MCA:
MCA has made amendments to the Companies (Share Capital and Debentures) Rules, 2014 and notified the Companies (Share Capital and Debentures) Third Amendment Rules, 2015 which shall come into force from the date of their publication in the Official Gazette. MCA allowed Infrastructure Debt Fund Non-Banking Financial Companies, as defined in clause (b) of direction 3 of Infrastructure Debt Fund Non-Banking Financial Companies (Reserve Bank) Directions, 2011 and Companies permitted by a Ministry or Department of the Central Government or by Reserve Bank of India or by the National Housing Bank or by any other statutory authority to issue debentures for a period exceeding ten years.
CBEC:
Section 119 of the Finance Act, 2015 (Chapter VI) that contains a provision of new levy of cess called the SB Cess, empowers the Central Government to impose Cess on all or any of the taxable services at the rate of 2% of the value of such services, for the purpose of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto. Therefore, the Central Government has also issued another Notification i.e. Notification No. 22/2015-ST dated November 6, 2015 to exempt all taxable services from payment of SB Cess which is in excess of 0.5% of the value of taxable services. In other words, w.e.f. November 15, 2015 ‘SB Cess’ @ 0.5% will be levied on value of all taxable services i.e. the effective rate of Service tax including Swachh Bharat Cess will be 14.5% from November 15, 2015. The additional cess would be over and above the 14 per cent service tax rate which is already being levied and may yield the government an additional about Rs 400 crore during the remainder of the current fiscal year.
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