lexspeak
Hi Folks
“Wat’s in a name? that which we call a rose by any other name would smell as sweet”….So said the Bard of Avon but the Babus (Government Officials) at MCA think otherwise ! …………our July, 2011 issue carried this in the light of new name availability guidelines issued by the Government then. Now it is all about numbers.
Now it is all about numbers. A number is a number is a number………….not for the MCA which is coming down heavily on individuals having multiple DINs i.e. Directors Identification Numbers. While ‘who am I’ is a seemingly simple yet philosophically complex question that man is yet to figure out since eons, MCA likes to identify an individual in the Director position with a unique allotted number. This is yet another number to add to one’s misery of PAN number, TAN number, Aadhaar card number not to talk of the credit card and debit card numbers, passwords et al …………what a pain for the numerically challenged ! In the early days of DIN allotment, thanks to its technology glitches and goof-ups, MCA allotted more than one DIN to people that applied when it could have blocked a 2nd DIN at the source itself. No, they didn’t do that. After allowing more than one so-called unique number, they are now on a show-cause-notice-issuing spree demanding that the individuals file e-forms to cancel the additional numbers. What stumps me is that they expect the company to file the form. What if an individual is not on any board now ? Added to this is the compounding threat for a so-called ‘offence’ of possessing multiple DINs. Couldn’t MCA itself cancel all the inoperative DINs and save lakhs of notices and time spent by directors and professionals in a mundane activity as this ? Agreed that there are unscrupulous directors and fraudsters but why paint all with the same brush ?
Another challenge I would like to highlight is the complete unpreparedness of the MCA in implementing the Companies Act, 2013 even after its 1st anniversary. Several forms have not yet been notified or usable though the due dates have come and gone. No one in the Ministry seems to have any answer. We continue to grapple with these gaping holes in addition to negotiating our way through the confusing and contradicting provisions of the Act much like our maneuvering on the cracked up city roads ! To add to all this, ICSI has added more road-humps in the name of governance by way of Secretarial Standards on Board and Shareholder meetings……….for start-ups and small 2 member companies, compliance is going to be an arduous task. Requires a change of mind-set and approach.
Amidst all this is a ray of hope with the cabinet okaying certain amendments to Companies Act that promises the illusory ‘ease of doing business’. It is the small little irritants that bother more day in and day out rather than the big hurdles. They must be removed at the earliest.
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Warm regards

ICSI has notified the Secretarial Standards (SS) duly approved by the Central Govt., which shall come into force from 1st July, 2015. Section 118(10) of the Companies Act, 2013 mandates all companies except One Person Companies (OPCs) to observe Secretarial Standards with respect to General and Board Meetings as issued by the ICSI.

Companies need to take note of the SS and conduct meetings accordingly.

In February, 2015 RBI had advised all Authorised Dealers for enabling of reporting of Advanced Remittance Form and FCGPR Form under the FDI scheme on the e-Biz platform of the Government of India. Now RBI has finalized the financial aspects for using the Virtual Private Network (VPN) accounts obtained from National Informatics Centre (NIC) for accessing the e-Biz portal. Accordingly, all AD- banks need to use ‘Virtual Private Network’ for accessing e-Biz portal for reporting under FDI scheme.

RBI has allowed banks to offer differential interest rates, based on whether their term deposits are with or without a premature withdrawal facility. Banks can pay more interest to individuals on deposits above Rs. 15 lakh without premature withdrawal.
DIPP has increased the Foreign Direct Investment (FDI) limit in pension sector from 26% to 49% – up to 26% under automatic route and from 26% to 49% with Government approval and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR.
The Income Tax Department has released the ITR (Income Tax Return) forms for Financial Year 2014-2015 for different categories of taxpayers. The new ITR forms 1 and 2 require an assessee to furnish the no. of bank accounts held by the individual, at any time during the previous year, number of foreign visits made and several such personal details.

Owing to public outcry on the enormous details required to be disclosed it is likely that ITR will be revised once again.

As per Karnataka Stamp (Amendment) Act, 2015, Karnataka Govt. doubled the rate of Stamp Duty on increase of authorised capital of company/ contribution of LLP w.e.f. 1st April, 2015.
 Article 10 – Article of Association
As per Karnataka Stamp (Amendment) Act, 2015, Karnataka Govt. doubled the rate of Stamp Duty on increase of authorised capital of company/ contribution of LLP w.e.f. 1st April, 2015.
 Articles 40A – On LLP agreements
(1) Constitution/ conversion of firm/pvt. co, /public co. into LLP

– Capital of LLP upto Rs.10 lakh Stamp duty Rs.1,000 & Capital of LLP above Rs.10lakhs, stamp duty Rs.1000 + Rs.500 for every Rs.5 lakh capital of LLP.

(2) Reconstructions/ Amalgamation etc of LLP – Stamp duty – 2% of consideration or market value of property situated at Karnataka.

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