Solar Rooftop Project - Installation and Net-Metering

Solar Rooftop Project - Installation and Net-Metering

Solar Projects can be installed on open rooftop space, wherein generated green electricity can be consumed by the customer and excess electricity can be exported to the government grid. Best win-win proposition for consumer, grid, government and environment.

Main features of the Net Metering Policy for Rooftop Solar PV Plants:

1. “Eligible Consumer” means a consumer of electricity in the area of supply of the Distribution Licensee who uses or intends to use a Solar Photo Voltaic (“PV”) generating System having a capacity less than 1000 KW, installed on a roof-top or any other mounting structure in his premises, to meet all or part of his own electricity requirement, and includes a Consumer catering to a common load such as a Housing Society.

2. The capacity of the Roof-top Solar PV System to be connected at the Eligible Consumer’s premises shall not exceed his Contract Demand (in kVA) or Sanctioned load (in kW).

3. If the quantum of electricity exported exceeds the quantum imported during the Billing Period, the excess quantum shall be carried forward to the next Billing Period as credited Units of electricity. The unadjusted net credited Units of electricity as at the end of each financial year shall be purchased by the Distribution Licensee at its APPC as approved for that year. At the beginning of each Settlement Period, the cumulative quantum of injected electricity carried forward will be re-set to zero.

4. In case the Eligible Consumer is within the ambit of ToD tariff, the electricity consumption in any time block, i.e. peak hours, off-peak hours, etc., shall be first compensated with the quantum of electricity injected in the same time block.

Authored by :

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com

Start-ups in India - Accounting & Legal Compliances

Startup entrepreneurs in India mostly working with business format of Company or Limited Liability Partnership (LLP) needs to be more particular on accounting, taxation and compliance procedures for better valuation. Most startups think that since they have no business transactions or accumulated losses, they do not need to file their tax returns. Every company / LLP in India has to comply with basic compliances irrespective of its business situation or profit / loss status.

1. Book Keeping and Accounting Procedure:

Recording the transactions and preserving bills and invoices to back financial statements is something that most business owners dread. Avoiding this leads to serious repercussions. For example, at the time of incorporation, a company pays the registration fees, name approval fees and stamp duty to RoC. Further, the promoters of the company also hire a professional firm to guide them through the entire incorporation procedure, which again involves cash outflow.

These expenditures, though pre-incorporation in nature, provides tax-saving benefits to the company, to the extent of one-fifth of such expenses every year. Further, invoices carrying break-ups of VAT and service tax is a boon, as far as claiming credit for both is concerned. The company should keep records of all expenses made specifically for business, since these are deductible against business revenues. Even if the company is suffering losses, it is advisable to maintain records in order to raise the losses and set it off with future profits.

In case of non-compliance, persons responsible shall, in respect of each offence, be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than Rs. 50,000 but which may extend to Rs. 5,00,000 or both in case of companies.

2. Income Tax Return & Compliance Filing

Filing of income tax return is the most authentic proof of the income earned as all are required to file it.  But many do not file tax returns as they are unaware of the procedure. Startups should appoint a tax consultant who will help them avail the benefits of filing tax return in time. Some of the benefits include:

· A business having losses can carry it forward and get it set-off with future profits.

· For making an investment, filing income tax return on time is essential.

· Tax refunds can be claimed only when income tax return is filed.

.Timely filing of ITR is necessary for smooth bank / debt funding for project.

The due date for filing Income Tax return is September 30 each year. Various procedures of penalty and interest are applicable for delayed filings.

3. Statutory Audit

It is mandatory to get accounts audited annually for all companies, whereas LLP has certain financial limits for statutory audit compliances. The LLP Act provides that the partners of such LLP if decided not to get audit of the accounts of the LLP then such LLP shall include in the Statement of Account and Solvency a statement by the partners to the effect that the partners acknowledge their responsibilities for complying with the requirements of the Act and the Rules with respect to preparation of books of account and a certificate in the Form 8. However no such relaxation is provided to companies.

4. Registrar of Companies Compliances & LLP Act

Every company (having or not having share capital) and LLP has to file its financial reports with the Ministry of Corporate Affairs annually. It constitutes a component of ‘Annual RoC Filing’ mandated by Companies Act, 2013. As a part of annual filing, Companies incorporated under the Companies Act 2013, are required to file the Balance Sheet, Profit & Loss Account and Annual return in prescribed format thru e-forms with the RoC. The penal provisions of RoC are so stringent that companies have been shut down due to this. The additional fees can be as high as upto 12 times of normal fees. Further, there also provisions where huge penalties are laid per day on officers as well as the companies simultaneously.

As a part of Annual Filing, LLPs are required to file Statement of Account & Solvency and Annual Return of LLP thru e-forms with the RoC.  Surprisingly, there are no slabs for late filing fee for LLPs. In this regard, the straight rule of computation of late filing fee is Rs 100 per day of delay in filing. The number of days of delay in filing is calculated from the due date of filing to the actual filing date.

As mentioned earlier, these compliances have to be adhered to irrespective of your business situation. Non-compliance of these provisions has the capacity to shut down a full-fledged business.

Authored by :

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com