Hi Folks
It is festive time. As we celebrate Navarathri or Dasara, signifying the victory of good over evil, celebrations also have moved over from socialising, dancing, poojas, eating and making merry together as a community to splurging on materialistic things on the Big Billion Day Sales. No more just ‘buy 1 get 2 free’ offers. It is ‘happiness Sale’ or ‘khushiyon ka button dabao i.e. press the button of happiness’ kind of celebrations as some brand jingle blares on the radio or life-size ad cut outs zoom into you from hoardings. Can happiness really be bought ?
As I get a little philosophical, the joy that I derive looking at the colourful rangoli (floral design) drawn by one of my long-time employees as part of the office pooja celebrations is immeasurable and invaluable. I must give it to her that whether it is work or rangoli, she puts in the same kind of meticulousness and diligence into it to produce a ‘work of joy’. No wonder the Samhita team voted for her solo rangoli to occupy the place of pride on the banner, as a tribute to her and to our festive celebrations.

As my thoughts move from materialistic happiness to happiness as a state of mind, I cannot but empathise with those that are afflicted with mental illness who are denied this happiness, this state of a balanced mind which can exercise discretion, which can function normally. While this piece is not about the various kinds of mental illnesses, it is definitely a tribute to those that are battling mental health conditions in ignominy and shadows, fearing the bias and stigma. Well, things are achanging. Acceptance and treatments are improving. It is heartening to note that recently, the IRDA (Insurance Regulatory Development Authority) has directed all insurance companies to include mental illness under insurance policies, at par with physical illness as provided under the Mental Healthcare Act, 2017 which is effective from 29th May, 2018. Now people with mental health conditions can be covered under mediclaim. Carrie Fisher has said “……they should issue medals along with the steady stream of medication to them”. Here’s wishing joy and good health to all these unsung heroes and their families that are fighting an every day battle !

Whether you are hopping from one garbha dance group to another or moving from one house to another admiring the golu / bombe (dolls) displayed or finding solace in group chanting (yes, all this seems to be on the rise !) or unfortunately laden with deadline-bound office work like some of us, do find time to read the regulatory updates of this 198th issue of Samhita. Keeps you updated as always – whether with joyous news or not, I cannot tell

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

Happy Reading

The due dates for filing of e-forms AOC-4, AOC (CFS), AOC-4 XBRL and e-Form MGT-7 of Companies having their registered office in the State of Kerala has been extended upto 31.12.2018 and the additional fees applicable for the same has been relaxed consequent to heavy rain and floods in the state.

The Government has constituted National Financial Reporting Authority (NFRA) w.e.f 1st October, 2018 with its head office at New Delhi. It has wide powers from recommending Accounting and Auditing Standards, monitoring compliance and enforcing the same to overseeing the quality of Audit professionals, penalising them and wherever required investigate companies and their auditors in case of misconduct of the Chartered Accountants.

Schedule III of the Companies Act, 2013 deals with financial statements of companies. In Division I and II of the schedule, several changes in nomenclature have been made to provide for greater disclosure and alignment with Ind AS. It also calls for financial information at a sub-category level under trade payables, receivables, assets etc.

A new division III has been inserted in the schedule which provides for financial statements to be prepared by NBFCs in accordance with Ind AS. These changes will take effect from the date of notification in the Official Gazette.


CGST (Eleventh Amendment) Rules, 2018 have been notified making amendments to CGST Rules, 2017 relating to refund on exports. It is clarified that if exporters have availed IGST on export of goods or services they should not have received supplies on which the supplier has availed the benefit under GST against various notifications. In effect, the position has been restored w.e.f 23rd October, 2017.

CGST (Twelfth Amendment) Rules, 2018 seeks to allow exporters who have received capital goods under the EPCG scheme to claim refund of the IGST paid on exports.


The due date for filing of income tax returns and audit reports for all assesses liable to file IT returns pertaining to AY 2018-19 is extended from 15th October, 2018 to 31st October, 2018. Interest will continue to be levied if assesses that need to pay Income Tax, file their returns after 30th September, 2018.


Section 10(38) hitherto exempted capital gain on an equity share in a company or a unit of an equity oriented fund or a unit of a business trust where STT has been paid on the sale of such instruments. This section has been replaced by Section 112A which now taxes capital gain on an equity share in a company or a unit of an equity oriented fund or a unit of a business trust exceeding Rs. 1 lakh @ 10% from 1.4.2019 provided STT has been paid. However, in order to provide relief to genuine cases where STT could not have been paid, Section112A (4) empowers the Central Government to specify the nature of transactions to which the condition of STT would not apply.

The notification provides that LTCG taxation under section 112A (i.e., exemption subject to Rs. 1 lakh limit as mentioned above ) shall be applicable in case of share acquisition (without Securities Transaction Tax) made by non-residents / venture capital funds under specified situations, share acquisition made under ESOP or approved M&A schemes and the SEBI guidelines. The final notification additionally covers non-Securities Transaction Tax scenarios for share acquisition by mode of transfer under section. 45(3)/(4) relating to capital contribution by partner, capital asset distribution under dissolution.

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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