Communication Compliance - How to get it RIGHT?

Communication Compliance is an important aspect of maintaining the minimum prescribed standards to ensure all legal laws have been considered while drafting an official communication on behalf of your company. The Companies Act, Income Tax Act, VAT/CST Laws, Service Tax and half a dozen other laws prescribe something or the other that you have to compulsorily maintain! The real problem is being aware about these small issues that can put a lot of harassment and obstacles while doing business.

This FAQ is based on series of questions I have received in last 2 years. I will try to sum up as much as I can. If I have missed out, kindly post your queries in comment and I will try my best to resolve it for you.

1. Yay! I have incorporated my Company. What's next?

Ans: The basic documentation includes, preparing invoice format, company letterhead, vouchers, Statutory Registers, etc. Most of these have standard templates available in the market. Some of you may want a customised one with your own brand name, logo, theme, colour combination, etc. These can be done keeping in mind the bare minimum statutory requirements are met.

2. I lost you on the Invoice Format! Is there a rule or format for it?

Ans: There is no specific format, just a list of requirements that must be there in all outgoing invoices. These include Company Name (Logo is optional), address of registered office, CIN, Contact Details like phone number, email address & website (optional), Tax Registration Numbers (such as PAN, Service Tax, VAT/CST, etc.), Invoice number, heading of 'Tax Invoice', break up of various taxes levied, Prepared, Authorised, Issued & Paid signatures, attachments such as stock challans, order copy, delivery note, etc. It should also contain official seal (round stamp) of the company.

3. Got it! By the way what's CIN?

Ans: CIN is Corporate Identification Number issued by Registrar of Companies (RoC) when you incorporate a Company/LLP. You can find yours via this link. It's also available in your Certificate of Incorporation.

4. Understood! So, What is the requirement for Letterhead, vouchers, Statutory Registers, etc.?

Ans:

- Letterhead usually contains the Name of the Company, CIN, Registered office Address, contact details & website. Anything extra is optional.

- The requirement for Vouchers are similar to Invoice. They are mostly used for internal purposes.

- Statutory Registers are a set of prescribed documents that Companies Act mandates to all corporates! These include Register of Members, Register of Directors, Minute Book, Register of Fixed Assets, Register of Charges and another few Registers that depend on corporate working.

5. Okay! But I don't have VAT/CST or Service Tax Registration no. What do I have to do?

Ans: If you don't have VAT/CST or Service Tax Registration no.; then you don't have to put these details in your communication. However, you have to ensure that are you exempt from having these registrations. It's well known fact that ignorance of law is not an excuse to evade law!

6. Phew! Is there anything else I need to know?

Ans: There are lot of things that you can learn. The best practices are out there in the market. It is still advisable to have your own Professional (preferably a Company Secretary) to help you mitigate these exposures so that these are well taken care of.

If you have any questions, feel free to shoot in the comment section. Thanks!