AASK & Associates LLP

AASK & Associates LLP AASK & Associates LLP (formerly known as Meenarth Corporate Consultants LLP)

03/08/2016

Corporate Updates

CBDT

CBDT vide order dated 29th July, 2016 has extended the due-date for filing Income-Tax Returns for Assessment Year 2016-17 from 31st July,2016 to 5th August,2016. The order is applicable to all taxpayers throughout India, who are liable to file their Income-Tax Returns by 31st July, 2016. The extension has been granted in consideration of the Bank strike on 29th July, 2016 and Bank holiday on 31stJuly, 2016, in order to avoid any inconvenience to the taxpayers.

RBI

RBI has released guidelines for ‘on tap’ licensing of Universal Banks in the Private Sector. The guidelines state that individuals with 10 years senior-level experience are eligible to promote a bank but large industry houses have been excluded as eligible entities, although they can invest up to 10 percent. It also prescribes the minimum voting equity capital requirements, the pattern of shareholding in the bank and the procedure for application for setting up banks in the private sector. The validity of the in-principle approval issued by RBI has also been revised from 12 months to 18 months from the date of granting in-principle approval and would thereafter lapse automatically.

29/07/2016

MCA

MCA has notified the Companies (Accounts) Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette. As per the Amendment rules, if a Company is a Wholly-owned Subsidiary (‘WOS’) or a partially WOS of any other company and all its members, whether entitled to vote or not do not object the Company for not presenting Consolidated Financial Statement (‘CFS’); and its securities are not listed or is not under the process of listing; and its Ultimate Holding or intermediate holding company files the CFS with Registrar in accordance with Accounting Standards, then the Company is not under the obligation to prepare CFS. Further, the Board Report shall now include highlights of the performance of subsidiaries, associates and joint venture companies and their contribution to the overall performance of the company during the period rather than a report on the performance and financial position of the same. Also, the Internal Auditor may be an individual or a partnership firm or a body corporate. Further, now a Cost Accountant whether engaged in practice or not can be appointed as an Internal Auditor. Further, the Formats for Form AOC-1 and Form AOC-4 have also been modified.

MCA

MCA has notified the Companies (Incorporation) Third Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette. The amendment has brought about many changes in the said rules inter alia prohibiting only a natural person from being a member and a nominee of more than a One Person Company. Further, the requirement of Form INC-10 has been omitted for incorporation of a Company. Rule 26 has also been amended which now provides for every Company having a website to disclose/publish its name, address of its registered office, the CIN, Telephone number, fax number if any, email and the name of the person who may be contacted in case of any queries. Forms INC-27 and INC-11 have been amended and new forms for ‘Advertisement to be published in the newspaper for conversion of Unlimited Liability into Limited Liability Company’ and ‘Certificate of Incorporation pursuant to conversion of Unlimited Liability Company into Limited Liability Company’ have been inserted in the principal rules.

12/07/2016

Forms FC-2, FC-4, MGT-10, MR-1, SH-7 and Refund Form are likely to be revised on MCA21 Company Forms Download page w.e.f 13th July 2016. Stakeholders are advised to check the latest version before filing eForm AOC-04 for filing Annual Financial Statement is likely to be amended w.r.t filing of CSR expenditure details. The revised AOC-04 eForm is likely to be available on MCA portal by 3rd week of Jul-2016. Stakeholders are requested to note that filing CSR details are mandatory. Therefore, Annual filing may be planned as per revised AOC-04.

06/04/2016

Corporate Update:

MCA

MCA has notified the New version of eForm INC-1 (Application for reservation of name) and MR-1 (Return of appointment of MD/WTD/Manager) w.e.f 6th April, 2016 and the same are available on MCA21 Portal. Only new version of the eForm will be acceptable. Stakeholders are requested to plan accordingly and ensure that you have downloaded the latest version for filing and uploading the latest version only. Form- wise date of last version change is available at on the website of MCA.

RBI - FEMA

The Reserve Bank of India has made amendments in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 which may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifth Amendment) Regulations, 2016 and shall come into force from the date of their publication in the Official Gazette. 26% FDI was permitted in the insurance sector under the automatic route and government approval was required for FDI beyond 26% and up to 49%. Now, up to 49% FDI is permitted under the automatic route, subject to prescribed conditions. In addition, it has now been prescribed that the investment under the automatic route up to 49% shall be subject to verification by the Insurance Regulatory and Development Authority of India.

05/04/2016

Corporate Updates:

MCA

Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) (Amendment) Rules,2016. The Ministry has now made it mandatory for NBFCs with net worth of Rs.500 crore or more and holding, subsidiary, joint venture or associate companies of such NBFCs to comply with Indian AS for accounting periods beginning on or after the 1st April, 2018. The amended rules also provide the principles to be followed for the purpose of calculation of net profits of NBFCs. Definition of ‘contract assets’ has been omitted. Rule 5 of principle rules have been substituted which now provides that Banking Companies and Insurance Companies shall apply the Ind ASs as notified by the Reserve Bank of India (RBI) and Insurance Regulatory Development Authority (IRDA) respectively. An insurer or insurance company shall however, provide Ind AS compliant financial statement data for the purposes of preparation of consolidated financial statements by its parent or investor or venturer, as required by the parent or investor or venturer to comply with the requirements of these rules. The amended rules shall come into force on the date of their publication in the Official Gazette.

CBDT

CBDT in pursuance to the notification has released the electronic filing of ITRs 1 and 4S on its website. Further, it has also announced that other ITRs will be e-enabled shortly. Also, with effect from 01-04-2016, Form 15CA for payments to a non-resident not being a company, or to a foreign company, Form 15CB for Certificate of an accountant and Form 15CC for Quarterly statement hve been substituted by new forms and are available for e-filing.

31/03/2016

Corporate Updates:

MCA

The Ministry of Corporate Affairs has amended the Companies (Share Capital and Debentures) Rules, 2014 and notified the Companies (Share Capital and Debentures) Second Amendment Rules,2016 which shall come into force on the date of their publication in the official Gazette. A new proviso has been inserted in Rule 12(5) to enable the companies to close the buy back issue before the expiry of 15 days. Accordingly, if all members of a company agree, the offer for buy-back may remain open for a period less than fifteen days.

Employees' Provident Fund

The Central Board of Trustees of the Employees' Provident Fund Organisation has decided to give benefit of accrual of interest on the inoperative provident fund accounts. Accounts of members who do not receive contributions for a continuous period of three years are treated as“Inoperative accounts”. Interest on these accounts was stopped in 2011. The Board has decided to resume crediting interest on such accounts w.e.f. 01.04.2016. This is in view of recent amendment to paragraph 69(1) (a) of The Employees’ Provident Fund Scheme, 1952 that has been amended to provide for withdrawal of full amount on retirement from service after attaining the age of 58 years

21/03/2016

Corporate Updates:

MCA

MCA in its continuous endeavor to serve the stakeholders better is launching a new MCA21 portal for Company users. The new portal is likely to be launched on 27th March 2016. In order to implement the new portal, theoffline payment methods – Challan, NEFT, Pay Later have been disabled for Company services w.e.f. March 19, 2016. Online Payment methods to be effective until the new portal is launched. All Stakeholders are advised to make use of online payment methods until the new portal is launched

RBI - MSME

The Ministry of Micro, Small & Medium Enterprises has notified a Framework for Revival and Rehabilitation of MSMEs to address the stress in the accounts of MSMEs so that incipient sickness can be detected by banks in the units and a corrective action plan can be set in motion for them. The salient features of the framework are identification of incipient stress; formation of committees for distressed micro, small & medium enterprises (MSMEs); and a Corrective Action Plan by the Committee. Under the framework, before a loan account of an MSME turns into a Non Performing Asset (NPA), banks/creditors are required to identify incipient stress in the account. Any MSME may also voluntarily initiate proceedings if enterprise reasonably apprehends failure of its business or its inability or likely inability to pay debts and before the accumulated losses of the enterprise equals to half or more of its entire net worth. Moreover, banks shall constitute one or more Committees at such locations as may be considered necessary by the board of directors to provide reasonable access to all eligible MSMEs which have availed credit facilities from such bank. The Ministry added that during the period of operation of Corrective Action Plan (CAP), the enterprise shall be allowed to avail both secured and unsecured credit for its business operations.

23/02/2016

Corporate Update:

SEBI

SEBI has notified the amendments which may be called as the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2016 and shall come into force on the date of their publication in the Official Gazette. After the amendment, nothing contained in regulation relating to Substantial acquisition of shares or voting rights shall apply to acquisition of shares or voting rights of a company by the promoters or shareholders in control, in terms of the provisions of Chapter VI-A of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.”

NSE - OPC

National Stock Exchange (NSE) has issued a Circular stating that 'One Person Company' can act as a Stock Broker provided the entity has at least two Directors. However, such broker would not be allowed to trade in his proprietary account. Further, OPCs can register as sub-brokers too and the entity shall ensure compliance with the provisions of the SEBI Act, 1992, Regulations, Circulars/ Guidelines/ Directives/ Instructions etc. as may be issued from time to time by SEBI or the Government of India relating to the activities carried on by it.

17/02/2016

Corporate Update:

CBDT

CBDT has issued instruction to the Assessing Officer on the matter relating to the Rectification of Orders under Section 154 of the Income Tax Act, 1961. As instances has come to notice of the Board that in some cases rectification order under section 154 was passed by Assessing Officer on AST system without giving copy of the order to the tax payer concerned. This was causing grievance to the taxpayers as they remain unaware of the orders and consequentially, were unable to pursue the matter further, either in appeal or rectification, if required. Section 154(4) mandates that rectification order shall be passed in writing by the Income Tax Authorities. Therefore, on consideration of this matter, the Board hereby directed that all the rectification application must be disposed of after passing the order in writing, to be duly served upon the taxpayer concerned and not merely making necessary rectification on the AST System.

SEBI

SEBI has reviewed the guidelines to further streamline the process of OFS with an objective to encourage greater participation of all investors including retail investors. It has been decided that the Seller shall notify to the stock exchanges its intention for sale of shares latest by 5 pm on T-1 day and Stock exchanges shall inform the market immediately upon receipt of such notice. On the commencement of OFS on T day only non-retail investors shall be permitted to place their bids. Cut off price shall be determined based on the bids received on T day as per the extant guidelines. The retail investors shall bid on T+ 1 day and they may place a price bid or opt for bidding at cut off price. The seller shall make appropriate disclosures in this regard in the OFS notice. In order to ensure that shares reserved for retail investors do not remain unallocated due to insufficient demand by the retail investors, the bids of non- retail investors shall be allowed to carry forward to T+1 day. Further, the unsubscribed portion of the shares reserved for retail investors shall be allocated to non-retail bidders on T+1 day at a price equal to cut off price or higher as per the bids. In this regard, option shall be provided to such non-retail bidders to indicate their willingness to carry forward their bids to T+1 day. If the non-retail bidders choose to carry forward their bids to T+1 day, then, they may be permitted to revise such bids. Settlement for such bids shall take place on T+3 day.

09/02/2016

Corporate Update:

RBI - FEMA

RBI had notified the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 and old regulations have been repealed and replaced by the new regulations. These regulations seek to regulate opening and maintenance of foreign currency accounts in and outside India by a person resident in India. A person resident in India may open, hold and maintain with an authorized dealer in India the Exchange Earner's Foreign Currency (EEFC) Account, Resident Foreign Currency (RFC) Account, Resident Foreign Currency (Domestic) [RFC(D)] Account and Diamond Dollar Account (DDA). Further, the list of persons who can open can open foreign currency accounts in and outside India has also been prescribed. A Foreign Currency Account with an authorized dealer in India under these Regulations may be opened, held and maintained in the form of current or savings or term deposit account in cases where the account holder is an individual, and in the form of current account or term deposit account in all other cases. The account can be held singly or jointly in the name of person eligible to open, hold and maintain such account.

CBDT - Income Tax

The Central Board of Direct Taxes (CBDT) has entered into two bilateral Advance Pricing Agreements (APAs) with United Kingdom on 29th January, 2016. The APAs have been entered into soon after the Competent Authorities of India and United Kingdom finalised the terms of the bilateral arrangement under the Mutual Agreement Procedure (MAP) process contained in the India-UK DTAA. The APAs cover the period 2013-14 to 2017-18 and also have a “Rollback” provision for 2 years (2011-12 and 2012-13). Transfer pricing disputes on the same transaction were recently resolved under MAP for each of these two companies for the years 2006- 07 to 2010-11. With the signing of the bilateral APAs, the two Indian companies have been provided with tax certainty for 12 years each (5 years under MAP and 7 years under APA). This is a significant step towards providing a stable and predictable tax regime. The two APAs are also significant because they address the issues of payment of management & service charges and payment of royalty. These transactions generally face prolonged and multi-layered transfer pricing disputes. With this signing, CBDT has so far signed 41 APAs out of which 38 are unilateral and 3 are bilateral.

05/02/2016

Corporate Updates:

RBI - FEMA

RBI has made amendments to the existing regulations relating the Acquisition and Transfer of Immovable Property outside India and notified the Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015. The old regulations have been repealed and replaced by the new Regulations. In terms of these Regulations, acquisition or transfer of any immovable property outside India by a person resident in India would require prior approval of Reserve Bank except in the cases where property held outside India by a foreign citizen resident in India; property acquired by a person on or before 8th July, 1947 and held with the permission of Reserve Bank; property acquired by way of gift or inheritance from: property purchased out of funds held in Resident Foreign Currency (RFC) account; property acquired jointly with a relative who is a person resident outside India; property acquired by way of inheritance or gift from a person resident in India. Further, an Indian company having overseas offices may acquire immovable property outside India for its business and residential purposes provided total remittances do not exceed the prescribed limits. The new regulations have been notified and shall come into force with effect from January 21, 2016.

RBI - FEMA

The RBI has revised nine regulations issued under the Foreign Exchange Management Act, 1999 (FEMA). Consequently, the respective original notifications and subsequent amendments stand repealed. For easy identification, revised regulations will carry the same numbers as in the old regulations with a suffix ‘(R)’ along with the year in which they are published. The Foreign Exchange Management Act enacted in 1999 with 25 original notifications came into force with effect from June 1, 2000. Over the years the regulations framed under FEMA have had over 330 amendments. Keeping in view the objective of promoting ease of doing business, a need was felt to consolidate the regulations and rationalise them in the light of evolving business environment and changing practices in cross-border transactions relating to external trade and payments. The revised regulations come into force on the date of their publication in the Gazette of India as indicated in the respective regulations.

25/01/2016

Important Update:

Dear Professional,

Analysis of amendment by Companies (Incorporation) Amendment Rules, 2016.

1. Now there are three re-submission opportunities instead of Two Opportunities.

2. Total period for re-submission of documents shall not exceed a total period of 30 days.

3. Rule 8(2)(b)(ii) omitted:
Now the name shall be considered desirable even if it is not in consonance with the principle objects of the Company

4. Rule 8(2)(b)(x) omitted : Now abbreviated name of company based on the name of the promoter will be allowed
5. Rule 8(2)(b)(xvii) and Rule 8(3) omitted. Now there is no need to show the scope, scale of activity in the name of Company while incorporation and change in name.

6. Rule 8(4) omitted. Now If the proposed name is based on the name of the relatives of the promoters / any other person, no need to obtain/ attach NOC and proof of relationship of such person.

Address

Delhi
110078

Website

Alerts

Be the first to know and let us send you an email when AASK & Associates LLP posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Practice

Send a message to AASK & Associates LLP:

Shortcuts

Share

Category