Hi Folks
‘Kar Lo Duniya mutthi mein’ (get the world in your fist) was a slogan coined by a leading Indian Telecom company in the last decade when they launched mobile services and vowed to empower every Indian with connectivity. From ‘around the world in 80 days’ to anywhere in the world in less than 80 seconds, technology has brought the world to our fingertips. From the comfort of your home you can access different places across the world but unless you
set foot you cannot experience a place, its culture, its people, its language, its cuisine, its weather, its history, its geography etc. Experience, travel – these are as education in themselves. Therefore while technology can ease travel, it cannot replace it. As Burton Homes said “To travel is to possess the world”. Why this prelude to travel? Because 30th September was World Tourism Day
As for tax professionals and corporates here in India, September is a busy time with tax returns filing, tax payments, accounts finalization, audit annual general meetings etc. To top it, this season we have had a deluge of notifications enforcing parts of the new Companies Act as also draft Rules to review. Needless to say we are facing piquant situations trying to figure out if a provision is applicable from the old Act or the new one, always hoping the new one is not yet effective.
In this 90th issue of Lexspeak my team continues to take you on a journey through various legislative changes covering Companies Act, FEMA, IT Act, Service Tax, Foreign Trade Policy etc. Of course, it is a journey and not a ride ☺
Should you wish to refer to any older issues of Lexspeak, do visit our Resource Centre on  sharadasc.com

Warm regards
Lex Valorem Team


Draft Rules

– The draft Rules for 9 chapters of the Act (prospectus and allotment of securities, share capital, managerial remuneration, mediation etc.) is made available for public comments in 2nd phase. The last date of receiving comments 19th Oct, 2013

– The Secretarial Standards Board of The Institute of Company Secretaries of India (ICSI) has issued draft Secretarial Standards (SS) on General and Board meeting for public feedback and suggestions upto 30th Oct, 2013. SS are mandatory now.

Clarifications by MCA

– The relevant provisions of the Companies Act, 1956 corresponding to the provisions of 98 sections of the Companies Act, 2013 shall cease to have effect from 12th Sep, 2013.

– The ROC shall register all the MOA and AOA received till 11th Sep, 2013 as per “Private Company” definition under the Companies Act, 1956 and not Companies Act, 2013
– Companies which have issued notice of general meetings on or after 12th Sep, 2013 shall comply with all the provisions issued under Companies Act, 2013
– Accounting standards notified under Companies Act, 1956 shall continue to apply until new standards are prescribed by the Central Government.
In line with definition under Companies Act, 2013 the word ‘control’ has been revised under FEMA to include the right to control the management or policy decisions through specific agreements.
RBI has issued common revised forms i.e. “Export Declaration Form” for declaration of export of goods and “SOFTEX Form” for declaration of export of software (both single and bulk) from non-EDI (Electronic Data Interchange) ports. SDF form continues for EDI port exports.

Allotment of SOFTEX form number by RBI made completely online effective from 1st Oct, 2013.

Effecting payment by any person resident in India on behalf of customers towards overseas foreign exchange trading through internet / online portals or credit cards is in violation of FEMA and are liable for consequences. Banks are directed to close such account / credit cards or else face action from RBI.
IEC number allotted to an applicant is valid for all its branches / divisions / units / Factories however, it cannot be used by anyother importer / exporter. If misused the DGFT shall immediately cancel IEC and impose penalty.
Safe Harbour Rules under Transfer Pricing have been notified vide Income Tax (16th Amendment) Rules, 2013 covering various definitions, eligible assesse, eligible international transactions and procedure for opting for safe harbor. Rules will take effect only upon notification in the official gazette.
General Anti-Avoidance Rules which shall be effective from 1st April, 2016 have been notified vide Income Tax (17th Amendment) Rules, 2013.
Benefit claim for Incremental Export Incentivisation Scheme (IEIS) for the last quarter of 2012-13 will be limited to 25% incremental growth or Rs.10 crores in value whichever is less.
Double Taxation Avoidance Agreement (DTAA) between India and Australia has been amended covering articles relating to national, contracting state, non-discrimination, collection of information and taxes.
It is clarified that Service tax exemption is available for “auxiliary educational services” like transport, canteen, hostels, housekeeping, security services etc.
Guidelines for arrest and bail for evasion of service tax has been issued under the Finance Act, 1994.
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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