Hi Folks Times are changing – fast and furious. Old Guards are giving way to New Sentinels in new areas. FIPB is out. GSTN is in. FIPB, one of the last relics of the 1991 reforms is finally put to rest. GSTN (Goods and Service Tax Network), the backbone of the yet-to-be-born GST Act is firmly established and active. Set up in the Information Age, GSTN is a millennial baby aiming to provide trusted and efficient technology services for a smooth GST regime. Government must be lauded for all the right moves and preparations. But they must also be denounced for the hurried manner in which GST is being rolled out. For the multiple tax rates and confusing slabs for the same services. For prescribing 4 taxes (Central GST, State GST, Interstate GST & Union Territory GST) under the One Nation-One Tax Scheme. For some of the State Governments yet to pass the legislation. For continuing some of the absurdities of VAT and Service Tax. For a dealer requiring registration in multiple states. For missing an opportunity to usher in a simplified tax. I am not a tax expert but after attending a 3 day clause by clause GST discussion seminar last week, this is the impression I carry. No doubt GST is path-breaking. Transformational. Reformative et al. But the roll-out slated for 1st July is going to be an uphill task. For a change, Government ‘seems’ better prepared than the private sector and public. Each one of us has lots to understand and change during this implementation. Unlike when VAT was introduced way back in 2003, at least this time, the Government has made its intention very clear that 1st July shall be the D-day. It is working overtime to ensure this. On the contrary, VAT had a false start in 2002 when all of us were prepared and waiting for the announcement on 31st March which didn’t happen. The comparisons, debates and analysis will go on for next couple of years as in the past when Companies Act was suddenly ushered in on 1st April, 2014. Be that as it may, lets move on. Accept the change. Brace ourselves. Adapt and Transform. Pause if you may, to read a few other non-GST regulatory updates that Lexspeak carries this time. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at  www.lexvalorem.com. Warm regards GST implementation is imminent with the following decisions of the GST Council: Schedule of goods attracting nil rate, 5%, 12%, 18% and 28% based on ITC (HS) classification. Schedule of services attracting nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. Services under reverse charge The above schedules are likely to undergo further change subject to vetting effective date is yet to be notified. All the sanctioned schemes by BIFR under SICA shall be deemed to be an approved resolution plan as prescribed under the IBC and for the purpose of monitoring and implementation the same shall be dealt with under the provisions of the Code. Another change has been made with respect to appeal. An appeal can be filed before NCLAT against BIFR order regarding the sanction of scheme within 90 days of this Removal of Difficulty Order, i.e. appeal can be filed before NCLAT latest by 22nd August, 2017. Under SICA it was provided that an appeal can be preferred by an aggrieved person to the Appellate Authority within 45 days from the date on which a copy of the order is issued to him. Amount received from ‘‘Infrastructure Investment Trusts” is now treated as an Exempt Deposit. Every eligible Company inviting deposits shall enter into a contract for providing deposit insurance atleast 30 days before the issue of circular or advertisement or renewal. Vide Companies (Acceptance of Deposits) Amendment Rules, 2017 Companies may now accept deposits without deposit insurance contract till the 31st March, 2018 or till the availability of a deposit insurance product, whichever is earlier.

Under the erstwhile Companies Act, 1956 the power was vested with the Regional Director to direct a Company to change its name within 12 months from the date of incorporation or change of name. Under Section 16 of the Companies Act, 2013, no such time limitation has been specified.

It has been clarified that applications made under the old Act which were earlier rejected by the RD on the ground of being time barred, cannot be made afresh under the 2013 Act as extinguished limitation cannot be considered to be revived even if no limitation has been laid down in the section.

Where the 7 year period for making the transfer to Investor Education and Protection Fund (IEPF) Authority is completed during the period September 7, 2016 to May 31, 2017, the due date for transfer of shares by Companies will be 31st May, 2017.

As the modalities for transfer of shares from company to Demat account of IEPF Authority are yet to be finalised, Opening of Special Demat account is being considered. Till such time, the due date for transfer of shares stands extended. Revised date shall be notified soon.

Section 139AA of Income Tax Act, 1961 provides for mandatory quoting of Aadhar Number/Enrolment ID of Aadhar Application form for filing the return of income or for making an application for allotment of PAN, w.e.f. 1st July, 2017.

Such provisions shall not be applicable to an individual who does not possess the Aadhar number or the Enrolment ID and is:

Residing in the States of Assam, J&K and Meghalaya; A non -resident as per IT Act Of the age of 80 years or more during the previous year Not a citizen of India

Section 115BA provides that, subject to fulfilment of certain conditions prescribed, the income tax payable on the total income of a domestic company, for any PY relevant to the AY beginning on or after the 1st day of April, 2017, shall, at the option of such person, be computed at 25%. Such option can be exercised in Form 10-IB which shall be furnished electronically either under digital signature or electronic verification code.

In case of minors where both the parents are deceased, TDS on the Interest income accrued to the minor is required to be deducted and reported in the hands of the minor and cannot be clubbed against the income of any other relative. Income tax returns can be filed by the minor through his/her guardian.

TDS with respect to the payments made by certain entities or bodies or authorities is not required to be deducted as their income is unconditionally exempted under the Income Tax Act and are thereby not required to file Return of Income tax. Revised list of exempted entities from TDS has been notified.

Amendment has been made to the Mega Exemption Notification of CBEC exempting the services of life insurance business provided under Pradhan Mantri Vaya Vandana Yojana Scheme from service tax leviable on it.

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. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

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