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 ...

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)

FORM NO. INC.22A

Introduction about FORM NO. INC.22A

Active Company Tagging Identities and Verification is a new concept which is introduced by the Ministry of Corporate Affairs on 21-02-2019 by notifying Companies (Incorporation) Amendment Rules, 2019. It also introduces new E-FORM ACTIVE (INC-22A).

It is an attempt of Ministry of Corporate Affairs in order to identify the Active Companies and to verify their Registered Office.

Rule 25A:

New rule has been inserted in Companies Incorporation Rules, 2014 under Verification of Registered Office.

Rule 25A states that-Every company Incorporated on or before the 31st December 2017 shall file the particulars of the company and its registered office in e-form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.04.2019. 

Every Company* Incorporated on or before 31st December 2017 are required to file this e-form.

So, we can say that all these companies are required to file e-Form Active i.e. INC-22A

  1. Public Company (whether listed or not)
  2. Private Company

iii. Government Company

  1. One Person Company

Following Companies are not required to file this form:-

  1. Companies which have been struck off
  2. Companies which are under process of Striking off.

iii. Companies that are under Liquidation.

  1. Companies which has been dissolved or amalgamated.

As per the register maintained by the Ministry of Corporate Affairs.

Following Companies will not be allowed by the Ministry of Corporate Affairs to file this e-form Active are:-

  1. Company which has not filed its due financial statements under Section 137 i.e. Not Filled AOC-4
  2. Company which has not filled its Annual Returns under section 92 i.e. Not Filled MGT-7

iii. A company who’s any of the director/s has not filled DIR 3 KYC form or is disqualified under section 164 of the Companies Act, 2013.

Consequences of non filling of this e-form Active

Company will be marked with “Active- Noncompliant” at the portal of MINISTRY OF CORPORATE AFFAIRS and due to this the company will not be allowed to carry on some transactions such as:-

  1. Change in Authorised Capital
  2. Change in Paid up Capital

iii. Changes in Director Accept Cessation,

  1. Change in Registered Office.
  2. Amalgamation, De-merger

Consequences of Filing e-form Active after the due date .i.e. 25-04-2019

Penalty will be charged from those companies who will file this form after the due date and the amount of penalty is Rs. 10,000/- as inserted by Companies (Registration offices and Fees) Amendment Rules, 2019.

In INC22A, the company is required to submit the following information:-

  1. Name of the Company and CIN
  2. Registered Address of the Company
  3. Two Photograph of the registered office of the company. The first photo of the registered office shall be taken from outside of the premises, whereas the second photo needs to be taken from within the registered office premises showing at least one director / KMP who shall be signing the e-form INC-22A.
  4. Location of registered office on Map defining Latitude / Longitude
  5. Email ID of the company
  6. Email for OTP verification
  7. Whether the company is listed (Yes or No)
  8. Details of:
  • List of all Directors of the company with Active status of DIN. if any Director on Board of the Company who does not have the Active DIN Status, company will not be able to file Form 22A.
  • Name of all the Directors of the Company, if it is more than 15 then Details of Special resolution passed for such appointment will be required. However, in case of Government Company details of such resolution will not be required as there is no limit of directors in Government Company. Kindly Check that all the Directors have filled the DIR-3 KYC Form or They are not disqualified under section 164 of the Companies Act, 2013.
  1. Details of Statutory Auditor.
  • Name of the Auditor/Firm.
  • PAN No. of the Auditor/ Firm.
  • Membership No. or Firm’s Regn. No.
  • Period for which the Auditor has been appointed.
  1. Details of Cost Auditor
  • Name and No. of Cost Auditor Appointed
  • Membership no.
  • Period for which Appointed.
  • Financial Year to be covered by the cost auditor.
  1. Details of Company Secretary.
  • Name of the Company Secretary of the Company.
  • PAN No.
  • Membership No.
  • CEO or Managing Director (if applicable)
  • CFO (if applicable)
  • SRN Number of AOC 4 / MGT 7 For FY 17-18 SRN of AOC-4/AOC-4 XBRL SRN of MGT-7

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)

How to incorporate the company

Image result for company incorporationSteps for incorporating the company:-

  • The first step of getting a company incorporated is obtaining the approval of name from Registrar of Companies. A company may adopt any name which is not prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950.The government has launched a web service RUN (Reserve Unique Name) for reserving name of a proposed company. We can directly submit the application for reserving name online within few minutes (there is no requirement to download e-form like INC-1, and attaching DSC), has been launched for reserving name of new company or for change in name of existing company earlier there was INC-1 for reservation of name of new company or for change in name of existing company. Application form fee shall be Rs.1000/- per form for reservation of name by using RUN web-form.

                    APPROVED NAME IS VALID FOR A PERIOD OF:

20 days from the date of approval (in case name is being reserved for a new company) or

60 days from the date of approval (in case of change of name of an existing company)

  • The preparation of MOA is the next step in the incorporation of a company. It is the law of the company, which states its objects and scope and the company relation with outside world.
  • Other than MOA, the promoters will also prepare AOA of the company. It contains rules and regulations relating to the internal management of the company.

Following other documents are also prepared:

  • Taking consent from directors and filed it with ROC.
  • Promoters have to execute power of attorney in favor of one of them.
  • Form of DIN, PAN & TAN.
  • Form for first director.
  • Form for address of registered office.
  • At the time of registration, prescribed registration fees and filing fee for each document filed for registration are to be paid at the Registrar’s office.

Also we can incorporate company in India through the

 Simplified Performa for Incorporation Company Electronically (SPICE)

MCA will bring new specified procedures for incorporation of company under companies act, 2013. Ministry of corporate affairs introduces E- Form INC-32 by a notification under SPICE Scheme. SPICE means Simplified Performa for Incorporating Company Electronically.

The SPICE form will introduced to bring facility of preparing Electronic MOA & Electronic AOA. This facility is introduced first time in Indian history for incorporation of company. Now there is no need to prepare manual MOA & AOA.

Before of this SPICE form if any person want to incorporate any company then he has to apply by filing different form for DIN, PAN, TAN, approval of name availability, registered office address, first director form etc.

Now it is mandatory to file E-Form INC-32 for incorporation of company in India. If the company is Producer Company and having more than 7 subscribers then E-Form INC-7 have to be filled and if subscribers of Producer Company are less than 7 then it has to filed E-Form INC-32 for incorporation.

According to the notification given by MCA, companies who are incorporated by filing E-Form INC-32 then that company cannot incorporate by filing E-Form INC-7 on or after 29th December, 2016. So, it is compulsory to file E-Form INC-32 for incorporation of company from the date 29 December, 2016.

SPICE Form (INC-32) has following features:-

  • Maximum number of allowed subscribers is seven. If subscribers are more than seven then E-Form INC-7 is filled and normal incorporation procedures of E-Form INC-7 are applied.
  • Maximum twenty directors are allowed.
  • Maximum three directors are allowed for filing application for Director Identification Number.
  • In this form name of company can also be applied.
  • DSC of subscriber is affixed on the INC-33 (E-MOA) For automatically generating date of sign by the form.
  • Applying for PAN / TAN will be compulsory for all the company who are incorporated through SPICE form.

Following difficulties are faced while filing SPICE Form (INC-32):-

  • For foreign subscribers it is difficult to incorporate the company without violating the rule 13 of the companies’ rules, 2014.
  • If company name is approved already in E-Form INC-1 then whether company can apply for incorporation in E-Form INC-32 or not
  • If both the person doesn’t have DIN No. whether they can apply for the incorporation of Company. Or one person mandatorily requires having DIN for filing of this form
  • For incorporation of producer company this form is filled or not.
  • If any company want to incorporate through INC-7 then how the company can do so.

Following documents are attached with the SPICE E-Form (INC-32):-

  1. E-MOA & E-AOA required to be attached.
  2. INC-9 Affidavit and declaration by first subscriber and director (on duly authorized Stamp Papers).
  3. DIR-2 declaration from first Directors along with Copy of Proof of Identity and residential address.
  4. NOC from the owner of the property.
  5. Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
  6. Copy of the utility bills (not older than two months)
  7. Declaration from the director non acceptance of Deposit. (On duly authorized Stamp Papers).
  8. In case of subscribers/ Director does not have a DIN, it is compulsory to attach Proof of identity and residential address of the subscribers
  9. E- 49A and E-49B will be filed through MCA website (filed form will be generate by the SRN of INC-33 E-MOA).

Incorporate a new company in a progressive country like India and take following benefits:-

  • In country like India, you have complete ownership of your company.
  • You can also take exemption from taxes in startups companies if eligible.
  • For the foreign person one special benefit is he does not have to require physically present in India he can operate from outside the India except one time present at the time of incorporation.
  • For incorporation you have to open a bank account and you have benefit that ownership of bank account is your own company name.
  • In country like India, Privacy of your all operations is maintained.
  • Annual fees is nominal in India.
  • You have permission to be traded in foreign or can do international business easily.
  • You can purchase properties in India in your company name.
  • Even you can easily set up a operation of an international company.
  • For foreign people one more benefit is they can easily get the business visa for India residency.

You can get above benefits by incorporating your entity in a progressive country like India and also you can get extra benefits in setting up your corporate bank account easily through Rajput Jain& associates.

How Rajput Jain & associates offers services for helping you in formation of company in India it is a one step solution for you:-

  • Get the most comprehensive and perfect Company Formation advice.
  • Helping in set-up your branch company out from your Global entity structure easily.
  • Helping in getting your Commercial License and acquire your India residence visa
  • You can take advantage of Accounting & GST / Tax Consultancy & Advisory Services
  • Easily get Tax Agency Appointment
  • You can get easily perfect Financial Auditor for your existing company
  • You can get all the services before and after the incorporation of 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. 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)

CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

CORPORATE AND PROFESSIONAL UPDATE August 26, 2017

Image result for corporate images hdDirect Tax:

  • Delhi ITAT upholds assessee’s Resale Price Method (RPM) over TPO’s TNMM for AYs 2003-04 to 2005-06 for benchmarking purchases of finished goods from AE for resale, holds that RPM is most appropriate method absent any value addition by assessee[TS-661-ITAT-2017(DEL) -TP]
  • The income tax department is open to lowering the withholding tax rate for foreign companies which have income in India, says CBDT chairman Sushil Chandra.
  • Supreme Court ruling the right to privacy as a fundamental right under the Constitution has triggered uncertainty over the mandatory linking of Aadhaar for stock trading brokers said they will now wait for the SC judgment that will test the validity of Aadhaar.

Indirect Tax:

  • CBEC made amendment in the Integrated Goods and Services Tax Act by way of notification no 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017. Vide notification no 354/173/2017 –TRU, dated 22th August 2017.

GST Update

  • GST Authorities have issued clarification w.r.t selling of space for advertisement in print media on the basis of the queries being raised regarding GST applicability on the same. The rate is @ 5%.
  • IT Minister launched a GST filing and reconciliation solution product named ‘XaTTaX’. The product, developed by Sailotech, simplifies the filing of GST returns, claims for refund, raising invoices with comfort from home or workplace.

FAQ on GST

Query: What is the time limit beyond which the inputs/capital goods sent for job work shall be treated as supply?

Answer:The time limit prescribed for return of goods sent to job work under the exemption route is 1 year of being sent out (for inputs) and 3 years of being sent out (for capital goods). Therefore, if the inputs/ capital goods are returned to the principal after 1 year/ 3 years (as applicable), then such return of goods to the principal after the said period would be treated as ‘supply’. This time limit is not applicable to moulds and dies, jigs, fixtures, and tools

Corporate Law:

  • MCA made companies (Arrests in connection with Investigation by serious Fraud Investigation Office) Rules, 2017 which shall come into force on the date of their publication in the Official Gazette.Vide notification no ur2l20r3 cL-V, dated 24th august 2017
  • MCA amend the National Company Law Appellate Tribunal Rules, 2O16. These rules may be called the National Company Law Appellate Tribunal (Amendment) Rules’ 2O17 which shall come into force on the date of their publication in the official Gazette. Vide notification no 1/30/2013-CL-V, dated 23th August 2017
  • The Cabinet has approved a framework to speed up mergers of public sector banks, the first of which could take place by March. The mergers will not involve any cash but only share swaps.

Quotes of the day

“Plant your garden and decorate your own soul, instead of waiting for someone to bring you flowers.”

We look forward for your valuable comment www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com   E: info@carajput.com T: 011-233-4-3333, 9-555-555-480

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)

CORPORATE AND PROFESSIONAL UPDATE MARCH 15, 2017

Professional Update For the Day:

annual-compliance-of-a-private-limited-company

DIRECT TAX:

·        CBDT clarified that Existence of undisclosed bank deposits non-mandatory on the date of PMGKY payment.

·        CBDT has asked Taxmen to Fast track cases against shell firms also to file prosecution cases against those companies which claimed bogus long-term capital gains. While the SFIO has filed cases against 49 shell companies, Rs 3,900 crore is believed to have been laundered by 559 persons with the help of 54 professionals. Also, Rs 1,238 crore cash has been deposited in shell co’s, post demonetization.

·        Penalty can’t be imposed u/s 271(1)(c) of the Income Tax Act, 1961, where substantial question of law had been admitted by the High Court in respect of quantum proceedings. CIT Vs. Advaita Estate Dev. Pvt. Ltd., High Court of Bombay.

·        ITAT Ahmedabad held that forfeiture of share application money which has been duly received by the appellant in terms of prospect and credited to capital reserve account was a capital receipt and is not taxable. DCIT(OSD) Vs Mahalaxmi Rubtech Ltd. (ITAT Ahmedabad).

·        Sec. 271(1)(c): If the quantum appeal is admitted by the High Court, it means that the issue is debatable and penalty cannot be levied. Argument of the Dept that Nayan Builders 368 ITR 722 (Bom) does not lay down this proposition is not correct. CIT Vs Advaita Estate Development Pvt. Ltd (Bombay High Court)

·        Entitlement for deduction U/s 80IB – amount under the head VKGUY [Vishesh Krishi Gram Udhyog Yojana] and on account of DEPB – these benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80IA/80IB – ITAT Jaipur in case of [M/s Neel Kanth Gum & Chemicals Vs. ACIT].

·        New India Assurance to refund TDS amount to claimant as it had wrongly deducted TDS on compensation: HC[2017] 79 taxmann.com 76 (Gujarat)

·        Expenditure incurred for re- possession of the club – capital or revenue in nature – when as per the JDA, the ownership is vested in the assessee and the plot owners have no right in the assets of the club, it cannot be said that creating the asset of the club is a revenue expenditure – ITAT Bangalore in case of [G.R. Developers Vs. The ACIT, Circle-3 (1) , Bangalore].

·        Operation Clean Money; Income Tax Department identifies 17.92 Lakh persons whose tax profiles were not in line with the cash deposits made by them during the demonetization period.

·        CBDT reported the direct tax collections up to February 2017 to witness steady growth trend. The collection net of refunds stands at Rs. 6.17 lakh crore which is 10.7% more.

INDIRECT TAX:

·        Excise: CBEC issued Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty vide Circular No. 1053/02/2017-CX dated March 10, 2017. CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

·        Service Tax: In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law. Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        Date of filing of DVAT Return in Form 16, 17 & 48 for Q-3, 2016-17 has been extended up to 17.03.2017 vide Circular No. 26 dated 08.03.2017.

·        CBEC vide Circular No. 1053/02/2017-CX dated March 10, 2017 has issued the Master Circular providing the clarity and uniformity on the issues dealing with Show Cause Notice, Adjudication Proceedings and Recovery of duty.

·        In the absence of a statutory provision which prescribes that registration is mandatory and that if such a registration is not made the assessee is not entitled to the benefit of refund, the committed a serious error in rejecting the claim for refund on the ground which is not existence in law.Commissioner, Service Tax Vs M/S Pangea 3 Legal Database Systems Pvt. Ltd. (Allahabad High Court)

·        CESTAT allows assessee’s appeal, remands issue for determination whether Food Processor accessories are assessable at MRP u/s 4A or at the transaction value u/s 4 of Central Excise Act, when same not cleared as part of package containing Food Processor [TS-47-CESTAT-2017-EXC]

 OTHER UPDATES

·        RBI has cancelled the certificate of registration of some NBFC in of the powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934.

·        RBI issued notification that Section 269SS and 269T of the Income Tax Act, 1961 would be applicable to all NBFCs with immediate effect. Currently, the relevant threshold is Rs 20,000 Vide Notification No. DNBR (PD) CC.No.086/03.10.001/2016-17 dated 09.03.2017.

·        RBI notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017 which shall come into force from the date of their publication in the Official Gazette. Vide Notification No. FEMA.387/2017-RB dated 09.03.2017.

Key Dates:

Payment of Advance Income Tax by all assesses (100%): 15.03.2017

E-payment of PF for Feb: 15.03.2017

“Our hopes & dreams should be like hair & nail. No matter how many times they are cut, but they never stop growing.”

Life shrinks or expands in proportion to one’s courage.

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; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

We look forward for your valuable comments. www.carajput.com  Continue reading

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)

CORPORATE AND PROFESSIONAL UPDATE SEPT 2,2016

Professional Update For the Day:

Untitled21A

DIRECT TAX:

No tax on income from offshore supplies as supplier had no agency PE in India.

No cancellation of trust’s registration just because its main income was from interest and miscellaneous receipt.

CBDT Extends due date for quarterly furnishing of Form 15G/155H

Income Tax Authorities must mention official e-mail Ids & phone/fax no in all notices/letters issued to taxpayers. F No 225/214/2016/ITA.II of 30-8-2016.

No tax on income from offshore supplies as supplier had no agency PE in India.

The CBDT vide Circular no. 30/2016 dated. 26 Aug. 2016 has streamlined the process for ‘Port Clearance/ No Objection Certificates and Voyage Return/ Assessment’ in the case of foreign shipping companies

No cancellation of trust’s registration just because its main income was from interest and miscellaneous receipt.

Extension of due dates of Form 15G/H received during 1.10.2015- 31.3.2016 & for Q1 of 2016-17, to31.10.2016; & for Q2 of 2016-17, to 31.12.2016. CBDT notification no 10/2016.

SC dismisses review petition against its earlier order dated April 22, 2016 denying exemption u/s 10(23C)(iiiab) to Visvesvaraya Technological University (‘VTU’ ) on the ground that it doesn’t satisfy the condition of being an institution ‘wholly or substantially financed by the Govt.’ for AYs 2004-05 to 2009-10. It Rejected VTU’s contention that ‘fees of all kinds collected’ must be regarded as receipts from Govt.[TS-465-SC-2016]

ITAT pune in the below citied case held that The payments made by assessee to Gensler-USA were merely for project specific drawings & designs without transfer of technology or know-how or even title in drawing & designs and not in the nature of “Royalty” or “Fee for Technical Services u/s 195.[Gera Developments Pvt. Ltd. Vs. DCIT, (Int. Tax), Pune]

INDIRECT TAX:

Recovery of CENVAT credit imposition of interest and penalty machine tool accessories, tips and Inserts CHA service for export of goods Held that – the ownership of the goods and the risk related thereto remains with the appellant up to the loading of the goods on the ship at the port of shipment. Further, Section 4 of the Central Excise Act, 1944, inter alia, states that the place of removal is any other place from where the excisable goods are to be sold after the clearance from the factory. ( Kennametal India Ltd. Versus Commissioner of Central Excise, Large Taxpayers Unit) – 2016 (8) TMI 1031 – CESTAT BANGALORE – Service Tax

Cenvat credit – manpower supply services – availed the input service in their manufacturing activity – whether 75% of service tax payable by the respondent should be considered as ineligible for credit when the provider of service was to pay only 25% of service tax having been paid 100 of the service tax – Held that – 75% of the service tax, which is sought to be denied is admittedly paid to the Government by the provider of service instead of recipient of service.( M/s. Prime Ispat Ltd. Versus CC and CE, Raipur) – 2016 (8) TMI 1026 – CESTAT NEW DELHI – Central Excise

The state of Jammu & Kashmir CBDT further extends the ‘due-date’ for filing Return of Income from 31st August, 2016 to 30th September, 2016.

COM VAT issued the notification:

  • Order dt.31/8/16 enhancing DVAT Refunds jurisdiction of AO’s, Addl. Com/JC’s & Spl.Com.
  • No.658 dated 24/8/16 reg. Withdrawal of mandatory requirement of filing DVAT return with Digital Signatures.
  • Circular No.13 dated.31/08/2016 extending the Q1 2016-17 DVAT returns up to 10/09/2016.

DVAT Last date extended for filing the return for Q1 2016-17 by 10 days and also to find out the ways to improve the system STBA.

GST UPDATE

GST: The Central Govt. is planning to advance the winter session of parliament to pass GST Bill as the ratification of the GST Constitutional Amendment Bill by at least 50% States is expected to be completed by 10th Sep’ 2016. Eight States have already ratified the same. The State of West Bengal has put on HOLD the ratification indefinitely.

GST: With Odisha has become the 16th States to ratify the GST Constitutional Amendment Bill on 01.09.2016, the Central Govt. may seek President’s assent on it. The complete list of States are: 1. Assam; 2. Bihar; 3. Jharkhand; 4. Himachal Pradesh; 5. Chhattisgarh; 6. Gujarat; 7. Madhya Pradesh; 8. Delhi; 9. Nagaland: 10. Maharashtra; and 11. Haryana; 12. Telengana; 13. Mizoram; 14. Sikkim; 15. Goa; and 16. Odisha.

Under GST; TDS @ 1% will be applicable on notified supplies for contracts exceeding Rs. 10 lacs in value. TDS deposit by 10th of next month.

Under GST, refund of ITC allowed at end of Tax Period for exports & where ITC accumulated due to input tax rate higher than output tax rate.

GST will make consumer goods cheaper, boost jobs: CBEC Spelling out benefits of the Goods and Services Tax (GST), the revenue department on Monday said it will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity.

FAQ on Company Law:

Query:  One of our client company has appointed Additional Director during the year subject to vacation of office upto ensuing annual general meeting of the company. AGM of the company was scheduled to be called on 15th Sept, but due to unforeseen reasons, company was not able to conduct AGM till 30th September. Our query is whether such Additional Director may hold office afterwards as well as AGM has not been held?

Answer:  As per the provision of Section 161 of Companies Act 2013, the articles of a company may confer on its Board of directors the power to appoint, other than person who fails to get appointed as a director in general meeting, as an Additional Director at any time who shall hold office upto the date of next annual general meeting or the last date on which Annual general meeting should have been held, whichever is earlier.

Here, in this case, AGM was not held upto due date of AGM, i.e 30th September but as per provisions, he may hold office upto the date of AGM or the day on which AGM should have been held , whichever is earlier. Therefore, he shall not hold office afterwards.

Query:  We have a query as whether a company is required to consolidate the financials of LLP, which is its subsidiary, along with its financials?

Answer:   As per Rule 6 of Companies (Accounts) Rules, 2014, it is provided that consolidation of financial statements of a company shall be done in accordance with the provisions of Schedule III to the Companies Act, 2013 and the applicable Accounting Standards.

As per the definition of subsidiary as defined under Accounting Standard (AS) 21, an enterprise controlled by the parent is required to be consolidated. The term ‘enterprise’ includes a company and any enterprise other than a company. Therefore, under AS also, LLPs and partnership firms are required to be consolidated.

Query:  Whether Form DIR-11 is required to be filed in case of vacation of director under Se3ction 167 of Companies Act 2013?

Answer: No, as per  Section 168 (1) of the Companies Act, 2013 read with Rule 16 of Companies (Appointment and Qualification of Directors) Rules, 2014,  Form DIR-11 is required to be filed in case of resignation of director from his office within a period of thirty days from the date of resignation.

RBI UPDATE

RBI has issued Master Directions for NBFC Cos on six subjects. The subjects on which Master Directions have been issued are Exemptions from the provisions of RBI Act, 1934.

ICAI Update

Last date for MEF 2016-17 is 10/09/16. Members are requested to apply at www.meficai.org.

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US:

W: www.carajput.com         E: info@carajput.com       T: 011-233-4-3333, 9-555-555-480

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications. Continue reading

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)

NAMING AND REGISTERING A BUSINESSIN FORM OF COMPANY UNDER COMPANIES ACT 2013

NAMING AND REGISTERING A BUSINESS IN FORM OF COMPANY

1COMPANIES ACT 2013

In India, incorporation of a company is governed by the Companies Act 2013. It is the most important piece of legislation that empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. It applies to whole of India and to all types of companies, whether registered under this Act or an earlier Act. But it does not apply to universities, co-operative societies, unincorporated trading, scientific and other societies.

The Act is administered by the Central Government through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators , Public Trustee, Company Law Board, Director of Inspection, etc. The Registrar of Companies (ROC) controls the task of incorporation of new companies and the administration of running companies.

The Official Liquidators  who are attached to the various High Courts functioning in the country are also under the overall administrative control of the Ministry. The set-up at the Headquarters includes the Company Law Board, a quasi-judicial body, having the principal Bench at New Delhi, an additional principal bench for Southern Region at Chennai and four Regional Benches located at New Delhi, Mumbai, Kolkata and Chennai. The organization at the Headquarters also includes two Directors of Inspection and Investigation with a complement of staff, an Economic Adviser for Research and Statistics and other Officials providing expertise on legal, accounting, economic and statistical matters.

The four Regional Directors, who are in charge of the respective regions, comprising a number of States and Union Territories, interalia, supervise the working of the Offices of Registrars of Companies and the Official Liquidators working in their regions. They also maintain liaison with the respective State Governments and the Central Government in matters relating to the administration of the Companies Act, 1956.

Registrar of Companies (ROCs) appointed under Section 609 of the Companies Act, covering various States and Union Territories, are vested with the primary duty of registering companies floated in the respective States and the Union Territories and ensuring that such companies comply with the statutory requirements under the Act. Their offices function as registry of records relating to the companies registered with them.

For registration and incorporation of a company, an application has to be filed with Registrar of companies. Application for registration of a company accompanied by the selected names, Memorandum of Association and Articles of Association and other necessary documents is to be filed with the Registrar of companies of the State in which the company is proposed to be incorporated.

Under the Companies Act, an entrepreneur can form two types of companies, namely a private company or a public company.

A Private Company is one, the articles whereof contains the following restrictions:-

  • Restricts the minimum paid up share capital to such an amount as may be prescribed but which shall not be less than rupees one lakh;
  • Restricts the rights of members to transfer its shares, if any;
  • Limits the number of its members to fifty excluding the past or present employees of the company who are members of the company;
  • Prohibits any invitation to the public to subscribe for any shares or debentures of the company;
  • Does not invite or accept any deposits from persons other than its members, directors or their relatives
  • Also, the minimum number of members in a private company is two and such a company must have the words ‘Pvt Ltd’ as the last part of its name.

A Public Company, as defined in the Companies Act, has the following features:-

  • Its shares are freely transferable;
  • There is no ceiling on its membership;
  • It can invite general public to subscribe to its shares;
  • It has a minimum paid up capital of Rs. 5 lakhs or such higher paid up capital as may be prescribed;
  • It is a private company which is a subsidiary of a public company.
  • Also, the minimum number of members in a public company is seven and such a company must have the word ‘Ltd’ as last part of its name.
  • Procedures for Registration of a Business
  • List of offices of Registrar of Companies
  • Registration Forms
  • FAQs by Ministry of Corporate Affairs
  • Guidelines by the Ministry of Corporate Affairs
  • Instruction kit for filling eForms

WHAT IS FINANCIAL REPORTING?

Financial reporting includes the following:

  • the external financial statements (balance sheet, income statement, statement of cash flows, and statement of  stockholders’ equity)
  • The notes to the financial statements
  • Quarterly and annual reports to stockholders
  • Press releases and conference calls regarding quarterly earnings and related information
  • Financial information posted on a corporation’s website
  • Financial reports to governmental agencies including quarterly and annual reports to the Securities and Exchange Board of India (Fema) ROC/ Income Tax / Banks / Investors / Money Lenders.
  • Prospectuses pertaining to the issuance of common stockand other securities

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; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

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)