Archives for 2017

Maternity Benefit (Amendment) Bill, 2016:

The Parliament has passed the Maternity Benefit (Amendment) Bill, 2016 which has already been passed by the Rajya sabha during the winter session of Parliament. The Maternity Benefit Act 1961 protects the employment of women during the time of her maternity and entitles her of a ‘maternity benefits’ including full paid absence from work – to take care for her child. The Act is applicable to all establishments employing 10 or more persons. The amendments will help 1.8 million (approx.) women workforce in organised sector. Salient Features of the Bill includes Maternity leave available to the working women to be increased from 12 weeks to 26 weeks for the first two children and every establishment with more than 50 employees to provide for crèche facilities for working mothers and such mothers will be permitted to make four visits during working hours to look after and feed the child in the crèche. Further, the employer may permit a woman to work from home if it is possible to do so.

CBDT

CBDT has issued a press release stating that India and Belgium have signed a Protocol amending the existing Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. The Protocol will broaden the scope of the existing framework of exchange of tax related information which will help curb tax evasion and tax avoidance between the two countries and will also enable mutual assistance in collection of taxes. Fighting the menace of Black Money stashed in offshore accounts has been a key priority area for the Government.

BSE – Listing Fees

The Bombay Stock Exchange (BSE) has revised its Annual Listing Fees to be paid by the listed entities for listing of its securities on the Exchange. The new Annual Listing Fees shall be effective from April 1, 2017. The capital to be considered for the revised schedule of fee shall includes Equity Shares, Preference Shares, Indian Depository Receipts, Fully Convertible Debentures, Partly Convertible Debentures and any other security convertible into equity shares. Further, in case of Debenture Capital (not convertible into equity shares) listed prior to April 1, 2017, the fees applicable will be 75% of the revised fees.

SEBI

SEBI has notified the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 which shall come into force on the date of their publication in the Official Gazette. An attempt has been made to introduce online payment modes i.e NEFT/RTGS/IMPS or any other mode as may be allowed by RBI. Further, revised schedule of fees for various segment is also substituted.

NCLT:

MCA has altered the Territorial Jurisdiction of National Company Law Tribunal Bench vide notification issued on 03-02-2017. All cases pertaining to State of Haryana, shall be omitted from the Jurisdiction of National Company Law Tribunal, New Delhi Bench and shall be a under the jurisdiction of National Company Law Tribunal, Chandigarh Bench. Further, NCLT has now issued an order (copy here) stating that all pending matters at NCLT, New Delhi Bench pertaining to the State of Haryana shall now transferred to NCLT, Chandigarh Bench with immediate effect i.e 06-03-2017.

IBBI:

The Insolvency and Bankruptcy Board of India (Board) has recognises two Delhi based entities as Insolvency Professional Entities under the provisions of the Insolvency and Bankruptcy Code, 2016. The Code offers a market determined, time bound mechanism for orderly resolution of insolvency, wherever possible, and orderly exit, wherever required. It envisages an ecosystem comprising National Company Law Appellate Tribunal (NCLAT), National Company Law Tribunal (NCLT), Debt Recovery Appellate Tribunal (DRAT), Debt Recovery Tribunal (DRT), Insolvency and Bankruptcy Board of India (Board), Information Utilities (IUs), Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs) and Insolvency Professional Entities (IPEs) for implementation of the Code. A limited liability partnership, a registered partnership firm or a company may be recognised by the Board as an IPE if (a) a majority of the partners of the limited liability partnership or registered partnership firm are registered as insolvency professionals; or (b) a majority of the whole-time directors of the company are registered as insolvency professionals, as the case may be. An IPE is jointly and severally liable for all acts or omissions of its partners or directors as IPs committed during such partnership or directorship.

On this International Women’s Day, I find it great opportunity to express my deep felt gratitude towards every woman who has been there in my life as mother, sister, teacher, friend, wife, daughter etc. Thanks a lot for making this world a better place to live in!!!! Happy Women’s Day.

NCLT

NCLT has issued a notice (Copy here), to inform all stakeholders that some of the Company matters having jurisdiction at NCLT, New Delhi, related to winding up and merger filed under the relevant provisions of companies act 2013, have been received in this Tribunal from Hon’ble High Courts of Delhi & Hon’ble High Court of Rajasthan. All the matters from Delhi High Court have been received in digital form whereas proceeding at NCLT is being done on physical paper back copies of the complete application. In this regard, all concerned are requested to submit two sets of petition in hard copy (paper back) and other information in terms of notification of MCA dated 7th December, 2016 before their respective date of hearing with the NCLT, New Delhi.

RBI

RBI has notified that, in order to have uniformity in reporting, reconciliation and accounting, agency banks may report the Gold Monetisation Scheme transactions i.e., receipt, payment, penalty, interest, commission for mobilisation, handing charges, etc., directly through the government account maintained for the purpose at Central Accounts Section, Reserve Bank of India, Nagpur, on a daily basis as in the case of the transactions of Public Provident Fund (PPF) Scheme, 1968. Further, branches authorised to operate the scheme may be advised to bring the details of the scheme to the notice of their customers appropriately.

IPR – Trade Mark

The Ministry of Commerce & Industry (Department of Industrial Policy & Promotion) has notified the Trade Mark Rules, 2017 which have come into effect from 6th March, 2017. These Rules, which replace the erstwhile Trade Mark Rules 2002, will streamline and simplify the processing of Trade Mark applications. Some salient features of the revamped Rules includes – Number of Trade Mark (TM) Forms have been reduced from 74 to 8; to promote e-filing of TM applications, the fee for online filing has been kept at 10% lower than that for physical filing; Based on stakeholders feedback, the fees for Individuals, Start-ups and Small Enterprises have been reduced from that proposed in the draft Rules i.e. only Rs 4,500 as against Rs 8,000 for e-filing of TM applications proposed at the draft stage; Hearing through video conferencing has been introduced; Modalities for determination of well-known trademarks have been laid out for the first time.

RBI

The RBI has notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017 which shall come into force from the date of their publication in the Official Gazette. The amendment has been made in Regulation 5, for the existing sub-regulation (9), which deals with the terms and conditions w.r.t investment capital contribution or by way of acquisition / transfer of profit shares in the capital structure of an LLP by a person resident outside India.

News from NIRC of ICSI

NIRC of ICSI is organising One day Seminar on the occasion of International Women’s Day on the theme CS WOMEN : EMPOWERED & EMPOWERING on Wednesday, the 8th March, 2017 from 10 AM onwards at Airforce Auditorium, Subroto Park, Near Dhaula Kuan, New Delhi. In order to make necessary arrangements, members are required to enroll well in advance with NIRC. Fee : Rs. 500/-; Free for the Corporate Members & YUVA Corporate Members of NIRC. Online Payment/ Registration can be made through PAYTM. PCH – 4.

MCA

The Ministry of Corporate Affairs has notified the amended Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 which shall come into force from the 28th February, 2017. Through this amendment a detailed procedure has been prescribed for transfer of shares to the Authority and for the purposes of effecting transfer of such shares, the Board shall authorise the Company Secretary or any other person to sign the necessary documents. Further, the process for Refund to claimants from Fund has been revised.

MCA

MCA hasrevised the versions of eForm – Form AOC-4 CFS (Form for filing consolidated financial statements and other documents with the Registrar), Form GNL-1 (Applications made to Registrar of Companies), and Form GNL-3 (Details of persons/directors/charged/specified), are likely to be revised on MCA portal with effect from 8th March 2017. Stakeholders will be allowed to download new version of the forms with effect from 8th March 2017. All the stake holders are advised to check the latest version of the form before filing.

News from NIRC of ICSI

NIRC of ICSI is organising One day Seminar on the occasion of International Women’s Day on the theme CS WOMEN : EMPOWERED & EMPOWERING on Wednesday, the 8th March, 2017 from 10 AM onwards at Airforce Auditorium, Subroto Park, Near Dhaula Kuan, New Delhi. In order to make necessary arrangements, members are required to enroll well in advance with NIRC. Fee : Rs. 500/-; Free for the Corporate Members & YUVA Corporate Members of NIRC. Online Payment/ Registration can be made through PAYTM. PCH – 4.

MCA

MCA has notified the Companies (Transfer of Pending Proceedings) Amendment Rules, 2017 which shall come into force from the date of publication in the Official Gazette. The Petitions relating to winding up due to inability to pay debts, pending before a High Court, which have not been served to the concerned respondent, shall be transferred to the Benches of the NCLT in accordance with their territorial jurisdiction. However, the concerned petitioner shall be required to submit the requisite information, including details of the proposed insolvency professional, now within 6 months (instead of 60 days) of the Notification, failing which, the petition would abate. Further, according to the Rules, no fees shall be payable for proceedings transferred.

SEBI

SEBI has made amendments related to investments by Mutual Funds in hybrid securities such as units of REITs (Real Estate Investment Trust) / InvITs (Infrastructure Investment Trusts). The investment restrictions mentioned at Clause 13 in the Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996 shall be applicable to all fresh investments by all schemes, including an existing scheme. For investment in units of REITs/InvITs by an existing Mutual Fund scheme, unit holders of the scheme shall be given a time period of at least 15 days for the purpose of exercising the exit option. Further, the circular shall be applicable with immediate effect.

SEBI:

SEBI has permitted Foreign Portfolio Investors to invest in corporate debt securities and notified the SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2017. It has been decided to permit Foreign Portfolio Investors (FPIs) to invest in Unlisted corporate debt securities in the form of non-convertible debentures/bonds issued by public or private Indian companies subject to the guidelines issued by the Ministry of Corporate Affairs, Government of India from time to time and also subject to minimum residual maturity of three years and end use-restriction on investment in real estate business, capital market and purchase of land. Further, it has also been decided to permit Foreign Portfolio Investors (FPIs) to invest in Securitised debt instruments like any certificate or instrument issued by a special purpose vehicle (SPV) set up for securitisation of asset/s where banks, FIs or NBFCs are originators; and/or any certificate or instrument issued and listed in terms of the SEBI (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008. However, this Investment by FPIs shall not exceed INR 35,000 crore.

CBEC – Service Tax

The Central Government is satisfied that in the period commencing on and from the 1st day of July, 2012 and ending with the 31st day of March, 2015, according to a practice that was generally prevalent, there was non levy of service tax, on the services by way of admission to a museum and this service was liable to service tax, in the said period, which was not being paid according to the said practice. It has now been decided to provide exemption to service tax payable on the services by way of admission to a museum under section 66B of the Finance Act, 1994 but for the said practice, during the said period, shall not be required to be paid.

CBDT

CBDT has provided clarifications for determination of Place of Effective Management (POEM) of a company, other than an Indian company. The existing provisions of clause (ii) of sub section (3) of section 6 of the income tax act 1961, shall come into effect from April 1, 2017 and shall be applicable for assessment year 201-18 and subsequent years. Further, it is clarified that existing provisions of above clauses are not applicable to a company having a turnover or gross receipts of 50 crores or less, in a financial year.

CBEC

CBEC has launched a mobile application for Goods and Services Tax. The mobile application enables taxpayers to be well informed of the latest updates on GST. Taxpayers can readily access a host of GST information such as Migration to GST-Approach and guidelines for migration, Draft Law-Model GST Law, IGST Law and GST Compensation Law, Draft Rules-Rules related to Registration, Returns, Payment, Refund and Invoice and Frequently Asked Questions (FAQs) on GST etc. Taxpayers can also provide feedback and contact CBEC’s 24×7 helpdesk “CBEC Mitra” through a toll-free number or email, at the touch of a button. The mobile application can be downloaded free of cost on Android platforms. The iOS version will be made available shortly.

MCA:

MCA has issued Clarification on applicability of Provisions u/s 391(2) of Companies Act 2013 in the case of Closure of Place of Business in India of a Foreign Company. After reviewing the provisions of Section 391(2) of the Companies Act 2013 which stipulates Chapter XX shall apply mutatis mutandis, to closure of place of business of a foreign company in India, w.e.f. 15 Dec. 2016, as if it were a company incorporated in India. MCA has noted that provisions of Section 391(1) and 391(2) need to be read harmoniously and has clarified that provisions of Section 391(2) shall apply to only those foreign companies which have issued prospectus or IDRs pursuant to provisions of Chapter XXII of the Companies Act, 2013.

MINISTRY OF LABOUR AND EMPLOYMENT

Ministry of Labour and Employment, with an intent to ease of, and for the expedient compliance of the requirement of the various labour related laws and for the purpose of maintaining combined registers for all such laws, has notified the separate rules for the said purpose. These rules may be called the Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2017 which shall come into force on the date of their publication in the Official Gazette. The combined registers in the Forms specified in the Schedule to these rules shall be maintained either electronically or otherwise and used for the purposes, of the aforesaid enactments and the rules made there under, as specified therein. Necessary amendments to the Relevant rules governing the provisions of maintenance of the registers, are also being made through this Rule.