Key Highlights of RACP Bill, 2020 and Companies (Amendment) Bill,2020

Direct Tax

Highlights of Redevelopment Assistance Capital Program (RACP)  Bill, 2020  

www.carajput.com; RACP Bill, 2020

www.carajput.com; RACP Bill, 2020

1) New requirements for reregistration of charitable trusts etc. Approval under section 10(23)(C).

It is suggested that Re-registration u / s 12A/12AA and 80 G come into force from 1st April 2021 from the earlier extended date of 1st Oct 2020.

2) Extension of the time period to 31st march 2021 from 30th Nov for ITR Filing for the Assessment Year 2020-21.

3) Extension for furnishing a Certificate u / s 192 from 15 August to 31-3-2021.

4) As per section 54 to 54 GB

  1. The Extension of the time period to 31st Dec 2021 from 29th Sept for compliance or completion.
  2. The Extension of the time period to 31st march 2021 from 30th Sept for completion or compliance.

5) Chapter-VI A pursuant to heading B-

  1. The Extension of the time period to 31st Dec 2020 from 30th July for the compliance or completion.
  2. The Extension of the time period to 31st March 2021 from 31st July for the compliance or completion.

 6) As per Vivad ke vishvas Act-20

  1. Extension of Time Period to 31st Dec 2020.
  2. Extension of Time Period to 31st march 2021 from 31st Dec 2020 for completion or compliance.

7) Extension of the time period to 31st march 2021 from 30th Sept. For ITR filing for the Assessment Year 2019-20

8) No expansion of the tax payments.

9) Interest rate 3/4 percent pm or part thereof for late payment of taxes. (Only if tax payable is over Rs.1 lac)

10) Extension of the time period to 31st march 2021 from 31st Oct for Filing of Audit Report under the Provision for Assessment Year 2020-21.

11) Return for TDS / TCS is to be extended to 31st March 2021 for Feb & March-20 and Q 4 for March 20 (as applicable) for all the Sub-sections.

12) No liability shall be imposed & No evaluation be disciplined for the delay in paying taxes.

Explanation-The delay period refers to the interval between the due date and the payment time.

In Addition,

Further improvements are also suggested in the Income Tax Act.

Companies (Amendment) Bill, 2020

Highlights of Companies (Amendment) Bill, 2020

www.carajput.com; Comapnies Amendment Bill, 2020

www.carajput.com; Companies Amendment Bill, 2020

On Saturday, Lok Sabha introduced the company law amendment bill, which introduced 72 amendments to the Companies Act, 2013 to decriminalize and modify or abolish fines for different offenses, directed at enhancing the ease of doing business.

New chapter for Producer Company

Introduction of a new Chapter XXIA in the act related to Manufacturer Companies, which was originally part of the Companies Act of 1956;

Reduced penalty for Small companies, OPC and Start-Up companies

For extended the applicability of section 446B, referring to lesser penalties for small businesses and one-person companies, to all provisions of the Act which attract financial penalties and also extend the same reward to Producer Companies and start-ups

Direct Listing in foreign Jurisdiction

Allowing provisions for the direct listing of Indian public entities’ shares in allowable foreign jurisdictions

Update in the definition of Listed Company

Empowering the government to exclude private companies issuing specified classes of shares on exchanges from the concept of a listed company, in conjunction with the Securities and Exchange Board of India.

Remuneration for Qualified Director and NED

Furthermore, it is recommended that the exception given to main administrative roles from government-mandated pay limits in case a corporation faces liquidation be applied to cover independent directors as well.

Decriminalization of Companies Act

  • To comply with an in-house arbitration tribunal process, 23 compoundable offenses must be recategorized out of 66 compoundable offenses under the Act. Moreover, there will be seven compoundable offenses omitted.
  • 35 complex offenses, referred to as non-compoundable, include fraud, public interest damage or deception.
  • 48 sections have been modified to render decriminalization and 17 sections have been modified to improve living comfort;
  • These 66 violations, according to the law, were minor, technological or administrative violations and did not include fraud, harm to the public interest or other non-compoundable offence. That will also reduce the pressure on the Law Tribunal for the National Corporation.

Fresh Bench in NCLAT

It also allows for the creation of additional National Corporate Law Appeal Tribunal benches at locations designated by the Centre.

 Corporate social responsibility ( CSR)

Bill provisions allowed undertakings to carry over excess corporate social responsibility ( CSR) spending on successive years and exempted undertakings with a CSR requirement below Rs 50 lakh from the need to constitute a CSR committee.

Regards

Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

NEW REQUIREMENTS INCLUDING IN CARO 2020 REPORTING

NEW ADDITIONAL REQUIREMENTS INCLUDING IN THE CARO 2020 REPORTING AFTER ON CONSULTING ON WITH THE NFRA

www.carajput.com; CARO2020

www.carajput.com; CARO2020

Statutory Auditor’s Report (CARO 2020) shall include a statement a New Reporting Requirements

The existing COVID-19 pandemic affects not only public health but also the financial system as a whole. Public safety measures in place, although necessary are a huge hit to the economy’s liquidity flow leading to serious problems such as unemployment, a failure of the supply chain, a sudden drop in demand, unavailable inventories, etc.

The Government provides various relief and relaxation measures to boost businesses and the economy. In the same sense, the MCA has postponed from FY 2019-20 to FY 2020-21 the applicability of the Companies (Auditor’s Report) Order, 2020 [CARO 2020].

The Statutory auditor’s report (CARO 2020) shall include the following statement on the below matters, which are mention below:

www.carajput.com;CARO2020 Disclouser

www.carajput.com; CARO2020 Disclouser

  • Registration U/s 45-IA of RBI Act
  • Total Cash losses information
  • Information about the tangible and intangible assets
  • Cost records Maintenance
  • Total of statutory liabilities Deposit
  • Completed unrecorded income which is required to be disclosed,
  • Information of Default in repayment of borrowings
  • Details of Compliance in respect of deposits accepted
  • Details of transfer to fund specified under Sch- VII of Co. Act
  • Qualifications or adverse auditor remarks in other group companies
  • information of resignation of statutory auditors during the year
  • any material uncertainty on meeting liabilities of the company.
  • information of inventory and working capital
  • complete details of investments, any guarantee or security or advances or loans given
  • Compliance in respect of a loan to directors
  • Funds raised and utilization
  • Any Fraud & whistle-blower complaints
  • Any pending Compliance by a Nidhi Company.
  • Complete details Compliance on transactions with related parties
  • Implementation about Internal audit system
  • Non-cash dealings with company directors

In cases where the answer given by the Statutory auditor to any of the above requirements is unfavorable or negative, The auditor’s report shall then also set out the basis for such unfavorable or qualified response. In addition, in cases at which the auditor is unable to give an opinion on any defined issue, the report shall state such fact together with the purposes why the auditor can not give an opinion on the same.

CARO 2020 Applicability on which of the Companies.

To improve the scope of the audit, the CARO 2020 was published by the MCA in consultation with the NFRA. It contains a list of topics that the relevant companies are obliged to report on.

CARO 2020 applies to all  St. Audits beginning on or after 1 April 2020 which relates to the financial year 2019-20. The order applies to all companies covered under CARO 2016. Accordingly, the order requires all companies except the following companies which have been expressly prohibited from their jurisdiction:

  • Companies registered for charitable purposes
  • Small companies (Companies with paid-up capital less than/equal to Rs 50 lakh and with a last reported turnover which is less than/equal to Rs 2 Cr)
  • Insurance companies
  • One person company
  • Banking companies
The Below Private Limited Companies are also exempt from CARO’s, 2020 requirements:
  • Whose gross receipts or revenue (including revenue from discontinuing operations) is less than or equal to Rs 10 Cr in the financial year
  • Whose paid-up share capital plus reserves is less than or equal to Rs 1 CR as on the Balance sheet date (i.e. usually at the end of the financial year )
  • Not a holding or subsidiary of a Public company
  • Whose borrowings is less than or equal to Rs 1 Cr at any time during the financial year

CARO, 2020 (Applicable from FY 2019-20)-Changes made

www.carajput.com; CARO2020

www.carajput.com; CARO2020

  • Fixed Assets/ Property, Plant, and Equipment

# Reporting over maintenance of records of Intangible assets have been specifically added.

# Leased Immovable property is specifically excluded from the reporting over the holding of title deeds in the Company’s name. If owned Immovable property is not held in the Company’s name, Dispute status and details of the registered owner need to be reported.

# In the case of EPP revaluation, the auditor must determine that the same has been achieved on the basis of the Reported Interest survey. Changes ought to be recorded if 10% or more of the adjustments are made in the WDV.

  • Inventory

# Inconsistencies recognized by management with an effect of 10% or more of the inventory value need to be reported.

# In the case that the Corporation has a working capital limit of more than INR 5 Crores depending on the security of the current assets (e.g. Stock, Debtors), the auditor must report that the regular filings (e.g. Financial Accounts, Debtors Listing) made with the lender are in compliance with the books.

  • Undisclosed Income:

# The auditor must disclose whether or not any income has been returned under the Income Tax Act, 1961 and the same has been duly accounted for in the books of accounts.

  • Default in repayment of loans

# The auditor must determine that the company is considered to be a “Willful defaulter.”

# Information on the removal of term loans from allowable use needs to be published.

# Data has been given on how short-term loans have been used for long-term purposes.

# The auditor must comment on all money taken to meet the commitments of the community business.

# Reporting on loans received by the Firm was made on the basis of the commitment of shares issued by the Firm to shareholders, Joint ventures and associates.

  • Fraud reporting

# Fraud reporting has been extended to fraud against the Company by any person rather than by officers or employees in the past.

# The fraud report issued by the auditors in the form ADT-4 to CG should be reported.

# The auditor has to record his evaluation of “Whistle Blower” allegations.

# The auditor must report whether the internal audit system exists within the company and whether or not the internal audit reports have been considered.

# The particulars of the proceedings (pending/initiated) under the Benami Law need to be published.

  • Consolidated Financial Statements

# Details of consolidated companies with qualifications or adverse reactions in the CARO report must be reported along with Paragraph Number of the auditor with audit report on Consolidated Financial Activities.

  • Non-Banking Financial Activities

# The auditor must report on the conduct of financial activities of an NBFC nature by the company without valid Certificates and reporting.

  • Cash Losses

# The auditor will document whether the Company has suffered CASH LOSS during the current AND preceding financial year and the volume of such cash loss.

# The resignation of the statutory auditor and the causes, problems with him duly considered by the incoming auditor or not; must be published.

  • Financial Ratios

# The goals of the Organization to meet its Existing Obligations on the basis of percentages, maturity and plans for execution must be stated.

  • Corporate Social Responsibility:

# The Auditor will disclose that the unexpended amount has been allocated to the designated fund within 6 months of the end of the fiscal year and whether or not the pending project balance has been moved to a special account. (Amendment itself under the Corporations Act, not yet told in 2013).

APPLICABILITY OF ANNEXES TO THE AUDITOR’S REPORT:

  1. Annexure of the CARO Report is not needed in the case of Small Business, Banking Firm, Insurance Company, Section 8 Company, One Person Company, and any private company having paid-up capital and free assets to INR 1 crores as at the balance sheet date and borrowing up to INR 1 crores at any time during the year and revenue up to INR 10 crores as per the financial reporting of the year mentioned.
  2. Annexure of the Internal Financial Control Report is not required in the case of Small Company, One Person Company, AND any Private Company with Turnover up to INR 50 Crores as per the financial statements of the year concerned and borrowing up to INR 25 Crores at any time during the year.

CONCLUSION:

According to CARO 2020, disclosure is required as to whether any qualifications or adverse remarks have been made by the respective auditors in the CARO reports of the companies included in the consolidated financial statements, if yes, the company details and the CARO report sentence numbers usually contain the qualifications or adverse remarks should be noted. The CARO 2020 is supposed to substantially increase the overall standard of the audit reports on the company’s financial statements and thereby contribute to greater accountability and confidence in the company’s financial affairs. It is inevitably expected to increase the inflow of investment by and in Indian companies.

In summary, we would like to say that the auditor’s reporting expectations are expanding substantially. Hoping this would lead to more public accountability between the company and its shareholders and hence the auditor needs to make sure he’s more perspective and especially while performing his duties.

Click here to access the overview of the MCA Order on CARO, 2020 dated 25.02.2020.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

New Corporate & Professional Update May 2020

New Corporate & Professional Update:

www.carajput.com; Corporate Updates

www.carajput.com; Corporate Updates

“Ups and downs are part of life, but to change this time of crisis into a time of opportunity is what gives us a special identity”

Holding this in mind, let us begin by reflecting on our mission and dream, and let us ensure that we have made no mistake in complying with the organization. A few General Conformities referred to in the attached photo. The business and the industry that varies in their wise compliance.

KEY PRACTICAL TAKEAWAYS:

Income Tax:

# CBDT has issued Circular No. 12/2020 dated 20.05.2020 in order to exempt B2B suppliers with 95% or more receipts through non-cash mode to not maintain prescribed payment modes as per Section 269SU such as POS, UPI, UPI-QR, etc.

Note-These assesses can disable these facilities if they are not in operation.

# CBDT released Notification No. 25/2020 dated 20.05.2020 to ensure that the ‘Safe Harbor Principles’ applied in the case of Overseas Transactions shall extend to FY 2020-21 in the same manner as those applied in previous years.

# In the case of a company that opts to pay tax under the “New 22% Scheme” under Section 115BAA, the MAT credit standing in the books must be written off because you will not be eligible to claim the same amount.

Note-Carefully opt for the scheme as the blind application of the 22% tax would eventually cause you a loss.

# TDS The rates have been lowered by 25 percent of the current rates, e.g. 14.05.2020. Here are a few clarifications in this regard:

  • The rate cut shall not extend to TDS for non-residents u / s 195.
  • The rate cut does not occur in non-PAN cases (20 percent FLAT rate) or 206AA cases.
  • The decrease in the TDS rate will apply to invoices due or payments made on or after 14.05.2020, even if the invoice date is before 14.05.2020. What you’ve got to do is “Due or Fee.” When all days occur on or after 14.05.2020, the reduced rate will apply.

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In fact, the due date of the tax assessment in the case of ALL the assesses has been extended to 31.10.2020.

Note-In brief, we should assume that irrespective of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are valid.

# For the calculation of depreciation under the Income Tax Act, 1961 for the year 2019-20, consider the following:

  1. Remember the effect of the “Leap Year” (i.e. 29.02.2020) on the estimate of 180 days. This period taking 100 percent depreciation for assets underuse after “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets underuse after “04.10.2019.”
  2. In the case of a company, whether you take the “22% tax limit” or 115BAA, do not take the “additional depreciation” deduction.

Goods & Services Tax:

# The government. Subsequently, the amendment to Section 140 of the CGST Act 2017 was notified in order to provide the legislative authority to have a time limit for the claim of transitional credit and the invalidation of Delhi HC ‘s decision to offer a time limit for the claim of transitional credit until 30.06.2020.

# whilst still trying to prepare GSTR-9 (Annual Return) for FY 2018-19, in scenario you have paid less tax in your GSTR-3B, you will have to pay the balance tax along with Interest by filing DRC-03 through the common portal.

Note-If paid in DRC-03, the auditor shall not recommend any responsibility in GSTR-9C.

# GST Portal has allowed the Input Service Distributor (ISD) facility to change negative ITC to its Units in the event that no ITC is to be delivered for a month and ISD is needed to distribute ITC reversal via CN.

# Filing of GST Return is compulsory along with payment in case of opting for 15 days relaxation of GSTR-3B filing for taxpayers with a revenue of more than INR 5 crores.

Note-If you pay tax under Cash Ledger and do not file GSTR-3B within the due date + 15 days period, you will have to pay interest at 9 percent before 24.06.2020.

Corporate & Allied law:

MSME Definition: MSME is divided into two main categories:

  1. Manufacturing enterprise; and
  2. Service enterprise.

They are described as below in terms of investment in plant and machinery/equipment.

www.carajput.com;MSME

www.carajput.com; MSME

Illustration 1.

  • Investment: 50 Lakhs
  • Turnover: 4 Cr

As investment is less than 1 Cr and Turnover is less than 5 Cr. It fulfilled both conditions of the Micro category. Hence, it is a Micro-Enterprise.

Illustration 2.

  • Investment: 2 Cr
  • Turnover: 4 Cr

As investment is more than 1 Cr. Therefore, it is outside the purview of Micro Enterprise. As investment is less than 10 Cr and Turnover is less than 50 Cr. It fulfilled both conditions of the small category. Hence, it is a Small Enterprise.

Illustration 3.

  • Investment: 2 Cr
  • Turnover: 60 Cr

As turnover is more than 60 Cr. Therefore, it is outside the purview of Small Enterprise. As investment is less than 20 Cr and Turnover is less than 100 Cr. It fulfilled both conditions of the medium category. Hence, it is a Medium Enterprise.

# In the case of a corporation formed between 01.01.2020 and 31.03.2020, there is no annual compliance with FY 2019-20 except for the appointment of an auditor to the Board of Directors (no requirement for ADT-1) and the submission of an ITR. In other words, the following:

  • There is no need to schedule FS for these three months and the first FS will be prepared as of 31.03.2021.
  • There is no need to schedule the first AGM now and the due date of the First AGM will be 31.12.2021.
  • There is no need to file MGT-7 (Annual Return), AOC-4 (FS Filing).

Note-For the tax audit of these firms for these three months, Form 3CB-3CD (not 3CA-3CD) must be used.

# MCA explained w.r.t. timelines and length of name allocation, name transition, and resubmissions as follows:

  • Approved NEW Names from 15.03.2020 to 31.05.2020 will be held until 20.06.2020.
  • Approved CHANGE in Names expiring between 15.03.2020 and 31.05.2020 will be reserved until 30.07.2020.
  • Resubmission of any MCA type on which the last resubmission date expired between 15.03.2020 and 31.05.2020 has been extended until 15.06.2020.

# The government. Notified lowered PF prices (10 percent instead of 12 percent) for all workplaces for the months of May, June, and July 2020 for both employers and workers. If the employer contribution is still part of the CTC, you will take home 4 percent of the diminished contribution otherwise it will save 2 percent for the company and raise the employee ‘s profitability by 2 percent.

Note-You may also contribute more than 10%.

# In the case of an organisation where up to 100 workers are working and out of which 90 percent are paying less than INR 15,000, no employer and employee payment (24 percent) will be payable and the whole payment will be borne by the State. Before August 2020.

# In the case of other PF companies (not mentioned above), the Contractor and Employee share is expected to be charged at 10% each (means 20% instead of 24%) in June, July and August, 20.

# The government. Plans to extend the ESI Act to all businesses that have 10 or more employees and the region-wise provisions that have already been issued would expire.

# There is no need to file the ADT-1 form in the case of the first appointment of an auditor because the ADT-1 file is regulated by Section 139(1) and the first auditor is named pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

# In the event of the termination of the auditor, the new auditor named in place of the previous auditor may hold office only up to the next AGM date and not for a term of five years. You will name such an auditor again at the next meeting of the AGM.

Insolvency (IBC)

  • Debt accrued or sustained in a corona case shall not be included in the default.
  • No current insolvency up to 1 year
  • In the case of small and medium-sized companies, separate insolvency of 240A IBC and a minimum requirement of Rs . 1 Lakes to 1 Crore should be imposed.

Conveyance Deed Cancelled: Flat owners must sign their names in the Land Tax Card / Municipal Registry. This was accepted by the Maharashtra State Cabinet in Principle at its meeting held yesterday.

The New Legislation will be passed to Surpass The Continuation of the Conveyance Contract. Draft New Law will be Available in Few Weeks and the Law will be approved at the Budget Session or Monsoon session of the Maharashtra Legislative Assembly. Now experience Land Ownership along with Flat.

Supreme Court Decision on the transition of Flat to Nominee. Land Mark Judgment

  • Deceased Member Nominee is entirely entitled to Ownership through the transition to the Co-op Society.
  • Society Can’t Challenge the Right to Nominate a Land Law.
  • No legitimate inheritance, no court order or certificate of succession is required.
  • Please Circulate, Essential to Members of the Society and Office Bearers.
  • After the nomination is registered with the organization You Don’t Need
    1. To Prove Legal Heirship.
    2. No Further Court Order Required.
    3. No Succession Certification

Thus, Transfer to Registered Nominee is Automatic.

KEY DUE DATE:

Tax on income:

# 30.06.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Note-In the case of no such SFT activity, the tax audit assesses are required to file the “Preliminary SFT Reponse” on the e-filing platform by the said due date.

# 07.06.2020 is the due date for payment of TDS / TCS for the month of May 2020.

# 30.06.2020 is the due date for the TDS / TCS returns file for Q4 (F.Y. 2019-20).

# 30.06.2020 is the due date for the ITR / Revised ITR register for the 2018-19 fiscal year.

Note-The ITR for FY 2017-18 can not now be submitted as the due date for the paper lapsed.

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such substantial financial transactions as the issue of shares worth more than INR 10 lakhs.

Goods and Services Tax

# 04.06.2020 is the due date for filing GSTR-3B for the month of April 2020 in the case of taxpayers with a gross turnover of more than INR 5 crores in the previous year.

Note-You can delay filing above GSTR-3B until 24.06.2020 without any late fees but with 9 percent p.a. Responsibility for interest.

Corporate & Allied law:

# MCA has declared a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no further penalties will be paid during this time due to the late submission of any form submitted during this time.

We hope that no deadline will be skipped because of COVID-19.

Please feel free to return should you have any questions or uncertainty.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

NEW CORPORATE AND PROFESSIONAL UPDATE

NEW CORPORATE AND PROFESSIONAL UPDATE

CORPORATE AND PROFESSIONAL UPDATE DEC 26, 2016 |

DIRECT TAX: INCOME TAX:

# The due dates of ITR for FY 2019-20 have been extended to 30.11.2020 for all assesses. In addition, the due date of the tax assessment in the case of ALL the assesses has been extended to 31.10.2020.

Note-In brief, we can say that regardless of whether or not the assessee is subject to a tax audit OR TP audit, the above due dates are applicable.

# For the calculation of depreciation under the Income Tax Act , 1961 for the year 2019-20, know the following:

  • Recognize the effect of the “Leap Year” (i.e. 29.02.2020) on the measurement of 180 days. This year taking 100 percent depreciation for assets under use before “04.10.2019” instead of 03.10 earlier and 50 percent depreciation for assets under use after “04.10.2019.”
  • In the case of a company, if you take the “22% tax rate” or 115BAA, do not take the “additional depreciation” allowance.

# TDS The rates have been decreased by 25 per cent of the current rates, e.g. 14.05.2020. Here are a few clarifications in this regard:

  • The rate decrease shall not apply to TDS for non-residents u / s 195.
  • The rate cut does not extend to non-PAN cases (20% FLAT Limit) u / s 206AA.
  • The change in the TDS rate would refer on invoices due or purchases received on or after 14.05.2020, even though the invoice date is before 14.05.2020. What you’ve got to see is “Due or Payment.” If all dates occur on or after 14.05.2020, the reduced rate will apply.

INDIRECT TAX: GOODS & SERVICES TAX:

# Filing of GST Return is compulsory along with payment in case of opting for 15 days stress relief of GSTR-3B filing for taxpayers with a turnover of more than INR 5 crores.

Note-If you pay tax under Cash Ledger and do not file GSTR-3B within the due date + 15 days period, you will have to pay interest at 9 per cent before 24.06.2020.

Transitional Forms-Review of Form GST TRAN-01:

  1. The facility to revise Form GST TRAN-01 has been enabled for taxpayers who have already filed it.
  2. If the revision results in downward credit, the taxpayer should only be able to file it if he has a sufficient balance in his credit note.
  3. Taxpayers who register it for the first time will not be able to update it instantly.
  4. The TRAN-01 revision functionality for those who do not meet the above criteria will soon be enabled.

# GST Portal has enabled the Input Service Distributor (ISD) facility to adjust negative ITC to its Units in case no ITC is to be distributed for a month and ISD has to distribute ITC reversal through CN.

CGST: establishes the date for the coming into force of the provisions of Section 128 of the Finance Act 2020 relating to the amendment of Section 140 of the CGST Act, which stipulates the manner and time limit for the taking of transitional loans. In our opinion, they are pushing for this amendment following the judgment of the Delhi High Court of Reliance Electric Works in which it was held that the restriction term (3 years) is to be extended as no time limit has been laid down in the CGST Act.

CORPORATE & ALLIED LAWS:

# In the case of a company where up to 100 employees are working and out of which ninety percent are paying less than INR 15,000, no employer and employee contribution (24 percent) will be payable and the whole payment will be charged by the Government. Until August 2020.

# In the case of other PF organisations (not mentioned above), the Contractor and Employee share is expected to be charged at 10% each (means 20% instead of 24%) in June , July and August, 20.

# The government. Plans to extend the ESI Act to all businesses that have 10 or more employees and the region-wise provisions that have already been issued would expire.

# There is no need to file the ADT-1 form in the case of the first appointment of an auditor since the ADT-1 file is governed by Section 139(1) and the first auditor is appointed pursuant to Section 139(6) and not pursuant to Section 139(1) of the Companies Act 2013.

# In the event of the removal of the auditor, the new auditor appointed in place of the previous auditor may hold office only up to the next AGM date and not for a period of five years. You will name such an auditor again at the next meeting of the AGM.

Key DUE DATE:

# 07.06.2020 is the due date for payment of TDS / TCS for the month of May 2020.

# 30.06.2020 is the due date for the TDS / TCS returns file for Q4 (F.Y. 2019-20).

# 30.06.2020 is the due date for the ITR / Revised ITR file for the financial year 2018-19. Note-The ITR for FY 2017-18 cannot now be filed as the due date for the file lapsed.

# 04.06.2020 is the due date for filing GSTR-3B for the month of April 2020 in the case of taxpayers with a gross turnover of more than INR 5 cores in the previous year.

Note-You can delay filing beyond GSTR-3B until 24.06.2020 without any late fees but with 9 percent p.a. Responsibility for value.

# 31.05.2020 is the due date for filing Form 61A (SFT Compliance) in the event that you have such significant financial transactions as the issuance of shares of more than INR 10 lakhs. Note-In the event of no such SFT transaction, the tax audit assesses are required to file the “Preliminary SFT Response” on the e-filing portal by the said due date.

# MCA has revealed a “Moratorium Period” from 01.04.2020 to 30.09.2020 for the filing of ROC Forms and no additional fees will be charged for that period due to the late filing of any form due within that period.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

Summary of New MCA official updates under the Company Act 2013

Summary of New MCA official updates under the Company Act 2013

Companies Amendment Bill 2020 introduced in Lok Sabha - The ...

www.carajput.com; MCA update

Corporate & Allied Laws Update:

# MCA has released a notification that “ACTIVE non-compliant” corporations and “Deactivated DIN” holders can take full advantage of the moratorium term from 01.04.2020 to 30.09.2020 without any LATE FEES.

# 31.03.2020 is the latest due date of AOC-4, MGT-7 for F.Y. 2018-19 for companies with authority in UT J&K and Ladakh and NBFC (IND AS) Firms XBRL AOC-4 and MGT-7.

# In order to ensure Corona Preparations of Companies / LLPs, on 23.03.2020, MCA must deploy a web-form called CAR (Company Affirmation of Readiness for COVID-19) to be filed by all INSTANT Companies / LLPs.

# MCA also updated the rules of the Board of Directors to ensure that the Board of Directors may keep the “Video-Conferencing” facility for the acceptance of the financial reports, the Board report, etc. to be held until 30.06.2020.

# MCA has explained that corporations are allowed to conduct AGM by video conferencing (VC) or other audio and visual means. (Refer to MCA General Circular No. 20/2020 for specific details).

# MCA extended the date of registration of current directors at the Independent Director Databank from 30.04.2020 to 30.06.2020. Consequently, timely identification of the same is of primary importance. Note that MCA also charges a nominal fee of 5,900 per director for such registration. MCA also extended the deadline for the “Registration at the Independent Directors’ Portal” of the new Independent Directors.

# The Government has developed an online PF withdrawal system for “COVID-19 Outbreak” reasons through the EPF Member Portal or “Umang Mobile App.” You should withdraw the lower PF of:

  1. 75% of the total standing PF amount.
  2. Three months of Standard + DA.

# MCA has explained w.r.t. dates and duration of the name allocation, name change and resubmissions as follows:

  • No Licensed Business Names (New / Update) expiring from 15.03.2020 to 03.05.2020 must be retained until 23.05.2020.
  • Resubmission timelines of any MCA form for which the last resubmission date is from 15.03.2020 to 03.05.2020 has been extended to 18.05.2020.

RELIEF TO LISTED COMPLIANCE REPORTING COMPANIES ATTRIBUTABLE TO CORONAVIRUS:

LATEST DUE DATE-15.05.2020—QUARTERLY COMPLIANCE)

  • Furnishing Specifics of the shareholding structure (Q4 19-20) in compliance with Regulation 31 (Earlier Date-21.04.2020).
  • Furnishing Corporate Governance Statement (Q4 19-20) according to Regulation 27 (Earlier Date-15.04.2020).
  • Furnishing information of customer grievances (Q4 19-20) under Regulation 13(3) (Earlier Date-21.04.2020)

LATEST DUE DATE-31.05.2020 (Half-Year Compliance)

  • Furnishing Certificate of Compliance with Stock Exchange (HY2 19-20) according to Regulation 7 (Earlier Date-30.04.2020).

LATEST DUE DATE-30.06.2020-(Yearly Compliance)

  • Publication of financial results pursuant to Regulation 33 of the LODR Guidelines for Financial Publishing (Earlier Dates-15.05.2020 (Q4 Results) and 30.05.2020 (Annual Results)).
  • Secretarial compliance study under Regulation 24A for the year 2019-20 (earlier date-30.05.2020).

The Essential Points to be remembered with reference to the company incorporation in India with reference to current situation + “SPICE

  1. Both forms (Incorporation, AOA, MOA, AGILE-PRO) have to be filled out in a web-based facility and then copied, digitally signed and posted as before.
  2. “Check Form,” “Pre-Scrutiny” to be performed on a web-based database, so no modifications can be made to the downloaded files.
  3. “INC-9” (declaration by first subscriber) must always be submitted by a web-based facility only.
  4. “AGILE-PRO” is to be digitally signed only by a person who has signed the “Spice+” form and no other director will sign the same form.
  5. If you continue to apply for “Name Reservation” first, you should opt for 2 Proposed Names otherwise you might also proceed to the “Name with Incorporation” facility and then you can only propose One Name

# The GSTIN status applied through AGILE-PRO can be checked at the GST Portal from the MCA Forms SRN.

# Companies that enroll ESI and PF inside the SPICE+ package do not require compliance with the ESI and PF laws until the deadline for application is set.

Changes made in CARO, 2020 Applicable from the Financial year 2019-20

  1. Fixed Assets/ Property, Plant and Equipment

# Reporting over maintenance of records of Intangible assets have been specifically added.

# Leased Immovable property are specifically excluded from the reporting over the holding of title deeds in the Company’s name. If owned Immovable property is not held in the Company’s name, Dispute status and details of the registered owner need to be reported.

# In the case of EPP revaluation, the auditor must determine that the same has been achieved on the basis of the Reported Interest survey. Changes ought to be recorded if 10% or more of the adjustments are made in the WDV.

  1. Inventory

# Inconsistencies recognized by management with an effect of 10% or more of the inventory value need to be reported.

# In the case that the Corporation has a working capital limit of more than INR 5 Crores depending on the security of the current assets (e.g. Stock, Debtors), the auditor must report that the regular filings (e.g. Financial Accounts, Debtors Listing) made with the lender are in compliance with the books.

  1. Undisclosed Income:

# The auditor must disclose whether or not any income has been returned under the Income Tax Act, 1961 and the same has been duly accounted for in the books of accounts.

  1. Default in repayment of loans

# The auditor must determine that the company is considered to be a “Willful defaulter.”

# Information on the removal of term loans from allowable use needs to be published.

# Data has been given on how short-term loans have been used for long-term purposes.

# The auditor must comment on all money taken to meet the commitments of the community business.

# Reporting on loans received by the Firm was made on the basis of the commitment of shares issued by the Firm to shareholders, Joint venture’s and associates.

  1. Fraud reporting

# Fraud reporting has been extended to fraud against the Company by any person rather than by officers or employees in the past.

# The fraud report issued by the auditors in the form ADT-4 to CG should be reported.

# The auditor has to record his evaluation of “Whistle Blower” allegations.

  1. Internal Audit

# The auditor must report whether the internal audit system exists within the company and whether or not the internal audit reports have been considered.

# The particulars of the proceedings (pending / initiated) under the Benami Law need to be published.

  1. Consolidated Financial Statements

# Details of consolidated companies with qualifications or adverse reactions in the CARO report must be reported along with Paragraph Number of the auditor with audit report on Consolidated Financial Activities.

  1. Non-Banking Financial Activities

# The auditor must report on the conduct of financial activities of an NBFC nature by the company without valid Certificate and reporting.

  1. Cash Losses

# The auditor will document whether the Company has suffered CASH LOSS during the current AND preceding financial year and the volume of such cash loss.

# The resignation of the statutory auditor and the causes, problems with him duly considered by the incoming auditor or not; must be published.

  1. Financial Ratios

# The goals of the Organization to meet its Existing Obligations on the basis of percentages, maturity and plans for execution must be stated.

  1. Corporate Social Responsibility:

# The Auditor will disclose that the unexpended amount has been allocated to the designated fund within 6 months of the end of the fiscal year and whether or not the pending project balance has been moved to a special account. (Amendment itself under the Corporations Act, not yet told in 2013).

APPLICABILITY OF ANNEXES TO THE AUDITOR’S REPORT:

  • Annexure of the CARO Report is not needed in the case of Small Business, Banking Firm, Insurance Company, Section 8 Company, One Person Company and any private company having paid up capital and free assets to INR 1 crores as at the balance sheet date and borrowing up to INR 1 crores at any time during the year and revenue up to INR 10 crores as per the financial reporting of the year mentioned.
  • Annexure of the Internal Financial Control Report is not required in the case of Small Company, One Person Company, AND any Private Company with Turnover up to INR 50 Crores as per the financial statements of the year concerned and borrowing up to INR 25 Crores at any time during the year.

Click here to access the overview of the MCA Order on CARO, 2020 dated 25.02.2020.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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 ideas & prospects for CA’s practice to develop in 2020.

Top ideas & opportunities for the practice of New CA to be established in 2020.

www.carajput.com; 2020

www.carajput.com; 2020

Upon completion of the Chartered Accountant exam, candidates may either be working in a corporation as employees or may start their own professional practice. If you want to start your own company, you need to know first about the essential terms and conditions of the company. Many of the eligible CAs have this problem.

  • When I start working as a ca practice or join a job, which one is better for me.
  • How can I expand my CA practice?
  • What I need to do to offer professional services to my customers.
  • How do I keep my staff at my CA firm / LLP

Once you get going, the first thing you can hold in mind is Hard Working and Patience. These are two significant market drivers that will carry you to a new height of success. There are various market opportunities in the country that the Chartered Accountant can launch without spending a large amount of capital.

Working for oneself often seems to be more appealing than working for someone else. In addition to building a work-life harmony, you live and follow your own desires.

Before beginning your practice, it ‘s important to do your homework and ask yourself questions so that you can get a sense of direction and intent. Some of the things you should think about include:

  • Should I have the experience of working for a company and employees?
  • Do I have the capital to start a business?
  • Do I have a good view of my accounting business?
  • Do I have the strength to succeed?
  • Do I have the love of family members?
  • How am I going to set my work apart from that of other businessmen like me?

When you’ve answered these questions and know that you’re starting an accounting firm for all the right reasons,

The Chartered Accountant has played a significant role in the numerous branches of the business, such as auditing, taxation, tax planning, accounting, accounting, administrative management, and financial reporting. Here, we are explaining the right company start-up strategy:

  • Understand why you want to launch a Chartered Accountant profession
  • Create an in-depth strategic strategy
  • Choose the best type of finance;
  • You can obtain a franchise from the Taxation Technology Agency
  • Tax Advisory Services
  • Products with verification competence
  • Outsourcing of services
  • Open the Educational Course for Chartered Accounting
  • The GST market is a driver of funding for Chartered Accountant start-up
  • Subjects one can specialize in your Chartered Accountant practice area

Areas of Expertise in Your CA Practices: There are a variety of topics that you may specialize in, which are listed here:

  • DIRECT TAXES
  • INDIRECT TAXES
  • FEMA
  • FOREIGN TRADE POLICIES
  • CORPORATE FINANCING
  • LABOUR LAW REGULATIONS AND COMPLIANCES THEREOF
  • TURN OUT STRATEGIES
  • INTERNAL CONTROLS, SOX, AND OTHER ALLIED AUDIT SERVICES
  • ESOP AND PAYROLL RELATED SERVICES
  • ASSISTING IN ARBITRATION
  • MERGERS AND ACQUISITIONS M&
  • FORENSIC ACCOUNTING
  • PREPARATION FOR A FINANCIAL DUE DILIGENCE
  • SYSTEMS AUDIT IN A COMPUTERISED ENVIRONMENT
  • SUPPORT SERVICES FOR SOFTWARE DEVELOPMENT, TESTING, AND IMPLEMENTATION
  • MANAGEMENT OF FAMILY RUN BUSINESSES
  • PREPARATION FOR IPO

Note: Combine any of these possibilities together initially to acquire information. While you may have limited knowledge of conducting your Articleship, you may use the aid of qualified Chartered Accountants in different fields of expertise.

How to establish a Specialty in CA Practices:

After the practicalities of financial accounting are well known, the next step is to define the field of specialty that will require the following steps:

  • Identifying the content of the analysis in order to achieve an in-depth under-statement of the topic of specialization.
  • Identifying every particular course like crash courses in a given area.
  • Search for ways to teach the desired area of specialty and continue teaching.
  • Being affiliated with a big firm/organization where the preferred subject is still being practiced.
  • Going to attend lectures and sessions on the topic.
  • A person makes your influence known in a number of conferences, conferences on a specific subject by expressing your point of view and challenging conventional thought.
  • Full price Models and interviews with professionals and advisors.
  • Participation of posts to CA journals.
  • Subscribing to specialist journals in the field — domestic and worldwide.
  • Identify and follow best practices constantly

If you’d like to expand your practice to have a high type of expertise, you need to introduce more and more professionals with strong experience. Never add working or working partners. Since they will not be able to contribute to work, but will still have some hope, so you will always have to work harder to satisfy their demands.

Allow a strong difference between trained workers and collaborators, because they will operate on the same activities. Their duty and responsibilities should be explicitly outlined in order to bring an end to any future conflict.

ICAI going to issue the FAIS (Forensic Accounting and Investigation Standards)

ICAI is proposing to come up with a package of Forensic Accounting and Inquiry Standards (FAIS), said on Tuesday President Atul Kumar Gupta.

The new standards are expected to be ready by the end of December, numbering around 30 and will go a long way in raising the quality benchmark of forensic commitments, Gupta told a virtual press conference.

President Atul Kumar Gupta also said FAIS would be obligatory for CA Institute members and non-adherence would prompt disciplinary action. Even if a non-audit foreign company performs the forensic audit and inquiry, any employee of the CA Institute who signs the report will be expected to obey the FAIS, Gupta explained.

“We’ll be directed by who signatures the report of the forensic investigation and not by the company,” he said.

FAIS would also be helpful to law enforcement authorities, companies , banks and other stakeholders to understand standard standards and finer aspects in performing forensic accounting and enquiry commitments, he added.

The CA Institute will be the first organisation to create a full set of FAIS criteria for forensic professionals and stakeholders in the accounting world, he added.

The suggested guidelines would help Forensic Accounting and Investigation practitioners perform their tests in a highly competent way and obtain information that could be subject to high degree of review in a court of law, Gupta said.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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 points to the new formation of a company in India in ‘SPICE+’

New company Regulations Under Form SPICe Plus for the company incorporation in India

www.carajput.com; SPIC

www.carajput.com; SPIC

SPICe+ Simplification Company Formation process in India

Spice+ is a modern web-based form instead of the Spice form. MCA also introduced a new web-based form spice+ and extra authentication along with the form to make the company’s incorporation process simpler. The business will also apply for EPFO / ESI, GST numbers as well as this single window form. It is compulsory for all businesses in compliance with the Guidelines of the Ministry of Corporate Affairs on the issue of PAN, TAN, EPFO, ESIC, Qualified Tax (Maharashtra) and the opening of the bank account.

 Key Points to be recognized with respect to the company’s formation in India i.e ‘SPICE+’

  1. Both forms (Incorporation, AOA, MOA, AGILE-PRO) have to be filled out in a web-based facility and then copied, digitally signed and posted as before.
  2. “Check Form,” “Pre-Scrutiny” to be performed on a web-based database, so no modifications can be made to the downloaded files.
  3. “INC-9” (declaration by first subscriber) must always be submitted by a web-based facility only.
  4. “AGILE-PRO” is to be digitally signed only by a person who has signed the “Spice+” form and no other director will sign the same form.
  5. If you continue to apply for “Name Reservation” first, you should opt for 2 Proposed Names otherwise you might also proceed to the “Name with Incorporation” facility and then you can only propose One Name
  6. The GSTIN status applied through AGILE-PRO can be checked at the GST Portal from the MCA Forms SRN.
  7. Companies that enroll ESI and PF inside the SPICE+ package do not require compliance with the ESI and PF laws until the deadline for application is set.

Available features of “SPICe Plus Form” at MCA

Recently, the government has published the full significant features of the SPICe Plus form (SPICe+) in order to make clear the value of the form as well as the campaign for good visibility. SPICe Plus form (MCA Form SPICe+) is said to devote 10 services across 3 central government ministries and departments (Ministry of Labor & Department of Revenue in the Ministry of Finance, Ministry of Corporate Affairs). The new SPICe form is said to save precious time and procedure for the management of the individuals concerned and has been introduced with all existing companies since 23 February.

Emergence to the web-based SPICe + MCA Filing Form

SPICe+ Online form is a post-login system and current registered users will need to sign in to their account using their credentials. New users must first build a login account before using the service.

Apart from being an improved variant of the current SPICe, the form is capable of fulfilling multiple requirements such as name reservation, inclusion, DIN distribution, compulsory issue of PAN, TAN, EPFO, ESIC, qualified tax (Maharashtra) and bank account opening. You can also buy the GSTIN through the SPICe+ form.

Now the Reserve Special Name of RUN is only significant if the corporation wishes to replace its existing name with a new one.

MCA SPICe INC 32 V / S SPICe Plus

SPICe INC 32 – Single Code Helps:

  • Name reservation

  • Incorporation of a new company
  • Applying for Director Identity Number (DIN) designation

Form SPICe+ (SPICe Plus) – A Single Application Helps in:

  1. Name reservation
  2. Incorporation of a new company
  3. Applying for DIN allotment]
  4. Profession Tax (Maharashtra)
  5. Bank Account Opening
  6. TAN
  7. EPFO
  8. ESIC
  9. GSTIN

Features of SPICe+ make Simplification New Company Formation process in India

  • SPICe+ would be an integrated Web Form.
  • SPICe+ would have two parts viz.: Part A-for Name reservation for new companies and Part B offering a bouquet of services viz.
    (i) Incorporation
    (ii) DIN allotment
    (iii) Mandatory issue of PAN
    (iv) Mandatory issue of TAN
    (v) Mandatory issue of EPFO registration
    (vi) Mandatory issue of ESIC registration
    (vii) Mandatory issue of Profession Tax registration(Maharashtra)
    (viii) Mandatory Opening of Bank Account for the Company and
    (ix) Allotment of GSTIN (if so applied for).
  • Readers may choose whether to submit Part-A for reserve of a name first and then submit Part B for incorporation & other services or file Parts A and B together in one go for the incorporation of a new company and the use of a range of services as defined above.
  • A modern and user-friendly front-office interface for client integration applications (SPICe+ and related forms as applicable) is being developed.
  • Applications for incorporation (Part B) after name reservation (Part A) can be submitted as a streamlined phase in the continuation of Section A of SPICe+. Stakeholders will not be required to enter the approved name SRN as the approved name will be prominently displayed on the Dashboard and a click on it will take the user to continue the application via a hyperlink that will be available on the SRN / application number in the new dashboard.
  • Resubmission of applications for business name reservation and/or registration shall now be done by means of the form number / Name applied for on the new dashboard.
  • From 15 February 2020 onwards, the RUN service will only refer to the ‘change of name’ of an established company. 8. The new web form will allow on-screen file and validation of real-time data for the transparent incorporation of corporations.
  • The approved name and related incorporation information as set out in Part A will be immediately pre-filled in all linked forms, including AGILE-PRO, eMoA, eAoA, URC1, INC-9 (as applicable)
  • In order to ensure ease of processing, SPICe+ will be divided into various parts.
  • Information once entered can be saved and modified.
  • All Check Form and Pre-Scrutiny Validations (except DSC Validation) must take place on the web page itself.
  • After the SPICe+ has been filled in with all the necessary information, the same will have to be translated to a PDF file, with only a click of the mouse button, to show the DSCs.
  • All digitally signed documents will then be submitted along with the related forms as part of the current procedure.
  • Changes/modifications to SPICe+ (even after creating pdf and affixing DSCs) can also be rendered by modifying the same web form code that has been saved, producing and uploading modified PDFs to DSCs.
  • DSC authentication and other validations must take place at Upload Stage.
  • Enrollment for EPFO and ESIC shall be compulsory for all new companies established as of 15 February 2020 and no EPFO & ESIC registry numbers shall be issued separately by the respective agencies.
  • register for professional tax is also compulsory for all startup companies incorporated in the State of Maharashtra as of 15 February 2020.
  • All startups incorporated through SPICe+ (we.e.f. 15 February 2020) would also be required to obey for the establishment of the bank account of the company through the secure website linked to AGILE-PRO.
  • The declaration of all subscribers and first directors in INC-9 shall be self-generated in PDF format and shall only be submitted in electronic form in all cases, except where:
    • The overall number of subscribers and/or directors is more than 20 and/or more than 20.
    • Any such subscriber and/or director shall have neither DIN nor PAN.

Note: New companies formed by SPICe+ and thus acquired EPFO / ESI number would only have to file legal returns if they exceed the thresholds set by the applicable Laws.

Thus, we can state that New company Laws regulation under the SPICe Plus form easy for the company to be registered in India. 8. Concluding The EODB steps taken by the Government over the last few years have substantially accelerated the process of business incorporation. Their aim of a smooth and simple process is gradually becoming a reality. That, in the past, was a tiring process requiring months of work and labor. However, by making the best possible use of technology, a company can now be incorporated in a couple of days, making millions of dreams a truth in an hour’s time.

On Rajput Jain & Associates :

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

Everything about MCA Company Fresh Start Scheme (CFSS) 2020

www.carajput.com;MCA Company fresh start scheme,2020

Everything about MCA Company Fresh Start Scheme (CFSS) 2020

www.carajput.com;MCA Company fresh start scheme,2020

www.carajput.com; MCA Company fresh start scheme,2020

The Ministry of Corporate Affairs released Company Fresh Start Scheme 2020 full Circular 12/2020 dt.. 30.3.2020 which applies to both public and private corporations incorporated under the Companies Act 1956/2013.

The key provisions are as follows:-(1) Permits to register all outstanding refunds, accounts, records over any amount of years.

(2) It shall come into force on 1.4.2020 and shall remain in effect until 30 September 2020.

(3) It shall extend to all public or private entities who have not submitted any financial statements or records, including tax reports, for any amount of years as of the date of filing.

(4) Only the usual payments as they prevail on the date of filing shall be payable.

(5)No late charge, no fine, no investigation instead of regular fees owed.

(6) Prosecution where any outstanding is disposed of after payment

(7) The scheme shall not apply to those companies against which the final notice under section 248 has been given to ROC for cancelation or which have applied for cancelation or have been declared dormant; vanishing or dormant company or companies under CIRP.

(8) Companies who have canceled their names can not benefit from this scheme and must have their names restored;

(9) Companies that make use of this scheme for the purpose of I becoming inactive under Section 455 and also (ii) deleting their names

(10) After payment of the usual fees and the return of documents has been registered, an application shall be lodged electronically (without any fees) for the purposes of this scheme.

(11)Scheme grants immunity from filing forms and returns of records, but not from any disciplinary action by the organization for which ROC may be necessary.

It is a prime opportunity to register any remaining annual reports, plus any overdue annual returns, for any amount of years.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

New Online filing eForm DIR-3 eKYC Directors for FY 2019-20


New Online filing eForm DIR-3 eKYC Directors for FY 2019-20

www.carajput.com; MCA KYC Form

www.carajput.com; MCA KYC Form

Warning for registration of eKYC Directors for FY 2019-20

The last filing deadline for eKYC Directors for FY 2019-20 is 30 September 2020.

Last modification as of 31 March 2020 The holders of the DIN labeled ‘Deactivated’ shall have an extended period of time until 30 September 2020 for the submission of DIR-3KYC / DIR-3 KYC-Web without payment of Rs 5,000. Companies classified as “ACTIVE non-compliant” were granted an extension of time until 30 September 2020 to file eForm ACTIVE without a fee of Rs 10,000.

Who wants to sign the DIR-3 KYC eForm?

As per the recent announcement by MCA, any director who has been assigned a DIN by or on 31 March 2020 and whose DIN is in approved status will have to send his KYC data to the MCA. In fact, this process is also compulsory for disqualified directors.

What are the requirements for filing the DIR-3 KYC eForm?

  • Before filing an eForm, each Manager will have a separate personal mobile number and e-mail address. This number and e-mail address will be verified by an OTP (One-Time Password).
  • The second check here is that the director has to use his own digital signature before filing this eForm.
  • In addition, the third test to ensure that correct and relevant information is given would be that the eForm is accepted by a professional Chartered Accountant or Business Manager or Cost and Management Accountant.

eForm DIR-3 KYC – Deployment by KYC Administrators

Which are the thresholds involved in filing the DIR-3 KYC eForm?

  • Each Manager would need to have a separate personal mobile number and e-mail address before filing the eForm. This number and email address will be checked by an OTP (One-Time Password).
  • The second test here will be that the director needs to use his own digital signature before filing this eForm.
  • In fact, the third check to ensure that accurate and appropriate information is given should be that the eForm will be approved by a qualified Chartered Accountant or Company Secretary or Cost and Management Accountant.

DIR-3 KYC – Application for KYC of Directors

DIR-3 KYC Filing Guidance While filing your DIR 3-KYC form, you would need the following documents: • Nationality and Citizenship records, such as gender and date of birth.

Permanent Account Number (PAN) • Voters I d Card • Passport (mandatory if a foreign national holds a DIN) • Driving License • Aadhaar Card • Personal Phone • Personal Email Address • Home address.

DIR-3 KYC Filing Guide When filing your DIR 3-KYC form, you will require the following documents: • Ethnicity and Citizenship information such as gender and date of birth.

  • Copy of PAN
  • Copy of Voters card
  • Copy of Passport (Compulsory for a foreign national owns a DIN)
  • Copy of Driving License
  • Copy of Aadhaar Card
  • Copy of Mobile No
  • Copy of Email Address
  • Copy of Residential address.

In addition to the above, please keep the following items ready:

  1. Digital signature of the person filing of the application (applicant).
  2. Apostolic tradition of the documents described above by Practising Professionals such as CA, CS or Cost Accountants. In the case of foreign citizens, the documents must be approved by the specified authority.
  3. A declaration must be made by the applicant properly approved by the practicing professionals.

Attachments to be made The individual must submit the following documents. Until downloading, making sure to get these forms certified.

We can help in the matter of below with reference to IBC 2016

·        Corporate Insolvency Resolution Process

·        Claim Verification Team

·        Front End Team for Taking Over Control and Custody of Corporate Debtor

·        Corporate Insolvency Resolution Process

·        Team Legal Team

·        Finance and Accounts Team

·        Liquidation Process Team Resolution Plan

·        Facilitator Team Asset Sale Team

·        Human Resources Team

·        Information Technology Team

·        Support Services To Insolvency Professionals, Who Are Partners of

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)

Comprehensive Understanding Regarding the current Further Issue Of Share Capital On Under Right Issue Basis Section 62 of the companies act 2013

Comprehensive Understanding Regarding the current Further Issue Of Share Capital On Under Right Issue Basis Section 62 of the companies act 2013

www.carajput.com; Reliance industry

www.carajput.com; Reliance industry

Shareholders who, at any time, plan to increase their subscribed share capital the increase their share capital by selling shares to their current shareholders who, at the date of the bid, are the holders of the share capital of the company. In basic words, the right issue is an offer to the existing shareholders to buy the equity of the company in proportion to the current stock. It is the best way to encourage capital in a business. It is up to the owners whether or not they support it.

Unless the terms of the Article of the Company do not provide otherwise, the current owner still has the right to revoke this privilege for the benefit of some other individual. The firm sends the Letter of Offer to the owners of the company stating the number of shares offered and the time period during which the bid is to be approved. The time period recommended will not be less than 15 days, but not more than 30 days. In the case that no notice has been obtained from the shareholder side within the specified time period, the bid is considered to have been rejected.

The existing shareholder of the company to purchase additional shares at discounted prices in proportion to their existing holdings. A shareholder entitled to receive the share on the basis of the offer rate prescribed in the letter of offer. For eg, the bid ratio is 1:2 which means that the shareholder owning two shares is able to receive one share if he only has 3 shares and is entitled to receive 1 share. If he has 4 shares, he is entitled to 2 shares. Through this offer, corporations give shareholders the right, but not the duty, to buy new securities at a discount on the existing stock price.

In the case of non-acceptance of such a bid, the Board of Directors shall have the right to dispose of it in a manner that is not adverse to the owners and the company.

If, at any point, a company with a share capital intends to raise its registered capital through the issuing of additional shares; those shares shall be offered—

ON RIGHT BASIS: to existing shareholders in proportion to the company’s paid-up equity capital owned by them by means of a letter of offer.

PROCEDURE FOR ALLOTMENT OF SHARES On RIGHT ISSUE BASIS:

  • Note in writing to each Director at least seven days prior to the meeting of the Board of Directors. [Sec 173(3)] Pass the vote of the Board to accept the “Statement of Bid” The letter of bid also contains the right of renunciation.
  • Dispatch of the Letter of Offer to all current shareholders by registered post or speed post or by online means at least three days before the opening of the issue.
  • Convene a decision of the Board of Directors of the Pass Board to approve allocation and issue of shares.
  • Receive approval, renunciation, denial of rights of shareholders
  • Meeting of the Directors and Notification of Meeting of the Board of Directors given at least seven days prior to the meeting of the Board of Directors (Section 179(3)).
  • The meeting of the Board of Directors will be held in compliance with SS-1 to accept the Board of Directors’ Decision on the adoption of the “Letter of Bid.”
  • Letter of offer will be submitted to existing shareholders by registered post or by fast post or by online means, with proof of delivery to all current shareholders at least three days before the opening of the issue.
  • For the case of the “Public Business” file MGT-1 within 30 days from the date of the vote of the Council.
  • Register the return of allotment with Registrar in E-Form PAS-3 within 30 days of allotment of shares.
  • Register the return of allotment with Registrar in E-Form PAS-3 within 30 days of allotment of shares.
  • File E-form MGT 14 within 30 days of issuance of securities.
  • Addition to the E-Form PAS-3 I Board resolution on distribution and question of interest. (ii) Letter of Offer (iii) List of Allottes
  • List of Allottes attached to E-Form PAS-3 shall state the names, address, profession, if any, of the owner and the number of shares assigned to each of the allottes, and the list shall be certified as complete and accurate by the signatory of Form PAS-3 in accordance with the company’s records.
  • Issue of the share certificate over a span of two months from the date of issuance in the form-SH-1. Stamp duty paid within 30 days of the date of issue. Reasonable
  • In the case of a listed firm – Unless otherwise mentioned, SEBI (ICDR) Regulation 2009 shall apply where the aggregate value of the stated offer is fifty lakh roupies or more. Provided that provision of this Regulation does not apply to securities issued pursuant to Regulation 9(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

FEMA provisions allow Indian companies to issue, if any, the right shares to existing non-resident shareholders, subject to the sectoral cap. Furthermore, this concern will also be concerned with in accordance with the other statute. (a) In the case of shares of a company listed on a recognized stock exchange in India, at a price as decided by the company; (b) In the case of shares of a company not listed on a recognized stock exchange in India, at a price not less than the price at which the right-based bid is made to a resident shareholder.

It is appropriate to receive prior permission from RBI for Right Issue to former OCBs. An investor may allocate an additional right share out of the unsubscribed portion, subject to the condition that the total issue of the shares to non-residents in the company’s total paid-up capital does not exceed the sectoral cap.

RECENT RIGHT ISSUE Reliance Industries (RIL) which is India’s most popular corporation propose to collect Rs 53,125 crore by giving Rs.1,257 a share discount of 14 per cent. Existing RIL shareholders may buy One share for every 15 shares owned The target to raise this issue is to decrease the net debt to zero by 31 March 2021.

Post by Rajput Jain & Associates

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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. 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)