lexspeak
Hi Folks
The saga of MCA notifications continues unabated…………….just as we sat back carrying the 1st Amendment Act to the 2013 Companies Act, exemptions to private limited companies, not-for-profit companies and government companies have been issued relaxing several provisions that were hindering smooth business. It is yet to be gazetted to become effective. We can expect more to follow what with the clamour for roll back / exemptions / exceptions /
complete overhaul of the Companies Act,

2013 leading to formation of a Suggestions Committee by the Government.
Looks like everything is ‘broke’. So they have no option but to ‘fix it’ or ‘fit it’ to align with the ‘Make in India’, ‘Minimum Government, Maximum Governance’ or ‘Ease of Doing Business’ mantras ! This being the case, what is the way to relax, rejuvenate and refresh ? Yoga which is supposed to align the body, mind and soul ? Workouts to burn the excess fat and build stamina ? Long distance running which is the current corporate fad ? Organic farming that connects to the roots ? What about mall-shopping @ the ‘happiness sale’ or e-shopping to satiate the urges of a shopaholic ?
You can take your pick and do your thing including the various yogic postures on June 21st, the International Yoga Day. We will continue with our fortnightly issues of Lexspeak as we touch the 130th issue in this 6th year of e-publication. Should you wish to refer to any of our older issues of Lexspeak, do visit our Resource Centre at sharadasc.com.

Warm regards
After the Companies (Amendment) Act, 2015, now MCA has issued notifications exempting Private Companies, Not for Profit Companies and Govt. Companies from certain specified provisions of the Companies Act, 2013.

For Private Limited Companies

  1. Related Party Transactions between Holding, Subsidiary and Associates Companies do not require compliance u/s 188, which means restrictions are applicable to other categories of Related Parties such as Partnership Firms, relatives and other companies in which directors are interested.
  2. Time limits for offer period under Rights issue u/s 62(1)(a) & 62(2) can be reduced if Shareholder’s agree.
  3. Private Companies permitted to accept deposits from members without following certain procedures related to acceptance of deposits if the amount does not exceed paid–up capital and free reserves.
  4. No need to file e–form MGT–14 for Board Resolutions u/s 179 which means such decisions will not be available for public inspection.
  5. Articles may override the provisions w.r.t. content & length of notice, explanatory statement, Quorum, Chairman, Proxies and Voting rights.
  6. Ceiling of 20 companies for audit includes public limited companies and private companies having paid–up capital of Rs. 100 crore or more. Earlier all private companies are included in this limit.

For Section 8 Companies

  1. The Notice for general meeting and financial statements may be circulated with 14 days instead of 21 days notice.
  2. Allowed to hold 2 board meetings instead of 4 meetings in a year.
  3. Restriction on number of directorships and disqualification of directors have been exempted.
  4. The audit committees of these companies need not have Independent Directors

For Govt. Companies

  1. Exempted from the limits pertaining to managerial remuneration.
  2. Modification in the provisions relating to loan to directors, loan and investments by companies, related party transaction and place of holding general meeting.

Wait until the above notifications are gazetted ! will be effective only after that.
Due to non–availability of the revised e forms in MCA, filing period of Form CRA-2 for appointment of Cost Auditor (FY 2015–16) and Form CRA–4 for filing of cost audit report (FY 2014–15) has been extended.

Revised Form CRA–2 and CRA–4 is now available on MCA portal.
Due date for filing return of income for the FY 2015–16 has been extended from 31st July, 2015 to 31st August, 2015 for assesses other than companies, partnership firms and whose accounts required to be audited.
RBI has increased the limit of remittances by resident individuals under the LRS (Liberalised Remittance Scheme) from USD 125,000 to USD 250,000 for capital or current account transactions in a financial year. Some of the permitted transactions are opening of foreign currency account abroad with a bank, purchase of property, making investments abroad, setting up wholly owned subsidiaries/Joint Ventures abroad etc. It also specified remittance facilities for persons other than individuals.
Scheme of raising External Commercial Borrowings (ECB) for low cost affordable housing projects and working capital for Civil Aviation Sector will continue till 31st March, 2016 with same terms and conditions.
RBI has allowed Non-Resident Indians (NRIs) to invest in chit funds on non-repatriation basis without any limit. Earlier it was prohibited.
Service tax on Restaurants, Eating joints or Mess, having the facility of Air-conditioning or Central Air-heating in any part of the establishment will be 5.6% as against 4.9% of the total bill i.e. 14% on 40% of the value of service (abatement value).
DGFT has announced certain changes in the FTP 2015-20 with retrospective effect i.e. from 1st April, 2015 onwards.

  • Mandatory export & import document includes Lorry Receipt / Railway Receipt /Postal Receipt.
  • All applications to DGFT shall be made online. Processing and communication by DGFT is also online. However in certain cases, manual mode is permitted up to 30th September, 2015.
  • Entitlement of Status Holders to export freely exportable items on free of cost basis has been limited to Rs. 10 lakh or 2% of average annual export realisation during last 3 years export.
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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