Hi Folks
I think the new-age entrepreneurs are living every bit of Premji’s advice. While people may laugh at some of their audacious goals, they are laughing their way to the bank, given the eye-popping valuations. Nobody is complaining as long as the economy is fuelled with growth. The other audacity was AAP’s challenge to BJP in the Delhi polls and their eventual stunning victory versus
the audacity of Pakistan to dream of ‘bursting crackers’ since years on defeating the Indian cricket team at the World Cup – all of us know how foolhardy they were.
Well, audacious goals are a must to propel one to greater heights. Losing and winning is secondary. What is important is the effort that goes behind it, the planning and execution. None can beat the aero show aircrafts at this immaculate Planning, Practice and Performance. Yes, once again it is the Aero Show time in Bangalore this week and the aircrafts will be flying in their fully glory displaying grace and gallantry. It seems only yesterday that I had written about them and the ‘lone bird’ in our 76th issue and lo, Aero India, 2015 has arrived after 2 years !
When we started compiling updates for this 123rd issue, we had only a couple of them worth sharing. Over the last week a few more were added making the read worth it, hopefully. PCSs can dream audaciously and form LLPs now ! Read about this… … … and more. Should you wish to refer to any of our older issues of Lexspeak, do visit our Resource Centre at sharadasc.comWarm regards

The two mandatorily required forms for reporting Foreign Direct Investment (FDI) i.e. Advance Reporting Form (on receipt of FDI) and FCGPR (on allotment of securities) are required to be filed online on the e-biz platform of RBI w.e.f 19th Feb, 2015. The manual filing system will also continue for some more time. At last, RBI is also going the e-way, following other government departments.
Persons, firms and companies generally use Form A-1 for making payments towards imports into India where such payments exceed USD 5,000 or its equivalent. Now, the procedure of filing Form A-1 with the AD Category- I Banks has been done away with. However the banks must obtain all the details from the importers before effecting the payment.
The export of the goods from the country has to be done within the stipulated period from the date of receipt of advance payment. In view of the increased instances of export advances not being adjusted against export shipments, RBI has directed that the AD Category – I Banks (Authorised Dealers) review the export performance periodically and submit a quarterly statement of the doubtful cases within 21 days from end of the quarter.
The investment in government securities by registered FPI’s shall be required to be made in government Bonds with a minimum residual maturity of 3 years. In terms of Reserve Bank of India (RBI) regulation all future investment by FPI’S in the corporate Bonds must be with a minimum residual maturity of 3 years.

FPI’s are not allowed to invest in liquid and money market mutual fund schemes. However, they can sell the currently held securities to domestic investors.

Where interest, technical fees or royalty has been paid to a non-resident or foreign company without deducting the withholding tax i.e. TDS (Tax deducted at source), Central Board of Direct Taxes (CBDT) has clarified that the portion of remittance chargeable to tax will be disallowed as ‘other sum chargeable’ u/s 40(a)(i) of the Income Tax Act, 1961, in the computation of income under the head “Profits or gains from business or profession”

Ministry of Corporate Affairs (MCA) has constituted a 5 member High Level Committee for improved monitoring of the implementation of Corporate Social Responsibility (CSR) policies by Companies under Section 135 of the Companies Act, 2013.

Terms of reference include recommending suitable methodologies for systematic monitoring of compliance and evaluation of the CSR initiatives of Companies.

A company has to fulfill both paid-up capital and turnover criteria now to qualify itself as ‘Small Company’. Till now any company having paid-up share capital of Rs.50 lakhs or turnover of Rs.2 crore was treated as Small Company.

Ministry has made this change to remove the difficulty faced by banking, insurance and housing finance companies for making acquisition of securities in their ordinary course of business under Section 186 (11)(b) of the Companies Act, 2013.

The Council of the Institute of Company Secretaries of India (ICSI) at its meeting held on 18th January, 2015 at New Delhi has approved formation of LLPs (Limited Liability Partnerships) by PCSs (Practicing Company Secretaries). General permission has been granted to a PCS to become the active partner of an LLP where the objects include carrying out attestation services and passive partner of LLP which is engaged in any other business or occupation.

This widens the scope of practice for a PCS and enables fostering new partnerships for consolidation.

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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