Corporate Updates – 15-05-2015

NCLT / NCLAT:

The Hon’ble Supreme Court upheld the Constitutionality of NCLT and NCLAT on the ground that the same has already been upheld in the case of Union of India v. R Gandhi and has given Central government the green signal to set up and operationalise the same. It was further held that non-judicial / technical members of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) should be persons above the rank of Additional Secretary in the service of Government of India. The decision was given by a Constitution Bench of Chief Justice HL Dattu and Justices AK Sirki, Arun Mishra, Rohinton Fali Nariman and Amitava Roy in a petition filed by Madras Bar Association (Petitioner) challenging the provisions of Chapter XXVII of the Companies Act, 2013. The Hon’ble court also said that the functioning of NCLT and NCLAT has not started so far and its high time that these Tribunals start functioning now, ans MCA shall take remedial measures as per the directions contained in the judgment at the earliest, so that the NCLT & NCLAT are adequately manned and start functioning in near future.

MCA:

The Rajya Sabha approved the Companies (Amendment) Bill, 2014 on 13th May, 2015. The proposed amendments cover provisions which include empowering Audit Committee to give omnibus approvals for related party transactions on annual basis under section 188; doing away with the declaration by companies before commencement of business; ordinary resolution for related party transactions in certain cases; enabling provisions to prescribe thresholds beyond which fraud shall be reported by the auditors to the Central Government; public inspection of Board resolutions; restrictions on bail to apply only for offence relating to fraud u/s 447; making common seal optional; omitting requirement for minimum paid-up share capital; strength of benches for hearing winding up cases; jurisdiction of special courts to try offences; setting off of past losses/depreciation before declaring dividend and exemptions for giving of loans/guarantee/security by holding companies to its subsidiaries, etc.

Corporate Updates – 21-01-2015

MCA:

MCA has given the much awaited relief to the foreign nationals, they are now relived from obtaining DSC and filing of Form DIR – 11. MCA has amended Rule 16 of the Companies (Appointment and Qualification of Directors) Rules, 2014, where in case a company which has already filed Form DIR-12 with the Registrar under rule 15, a foreign director of such company resigning from his office may authorise in writing a practising chartered accountant or cost accountant in practice or company secretary in practice or any other resident director of the company to sign Form DIR-11 and file the same on his behalf intimating the reasons for the resignation.

CBDT:

CBDT has amended the Income Tax Rules, 1962, which shall come into force from the day of their publication in the Official Gazette to insert a new Rule 12CA. Accordingly, the statement of income distributed by a business trust to its unit holder shall be furnished to the Principal Commissioner or the Commissioner of Income-tax within whose jurisdiction the principal office of the business trust is situated, by the 30th November of the financial year following the previous year during which such income is distributed. Further, the business trust shall furnished Form No. 64A & Form No. 64B to the Principal Commissioner or the Commissioner of Income Tax and to the unit holder in Form No. 64B, respectively, duly verified by the person distributing the income on behalf of the business trust. in the manner indicated therein.

JOBS & CAREERS

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Corporate Updates – 13-01-2015

MCA:

To get hold of the persons having multiple DIN’s, MCA has authorised, the following officers namely 1. Dr. Raj Singh, Joint Director, 2. Shri A.M,Singh, Joint Director, 3. Ms. P. Sheela, Joint Director, 4. Shri R.K.Tiwari, Joint Director & 5. Shri Ch. Jaganadh Reddy, Assistant Director in the office of Regional Director (Northern Region) at Noida for the purposes of filing complaint under Section 159 of the Companies Act, 2013 in respect of offences under Section 155 of the said Act. The provisions of Section 155 deals with prohibition to obtain or possess more than one DIN by any person and punishment for contravention are provided under Section 159 of the Act.

CBEC:

CBEC has notified the rules for Mandatory pre-deposit of duty or penalty for filing appeals effective 06-08-2014, further in order to maintain uniformity in the database being maintained, has suggested some additional columns in a separate register (e-register preferably) in the Review Cell of each Commissionerate. It has been further clarified that the amended provisions regarding filing of appeal along with stipulated percentage of pre-deposit shall apply to all appeals filed on or after 6th August, 2014 and mandatory pre-deposit would also be payable in cases of demand of drawback as the new section 129E would apply to such cases.

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Corporate Updates – 05-01-2015

MCA:

MCA has notified the much awaited amendments to the Companies (Cost Records & Audit) Rules, 2014 which come into effect from the date of notification. According to the amended Rules, Companies are required to maintain Cost Records if turnover exceeds Rs. 35 crores or more during immediately preceding Financial Year in respect of the products and services specified. Further Cost Audit is applicable if turnover exceeds Rs. 50 crores for regulated industry & Rs. 100 crores for others. Exemptions are provided to Companies whose revenue from exports, in foreign exchange, exceeds 75% of total revenue and Companies operating from Special Economic Zones.

DVAT:

DVAT Authorities has granted facility of VAT exemption/refund to Embassy of the Republic of Latvia in New Delhi, for its official use as well as for the personal use of the diplomats. This exemption is extended in accordance with the principle of reciprocity in public interest after making the necessary amendments in the DVAT Act which shall come into force with effect from 22nd September 2014.

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Corporate Updates – 13-10-2014

MCA:

MCA has disabled View Public Documents (VPD) service effective today i.e 13th October, 2014 to 18th October, 2014 (09:00 AM – 09:00 PM), in light of peak filing period and to avoid last minute rush and system congestion on the MCA21 portal on account of filings under the Company Law Settlement Scheme, 2014 ending on 15.10.2014 and Annual Filings during October 2014. Stakeholders are requested to plan accordingly.

RBI

RBI has decided to permit remittances to the Prime Minister’s National Relief Fund through the Exchange Houses subject to the condition that the remittances are directly credited to the Fund by the banks and the banks maintain full details of the remitters. Accordingly the Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses, listing the permissible transactions has been and made applicable.

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Corporate Updates – 08-10-2014

MCA:

MCA has given an opportunity to all those Companies which do not have any of their Directors / Signatory details registered in the MCA21 system and who are desirous of filing DIR-3C Form are requested to get atleast one authorised signatory registered by contacting the concerned Registrar of Companies. MCA has already issued instructions to all ROCs and RDs in this regard.

CBDT:

CBDT has notified the process for determination of arm’s length price in respect of wholesale trading. According to the clarification, where the variation between the arm’s length price determined under section 92C and the price of which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent of the latter in respect of wholesale trading and three percent of the latter. In all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for assessment year 2014-15.

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Corporate Updates – 06-10-2014

MCA

Versions of DIR-6, DPT-4, MGT-10, ADT-3, 17LLP, DIR-12 are modified w.e.f 2nd October, 2014. Only new version of the eForms will be acceptable. Stakeholders are requested to plan accordingly and ensure that you have downloaded the latest version for filing and uploading the latest version only. Form-wise date of last version change is available at on the website of MCA, to view & download, the list of all such Forms, ClickHere.

CBDT

CBDT has extended the due date of deposit of taxdeducted at source/tax collected at source during the month of September, 2014. Considering the consecutive holidays owing to the festive season and weekend during the first week in the month of October, 2014, the Central Board of Direct Taxes has issued an order to extend the last date of deposit of TDS during the month of September, 201 from 7th October, 2014 to 10th October, 2014 without entailing any consequential interest. However, the due date for filing of TDS/TCS statements for the 2nd Quarter of the F.Y. 2014-15 shall remain the same.

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Corporate Updates – 24-09-2014

Company Law Board:

For the purpose of exercising and discharging the Board’s powers and functions, the Board has made the amendments in the work distribution or the Chennai Bench. Hon’ble Shri B.S.V. Prakash Kumar, Member (Judicial) has been given additional charge of the State of Andhra Pradesh and Telegana w.e.f 08.09.2014. The matters relating to the State Of Andhra Pradesh and Telegana will be posted for hearing before him, in Court No.II of CLB, Chennai Bench on the following dates:

(a)October 2014 – 13.10.2014 to 17.10.2014

(b)November 2014 – 10.11.2014 to 14.11.2014

(c)December 2014 – 08.12.2014 to 12.12.2014

Shri B.S.V. Prakash Kumar, Member (Judicial), will not be available in Court No. II of CLB, New Delhi Bench on the above dates

MCA:

MCA has made an appeal to all Corporate(s) that to avoid last minute rush and system congestion on the MCA21 portal on account of filings under the Company Law Settlement Scheme, 2014 ending on 15.10.2014 and Annual Filings during October/November 2014, Companies are requested to file their Balance Sheet and Annual Return early without postponing it to the last days.

Corporate Updates – 23-09-2014

MCA:

MCA has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 to give effect to the much awaited provisions relating to the intimation of DIN of directors to the concerned Registrar of Companies by the company. New Rule 10A has been inserted by this notification and new Forms DIR-3B (earlier DIN – 2) and DIR – 3C (earlier DIN – 3) have been introduced to give effect the said provisions. Further in Rule 10(1) the facility of allotment of provisional DIN is now dispensed with and accordingly application number has been inserted in the rules.

RBI:

RBI has now dispensed the requirement of forwarding of government cheques in physical form to Government, accordingly Modification in the Memorandum of Instructions for reporting of government transactions are proposed to be effective from 01-10-2014. The government cheques would be paid in CTS clearing based on their electronic images. In case any drawee bank desires to verify the government cheque in physical form before passing it for payment, the image would be returned unpaid under the reason “present with documents”. The presenting banks are required to preserve the physical cheques in their custody securely for a period of 10 years as required under CTS. In case some specific cheques are required for the purpose of any investigation, enquiry, etc., under the law, they may be preserved beyond 10 years.

Corporate Updates – 22-09-2014

MCA:

MCA has introduced new e-forms under various provisions of the Companies Act, 2013 w.e.f 21-09-2013. Earlier these forms were available in manually filed option and required to be filed & signed manually and scanned copy of the same was required to be filed as an attachment to Form GNL – 1 & GNL – 2. The details of new Forms are as under :

1. Form DIR – 3C – Intimation of Director Identification Number by the company to the Registrar DIN services. This Form is a replacement of Form DIN – 3 under the old Act.

2. Form ADT – 3 – For Resignation of Statutory Auditors. Pursuant to section 140(2) of the Companies Act, 2013 and rule 8 of the Companies (Audit and Auditors) Rules, 2014.

3. Form DPT – 4 – Statement regarding deposits existing on the commencement of the Act. Pursuant to Section 74(1) read with rule 20 of the Companies (Acceptance of Deposits) Rules, 2014.

4. Form MGT – 10 – Changes in shareholding position of promoters and top ten shareholders. Pursuant to section 93 of The Companies Act, 2013 and pursuant to rule 13 of The Companies (Management and Administration) Rules, 2014.

MCA:

Versions of Form INC – 7, Form DIR – 3 & Form DIR – 6 are modified w.e.f 21st September, 2014. Only new version of the eForms will be acceptable. Stakeholders are requested to plan accordingly and ensure that you have downloaded the latest version for filing and uploading the latest version only. Form-wise date of last version change is available at on the website of MCA, to view & download, the list of all such Forms, Click Here.