If the economy at the stratospheric level is fogged by thick layers of abused power, corruption and mis-governance, at ground zero it ain’t better, thanks to the ill-prepared and indecisive regulators. “Indecision is the key to flexibility”but regulators can ill-afford such flexibility that smacks of procrastination and inconsistency. What else can we say to find constant changes in the various returns and forms to be filed with the Government even
after the due date (set by them!) has passed leading to extension after extension (MCA) and even change in the filing period (service tax) ! Businesses need stability, consistency, transparency and finality in regulations that are growth-conducive.
Well, that is what we think but not a die-hard entrepreneur whose business sprouts despite the Government. As someone said “…A true entrepreneur is the one who creates wealth where it did not exist earlier by creating a new market and a new customer. They create something new, something different, they change and transmute values; and, on size and scale that will impact society.” This is more than evident in a city like Bangalore where entrepreneurship is in the air just like the heady aromas of the multi-cuisines wafting through the city. From home-makers to professionals to students to retired officials to movie stars to sports icons to even foreigners who come for a specific purpose and period to the city are dreaming, planning and executing ‘something of their own’ !
Lexspeak salutes this spirit which keeps hope eternal and the economy buoyant.
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Lex Valorem Team

  • In case of Company holding AGM on or before 20.09.2012 the time limit will be upto 3rd November, 2012 or within 30 days from the date of AGM, whichever is later.
  • In case of Company holding AGM on or after 21.09.2012 the time limit will be upto 22nd November, 2012 or within 30 days from the date of AGM, whichever is later.
Form 23AC and 23ACA have been modified to reflect the debt due by Directors instead of debt due to Directors. This removes the existing normally.
Due date for filing e-form 23B by Statutory Auditors without additional fee extended upto 23rd December, 2012 or within 30days from the date of AGM held whichever is later.
The Notification clarifies that in terms of sec 166 of the Companies Act, 1956, a Government Company can convene the AGM either at the Registered Office of the Company or some other place within the city, town or village in which registered office is situated or such other place as approved by the Central Government.
Indian Depository Rules (IDR) have been amended to provide for disposal of IDRs by way of transfer, redemption or conversion of underlying equity shares, subject to applicable provisions under the Foreign Exchange Management Act (FEMA) and Securities & Exchange Board of India Act (SEBI Act).
NBFCs having a foreign investment between 75% and 100% can set up step down subsidiaries as against the earlier requirement of foreign investment limit of 100%, subject to other conditions being the same.
Instead of filing service tax return in ST-3 for the 6 months period from April to September, 2012, it is required to be filed for the 3 month period from April to June, 2012. However the filing due date stays as 25th October, 2012. Government must be still figuring out how to restructure the ST-3 in line with the new Service Tax Rules effective July, 2012!

Income Tax Department has issued a comprehensive and consolidated circular on TDS on Salaries with working examples making it a “law and practice” guide. A very useful, “must-read save” circular that carries TDS provisions for the FY 2012-13.
What is e-commerce is still a grey area as far as FDI is concerned. It appears teleshopping, mail order and other non-store format sales would be treated as B2C sales and hence FDI in entities engaged in such activities is not permitted.
In our series on Accounting Standards, our associate Ms. Ketoki Basu, CA explains AS6 related to Depreciation Accounting.
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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