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 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

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Everything about MCA Company Fresh Start Scheme (CFSS) 2020

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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)

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)

Due Date for Annual Return OF COMPANY

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www.carajput.com; due-date-for-annual-return

All companies registered in India must file annual return each year, irrespective of business turnover or activity. Annual return must be filed in Form MGT-7 and Form AOC-4 is also filed along with the annual return. In this article, we look at the due date for annual return for a company.

Filing Annual Return

A company’s annual return has to be filed with the MCA within 60 days from the date of Annual General Meeting. All companies are required to conduct an Annual General Meeting within 6 months of closing of financial year. Hence, the last date for conducting Annual General Meeting would be 30th September and the due date for filing annual return would be 29th November.

If a company cannot hold Annual General Meeting in any year, the annual return still has to be filed within 60 days from the date on which Annual General Meeting should have been held together with the statement specifying the reasons for not holding the Annual General Meeting. Hence, a company cannot excuse itself from filing annual return on the plea of the Annual General Meeting not having been held.

Statutory Fee for Filing Annual Return

Statutory fee for filing is based on the authorized capital of the Company as follows:

For submitting, filing, registering or recording any document Rs. by this Act required or authorised to be submitted, filed, registered or recorded Rs.
In respect of a company having a nominal share capital of up to  Rs. 1,00,000  Rs.200
In respect of a company having a nominal share capital of Rs. 1,00,000 or more but less than Rs.5,00,000.  Rs.300
In respect of a company having a nominal share capital of Rs. 5,00,000 or more but less than Rs. 25,00,000 Rs.400
In respect of a company having a nominal share capital of Rs.25,00,000 or more but less than Rs. 1 crore or more. Rs.500
In respect of a company having a nominal share capital of Rs. 1 crore or more. Rs.600

Penalty for Late Filing Annual Return

In case a company files its annual return after 60 days of date of Annual General Meeting or after 29th November, a penalty would be applicable date of the event and date of filing. Further, the Ministry of Corporate Affairs has proposed to increase the penalty for late filing of annual return multi-fold as follows from the year 2018:

Number of Days Default Current Penalty Proposed Penalty
Up to 15 days Rs.400 Upto Rs.3,000
More than 15 days and up to 30 days  Rs.800 Upto Rs.6,000
More than 30 days and up to 60 days Rs.1600 Upto Rs.12,000
More than 60 days and up to 90 days  Rs.2400 Upto Rs.18,000
More than 90 days and up to 180 days Rs.4000 Upto Rs.36,000
More than 180 days and up to 270 days  Rs.4800 Upto Rs.54,000
More than 270 days Rs.100 per day penalty Rs.200 per day penalty

Note: The above chart has been worked for a company with a capital of share capital of Rs.1,00,000. The new penalty proposed by the MCA from the year 2018 for late filing of annual return is Rs.100 per day per filing. Since, a company will have to file MGT-7 and AOC-4, the penalty for day of default would be Rs.200.

The MCA announcement about the upcoming changes to the penalty structure has been published on the website as under:

“It is proposed to amend shortly, the Companies (Registration Offices and Fees) Rules 2014 to levy additional fee @Rs.100 per day for filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013. Once notified, the additional fee @Rs.100 per day (beyond the normal date of filing) shall become payable in respect of 23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A, MGT-7, AoC-4,AoC-4 XBRL and AoC-4 CFS. Stakeholders are advised to take note and plan accordingly.”

Know more about the increase in penalty for late filing annual return.

Filing Annual Return

Rajput Jain & Associates provides an easy and online process for Entrepreneurs to file their annual return and income tax return along with financial statement and board meeting documents preparation at just Rs.19899. Talk to an Rajput Jain & Associates  Advisor to know more and file Annual Return for your company easily.

Annual Compliance Package for Private Limited Companies Starting @ just 5k

Rajput Jain & Associates offers this unique package starting at an affordable price for the Chartered Accountants who are focussed on taxation aspects rather than on secretarial compliances. This package is specifically offered to the Chartered Accountants who want to outsource the Annual Filing and other secretarial work of their clients. In today’s world it is important to form partnerships in order to expand your reach and attract more clients. Outsourcing your secretarial functions to us will help you to free up time to focus on your core professional services.

We help you meet all the necessary compliance so that you can focus on your core professional activities without worrying about any legal and secretarial hassles. We take care of your compliances and our scope of annual filing services include:

  • Drafting secretarial documents including board report, minutes of AGM, Notices, etc.
  • Providing necessary certifications where required.
  • Filing of ROC returns i.e. AOC-4, MGT-7 and ADT-1.

What we require from your end:

  • Certified Financial Statement of the Client Company.
  • Certified Auditor Report.
  • Any other information regarding the directorship, shareholding, charges or any other material information about the company.

To know more about the scope of service you can contact us on the Email Ids and Numbers given below. We look forward to serving you.For query or help, contact:   info@carajput.com or call at 09811322785/4 9555 5555 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 JULY 16, 2016

Professional Update For the Day:

blog-rja-with-image

DIRECT TAX:

Income Tax : Penalty levied for excess claim of unabsorbed depreciation u/s 115JB; ITAT denies theory of carry backward of losses SBI DFHI Ltd. v. Assistant Commissioner of Income-tax, Range-2 (1), Mumbai [2016] 71 taxmann.com 178 (Mumbai – Trib.)

Income Tax : Sec. 11 amendment which debars dual deduction to trust on purchase of asset doesn’t have retro-effect Commissioner of Income-tax (Exemptions), Bangalore v. Bangalore Baptist Hospital Society [2016] 71 taxmann.com 192 (Karnataka)

Income Tax: Exemption u/s 11 will be allowed on the income generated out of the auditorium which is held under trust of the society for the purpose of generating fund. ITAT Chennai held that the income generated out of the auditorium was used to the objects of the trust. [M/s The Association of Surgeons of India, C/o Shri S. Sridhar, Advocate Vs. The DDIT (Exemptions) – I, Chennai]

INDIRECT TAX:

Excise : CBEC has issued a circular on procedure regarding duty free shop vide circular no. 32/2016 dated 13.07.2016. It may be noted that the Special Warehouse (Custody & Handling of Goods) Regulations, 2016 prescribe maintenance of a computerized system for accounting. Accordingly, a system of accounting of receipt, storage, operations and removal of goods with regard to Duty Free Shops is prescribed in the notification.

Service tax : No service tax on profit earned by principal as it can’t be said to be promoting business of job worker Radico Khaitan Ltd. v. Commissioner of Service Tax, Delhi [2016] 71 taxmann.com 141 (New Delhi – CESTAT)

COMPANY ACT UPDATE :

MCA21 will remain temporarily unavailable from 9:00 PM (16 July) to 9:00 AM (17 July). Stakeholder are advised to plan accordingly.

E-Form AOC-04 for filing Annual Financial Statement is likely to be amended w.r.t filing of CSR expenditure details. The revised AOC-04 E-Form is likely to be available on MCA portal by 3rd week of Jul-2016. Stakeholders are requested to note that filing CSR details are mandatory. Therefore, Annual filing may be planned as per revised AOC-04.

OTHER UPDATES:

SEBI : SEBI has made an amendment in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2016 vide notification No. SEBI/ LAD-NRO/GN/2016-17/008 dated 08/07/2016.SEBI introduce regulation relating to “Dividend distribution Policy”.

Key dates :

Payment of ESI for the month of June-21/07/2016

E-payment of DVAT & CST for the month/quarter ended June-21/07/2016

“The search for happiness is the main reason for unhappiness. Accept life the way it comes, as a result, you will find happiness in every moment of your life.”

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)

CORPORATE AND PROFESSIONAL UPDATE JULY 15, 2016

Professional Update For the Day:

Untitled18A

DIRECT TAX:

Income Tax : No penalty on firm when it agreed to treat partner’s contribution as its income to buy peace Choupal Plywood v. Income-tax Officer, Ward-3, Yamunanagar [2016] 71 taxmann.com 135 (Chandigarh – Trib.)

Income Tax : Non-issuance of SCN prior to rejection of refund would render adjudication order as void D.E. Shaw India Software (P.) Ltd. v. commissioner of Customs, Central Excise and Service Tax, Hyderabad-II [2016] 71 taxmann.com 94 (Hyderabad – CESTAT)

Income Tax:   Amount set-aside for Debenture Redemption Reserve is to be added back for computing book profits Assistant Commissioner of Income-tax, Circle-4, Ahmedabad v. Genus Electrotech Ltd. [2016] 71 taxmann.com 101 (Ahmedabad – Trib.)

Income Tax: NCLT can’t deal with an asset whose property rights are in dispute before a Civil Court Vinod Muktinath Sharma v. Sharma Realty (P.) Ltd. [2016] 71 taxmann.com 144 (NCLT-New Delhi )

Income Tax: The Government of India has given Relaxation of time schedule for making payments under the Scheme the Income Declaration Scheme 2016:  (I) a minimum 25% of the tax, paid by 30.11.2016; (ii) further 25% by 31.3.2017; and balance on or before 30.9.2017.

In a bid to end taxpayers harassment, the CBDT has prescribed revised format for Scrutiny Notice u/s 143(2) of the Income Tax Act’1961 in “three new formats” that will clearly stipulate if the inquiry against them is “limited, complete or manual”. All scrutiny notices, shall henceforth, be issued in these revised formats. Further, Taxpayers residing in cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai can opt for paperless/E-Assessment (if their case falls under scrutiny) as part of a new pilot project that the CBDT is running in this regard.

INDIRECT TAX :

HC allows Revenue appeal, sets aside CESTAT order which allowed CENVAT credit on entire Captive Power Plant without examining eligibility of individual components used therein as “inputs” or “capital goods”. Revenue also raised substantial question whether credit could be availed on items such as angles, beams, channels, ladder trays, joists supporting structures, steel structures, which are neither “inputs” nor “capital goods” as per definitions under CENVAT Credit Rules 2004. Madras High Court

Excise : CBEC has issued a circular on procedure regarding duty free shop vide circular no. 32/2016 dated 13.07.2016. It may be noted that the Special Warehouse (Custody & Handling of Goods) Regulations, 2016 prescribe maintenance of a computerized system for accounting. Accordingly, a system of accounting of receipt, storage, operations and removal of goods with regard to Duty Free Shops is prescribed in the notification.

Service tax : Service-tax paid wrongly under reverse charge is refundable without bar of unjust enrichment ICOMM Tele Ltd. v. Commissioner of Customs, Central Excise & Service Tax, Hyderabad III [2016] 71 taxmann.com 95 (Hyderabad – CESTAT)

OTHER UPDATES:

SEBI : SEBI has notified the amended the Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) (Second Amendment) Regulations, 2016 to introduce regulation  relating to ‘Dividend Distribution Policy’.

Forms FC-2, FC-4, MGT-10, MR-1, SH-7 and Refund Form are likely to be revised on MCA21 Company Forms Download page w.e.f 13th July 2016. Stakeholders are advised to check the latest version before filing.

E-Form AOC-04 for filing Annual Financial Statement is likely to be amended w.r.t filing of CSR expenditure details. The revised AOC-04 E-Form is likely to be available on MCA portal by 3rd week of Jul-2016. Stakeholders are requested to note that filing CSR details are mandatory. Therefore, Annual filing may be planned as per revised AOC-04.

Key dates :

TCS Return by all deductors: 15.07.2016

E-Payment of PF for the month of June: 15.07.2016

E-filing of form 15G/H for June Quarter: 15.07.2016

“Thinking should become your capital asset, no matter whatever ups and downs you come across in your life.”

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)

CORPORATE AND PROFESSIONAL UPDATE JULY 11, 2016

Professional Update For the Day:

Untitled18A

DIRECT TAX:

Income Tax : Where assessee trust was carrying on micro finance business in a commercial manner so as to earn profit and there was no iota of charity carried on by assessee, exemption under section 11 could not have been granted to assessee .( Assistant Commissioner of Income-tax v. Grama Vidiyal Trust)

Income Tax : Mesne profits (amount received from a person in wrongful possession of property) is a capital receipt and not chargeable to tax either as income or as “book profits” u/s 115JB. As the department has implicitly accepted Narang Overseas vs. ACIT 100 ITD (Mum) (SB), it cannot file an appeal on the issue in the case of other assessees. (CIT Vs. Goodwill Theaters Pvt. Ltd. (Bombay High Court)

Income Tax:   Slot hire facility is an integral part of contract for carriage of goods by sea and, thus, such an activity is also entitled to treaty protection under article 8 from source taxation of income arising from transportation of goods by operation of ships in international traffic, irrespective of whether or not such ships were owned or chartered by assessee – [2016] 70 taxmann 402 (Ahmedabad – Trib.)

INDIRECT TAX:

Excise : Exporter can claim credit of duty paid to job-worker even if he performs only testing and packing of goods Commissioner of Central Excise, Chennai III Commissionerate v. Braked India Ltd. [2016] 71 taxmann.com 103 (Madras)

Service tax : Services received from agents carrying out ‘sales promotion’ as well as ‘sale’ of products manufactured by assessee, are eligible for input service credit.- [2016]- 71 taxman 12 ( Banglore CESTAT)

Vat : Haryana Govt. specifies 15 days deadline to clear application for amendment in VAT certificate NOTIFICATION NO.15/ST-1/H.A. 6/2003/S.60/2016, DATED 25-5-2016

Excise : Where assessee was engaged in manufacturing of powder at its factory and it cleared said powder from factory in bulk without putting any brand name thereon and sent same to its godown, where it was repacked in containers of 200 gms and labelled with brand name and cleared therefrom, powder cleared from factory would be covered under Chapter Heading 2108.91- (2016) 71 taxman 5 (New Delhi) CESTAT

Custom : Where Customs Department directed bank to keep amounts frozen in current account of assessee, then, in absence of valid directions from assessee to transfer said amount in Fixed Deposit, bank cannot be expected to transfer same in Fixed Deposit; hence, assessee cannot claim ‘unearned interest’ on frozen amounts -[2016] 71 taxmann 9 (Bombay)

OTHER UPDATES:

SEBI : The Securities and Exchange Board of India has issued Consultation paper for Disclosure of financial information in offer document/ placement memorandum and for Valuation in respect of SEBI (Infrastructure investment trusts) Regulations, 2014. The SEBI (Infrastructure investment trusts) Regulations, 2014 (InvIT Regulations) were notified on September 26, 2014, thereby providing a regulatory framework for registration and regulation of InvITs in India. The regulations, inter alia, prescribe conditions for making a public offer and private placement and broad guidelines for making initial and continuous disclosures including disclosures of financials of the InvIT.

HC held that when assessee participated in reassessment proceedings by furnishing the required documents and challenges the reopening subsequently before the high court by filing a writ petition then it would be not be appropriate for the high court to exercise its exclusive jurisdiction because the assessee has already chosen AO to exercise jurisdiction in the matter and to challenge his order before the appropriate appellate forum provided under the Act.

“Quality is never an accident. It is always the result of high intention, sincere effort, intelligent direction, and skillful execution. It represents the wise choice of many alternatives”

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)

CORPORATE AND PROFESSIONAL UPDATE JULY 9, 2016

Professional Update For the Day:

Untitled15A

DIRECT TAX:

Income Tax : Cash deposits in bank can’t be held as undisclosed income without verifying source of deposits Gurpal Singh v. Income-tax Officer, Ward-1, Kapurthala Income-tax Officer, Ward-1, Kapurthala

Income Tax : Chennai ITAT denies Sec 11 exemption to assessee ,an educational trust  with respect to income earned from renting of ‘auditorium hall’ during AY 2010-11.It observed that exemption u/s 11(4) is available on income derived from business held under trust and the words ‘property held under trust’ includes business undertaking held under trust. [TS-364-ITAT-2016(CHNY)]

Income Tax:  Hyderabad ITAT rules that compensation received by assessee ,an India based publication house,in terms of settlement  agreement for not using the trademark obtained from a London based company – Longman Communications Ltd.  which was taken over by Pearson Group, UK,  is a non-taxable capital receipt for AY 2008-09. [TS-363-ITAT-2016(HYD)]

INDIRECT TAX:

Service tax :   Calcutta high court in the case of Saurav Ganguly held that there is no service tax for writing artlcles, anchoring TV shows, playing IPL matches & Brand Endorsement.( Sourav Ganguly -Vs.- Union of India & Ors.)  

    Service tax : Consultancy service availed to procure finance for business is eligible input service Commissioner of Central Excise Bangalore II Commissionerate v. Sanmar Speciality Chemicals Ltd.[2016] 71 taxmann.com 10 (Karnataka)

Excise : Supreme Court in the judgment of the given case held that Subsidy by way of refund of excise duty and interest for setting up a new industrial undertaking is a capital receipt & not taxable as income. Alternatively, such receipts are “derived” from the industrial undertaking and are deductible u/s 80-IB.( CIT Vs. Shree Balaji Alloys)

Custom : Karnataka HC upholds Tribunal order denying exemption u/s 5(2) of CST Act on lease transactions effected by Hewlett Packard (assessee) with local customers on ground that same did not constitute ‘sale in course of import. [TS-268-HC-2016(KAR)-VAT]

OTHER UPDATES:

Banks need not report details about invocation of bank guarantee for service imports RBI/2016-17/8  A.P. (DIR Series) Circular No. 1 Dated July 07, 2016

Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.

Where appellant holding merely eight shares objected to scheme of amalgamation which had been approved by all shareholders, secured and unsecured creditor, objection of appellant was malicious and mala fide as he was disqualified from continuing as statutory auditor of company – [2016] 70 taxmann 394 (Delhi)

KEY DATES :

Excise return in Form ER-1 for non SSI assessee for the month of June: 10/07/2016

Excise Return in Form ER-2 for EOUs for the month of June: 10/07/2016

Submission of Excise Return in ER-3 by SSI unit for June quarter: 10/07/2016

“No masterpiece was ever created by a lazy artist”

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)

CORPORATE AND PROFESSIONAL UPDATE JUNE 24, 2016

Professional Update For the Day:

Untitled18A

DIRECT TAX:


Income Tax: Where issue of allowability of MAT credit was decided by AO by order dated 8-12-2011, even though issue of surcharge and cess was also allowed to be carried forward by AO by order dated 29-11-2012, revisional order passed on 30-3-2015 denying MAT credit would be time barred [2016] 70 taxmann.com 155 (Kolkata – Trib.)

Income Tax : SLP dismissed against High Court’s ruling that even if assessee voluntarily disclosed a sum subsequent to search and offered said sum to tax, penalty levied under section 271(1)(c) was justified
[2016] 70 taxmann.com 175 (SC)/[2015] 373 ITR 681 (SC)/[2015] 279 CTR 536 (SC)

Registration u/s 12AA cannot be denied on town planning activities continuing from earlier years.[ ITO vs. Moradabad Development Authority (ITAT Delhi)].

Income tax : Where as per sale agreement, transaction of sale of property was to be completed after five years of agreement at buyer’s option but possession of property was allowed to be taken over by buyer on next day of agreement in part performance of agreement, transfer within meaning of section 2(47) took place when possession was taken over by buyer and not when buyer exercised option to buy said property after five years – [2016] 70 taxmann 118 (Panaji – Trib.)

Income Tax: Recording of satisfaction by Assessing Officer of person searched that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized belong to person other than person searched is a sine qua non for initiating action under section 153C; where Assessing Officer of person searched and such other person is same, then also, first while making assessment in case of person searched, Assessing Officer has to record such satisfaction, then, copy of this satisfaction note is to be placed in file of such other person and relevant document should also be transferred from file of person searched to file of such other person and thereafter, in capacity of Assessing Officer of such other person, he has to issue notice under section 153A, read with section 153C – [2016] 70 taxmann 156 (Delhi – Trib.)

Registration u/s 12AA cannot be denied on town Planning Activities continuing from earlier years [ITO vs. Moradabad Development Authority (ITAT Delhi)].

Income Tax: CBDT clarifies that the higher turnover threshold of Rs. 2 crores for non-audit of accounts is granted only to assesses, opting for presumptive taxation scheme u/s 44AD.

Income Tax : Interest U/s. 244A on excess self assessment tax payment cannot be denied. [CIT vs. Birla Corporation Limited].

Income tax :  ITAT can examine whether AO has rightly exercised discretionary powers to extend due date of Special Audit Report
Principal Commissioner of Income-tax v. Nilkanth Concast (P.) Ltd.
[2016] 70 taxmann.com 157 (Delhi)

Income Tax: Reassessment held as invalid as notice was affixed at the wrong address Income-tax Officer, Ward 2 (3), Chandigarh v. Om Parkash  Kukreja [2016] 70 taxmann.com 147 (Chandigarh – Trib.)

Income Tax: Tax audit threshold of Rs 2 cr. only applicable to taxpayers opting for presumptive tax scheme: CBDT

Income Tax: Proceedings can be initiated against the amalgamated company on account of the failure of the amalgamating company to distribute the statutory percentage of the accumulated profits. In the given case Calcutta High Court held that Tribunal was not right in holding that the proceedings against the amalgamated company could not be initiated on account of the failure of the amalgamating company to distribute the statutory percentage of the accumulated profits.( CIT Vs. M/s. Shaw Wallace Distilleries Ltd.)

Income Tax: CBDT vide Notification No. 45/2016 dated 14-th June , 2016 has exempted the tax in the hand of the resident on the investment made in the shares issued by the start-up companies, if the consideration is in excess of the face value for issue of shares  of the “start-up” companies. For the purposes of this notification, “startup” shall mean a company in which the public are not substantially interested and which fulfills the conditions specified in the notification of the Government of India. Further the Central Government, hereby notifies the ‘classes of persons’ for the purposes of the said clause as being the ‘person’ defined under sub-section (31) of section 2 of the said Act.

Income Tax: CBDT has made 15th Amendments Rules, 2016 vide Notification No. 48/2016 dated 20th June, 2016.CBDT has made amendments in FATCA rules for registration, Due Diligence &information maintenance. Further, in the said rules, in Appendix-II Form 61B has been substituted with the new amended form with effect from 1st January, 2017.

Income Tax: CBDT has issued clarification regarding Threshold limit of tax audit under section 44AB and section 44AD vide press release dated 20th June 2016. The higher threshold for non-audit of accounts has been given only to assessee opting for presumptive taxation scheme under section 44AD.

Income Tax: CBDT vide Notification No. 47/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in the notification, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934CBDT vide Notification No. 47/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in the notification, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934

CBDT vide Notification No. 46/2016 dated 17th June 2016 has notified that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified in clause (23DA) of section 10 of the said Act received by any securitization trust as defined in clause (d) of the Explanation to section 115TC of the said Act.

Income Tax: New Explanation to sec. 263 doesn’t give unfettered powers to CIT to revise every order of AO Narayan Tatu Rane v.    Income-tax Officer, Ward 27(1)(1), Mumbai [2016] 70 taxmann.com 227 (Mumbai – Trib.)

Income Tax: Deeming fiction of sec. 50 won’t be triggered on transfer of rights in land Smt. Devindraben I. Barot v. Smt. Devindraben I. Barot  [2016] 70 taxmann.com 235 (Ahmedabad – Trib.)

Deferred consideration contingent on uncertain future event cannot be taxed before vesting of right to receive via {CIT vs. Mrs. Hemal Raju Shete (Bombay High Court)}

Where the Assessee uses a network of computers for its business purposes, the LAN/WAN equipment is an essential part and to be regarded as computer peripherals. Hence depreciation will be allowed @ 60%.- (Global Trust Bank Limited, New vs. Department Of Income Tax) Delhi

INDIRECT TAX:


CENVAT : Refund claims under rule 5 of the CENVAT Credit Rules, 2004 : This scheme is applicable only to service tax registrants who are exporters of services, with respect to refund claims under rule 5 of the CENVAT Credit Rules, 2004, which have been filed on or before 31-3-2015, and which have not been disposed of as on the date of the issue of the circular dated 10-11-2015. As clarified therein, claims which have been remanded are out of the purview of this scheme

Excise : Settlement Commission can reject application only in two cases : (a) assessee has not made full and true disclosure [section 32F], or (b) assessee has not co-operated in proceedings before it [section 32L]; there is no provision to send matter back merely because of differences between assessee and department – [2016] 70 taxmann 168 (Delhi)

Central Excise: Valuation – excise duty on the sample bottles under Rule 8 of the Valuation Rules – nothing is flowing back to the manufacture from the distributors – genuineness of transaction not doubted by the revenue – no demand can be raised – Tri

VAT  : Non-production of ‘C’-Forms – Demanding a higher rate of tax under the CST Act, 1956 due to the non production of ‘C’ Forms – The appellants and petitioners are not entitled to the reliefs prayed for – HC

Service tax : Penalty couldn’t be waived off on grounds of financial hardship if taxpayer failed to deposit collected tax Amcon Engineers (P.) Ltd. v. commissioner of Service Tax, Delhi [2016] 70 taxmann.com 217 (New Delhi – CESTAT)

An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent, or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. It was held in the given case that Nortel India is an independent company and a separate taxable entity under the Act. There is no material on record which would indicate that its office was used as an office by the Assessee or Nortel Canada the same cannot lead to the conclusion that Nortel India was acting as a sales outlet. (M/S Nortel Networks India International Inc. Vs DIT)

Excise : Gujarat HC grants refund of Education Cess & Secondary and Higher Secondary Education Cess (‘ paid by assessee under mistake of law on Oil Cess levied u/s 15 of Oil Industry Development Act ; Holds that such Cesses can only be levied on duties of excise and merely because machinery provisions of Central Excise Act have been incorporated in OID Act for collection and refund of Cess, it cannot be inferred that Oil Cess assumes the character of ‘excise duty’; Notes that Oil Cess is levied and administered by Ministry of Petroleum and Natural Gas, whereas conditions precedent for levy of said Cesses are that excise duty should be levied and collected by Ministry of Finance .Gujrat High Court

Excise : Activities of image scanning, editing and loading on CD are classifiable as photography services Global Digital Color Lab v. Commissioner of Central Excise, Jaipur-I   [2016] 70 taxmann.com 226 (New Delhi – CESTAT)

Excise : Dept. can’t revoke excise registration on allegations of fraud without hearing assessee Commissioner, Central Excise Commissioner ate, Udaipur v. Mangalam Cement Ltd., Kota [2016] 70 taxmann.com 241 (Rajasthan)

Excise : Service of notice by registered post without acknowledgment due isn’t a valid service under excise: HC RP Casting (P.) Ltd. v. Customs, Excise & Service Tax Appellate Tribunal, New Delhi[2016] 70 taxmann.com 242 (Rajasthan)

Service tax : No service tax on under construction flats if price includes land value via {Suresh Kumar Bansal vs UOI (Delhi High Court)}

Service tax : No service tax audit by service tax department or CAG via {Mega Cabs Pvt. Ltd. Vs. Union of India & Ors. (Delhi High Court)}

OTHER UPDATES :


RBI : RBI decides to simplify and rationalise the process of registration of new NBFCs In order to make the process of registration of new NBFCs smoother and hassle free, the application form for registration of new NBFCs and the checklist of documents to be submitted have been revised. The number of documents to be submitted by the NBFC applicants has been reduced from existing set of 45 documents to 7-8 in the revised process. Secondly, from now onwards, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on Sources of Funds & Customer Interface as follows: a) Type I – NBFC-ND not accepting public funds1 / not intending to accept public funds in the future and not having customer interface2 / not intending to have customer interface in the future b) Type II – NBFC-ND accepting public funds/ intending to accept public funds in the future and/or having customer interface/intending to have customer interface in the future The processing of cases for Type I – NBFC-ND applicants would be on fast track mode.

SEBI : SEBI invites applications from CA firms, for empanelment to take up assignments relating to forensic audit of SEBI registered RTA/STA.

Central Depository Services (India) Limited [CDSL] has launched ‘m-Voting’, a mobile app for e-Voting. This m-Voting app enables Android based smart phone users to cast their vote on company resolutions even while they are on the move. The m-Voting can also be used for voting at the AGM/EGM venue. The m-Voting app can be downloaded from Google Play Store for Android based phones, while the app for iPhone and Windows Phone would be released shortly and can be downloaded from the App Store and Windows Phone Store, respectively.

Govt. allows 100% FDI in e-commerce, aviation and defense

Sebi : SAT sets aside 5 years ban on merchant banker who failed to examine bank statement of issuer Co. Almondz Global Securities Ltd. v. Securities and Exchange Board of India [2016] 70 taxmann.com 222 (SAT – Mumbai)

MCA : Construction carried out by builder under joint development agreement amounts to construction services N. Bala Baskar v. Union of India, Ministry of Finance [2016] 70 taxmann.com 151 (Madras)

MCA : Ministry of Corporate Affairs has notified that Annual Filing Forms for Companies Act, 1956 – 23AC (Form for filing balance sheet and other documents with the Registrar), 23ACA (Form for filing Profit and Loss account and other documents with the Register), 23B (Information to the Registrar by company for appointment of auditor), 20B (Form for filing annual return by a company having a share capital with the Registrar), 21A (Particulars of annual return for the company not having share capital) are likely to be available on MCA21 portal by mid-August 2016. The Ministry had earlier removed these e-forms due to maintenance of the website. Stakeholders are requested to plan accordingly.

The NDA government on Monday announced relaxed foreign direct investment (FDI) norms in single brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products. It has allowed up to 100% foreign direct investment (FDI) in defence through the approval route, 100% FDI in food product e-commerce, 100% FDI in greenfield pharma via the automatic route, 100% in browfield pharma – of which 74% will be through automatic route – 100% FDI in scheduled airlines, and up to 49% FDI in airlines through automatic route. While FDI in defence beyond 49% was already allowed through approval route and up to 49% through automatic route, the new norms have done away with the condition of access to ‘state-of-art’ technology in the country for FDI more than 49%.

Sebi : SAT sets aside 5 years ban on merchant banker who failed to examine bank statement of issuer Co. Almondz Global Securities Ltd. v. Securities and Exchange Board of India [2016] 70 taxmann.com 222 (SAT – Mumbai)

MCA : Construction carried out by builder under joint development agreement amounts to construction services N. Bala Baskar v. Union of India, Ministry of Finance [2016] 70 taxmann.com 151 (Madras)

MCA : Ministry of Corporate Affairs has notified that Annual Filing Forms for Companies Act, 1956 – 23AC (Form for filing balance sheet and other documents with the Registrar), 23ACA (Form for filing Profit and Loss account and other documents with the Register), 23B (Information to the Registrar by company for appointment of auditor), 20B (Form for filing annual return by a company having a share capital with the Registrar), 21A (Particulars of annual return for the company not having share capital) are likely to be available on MCA21 portal by mid-August 2016. The Ministry had earlier removed these e-forms due to maintenance of the website. Stakeholders are requested to plan accordingly.

The NDA government on Monday announced relaxed foreign direct investment (FDI) norms in single brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products. It has allowed up to 100% foreign direct investment (FDI) in defence through the approval route, 100% FDI in food product e-commerce, 100% FDI in greenfield pharma via the automatic route, 100% in browfield pharma – of which 74% will be through automatic route – 100% FDI in scheduled airlines, and up to 49% FDI in airlines through automatic route. While FDI in defence beyond 49% was already allowed through approval route and up to 49% through automatic route, the new norms have done away with the condition of access to ‘state-of-art’ technology in the country for FDI more than 49%.

MCA : Forms AOC-4 XBRL, GNL-1, INC-6, INC-2 and CRA-2 are likely to be revised on MCA21 Company Forms Download page w.e.f 25th June 2016. Stakeholders are advised to check the latest version before filing.

PPF : The Central Government has amended Public Provident Fund Scheme, 1968. This Scheme may be called Public Provident Fund (Amendment) Scheme, 2016. It shall come into force on the date of its publication in the Official Gazette. The Government changed the norms for Public Provident Fund deposits, allowing the subscribers of the scheme to prematurely close their accounts and withdrawal the complete amount after five years. However, the withdrawal will be allowed for expenditure towards higher education or medical treatment. Currently, the lock-in-period for complete withdrawal from PPF accounts is 15 years.

Annual filing forms for Companies Act, 1956 – 23AC, 23ACA, 23B, 20B, 21A are likely to be available on MCA21 portal by mid-August 2016.

Interest rate on PPF retains at 8.1% for quarter ending September, 2016, same as stayed in 1st Quarter of 2016-17.

MCA has changed Version of e-forms MR-1 (Return of Appointment of MD/WTD/Manager), CHG-1 (Application for Registration of Creation, Modification of charge other than those related to debenture), CHG-4 (Particulars for satisfaction of charge thereof), MGT-14 (Filing of Resolutions and Agreements to the Registrar) w.e.f 7th June, 2016. The form has been updated on MCA Portal. Only new version of e-form will be acceptable. Stakeholders are requested to plan accordingly and ensure that latest version of form is downloaded for e-filing. Form- wise date of last version change is available at on the website of MCA.

KEY DATES


Payment of ESI for the month of May- 21-06-2016

E-Payment of DVAT & CST tax for the month of May -21-06-2016

Issue of TDS certificate in case of payment/credit made in the month of May for purchase of property u/s 194IA -22-06-2016

Issue of DVAT certificate for deduction made in month of May -22-06-2016

Advance Information for 1st fortnight of July of functions with booking cost more than Rs. 1 lakh in Banquet halls; hotels etc. in Delhi in form No. BE-2 under DVAT Act. – 27-06-2016

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