Lexspeak started its journey in November, 2009 with an intent to share knowledge with all the stakeholders – employees, associates, professionals, layman, clients, vendors, students. “Tamosama Jyotirgamaya” which in Sanskrit means “May the light of knowledge remove the darkness of ignorance” were the first lines in the very 1st issue.
Releasing an issue every fortnight, as we hit the 50th one in January, 2012 we stayed positive. The editorial referred to William Arthur Ward who said “The optimist pleasantly ponders how high his kite will fly; the pessimist woefully wonders how soon his kite will fall”.
The 100th issue in February, 2014 had a video of the Lexspeak team in the editorial and it said “Lexspeak has helped us reaffirm that it is not the end but just another benchmark for us to breach.”
As we release this milestone 150th issue of Lexspeak we are buoyant and upbeat. We are unstoppable now. It is time to thank all the people who have been behind this since its birth – CS Vivek Hegde, CS Ratnamala Hegde, CS Prabhat Joshi, Nitin, Divya Joshi, Indhu P and for the last 2 years, the youngest and most diligent of the lot Ashwini Hegde who have worked towards making what Lexspeak is today. “Its when ordinary people rise above the expectations and sieze the opportunity that milestones truly are reached.”
It is also time to doff the hat to some silent contributors – CA Naveen Bhat, CFO of a large hospitality company who religiously confirms if our Statutory Compliance Chart is correct in all respects, CA Ketoki Basu who has contributed to several of the Articles on Accounts related topics carried in our “Entrepreneurs World” section and now CA Krishnamurthy who is compiling the tax related regulatory upates of late for us. It has been a good team effort not to mention our tech-support team from Fomax Technologies. I have personally challenged myself each time trying to come up with interesting editorials and imaginative banner themes. Infact this kept me up and about even during my 8 month cancer treatment in 2013-14. Finally without the feedback and encouragement from all you readers, we couldn’t have kept going. Thank you and hope you will continue to patronise us and give constructive feedback.
There is the consolidated FDI policy, there is the draft GST model law and several other updates in this landmark 150th issue. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
Empowered Committee of State Finance Ministers has issued draft model GST Law for stakeholders comments. Key highlights are summarised.
DIPP has issued consolidated FDI Policy 2016 with effect from 7th June, 2016.
Startups having an overseas subsidiary may open a foreign currency account with a bank outside India for the purpose of crediting to it foreign exchange earnings out of exports/sales made by them. For realization of export proceeds, balances in the account shall be repatriated to India within prescribed time.
All matters or proceedings or cases pending before the Board of Company Law Administration (CLB) shall be transferred to the newly constituted “National Company Law Tribunal” (NCLT) and it shall dispose of such matters or proceedings or cases in accordance with the provisions of the Companies Act, 2013 or the Companies Act, 1956 w.e.f. 1st June, 2016.
MCA also notified the Benches of NCLT along with their jurisdiction. Several provisions of the Companies Act, 2013 relating to NCLT(incorporation, conversion of public to private company, redeemable preference shares, calling AGM, removal of auditors, removal of directors, inspection, investigation, compounding of offences, oppression and mismanagement etc.) have been notified.
As per the Companies (Authorised to Register) Amendment Rules, 2016 a Partnership Firm has to follow the same compliance which was earlier followed by Limited Liability Partnership (LLPs) at the time of their conversion into a company. Now the partners of the converting firm have to get the consent from secured creditors and a statement of assets and liabilities of the partnership firm duly certified by a practicing Chartered Accountant and file it with the Registrar of Companies (ROC). Firms are also required to file a copy of latest income tax return of the firm.
Form 2 (for incorporation), Form 3 (LLP Agreement), Form 4 (appointment/cessation/change in particulars of designated partner or partner), Form 11 (Annual Return) have been revised by MCA. The revised forms provide for name of the nominee of a body corporate which is partner of the LLP, to be filled as against name of the partner (body corporate).
CBDT has notified the cost inflation index for capital gain purposes as 1125 for the financial year 2016-17.
The payers of certain income without deduction of tax on receipt of form 15G and 15H are required to file the said forms as per due dates below:
30th June – 15th July of the financial year
30th September – 15th October of the financial year
31st December – 15th January of the financial year
31st March – 30th April of the financial year immediately following the financial year in
which declaration is made.
Forms received from 01.10.2015 to 31.03.2016 must be filed by 30.6.2016.
Tax Collected at Source (TCS) on sale of jewellery has been restored to 1% for transactions exceeding Rs. 5 lakhs as against Rs. 2 lakhs introduced by the Finance Act, 2016. Similarly a seller of a motor vehicle who receives consideration exceeding Rs. 10 lakhs shall collect 1 % of the sale consideration from the buyer. This provision is also applicable to an individual who is liable to get his accounts audited under Section 44AB of the Income Tax Act.
Under Section 194-IA, the person paying for transfer of immovable property other than agricultural land is liable to deduct 1% of the consideration and also file a return in Form 26QB within 7 days of the end of the month in which the deduction was made. This is now amended to 30 days from the end of the month in which the deduction was made
Services provided by Senior Advocates to any person other than a business entity or a business entity with a turnover of Rs. 10 lakhs in the preceding financial year are exempt.
Recipient of service is liable to pay service tax in respect of advisory services. Further in the case of representational services by senior advocates to a business entity, the business entity who is the litigant, applicant or petitioner would be liable to pay service tax. This is in view of the stay of the operation of payment of service tax under the forward charge.
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.