{"id":1653,"date":"2016-01-20T17:35:24","date_gmt":"2016-01-20T12:05:24","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=1653"},"modified":"2022-01-19T12:10:31","modified_gmt":"2022-01-19T06:40:31","slug":"corporate-and-professional-update-january-132016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d01c6e65dcc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d01c6e65dcc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_132016\" title=\"CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#DIRECT_TAX\" title=\"DIRECT TAX:\">DIRECT TAX:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#INDIRECT_TAX\" title=\"INDIRECT TAX:\">INDIRECT TAX:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#COMPANY_LAW\" title=\"COMPANY LAW:\">COMPANY LAW:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#CORPORATE_SOCIAL_RESPONSIBILITY\" title=\"CORPORATE SOCIAL RESPONSIBILITY\">CORPORATE SOCIAL RESPONSIBILITY<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-132016\/#OTHER_UPDATES\" title=\"OTHER UPDATES:\">OTHER UPDATES:<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 style=\"text-align: justify;\"><\/h3>\n<h3 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled5A.png\" rel=\"attachment wp-att-1692\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1692\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled5A-300x170.png\" alt=\"Untitled5A\" width=\"782\" height=\"443\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled5A-300x170.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled5A.png 548w\" sizes=\"(max-width: 782px) 100vw, 782px\" \/><\/a><\/strong><\/span><\/h3>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_132016\"><\/span><span style=\"color: #000080;\"><strong>CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"DIRECT_TAX\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">DIRECT TAX:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax<\/a> 1st Amendment Rules, 2016 Notified vide notification no. 3\/2016\/2015.<\/li>\n<li>Corrigendum to Notification No. 93\/2015 dated 16\/12\/2015 has been issued vide Notification No 1\/2016 &#8211; Dated 12-1-2016.<\/li>\n<li><strong><span style=\"color: #800000;\">Service of an independent contractor &#8211;<\/span> <\/strong>whether would be taxable as salary contrary to the contract of service &#8211; Whether it is professional or skilled work; nature of establishment and the right to reject are also required to be scanned before arriving at the conclusion of the employer-employee relations.\u00a0Suresh Kumar Hooda Versus The Commissioner of Income Tax, Rohtak and another.<\/li>\n<li><span style=\"color: #800000;\"><strong>Allowability of exemption u\/s 10(1)<\/strong><\/span> &#8211; For earning agricultural income it is not necessary that the assessee must own the land and it is enough if it is established that the agricultural organizations have been actually carried on by the assessee.\u00a0Monsanto India Ltd Versus Addl Commissioner of Income Tax.<\/li>\n<li>Protocol amending the agreement between Government of the Republic of India and the Government of the Republic of Belarus for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on property (Capital) notified vide notification no. 2\/2016.<\/li>\n<li><span style=\"color: #800000;\"><strong>Transfer pricing adjustment<\/strong><\/span> &#8211; TPO take the amount of ALP at NIL &#8211; determination of Management Consultancy Fee &#8211; foreign exchange loss in financial transactions cannot be considered as service charge for the intra group- (M\/s. DQ Entertainment (International) Ltd, Versus Asst. Commissioner of <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax<\/a>, Circle-1 (2) , Hyderabad &#8211; 2016 (1) TMI 451 &#8211; ITAT HYDERABAD).<\/li>\n<li><span style=\"color: #800000;\"><strong>Reopening of assessment<\/strong> <\/span>&#8211; it is evident that the AO did not corroborate or examine the information received from the investigation wing before recording his own satisfaction of escaped income and initiating the reassessment proceedings. &#8211; Notice u\/s 148 quashed &#8211; Tri &#8211; Income Tax- (Vardai Overseas (P) Ltd. C\/o Shri V.K. Sabharwal, Adv. Versus Income Tax Officer, Ward-8 (3) , New Delhi-2016 (1) TMI 450 &#8211; ITAT DELHI)<\/li>\n<li><strong><span style=\"color: #800000;\">IT:<\/span><\/strong>Service of an independent contractor &#8211; nature of establishment and the right to reject are also required to be scanned before arriving at the conclusion of the employer-employee relations &#8211;\u00a0Suresh Kumar Hooda Vs. CIT, Rohtak and anr (Punjab &amp; Haryana High Court).<\/li>\n<li><span style=\"color: #800000;\"><strong>DTAA<\/strong>:<\/span>Amendment made in the Agreement between Republic of India and the Government of the Republic of Belarus to make the treaty effective from 19 NOV 2015 &#8211;\u00a0Notification No.2\/2016, Dt.13th\u00a0Jan 2016.<\/li>\n<li><a href=\"https:\/\/carajput.com\/income-tax-services.php\"><span style=\"color: #800000;\"><strong>IT:<\/strong><\/span><\/a>\u00a0\u00a0Addition u\/s 68 &#8211; cash credit &#8211; the alleged surplus cash accumulated in the cash book out of the withdrawals from the bank is to be considered as source of re-deposit &#8211;\u00a0Minalben Dipakbhai Mehta Vs. ITO, W-3(3) Suat (ITAT Ahmedabad)<\/li>\n<li><strong><span style=\"color: #800000;\">ITAT<\/span><\/strong> affirms sanctity of CA certificate; denies to impose penalty for <a href=\"https:\/\/carajput.com\/tds.php\">TDS<\/a> default relying upon such certificate [2016] 65\u00a0taxmann.com\u00a068 (Mumbai &#8211; Trib.)\u00a0 ADIT (IT) v. Leighton Welspun Contractors (P.) Ltd.<\/li>\n<li>On foreign travel of directors disallowed as company had no business in such locations [2016] \u00a092 (Bombay)\u00a0Advance Power Display Systems Ltd. v. CIT<\/li>\n<li>Trading in derivate can&#8217;t be held as speculative if co. has only income from other sources<br \/>\n[2016] \u00a062 (Delhi &#8211; Trib.)\u00a0A.K. Capital Markets Ltd. v. DCIT<\/li>\n<li><span style=\"color: #800000;\"><strong><a href=\"https:\/\/carajput.com\/tds.php\">TDS<\/a> u\/s 194J<\/strong><\/span> &#8211; Procurement of ready study data by the parent company from another foreign company and supplying it to the assessee amounts &#8211; Non deduction of tds on technical services rendered to a resident &#8211; No TDS required.\u00a0Commissioner\u00a0of Income Tax (Tds) Versus Heramec Ltd\u00a0&#8211; 2016 (1) TMI 503 &#8211; ANDHRA PRADESH HIGH COURT<\/li>\n<li><span style=\"color: #800000;\"><strong>Addition u\/s 68 cash credit<\/strong><\/span> &#8211; the alleged surplus cash accumulated in the cash book out of the withdrawals from the bank is to be considered as source of re-deposit.\u00a0Smt. Minalben Dipakbhai Mehta Versus ITO, Ward-3 (3) Suat. &#8211; 2016 (1) TMI 489 &#8211; ITAT AHMEDABAD<\/li>\n<li>Initiatives taken by CBDT to reduce litigation<\/li>\n<li>Now CBDT would issue refunds up to Rs. 5,000 without adjustment of outstanding tax liability<\/li>\n<li>CBDT notifies forms for accumulation of income by a trust<\/li>\n<li><span style=\"color: #800000;\"><strong>Disallowance on account of interest expenses u\/s.40A(2)(b)<\/strong><\/span> &#8211; the unsecured loan was required to be paid on demand but in the case of related parties there was no such condition. We are of the considered view that the interest 18 is reasonable- (Asian Mills Pvt. Ltd. Versus Deputy Commissioner of Income Tax, Addl. Commissioner of Income Tax\u00a0&#8211; 2016 (1) TMI 449 &#8211; ITAT AHMEDABAD).<\/li>\n<li>Disallowance u\/s 14A gets attracted even if a mix of interest bearing &amp; non-bearing funds used to make investments earning exempt income [M\/s Thermotech Engineering vs. ACIT, Pune (ITAT Pune), ITA No.- 533\/PN\/2013, A.Y 2009-10].<\/li>\n<li>Cancellation of Registration u\/s 12AA(3) should be based on activities of Trust and not of Trustees [Friends of WWB India vs Director of Income Tax-Exemption (ITAT Ahmedabad), ITA No. 2076\/Ahd\/2014, A.Y 2009-10].<\/li>\n<li><strong><span style=\"color: #800000;\">IT:<\/span>\u00a0<\/strong>Addition u\/s 68 &#8211; The existence of shares of 1,50,000 in the hands of assessee was established by filing concerned demat account. Therefore the conditions for making addition under section 68 were missing &#8211;\u00a0<strong>ACIT-13(3), Mumbai Vs.\u00a0 Late Shri Himatlal H. Dadia (ITAT MUMBAI)<\/strong><\/li>\n<li>Initiation of penalty proceedings u\/s 271(1)(c) without specifying basis makes such proceedings void -ab-initio.<\/li>\n<li>Benefit of reduced penalty allowed if duty and interest paid\u00a0within 30 days\u00a0of communication of SCN\/order [Principal Commissioner of <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a> vs. Tops Security Ltd (Delhi High Court); CEAC 42\/2015].<\/li>\n<li><span style=\"color: #800000;\"><strong>Tax Reforms Committee submits its first report<\/strong> <\/span>\u2013 Recommends presumptive scheme for professionals, lower TDS rates<\/li>\n<li><span style=\"color: #800000;\"><strong>IT<\/strong>:<\/span> Easwar Committee\u00a0suggested several taxpayer-friendly measures to improve ease of doing business, reduce litigation and accelerate the resolution of tax disputes, such as:<\/li>\n<li>Simplifying provisions related to TDS and increase in threshold for payment subject to TDS<\/li>\n<li>TDS rates for individuals be reduced to 5% from 10%<\/li>\n<li>Deletion of Section 143 (1D) to avoid undesirable delay in issue of refund<\/li>\n<li>Making the process of refunds faster and paying 12-18% interest if a refund issued beyond 6 months.<\/li>\n<li>Payment of Interest on refund due out of Self Assessment Tax<\/li>\n<li>Stock trading gains of up to\u00a0Rs.5 Lac to be treated as capital gains and not business income<\/li>\n<li>Deptt. to desist from the practice of adjusting tax demand of a taxpayer whose tax return is under assessment against legitimate refunds due.<\/li>\n<li>Deferring the contentious Income Computation and Disclosure Standards (ICDS) provision.<\/li>\n<li><span style=\"color: #800000;\"><strong>IT:\u00a0<\/strong><\/span><strong>\u00a0<\/strong>Disallowance on account of bogus purchases &#8211; Merely because notices u\/s 133(6) could not be served on the suppliers assessee- buyer cannot be put to an inconvenience of disallowance when he has provided the correct address of those parties &#8211;\u00a0<strong>DCIT Versus Norma India Ltd. (ITAT Delhi)<\/strong><\/li>\n<\/ul>\n<p>more updates for related blogs are:<\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/press-releases\/sebi-has-extended-the-date-from-30-june-to-15-sept-2020-for-filing-of-financial-results.pdf\">SEBI has extended the date from 30 June to 15 Sept 2020 for the filing of financial results<\/a><\/strong><\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/archives\/amendments-in-sebi-listing-obligations-and-disclosure-requirements-regulations-2015.pdf\">Amendments in SEBI -Listing Obligations and Disclosure Requirements Regulations 2015<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"INDIRECT_TAX\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">INDIRECT TAX:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>It is here by seeked to further amend notification No 12\/2012-Central Excise dated 17.03.2012 so as to increase the Basic Excise Duty rates on Petrol and Diesel(both unbranded and branded).<\/li>\n<li>Introduction of Tariff Notification in respect of fixation of tariff value of Edible Oil, Brass, Poppy Seed, Areca Nut, Gold &amp; Silver.<\/li>\n<li>Activities of street light maintenance cannot be equated with the maintenance of road bridge-tunnel etc. &#8211; Exemption not available &#8211; In Re : K. Ram Mohan &#8211; 2016 (1) TMI 543 &#8211; AUTHORITY FOR ADVANCE RULINGS, NEW DELHI<\/li>\n<li><span style=\"color: #800000;\"><strong>Area-based exemption<\/strong> <\/span>&#8211; substantial expansion by way of installed capacity by not less than 25 &#8211; Notification No. 50\/2003-CE dated 10\/6\/03 &#8211; it was contended that production capacity of the both the units are to be counted as one &#8211; benefit of exemption allowed-\u00a0CCE, Meerut &#8211; II Versus M\/s Prakash Straw Board Pvt. Ltd.\u00a0&#8211; 2016 (1) TMI 521 &#8211; CESTAT NEW DELHI<\/li>\n<li><span style=\"color: #800000;\"><strong>ST<\/strong>:<\/span> Activities of street light maintenance cannot be equated with the maintenance of road bridge-tunnel etc. &#8211; Exemption not available &#8211; K. Ram Mohan (Authority for Advance Rulings, New Delhi).<\/li>\n<li><strong><span style=\"color: #800000;\">ST:<\/span><\/strong>\u00a0Govt. is considering higher <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a> Exemption Limit to benefit small service provides.<\/li>\n<li>Likely to hike Service Tax exemption threshold for small service providers &#8220;service tax exemption threshold limit could be hiked from Rs 10 lakh to Rs 25 lakh.&#8221; said a government source.<\/li>\n<li><strong><span style=\"color: #800000;\">Service-tax:<\/span><\/strong> &#8216;Mistaken payment&#8217; of service tax in excess of actually payable amount amounts to &#8216;deposit&#8217; and time-limit of section 11B would not apply to refund thereof [2016] 57 (Ahmedabad &#8211; CESTAT)\u00a0Nobles Constructions Gujarat (P.) Ltd. v. Commissioner of Service Tax.<\/li>\n<li>Mobile phone and courier services used for business purposes are eligible for credit [2016] 65\u00a0taxmann.com\u00a088 (Ahmedabad &#8211; CESTAT)\u00a0Commissioner of Central Excise &amp; Service Tax v. Miranda Tools<\/li>\n<li><strong><span style=\"color: #800000;\">ST:<\/span><\/strong>\u00a0Restoration of appeal &#8211; CESTAT dismissed the appeal for non compliance of stay order &#8211; the delay of 5 days in depositing the amount is condoned &#8211; appeal restored before the tribunal &#8211;\u00a0M\/s MPA Marketing Pvt. Ltd. Vs. CESTAT &amp; anr (Punjab And Haryana High Court)<\/li>\n<li><span style=\"color: #800000;\"><strong>Levy of personal penalty on co-noticees<\/strong><\/span> &#8211; when the proceedings against the manufacturer\/assessee stand concluded on payment of disputed amount of duty plus interest plus 25 of the duty as penalty there would be no sense in continuing the proceedings for imposition of penalty under Rule 26 against other persons like traders who had purchased the goods &#8211; (Commissioner of Central Excise And Customs Aurangabad \/ Nashik \u2013 II Versus Ambika Waste Management Pvt Ltd, Ambadas Santosh Ngargoje, Harishkumar Harjivandas Gandhi, Shree Salasar Ispat Pvt Ltd\u00a0&#8211; 2016 (1) TMI 438 &#8211; CESTAT MUMBAI).<\/li>\n<li><strong><span style=\"color: #800000;\">Cenvat Credit<\/span><\/strong> &#8211; Eligible input services &#8211; Other welfare service i.e. service tax paid on the services of purchase of gift and setting up of mandap in the factory premises for celebrating Dussera festival is not eligible to be held as credit as this seems to be not connected with the business of the appellant-\u00a0(Mahindra Casting Ltd. Versus Commissioner of Central Excise, Pune I\u00a0&#8211; 2016 (1) TMI 437 &#8211; CESTAT MUMBAI).<\/li>\n<li><span style=\"color: #800000;\"><strong><a href=\"https:\/\/carajput.com\/services-vat.php\">VAT<\/a>:\u00a0<\/strong><\/span>Form GE-I &amp; GE-II for the period from Apr, 2015 to Dec, 2015 to be furnished by 15 FEB 2016. Notification, dt.12 JAN 2016.<\/li>\n<li><span style=\"color: #800000;\"><strong>DVAT:<\/strong><\/span>&#8211; All Govt Entities having their offices functioning within NCT of Delhi are required to furnish an Quarterly Return in \u2018Form GE-II\u2019, of purchases made by them for purpose of consumption or use by them from the dealers registered under the Act and having a valid TIN.<\/li>\n<li><span style=\"color: #800000;\"><strong>Restoration of appeal<\/strong> <\/span>&#8211; CESTAT dismissed the appeal for non compliance of stay order &#8211; the delay of 5 days in depositing the amount is condoned &#8211; appeal restored before the tribunal-\u00a0M\/s MPA Marketing Pvt. Limited Versus Customs, Excise and Service Tax Appellate Tribunal\u00a0and another &#8211; 2016 (1) TMI 482 &#8211; PUNJAB AND HARYANA HIGH COURT<\/li>\n<li><span style=\"color: #800000;\"><strong>ST:<\/strong><\/span>\u00a0Incentive received for achieving the targets is not excludible from the assessable value of the service which as per Sec-67 is the gross amount received for the service rendered &#8211;\u00a0M\/s Hari Om Telecom Vs. CCE, Chandigarh (CESTAT New Delhi)<\/li>\n<li>Likely to hike Service Tax exemption threshold for small service providers<br \/>\nIt may enhance to 25 lacs.<\/li>\n<li><a href=\"https:\/\/carajput.com\/services-vat.php\">Delhi VAT<\/a> authority isn&#8217;t empowered to pass an order until power thereof is delegated by Commissioner[2016] \u00a0103 (Delhi)\u00a0Yongnam Engineering &amp; Construction (P.) Ltd. v. Commissioner, DVAT<\/li>\n<li><span style=\"color: #800000;\"><strong>DVAT:<\/strong><\/span> Due date to file Form-9 (Online Reconciliation Return) extended to 29.2.16. Cir.No.34, dt.15.01.2016.<\/li>\n<li>Delhi VAT-Filling of reconciliation return for year 2014-15- Date extended to 29.02.2016.<\/li>\n<li>Increase in Excise Duty on Petrol by 75 paise and on Diesel by Rs. 2 per litre [Notification No. 2\/2016-Central Excise]<\/li>\n<li><strong><span style=\"color: #800000;\">ST:<\/span>\u00a0<\/strong>Refund &#8211; service tax was mistakenly paid &#8211; amount paid by the appellant under Manpower Recruitment Agency Services is required to be refunded because no tax can be collected without the authority of law &#8211;<strong>Sharam Sewa Associates Vs. CCE, Allahabad (CESTAT Allahabad)<\/strong><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"COMPANY_LAW\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">COMPANY LAW:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Query:<\/span>\u00a0<\/strong>A <a href=\"https:\/\/carajput.com\/services\/private-limited-company-registration.php\">Private Limited company<\/a> accepted unsecured loan from its existing two Directors. This is exempt deposit under section 73 of the Companies Act, 2013. Subsequently above two Directors resigned from the Directorship of the Company. Is the loan becomes deposits after their resignation? Is the loan becomes repayable after resignation not to attract deposit Rules?<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Answer:<\/span>\u00a0<\/strong>There is no necessity to repay the loan immediately and at the time of acceptance of loan from the person who has given loan were directors of the company and the money can be retained till the date of maturity.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Query:<\/strong><\/span>Whether Security Deposit given to Director for taking his premises on rent will attract section 185? Please Guide.<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Answer:<\/span>\u00a0<\/strong>Yes, it attract section 185 but not applicable in case of private company if- a) In share capital of private company, no other body corporate has invested any money and, b) If the borrowings of such company from banks\/ Financial Institutions\/ body corporate is less than twice of its paid-up capital or Rs. 50 Crore (Whichever is lower) and, c) Company has no default in repayment of such borrowings, and also not applicable in case of public company, if- loan given to a M.D or W.T.D as part of conditions of service or Approved by a Special Resolution.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Query:<\/strong><\/span>One company is having 1 subsidiary and 2 associates companies as on 31.03.2015. Whether consolidation of all the companies is required or only the consolidation of subsidiary companies?<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Answer:<\/span>\u00a0<\/strong>As per Section 129(3) of the Companies Act 2013, where a company has one or more subsidiaries, it shall, in addition to financial statements provided under sub section (2), prepare a consolidated financial statement of the company and of all subsidiaries in the same form and manner as that of its own which shall also be laid before the annual general meeting of the company along with the laying of its financial statement under sub section (2). Further explanation to this sub section provides that \u201cthe word subsidiary shall include associate company and joint venture\u201d.<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Query:<\/span>\u00a0<\/strong>Kindly provide me the Consent letter format for conducting EGM at shorter notice?<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Answer:<\/span>\u00a0<\/strong>Unlike the Companies Act, 1956, the MCA does not provide any format. Even there is no format provided in the Rules. In fact proviso to sub section 1 of section 101 only mentions that the shorter notice to be given by the shareholders. Wherever in the MCA the section mentions that &#8220;as may be prescribed&#8221; the same has been provided by the Rules. As the phrase \u201cas may be prescribed&#8221; is not mentioned in the section, the presumption is that no format would be prescribed. Thus liberty has been granted to the shareholders with regard to the fomat of the notice. The safe course would be to follow the form 22A prescribed under the Companies Act, 1956 with requisite changes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"CORPORATE_SOCIAL_RESPONSIBILITY\"><\/span><span style=\"color: #ff6600;\"><strong>CORPORATE SOCIAL RESPONSIBILITY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Query:<\/strong><\/span>What is meaning of \u2018any financial year\u2019 mentioned in Section 135 (1) of the Companies Act, 2013?<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Answer:<\/strong><\/span>\u00a0\u201cAny Financial year\u201d referred under Sub- Section (1) of Section 135, implies any of the three preceding financial years<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Query:<\/strong><\/span> Compliance under section 135 of the Act i.e. Corporate Social Responsibility, is applicable from which Financial Year?<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Answer:<\/strong><\/span>\u00a0the spending of requisite amount on CSR activities came into force from April, 2014.<\/p>\n<ul style=\"text-align: justify;\">\n<li>Central Government has notified 13th day of January 2016 as the date from which commencement if section (5), (6), (7) of Section 125 of Companies Act, 2013 come into force except with respect to manner of administration of the Investor Education &amp; Protection fund.<\/li>\n<li>MCA has\u00a0issued Frequently Asked Questions (FAQs) with regard to Corporate Social Responsibility under section 135 of the Companies Act,2013 vide General Circular 1\/ 2016 dated 12.01.2016.<\/li>\n<li><strong><span style=\"color: #800000;\">MCA:\u00a0<\/span><\/strong>Services on the www.mca.gov.in portal will not be available from 08:00 AM to 06:00 PM on Saturday, 16th JAN 2016\u00a0due to periodic maintenance activities.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"OTHER_UPDATES\"><\/span><span style=\"color: #ff6600;\"><strong><span style=\"text-decoration: underline;\">OTHER UPDATES:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul style=\"text-align: justify;\">\n<li><strong><span style=\"color: #800000;\">Startup India:<\/span>\u00a0<\/strong>Hon&#8217;ble PM Modi launches Startup India Program on Sat, 16 JAN 2016 to boost innovation based business with many incentives and ease of doing business.<\/li>\n<li><strong><span style=\"color: #800000;\">ICAI:<\/span>\u00a0<\/strong>Result of the CA Final Exams\u00a0held in Nov\u2019\u00a02015 and CPT\u00a0Exams\u00a0held in Dec,\u00a02015 declared\u00a0y\u2019day\u00a0(17-01-2016)\u00a0\u2013 Congrats who cleared and all the Best who appears next time.<\/li>\n<li>We congratulate our CA students, who have passed exams. CA result analysis:\u00a0CA final both group 5.75 %,\u00a0Group 1- 12.61%,\u00a0Group 2- 11.99 %,\u00a0CPT -34.45 %.<\/li>\n<li>Sovereign Gold Bonds, 2016 to be open for subscription from\u00a018.01.2016 to 22.01.2016 vide its Notification F.No. 4(19)-W&amp;M\/2014 dated 14.01.2016.<\/li>\n<li>Rules for the Investor education &amp; protection fund authority (Appointment of Chair Person and Members, holding meeting and provision for offices and officers) Rules 2016.<\/li>\n<li>All Govt. entities in Delhi to file return for purchases made by them for purpose of consumption<\/li>\n<li>New Juvenile Justice Act comes into force from Jan 15, 2016.<\/li>\n<li>Stamp duty paid to increase authorised capital is capital expenditure [2016] 65\u00a0taxmann.com\u00a094 (Mumbai &#8211; Trib.) Inventurus Knowledge Services (P.) Ltd. v. ITO<\/li>\n<li>CCI:\u00a0Shri Devender Kumar Sikri, an officer of 1975 batch IAS took oath as Chairman of Competition Commission of India (CCI).<\/li>\n<li><strong><span style=\"color: #800000;\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/sebi-investment-advisors-amendment-regulations-2020\/\">SEBI<\/a>:<\/span><\/strong>\u00a0SEBI has established its Local Office at Jammu\u00a0under the administrative control of its Northern Regional Office at New Delhi.<\/li>\n<li>ICAI has extended last date \u201cfor complying with the CPE hours requirement for the Calendar Year 2015\u201d &#8211; from 31st December, 2015 to 31st March, 2016.<\/li>\n<li>Applicability of MRP based valuation to institutional buyers for goods specified U\/s. 4A of Excise Act.<\/li>\n<li>Refund allowable where Service tax is paid twice by Appellant due to clerical error [Tikaula Sugar Mills Ltd. Vs. CCE, Meerut-I (2015 (12) TMI 884 \u2013 CESTAT New Delhi)].<\/li>\n<li>Rent-a-cab services to SEZ Unit for transportation of its staff to and from their residence is exempt from Service Tax.<\/li>\n<li>Minister of State for Finance Jayant Sinha\u00a0on Thursday\u00a0said that the government will present the Budget for 2016-17 on\u00a0February 29, 2016.<\/li>\n<li>Section 80IB(10) &#8211; Canopy\/ Porch cannot be treated as part of Built up Area as it is not habitable [DCIT vs. Smt. Suman Jagannath Pharande (ITAT Pune)].<\/li>\n<li>Revision valid under section 263 where AO has not made any enquiry about quantification of losses claimed [ITAT Delhi in the case of G. E. Money Financial Services Ltd. vs. DCIT].<\/li>\n<li>Being ownership vest with lessor in leased including sale &amp; lease back assets, depreciation u\/s 32 allowed [ITAT Mumbai in the case of ICICI Ltd. vs. ACIT].<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">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\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE JANUARY 13,2016 DIRECT TAX: Income Tax 1st Amendment Rules, 2016 Notified vide notification no. 3\/2016\/2015. Corrigendum to Notification No. 93\/2015 dated 16\/12\/2015 has been issued vide Notification No 1\/2016 &#8211; Dated 12-1-2016. Service of an independent contractor &#8211; whether would be taxable as salary contrary to the contract of service &#8211; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9933],"tags":[5579,5,9041,5932,4036,9067],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1653"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=1653"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1653\/revisions"}],"predecessor-version":[{"id":14250,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1653\/revisions\/14250"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=1653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=1653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=1653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}