Hi Folks
Recently an associate of mine and I were listing down the number of registrations, permissions and licences a manufacturing unit has to obtain while setting up business in India. It was well beyond the half-century mark given the number of ministries, departments and government agencies involved both at the Centre and State.If the Company is a foreign entity
entering India, compliances are even more. This does not augur well for the country when the PM is giving a “Come, make in India” call. Of course yesterday’s announcement to cut the labour act forms from 16 to 1 and relax the inspection raj is welcome.
In addition to this, isn’t it time something is done for not only ‘Swach Bharath’ in terms of garbage cleaning but also ‘Swach Vyapar’ or ‘Clean Business’? Corruption is the biggest polluter and unless transactions are clean, doing business in India will not be attractive. Many of you must have received a message from the Health Minister on the eve of ‘Global Handwashing Day’ yesterday to wash and keep our hands clean. Can ‘Swach Business’ also be made part of the ‘Swach Bharath Mission’? We can argue that cleanliness starts from us but I am of the opinion Government also has an important role to play in this. E-transactions, e-filing, e-approvals are the order of the day but not without endless follow ups, explanations, clarifications and the attendant ‘speed money’. This is an open truth which we may not like to acknowledge in public. And this is only one part of the pollution………….Swachtha or cleanliness in all forms must be promoted.
The 115th issue of Lexspeak contains several clarifications issued by MCA recently. Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.Warm regards

Ministry of Corporate Affairs (MCA) has clarified that the provisions of consolidated financial statement in CA 2013 would not be applicable for an intermediate wholly owned subsidiary and also Companies which do not have any subsidiaries but have joint ventures or both for the current financial year ending March 31, 2015.
    • Time extended
      The due date for filing of annual returns and accounts under CLSS-2014 has been extended from 15th October, 2014 to 15th November, 2014.


  • Disqualification of Directors
    In case of Companies, who have filed their annual returns and accounts on or after 1st April, 2014 but prior to launch of CLSS, 2014 disqualification of Directors shall be prospective and not for past defaults.
It is mandatory for auditors to provide information about a company’s internal financial controls system and their operating effectiveness in the audit report w.e.f. next financial year 2015 – 2016. For FY 2014 – 15, it is optional.
A trustee representing “Real Estate Investment Trust” (REIT) or “Infrastructure Investment Trust” (InvITs) or other trusts can become a partner in an LLP so long as it is a body corporate.
Board of directors of section 8 Company is to decide about whether the deposit made by or on behalf of a person (non – retiring director) failing to secure more than 25% of valid votes for Directorship is to be forfeited or refunded.

Central Board of Excise and Customs (CBEC) has clarified that the Central Excise officers shall continue to conduct Excise Audit as per the rules. Delhi High Court, in case of M/s. Travelite (India), has quashed the rule only w.r.t. Service Tax Audit and not Excise Audit.
Effective from 1st November, 2014, free ATM transactions at other bank ATMs located in 6 metros i.e. Mumbai, New Delhi, Chennai, Kolkata, Bangalore, Hyderabad, have been reduced to THREE while overall cap of FIVE transactions remain unchanged.
Software Companies in SEZ area can re – deploy up to 50% of technical manpower in a new SEZ unit without losing the Sec. 10A/10AA benefits under IT Act, 1961. Earlier this was limited to transfer of 20% of technical manpower.
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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