Thanks to several client board meetings and Annual General Meetings scheduled during this month, especially as we are nearing the due date of 30th September, there is little time left to write. Actually little mind-space left. I will keep my dialogue short.
It is hard not to notice the frayed tempers – over Cauvery water sharing issue, over dengue deaths and over our soldiers’ sacrifice. The same water that bonded people across the States during the Chennai flood havoc in 2015 is now causing strife and misery.
What a paradox ? A tiny mosquito seems to be challenging mankind -“Show me the money”. Both rich and poor are equally being affected by the mosquito. Money and best of the medical facilities are unable to prevent loss of precious lives. What a paradox ?
Amidst all this, we are witness to transformational changes – Railway and Union Budget to be merged and presented on 1st Feb, 2017 with far reaching impact on budget spending and clear implementation from 1st April, each year. GST Council formed with clear road map for implementation from April 2017 onwards. Only hope as a country we are ready in a complete sense – unlike the Companies Act, 2013 which is still evolving even after 2.5 years and creating uncertainty and imbalance for corporates and professionals alike.
Several tax and non-tax updates have been compiled in this 156th issue of LexSpeak. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
CBDT has extended the due date for submission of Returns of Income from 30.09.2016 to 17.10.2016 in case of income tax assessees throughout India who are liable to file their Income Tax Returns by 30.09.2016.
During the course of search u/s 132 or Survey Operation u/s 133A of Income-tax Act, 1961, if any proof of document including any acknowledgments issued by the I-T Department has been obtained with respect to filing of declaration under the Scheme, then no enquiry shall be made in respect of sources of undisclosed income or investment in movable or immovable property as made in the valid declaration.
CBDT has issued FAQs relating to the Direct Tax Dispute Resolution Scheme, 2016 for clarifying the doubts and concerns as raised by the stakeholders on certain provisions of the Scheme.
Companies (Mediation and Conciliation) Rules, 2016 have been notified and shall come into force from the date of their publication in the Official Gazette. The Central Government, by the powers entrusted by the Companies Act, 2013 is authorized to maintain a panel of experts to be called as ‘‘Mediation and Conciliation Panel’’ for mediation between parties during the pendency of any proceedings before the Central Government/ Tribunal/ Appellate Tribunal.
These Rules contain definitions of relevant terms, process of formation of panel of mediators/ conciliators, requisite qualifications and experience of mediators and conciliators, disqualifications, application and appointment, scope of work, procedure for disposal of matters and role and duties of mediators/ conciliators, etc.
As per the Rules, professionals like Chartered Accountants, Company Secretaries and Cost Accountants with at least 15 years of continuous practice are also eligible for empanelment as an expert. However, he/she should not have been punished in any disciplinary proceedings.
• Relaxation of Additional fees for Filing Form IEPF-1
Pursuant to the Investor Education and Protection Fund (Accounting, Audit and Transfer and Refund) Rules, 2016 being notified, the relevant Form 1-INV has been replaced by introducing a new Form IEPF-1 w.e.f. 7th September, 2016.
Relaxation has been provided to the Companies with due date for filing of the Form 1-INV falling between the period 25th March, 2016 to 6th September, 2016. Such companies can file the new Form IEPF-1 without any additional fees on or before 6th October, 2016. Further, the companies that have not yet filed the required information in Form 1-INV can file it in Form IEPF-1.
• IEPFA (Accounting, Audit, Transfer & Refund) Rules, 2016
MCA vide Notification dt. 5th September, 2016 has notified the Investor Education and Protection Fund Authority (IEPFA) (Accounting, Audit, Transfer & Refund) Rules 2016, which are effective from 7th September, 2016.
MCA has notified the following Sections of the Companies Act, 2013, which shall be effective from 9th September, 2016:
Section 227 – Legal advisers and bankers not to disclose certain information
Section 242(1)(b) 242(2) (c) & (g) – Power of Tribunal relating to winding up
Section 246 – Application of certain provisions to proceedings under Section 241 (Application to Tribunal for relief in cases of oppression)or Section 245 (Class Action) of the Companies Act, 2013
Section 337 – Penalty for frauds by officers
Section 338 – Liability where proper accounts not kept
Section 339 – Liability for fraudulent conduct of business
Section 340 – Power of Tribunal to assess damages against delinquent Directors etc.
– Remuneration Limits for Companies having no or inadequate profits can be enhanced without Central Government approval. Limits range from Rs. 60 lakhs to Rs. 120 lakhs depending on effective capital from Rs. 0 to Rs. 250 crores.
– With respect to managerial person who is functioning in a professional capacity, no approval of Government is required if such person is not having any interest in the capital of the Company, its holding company or any of its subsidiary companies during last 2 years on or after date of appointment and possesses graduate-level qualification and specialized knowledge in the field in which the Company operates.
DTAA entered into between India and Maldives for Avoidance of Double Taxation of Income Derived from International Air Transport was signed at New Delhi on 11th April, 2016. However, the Agreement will be effective in respect of income derived from airline enterprises w.e.f. 1st April, 2017.
Service Tax circular urges the department to consider all immovable property of the religious place located within the outer boundary walls of the complex (of buildings and facilities) in which the religious place is located, as being located in the precincts of the religious place. The immovable property located in the immediate vicinity and surrounding of the religious place and owned by the religious place or under the same management as the religious place may also be considered as being located in the precincts of the religious place and extended the benefit of exemption.
More than 50% of the State Governments have passed the GST bill, following which the Central Government has notified formation of GST Council w.e.f. 12th September, 2016. ‘Goods and Services Tax Council’ would make recommendations to the Union on taxes, surcharge and cesses levied by the Union, states and local bodies, exemptions, GST model law, principles of levy, threshold limits etc.
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.
S. C. Sharada & Associates, Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034 sharadasc.com Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]