Hi Folks
In the last issue, I vented out my ire against Infosys and MCA for the inefficient functioning of the premier portal of India, being used by all corporates and professionals. This time let me talk of a great human being who could have kept venting out her ire against God and the entire humanity for the state she is in – she is wheel-chair bound and has undergone not less than 36 surgeries in her life so far. Instead of doing that, she has not only stood on her own but is also providing shelter and empowerment to similar specially abled boys through her
‘Mathru Foundation’. I have written about this exemplary woman in the 112th issue of Lexspeak and feel privileged to be writing about her initiatives again.
From a small facility provided by HAL on the Old Airport Road to the Foundation’s own 3-storeyed disabled-friendly home and training school on the outskirts of Bangalore, the journey has been long and arduous – the building is entirely made out of donations. A couple of weeks ago, the Hon’ble Governor of Karnataka inaugurated this facility called ‘Mathru Pragati’ where Dr. Malathi Holla declared “I WANT TO BE A MOTHER TO 100 CHILDREN”. Mind you, these are 100 Divyaangs or specially-abled children she wants to mother and shelter. Salutations to this great Mother on the occasion of Mothers’ Day (May 8th)!! You can contribute to her cause through www.mathrufoundations.org.
As for the travails of e-filing and digital India, along with MCA, the Service Tax website also seems to be suffering ‘technical glitches’ and errors. The return filing date has been moved from 25th to 29th April since assesses are experiencing difficulties in uploading the returns successfully. This is no doubt adding to the unbearable heat this summer.
This 147th issue carries quite a few updates from RBI. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
Warm regards

MCA has clarified that the amended Accounting Standards should be used for preparation of accounts for accounting periods commencing on or after the date of notification i.e. 30.03.2016.
A person resident outside India who intends to nominate himself as a director in an Indian company is required to place a deposit with the said company in accordance with section 160 of the Companies Act, 2013. RBI has clarified that such deposit is a current account (payment) transaction and, as such, does not require any approval from RBI.

It may be noted that this deposit requirement is applicable only to Public Limited & Section 8 Companies. Private Limited Companies are exempt. This is a welcome relief for foreign directors on the Board of Indian Companies.

Overseas Direct Investment (ODI) Forms has been rationalised and revised by RBI. A new reporting format has been introduced for Venture Capital Fund (VCF) / Alternate Investment Fund (AIF), Portfolio Investment and Overseas Investment by Mutual Funds. Report of purchase and repurchase of EOSPs (Employee Stock Ownership Plans) shall use the existing format. Further, online ODI application has been revamped to reduce the traditional paper based filing system.
  • RBI has issued Directions on issue and pricing of shares by Private Sector Banks, both listed and unlisted which can issue shares through all the routes i.e. public issue, private placement, rights issue, bonus issue subject to certain conditions. Compliance with Companies Act, FEMA, Foreign Investment Policy for private sector banks and SEBI guidelines are to be ensured.
  • RBI has issued Directions for amalgamation of 2 banking companies and amalgamation of an NBFC with a banking company applicable to private sector banks detailing the procedure to be followed. In both the cases, the voluntary amalgamation will become effective after RBI’s approval. As per the Direction, the decision of amalgamation should be approved by respective boards by 2/3rd majority and not just by members present and voting. Also the draft scheme of amalgamation should have approval of shareholders of each banking company by a resolution passed by a majority representing 2/3rd of the shareholders.

Due date for filling of Service Tax Return (October 2015 – March 2016) i.e. ST- 3 extended upto 29th April, 2016.
The Central Board of Excise and Customs (CBEC) has exempted service tax on several services provided by Government or a local authority including issuance of passport, visa, driving license, birth certificate or death certificate; services where the gross amount charged for such services does not exceed Rs. 5000/-. For a detailed analysis please read note attached.

Interest on Employees State Insurance (ESI) contribution related to omitted wages shall be calculated calendar month wise from the day the ESI contribution on the said omitted wages was payable. This change is effective from 8.4.2016. Prior to this, interest was being computed after allowing a grace period of 21 days from the date of the demand letter issued after the report filed by the Social Security Officer or Test Inspecting Officer.
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.