Shakespeare may have stated that it is in ourselves to hold our destiny but you think the victims of the unprecedented floods in J&K will agree to this ? Was it possible for them to prevent this calamity ? Was it possible to see it coming ? Was it possible to safeguard themselves from this? The answer is NO and YES. No because it was an ‘act of God’, a natural disaster. Yes because many
of these so-called natural catastrophes are in reality man-made or at least man-triggered. Lack of respect to the biodiversity, continuous ravaging of the eco-system, greed over need in the name of development.
Come to think of it, the excessive regulations imposed on businesses in the name of transparency, assessment, public information, accountability can be traced back to blatant violations by a few, the high and mighty, finding loopholes, defrauding, mismanagement, willful defaults, tax evasion etc. For the sins of a few several compliant corporate citizens are paying the price in terms of draconian laws. We seem to be paying the price for callousness in the past and ‘we-can-manage-attitude’. If the ecosystem is destroyed, business stability and sustainability is bound to be impacted. Therefore the need of the hour is good governance and maximum governance.
Compliance is just one part of governance but Lexspeak’s humble effort is to just help create awareness about the latest regulatory requirements. As always, the important changes during the last fortnight are carried in this issue.Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.Warm regards
Part C of Schedule II i.e. depreciation schedule provides for useful life for various assets. The amendment provides that the residual value of an asset does not exceed 5% of the original cost. This is applicable to all types of companies.
The provision regarding appointment of auditors by Comptroller and Auditor General (CAG) which was hitherto applicable for Govt. Companies is now applicable for Govt. owned/controlled Companies also. CAG will appoint the auditor and provide directions for the audit.
Cost incurred during extended period of commercial production which does not increase the value of the fixed asset cannot be capitalized. This is true for both Cost Plus projects and Power projects. AS-10 & AS-16 also have been further clarified.
As per amendment, administrative overheads incurred for capacity building in Corporate Social Responsibility (CSR) by corporates also to be treated as CSR expenditure. However it shall not exceed 5% of total CSR expenditure of the company in one Financial Year.
100% FDI through the ‘automatic’ route in nearly all segments of railway infrastructure is now permitted. This covers construction, operation, maintenance of suburban corridor projects, high speed train projects, railway electrification, passenger terminals etc. Accordingly some amendments are made in “Consolidated FDI Policy Circular of 2014”.
The Reserve Bank of India (RBI) has fixed the upper age limit for CEOs, MDs and other Whole Time Directors (WTD) in private bank at 70 years, in line with the Companies Act, 2013. Individual bank can fix lower age limit.
U/s 80G of Income Tax Act, 1961, all donations towards Prime Minister’s National relief Fund (PMNRF) are eligible for 100% deduction from taxable income.
Under Employees Provident Funds (Amendment) Scheme, 2014 EPF limit increased from Rs. 6,500 to Rs. 15,000 w.e.f. 1st September, 2014. Minimum pension of Rs. 1,000 per month has also been approved.
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.