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Corporate Updates 29 March 2014

March 29, 2014 3 Comments

RBI: 

External Commercial Borrowings (ECB) can be raised by airline companies for working capital as a permissible end-use, under the approval route, RBI has now decided that the scheme of raising ECB for working capital for Civil Aviation Sector will continue till March 31, 2015 (expired on 31-12-2013). All other conditions stipulated in aforesaid Circular dated April 24, 2012 shall remain unchanged. To view and download the notification, please Click Here.

STAMP DUTY: 

The Revenue Department, Government of GCT of Delhi has issued an Attention Note (Copy Attached) for all companies and corporate having their Registered Office in the NCT of Delhi and are either in the process of issuance of shares / debentures certificates or having already issued share certificates in physical or electronic mode, but have not paid duty on instrument are required to pay stamp duty under the provisions of the Indian Stamp Act, 1899. The procedure & applicable rate for payment of stamp duty for various instruments are available at http://revenue.delhi.gov.in.

Download: http://www.rmgcs.com/wp-content/uploads/2015/04/Revenue-Department.pdf

Filed Under: News & Updates, RBI, Stamp Duty

Corporate Updates 28 March 2014

March 28, 2014 Leave a Comment

MCA: 

1. MCA after notifying substantial portion of the Companies Act, 2013 on 26-03-2013, has notified following Rules in respect of 10 Chapters under the Companies Act, 2013. All rules will be applicable from the date of their publication in the Official Gazette.

Chapter I: Companies (Specification of definition details) Rules, 2014
Chapter II: Companies (Incorporation) Rules, 2014
Chapter III: Companies (Prospectus and allotment of securities) Rules, 2014
Chapter IV: Companies (Share Capital and Debentures) Rules, 2014
Chapter VI: Companies (Registration of Charges) Rules, 2014
Chapter VII: Companies (Management and Administration) Rules, 2014
Chapter VIII: Companies (Declaration and Payment of Dividend) Rules, 2014
Chapter IX: Companies (Accounts) Rules, 2014
Chapter XI: Companies (Appointment and Qualification of Directors) Rules, 2014
Chapter XII: Companies (Meetings of Board and its Powers) Rules, 2014

2. MCA has issued Companies 2nd (Removal of Difficulties) Order, 2014 which shall come into force on the date of its publication in the Official Gazette. By this order, the word “AND” used in Section 92(2) of the Companies Act, 2013 between paid-up capital and turnover for certification of Annual Return by the PCS has been replaced by word “OR”. Now Annual Return certification is applicable on all Listed Companies & Companies having paid-up capital of Rs. 10 Crore OR turnover of Rs. 50 Crore.

3. MCA has changed the Nomenclature of various forms prescribed under the provisions of Companies Act, 2013 to define the nature of the forms and would also be easy to recognise. In order to facilitate easy understanding of the e-forms being rolled out under the provisions of Companies Act, 2013 and Rules made thereunder, the stakeholders are hereby informed that unlike numbering of various forms under the Companies Act, 1956, forms under the new Act are mandatorily numbered alpha-numeric. Initial of forms is to be started with alphabet of two or three letters based on the subject of the Chapter, followed by serial number of the form.

Filed Under: MCA, News & Updates

Corporate Updates 27 March 2014

March 27, 2014 Leave a Comment

MCA: 

The Ministry of Corporate Affairs has notified 183 new sections of the Companies Act 2013 and some sub-sections of 13 sections which were already notified by notification dated 12th September 2013 and remaining schedule, by way of Notification dated 26th March, 2014. These sections have been notified to come into effect from 1st April 2014. With the notification of these sections, now a total of 283 sections of the new Act stand notified. As the Sections have been notified, it is expected that all relevant rules with forms will also be notified shortly.

Further, the Sections remaining to be notified are related to NFRA, IEPF, Compromise and arrangement, oppression and mismanagement, winding up, sick companies, special courts, NCLT etc.

SEBI: 

SEBI vide its Circular number CIR/CFD/DIL/1/2014 dated March 25, 2014 has prescribed a standard format for Auditors’ Certificate, under Clause 24 of the Listing Agreement which shall be followed by all the companies filing draft/ final scheme/ petition with the Stock Exchange(s) on or after March 25, 2014 for approval of any draft Scheme of amalgamation / merger / reconstruction, etc., as it was observed by SEBI that the Auditors’ Certificate filed by the companies are in different format and there was no standardization.

Filed Under: MCA, News & Updates, SEBI

Corporate Updates 26 March 2014

March 26, 2014 Leave a Comment

MCA: 

1. MCA on the basis of representations received regarding various difficulties arising out of implementation of section 180 of the Companies Act, 2013 with reference to borrowings and/or creation of security, based on the basis of ordinary resolution has issued clarification with regard to section 180 of the Companies Act, 2013 vide its Circular no 04/2014 dated 25th March 2014, that the resolution passed under Section 293 (Restrictions on powers of Board) of the Companies Act, 1956 prior to 12.09.2013 with reference to borrowings (subject to the limits prescribed) and / or creation of security on assets of the company will be regarded as sufficient compliance of the requirements of section 180 (Restrictions on powers of Board) of the Companies Act, 2013 for a period of one year from the date of notification of section 180 of the Act.

2. As per the Important Notice issued by the MCA, all offline payment facility by way of Challan, NEFT and Pay Later would be stopped from Today i.e 26th March, 2014 till 31st March, 2014 (both days inclusive) and payment can only be made through online mode (Credit/Debit Card and Net Banking). All stakeholders are requested to plan their activity accordingly.

Filed Under: MCA, News & Updates

Corporate Updates 25 March 2014

March 25, 2014 Leave a Comment

MCA: 

MCA gives discretionary powers to Central Government to extend service terms of CLB Bench. If it considers it necessary in public interest so to do, Central Government may give extension in service to the Chairman, Vice Chairman and Members upto a maximum period of one year or till constitution of the National Company Law Tribunal, whichever is earlier”

Important MCA Update: 

MCA has issued a Important Notice on the website of the Ministry of Corporate Affairs, advising and informing all the stakeholders that all forms under RSUB/PUCL would be marked back to respective officials of the ROC/RD/Central Government as the case may be starting today’s midnight i.e 25th Mar 14. The forms would be processed by the respective officials at the back office. However, “Form FTE”, “Form EES2010”, “Form EES2011”, “Refund Form”, Investor Complaint Form” and all LLP forms” would continue to be allowed for filing under RSUB/PUCL.

Further, all offline payment facility (Challan, NEFT and Pay Later) would be stopped from 26th March, 2014 till 31st March, 2014 (both days inclusive). You are requested to make payment only through online mode (Credit/Debit Card and Net Banking). All stakeholders are requested to plan their activity accordingly.

The notice can be viewed at the home page of MCA21 or you can Click Here to view the same.

Hope the information will assist you in your Professional endeavors. In case of any query / information, please do not hesitate to write back to us.

RBI:

The Reserve Bank of India in the wake of promoting and protecting the interest of Depositors has constituted “The Depositor Education and Awareness Fund (the Fund)” wherein the amount to the credit of any account in India with any bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the Fund, within a period of three months from the expiry of the said period of ten years. The depositor would, however, be entitled to claim from the bank his/her deposit or any other unclaimed amount or operate her account after the expiry of ten years, even after such amount has been transferred to the Fund. The bank would be liable to pay the amount to the depositor/claimant and claim refund of such amount from the Fund. For detailed notification, please Click Here.

Filed Under: MCA, News & Updates, RBI

Corporate Updates 24 March 2014

March 24, 2014 Leave a Comment

RBI: 

The Reserve Bank on January 30, 2014 has issued Framework for Revitalising Distressed Assets in the Economy which would be fully effective from April 1, 2014, has outlined a corrective action plan that will incentivize early identification of problem account, timely restructuring of accounts which are considered to be viable, and taking prompt steps by lenders for recovery or sale of unviable accounts. In the background of the above, to the extent it is now made applicable to NBFCs also and separate guidelines are issued to NBFCs for dealing with the NPA’s.

CBDT:

In order to achieve the Budgetary Targets set in the Finance Act, CBDT through its Office Memorandum has directed all its officers across the country to show commitment towards work for remaining days of the Financial Year. Accordingly all Assessing Officers / Addl. CIT / CIT / CCIT involved in assessment work and collection of taxes have instructed that they shall not leave Headquarter upto 31.03.2014 and all Income Tax Offices will be kept open on 29th, 30th and 31st March, 2014.

Filed Under: CBDT, News & Updates, RBI

Corporate Updates 22 March 2014

March 22, 2014 Leave a Comment

MCA:

The Ministry of Corporate Affairs has received Election Commission’s approval for notifying rules related to various sections of the new Companies Act, paving the way for its implementation from April 1, 2014. EC today conveyed that it has no objections to the ministry coming out with notifications related to the new Companies Act. With the Election Commission of India announcing the schedule for the Lok Sabha polls, the Model Code of Conduct came into force from March 5, consequently, the ministry sought the Commission’s nod for notifying the rules. Sources said that while rules for most parts of the legislation would be notified before April 1, those for National Company Law Tribunal (NCLT) and new institutions such as National Financial Reporting Authority (NFRA) and Investor Education and Protection Fund (IEPF) would be notified later.

CBEC:

CBEC under the provisions of the Section 67A of the Finance Act, 1994 read with explanation to Section 14 of the Customs Act, 1962, has notified the rate of exchange for calculation of gross value of taxable service tax would be the rate, for the conversion of foreign currency into Indian currency or vice versa, applicable on the date on which taxable service has been provided or agreed to be provided. The Notification has come containing the Rates of Exchange are applicable from March 21, 2014.

Filed Under: CBEC, MCA, News & Updates

Corporate Updates 21 March 2014

March 21, 2014 Leave a Comment

RESERVE BANK OF INDIA: 
Reserve Bank of India in the wake of recommendations of the Key Advisory Group (KAG) constituted by the Government of India on the Securitisation Companies/ Reconstruction Companies (SC/ RCs), it has been decided to allow SC/ RCs to utilize a funds raised from the Qualified Institutional Buyers to acquire financial assets subject to the prescribed conditions. For detailed notification, please Click Here.

COMPETITION LAW:

The Competition Commission of India approved the transfer of gas plant of Essar Steel on slump sale basis to Inox Air as it does not have appreciable adverse effect on competition in India.

Filed Under: Competition Law, News & Updates, RBI

Corporate Updates 20 March 2014

March 20, 2014 Leave a Comment

MCA:

The Ministry of Corporate Affairs has issued a public notice in the interest of the stakeholders stating that the MCA is going to introduce the new forms pertaining to the New Act probably from 01.04.2014. The Ministry shall close down the Front Office portal after 25.03.2014. The Ministry has directed that all the work items should be cleared on or before 25.03.2014 because these work items will not be processed in the new system. All stakeholders are accordingly advised to clear all pending forms on urgent basis.

Clarification by MCA:

“The Ministry of Corporate Affairs has issued a public notice in the interest of the stakeholders stating that the MCA is going to introduce the new forms pertaining to the New Act probably from 01.04.2014. The Ministry shall close down the Front Office portal for PUCL / RESUB on 25.03.2014 after which no form under PUCL / RESUB mode shall be filed / resubmitted on the portal. The Ministry has directed that all the work items should be cleared on or before 25.03.2014 because these work items will not be processed in the new system.” Click here for the copy of MCA notice !

DGFT:

DGFT introduces online Export Obligation Discharge Certificate (EODC) / Redemption for Advance Authorisations & Duty Free Import Authorisations (DFIA) w.e.f. June 1, 2014 vide DGFT Public Notices, 55 (RE-2013/2009-2014).

Filed Under: DGFT, MCA, News & Updates

Corporate Updates 19 March 2014

March 19, 2014 Leave a Comment

Income Tax:

The High Court rules that where assessee gave gifts and articles to various persons which had company’s official rubber stamp imprinted on them, there was an element of advertisement in distribution of said gifts and, thus, assessee’s claim for deduction of expenses incurred on distributing gifts was to be allowed.

Income Tax:

The Supreme Court uphelds right of deductor to claim interest on excess TDS deposited. The assessee is entitled to payment of interest for money remaining with the Government which would be refunded.

Filed Under: Income Tax, News & Updates