Hi Folks
Greetings from the 64th issue of Lexspeak on the occasion of 65th Indian Independence Day !
As a nation, we celebrated 65 years of Independence on 15th August, 2012. From patriotic euphoria in the initial years to socialistic curbs in the ’70s and ’80s to the welcome reforms in the ’90s to the current despondency stemming from the widening gap between plentitude and penury – India and her people have seen it all. Some in entirety while some in parts. Earlier we fought external foes but today we are fighting internal ‘friends’ in the form of crippling corruption, increasing intolerance, stifling bureaucracy, incoherent regulations, inexplicable prejudices, intellectual dishonesty et al though we are living in the ‘post reform’ era where we seemingly enjoy better freedom of thought, expression and action. Can we bequeath a better future to our coming generations ? A future that befriends the legacy we have inherited – in Mark Twain’s words
“India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition.”
Let us dream big, aspire high and work with complete integrity to preserve such an India for posterity.
To read the earlier issues and articles –Click Here

Lex Valorem Team

Notification No.30/2012-Service Tax, dated the 20th June, 2012 has been amended with the following implication:
  • Service tax to be paid by the receiver of services in case of services provided or agreed to be provided by a director of a company to the said company.
  • 25% service tax to be paid by the security services provider and the balance 75% to be paid by the receiver of services.
Approval of the Central Government is not required if the remuneration of Non-Whole Time Director(s) exceeds the ceiling limit of 1% or 3% of profit as applicable, solely on account of payment of service tax by the company. This provides relief to companies who are liable to pay service tax on commission / sitting fee payable to directors for services rendered.
Companies which have filed multiple Form 5 INV while uploading the information about unpaid and unclaimed amounts of the company for the year 2010-11 need to file a single form and upload the details before 31st August, 2012.
Companies who are required to file their Balance Sheet and Profit and Loss Account under Non XBRL as per Revised VI schedule can file without penalty/additional fee up to 15th September, 2012 or within 30 days from the date of AGM whichever is later.
All Companies shall use the Product and Activity Groups as mentioned in this notification and aligned with the Central Excise Tariff Act for filing of Cost Audit Report and Compliance Report.

Delay in filing application with the Central Government for appointment of Cost Auditor under section 233 (B) of the Companies Act, 1956 attracts additional fees as notified.
Listed companies are required to file additional information vide Form A (Unqualified/Matter of Emphasis Report ) and Form B (Qualified/Subject To/Except For Audit Report) along with the Annual Reports. The circular also details the procedure stock exchanges would adopt to process the audit report.
RBI has issued certain modifications in the Directions issued on 2nd December, 2011 for Non-Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs).
All Core Banking Solutions (CBS) enabled Banks are advised to issue only “payable at par” /”multi-city” CTS 2010 Standard cheques to all eligible customers without any extra charges.
RBI has specified minimum common facilities to be provided by Banks as part of ‘Basic Savings Bank Deposit Account’ which is normally referred to as ‘no-frills’ account which includes no requirement of minimum balance, ATM facility, Debit and Credit card facility at no extra charges.
RBI has clarified that once an entity files a suo moto application for compounding of contraventions the same will not be considered as ‘technical’ or ‘minor’ in nature. Certain other clarifications regarding technical contravention have also been covered.
Non-resident Agents and private discretionary trusts whose total income exceeds Rs.10 lakhs are not mandated to e-file Income Tax returns for the assessment year 2012-13.
This article briefly explains about the Contingencies and Events after Balance Sheet Date (Accounting Standard – 4)
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. Lex Valorem disclaims all liability on action taken without professional advice.

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