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MCA has notified the Companies (Incorporation) Fifth Amendment Rules, 2016 w.e.f. 1st January, 2017. Major highlights of the rules are: |
- Removal of E-Form INC-2 for One Person Company (OPC)
- E-Form INC-7 shall now be used only for incorporating Part I companies and Companies with more than 7 subscribers only.
- Newly Integrated SPICE E-Form INC-32 along with E-Form 33 and E-Form 34.
- Section 8 Companies and Companies having upto 7 subscribers can only use SPICE form for incorporation.
- Filing fees reduced from Rs. 2000 to Rs. 500.
- Resubmission of forms allowed only twice.
- Revised E-form INC-7 shall be available for filing w.e.f 15th January, 2017.
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With so much of churn in the incorporation process it is advisable to hold until 15th January!! |
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W.e.f. 20th December, 2016, the above Rules have been notified to provide for |
- Rectification of certain errors
- Clarification in certain cases
- Enabling Joint Petitions and Multiple Remedies
- Application to Tribunal for cancelling of variation of shareholders’ rights
- Application by any Statutory Authority/any other person in Form NCLT-9 for Re-opening of books of accounts and re-casting of financial statements by a Company in case of fraud or mismanagement
- Waiver of requirement of minimum number of members for filing a petition for oppression or mismanagement
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RBI has provided flexibility for Foreign Portfolio Investors (FPIs) to acquire non-convertible debentures (NCDs) / bonds issued by Indian Companies, either directly or in any manner as per the prevalent or approved market practice, as against the earlier requirement of purchase of such securities on repatriation basis subject to terms and conditions specified by SEBI and RBI. |
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Rule 114E of the Income Tax Rules require reporting of cash receipts exceeding Rs. 2 lakhs. Doubts were raised whether such transactions were to be aggregated for reporting. It has been clarified that the limit applies to each transaction. |
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Under Section 44AD of the Income Tax Act, income of small businesses up to a turnover of Rs. 2 Crores is presumed to be 8% of turnover. A scheme has been announced for lowering this to 6% in case of digital transactions for a turnover up to Rs. 2 crores. |
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The Direct Tax Dispute Resolution Scheme, 2016 incorporated as Chapter X of the Finance Act, 2016 provides an opportunity to tax payers who are under litigation to come forward and settle the dispute in accordance with the provisions of the Scheme. |
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The threshold limit of wages for mandatory ESI coverage has been raised to Rs. 21,000 from Rs. 15,000 per month w.e.f 1st January, 2017. |
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W.e.f 19th December, 2016, the above rules comes into force. Previously, the Service Tax Mega Exemption Notification 25/2012 carried the list of exempted services. One amongst them was the online information and database access or retrieval services received by persons specified in entry no. 34 of the Mega Exemption 25/2012 from a non taxable territory. This exemption had been withdrawn vide Notification 47/2016 dated 9.11.2016. |
As a consequential amendment, the service provider located outside India providing service to non-assesees located in the taxable territory has to issue invoices and pay service tax. Invoices may be signed digitally. However, as a relaxation, the invoices need not be authenticated digitally up to 31.1.2017. |
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