Corporate Updates – 27-05-2015


CBDT has released the Draft scheme of the proposed rules for computation of Arm’s Length Price (ALP) of an International Transaction or Specified Domestic Transaction undertaken on or after 01.04.2014. The Section 92C of the Income Tax Act, 1961 provides for computation of Arm‟s Length Price (ALP) of an international transaction or specified domestic transaction. The proposed mechanism and conditions under which the multiple year data and range concept would be used for determination of ALP shall be Adoption of the Range Concept / Use of Multiple Year Data / Continued use of Arithmetic Mean. The comments and suggestion of stakeholders and general public on the above draft scheme are invited and may be submitted by 31st May, 2015.


MCA has clarified vide notification dated 31-03-2015, the treatment to be made for application money received by companies before the commencement of the Companies Act, 2013 which remain pending as on date. Accordingly, all application money received before April 1, 2014 and disclosed under balance sheet closed on / before March 31, 2014 and for whom the allotment of securities remain pending shall have to either return such amounts to the persons from whom these were received or allot shares, stock, bonds or debentures or comply with the deposit rules by 01-06-2014.

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