100 issues of Lexspeak, fortnight after fortnight over the last 51 months is a milestone in our journey. It has helped us reaffirm that it is not the end but just another benchmark for us to breach. It has helped us reaffirm that it pays, sharing knowledge consistently, with or without tangible results.
A few issues back, I had talked of my 97 year old uncle who has written a
research article on uranium mining in India at that ripe age. The boundless energy he has, has propelled him to trace his mother’s side family tree now. These days he is excited as he is in touch with many of his relations across the globe over the phone and internet. To stay young he says you must be engaged in something worthwhile and keep innovating. Lexspeak is relatively young at 100 when compared to him, but in this issue we have also attempted to do something different and fresh. Click here to see the video that traces the genesis of Lexspeak and the team behind it. The concepts have changed within the newsletter, people have changed, content is of course dynamic and current and the editorial is evolving by the day. However I believe what remains constant is the spirit of consistency, authenticity and innovation. I take this opportunity to thank all of you for your support and patronization.
What activities constitute CSR under the new Companies Act, 2013 have been notified and made effective from 1st April, 2014. Do scroll down to read the notification and other updates from RBI and Service Tax.
All the previous 99 issues of Lexspeak have some interesting tidbits to offer. Should you wish to refer to any older issues of Lexspeak, do visit our Resource Centre on sharadasc.com.
MCA has notified Section 135 of the Companies Act, 2014 w.r.t. Corporate Social Responsibility and related Rules effective from 1st April, 2014. It has also widened the list of CSR activities by amending Schedule VII of the said Act.
Effective from April, 2014, Part E of ECB-2 Return has been modified by RBI to capture details of the financial hedges contracted by corporates, foreign exchange earnings and expenditure. Reporting procedures remain unchanged.
Only government companies in which Central / State government has stake, can use the word “National” in their name.
NOC shall be obtained from the RBI for using the word “Bank” and from the SEBI for using the word “Stock Exchange / Exchange”.
Section 185 of the Companies Act, 2013 prohibits provision of guarantee / security by a holding company w.r.t. any loan taken by its subsidiary except in ordinary course of business. In order to maintain harmony w.r.t. applicability of Section 372A of the Companies Act, 1956 (which exempts giving of said guarantee), the above restriction has been removed till the notification of Section 186 of the Companies Act, 2013 which deals with Loan & Investment by a Company.
To provide continuity in policy environment, the existing Foreign Trade Policy 2009-14 and Hand Book Procedure Vol. I 2009-14 is being extended beyond 31st March, 2014 until further orders.
EPCG Authorisation holder may get additional time of 3 years for fulfillment of Export Obligation, if such holder receives relief under Corporate Debt Restructuring Mechanism.
MFinance Ministry has expanded the mega exemption notification by adding the following services:
Services provided by cord blood banks by way of preservation of stem cells / any other service in relation to such preservation.
Services by way of loading, unloading, packing, storage or warehousing of rice.
As part of the Interim Budget 2014-15, it has been clarified that “Food Produce” includes “Rice” for the purposes of exemption from Service Tax on transportation of rice, by goods transport agency and on Milling of paddy into rice.
Restriction on FDI in MSME sector has been relaxed.
Subject to the sectoral caps, Micro & Small Enterprises (MSE) can issue shares & convertible debentures to non-residents under the Automatic Route as against hitherto 24% limit.
An Industrial Undertaking, not being a MSE, and manufacturing items reserved for MSE sector (with an Industrial License) may issue shares & convertible debentures to non-residents in excess of 24% with prior approval of FIPB.
Prohibited items under Chapter 7 & 15 can now be exported under the Advance Authorisation subject to rigorous conditions.
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.