Hi Folks
Brexit shook the entire world. Next it could be Grexit, Departugal, Italeave, Czechout, Oustria, Finish, Slovakout and Byegium. Only Germain & Turk-In, joked people on a lighter note on this historic event. Rexit news is still raging. Messixit news stunned football fans ! Amidst all this is celebration of “DAYS” !! Dad’s Day, International Yoga Day, World Music Day, Chartered Accountant’s Day & Doctors Day. My pick is World Music Day (21st June)….and a reflection on Music and Management.
Just imagine a team where truly ‘Together Each Achieves More’ even while showcasing the individual talent. They enjoy their work and ensure ‘sheer customer delight’. There is personal excellence, harmony, innovation, customer interaction, healthy competition and more. Wondering which is this dream team and whether this is actually possible or not ? Well, those of you who are music rasikas (connoisseurs) will agree with me that an Indian Classical Music Concert is a personification of brilliant team work !! Nothing is orchestrated / practised in advance as a Team. Yet the artistes emote soulfully through their performance. Individual brilliance sparkles the team delivery. While some concerts are sublime and soulful, some have the majestic gait of an elephant. Yet others are high-voltage performances creating a ‘tsunami’ like experience. The songs range from devotional and divine to playful and teasing to peppy and fast numbers – in all producing sheer ecstasy through music !
They say music moves mountains, music melts hearts, music cures, music unites and now I say music teaches management too. Cutting back to the world of notifications and rules, do read this 151st issue of LexSpeak. At least a few updates may be music to your ears. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
Warm regards

As per Companies (Acceptance of Deposits) Amendment Rules, 2016, following transactions do not fall under the ambit of deposit:
➣ Issue of compulsorily convertible debenture upto 10 years
➣ Non-Convertible Debenture listed at stock exchange
➣ Any non-interest bearing amount received and held in trust
➣ Advance received for providing future services in the form of warranty or maintenance contract. The services should be provided as per common business practice or within 5 years from the date of acceptance of such service whichever is less
➣ Amount received from sectoral regulator as per instruction of Central or State Government
➣ Advance received by the publishers
➣ Subscription amount received by the Chit Companies
➣ Amount received under collective investment schemes framed by SEBI
➣ Amount received by start-up companies of Rs. 25 lakhs or more as convertible note (convertible into equity or repayable within 5 years) in a single tranche
➣ Amount received by a company from alternative investment funds / domestic venture capital funds / mutual fund registered with SEBI
Above exemptions will be welcomed by startups & SMEs who are normally short on funds.
Central Government has exempted taxable services from levy of Krishi Kalyan Cess (“KKC”) if the following 2 conditions are satisfied:
➣ where invoices have been raised prior to 01.06.2016 and
➣ where provision of service has been completed prior to 01.06.2016.
The Consolidated FDI Policy Circular was issued on 07.06.2016. Yet again this Policy has undergone change with effect from 24.06.2016.
Highlights:
– In Defence, Telecom and Information & Broadcasting sectors since FIPB/ Ministry approval is taken, no specific RBI approval is required for setting up Branch office, Liaison office or Project office.
– In Defence Industry, FDI allowed up to 100% – automatic route upto 49%. Government approval beyond 49% where investment provides access to modern technology or for reasons to be recorded.
– Sourcing norms will not be applicable upto 3 years from commencement of business i.e. opening of the first store for entities undertaking single brand retail trading of products.
For more details, click on download Key Changes.

Central Board of Direct Taxes (CBDT) has issued FAQs on Income Declaration Scheme, 2016 and collection of 1% TCS on cash transactions exceeding Rs. 2 Lakh.

Payments made to non-resident individuals (not being a company or foreign company) towards interest, royalty, fees for technical services and payments on transfer of any capital asset attracted TDS at higher rate of tax if they did not furnish PAN. Some relief has been granted now. If such non-residents furnish their email id, contact no., address and any Tax/ Unique Identification No. issued by the foreign country, normal rate of tax will be deducted effective 24th June, 2016.
CBDT has notified procedure for registration, preparation and submission of online Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) Statements.

Section 44AB of the Income-tax Act makes it obligatory for every person carrying on business to get his accounts audited if his total sales, turnover or gross receipts exceed 1 crore rupees. However, if an eligible person opts for presumptive taxation scheme as per section 44AD(1) of the Act, he shall not be required to get his accounts audited if the total turnover or gross receipts of the relevant previous year does not exceed 2 crore rupees.
Chapter X-A of the Income Tax Act, 1961, deals with the General Anti Avoidance Rule (GAAR) which applies for any Assessment year commencing on or after 01.04.2018. Rule 10U of the Income Tax Rules deals with the cases in which GAAR does not apply and one such case is to Income accruing on transfer of investments. The cut-off date prescribed for this purpose was ‘from transfer of investments before 30.08.2010’. This date has now been amended to 01.04.2017. Further Sub Rule (2) of Rule 10U hitherto prescribed that GAAR would be applicable irrespective of the date of arrangement entered into by the Assessee for tax benefits received from 01.04.2015. This date has now been moved to 01.04.2017.
Provisional refund of up to 80% of service tax refund by exporters of services is subject to providing the Statutory Auditors Certificate in case of Companies and in case of others, in the prescribed format. It has now been clarified that in respect of companies, only the Statutory Auditor can furnish the certificate and not a Cost Accountant or Company Secretary or other Chartered Accountant. It has also been clarified that while issuing the certificate, the Statutory Auditor may use disclaimers as per the guidelines issued by the ICAI so long as the format in Annexure I provided for the purpose are present.
Non furnishing of return under Foreign Contribution (Regulation) Act, 2010 attracts penalty ranging from

2% of Foreign contribution received during the FY or Rs. 10,000 whichever is less (for delay of up to 3 months from end of December)

TO

10% of Foreign contribution received during the FY or Rs. 10 lakhs whichever is less (for delay of 2-3 years from end of December).

All Non-Banking Financial Companies (NBFCs) are required to submit a certificate from their Statutory Auditors every year to the effect that they continue to engage in the business of NBFI. With a view to ensure consistency, RBI has prescribed a uniform format of Statutory Auditors Certificate (SAC).
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.