Payment Gateway License Service in India?

Answer 1

Payment Gateway License Service in India

Payment Gateway License

An e-commerce application service provider provides a payment gateway, which is a financial service. We all know that internet shopping's popularity in India is mostly due to the convenience and flexibility that this platform provides.

Furthermore, online payment of bills recharges, and other services have become commonplace. When we buy anything online or pay a bill, we are taken to another page when we click "pay now." This is the website's payment gateway site, where we make payments for goods and services.

The payment gateway functions as a middleman between the website and the banks, allowing transaction information to be communicated more easily.

According to Section 4 of the PSS Act, no one other than the RBI can operate or start a payment system. Section 5 of the PSS Act requires that a request for authorization be filed to the RBI.

Only NBFCs (Non-Banking Financial Companies) and banks that comply with the Apex Bank's Capital Adequacy Requirements will be permitted to issue prepaid payment instruments in India. The NOF (Net Owned Funds) of all other entities must be at least Rs 10 lakhs. The RBI recommendations do not apply to organisations who are authorised to issue foreign exchange PPIs (Prepaid Payment Instruments) under the Foreign Exchange Management Act (FEMA).

80G & 12A Certification in India

Section 80 G

An 80 G certificate is issued by the Internal Revenue Service to a non-governmental organisation (NGO), such as a charity trust or a Section 8 corporation. The 80 G Certificate is offered to donors who wish to make a financial contribution to a non-profit organisation. In fact, by contributing to such an entity, the donor is entitled to a 50% tax break because the amount is deducted from their Gross Total Income. In order to benefit from the exemption, the donor must also include a signed receipt of the donation. The name of the charity, the date of the donation, and the PAN will all be included on such a receipt.

A charity donation or a donation to a relief fund can be claimed as a tax deduction under section 80G of the income tax act. This clause, however, does not allow for the deduction of any form of contribution. The only donation that qualifies as a deduction is one made to a designated fund.

Any taxpayer, whether an individual, a corporation, a partnership, or another entity, can claim a deduction under this section.

The deduction is only available if the contribution was made in cash or by check or draught. This clause does not allow for a deduction for in-kind contributions.

Section 12A

A tax exemption is provided by Section 12 A of the Internal Revenue Code for income or amounts received by a nonprofit organisation. When a trust/society/section 8 company registers under section 12A of the Income Tax Act, they are eligible for an exemption when filing their income tax return.

Trusts, NGOs, and Section 8 enterprises are all eligible for a one-time tax exemption under Section 12 A of the 1961 Income Tax Act. Organizations that are registered under section 12A are exempt from paying tax on their surplus income. Non-governmental organisations (NGOs) are charitable and non-profit organisations. They do, however, earn money and, if not reported under Section 12A of the Income Tax Act, are required to pay tax at the standard rate.

It can be used in conjunction with each other or independently. If a corporation is willing to file both applications independently, the first application for registration under section 12A should be filed first. To apply for registration under the Income Tax Act of 1961, Section 80G, you must first get a 12A registration.

The Private Security Agencies Regulation Act, 2005, popularly known as PSARA, governs the operation of the private security agencies.

After the PSARA (act) is enacted, it is compulsory for a security agency to obtain a license from the State Controlling Authority concerned before starting the business and, in the event of non-compliance, the law provides for severe penal consequences. When the state applies to the competent authority for a license to establish a private security agency. The PSARA License is issued to operate in or for the entire State in one or more districts of a particular State.

No individual or private security agency is permitted under the guidelines of this act to run a business of providing security services to other private business establishments, individuals, or property.

PSARA guidelines and runs in accordance with those regulations. In addition, the entity which holds a PSARA Certificate of Registration is more trustworthy in the eyes of its potential customer.

Benefits of PSARA

a. Makes the training company strong

b. Draws more customers

c. Don't deny rights and services

d. Helps to gain future consumer trust

e. Boosts business reputation

f. Ensures the organisation's smooth running