{"id":718,"date":"2015-12-07T06:33:40","date_gmt":"2015-12-07T06:33:40","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=718"},"modified":"2021-12-16T12:07:27","modified_gmt":"2021-12-16T06:37:27","slug":"corporate-and-professional-update-december-6-2015","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-6-2015\/","title":{"rendered":"corporate &#038; other laws update december 3, 2015"},"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-69d25dce52310\" 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-69d25dce52310\"  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-december-6-2015\/#CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_3_2015\" title=\"CORPORATE AND PROFESSIONAL UPDATE DECEMBER 3, 2015\">CORPORATE AND PROFESSIONAL UPDATE DECEMBER 3, 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-6-2015\/#FAQ_on_Company_Law\" title=\"FAQ on Company Law:\">FAQ on Company Law:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-6-2015\/#MCA_Update\" title=\"MCA Update:\">MCA Update:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-6-2015\/#Direct_taxes\" title=\"Direct taxes:\">Direct taxes:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-6-2015\/#Indirect_Taxes\" title=\"Indirect Taxes:\">Indirect Taxes:<\/a><\/li><\/ul><\/nav><\/div>\n<h2><\/h2>\n<h2><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled55.png\" rel=\"attachment wp-att-1565\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1565\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled55-300x186.png\" alt=\"Untitled55\" width=\"814\" height=\"505\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled55-300x186.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled55.png 497w\" sizes=\"(max-width: 814px) 100vw, 814px\" \/><\/a><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_DECEMBER_3_2015\"><\/span><strong><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE DECEMBER 3, 201<\/span><\/strong><span style=\"color: #000080;\"><strong>5<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"FAQ_on_Company_Law\"><\/span><span style=\"color: #000080;\"><strong>FAQ on Company Law:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Query:<\/strong> One of my client owns a Hospital and he is a practicing Surgeon and has been appointed by the <a href=\"https:\/\/carajput.com\/blog\/tag\/public-limited-company\/\">company<\/a> as its director and now it wants to pay him fee, on case to case basis, for surgery performed on the patients at the hospital.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"> Our query is whether payment of such fee to him would amount to payment of managerial remuneration to director under the Companies Act, 2013.<\/span><\/p>\n<p><span style=\"color: #000080;\">Please advise to ensure that the same does not contravene any provision of the Companies Act, 2013.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Answer:<\/strong> In the given case, a practicing Surgeon has been appointed as a director. He has to be paid fee for surgeries performed by him; it shall be fully possible under section 197(4) which states that the remuneration payable to the directors including MD or WTD or manager shall be inclusive of the remuneration payable for the services rendered by him in any other capacity except the following:<\/span><\/p>\n<p><span style=\"color: #000080;\">(a) the services rendered are of a professional nature; and<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">(b) in the opinion of the Nomination and Remuneration Committee (if applicable) or the Board of Directors in other cases, the director possesses the requisite qualification for the practice of the profession.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">The company can therefore, pay a remuneration as fee for surgeries performed by him as professional fee which shall not be construed as a Managerial Remuneration under the Act.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"MCA_Update\"><\/span><span style=\"color: #000080;\"><strong>MCA Update:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">Versions of Form DIR-3, DIR-6, FC-4, MGT-14, INC-7, INC-22, SH-7, INC-29, DIR-12, CHG-1 u[dated w.e.f 02\/12\/2015. Stakeholders are requested to plan accordingly.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Direct_taxes\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/popular-faq-on-direct-indirect-tax-corporate-regulatory-matters\/\"><span style=\"color: #000080;\"><strong>Direct taxes:<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">To exclude the work of fabrication from the works contract as per the work order would render it (works contract) truncated to a form not intended by the customer. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">This would strike as well at the root of the mandate of correlation of a works contract and the corresponding composition rate of tax as envisaged by Section 55A of the Act and the Notification issued thereunder-\u00a0(Voltas Ltd. Vs. State of Gujarat, Supreme Court).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">ITAT is right in holding that the unabsorbed depreciation should be allowed before the allowance of the unabsorbed investment allowance in computing income of the appellant\/assessee for the Assessment Year 1991-1992, when the assessee had not claimed the unabsorbed depreciation in its income-tax return though it had claimed depreciation for the current year-\u00a0(Seshasayee Paper &amp; Boards Ltd. Vs. DCIT, Supreme Court).<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Indirect_Taxes\"><\/span><span style=\"color: #000080;\"><strong>Indirect Taxes:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">Refund claim &#8211; CENVAT Credit &#8211; denial of Cenvat credit refund on the ground that supply of goods from one 100% EOU to another 100% EOU will not be considered as &#8216;physical export&#8217; is not proper &#8211; refund allowed-\u00a0(M\/s Apotex Pharmachem India Pvt. Ltd., Bangalore Versus Commissioner of Central Excise, Bangalore Central Excise, Commissionerate, Bangalore,CESTAT BANGALORE).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\">Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com\u00a0\u00a0or call at 9555555480<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE DECEMBER 3, 2015 FAQ on Company Law: Query: One of my client owns a Hospital and he is a practicing Surgeon and has been appointed by the company as its director and now it wants to pay him fee, on case to case basis, for surgery performed on the patients at &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,4],"tags":[3970,3969,3968],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/718"}],"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=718"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/718\/revisions"}],"predecessor-version":[{"id":870,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/718\/revisions\/870"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}