“We are responsible for what we are; and whatever we wish ourselves to be, we have the power to make ourselves.” – Swami Vivekananda. Salutations to the great soul on his 150th birth anniversary, for awakening the power within and inspiring us to believe in ourselves. It is the combination of the individual as well as the collective power that enables a society to transform from ‘be’ to ‘become’ !The whole of 2012 saw many events in the
technological, political, financial, economic and social arenas that heralded a paradigm shift in the way our lives will be shaped in future.
As for corporate India, 2013 promises a new Companies Act replacing the more than 6 decades old Companies Act, 1956 that has shaped the rise and fall of several businesses. The Bill which was cleared by the lower House of the Indian Parliament is awaiting approval from the Upper House. There are substantial changes in the Act on several fronts but to begin with it is important to familiarize ourselves with the definitions, some of which are introduced for the first time like One man Company, Key Managerial Personnel, Associate Company, Experts, Fraud etc. Beginning this issue, we will carry some of these definitions in a separate feature replacing Law Lexicon.
Regulatory updates from other ministries of the Government of India are part of Lexspeak, as always.
To read the earlier issues and articles of Lexspeak Click Here
Lex Valorem Team
The due date for filing Balance Sheet and Profit and Loss Account in Extensible Business Reporting Language (XBRL) mode is extended without any additional fee upto 15th February, 2013 or within 30 days from the due date of AGM of the Company whichever is later.
MCA has started de-activating the DIN of Directors, who have not furnished their PAN number by filing DIN 4 by the due date i.e. 30th April, 2012. If you thought, Government’s due dates hold no sanctity, you will be in for a surprise. MCA has started sending DIN de-activation letters to Directors for non-filing of PAN number. It doesn’t stop with that. The companies in which they are Directors are also affected – e-filing of all returns, forms, declaration etc. is blocked.
Don’t let a 10 digit alpha-numeric number hamper your business of crores !!
In a bid to incentivize manufacturer exporters to achieve higher exports, DGFT has introduced an Incremental Export Incentivisation Scheme under chapter 3 of the Foreign Trade Policy (FTP) that entitles exporters achieving incremental exports during Jan-March, 2013 (over Jan-March, 2012) with a 2% duty credit scrip (of the incremental exports) that can be used or transferred. Among other conditions, certain exports are excluded and exports to only USA, Asia & Europe are eligible.
Application for this incentive scrip is to be made in ANF3F (to be notified) in April, 2013 since the benefit is available only after incremental export realization.
Issue of insurance premium reminder letters / notices by Insurance companies does not amount to issue of invoice. Hence under the Point of Taxation Rules, 2011 it does not attract service tax. However issue of invoice attracts service tax under the said Rules.
No tax deduction at source (TDS) needs to be made by a person for the payments made by him to Scheduled Banks (except foreign banks) in respect of bank guarantee commission, cash management service charges, underwriting service charges, depository charges etc. This is effective from 1st January, 2013.
Accounting for Fixed Assets – Accounting Standard 10 (AS-10)
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.