THINGS TO KNOW ABOUT E-ASSESSMENTS

Image result for income tax assessmentCBDT issues an instruction for conducting the scrutiny assessments electronically. As per the instruction, except search related assessments, all scrutiny assessments shall be conducted only through the ‘E-Proceeding’ functionality available at e-filing website of Income-tax Dept.

The Board has laid down the procedures to be followed by the tax officers to conduct the scrutiny assessment electronically. Ten-things to know about this instruction and e-Proceeding facility of Income-tax Dept. are as under:

  • All the communications with the taxpayers shall be signed digitally by the tax officer and it will be delivered to a taxpayer in his e-filling account.
  • On receipt of Dept. communication, taxpayer would be able to submit the response along with the attachments by uploading the same on e-filing portal.
  • All the submissions and replies should be made by the taxpayer till office hours on the date stipulated for compliance.
  • The response submitted by the taxpayer can be viewed by the concerned tax officer electronically in Income-tax Business Application (ITBA) Module.
  • The facility for electronic submission of documents shall be automatically closed 7 days before the time barring date.
  • Upon conclusion of hearing in assessment proceedings but before passing the final order, the concerned tax officer shall close the e-submission facility.
  • Not all proceedings shall be carried out electronically. A few proceedings can also take place manually, i.e., examining the books of accounts, examination of witness, etc.
  • The case-records and note sheets of proceedings is required to be maintained by the tax officer electronically.
  • This electronic proceedings shall be carried out by the tax officers for Limited Scrutiny (in case of CASS1), Complete Scrutiny (in case of CASS) and Compulsory Manual Scrutiny.
  • The taxpayer friendly measure would substantially reduce the compliance burden for the taxpayers as it would enable them to submit response to the Departmental queries electronically as per their convenience.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

How to file return under UAE VAT

Image result for uae vat return format

As per the official site of Ministry of Finance, UAE, majority of the business entities will be required to file the VAT returns on quarterly basis, within one month/28 days from the end of the respective quarter.

USE OF ACCOUNTING SOFTWARE

The business in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file.

UPLOAD RETURN

On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form.

After generating the VAT return file, you need to login to the FTA’s e-tax portal using the credentials. Using the e-tax portal upload option, you need to browse and select your return file.

VAT RETURN FORMAT     

The VAT return file should be in XML or MS Excel format.

Auto Fill VAT Return Details.

Once the file is uploaded, you need to click ‘Auto Fill VAT Return’ which will auto-populate the details from the VAT return file to the VAT return form in the FTA’s e-tax portal.

VALIDATE OR AUTHENTICATE

Once this button is clicked, the FTA portal will validate or authenticate whether the uploaded file has been created by a certified tax accounting software. If the file is authenticated, only then the details will be auto-populated into the VAT return form. If the file is not authenticated, it will be rejected and an appropriate error message will be displayed.

Once the VAT return file is authenticated, you are required to fill the other details required by FTA and submit.

CORRECTION IN RETURN

Correction of errors made in previous return period can be carried out. The taxable person must disclose this error to the FTA within 30 days of becoming aware of this error and include in the  Tax Return to be submitted immediately after noticing and correcting the error.

PENALTY FOR LATE FILLING OF VAT RETURNS

Late filing of return may attract penalty. The administrative penalty will not be less than 500 Dirhams but not exceeding three times the amount of tax in respect of which the administrative penalty was levied.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

corporate and professional updates 5th Feb 2018

Image result for corporate and professional updates

RBI Update:

The Reserve Bank of India has imposed a monetary penalty of Rs. 0.50 lakh (Rupees Fifty thousand only) on The Sircilla Co-operative Urban Bank Ltd., Sircilla, Telangana, in exercise of the powers vested in it under the provisions of Section 47A (1) (b) read with Section 46 (4) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), for violation of Reserve Bank of India directives and guidelines on Exposure Norms and Statutory/Other Restrictions and Know Your Customer (KYC) Norms/Anti-Money Laundering(AML) Measures. Vide press release 2017-2018/2094, dated 1st February 2018

Direct Tax:

Hyderabad ITAT upholds assessee’s liability to deduct tax at source u/s. 195 on payment of sale consideration for immovable property to non-resident vendors (based in US) during AY 2010-11, however, rejects Revenue’s invocation of Sec. 50C (which deems stamp duty valuation as sale consideration) while determining TDS liability of assessee;  [TS-32-ITAT-2018(HYD)]

ITAT Delhi held that if own funds are more than investment in shares, such investment has to be treated to be out of own funds and hence interest expenditure is not required to be allocated to exempt income on proportionate basis as per Rule 8D of the Income Tax Rules. The ACIT, circle-1(1), Gurgoan V. Cairn India Ltd.

Indirect Tax:

CBEC made amendment in Custom Act, 1962(52of 1962) by way of notification no  57/2017- Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 798 (E), dated the 30th June, 2017. Vide notification no 22/2018, dated 2nd February 2018

GST UPDATE

E-Way Bill postponed due to Technical Glitches. The Central Government has decided to postpone the implementation.

CBEC has issued  9 UTGST Tax Rate, 10 Integrated Tax (Rate) and 9 Central Tax (Rate) Notifications which in total amount to 27 Notification to give effect to Changes in GST Rate and its related Provision as recommended by 25th GST Council Meeting.

FAQ on GST:

Query:What is the implication of GST in respect of duty paid goods removed before the appointed date and returned after the appointed date?

Answer:If any duty paid goods are sold/removed not being earlier than six months of appointed date under the earlier law are returned within six months of the appointed date, the seller is eligible for refund of duty paid if the sales is made to unregistered buyer, if the sale is to a registered buyer then he will have to charge GST as a supply. In case goods are returned after six months from the appointed date, tax is payable by the person receiving the goods as purchase from unregistered supplier and a registered person will have to charge GST as supply as normal.

Other updates

SEBI will now be able to impose a minimum penalty of Rs 5 crore on stock exchanges and clearing corporations if they breach regulations as announcements for the capital markets in the Union Budget 2018.

SBI Invites Applications for Empanelment of Chartered Accountant Firms for Concurrent Audit at State Bank of India.

Key Dates:

Payment of TDS/TCS deducted/collected in Jan: 07/02/2018

Taxpayers with annual aggregate turnover more than Rs.1.5 crore need to file GSTR-1 for December on monthly basis: 10/02/2018

Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 for December on quarterly basis: 10/02/2018

Quotes of the day:

A broken trust can is described as melted chocolate. No matter how hard u tries to freeze it, it will never return to its true shape.

When you find a dream inside your heart don’t ever let it go because, Dreams are the seeds from which beautiful tomorrows grow.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

Highlights of Union Budget 2018-2019

Image result for budget 2018 for salaried

  • Slab rates kept same.
  • Education Cess and SHEC rates increased to 4% from existing 3%.
  • Charitable / Religious Trusts claiming exemption under section 11 & 12 or under section 10(23C) for a business conducted by them will be needed to follow the provisions of section 40(a)(ia), 40A and 40A(3) i.e. TDS compliance to be ensured, Cash payments to restrict within limits of Rs. 10,000 only.
  • Salaried assessee to avail a standard deduction of Rs. 40,000/-
  • Payment received on termination or modification of terms and conditions of a contract relating to business now to attract taxation.
  • A businessman converting stock in trade into capital asset has to pay the tax on the appreciation.
  • Number of amendments made in the Income Tax Act to give sanctity to the ICDS applicability like:
    • Marked to market losses as per ICDS to be permissible under section 36.
    • Foreign exchange difference in revenue items arising as per ICDS applicability to be recognised as profit or loss.
    • Insertion of section 43CB proposed to provide validity to the applicability of percentage completion method on construction contracts.
  • Immovable property relating stamp duty valuations having impact under section 43CA, 50CA and 56(2)(x) relaxed to the extent of 5% difference of the consideration received or accruing as a result of transfer.
  • Changes in income computation formula in case of truck and loading tempo operators under section 44AE for heavy goods vechile Rs. 1000 per ton of gross vehicle weight formula on per month basis to be adopted and for other vehicle Rs. 7500/- as old provision to continue.
  • Reduction in scope of exemption claimable under section 54EC from any long term capital asset to the long term capital arising on account transfer of land or building or both only. Further the redemption period of bonds also proposed to be increased to 5 years.
  • An employee leaving the job may be in receipt of any compensation or other payment from any person in connection with such termination or for the modification of terms and conditions of such employment shall be taxable for the same as income by way of other sources, amendment proposed under section 56.
  • Certain amendments made under section 79, 115JB and 140 to acknowledge and provide relief in cases covered under the Insolvency and Bankruptcy Code 2016.
  • Health insurance premium contribution in case of senior and very senior citizens extended to Rs. 50,000/- : amendment under section 80D
  • Quantum of deduction under section 80DDB for medical treatment in case of a senior citizen and very senior citizen increase from Rs. 60,000 and Rs.80,000 respectively to Rs. 1,00,000/-
  • Increase in scope of section 80IAC by modifying the definition of ‘eligible business’ as to include even start-up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment or wealth creation. Further last dated of incorporation of business extended from 31.3.2019 to 31.03.2021.
  • Relation of minimum number for days of employment of an employee to 240 days also relaxed to just 150 days in case of footwear or leather products even.
  • New deduction section 80PA proposed to be inserted to provide 100% deduction to Producer Companies from eligible business being marketing of agricultural produce grown by the members or purchase of agricultural implements, seeds, livestock or other articles intended for agriculture or processing the agricultural produce of the members.
  • Section 80TTB to be inserted to provide relief to senior citizens in respect of income arising in form of interest from banking company, cooperative society and post office to the extent of Rs. 50,000 for a financial year. However in such case the benefit of section 80TTA shall not be available.
  • Proposed insertion of section 112A to tax long term capital gain arising on account of transfer of listed shares and units of equity oriented mutual fund units @ 10% on an amount exceeding Rs. 1 lakh. However cost for such purposes prima-facie to take color from fair market value as on 31.01.2018.
  • Dividend in the nature of section 2(22)(e) also to attract dividend distribution tax on company @ 30%.
  • Alignment of dividend distribution tax rates on dividends distributed by various kinds of mutual funds under section 115R.
  • Prima-facie adjustment under section 143(1) on account of mismatch between form 26AS and form 16 or 16A not to take place wef AY 2019-2020.
  • New sub-section (3A) proposed to be inserted under section 143 to bring up an e-assessment procedure as per Budget Speech of Hon’ble Finance Minister.
  • ICDS further strengthened by making necessary amendment in section 145A.
  • New section 145B proposed to provide certain exceptions of taxation in certain special cases.
  • No TDS from senior citizen resident payees for payment of interest on time and recurring deposits upto Rs. 50,000 during a financial year.
  • No substantial amendments in assessment, TDS, TCS, remedies and penalty procedures.

Union Budget 2018

The proposed tax rates for the next financial year 2018-19

Tax Rate* for an individual for the A.Y. 2019-20
Income Rates of Income-tax
Individual (Age less than 60 Years) Senior Citizen (Age above 60 Years) Super Senior Citizen (Age above 80 Years)
1 Up to Rs. 2,50,000 Nil Nil Nil
2 Rs. 2,50,000 to Rs. 3,00,000 5% Nil Nil
3 Rs. 3,00,000 to Rs. 5,00,000 5% 5% Nil
4 Rs. 5,00,000 to Rs. 10,00,000 20% 20% 20%
5 Above Rs. 10,00,000 30% 30% 30%

*The above rates are exclusive of surcharge and cess.

A resident individual, whose taxable income does not exceed Rs. 3, 50,000, can claim a tax rebate under section 87A. The amount of rebate shall be lower of 100% of income-tax or Rs. 2,500.

Tax Rates* for Corporate Assessee for the A.Y. 2019-20
Status of Taxpayer Rates of income-tax
1 Firms/Local Authority 30%
2 Domestic Company 30%/25%#
3 Foreign Company 40%
# Tax rate is 25% if turnover or gross receipts of the domestic company in the previous year 2016-17 doesn’t exceed Rs. 250 crore

*The above rates are exclusive of surcharge and cess.

Tax Rates* for Co-operatives Societies for the A.Y. 2019-20
Income Rates of income-tax
1 Up to Rs. 10,000 10%
2 Rs.10,000 – Rs.20,000 20%
3 Above Rs. 20,000 30%

*The above rates are exclusive of surcharge and cess.

*Rates of Surcharge
Particulars Taxable Income
50 Lacs to 1 Crore 1 Crore to 10 Crores Exceeding 10 Crores
Individuals/HUF 10% 15% 15%
Firm/ Local Authority/ Co-operative Society Nil 12% 12%
Domestic Company Nil 7% 12%
Foreign Company Nil 2% 5%
Co-operative Societies Nil 12% 12%

*The health &education cess at the rate of 4% shall be computed on aggregate of Income-Tax and Surcharge.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

GST E-WAY BILL ROLLOUT DEFERRED DUE TO TECHNICAL GLITCHES

Image result for eway bill

LATEST UPDATE ON E-WAY BILL

E-Way Bill: In view of difficulties faced by the trade in generating e-way bill due to initial tech glitches, it has been decided to extend the trial phase for generation of e-way bill, both for inter and intra-State movement of goods. Eway Bill for inter state movement of Goods will be applicable w.e.f. 21.2.18…As per latest information..

E -way bill

E-way bill is an electronic way bill for movement of goods which can be generated on GSTN portal. E-way bill contains the details of transported goods besides the name of consignor and consignee of such goods. It is the evidence of genuineness of supply of goods from one place to another.

E-way bill is required to be generated for consignment of goods of value exceeding Rs 50000. (Generating an e-way bill for consignments valuing less than Rs 50000 is optional)

Who can Generate GST E-Way Bill? 

  • If a taxable person is registered under GST wants to transport goods using own vehicle or hired vehicle as a supplier or to be received in the course of business as a recipient, the taxable person can generate a E-Way Bill in Form GST INS-1 electronically on the GST Common Portal by providing information requested in Part B of FORM GST INS-01.
  • If a transporter is involved in the transfer of Goods, then the taxable person registered under GST must furnish information about the consignment in Part B of FORM GST INS-01 on the GST Common Portal. Using this information, the transporter would then generate a E-Way Bill on the basis of the information provided by the taxable person in Part A of FORM GST INS-01. Transporters are allowed to generate and carry E-Way bill even if the value of the consignment is less than Rs.50, 000.
  • Finally, any unregistered person transferring goods to a taxable person under GST can also generate e-way bill in FORM GST INS-01 on the GST Common Portal

Validity of E-Way Bill

Distance Valid for
Upto 100 km 1 day
100 km or more but less than 300 km 3 day
300 km or more but less than 500 km 5 day
500 km or more but less than 1000 km 10 day
More than 1000 km 15 day

 CANCELLING OF GST E-WAY BILL

Once a GST E-Way Bill is generated but goods were not transported or are not being transported, then the GST e-way bill can be cancelled through the GST portal or through a GST Facilitation Centre within 24 hours of generation of the e-way bill.

Exceptions to E-way bill requirement

No e-way bill is required to be generated in the following cases

  • Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017
  • goods being transported by a non-motorized conveyance;
  • goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs
  • in respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State;
  • Consignment value less than Rs. 50,000/

Goods worth more than Rs.50, 000 are transported from one place to another an e-way bill is required. In case goods are transported without an e-way bill, the goods can be seized by a GST officer and penalty could be levied.

MISTAKE AND WRONG ENTRY IN E-WAY BILL

If there is mistake, incorrect or wrong entry in the e-way bill, then it cannot be edited or corrected.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATES 2-Feb-2018

Image result for corporate and professional updates

Salient Features of Finance Bill, 2018

  1. No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax. However Education cess is being increased from 3 to 4 % to be known as Education and Health cess.
  2. However  for Domestic Companies having total turnover or  gross receipts  not exceeding  Rs 250 crores in Financial year 2016-17 shall be liable to pay tax at 25% as against present ceiling of Rs 50 crore in Financial year 2015-16.
  3. Long term Capital gain exemption under section 10(38) in respect of listed STT paid shares being withdrawn.
  4. However capital gain up to 31.1.2018 shall not be taxed as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
  5. Tax on STT paid long term capital Gain will be 10% under Section 112A. Further such tax will be liable for TDS.
  6. Standard Deduction of Rs 40,000 for salaried employees. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800.
  7. Provision of Section 43CA, 50C and 56(2) (x) being amended to allow 5% of sale consideration in variation Vis a Vis stamp duty value. On account of location, disadvantage etc.
  8. Provision of section 40(IA) and 40A (3) and 40A (3A) are being made applicable to Charitable Trust. Hence expenditure incurred without deduction of tax and in cash will not be eligible as application of income under section 10(23C) and section 11(1) (a).
  9. Agriculture Commodity Derivative income /loss also not to be considered as speculative under section 43(5).
  10. Income Computation and Disclosure Standards (ICDS) being given statutory backing in view of decision of Delhi High Court decision.
  11. Marked to market loss computed as per ICDS to be allowed under section 36.
  12. Gain or loss in Foreign Exchange as per ICDS to be allowed under new section 43AA.
  13. Construction Contract income to be computed on percentage completion method as per ICDS.
  14. Valuation of Inventory including Securities to be as per ICDS.
  15. Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
  16. Conversion of stock in trade to capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.
  17. 54EC benefit of investment in Bonds to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.
  18. PAN to be obtained by all entities including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2, 50,000 or more. All directors, partners, members of such entities also to obtain PAN.
  19. All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.
  20. Assessments to be E assessment under new section 143(3A).
  21. No adjustment under section 143(1) while processing on account of mismatch with 26AS and 16A.
  22. Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.
  23. Penalty for non filing financial return as required under section 285BA being increased to Rs 500 per day.

FAQ on GST:

Query: Will the out-of-pocket expenses charged by professionals to claim reimbursement of expenses incurred by them for rendering services to their clients be included in the transaction value?

Answer: Yes. Any expenses incurred by the supplier relating to supply until the services are delivered, and which are charged to the recipient, will have to be included in the transaction value.

GST UPDATE

GST: E-way bill implementation deferred due to glitches.

MCA Update:

MCA informs that to access DSC related services of MCA, new settings are required effective from Feb 03, 2018.

Direct Tax:

Supreme Court held that even if the entire expenditure incurred for acquisition of a capital asset is treated as application of income for charitable purposes u/s 11(1)(a) of the act, the assessee is also entitled to claim depreciation u/s 32. Revenue’s argument that the grant of depreciation amounts to giving double benefit to the assessee is not acceptable. {CIT vs. Rajasthan And Gujarati Charitable Foundation Poona (Supreme Court)}

ITAT Kolkata held that the entire profit credited to the partners’ accounts in the firm would be exempt from tax in the hands of such partners, even if the income chargeable to tax becomes NIL in the hands of the firm on account of any exemption or deduction as per the provisions of the Act.  {Shri Vinod Agarwal Vs. Pr. C.I.T. Central (ITAT Kolkata)}

Quote of the day

“It is fellow’s viewpoint, and he understands ours, then we can sit down and work out our differences understanding that gives us an ability to have peace. When we understand the other.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

 

 

A quick glance on Impacted the Economy & Taxation on Budget 2018

Image result for budget 2018 india

Arun Jaitey recalls the measures — like GST, FDI, demonetisation, etc. — taken by the NDA government in the past four years that have impacted the economy of the country. 

The government estimates 7.2-7.5% GDP growth in second half of the current FY18.

Fiscal deficit for 2017-18 at 3.5% and projected for 2018-19 at 3.3%

Divestment target for 2018-19 has been set at Rs 80,000 crore

Proposed spending on rural infra is Rs 14.34 lakh crore.

Rs 5 lakh per family annually to be given for medical reimbursement under the National Health Protection Scheme.

Impact on Taxation in Budget 2018

  • No change in Tax Rate. All persons including individuals, HUF, Firms and Companies to pay same tax. However Education cess is being increased from 3 to 4 % to be known as Education and Health cess.
  • However  for Domestic Companies having total turnover or  gross receipts  not exceeding  Rs 250 crores in Financial year 2016-17 shall be liable to pay tax at 25% as against present ceiling of Rs 50 crore in Financial year 2015-16.
  • Long term Capital gain exemption under section 10(38) in respect of listed STT paid shares being withdrawn.
  • However capital gain up to 31.1.2018 shall not be taxed as cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
  • Tax on STT paid long term capital Gain will be 10% under Section 112A. Further such tax will be liable for TDS.
  • Standard Deduction of Rs 40,000 for salaried employees. However benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800.
  • Provision of Section 43CA, 50C and 56(2) (x) being amended to allow 5% of sale consideration in variation Vis a Vis stamp duty value. On account of location, disadvantage etc.
  • Provision of section 40(IA) and 40A (3) and 40A (3A) are being made applicable to Charitable Trust. Hence expenditure incurred without deduction of tax and in cash will not be eligible as application of income under section 10(23C) and section 11(1) (a).
  • Agriculture Commodity Derivative income /loss also not to be considered as speculative under section 43(5).
  • Income Computation and Disclosure Standards (ICDS) being given statutory backing in view of decision of Delhi High Court decision.
  • Marked to market loss computed as per ICDS to be allowed under section 36.
  • Gain or loss in Foreign Exchange as per ICDS to be allowed under new section 43AA.
  • Construction Contract income to be computed on percentage completion method as per ICDS.
  • Valuation of Inventory including Securities to be as per ICDS.
  • Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
  • Conversion of stock in trade to capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.
  • 54EC benefit of investment in Bonds to be restricted to Capital gain on land and building only. Further period of holding being increased from 3 years to 5 years.
  • PAN to be obtained by all entities including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2, 50,000 or more. All directors, partners, members of such entities also to obtain PAN.
  • All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.
  • Assessments to be E assessment under new section 143(3A).
  • No adjustment under section 143(1) while processing on account of mismatch with 26AS and 16A.
  • Deemed dividend to be taxed in the hands of the company itself as Dividend Distribution of tax @ 30%.
  • Penalty for non filing financial return as required under section 285BA being increased to Rs 500 per day.
  • PAN to be used as Unique Entity Number for non- individuals from April 1.
  • Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.

INDUSTRIAL IMPACT  ANALYSIS

  • This budget will accelerate economic growth, it is focused on all sectors: PM Modi
  • Prime Minister Narendra Modi praises his finance minister Arun Jaitley for delivering a budget that is “farmer friendly, common citizen friendly, business environment-friendly and development friendly.”
  • Govt’s health scheme to cover 10 crore poor families is world’s largest government-funded health protection scheme.
  • Arun Jaitley proposed to tax long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation.
  • Electronic IT assessment will be rolled out across the country, leading to greater efficiency and transparency: FM
  • Mobile phones set to become costlier as custom duty on them has been increased to 20 per cent.
  • Health and education cess has been increased to 4 per cent.
  • For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000: FM Jaitley
  • FM Jaitley proposes to introduce tax on distributed income by equity oriented mutual funds at 10 per cent.
  • Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses: FM Jaitley
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent: FM
  • Arun Jaitley says that the government does not propose any changes in tax slabs for the salaried class this year.
  • FM proposes a fiscal deficit of 3.3% of GDP for 2018-19.
  • Finance Minister Arun Jaitley proposes revising emoluments as per the following structure:– Rs 5 lakh for the President of India
    — Rs 4 lakh for the Vice President
    — Rs 3.5 lakh for the Governors
  • Jaitley also proposes automatic revision of emoluments of Parliamentarians every five years, indexed to inflation.
  • We have already exceeded our disinvestment target, announces Arun Jaitley.
    Disinvestment target for 2017-18 has been exceeded and will reach Rs 1 lakh crore. Target for 2018-19 is Rs 80,000 crore.
  • 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access.
  • Government will take all steps to eliminate use of cryptocurrencies which are funding illegitimate transactions.
  • Govt announces Amrut program to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth Rs 19,428 core will be awarded: FM
  • NITI Aayog will establish a national programme to direct our efforts in the area of Artificial Intelligence towards national development: FM
  • Airport capacity to be hiked to handle 1 billion trips every year.
  • Arun Jaitley says that 4,000 km of new railway track will be laid down by 2019.
  • All railways stations with footfall more than 25,000 to have escalators, says the Finance Minister.
  • Mumbai transport receives Rs 40,000 crore.
  • The government will undertake redevelopment of 600 major railway stations across the country.
  • Arun Jaitley announces capital expenditure of Rs 1,48,528 crore for Indian Railways in 2018-19.
  • National Heritage City Development Augmentation Scheme has been undertaken to preserve and protect heritage cities in the country, announces the Finance Minister.
  • Government to contribute 12 per cent of EPF contribution for new employees in all sectors: FM
  • Infrastructure is the growth driver of economy: Jaitley
  • Target of 3 lakh crore for lending under PM Mudra Yojana: FM
  • MSME enterprises are a major element for growth, says Jaitley. He also added that mass formalization of MSME sector is happening after demonetization and GST.
  • Govt will launch health scheme to cover 10 crore poor families, Arun Jaitley says.
  • The Government is slowly but steadily progressing towards universal health coverage
  • Government aims to bring 60 crore bank accounts under the Jan Dhan Yojana.
  • Eklavya schools to be started for Scheduled Tribe populations: Finance Minister
  • Rs 600 crore allocated to Tuberculosis patients undergoing treatment.
  • Govt will set up two new Schools of Planning and Architecture, says Finance Minister Jaitley.
  • To tackle brain drain, Jaitley announces scheme to identify bright students pursuing B Tech in premiere engineering institutes, and providing them higher-education opportunities in the IITs and IISc. These students will receive handsome fellowships, and will be expected to dedicate a few hours to teach in higher education institutions weekly.
  • Specialized railway university to be set up at Vadodara.
  • Jaitley proposed integrated BEd programmed for teachers: “training of teachers during service is essential.” Technology will be the biggest driver in improving the quality of education.
  • Budget allocates money for social security and protection programme for all widows and orphaned children.
  • We have a target to provide all Indians with their own homes by 2022, says Jaitley.
  • Ujjwala scheme to amplify targets, will now provide 8 crore rural women free LPG connections.
  • Air pollution in Delhi-NCR has been a cause of concern, govt has proposed subsidized machinery for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh and NCT Delhi.
  • Govt of India will take necessary measures to put in place measures for the state government to purchase surplus solar power produced by local farmers at suitable prices.
  • Arun Jaitley proposes a sum of Rs 500 crore for ‘Operation Green’ on the lines of ‘Operation Flood’.
  • Food processing sector is going at an average of 8 per cent per annum.
  • We have been saying it for years that India is primarily an agricultural country: Jaitley
  • Arun Jaitley on Minimum Support Price of agricultural products: Only increasing the MSP is not enough, the government will fix the MSP of agricultural products at 1.5 times the market rate.
  • Our emphasis is on generating higher benefits and productive employment for the farmers: Jaitley while addressing the agricultural sector in his Budget speech 2018.
  • Our government has worked sincerely, and without weighing the political costs, hoping that benefits are delivered to people at their doorsteps. The Direct Benefit Transfer system of India is a success story that is reiterated across the world: Jaitley.
  • This year’s Budget will particularly focus on agriculture, says Jaitley.
  • The finance minister also pointed out that India is one of the fastest-growing economies in the world.
  • Indian economy has performed very well since our government took over in May 2014, says Arun Jaitley.

SECTOR WISE ANALYSIS IN BUDGET 2018

budget impact on Banking and Financial Sector

The government’s decision to impose long-term capital gains tax on equity investments may dent investor sentiment for financial services companies, life insurers and providers of mutual fund products including IDFC Ltd., Reliance Capital Ltd., Aditya Birla Capital Ltd., ICICI Prudential Life Insurance Co Ltd., HDFC Standard Life Insurance Co Ltd., General Insurance Corp of India

budget impact on Defense Sector

Jaitley praised the armed forces and promised an industry-friendly policy to promote defense production as he addressed parliament. But there was no indication of a huge boost to defense spending. Companies such as Bharat Forge Ltd. may not see a boost.

Impact of budget on agriculture sector  

Farmers have been protesting across the country. This budget promises to raise the minimum price offered to farmers for crops, while investing heavily in agricultural markets across India. It also delivers more money for rural areas, including irrigation projects and aquaculture projects, and directs state governments to purchase extra solar power generated by farmers using solar-powered pumps. Agriculture-focused companies such as Shakti Pumps India Ltd., Jain Irrigation Systems Ltd., KSB Pumps Ltd., Kirloskar Brothers Ltd., Avanti Feeds Ltd., Waterbase Ltd., JK Agri Genetics Ltd., PI Industries Ltd. could benefit.

Health Care Providers

The government’s new flagship National Health Protection Scheme, which aims to insure as much as 500 million people for up to 500,000 rupees a year of care, could benefit companies such as Apollo Hospitals Enterprise Ltd., India’s largest hospital company, as well as Fortis Healthcare Ltd.

Effect of budget on Transport Companies

With Jaitley promising record infrastructure spending on roads and railways, construction and engineering firms, as well as train wagon-producers, could benefit. That includes Larsen & Toubro Ltd., Hindustan Construction Co Ltd., NCC Ltd., IRB Infrastructure Developers Ltd., Dilip Buildcon Ltd., Titagarh Wagons Ltd., and Cimmco Ltd.

FOR Consumer Companies in budget

With boosted spending on India’s vast hinterland, fast-moving consumer goods companies such as Hindustan Unilever Ltd., Britannia Industries Ltd. and Marico Ltd.could benefit as day laborers get jobs and disposable income. Other companies with rural exposure include: Hero MotoCorp Ltd., Mahindra & Mahindra Ltd., Larsen & Toubro Ltd.

Budget effect on Jewelers

Gold necklaces hang on display at a jewelry store in Pune. With 60 percent of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

Impact of budget on Airports

With the government pledging to expand regional airport construction, firms such as GMR Infrastructure Ltd. and GVK Power & Infrastructure Ltd. could benefit.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

REPORTING OF FORM FC-TRS TO RBI

Image result for fdi

RBI Circular No. 40 dated 1st February, 2016; RBI has made it mandatory to report any transactions and filing of forms online in respect of issue and transfer of shares from an Indian Entity to outside India.

FORM-FC-TRS

Foreign investors can invest in Indian companies by purchasing / acquiring existing shares from Indian shareholders or from other non-resident shareholders. General permission has been granted to non-residents / NRIs for acquisition of shares by way of transfer.

Any transfer of shares takes place between a resident and a non-resident, the resident individual or the entity has to report the transaction to RBI by filing of Form FC-TRS online at https://www.ebiz.gov.in. The reporting of Form FC-TRS should be submitted to the AD category bank within a period of 60 days from the date of receiving the money.

Process 

a) Download form from Pre-filled Form FC-TRS from https://www.ebiz.gov.in

b)Fill the required details of the Investee Company

(i) Name of the Company

(ii) PAN of the Company

(iii) Address of the Company

(iv)Telephone Number of the Company

(v) Fax Number of the Company

(vi) Email ID of the Company

(vii) Main Business Activity of the Company as per the NIC Code  2008 series

c)Enter the Details of the Buyer

(i) Name of the Buyer

(ii) Address of the Buyer

(iii) Telephone Number of the Buyer

(iv) Email ID of the Buyer

(v) Nature of the Investing Entity

(vi) Date and Place of Incorporation of the Investing Entity

d)Details of the Seller

(i) Address of the Seller

(ii) Telephone Number of the Seller

(iii) Email of the Seller

(iv) Name of the Disinvesting Entity

e)Enter the details of the Foreign Investment in the Company.

f)Mandatory Attachments

(i) Declaration by the Non-resident Buyer

(ii) KYC Form in respect of Non-resident Investor

(iii) Copy of FIRC (To be procured from Bank receiving the remittance)

(iv) Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker

g)Once the form is completed in all respects without any error; the Name, Designation, Place, and Digital Signature of the Declarant is to be attached

After following all the above steps the form is now ready to be uploaded on the Ebiz portal. Upon uploading the Form an “Application Number” is generated instantly and it can be used to keep a track of the status of the Form.

It has to be well kept in mind that merely uploading the Form does not mean that all the compliances have been fulfilled, the compliance shall deem to be complete only after approval by the Reserve Bank of India (RBI).

General Instructions

  • The electronic form (Form) can be accessed from service landing page and can be filled offline
  • If you choose “Load prefill data” option while opening the form, then some fields may get prefilled with data you have filled previously while applying for this service. You may change this data if you wish.
  • The saved draft can be accessed later from “My Saved Drafts” section in Menu options. This draft is available for 3 months or until the form is submitted.
  • Field marked with * are mandatory and needs to be filled in before a form can be submitted on e-Biz portal. You may not be able to leave some of the field’s blank in the e-Form. In case you wish not to enter data in a field, please input “NA” if it is a text/description field or a 0, if it is a numeric field.
  • The e-form needs to be digitally signed using a digital signature by the applicant. If applicant wishes to make any modifications to an already signed e-Form, right-clicking on the signature field and choosing “Clear signature” will enable editing of form and any modifications can be made to the form


Electronic Attachments:

Upload the file using the attach link and if you wish to remove any file, use the remove link.

  1. Reason for delay in submission: this attachment is required if the form is submitted after 30 days from the date of receipt of funds
  2. CS Certificate

III. Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.

  1. Disclaimer certificate
  2. Statutory Auditor Certificate
  3. Board resolution

VII. LRN(Loan Registration Number) allotted

VIII. Copy of FIPB approval (if required)

  1. Transfer of shares details, if applicable

 

If the investor and remitter are separate entities, please provide the following documents:

  1. No objection certificate from the remitter for  the shares being allotted to the third party mentioning their relationship
  2. Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf

XII. Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter

XIII. KYC report for the beneficiary

 

Any other attachments: Add any other document if required.

 

Verification:

Enter the following details in this section:

  1. Name of the Person
  2. Name of the Place
  3. Date of signing the electronic form
  4. Designation.
  5. Digital Signature of Authorized signatory of the investee company.

Disclaimer:  The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

 

QUICK REVIEW ON E-WAY BILL

Image result for e way bill 

E -way bill

E-way bill is an electronic way bill for movement of goods which can be generated on GSTN portal. E-way bill contains the details of transported goods besides the name of consignor and consignee of such goods. It is the evidence of genuineness of supply of goods from one place to another.

E-way bill is required to be generated for consignment of goods of value exceeding Rs 50000. (Generating an e-way bill for consignments valuing less than Rs 50000 is optional)

When should an E-Way Bill be generated?

E-way bill is required to be generated for any movement of goods, due to any of following reasons:

  • In relation to supply
  • For reasons other than supply
  • For inward supply from an unregistered persons

Who can Generate GST E-Way Bill?

  • If a taxable person is registered under GST wants to transport goods using own vehicle or hired vehicle as a supplier or to be received in the course of business as a recipient, the taxable person can generate a E-Way Bill in Form GST INS-1 electronically on the GST Common Portal by providing information requested in Part B of FORM GST INS-01.
  • If a transporter is involved in the transfer of Goods, then the taxable person registered under GST must furnish information about the consignment in Part B of FORM GST INS-01 on the GST Common Portal. Using this information, the transporter would then generate a E-Way Bill on the basis of the information provided by the taxable person in Part A of FORM GST INS-01. Transporters are allowed to generate and carry E-Way bill even if the value of the consignment is less than Rs.50, 000.
  • Finally, any unregistered person transferring goods to a taxable person under GST can also generate e-way bill in FORM GST INS-01 on the GST Common Portal

Cancelling a GST E-Way Bill

E-way bill will also be allowed to be generated or canceled through SMS.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Once a GST E-Way Bill is generated but goods were not transported or are not being transported, then the GST e-way bill can be cancelled through the GST portal or through a GST Facilitation Centre within 24 hours of generation of the e-way bill.

Validity of E-Way Bill

Distance Valid for
Upto 100 km 1 day
100 km or more but less than 300 km 3 day
300 km or more but less than 500 km 5 day
500 km or more but less than 1000 km 10 day
More than 1000 km 15 day

Exceptions to E-way bill requirement

No e-way bill is required to be generated in the following cases

  • Transport of goods as specified in Annexure to Rule 138 of the CGST Rules, 2017
  • goods being transported by a non-motorized conveyance;
  • goods being transported from the port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs
  • in respect of movement of goods within such areas as are notified under rule 138(14) (d) of the SGST Rules, 2017 of the concerned State;
  • Consignment value less than Rs. 50,000/

Goods worth more than Rs.50, 000 are transported from one place to another an e-way bill is required. In case goods are transported without an e-way bill, the goods can be seized by a GST officer and penalty could be levied.

Documents Required for Transport under GST

In addition to the GST E-Way Bill, a person in-charge of conveyance of goods is required to carry the following documents for inspection by authorities at any time:

  • Invoice or bill of supply or delivery challans and invoice reference number from the GST common portal, obtained by uploading a copy of the GST tax invoice issued in FORM GST INV-1.
  • Copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device (RFID) embedded on to the vehicle. in such manner as may be notified by the

CONSOLIDATED E-WAY BILL

Consolidated e-way bill is a document containing the multiple e-way bills for multiple consignments being carried in one conveyance (goods vehicle). That is, the transporter, carrying the multiple consignments of various consignors and consignees in one vehicle wherein he is required to carry one consolidated e-way bill instead of carrying multiple e-way bills for those consignments.

A transporter can generate the consolidated e-way bills for movement of multiple consignments in one vehicle.

Consolidated EWB is like a trip sheet and it contains details of different EWBs which are moving towards one direction, and these EWBs will have different validity periods.

Hence, Consolidated EWB is not having any independent validity period. However, individual consignment specified in the corresponding EWB in the Consolidated EWB should reach the destination as per its validity period of that individual EWB.

Latest updates on e- way bill

The GST council in earlier meeting in October had decided that E-way bill would be introduced in staggered manner from January 1 and subsequently nationwide from April1.

In the recent 25th GST council meeting was finally decided that the e-way bill is now introduced and will be applicable from 1st February 2018 across the nation.

The states can opt to follow the e-way bill system any time before 1st June 2018 From 1st June 2018 e-way bill rules will uniformly apply to all states.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)

 

KEY HIGHLIGHTS OF THE COMPANIES (AMENDMENT) BILL, 2017

Image result for company law amendment

  1. Name reservation in case of new company Incorporation shall be valid for 20 days from date of approval instead of 60 days from the date of application.
  1. In case of Change of Name of existing Company, Name Reserved by the ROC shall be valid for 60 days from the date of Approval.
  1. Partnership firm, LLP etc. with 2 or more partners (previously 7) can be converted into Private Limited Company.
  1. Every company shall have registered office within 30 days of incorporation instead of current requirement to have registered office within 15 days.
  1. Notice of every changes of situation of the registered office shall be given to ROC within 30 days instead of 15 days as currently provided.
  2. Sweat equity shares can be issued at any time currently it can be issued after 1 year from commencement of business.
  1. In addition to Directors & KMP, any employee of the company can also authenticate company documents as authorized.
  1. Annual General Meeting of unlisted company can be held anywhere in India.
  1. Wholly owned subsidiary (WOS) of a company incorporated outside of India is now allowed to hold EGM outside India.
  1. No central govt. approval required for payment of remuneration in excess of 11% of net profit.
  1. Money received under the private placement shall not be utilized unless the return of allotment is filled with the ROC.
  1. Companies which have defaulted in repayment of deposits, can also also accept deposits after a period of 5years from the date of making good the default.
  1. An amount being not less than 20 % of the amount of deposits, maturing during the following financial year be deposited on or before the 30th day of April each year and kept in a separate bank bank account [i.e. deposit repayment reserve account].
  1. Central govt. Can provide any other number to be treated as DIN like Aadhar or Pan.
  1. Requirement related to resident director director eased i.e.’stay in India for a total period not less 182 days during the financial year’ .
  1. Requirememt of filing of form DIR 11 (Filing of a copy of resignation to ROC by director itself) made optional.
  1. Where a director incur any of disqualification under section 164(2) due to default of filing of financial statement or annual return or repayment of deposit or pay interest or other mentioned in section, than he shall be vacate office of the director in all the companies other than the company which is in default.
  1. Elegibilty for doing CSR to be determined based on preceding “Financial Year” instead of “three preceding Financial year”;
  1. The requirement related to annual ratification of appointment of auditor by members is omitted.
  1. The Requirement of MGT-9 ie. extract of Annual Return to form part of Board’s Report, has been omitted.Instead the copy of Annual Return shall be uploaded on the website of the Company, if any, and its link shall be disclosed in the Board’s Report.
  1. CG will prescribe an abridged Board Report for One Person Company and small company.
  1. Disclosure which have been provided in the financial statement shall not be required to be reproduced in the Board Report again.
  1. Disclosure by promoters and top 10 shareholders with respect to 2% change in shareholding in a listed company has been omitted.
  1. In case delay in filing documents, fact or information required to be submitted under section 92 (Annual Return) or 137 (copy of financial statement), after expiry of prescribed period a flat additional fee of Rs.100 per day shall be paid instead of slab wise additiinal fee.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associates , a leading Tax & Investment Planning Advisory Service Provider. His blog can be found at http://carajput.com/blog/ For any query you can write to info@carajput.com. Hope the information will assist you in your Professional endeavors. For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 480)