Corporate Updates 21 April 2014

LLP: 

RBI makes amendment in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 and it has now been decided that Limited Liability Partnership (LLP) formed and registered under the Limited Liability Partnership Act, 2008 shall be eligible to accept Foreign Direct Investment (FDI) from a person resident outside India or an entity incorporated outside India, subject to the conditions given in Annexure – I. The instructions issued in this circular shall be effective retrospectively from May 20, 2011. However, reporting requirement of FDI in LLP shall come into force from the date of issue of instructions by the Reserve Bank in this regard. The LLP which have received foreign investment in terms of FIPB approval between May 20, 2011 to the date of this circular shall comply with the reporting requirement in respect of FDI within 30 or 60 days, as applicable, from the date of the notification. To download & view the notification, please Click Here.

SERVICE TAX: 

Service Tax Return (ST-3) for Oct ’13 to March’14 period is now available for e-filing by the assessees in both offline and online version. The last date for filing the returns for the said period is 25th April, 2014. All assessees can file return online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from ‘DOWNLOADS’ Section of ACES website. For details on how to e-file in ACES or any further information/assistance, you may visit www.aces.gov.in or contact your jurisdictional Service Tax Officer. Please file your returns in ACES well in advance to avoid rush and inconvenience at the last moment.

Corporate Updates 31 March 2014

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.

Corporate Updates 11 March 2014

SERVICE TAX: 

the Hon’ble Supreme Court of India, dismissed the SLP filed by the Union of India against the judgment of the Hon’ble Delhi High Court in the case of Union of India Vs. Delhi Chit Fund Association, meaning thereby that the decision of the Hon’ble Delhi High Court in the said matter holds good. The consideration received for providing services in relation to the chit fund business, being merely a transaction in money, falls outside the purview of the term ‘service’ as defined under Section 65B(44) of the Finance Act. Hence, it is not eligible to service tax.

BANKING LAW: 

The Mumbai Suburban District Forum in the case of Sh. Anant Nitare versus the Managing Director, ICICI Bank, held that when one- time settlement had been signed, stamped and sealed and acknowledged by the bank, thereafter, the bank was not entitled to make a demand for further payment of the amount which had been waived off. It restrained ICICI Bank from making any further demand. A bank cannot induce a customer to opt for a one- time settlement and then back out on the settlement.

Corporate Updates 03 Feb 2014

RBI: 

The Reserve Bank of India (RBI) on Friday asked banks to discontinue the practice of levying penalty on non maintenance of minimum balance in ordinary savings bank account, a move that may hit the fee-based income of banks and will benefit the public at large.

SERVICE TAX: 

CBEC has amended the definition of Governmental Authority as provided under clause (s) of Para 2 of the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 and expanded the definition of “Governmental Authority” and widens the exemption base for service tax as under:

Para 2(s) “Governmental authority” means an authority or a board or any other body;

(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution.

For Details, please visit http://www.servicetax.gov.in/notifications/notfns-2014/st02-2014.htm.