Corporate Updates – 29 Jan 2014


· The CBEC has issued Circular No. 176/2/2014-ST dated January 20, 2013 clarifying that Cenvat credit shall only be available after payment of entire service tax dues and obtaining discharge certificate in form VCES 3 and the said Form is required to be issued within stipulated period of seven working days from the date of furnishing the details of payment of tax dues.

· The Central Government has vide Notification No. 05/2014 – Customs (N.T.) dated January 21, 2014 amended the provisions to provide new drawback rates for several Products exported out of India. The Notification shall come into force on January 25, 2014. In this context, please find link below of the Notification:


· The Reserve Bank of India advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. From July 01, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

Corporate Updates – 28 Jan 2014


· MCA Vide CIRCULAR NO. 1 2014/2014 has directed that Regional Director should invite specific comments from Income Tax (IT) Department within 15 days before filing response to the Court relating to arrangement (u/s 391) or amalgamation (u/s 394) and in the absence of any response from IT Department, it may be presumed that Revenue has no objection to the action proposed u/s 391 or 394. Circular can be downloaded from this link :


· The procedure for PAN allotment process will undergo a change with effect from 03-02-2014. Every PAN applicant has to submit self-attested copies of proof of identity, proof of address and date of birth documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN facilitation centers.

Corporate Updates – 27 Jan 2014


· NRI’s close relative can be joint account holder in Existing / New resident bank accounts subject to conditions. [AP (DIR Series) Circular 87 of 09-01-2014].

· RBI has clarified that a foreign investor is free to remit funds through any bank of its choice for any transaction permitted under FEMA, 1999 or the Regulations / Directions framed there under. The funds thus remitted can be transferred to the designated AD Category -I custodian bank through the banking channel.


· CBDT has clarified vide Circular No. 1/2014 dated 13-1-2014 -that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/ payable without including such service tax component.

· Last date 31-01-2014 for availing DVAT Amnesty Scheme. Filing Q3 returns with Block R 10 in CST Form 1. Filing Form AR-I for FY 2012-13 for specified dealers fulfilling the criteria as prescribed by the Delhi VAT Authorities.

Rajya Sabha passes New Companies Bill, 2012

The much-awaited Companies Bill aimed at protecting the interest of employees and small investors and introduced in the Rajya Sabha on Wednesday, amid much din was passed on Thursday, reports CNBC-TV18. The Lok Sabha had passed the Companies Bill in 2012.

Corporate affairs minister Sachin Pilot said the legislation was progressive, forward-looking, encourages more disclosures and better governance. “After 100 years, this is the second time that a new companies law has been legislated,” he said.

Around 193 recommendations have been included in the Companies Bill by the Parliamentary Standing Committee and with passing of this Bill, the Companies Act of 1956 will be replaced. The new Companies Bill also paves the way for early winding up of entities and a quick of merger process. The Bill will create a regulatory environment to promote growth and is a new push for growth and prosperity, Pilot said.

“We have to align global best practices into our laws and the focus of new Companies Bill is to enhance corporate governance. We must be very severe on noncompliance. The Bill is compliant with innovations in technology and markets.”

The Bill also intends to nurture entrepreneurs, artisans, craftsman and ensures that no effort is spared to consult every single stakeholder. “The Companies Bill will usher in a new era for our economy.”

Sachin Pilot added that he will seek comments on forming rules and address imbalance towards women in the corporate sector. “For the first time CSR is part of the statute.”

The 2-percent CSR mandate is not a tax or a cess and corporate India is more than willing to spend money on CSR initiaitives, he highlighted.

The Bill allows companies the freedom to choose areas of work for CSR and the mandate of a rotation in auditors every 5 years gives the process added credibility.

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