Hi Folks
Last Saturday at the monthly Pink Hope Connect Talk (a voluntary cancer survivors group programme), Dr. Kumaraswamy, a senior oncologist made a dramatic opening on the topic “How to reduce the chances of cancer recurrence ?”. He said “My objective is not to Answer any patient questions but just to Empower You. Don’t ask will I be cured ? What answers can doctors give ? Answer lies within You. Ask yourself how to prevent recurrence. Focus on what you can do rather than on focussing what doctors are doing”.
What followed was an amazing eye-opening talk on the Power of the Mind, Power of Positive Thinking, Power of Fear (yes he said fear is good if used well), Power of Being Active (activity is the elixir of life), Power of Spirituality, Power of Creative Visualisation, Power of Healthy Lifestyle and most importantly the Power of Altruism. Let me dwell a bit on the last one….He said leading an altruistic life (helping others, living for others) on the principles of “I’m OK. You are OK. They are OK. It’s Ok” is far more beneficial than constantly worrying if the disease will strike again or not. Did you know that practising Altruism increases the body immunity and enhances the NK cells (Natural Killer cells) thereby reducing the chances of recurrence of a disease ? How beautiful ! Helping others helps you too. What a simple yet profound way of life !! At the end of the impactful session, it was clear – “Cancer or any other disease. There is no miracle outside. It is all within YOU”.
This talk echoed the message of Dr. Daisaku Ikeda (International President of Soka Gakkai, a renowned world-wide Buddhist voluntary group that believes in creating value and everlasting peace through Human Revolution). He says “we are capable of maintaining a sense of connection with others, and through this can offer moments of authentic happiness to those around us, bringing our humanity to an ever-greater lustre.” When I look back on my life, knowingly or unknowingly I have been practising altruism in one way or the other. Message for me is to step up further.
Coming to think of it, Samhita is also an altruistic initiative in as much as it helps others as my own team. This 193rd issue contains the usual regulatory changes, highlights of some Bills passed by our Parliament and the tax due dates to be complied with. While you continue to reflect and mull on Altruism, do not miss out the article on ‘Conversion of LLP into Company’ penned by a to-be Lawyer and Company Secretary. Last issue we had carried the relevant notifications effecting this possibility.

For any previous issues of Samhita and the readers feedback, please visit

Happy Reading

The MCA has notified Section 5 & Section 6 of the Companies (Amendment) Act, 2017 along with Rules w.e.f. 27th July, 2018.
S.No Notified Sections of CA, 2017 Sections of Amendments of CA, 2013 Title Changes made
1 S.5 S.7(1)(c) read with Companies (Incorporation) Third Amendment Rules,2018. Incorporation of a Company The requirement of affidavit from first subscribers and directors has been replaced with a declaration from them.
2 S.6



Registered Office of the Company

A company shall now have a registered office within 30 days, instead of 15 days from its incorporation.

The time period for giving notice of change of situation of registered office is increased from 15 days to 30 days.

CBDT has extended the due date for filing of Income Tax (IT) Returns from 31st July, 2018 to 31st August, 2018 in respect of taxpayers like individuals and non–tax audit assesses.

➢ Not applicable to following:

(a) Companies
(b) Non-Companies whose books are required to be audited
(c) Working partner of a firm whose accounts are required to be audited

The RBI interface for SMF Reporting will be available to all registered entities to add / edit details in Entity Master till 15th August, 2018. Fresh registration is not possible.

CBDT has amended Income Tax Audit Form No. 3CD with effect from 20th August, 2018 to incorporate further reporting requirement related to Goods and Service Tax (GST) , Transfer pricing, Statement of Financial Transactions, Income from other sources, Secondary adjustment to transfer price, Limitation of Interest deduction, Cash Receipt / Payment of more than 2 Lakh from a single person in a day, Deemed Dividend, General anti-avoidance rule, Furnishing of report in respect of international group etc.
Insolvency and Bankruptcy Code (IBC), 2016 read the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (Regulations) provide the following:
  • If the corporate debtor has at least 10 financial creditors in a class, the creditors in the class may indicate their choice of an insolvency professional (IP), amongst the 3 offered by Interim Resolution Professional (IRP), to act as their authorised representative.
  • The authorised representative will collect voting instructions from the respective class of creditors, attend the meetings of the committee of creditors (CoC) and cast vote in respect of the said class in accordance with the instructions he receives from the creditors.
  • Wherever the approval of a resolution plan is at least 15 days away, the IRP shall expeditiously obtain, by electronic means, the choice of the IP from creditors to act as the authorised representative of the class and proceed further in the manner as specified in Regulations.
The Securities Contracts (Regulation) (Amendment) Rules, 2018 shall come into force w.e.f. 25th July, 2018. As per the amended Rules, if the public shareholding falls down to 25% as a result of the Resolution Plan, the Company shall bring back the same to 25% within a maximum period of 3 years from the date of such fall. Similarly, if the public shareholding falls below 10 % then the company shall bring back the same to 10% within a maximum period of 18 months form the date of such fall.
The Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill was introduced in Lok Sabha and provides for change in the criterion of classification of MSMEs from the existing ‘investment in plant and machinery or equipment’ to ‘annual turnover’ of the enterprise as below:

➢A micro enterprise, where the annual turnover does not exceed 5 crore rupees;

➢A small enterprise, where the annual turnover is more than 5 crore rupees but does not exceed 75 crore rupees;

➢A medium enterprise, where the annual turnover is more than 75 crore rupees but does not exceed 250 crore rupees.

The Lok Sabha has passed Negotiable Instruments (Amendment) Bill, 2018 On 23rd July, 2018. The amendment introduces insertion of following provisions:

➢Section 143A w.r.t Power to direct interim compensation

– The Bill gives power to the Court to order payment of interim compensation by the drawer of the cheque to the complainant.
– The interim compensation shall not exceed 20% of the cheque amount ordered to be paid in cases where the accused does not plead guilty in a summary trial or summons case.
– The interim compensation to be paid within a period of sixty days of the order.
– The interim compensation so received has to be returned by the complainant along with interest at bank rates as prescribed by the Reserve Bank of India, if the accused is acquitted after trial.

➢Section 148 w.r.t Power of Appellate Court to order payment pending appeal against conviction

– To direct deposit of a minimum of 20% of the fine or compensation awarded by the trial Court, within a period of sixty days from the date of the order. The said amount shall be in addition to any interim compensation paid by the appellant.
– To direct the release of the amount deposited by the appellant to the complainant at any time during the pendency of the appeal.

The Bill will become a law only after it is approved by the Rajya Sabha and receives the assent of the President of India.

The Fugitive Economic Offenders Bill, 2018 was passed in the Lok Sabha on 19th July, 2018. The Bill seeks to confiscate properties and assets of economic offenders that evade prosecution by remaining outside the jurisdiction of Indian courts provided that the Economic offences with a value of more than Rs. 100 crores are listed in the schedule of the Fugitive Economic Offenders Bill.
As per the Bill, a court (‘Special Court’ under the Prevention of Money Laundering Act, 2002) has to declare a person as a Fugitive Economic Offender. A Fugitive Economic Offender is a person against whom an arrest warrant has been issued in respect of a scheduled offence and who has left India so as to avoid criminal prosecution, or being abroad, refuses to return to India to face criminal prosecution.
Services supplied by individual Direct Selling Agents (DSAs) to Banks/ Non-Banking Financial Company (NBFCs) will be charged GST under Reverse CM with effect from 27th July, 2018.
Effective 15th August, 2018 entrepreneurs have the “freedom” to convert their LLP to a company, subject to following certain procedures. The LLP is dissolved automatically, ensuring a smooth transition upon conversion. Mr. Sreenivasan Narasimhan, Legal Intern has analyzed the process in detail in the article. Relevant notifications were carried in the previous issue of Samhita.

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 Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]

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