Volume 3 Issue No. 32 / 2011 Lexspeak  April,
2011
Thought for the day

Small opportunities are often the
beginning of great
enterprises
 
News from the
Govt
DIPP
  MCA
  DGFT
  RBI
 Service
Tax
INCOTERMS 2000

   International Commercial
Terms

The
Incoterms  rules are the
International Chamber of Commerce (ICC) rules for
the use of domestic and international trade
terms.

International
Commercial Term
(Incoterm)

 

DAF

Delivered at Frontier
…….named place

 

Meaning

Risk and responsibility for
import clearance passes to buyer when delivered to
named border point by seller. Used for any mode of
transportation.

 

Statutory Compliance
Chart

April 2011
S M T W T F S
   1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26  27  28 29  30
Reminders

07 Apr – TCS Payment
(IT)
10 Apr
– 
Excise Return
filing

15 Apr –
PF Payment
20 Apr –
Professional Tax (PT)
      Payment       

20 Apr – VAT Payment

21 Apr – ESIC Payment
25 Apr – PF
Monthly Return 
Filing
25 Apr
– Service Tax
Returns
30 Apr – Remittance of
TDS
30
Apr – Service Tax
Returns 

(Input  Service
Distrubutor)
30
 Apr –
PF Annual Return Filing
30 Apr – Annual PT payment
(Business
Establishments)

 

We
contend that for a nation to try to tax itself
into prosperity is like a man standing in a
bucket and trying to lift himself up by the
handle.

 

Hi All

This fortnight was witness to 2 New Years (4th
& 14th April, 2011) celebrated in many parts of India,
signalling the onset of spring with the cuckoo singing,
mangoes ripening and freshly blossomed flowers setting the
trees ablaze in a riot of colours. The fortnight
also witnessed a blaze of a new kind, a new daring
beginning to the voice of the people – Anna Hazare’s famous
fast against ‘cancerous corruption’ wtih the entire nation
rallying behind him.  The spectacular
breakthrough is bound to herald a unique system of
governance that we hope will  revive the severely
depleting asset – ‘INTEGRITY’ – both in personal and public
lives.

Most eyes were glued on news about the ‘fight against
corruption’.  We however have continued to track the
regulatory changes and have packaged them for you.  There
seems to be a downpour in spring time.  MCA is at it
again – this time with an even greater number of notifications
and circulars that cannot be ignored.  Another highlight
is the Master FDI Circular effective 1st April, 2011.

 

To read the earlier issues and articles Click Here

Sincerely
Lex Valorem
Team

 

 

Consolidated
FDI Policy

 

The Ministry of Commerce and Industry has
released a consolidated circular on FDI w.e.f 1st April, 2011.
Changes relate to Pricing of Convertible Instruments,
Downstream Investments, Relaxation of condition of obtaining
NOC from existing Indian JV partners, Issue of shares against
non-cash considerations etc.

Ms. Jayashri Murali, Corporate
Lawyer has analysed “Non compete clause” in light of
the liberalised FDI norms related to
JVs. 

Download
Policy>
Download Press
Release
>
Read
Article>

 

DIN registration &
corrections go
online

 

DIN1
e-form (Application) & DIN4 e-form
(Corrections) become online w.e.f 27th March,
2011. No physical  filing will be accepted by the DIN
cell from the said date.

Download Notification>

 

“Dormant status” for companies defaulting
in ROC annual
filings

 

Companies
which have not filed their statutory annual
filings from 2006-07
to 2008-09 will not be allowed
to file any other e-form with Ministry unless all
such pending
documents are filed. The status of such companies would be
changed to ‘Dormant’. 

Download Press
Release>

 

PAN becomes
mandatory for DIN
holders

 

In
order to avoid duplication of DIN, MCA has made
it mandatory to furnish PAN while applying
for DIN. Existing DIN holders (Indian Nationals) who
have not submitted the PAN earlier
for allotment of DIN must do so by filing DIN 4
form by 31st of May,
2011.

 

Download
Circular >

Prosecution of
Directors

Clarifying the issue of prosecution of
Directors under certain circumstances, MCA
has defined “Officers in default” in certain cases.
Independent Directors, Nominee Directors etc are not liable for any act of omission or commission by
the Company or by any officers of
the Company in case of breach or violation of any
provision of the
Companies
Act, 1956 in some
cases.

 

 

 Download
Circular
 >

 

Companies (Particulars of Employee) Rule,
1975
amended

 

Ceiling
for disclosure of Employee Remmuneration as part of Directors
Report u/s 217(2A)
of the Companies Act, 1956
increased
from Rs. 2 lakh per month / Rs. 24 lakh per annum to Rs. 5
lakh per month / Rs. 60 lakh per annum with effect
from 31st March,
2011.

 

Download Notification>

 

Director’s
Relatives (Office or Place of Profit) Rules, 2003
amended

Section
314(1B) of the Companies Act, 1956 mandates the Company to take prior
approval of government if the compensation provided to the relative of
Director who holds place of profit in the company is more

than Rs.  50,000 per month. Now the limit has been
increased to Rs. 2,50,000 per month upto which no approval is required.
Effective date to be notified.

Download Notification>

 

Filing of Balance Sheet and Profit and Loss Account
in XBRL
taxonomy

 

MCA
has decided to mandate certain class of companies to file balance sheets
and profit and loss accounts using XBRL taxomony (eXtensible
Business Reporting Language)
from the year 2010-11 onwards. The said
Taxonomy will being hosted on www.mca.gov.in shortly. For benefits of
XBRL, read the
FAQ. 

 

Download
Circular
>

 

Certification of e-forms under
the Companies Act,1956 by  Practicing
Professionals

Members of professional bodies namely, ICAI, ICSI
& ICWAI are entrusted with the responsibility of ensuring
integrity of e-documents filed by them with MCA. While such documetns will
be system approved immediately upon filing, MCA will take
stringent action against wrong certification by the professionals.

Download Notification>

NBFCs not to be Partners in
Partnership firms

 

RBI has prohibited NBFCs from contributing capital
to any partnership firm or becoming a partner thereof. In
case of  existing partnerships,

 NBFCs may seek early retirement from the
partnership firms. The purpose is to mitigate the risk involved in NBFCs
associating themselves with partnership firms.

 

Download Circular>

New and simple version of ANF 2E form by
DGFT

 

DGFT has designed a simple version of ANF 2E
form to obtain export licence for SCOMET items.The new form has
replaced the old one from 1st of April,
2011.

 

Download
Circular
>

Relaxation of Export realisation period
continues

The period
for realisation of export of goods & software and remittance
of the proceeds thereof into India was 12 months up to 31st March,
2011. The enhanced period (6 months to 12 months) is
extended until 30th September, 2011 by
RBI.
   

 


                                                                                Download Circular >
 
Point of Taxation Rules, 2011

 

According
to the above Rules, w.e.f 1st April, 2011, service tax is payable on
raising of invoice or receipt of payment whichever is earlier.
So far service tax was payable only on receipt of payment (advance or
against invoice) from the customers.

 

Certain
services like Commercial or industrial construction
service, Internet service etc have been treated as continuous
supply of service in terms of the notification referred to below for the
purposes of POT Rules, 2011.

Download
Notification
>

Download Rules>

 

Lex Valorem
India Pvt. Ltd. #405, 7th Cross, IV Block, Koramangala,
Bangalore – 560 034
sharadasc.com Phone : +91 80 25534374 ,
+91 80 25536618 Email: [email protected]