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 – 31-12-2014

RBI:

RBI with an intention to grant more flexibility to the Indian party, directs banks to allow credit facilities to Indian party on pledging of shares of its step down subsidiary. It has been decided to further liberalize certain regulations of the Notification relating to Overseas Direct Investments by Indian Party. IN this regard regulation relating to Creation of charge on shares of JV / WOS / step down subsidiary (SDS) in favour of domestic / overseas lender, Creation of charge on the domestic assets in favour of overseas lenders to the JV / WOS / step down subsidiary & Creation of charge on overseas assets in favour of domestic lender have been liberalized.

UP VAT:

UPVAT Authorities have extended Last Date of UP VAT Annual Return (Form 52, 52A & 52B) for the year 2013-2014 upto 31-12-2014 from 30-11-2014. Now the authorities have again considered the requests of the stakeholders and have extended the last date of furnishing for Annual Return to 29-01-2015 from 31-12-2014.

Corporate Updates – 09-10-2014

SEBI:

SEBI has amended the regulations named the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, which shall come into force on the date of their publication in the official Gazette. According to amended regulations, SEBI dispenses with requirement of separate registration for stock brokers for operating in multiple exchanges as no separate registration shall be required for a stock broker registered with the Board to operate in more than one stock exchange, of which he is admitted as a member, subject to grant of approval by the concerned stock exchange and compliance of other rules & regulations as prescribed under these rules.

Rajasthan VAT:

Rajasthan Government has notified the Rajasthan Value Added Tax (Second Amendment) Rules, 2014, which shall come into force on the date of their publication in the official Gazette. Amendment have been made in Rules 17A, 19, 37, 79A, Form VAT-10 and Form VAT-69 and revises VAT return form and now seeks details of goods sold by agent in new form.

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Corporate Updates – 07-10-2014

DVAT

DVAT Authorities have extended the last date of filing of online return in Form 9 for the year 2013-14, prescribed under Rule 4 of Central Sales Tax (Delhi) Rules, 2005 to 28th November, 2014. The return is to be filed by dealers who have made interstate sale at concessional rates against statutory forms ‘C’ or stock transferred against ‘F’ forms or sold the goods against ‘H’ forms to dealers (other than Delhi) or claimed deduction from taxable turnover against E-I/EII forms or I/J forms etc. The dealers who have not made the sale as mentioned above need not file reconciliation return in Form 9.

SEBI

SEBI with an intention to have an effective regulation of the Mutual Fund Industry, Securities and Exchange Board of India (SEBI) has come out with the Master Circular for Mutual Funds. Master Circular is a compilation of all the existing/applicable circulars issued by Investment Management Department of SEBI to Mutual Funds. In case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail.

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Corporate Updates – 25-09-2014

SEBI:

SEBI has amended and notified the Settlement of Administrative & Civil Proceedings (Amendment) Regulations, 2014 and shall come into force on the date of their publication in the Official Gazette. SEBI enhances fee for settlement of administrative and civil proceedings by two-folds, accordingly every applicant shall pay fees of Ten thousand rupees by a demand draft in favour of ‘Securities and Exchange Board of India" payable at Mumbai instead of earlier fee of Rs. 5,000/-.

DVAT:

DVAT Authorities have clarified that the waiving off of penalty under the Amnesty Scheme. If dealers have opted the Amnesty Scheme, then penalty should be waived off on payment of tax, interest stated in notice of assessment issued in Form DVAT-24. However, if preparation of records/accounts does not result into any tax deficiency and only penalty has been imposed for preparation of books of accounts in a false, misleading and deceptive manner, then penalty cannot be waived off under Amnesty Scheme. In such cases dealer is not eligible to seek relief under the scheme.

Corporate Updates – 25-08-2014

DVAT:

The Delhi Vat Authorities have directed the owner / lessee / custodian of the venue where programs / functions are to be organised In the Banquet Halls, Farm Houses, Marriage/Party Halls, Hotels, Open Ground etc, where food and/or liquor items are to be supplied/provided and cost of booking exceeds Rs. One Lakh per function to get themselves enrolled by filing form BE-1 and thereafter to submit return in Form BE-2 at least 3 days before first day of a month and for second fortnight by 12th of the month. All concerned are hereby directed to file the requisite information in Form BE-1 and BE-2 in a timely manner to avoid imposition of penalty under section 86 of the DVAT Act, 2004.

RBI:

RBI has issued directives for making it mandatory for banks to put in place additional authentication / validation based on information not visible on the cards for all on-line card not present (CNP) transactions. It was clarified that the mandate shall apply to all transactions using cards issued in India for payments on merchant sites where no outflow of foreign exchange is contemplated. It was further stated that the linkage to an overseas website/payment gateway cannot be the basis for permitting relaxations from implementing the mandate. It is further advised that where cards issued by banks in India are used for making card not present payments towards purchase of goods and services provided within the country, the acquisition of such transactions has to be through a bank in India and the transaction should necessarily settle only in Indian Currency, in adherence to extant instructions on security of card payments. For further details, please Click Here.

Corporate Updates 01-08-2014

MCA: 

MCA has issued the Clarification with regard to applicability of provisions of section 139(5) and 139(7) of the Companies Act, 2013 to clear the doubts on the applicability of these Section where appointment of auditors by Comptroller and Auditor General of India (C&AG), to ‘deemed Government Companies’ referred to in section 619B of the Companies Act 1956. It is clarified that the New Act does not alter the position with regard to audit of such deemed Government companies through C&AG and thus such companies are covered under sub-section(5) and (7) of section 139 of the New Act. In case of newly incorporated company, it will primarily be the responsibility of the company concerned to intimate to the C&AG about its incorporation along with name, location of registered office, capital structure of such a company immediately on its incorporation.

DELHI VAT: 

Filing of online return for1st quarter of 2014-15 is extended by Commissioner, Value Added Tax. Now the last date of filing of online/hard copy of first quarter return for the year 2014-15, in Form DVAT-16, DVAT-17 and DVAT-48 along with required annexure/enclosures is extended upto 08/08/2014. However, the tax due shall continue to be paid in the usual manner as per the provisions of section 3(4) of the Delhi Value Added Tax Act, 2004. The dealers filing the returns through digital signature need not be required to file hard copy of the return/Form DVAT-56.

Corporate Updates 30 June 2014

UP VAT: 

The Practising Company Secretaries got a new recognition, after the inclusion of the Company Secretaries in the Delhi VAT in the year 2012, now UP VAT authorities has amended the definition of the term “Accountant” given under Rule 2 (1) (e) of the Uttar Pradesh Value Added Tax Rules, 2008. Through this amendment the term “Accountant” now includes Company Secretary as defined in the Company Secretaries Act, 1980. All Company Secretaries are now eligible to practice and appear before the VAT Authorities in the State of U.P.

MCA: 

MCA has issued Clarification on applicability of requirement for Resident Director under the provisions of the Section 149(3) of the Companies Act, 2013, which requires every company to have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year. It is clarified that the, residency requirement would be reckoned from the date of commencement of section 149 i.e 01-04-2014 and first previous calendar year, will be the remaining period of calendar year 2014. Therefore, on a proportionate basis, the number of days for which the director would need to be resident in India during calendar year 2014, shall exceed 136 days. Further for newly incorporated companies it is clarified that companies incorporated between 1.4.2014 to 30.9.2014 should have a resident director either at the incorporation stage itself or within six months of their incorporation. Companies incorporated after 30.9.2014 need to have the resident director from the date of incorporation itself.

Corporate Updates 10 June 2014

MCA: 

MCA has issued clarifications on Rules prescribed under the Companies Act, 2013 with respect to matters relating to appointment and qualifications of directors and Independent directors. MCA has clarified the Pecuniary interest in certain transactions as defined under Section 149(6)(c), appointment of Independent Directors for less than five years and appointment Independent Directors through appointment letters. To view & download the circular, please Click Here.

DVAT: 

DVAT authorities with an intention to update the data of all registered dealers has released the list of all registered dealers with Administrative jurisdiction of TIN / TAN dealers along with their Zone, Ward, Block, Name, TIN, Registered Address & Registration Type. All Dealers & Stakeholders are requested to contact the Zonal in-charges immediately if they notice any error/ discrepancy.

Corporate Updates 16 May 2014

DVAT: 

DVAT authorities has issued instructions to all Dealers who are selling goods to Embassies / High Commission / International Organisations that the department is going to issue refund online to Embassies / High Commission/International Organisations by matching DVAT-23 with 2B of selling dealers. Therefore, while issuing retail / tax invoices to such organisation, selling dealers are required to mention TIN No(s) on retail/tax invoices issued to them and failing which there will be mismatch and selling dealers shall be liable to pay tax, interest and penalty for mismatch.

RBI: 

While proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts it was advised to banks that no charge should be levied for non-operation/activation of Basic Savings Bank Deposit Accounts. It is further advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account. To view and download and notification, please Click Here.