Hi Folks
Exactly a week ago, I celebrated Children’s Day after a very, very, very long time. Brought back all my school memories of march past, drill, dances, chocolates, sweets-namkeen, a long lecture in the hot sun by our school Principal and finally ½ day off for ourselves. And, if the day was to be in the middle of the week, even better. Some thrill. Some incentive. Some joy that we are breaking the routine. Going to school but not attending classes. Simple, enjoyable moments that will never, ever come back.

Well, this 14th November I celebrated in a different way. With school children of course but very special ones. Because they came from extremely harsh living conditions. Children of slum-dwellers, mostly rag pickers whom we abhor for their filthy clothes, smelly bodies, unkempt hair, foul mouths and supposedly thieving-traits ! We either shoo them away or avoid them. What irony, they help us to keep our surroundings clean and we distrust them, despise them thinking they are out to steal something. Honestly, things have changed. One of my clients has actively involved them as stakeholders in the garbage collection activity and turned them into entrepreneurs. Yet another one, a not-for-profit company (Vonisha Foundation) is running a Bridge School for these children of lesser gods.
I was invited to say a few words on the occasion of Children’s Day by the selfless lady running this school. I was pleasantly surprised to see about 70 children of all age groups ranging from 3 yrs to 15 years, both boys and girls, well-dressed in track pants and T-shirts sitting on the ground and waiting for me (as if I were some celebrity chief guest ). Yelling at the top of their voices. Screaming. Giggling. Laughing. Chatting. Nudging and finally rising to wish me a ‘Good morning ma’am’ in their own sing-song way. I was taken aback when my client Revathi explained that all of them are from the nearby slums who have never, ever stepped into a school in their lives. Even the older ones. Hence she is running a Bridge School to prepare them to enrol in a Govt. school. Their parents leave home as early as 5 am and return late with no one to guide, supervise or care for them throughout the day. Getting kids from such neglected families and training them to say a Good-morning, recite a few rhymes in English, sing Saare jahaan se accha in Hindi, a few other songs and closing with a national anthem as a group was incredible ! Transformational I would say for the children and for me too !!
What I liked best is the sunny happiness, enthusiasm, energy and child-like curiosity in them. Children are children. It was impossible to control their excitement and activity. I had to struggle to make myself heard in the din. After all, it was their day. Their moment. Surprisingly, I didn’t find the usual demureness or inhibhition in these kids that we normally find in our so-called ‘cultured, well-bred’ children. They were bold. They were candid. They were open. But what shocked me the most was when a majority of the class wanted to become a ‘Policeman’. I asked why. One boy boldly got up and said “Woh roz, sou rupya kamaatha hai. Policewalla basti mein aake, hafta mangta hai” (He earns Rs. 100 every day. Policeman comes to our slum and demands money). The teachers were shocked too since they had been teaching good values, good things and explaining what is right and what is wrong. I tried in my own way to explain that they should become a Policeman not for this but to protect law and always be upright. Not sure if it made sense because all their lives they had been seeing their parents being exploited in some way or the other and the cop was the only image they had in mind. One thing was clear to me. It does not matter what you say. It matters only what you do. Children will pick up things they see around them. Not what we elders say. It is so very important that we walk the talk and live a life that we want them to live.
I left the school with happy memories and lot of hope and positivity that these rag-picker kids will become something, someday, thanks to noble souls like Revathi and her team of teachers. The cards in the banner were specially made for me by these kids. What better tribute to their love than sharing it with all of you ?
The updates about GST, MCA and FEMA are bound to transport you back from the childrens’ world to our adult world. It is nice to escape sometimes into their world, but it is essential to come back to reality (sadly) and take stock of things around us. Let’s not lose sight of how we can together make a better world for the children – whether ours or not. For our earlier issues do visit the Resource Centre at

Happy Reading

Companies (Accounts) Amendment Rules, 2017 has been notified wherein, the MCA has revised the Annual Filing Forms i.e Form AOC-4 (Form for filing financial statement and other documents with the Registrar), Form AOC-4 XBRL (Form for filing financial statement in XBRL (Non-Ind AS) with the Registrar) in order to include the demonetization related changes.

IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 and the IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2017 require more transparency and disclosure in the resolution plan. Some of the mandatory information is as below:
  • Details of the applicant;
  • Details of the promoters or persons who are in management or control of the resolution applicant;
  • Details of the persons who will be promoters or in management or control of the business during the implementation of the plan;
  • Details of holding, subsidiary and associate companies, and related parties, if any;
  • Conviction details, pending criminal proceedings, disqualifications under the CA, 2013, orders or directions issued by SEBI, categorization as a wilful defaulter, etc.
Along with the resolution plans, details of preferential transactions, undervalued transactions, extortionate credit transactions, and fraudulent transactions under the Insolvency and Bankruptcy Code, 2016 to be submitted to the Committee.

  • RBI has notified FEMA (Transfer or Issues of securities by a person resident outside India) Regulation, 2017 wherein various provisions related to restrictions for making and receipt of investment from non-residents, acquisition of shares, issue of shares and convertible notes, pricing guidelines, taxes and remittance of sale proceeds, reporting requirements, downstream investment, prohibited activities and permitted sectors for investment by a person resident outside India have been laid down.
  • Several new definitions have been added, as also existing ones have been modified/clarified/regrouped in line with other allied legislations.
  • This is a regrouped and consolidated, comprehensive notification covering LLP, Company, Start Up etc. with an aim to bring in parity between the provisions of FEMA, LLP Act, Companies Act, 2013, and SEBI.
  • Caution to Entrepreneurs – accepting foreign investment but delaying reporting to RBI will now attract late submission fee, which was so far not applicable for RBI submissions. The government is taking a stricter view of the compliances and penalising delays. The reason may be lack of receipt of FIRC or KYC from the Indian Bank or the Remitting Foreign Bank, but ultimately the Indian Company and its founders are accountable. Watch out for the late submission fee to be announced by RBI !!
  • Foreign investment received must be allotted within 60 days, which is in line with the Companies Act, 2013. Earlier FEMA provided 180 days’ time, which is no longer available now. Any share application amount retained beyond 60 days, will amount to violation of FEMA as well as CA, 2013, attracting penalties.

Supplies of goods by a registered person to EOU /EHTP/STP/BTP units, would be treated as deemed exports and refund of GST paid on such supplies can be claimed by either the recipient or supplier of goods.
Recommendations of the GST Council at its 23rd meeting held on 10th November, 2017 are towards easing several pain points being faced by trade and industry. Highlights of the extensive changes, effective from 15th November, 2017 are as below:
  • GSTR 2 and GSTR 3 need not be filed until March 2018.
  • GSTR 3B to continue until March 2018 with tax payment before 20th of the following month.
  • Late fee for delayed filing of GSTR 3B for the months of July, Aug and Sept 2017 have been waived and will be credited back to the tax payer . From October 2017 onwards late fee for filing ‘NIL’ returns is Rs 20 per day instead of Rs. 200 per day.
  • GSTR-1 to be filed by taxpayers with Turnover of up to Rs. 1.50 crores on quarterly basis and with turnover over Rs. 1.5 crores on a monthly basis on extended due dates.
  • All service providers whether supplying intra state, inter-state or through e-commerce operator will be exempted from obtaining GST Registration if the aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category states excepting J&K)
  • Certain dates for filing returns extended from August to December, 2017.
While the Government claims simplification and relaxation, from a user perspective keeping track of the multiple due dates is turning out to be a nightmare.
The GST rate for restaurants, mess, canteen etc. including hotels, guest houses, inns etc. which charge Rs. 7500 per unit per day for lodging or residential accommodation has been reduced to 5% on the value of supply of food or drink. However, no input tax credit is available in such cases. In cases where the input tax credit is taken, the GST rate would be 18%.
Earlier wherever the exporter had delayed seeking extension of EO Period within 3 months of the expiry of such EO period in respect of EPCG licenses, he had to approach the DGFT, Delhi for condonation of the delay. In view of a number of such applications reaching Delhi, it has now been decided to delegate such powers of condonation to the respective Regional Authorities (i.e. State level DGFT offices) who can decide on the basis of merit. Hopefully, this will ease the burden on the exporters and expedite license closures.

  • One time relaxation has been provided for clubbing of Advance authorisations issued during Foreign Trade Policy 2002-07 and for 2004-09.
  • One time relaxation has been provided for extension of EO Period of Advance authorisations issued under Foreign Trade Policies 2002-07, and 2004-09, and Advance authorisations issued prior to 5th June, 2012 under the policy 2009-2014, subject to payment of applicable composition fee.
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.

S. C. Sharada & Associates, Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034 Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]

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