Company).

Service Tax Return which is a statement of the revenue earned from different type of Services is also required to be filed on a half yearly basis every year in the month of October and April.

However, you are only required to apply for service tax registration and file service tax return only when the total net revenue during the year exceeds Rs. 9 Lakhs (excl ad sales). So, the important thing to remember here is that Service Tax is liable to be paid only when the revenue (excl ad sales) exceeds Rs. 10 Lakhs p.a. but is required to apply for service tax registration when the revenue exceeds Rs. 9 Lakhs p.a.

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Digital Signature Certificate

Vision Consultancy provides all types of digital signatures like Class 2, Class 3, Encryption, DGFT etc required for Income Tax, ROC, E-tenders, DGFT etc.

We provide services in entire Maharashtra and Karanataka in cities like Kolhapur, Pune, Sangli, Satara, Ratnagiri, Sindhudurg, Mumbai, Solapur, Belguam etc.

  • Digital Signature Certificate
  • Local Body Tax Consultation (LBT Consultation).
  • Digital Signatures of Ncode, E-mudhra, Class 2, Class 3, DGFT etc.
  • E-tenders
  • E-payment of Taxes.
  • E-filing of returns.
  • Vat, Excise, Service Tax Consultation.
  • Appeals Income Tax Consultation.
  • Stock Audit, E-tender filing, Staff Training, System Development, etc.
  • Breakage Audit, ROC Consultation, for Income Tax, ROC, E-tenders, ZP, etc to CA, CS, CWA, Tax Consultants, Advocates, Contractors, Companies and vendors.
  • SBI Housing Loan consultation

We provide services in Maharashtra, Karnataka, Kerala and other many states in India in cities like Pune, Kolhapur, Sangli, Satara, Mumbai, Ratnagiri, Sindhudurg, Nashik, Aurangabad, Belgaum, Hubli, Bangalore, etc Vision Consultancy has emerged as one of the leading & trusted name in providing Digital Signature Certificates.

Call me : 8624892442

Email ID:

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MUTUAL FUNDS (Wealth Management)

Information About SWP

Systematic Withdrawal Plan (SWP) is the withdrawal of fixed amount of money from an investment on a periodic basis. Well, as per the fundamentals, mutual fund investments should be withdrawn over period of time; and never on a lump sum basis.

This helps to take advantage of the sales price averaging. It works on the same principle as Cost Averaging. Average sales price will work out to be higher if withdrawn in a periodic manner than in one-time withdrawal.

Systematic Withdrawal Plan Options

There are 2 types of Options available in Systematic Withdrawal Plan –

1) Fixed Withdrawal

In this case, a fixed amount of money is withdrawn every month by redeeming the required number of units, which is based on the NAV of the mutual Fund at the time of withdrawal.

Example: 1000 units are present in the mutual fund and the NAV in the current month is 10. The withdrawal amount requested is Rs. 900. Hence, 90 mutual fund units will be redeemed to fund the withdrawal.

2) Capital Appreciation

Here, a certain percentage of the capital appreciation is withdrawn on periodic basis. If the fund appreciation does not match the requested withdrawal amount, then payment in that period will be withheld and pay-out will be made in the subsequent period. Generally, growth funds are preferred for this option.

Example: For a quarterly Systematic Withdrawal Plan, the withdrawal requested is Rs. 500. If the capital appreciation has been Rs. 600 and 90% of capital appreciation is permitted, then Rs. 540 will be deposited in the investor’s bank account at the end of Q1.However, due to the downturn in markets, if the capital appreciation in Q1 is only Rs. 450. Thus, the payment will be withheld and paid in Q2 along with payout for Q2 i.e. Rs. 450 + Rs. 540= Rs. 990.

Key Benefits of Systematic Withdrawal Plan

  1. Money when you need it

Systematic Withdrawal Plan allows account holder to access their money exactly when they need it. This helps individuals to achieve their financial goals.

  1. Regular Income

It allows investor to withdraw money on a periodic basis. Thus, investors do not need to withdraw everything at once. This way, Systematic Withdrawal Plan helps achieve a higher average sales price. Also, timing the market is not necessary to ensure that best sale price is available.

  1. Tax Advantage

Systematic Withdrawal Plan offers tax advantage as long term capital gains have a lower tax rate. Tax Deducted At Source or TDS is not applicable.

Systematic Withdrawal Plan can be set up to withdraw only the capital appreciation amount. In this way, one can enjoy the gains while the capital still stays invested.

How does Systematic Withdrawal Plan work?

Nothing can be more blissful than receiving regular income to fund the day to day expenses during retirement or funding your child’s tuition fees or any other requirement. What better way to have this than start a SWP.

Let’s take a look at the following example to see on how to apply Systematic Withdrawal Plan –

Janak has 10000 units of a mutual fund X. He has availed of Systematic Withdrawal Plan option and has instructed the fund house to withdraw Rs. 5000 on the 4th of every month. In this case, fixed withdrawals are made from the capital. Following table explains how this will work-

Month and Date No of Units Available NAV on 4th Units Redeemed SWP Amount (Rs) Units Remaining
4 Jan 10000 15 133.33 2000 9866.67
4 Feb 9866.67 14.5 137.93 2000 9728.74
4 Mar 9728.74 12 166.67 2000 9562.07
4 Apr 9562.07 13 153.85 2000 9408.22
4 May 9408.22 15 133.33 2000 9274.89
4 Jun 9274.89 16 125.00 2000 9149.89
4 Jul 9149.89 16.5 121.21 2000 9028.68
4 Aug 9028.68 15.5 129.03 2000 8899.65
4 Sept 8899.65 14.7 136.05 2000 8763.59
4 Oct 8763.59 14.3 139.86 2000 8623.73
4 Nov 8623.73 14 142.86 2000 8480.87
4 Dec 8480.87 13.8 144.93 2000 8335.95


In the above table, we can see that the initial number of MF units is 10000. On Jan 4th, the NAV is 15. Thus, units redeemed to withdraw Rs. 2000 is 2000/15= 133.33. This leaves us with 9866.67 units in month of Jan. Similarly, we can see how the units are redeemed in the following months.

Initial years of an individual’s life are spent saving and investing those savings in various financial instruments like Mutual Funds, PPF, etc. It is important that these savings are available to us in times when we need really need them.

If these are available to us in a periodic manner, then that can help in planning us in meeting more regular expenses like tuition fees for children, daily expenses in retirement, payment of premium for insurance policies or any other financial purpose you can think of. SWP can help achieve all this.

It’s a matter of opening your mind and seeing where Systematic Withdrawal Plan can be really helpful to us.


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MUTUAL FUNDS (Wealth Management)

Information About STP

Systematic Transfer Plan or STP refers to an investment plan wherein fixed amount of money can be transferred from one mutual fund to another on a specified date.

This transfer can be made on a weekly, monthly or quarterly basis. Systematic Transfer Plan is generally used to reduce exposure to equities or increase exposure to equities depending on the market conditions; but over a period of time.

This works just like the (Systematic Investment Plan) SIP except that; here money is being transferred from one mutual fund to another, rather than from a bank account. The mutual fund will reduce the number of units equal to the amount you have specified for transfer.

For e.g. If `1000 needs to be transferred from fund A to B, then units of fund A worth `1000 will be sold and transferred to fund B.

Benefits of Systematic Transfer Plan

Let’s look at the benefits of Systematic Transfer Plan –

1) Like a SIP

You can invest a lump sum amount in one mutual fund and have a fixed amount of money transferred to another mutual fund on a periodic basis, just like an SIP would.

2) Like Systematic Withdrawal Plan

When you feel that markets are risky and might go down, you can have money transferred from an Equity fund to a Debt Fund. This will help reduce your exposure on equities.

3) Provides Good liquidity

This is the benefit you get by investing in any mutual fund. Since your money is invested in a debt fund, you can sell the units anytime in case of an emergency or otherwise, and you can have liquid cash in your account in no time.

4) Capital Appreciation

You will benefit from the rise in NAV of the Debt fund or Equity fund that you are invested in.

5) Flexibility

In most funds, fund units are sold so that specified amount can be transferred to another fund. Some STPs provide options wherein only the capital appreciation can be transferred.

So, does Systematic Transfer Plan sound like a new generation financial instrument? Well, here’s how you can make most of it. Let’s look at some scenarios below to see how Systematic Transfer Plan can be beneficial for us.


Scenario 1- Debt to Equity

Now what do I mean by saying Debt to Equity. Money is invested in a debt fund and then transferred to an equity mutual fund on a periodic basis. This is useful when a large sum of money needs to invested in stock markets and timing the market might not be a good option due to volatility in the market.

Let’s take a look at the following example. Nisha has recently inherited `10 lakhs from her father. She has a keen interest in putting this money in stock markets but is apprehensive that she might lose all of it, as the market has been very volatile. Here’s how Systematic Transfer Plan helps her-

1) She invests `10 lakhs in XYZ Debt fund.

2) She can invest the entire amount in a liquid fund or a short term bond fund as this will give her stable returns. Also, the NAV of Debt funds or Liquid fund do not fluctuate much, assuring that the value of her investment will not drastically decrease in response to market movement.

3) She then opts for the STP wherein, every month or whatever interval she prefers, a pre-determined amount of money can be transferred to an Equity Diversified fund.

4) In volatile Stock markets, this helps reduce her risk of timing the markets to ensure that she gets a good purchase price.

Systematic Transfer Plan

Scenario 2- Equity to Debt

This strategy is useful when you want to cash out when you retire.

Look at Shirish’s example, who is now retired and wants to cash out the money he has invested in an Equity fund and reduce his risk. He has accumulated `15 lakhs in an Equity fund but does not want to pull out all the money at once. Here is what he can do-

1) He starts an STP to transfer money from the Equity fund to Debt fund or Liquid fund. This will help him reduce his exposure to equity.

2) He can sell the units of the Debt fund whenever he needs this money.

3) He can also start a Systematic Withdrawal Plan so that money can be transferred to his account on a periodic basis.

Scenario 3- Equity Fund to ELSS

Money can be transferred from Diversified Equity fund to an ELSS scheme of the same fund house.

Take example of Niraj who has accumulated 5 lakh in Equity diversified fund. He does not want to sell it and then invest the money in a fund to avoid transactions costs. This is how he can save his tax-

1) He makes a STP from Equity fund to ELSS fund of the same fund house.

2) Periodic transfers of the money are effected as per instructions.

3) ELSS will provide tax benefits as well.

Thus, in the wake of volatile markets, rising transaction costs and taxes, Systematic Transfer Plan can prove to be useful in many ways. So, when are you becoming ‘STP Friendly’!!!


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