Corporate Updates – 28-07-2017

MCA:

The Companies (Amendment) Bill, 2016 has been passed by the Lok Sabha as Companies (Amendment) Bill, 2017 (Copy Attached) & would be referred to Rajya Sabha for consideration and passing. The Bill to further amend the Companies Act, 2013 was introduced in Lok Sabha on 16th March, 2016 whereafter it was referred to the Parliamentary Standing Committee on Finance for examination and report. The Parliamentary Standing Committee on Finance had presented its report on the Companies (Amendment) Bill, 2016 to Lok Sabha and Rajya Sabha on 7th December, 2016. The 43 amendments moved to the Companies (amendment) Bill 2016 on Thursday included one that sought to drop the earlier proposal removing layering restrictions on investment companies. Further, the changes to the Companies Act would go a long way in improving the ease of doing business in India and help the country move higher in the “ease of doing business rankings”.

CBDT

CBDT has provided clarifications on computation of book profit for the purposes of levy of Minimum Alternate Tax (MAT) under section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (IndAS) compliant companies. The Finance Act, 2017 has amended the provisions of section 115JB of the Income tax Act,1961 so as to provide the framework for computation of book profit for the purposes of levying Minimum Alternate Tax (MAT) in case of Indian Accounting Standards (Ind AS) compliant companies in the year of adoption and thereafter. Further, the MAT-Ind AS Committee has recommended certain amendment to the provisions of section 115JB of the Act with effect from 1st April,2017 (i.e. A.Y.2017-18) which is the date of coming into effect of the amendments made in section 115JB of the Act by the Finance Act, 2017. The recommendations of the Committee regarding issuance of circular in the form of FAQs have been accepted by the Government.

Company_AmendentBill_2016-1.pdf

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