Volume 10 Issue No. 191/2018

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Hi Folks

The other day Vetrivel, my servant maid’s son came home with his resume. I was very happy to see a well-dressed, young engineer seeking a job. I have special affection for him since his father who is a mason, built our house 30 years ago. His parents have toiled for years to send him to a professional college, buy him a laptop, pay his fees and put him up in a hostel just so that he doesn’t have to toil as a labourer. And today he is a civil engineer wanting to get into the organised industrial sector. It is indeed a matter of pride that in our country youngsters are able to dream and achieve despite their economic or social status. This was unthinkable a few decades ago. But how is the job market ? Does it welcome anyone who has a degree in hand ? First of all does a degree prepare one for a job ? Does college education make the youth employable ? The answer is a big NO. Education, Employability & Employment seem to be traversing on different paths which rarerly converge. Without additional skill based courses, even an engineering degree which was the most sought after (and which unfortunately still is for the Indian middle-class) doesn’t fetch a decent job. Students need to constantly upgrade themselves to become employable. Added to this is the right attitude to take up challenges and work hard.
I was taken aback when Vetrivel said he wants to take up ‘design assignments’ in an engineering firm rather than toil on a construction site. Reason ? “Long hours ma’am ! I have to work beyond 10 pm every day. It is tough. I want to work on the computers.” Apart from a degree from a non-decrepit college in Tamil Nadu, he had no internship experience, no additional skill based courses, not even an exposure to the various engineering technology tools nor an articulate way of speaking. But he wanted a white collar job. It took me and my husband a full 1 hour to explain to him that while it is ok to dream about working in an AC office, he must first dirty his hands on a construction site, learn it the hard way, pick up some skill based knowledge and most importantly go around with his mason father who perhaps has better knowledge about construction than him ! We felt this experience would be better than a mere degree, in facing interviews. He nodded and went back but am not sure if he really understood the need for skill and experience vis a vis a degree.
A couple of days later, I was speaking to Rohit, a BCom graduate from rural Karnataka who had accompanied his elder brother to help him in some electrical work in our office. The elder brother Sudhakar is a jack of all trades – fixing broken taps, leaking commodes, fixing the mirror on the wall, laying the floor, replacing electrical wiring to getting the walls painted to cleaning the sump to…..I can go on. He is our man Friday for all such odd jobs. He does it himself and has associates to support when required. I was surprised to learn that after picking up these skills, he is earning 5 times more than what he was in a similar job. He is feeding 8 mouths and supporting 2 siblings in their education, not to talk of the savings for his sister’s wedding. Somehow all this didn’t seem an achievement for his younger brother Rohit. When asked what are his next plans after BCom, he shyly replied “Ma’am I want to do an MBA”. I asked which college. He replied there is some institute near my place which charges only 40,000 per year. I was shocked. What sort of education will he get from an MBA which comes at this price ? What will the qualification prepare him for ? What sort of employment can he expect ? Immediately I got into an uncalled-for counselling mode “Rohit, for heaven’s sake do not take up MBA from some unknown college. You will not learn anything and you will waste your brother’s money also. At any cost do not take up a BPO job. You will find yourself nowhere 2 years from now. Why can’t you join your brother and help him to expand his clients ? Pick up some skills that will help you in the long run rather than do another MBA.” He seems to have understood but did not acknowledge.
Amidst all this is Mala, a young girl who is working in a start up after her Class 12 due to financial problems. Her mother feels going to a college for a degree is better. I had to intervene and suggest that she continue to work, pick up some skills, gain experience and pursue a degree in an open university. In all 3 cases, I saw youngsters misguided to acquire a degree without the requisite skill sets to become employable. Who knows, with the skills they could become employers themselves ? Job-givers rather than job-seekers. Wouldn’t that be better than pursuing some qualification aimlessly and without a purpose ? Times have changed. Circumstances are different. Need of the hour is a Degree + skill. Not Degree alone. A Skill + Experience is even better. Ideal would be Degree+Skill+Right Attitude……All the Vetrivels and Rohits and Sudhakars and Malas need to be convinced. They and their parents are stuck in the 1980s and 1990s India where a university education would give them better life. Today it is different. Hope the Government is also listening and revamping the education system to make it more skill based. Education, Employability & Employment must converge !
Back to what Samhita is meant to do….bringing the latest regulatory updates every fortnight and reminding you of the tax due dates and returns filing. If you are a Director of any company, do not forget to read the Director’s KYC news which is going to be mandated by MCA shortly. Some more OTPs, confirmations, updates, filings, annual features etc. for the sin of having become a Director of a Company ☺ For any previous issues of Samhita and the readers feedback, please visit https://sharadasc.com/resource-center/. Happy Reading

The Central Government has amended the Companies (Accounting Standards) Amendment Rules, 2018 effective from 1st April, 2018 w.r.t Accounting Standard 11 and to clarify that Remittance from a non-integral foreign operation by way of repatriation of accumulated profits does not form a part of a disposal unless it constitutes return of the investment.

Calling the attention of Directors of all types of Companies – Private, Public, listed, unlisted, OPC and Not for profit !!!

As part of updating its registry, MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC to be notified and deployed shortly.

➢ Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in ‘Approved’ status, is required to file form DIR-3 KYC on or before 31st August, 2018.

➢ While filing the form, the Director’s Unique Personal Mobile Number and Personal Email ID is required to be indicated which would be duly verified by One Time Password (OTP). It is not clear how foreign Directors OTP is to be handled. No instructions are out as yet.

➢ The form should be filed by every Director using his own DSC and should be duly certified by a practicing professional (CA/CS/CMA).

➢Filing of DIR-3 KYC is mandatory for Disqualified Directors also.

➢After 31st August, 2018, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’.

➢ Such deactivated DINs shall be reactivated only after DIR 3 KYC filed by the Director and a specified fee paid. MCA may take other action also in addition to the fee.

This is yet another measure to trace shell companies through their Directors adding to the list of compliances to be ensured by the Company Secretary and the Director himself. It is hoped that this KYC verification on an annual basis will be made through an existing Form and not through an additional filing.

The Central Government has notified that no TDS would apply to “Indian Railway Finance Corporation Limited 54EC Capital Gains Bond” issued by Indian Railway Finance Corporation Limited (IRFCL) and “Power Finance Corporation Limited 54EC Capital Gains Bond” issued by Power Finance Corporation Limited (PFC Limited).

Central Board of Direct Taxes CBDT) has notified Place of Effective Management (PoEM) provisions which shall come into force w.e.f 1st April, 2017. These are applicable to a Foreign Company which shall be deemed to be a resident in India owing to its PoEM being in India. A mechanism has been notified for calculation of written down value of assets, unabsorbed depreciation, computation of brought forward loss and applicability of TDS provisions. In case of conflict where provisions relating to a domestic resident Company and a Foreign Company arise, the later shall prevail. This means though the Foreign Company is treated as a resident Company under PoEM it shall pay tax rates as applicable to a Foreign Company.

The following clarifications were issued w.r.t the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances:

➢ Interception of conveyances: It is clarified that only goods in respect of which there is violation of GST law can be detained and not all the goods in a consignment.

➢ Time limit for concluding inspection proceedings : The time limit to conclude inspection proceedings where goods being transported are inspected after the issuance of an ‘order’ in Form GST MOV-02 by the ‘proper officer’, has been amended from ‘ three working days’ to ‘three days’.

A transporter who is registered in more than one State or Union Territory having the same Permanent Account Number, may apply for a Unique Common Enrolment Number by submitting the details in FORM GST ENR-02 using any one of his Goods and Services Tax Identification Numbers. Upon validation of the details furnished, a Unique Common Enrolment Number shall be generated and communicated to the said transporter. Once this number has been obtained the transporter shall not use any of the GST Identification numbers for the purpose of complying with the ‘E-way Rules’ under the CGST Rules.

Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

S. C. Sharada & Associates, Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034
sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]

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