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Corporate Updates 11 April 2014

April 11, 2014 Leave a Comment

RBI: 

RBI makes amendment in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000. A new definition of LLP has been added amendments have been made to Regulation 5 through which a person resident outside India or an entity incorporated outside not being FII or FVCI or QIB India shall be eligible to contribute foreign capital either by way of capital contribution or by way of acquisition/transfer of profit shares in the capital structure of an LLP under Foreign Direct Investment, subject to the terms and conditions as specified in Schedule 9. To download & view the notification, please Click Here.

SEBI: 

Securities and Exchange Board of India (SEBI) has been issuing various circulars/directions from time to time. In order to enable the users to have an access to all the applicable circulars/directions at one place, Master Circular no. CIR/MRD/DP/11 /2014 for Depositories has been prepared. This Master Circular is a compilation of the circulars/communications issued by SEBI up to March 31, 2014 and shall come into force from the date of its issue and shall supersede previous Master Circular CIR/MRD/DP/13/2013 dated April 15, 2013.

Filed Under: News & Updates, RBI, SEBI

Corporate Updates 09 April 2014

April 9, 2014 Leave a Comment

CBDT: 

In exercise of the powers conferred by Section 295 of the Income-Tax Act, 1961, the CBDT amended the Income-tax Rules, 1962, to notify the Forms SAHAJ (ITR-1), ITR-2, SUGAM (ITR-4S) and ITR-V for filing of Income Tax Returns (ITR) for the Assessment Year 2014-15. To view & download all such forms, please Click Here.

RBI: 

RBI has issued directions under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 to encourage longer term flows, foreign investment by all eligible investors including RFPIs shall henceforth be permitted only in Government dated securities having residual maturity of one year and above and existing investments in T-bills and Government dated securities of less than one year residual maturity shall be allowed to taper off on maturity/ sale. The present limit for investment in Government Securities by SEBI registered FIIs, QFIs, long term investors and FPIs registered in accordance with SEBI guidelines stands at USD 30 billion. Necessary operational guidelines in this regard will be issued by SEBI.

Filed Under: CBDT, Income Tax, News & Updates, RBI

Corporate Updates 08 April 2014

April 8, 2014 Leave a Comment

RBI: 

RBI has clarified that while arriving at the Net Owned Fund (NOF) figure, investment made by an NBFC in entities of the same group concerns shall be treated alike, whether the investment is made directly or through an AIF / VCF, and when the funds in the VCF have come from the NBFC to the extent of 50% or more; or where the beneficial owner, in the case of Trusts is the NBFC, if 50% of the funds in the Trusts are from the concerned NBFC. All NBFCs are also advised to keep this principle in mind, always, while calculating their NOF. For this purpose, “beneficial ownership” would mean holding the power to make or influence decisions in the Trust and being the recipient of benefits arising out of the activities of the Trust. Click Notification to view and download the same.

Income Tax: 

CBDT has issued a Clarification w.r.t Interpretation of Provisions of Section 10(2A) of the Income tax Act, 1961 that the income of a firm is to be taxed in the hands of the firm only and the same can under no circumstances be taxed in the hands of its partners. Accordingly, the entire profit credited to the partners accounts in the firm would be exempt from tax in the hands of such partners, even if the income chargeable to tax becomes NIL in the hands of the firm on account of any exemption or deduction as per the provisions of the Act.

Filed Under: Income Tax, News & Updates, RBI

Corporate Updates 07 April 2014

April 7, 2014 Leave a Comment

MCA: 

1. MCA vide Notification No. GSR 217(E) [F.No.5/29/2013-IEPF], Dated 27-3-2014 notifies Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with Companies) Amendment Rules, 2014, by making amendment in Rules 2, 3 and Form 5 INV and accordingly the definition of “Corresponding New Banks” has been inserted and all such banks have to ensure transfer of unclaimed dividend to earmarked a/c within 90 days of holding their annual general meeting which remains unpaid or unclaimed for a period of seven years from the date of such transfer. They shall come into force with effect from the 31st march, 2014

2. MCA has released the Table pursuant to Rule 12 of the Companies (Registration of Offices and Fees) Rules, 2014. Table of fees for the documents required to be submitted, filed, registered or recorded or for any fact or information required or authorized to be registered under the Act, shall be submitted filed, registered or recorded within the time specified in the relevant provision on payment of fee as per the Schedule given in the Table.

Filed Under: MCA, News & Updates

Corporate Updates 05 April 2014

April 5, 2014 Leave a Comment

Company Law: 

The Ministry of Corporate Affairs vide its circular dated 04.04.2014 notified that the financial statements, auditors report and Board report in respect of financial years that commenced earlier than 1st April, 2014 shall be governed by the relevant provisions/ Schedules/ rules of the Companies Act, 1956 and that in respect of financial years commencing on or after 1 April, 2014, the provisions of the new Act shall apply.

Reserve Bank of India: 

RBI in order to complete the Compounding Applications pending in their good office has decided to delegate further powers to the Regional Offices. Accordingly, the powers to compound the contraventions will now be vested with the Regional Offices without any limit on the amount of contravention with certain restrictions. Accordingly, applications for compounding related to the contraventions (as specified in the circular) may be submitted by the concerned entities to the respective Regional Offices under whose jurisdiction they fall. For all other contraventions, applications may continue to be submitted to CEFA, Foreign Exchange Department, 5th floor, Amar Building, Sir P.M.Road, Fort, Mumbai 400001. For detailed notification, please click here.

Filed Under: Company Law, News & Updates, RBI

Corporate Updates 04 April 2014

April 4, 2014 Leave a Comment

Company Law: 

The Principal Bench of Company Law Board, Delhi in one of the Judgment held that Where ex-director has resigned prior to appointment of provisional liquidator, he/she is not liable to compensate company-under-liquidation for non-recovery debts due to company by reason of non-furnishing of sufficient particulars/records by directors.

Income Tax: 

The income Tax has clarified that the income of a firm is to be taxed in the hands of the firm only and the same can under no circumstances be taxed in the hands of its partners. Accordingly, the entire profit credited to the partners’ accounts in the firm would be exempt from tax in the hands of such partners, even if the income chargeable to tax becomes NIL in the hands of the firm on account of any exemption or deduction as per the provisions of the Act.

Filed Under: Company Law, Income Tax, News & Updates

Corporate Updates 03 April 2014

April 3, 2014 Leave a Comment

INCOME TAX: 
The Proposed Direct Tax Code 2013 allows Tax Audit not only by Chartered Accountant but also by Company Secretaries and Cost Accountants. Clause 88 of the Proposed Direct Tax code prescribes who needs to get the book audited under the direct tax code 2013 and it further says that the same needs to be audited by an accountant. The Term accountant is been defined in Clause 320(2) which says that accountant means Chartered Accountants, Company Secretaries, Cost Accountants any person having such qualifications as the Board may prescribe, for the purposes specified in this behalf.

Download: Proposed Direct Tax Code

SEBI: 
The Securities Appealate Tribunal, Mumbai in his recent judgement held where appellant failed to make disclosure of sale of pledged shares within two days of change in shareholding, appellant had violated PIT Regulations and guilty of Insider trading norms.

Filed Under: Income Tax, News & Updates, SEBI

Corporate Updates 02 April 2014

April 2, 2014 Leave a Comment

MCA:
MCA has notified rules for various other Chapters of the Companies Act, 2013. All rules are applicable from 01-04-2014.

Chapter XXII- The Companies (Registration of Foreign Companies) Rules, 2014.
Chapter XIV: Companies (Inspection, Investigation and Inquiry) Rules, 2014
Chapter XIII- The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Chapter XXIV – The Companies (Registration Offices and Fees) Rules, 2014.
Chapter XXI -The Companies (Authorised to Registered) Rules, 2014.

RBI: 
RBI through its Press Release orders non-levy of fines for low balances in saving account and asks banks to cut down services for such accounts. Banks should not levy penal charges for non-maintenance of minimum balance in ordinary savings bank account and inoperative accounts, but instead curtail the services accorded those accounts until the balance is restored.

Filed Under: MCA, News & Updates, RBI

Corporate Updates 01 April 2014

April 1, 2014 Leave a Comment

MCA:

1. MCA has notified rules for Chapter V & Chapter X of the Companies Act, 2013. All rules will be applicable from the date of their publication in the Official Gazette.

Chapter V: Companies (Acceptance of Deposits) Rules, 2014
Chapter X: Companies (Audit and Auditors) Rules, 2014

2. MCA has introduced 11 new Company Forms (Sample) based on Companies Act, 2013. Demo of all these 11 forms are available at the MCA Portal to enable all stakeholders to familiarize themselves with the filling of the new forms. The filled forms can’t be saved or uploaded at the website till 14-04-2014. The pre-fill functionality would also not work.

3. MCA has issued Table containing provisions of Companies Act, 2013 as notified up to date and corresponding provisions thereof under Companies Act, 1956 and the same is available at the MCA Portal. This ready reckoner / comparative chart of New & Old Section is for the information of all stakeholders. All Stakeholders are requested to refer to the relevant notifications and circulars issued separately.

Filed Under: News & Updates

Corporate Updates 31 March 2014

March 31, 2014 Leave a Comment

MCA: 

1. MCA after notifying rules for 10 chapters of the Companies Act, 2013 on 27-03-2013, has notified some more Rules under the Companies Act, 2013. All rules will be applicable from the date of their publication in the Official Gazette.

Chapter XXVI: Nidhi Rules, 2014
Chapter XXIX: Companies (Adjudication of Penalties) Rules, 2014
Chapter XXIX: Companies (Miscellaneous) Rules, 2014
Amendment to Schedule II of the Companies Act, 2013

2. Another good move by MCA, as it has reviewed the whole process of payment of court fee & stamp duty for issuance of certified true copies at various ROC’s across India. With a view to improve the existing component for payment of stamp duty & court fees and to avoid delay in issuance of Certified True Copies, MCA vide its Circular has enabled the process of payment of stamp duty & court fee online. The Certified True Copies will be sent to the applicant by the concerned Registrar of Companies within 15 days by post.

3. In order to facilitate the completion of notified sections, MCA has planned a staggered roll out of various forms. MCA vide its Circular has decided to waive fees for all event based filing whose due date falls between 01/04/2014 to 30/04/2014 and from 01/04/2014 to 13/04/2014 the period will be used for clearing pending e-forms already filed under the provisions of Companies Act, 1956 and except existing e-forms mentioned in Table “A” no other e-forms will be available for filing in this period. Other services will, however, continue to be available. All stake-holders are advised to take into account this temporary suspension and to carry out filings including for incorporation of companies where urgently required upto 31st March, 2014.

SERVICE TAX: 

Today 31-03-2014 is the last date for payment of Service Tax liability for the month / quarter ending on 31-03-2014. The tax is required to be paid online by all the Registered Service Providers who have deposited more than Rs. 1,00,000/- Service Tax in the last financial year 2012-2013.

Filed Under: MCA, News & Updates, Service Tax