Corporate Updates – 27-04-2016


RBI has issued a Master Direction for merger of private sector banks and also between NBFCs and banks. The scope of master direction on merger covers an amalgamation of two banking companies and amalgamation of an NBFC with a banking company. In both the cases, the voluntary amalgamation will become effective after RBI’s approval. As per the direction, the decision of amalgamation should be approved by respective boards by two-thirds majority and not just by members present and voting. Also the draft scheme of amalgamation should have approval of shareholders of each banking company by a resolution passed by a majority representing two-thirds of the shareholders. In case of NBFC merging with a private sector bank, the master direction clarifies that all accounts should be KYC compliant as they would eventually become accounts of the banks after amalgamation.

CBEC – Service Tax:

CBEC in exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, has extended the last date of submission of the Form ST-3 Return for the period from 1st October 2015 to 31st March 2016, from 25th April 2016 to 29th April 2016. The circumstances are of a special nature, which have given rise to this extension of time and due to the difficulties being faced by assessees in accessing the ACES application on 25th April 2016".

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