This is the board exam results month. In India the entire family gets involved in a child’s exam preparation and the results. Sometimes it is anxiety while more often than not it is encouragement… .moral support and the assurance that ‘we are there’. I don’t know if this is right or wrong but if a family has a child in X standard or XII, for the entire year, there is this air of anxiety, expectancy, solemnness, responsibility and restraint as if a strict penance is
It is broken with a sense of déjà vu on the D day when the results are out.
Crucial decision making junctions in one’s life about which line of study to pursue. At times I feel parents take it a bit too far making decisions on behalf of the child, forcing it to take up a combination that they desired to study but couldn’t. Isn’t it time we parents allowed them to take their decisions and be accountable for ? Let us just guide them and allow them to choose and live their dreams. If not they will live our lives and never be happy. Just look at the animals and birds…… .they nurture in the initial days only until the little ones are ready to take on the world. They learn to take on the world only by falling, breaking, being attacked, bruised and bitten – never by being fondled, pampered, protected and fed beyond the nurturing years. If they can, why cant we ? Let us stop mothering our children lifelong. Let them get tough and experience the world around. Believe me, they will learn to stand tall and make us feel proud !
Perhaps the ‘Mother’s Day’ sentiments and the recent exam results motivated me to reflect and share my thoughts even as my team chose the cute birdie banner for this 128th issue of Lexspeak. A few of the important bills that were passed in the recently concluded Parliament Session are carried in this issue. Finance Bill, 2015 has been passed too but the new Service Tax rate of 14% will be effective only from a date to be announced. Until then it is 12.36%.
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Companies (Amendment) Bill, 2015 passed by both the Houses of Parliament and is now waiting for President’s assent and Gazette Notification. Some of the key highlights are:
– Companies can start up with lower capital. No minimum prescribed.
– Restriction on Inspection for some of the Board decisions filed with Registrar
– Previous losses and depreciation will need to be set off out of current year profit before declaring dividend
– Auditor to report fraud committed in the Company by its employees directly to the Central Government based on the threshold to be prescribed. Frauds below such threshold limit to be reported to Audit Committee and Board.
– Board responsible to disclose such fraud reporting in the Directors’ Report.
GST Bill (Constitution (122nd Amendment) Bill, 2014) passed by the Lok Sabha provides for a unified Goods and Services Tax (GST) structure replacing the existing multiple indirect taxes. The Central GST and the State GST will subsume a number of duties and taxes viz., Excise Duty, Service Tax, Additional Customs Duty, Education Cess, VAT, CST, Luxury Tax, Entertainment Tax etc.
Union Cabinet has approved amendments to Child Labour (Prohibition & Regulation) Amendment Bill, 2014 which enables children below 14 years to work in family business, and as artists in audio-visual entertainment industries.
The Companies (Incorporation) Rules, 2014 has been amended to facilitate quick incorporation of Companies in India. DIN, Name and Incorporation can be done in a single Integrated Form – INC 29, subject to certain riders. While the time taken for incorporation is shortened, it is important to ensure that all the forms are correctly filed since rejection would result in redoing the whole process all over again.
No need for Banker / Notary to verify the signature of Promoter in the Incorporation Form
Penalties for contravening provisions relating to One Person Company (OPC) halved.
Criteria for conversion of OPC to private limited company now reads as “paidup capital of Rs. 50 lakhs or less And average annual turnover of Rs. 2 Crore” which means conversion is possible if both the criteria are met.
DIPP has issued Consolidated FDI Policy 2015 effective from 12th May, 2015.
Promoters, Directors, KMPs, Employees and other connected persons are required to disclose their shareholding and other related details in the prescribed format and the Company needs to maintain the same. Also Listed Companies are now required to confirm to the Stock Exchanges, the formulated code of conduct and procedure for publishing Unpublished Price Sensitive Information.
CBEC has clarified on availability of CENVAT credit to a consignee when he receives goods directly from a Manufacturer or Importer on the basis of an order from a Dealer (Registered or Unregistered) in a sale in transit transaction. Cenvatable invoice issued either by the Manufacturer or Importer or the Registered Dealer, as the case may be, may be used to claim credit.
Commercial Taxes Department, GOK has prescribed the procedure to be followed by a Dealer for claiming exemption from Entry Tax on Capital Goods in respect of MSME, Large/Mega/Super Mega/Ultra Mega industries/focused manufacturing units & EOUs in non-Hyderabad Karnataka zone areas. Exemption is effective from 1st October, 2014.
SC has given its approval for NCLT to take over the fast track company law cases and corporate restructuring from Company Law Board and BIFR. However certain changes has been suggested to the original proposal to ensure that Judiciary is in the majority in the NCLT.
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.