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Hi Folks

If you recall, the last issue was about ‘Seed Post’ and it carried a line “……The thought in similar way travels and propagates in our minds.” How true ! It not only propagates but also crystalizes as an outcome. The Warli art in the banner is an outcome of one such small thought seeded in my mind long, long time ago. It is the product of my long cherished dream to learn and paint warli art which is so simple yet appealing.

While the thought lingered in my mind for long, I struggled to find the time to join an art class amidst the busy work and other activities schedule. It remained as a “I will do it someday” wish. I kept dreaming that someday I will be good enough to paint the big office wall ………..until that day in March when ……..when one of my clients, an artist couple for whom I had registered an LLP turned up. We struck a conversation. I shared my wish, my dream with them. Lo and behold, they offered an easy-to-do solution. They said they would do the basic line drawings while my team could fill it up with paint. I never thought my cherished dream could be fulfilled so easily. While the artist couple, Anand & Anjali created the Tree of Life and a rustic life around it through their line diagram, my team and I brought them to life with the “Labour of Love & Teamwork”. Yes, this is what I call it. The whole experience of painting daily was very meditative and therapeutic. So much so that once done, I felt sad that the activity was over at last. The daily motivation of doing something different from the regular legal work was over. I had almost built an emotional attachment with the birds, flowers, trees, leaves, people, houses, animals etc. on the wall. To me it represents a microcosm of our world. Difference is that on the wall it is such a beautiful sustainable livelihood that depicts co-living, inter-dependent living, simple living……basically promoting one of UN Sustainable Development Goals “Sustainable Cities & Communities”. Sadly in reality, we are moving far away from this.

Well, as a group activity, warli art is simple and easy to execute. And of course fun too, as we give life to the variety of forms. Best part is, it doesn’t matter if someone’s hand or leg is thin or fat. Some bird’s feathers are not proportionate or a beak is longer. The differences and inequality of the geometric designs make the art even more realistic and credible.

Finally, I am happy a picture of “Samruddhi” or “Plentitude” welcomes us as we step in each day to work ! Decorating the office wall with tribal art has definitely helped break the routine and even deal with the uncertainties of MCA in a meditative mood !! Do scroll down to catch up with the regulatory updates from MCA & GST in this 210th issue of Samhita. On your right is an insightful article on “Mediation in Real Estate Disputes” by Advocate Saradha Kumar from CAMP. For any previous issues of Samhita and the readers feedback, please visit https://sharadasc.com/resource-center/

Happy Reading
MCA Updates :
SPICe + AGILE

The Companies (Incorporation) Third Amendment Rules, 2019 have been notified w.e.f 01.04.2019.

Application for incorporation of a Company shall now be accompanied by e-form AGILE (INC-35), wherein companies can apply for Goods and Service Tax Identification Number (GSTIN), Employees’ State Insurance Corporation (ESIC) registration and Employees’ Provident Fund Organisation (EPFO) registrations from the following dates :

  • GSTIN – 31.03.2019
  • EPFO – 08.04.2019
  • ESIC – 15.04.2019

The form also provides a No button for opting out of the above registrations.
Clarification of filing of one time return – DPT-3

Every company which is required to file a one time return in DPT-3 shall file the data on deposits upto 31.03.2019 as opposed to 22.01.2019 previously.

Companies can file the one time return in DPT-3 without any additional fees till 30 days from the deployment of the e-form DPT-3, which is still not released.

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A substantial chunk of disputes in India relate to real estate. Nature of such disputes relate to delayed possession, defective construction, delay in refund of advances, interest payments, kind of amenities provided, size of the plot or apartments, lopsided agreements etc. When an aggrieved consumer approaches the builder for rectification
of any of the above issues, the issues are often-times never resolved and there is an impasse. The consumer then approaches an advocate for help and the matter ends up in litigation taking years…Read more

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Clarification w.r.t DIR-3 KYC

Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year shall submit an e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year. It is also clarified that DIR-3 KYC is required to be completed annually.

However, the e-form in its current avatar does not permit filing for DINs allotted post 31.03.2018 as well as on annual basis.

Finally, the MCA has acknowledged that the required e-form is not yet ready though all the DIN holders are getting repeated reminders from them. At last, it is clarified that the requirement to file DIR-3 KYC annually including for FY 2018-19 exists. We need to wait for the right form and file within 30 days to avoid paying filing fee which would become applicable post the due date.
Extension of due date for CRA-2

Post receipt of various representations w.r.t filing of e-form CRA-2 where companies are required to get their cost records audited for the 1st time, the MCA has extended the due date for filing the said form to 31.05.2019 without payment of any additional fees.
Ind AS Rules Amended

The Companies (Indian Accounting Standards) Amendment Rules, 2019 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2019 have been notified w.e.f 01.04.2019 with respect to IND AS 101, 103, 104, 107 and so on.

GST updates :
Clarification on GST @ 6%

A new scheme with tax rate of 6% on intra-state supplies with effect from 1.4.2019 was introduced Vide Notification 2/2019 dated 7.3.2019, in respect of the First Supplies of Goods or Services or both up to an aggregate turnover of Rs. 50 lakhs on or after 1st April in any Financial year. The rate of CGST may be 3% and SGST may be 3% subject to fulfilment of certain conditions. In this regard, the following clarifications have been issued :

  1. A registered person opting to pay CGST @ 3% would need to file intimation in FORM GST CM P-02 under the category “Any other supplier eligible for composition levy” on or before 30th April 2019. Further Form GST ITC-03 shall also be filed.
  2. A new registrant wanting to avail of the lower tax will have to file form GST-REG-01 at the time of filing application for registration.
  3. The option to pay tax at lower rate shall be deemed applicable in respect of all places of business registered with the same PAN
  4. The option to pay tax by availing the benefit of the said notification would be effective from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year

It may be noted that the provisions contained in Chapter II of the CGST Rules shall mutatis mutandis apply to persons paying tax by availing the benefit of the said notification, except to the extent specified above.

CGST Rules Amended

Central Goods and Services Tax (Second Amendment) Rules, 2019 have been notified and shall come into force on the date of publication of the notification in the Official Gazette.

  1. Paragraph 3 & 4 of the above Notification are amendments made with respect to the Real Estate Industry.
  2. Paragraph 6 carries the amendment of Rules pertaining to certain assessment proceedings. Kindly refer to the notification for more details.
  3. Order of Utilization of Input Tax Credit : Rule 88A has been inserted in the CGST Rules as follows:
    Rule 88A. Order of utilization of input tax credit – Input tax credit on account of integrated tax shall first be utilised towards payment of integrated tax, and the amount remaining, if any, may be utilised towards the payment of central tax and State tax or Union territory tax, as the case may be, in any order:
    Provided that the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully.”

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]