Corporate Updates – 05-01-2015


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 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.


Corporate Updates – 07-10-2014


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 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.


Corporate Updates – 25-09-2014


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 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


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 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 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.


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 10 June 2014


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 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 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.


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.

Corporate Updates 01 May 2014

Punjab VAT: 

The Punjab VAT authorities has amended the Punjab VAT Act, 2005 for availing input tax credit under is the first proviso to section 13(1) of the said Act. The above proviso already existed since the original enactment of Punjab VAT Act, 2005, however earlier the condition contained in the said proviso was that input tax credit was available if the goods are “for sale” or are “for use” in manufacturing or processing of goods meant for sale. Now w.e.f. 01.04.2014 the condition is the input tax credit will be available when such goods are “sold” or are “used” in the manufacturing processing of goods meant for sale. If such goods remain in stock you will not get the input tax credit of the tax paid on such stock of goods even though you are having VAT invoice


DVAT Authorities have extended the last date of Filing of online return for 4th quarter of 2013-14, in Form DVAT-16 ,DVAT-17 and DVAT-48 along with required annexures, and submission of hard copy to 09/05/2014. The tax due shall however 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 file hard copy of the return/Form DVAT-56. To view & download the circular, please Click Here.