CA Rohit Jaiswal: 10 October 2017 Updates

_Legal Provision of the Day *"Punishment in case of Repeated Default"* ._

_*Legality*_: _Section 451 of Companies Act, 2013 no corresponding section in Companies Act, 1956_.

_*Effective*_: _12th of September, 2013_

_*Provision*_: _if a Company or an officer of a Company commits an offence punishable either with fine or with imprisonment and where the same offence is committed for the second and subsequent occasions with in a period of *three years* , then, that company and every officer thereof is jn default shall be punishable with twice the amount of fine for such offence in addition to Any imprisonment provided for that offence ._

_*Brief of Provision*_

_Even the offence done on first occasion by either company or any officer but same offence if so repeated subsequently with in *three years* , then company along with officer shall be punishable with double the amount of fine for such offence_.

#Economy:There has been a 27% jump in the launch of new affordable housing units in the first nine months of the year compared to the corresponding period last year. More than 26,000 new units have been launched in 2017 so far. Of the total new launches in the affordable segment, 40% were in Mumbai, followed by Kolkata and Pune. Hyderabad saw the biggest 813% jump in the launch of affordable homes while Mumbai saw a 331% increase.

#Finance:The GST Council has now decided that service providers will be allowed to make inter-state supplies of up to Rs 20 lakh without GST registration. A notification is expected within a week.

#The GST Council has decided to keep open the composition scheme, an easier compliance and tax option, till March 31.It allows small taxpayers to pay a fixed rate of turnover as tax and eases GST formalities.

#Truck operators across the country are on a 2-day token strike against the GST, high diesel prices, harassment by authorities on roads and toll policies.

#CA's apex body the Institute of Chartered Accountants of India said it has sought post graduation degree status for CA qualification. Besides, the CA intermediate programme should be accorded the graduation degree status, in this regard, ICAI has recently written a letter to the corporate affairs ministry.

🇮🇳भारत माता की जय🇮🇳
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Punishment in case of Repeated Default"* ._

_*Legality*_: _Section 451 of Companies Act, 2013 no corresponding section in Companies Act, 1956_.

_*Effective*_: _12th of September, 2013_

_*Brief of Provision*_

_*Note*:_ _Here 3 yrs will be reckoned from the day of last offence so committed not from the date when the last offence was so compoundable under Section 441 of Companies Act, 2013._
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In a major relief to bIn a major relief to business community, especially the small and medium enterprises, late fee has been waived for delayed filing of Goods and Services Tax (GST) returns, but those filing late returns will have to pay the ‘interest’ on late payment.The move also allows tax payers to correct errors in the initial form while submitting final returns by September 5. Late fee for all taxpayers who could not file GSTR 3B for July has been waived, but not the interest on late payment of dues, a circular from Finance Ministry stated.

Businesses were required to file the maiden GST returns for July and pay taxes by August 25 by filing GSTR 3B. The final returns for sales for July are to be filed by September 5 and returns for purchases by September 10.As per the Central GST and State GST Acts, an interest at the rate of 18 per cent will be levied for delayed payment of tax. The GST law provided for a nominal fee of `100 per day on CGST and an equivalent amount on State GST for late filing of returns and payment of taxes.

Of the 59.57 lakh businesses that should file return for July, as many as 38.38 lakh taxpayers accounting for 64.42 per cent of the total businesses registered in July had filed their GST returns, according to the Finance Ministry. Further taxes amounting to `92,283 crore were collected in July from just 64.42 per cent of the total taxpayer base.
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The issue is expected to grab a light at next GST Council meeting scheduled in Guwahati.

New Delhi: Considering the grievances of finance ministers of different states, the GST council may reduce number of products falling under highest tax slab (28 percent).

According to the state finance ministers, 28 percent tax slab includes several common use products causing misery to people.

The speculations were followed by the finalisation of a concept paper at the GST council meet that took place last friday. Two state finance ministers quoted a number of products such as bath fittings, cement, steel products such as rods used for construction that lie under high slab category and do not belong there.

Officials from Central Board of Excise and Customs (CBEC) on Saturday indicated towards a number of products that have leverage of 28 percent tax. The issue is expected to grab a light at next GST Council meeting scheduled in Guwahati. Last week Finance Minister Arun Jaitley rehearsed the plan to move to fewer slabs in near future.

Reportedly, in order to review the tax structure for different categories of restaurants for possible reduction or improvisations, a panel of state ministers will be set up. Currently, there is a leverage of 12-28 percent tax on restaurants.

Meanwhile, the GST Council on last Friday decided to cut rate on 27 common use items.

GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 percent from 12 percent, while the same on man-made yarn used in textile sector has been reduced to 12 percent from 18 percent.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 percent from 28 percent. GST on e-waste has been slashed to 5 percent from 28 percent.

Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 percent.

Job works like zari, imitation, food items and printing items would attract 5 percent tax instead of 12 percent.
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The Goods and Services Tax Council reportedly wants to discourage ad hocism in rate revision and outright exemptions. This makes sense. Frequent changes in GST rates or outright exemptions that break the GST chain mess up the tax system, and go against the grain of the new tax system to make production efficient. It is also absurd to have different GST rates for the same kind of product as the divergence would only spawn classification disputes. The rates range from 5% to 28%, excluding the cesses. The rates must converge to encourage compliance and tax buoyancy going forward. A uniform GST of 14% would be revenue positive after subsuming many indirect taxes.

The larger point is to have a simple and neat tax system to reduce compliance burden. The GST Council has tried to ease the transition pain for small taxpayers and exports with incremental policy changes, but much more needs to be done. Manufacturers and service providers with operations in several states, for example, are required to register at multiple locations. The regulation says that for each state, the taxable person will have to take a separate registration, even though the taxable person may be supplying goods or services or both from more than one State as a single legal entity. The inability of states to share registration data is baffling. Taxpayers can be given the option to register centrally (with an all India footprint), and the registration can be shared by the GSTN with the states concerned. A common unified registration framework will make compliance simple for a business agent.

The GST Council has deferred the applicability of the e-way Bill to track movement of goods till next April. Dispense with the e-way bill. After all, no GST on inter-state sale of services is collected without the help of any e-way bill. A modern tax administration must minimise interface between the tax department and the taxpayer, and instead make intelligent use of technology to curb tax evasion. New rules should come into force three months after they are notified to make the transition less painful
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PRESS RELEASE

No extension of last date for filing GSTR-1 for July, 2017.

The last date for filing GSTR-1 for the month of July, 2017 is 10th
October, 2017. An extension of two months has already been given. There will be no further extension given to taxpayers for filing their GSTR-1 return for July. Taxpayers who have not yet filed their GSTR-1 for July are advised to do
so immediately.

2. Once a taxpayer files GSTR-1 by 10th October, the corresponding entries in GSTR-2A of his buyer shall get auto populated. The buyer shall finalize his GSTR-2 after making modifications (additions, corrections or deletions), if required, in GSTR-2A. The Input Tax Credit (ITC) shall be availed by the buyer based on his GSTR-2. If a taxpayer does not file GSTR-1 by 10th of October, then his buyer may face difficulty in availing ITC of the tax paid on his supplies. It is therefore advised that all suppliers of goods or services, especially B2B suppliers, furnish their outward supply details in GSTR-1 by the due date
so that no difficulty is faced by their buyers in availing ITC and the return cycle can be completed in due course.
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SEBI

SEBI has formed a Committee on Corporate Governance in June 2017 under the Chairmanship of Mr. Uday Kotak with a view to enhancing the standards of corporate governance of listed entities in India. The committee consisted of officials from the government, industry, professional bodies, stock exchanges, academicians, lawyers, proxy advisors, etc. The committee has deliberated on various issues including ensuring independence in spirit of Independent Directors and their active participation in functioning of the company, Improving safeguards and disclosures pertaining to Related Party Transactions, Issues in accounting and auditing practices by listed companies, Improving effectiveness of Board Evaluation practices. The committee has recommended various new things for the effective corporate governance including the Secretarial audit may be extended to all material unlisted Indian subsidiaries and in the annual report, a certificate from a company secretary in practice be included providing that none of the directors have been disqualified. Further, the committee has recommended that the term ‘Senior Management’ shall specifically include Company Secretary.

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RBI - NBFC

RBI has issued the Master Directions - Non-Banking Financial Company – Peer to Peer Lending Platform(Reserve Bank) Directions, 2017 which shall come into force with immediate effect. These Directions shall apply to every Non-Banking Financial Company- Peer to Peer Lending Platform (NBFC-P2P) as defined in these Directions. The objective of these Directions is to provide a framework for the registration and operation of NBFC-P2Ps in India. "Peer to Peer Lending Platform” means an intermediary providing the services of loan facilitation via online medium or otherwise, to the participants. No NBFC-P2P shall commence or carry on the business of a Peer to Peer Lending Platform without obtaining a Certificate of Registration (hereinafter referred to as “CoR”) from the Bank. Every company seeking registration with the Bank as an NBFC-P2P shall have a net owned fund of not less than rupees twenty million or such higher amount as the Bank may specify. A detailed procedure for registration by the existing and prospective NBFC-P2P is provided through these directions.
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IBBI

IBBI has amended the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)Regulations, 2016 and Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017. According to the amended regulations, a resolution plan shall include a statement as to how it has dealt with the interests of all stakeholders, including financial creditors and operational creditors, of the corporate debtor.
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No further Extension of Last Date for Filing GSTR-1 for July: Govt

Read more at: http://www.taxscan.in/no-extension-last-date-filing-gstr-1-july-govt/11926/
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12 Cases where Input Tax credit (ITC) is not available to set off against GST - GST ITC Rules explained with example

1.0 Introduction

Thought GST is very famous for the free flow of credit, there are at least twelve cases where input tax credit is not available to the taxpayer under GST regime. As said, Input tax credit (ITC) under GST is very important to understand, because it is directly related to your GST tax payment, hence any mistake may result in fines and penalties.

Before discussing the 12 cases, let us understand the meaning of Input tax credit.

2.0 Meaning of Input Tax Credit (ITC) under GST

As per clause 63 of section 2 of CGST, input tax credit means the credit of input tax.

The input tax means the central tax (CGST), state Tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on any supply received or purchased by a registered taxable person on goods or services or both.

Example: Suppose you buy a raw material from Kerala. Your vendor in Kerala will now charge IGST to you. Hence, that IGST shall be your input tax.

Let us now move forward and understand all the 12 cases where credit under GST is not allowed to be set off.

#Case no.1 – Input tax credit (ITC) of Motor vehicles and other conveyance not allowed under GST

As per GST law, the ITC on motor vehicles paid shall not be allowed to set off against output tax liability. In another word, you cannot claim the credit on motor vehicles and other conveyance.

Example: Suppose you buy a car for your business. As per motor vehicle act, the car is covered under the definition of motor vehicle, hence ITC on car shall not be allowed.

Cases where Input Tax Credit (ITC) shall be available on motor vehicle under GST

There are only four cases where ITC on motor vehicles are allowed under GST. The four cases are as follows:

Dealer of motor vehicles: If you are a trader of a motor vehicle, then ITC on cars purchased shall be allowed.

Example: If you are a registered dealer of Maruti cars and you purchased 10 cars for Rs.50 lakh plus 14 Lakh GST. In total, you paid Rs.64 lakh. Now you sold 10 cars for 70 Lakh on which you charge Rs.19.60 lakh GST. You are a dealer of motor vehicles, the ITC paid to purchase 10 cars shall be allowed and final payment due shall be Rs.5.60 lakh (19.60 – 14).

Transportation of passengers: If you are a travel agent or a taxi driver and providing services of transportation to the passengers, then the ITC shall be allowed to set off.

Example: Taxi drivers, Ola drivers, Uber drivers, school Van etc.

Driving schools: If you are imparting training on driving, flying, navigating such vehicles or conveyance, then ITC shall be allowed on motor vehicles.

The vehicle used for transportation of Goods: If you are using motor vehicles to transport your goods from one place to another, then the credit ofGST shall be allowed. However, here we are not talking about the Goods Transport Agency (GTA).

#Case no.2 – Membership of club, health and fitness center;

If you have taken any subscription of the gym, yoga classes, or membership of any club for any sport or for anything else, the ITC credit shall not be allowed.

#Case no.3 – Travel benefits extended to employees on vacation such as Leave or home travel concession

If you have arranged any travel packages like Manali package for holidays etc, then ITC on payment of travel package shall not be allowed.

However, if you arrange any traveling package for business purpose, then ITC shall be allowed.

#Case no.4 – Rent a cab, life insurance, and health insurance

The input tax credit on rent a cab, life insurance and health insurance is not allowed except under two cases:

When the government makes mandatory for an employer: Where the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force.

Example: Suppose government makes mandatory for the employer to provide mandatory cab services to female staff. In simple words, wWhere rent a cab service are availed by a rent a cab service provider then the ITC shall be available. If a provider of rent a cab or health insurance or life insurance uses any aforesaid service then the ITC shall be available.

#Case no.5 – Goods or services or both used for personal consumption

If goods or services or both are used for personal consumption, then the ITC shall not be available. The basic logic behind this law is that ITC is only available in cases where tax is paid or payable on the outward supply of goods or services.

#Case no.6 – Works contract services when supplied for construction of immovable property

This is perhaps of the most disputed area of ITC. The work contract services have always been a matter of dispute between the taxpayer and the tax department. However, under GST the works contract matter has been resolved to a certain extent.

Based on the analysis, there are two important aspects of working contract:

The work contract is a service under GST.Work contract is only related to immovable property

Now, let us move forward and understand the status of ITC of works contract.

Status of ITC of works contract

As per GST law, Works contract service when supplied for construction, alteration, renovation etc, shall not be allowed as input tax credit (ITC). However, if a works contractor is taking help of another work contractor, then the ITC to the former shall be available.

Example: If Amarpali group (Real estate developer) appoints a work contractor for any particular service, then ITC shall not be available to Amarpali group.

#Case no.7 – ITC under Composition levy

The ITC on goods or services on which tax has been paid by composition dealer; the ITC shall not be available.

#Case no.8 – ITC on goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples

If the goods are lost, stolen or destroyed or distributed as free samples, then ITC on such goods shall not be available.

#Case no.9 – ITC on goods or services received by Real Estate Developer

Goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business

#Case no.10 – ITC in case of Nonresident taxable Person

If the Nonresident taxable person receives any goods or services, then ITC shall not be available to them. However, if an NRTP imports any goods or services, then he shall be eligible to claim the ITC.

Further, on imports and exports, IGST act is applicable.

#Case no.11 – ITC in case of Food and beverages, outdoor catering, health services etc

The input tax credit shall not be available for food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery.

However, where an inward supply of aforesaid goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply then the input tax credit shall be available.

#Case no.12 – ITC in case of willful fraud

The input tax credit shall not be available in case of fraud.
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Glitch in 3B
While saving the data in Form 3B for July 2017 it is showing an error "Saving error - retry again"
To remove this error, we have to click on TAB "Interest and Late fee" and put Interest figure in this box
And then proceed
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ICAI releases Exposure Draft on Accounting Standards on Borrowing Costs

Read more at: http://www.taxscan.in/icai-releases-exposure-draft-accounting-standards-borrowing-costs/11913/
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ICAI Invites Comments on Exposure Draft of Accounting Standard on Related Party Disclosures

Read more at: http://www.taxscan.in/icai-invites-comments-exposure-draft-accounting-standard-related-party-disclosures/11919/
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Quick Reference to "Sectors / Areas in which Foreign Investment is Not Allowed/ Prohibited " :-

1. Government lottery.

2. Private lottery.

3. Online lottery.

4. Gambling.

5. Betting.

6. Casinos.

7. Chit funds.

8. Nidhi Company.

9. Real estate business.

10. Construction of farm houses.

11. Trading in Transferable Development Rights.

12. Manufacturing of Cigars, Cigarettes, Cigarillos, Cheroots.

13. Manufacturing of Tobacco and Tobacco Substitutes.

14. Atomic Energy.

15. Railway Operations.
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Delay in Filing IT Returns cannot be a Ground for Denying Tax Benefits to Assessee: Mumbai ITAT [Read Order]

Read more at: http://www.taxscan.in/delay-filing-returns-cannot-ground-denying-tax-benefits-assessee-mumbai-itat/11890/
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GST Rates on Restaurants & Issues on Composition Scheme: GST Council to Form GoM under Assam FM

Read more at: http://www.taxscan.in/gst-rates-restaurants-issues-composition-scheme-gst-council-form-gom-assam-fm/11895/
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Supreme Court Stays HC Judgment Allowing Assessment where no Incriminating Material was Found during Search [Read Order]

Read more at: http://www.taxscan.in/supreme-court-stays-hc-judgment-allowing-assessment-no-incriminating-material-found-search/11879/
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Delay in Filing IT Returns cannot be a Ground for Denying Tax Benefits to Assessee: Mumbai ITAT [Read Order]

Read more at: http://www.taxscan.in/delay-filing-returns-cannot-ground-denying-tax-benefits-assessee-mumbai-itat/11890/
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Quick Reference to " Commercial Paper " :-

1. The Commercial Paper is a money market instrument.

2. It is Unsecured.

3. It is in the form of Promissory Notes.

4. It was introduced in the year 1990 in india.

5. It can be issued by Primary dealers, All- India financial Institutions, Corporates.

6. The Tangible net worth of the Company as per the latest balance sheet should be minimum of ₹ 4 crore.

7. Working capital limit should be sanctioned by Bank or All India financial Institutions.

8. Rating Requirement is mandatory to issue CP's.

9. It helps to meet short term funding requirement.

10. Min maturity Period should be of 7 days and maximum maturity Period should be of 1 year.

11. Maximum limit of amount will be Approved by BOD or Specified by Credit Rating Agency :- Whichever is lower.

12. It should be raised within 2 weeks from opening date of issue of Subsribtion.

13. CPs can be issued in ₹ 5 lakhs or multiples as a denominations.

14. The renewal of CPs are also considered as Fresh issue of CPs.

15. CPs can be in the form of Promissory Notes or In a Dematerialized form.

16. CPs are always issued at Discount to the Face value.

17. CPs cannot be underwritten.

18. It is absolutely different from Convertible Note.

19. RBI is the Regulator for CPs.

20. Only a Scheduled bank can act as an Issuing and Paying Agent for issuance of CP.
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# *GST Council* forms Group of Ministers (GoM) under Assam FM to decide on GST rates on restaurants, composition scheme for small tax payers.

# *GST Council* has approved a major relief package for exporters in its 22nd Meeting held on 06.10.2017 – Link at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/Press%20note%20export%20package.pdf.

# *GST*: Truckers are on 36 hours strike from today, demand inclusion of diesel in GST.

# *PMLA*: The requirement to collect PAN by jewelers on transaction of selling gems & jewellary in cash has been increased from Rs.50K to Rs.2Lac.

# *MPLA*: Government rescinded the notification specifying the reporting entity under PMLA, i.e. the dealer in precious metals, precious stones and other high value goods having a turnover of rupees two crore in a financial year – Notification, dt.06.10.2017.

# *CBDT* has signed two more advance pricing agreements (APAs) in September with Indian taxpayers viz. automobile and healthcare consulting sectors as it looks to reduce litigation by providing certainty in transfer pricing..
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Assessees with annual turnover of upto Rs 1.50 cr to pay taxes & file returns, quarterly w.e.f. Oct quarter. No GST on advances received by them.

RCM on purchases from unregistered persons, TDS/TCS & full fledged E-way bill postponed till 1-4-18. Press Release Ministry of Finance of 6 Oct.

GST Council has approved the following package of relief and incentives for exporters with immediate affect:–

Within the next 4 days i.e. by 10.10.2017 the held-up refund of IGST paid on goods exported outside India in July would begin to be paid. The August backlog would get cleared from 18.10.2017 and refunds for subsequent months would be handled expeditiously. Other refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT, shall be processed from 18.10.2017 onwards.

To prevent cash blockage of exporters due to upfront payment of GST on inputs etc. Immediate relief is being given by extending the Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes to sourcing inputs etc. from abroad as well as domestic suppliers. Holders of AA / EPCG and EOUs would not have to pay IGST, Cess etc. on imports. Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier.

Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export. The details would be released soon.

The permanent solution to cash blockage is that of "e-Wallet" which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc. The details of this facility would be worked out soon. The Council desired that the “e-Wallet” solution should be made operational w.e.f. 1st April 2018.

Exporters have been exempted from furnishing Bond and Bank Guarantee when they clear goods for export.

Specified banks and Public Sector Units (PSUs) are being allowed to import Gold without payment of IGST. This can then be supplied to exporters as per a scheme similar to Advance Authorization.

To restore the lost incentive on sale of duty credit scrips, the GST on sale-purchase of these scrips is being reduced from 5% to 0%

GST on bunker fuel is being reduced to 5% for both coastal vessels and foreign going vessels. This will boost coastal shipping. It will also improve India's competitiveness.
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*#GST*
*Composition Scheme* has been extended to taxpayers having annual aggregate turnover of up to Rs. 1 crore.

Persons having Annual aggregate turnover up to Rs. 1.5 crores, shall be *required to file quarterly returns* in FORM GSTR-1,2 & 3 and *pay taxes only on a quarterly basis*, starting from the October-December, 2017. Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly basis till December, 2017.

Due Dates for *GSTR-1* - *10.10.17* - GSTR-1 for the month of July.

*The e-way bill* system shall be introduced w.e.f.01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018.

*FCRA*: Govt asks NGOs getting foreign funds to register with Niti Aayog vide order dated 04/10/2017

*#ICAI*
Zone-shifting of Candidates for November - 2017 CA Exams

Admit Card for Intermediate (IPC) and Final November 2017 Examination
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👉🏻ICAI should have powers to penalise audit firms - SEBI.*

(ICAI should have powers to punish audit firms and impose a fine of up to Rs 1 crore on erring auditors, according to the suggestions made by a Sebi panel on corporate governance.)
👇🏻 👇🏻 👇🏻
https://goo.gl/1NSZBA

*👉🏻GST Composition scheme window open for six more months.*

(The Goods and Services Tax (GST) Council has decided to keep open the composition scheme, an easier compliance and tax option, till March 31.)
👇🏻 👇🏻 👇🏻
https://goo.gl/o6Eg4k

*👉🏻13 banks submit data on 13,140 suspicious accounts and 5800 companies.*

(The data, submitted by 13 banks involves 13,140 accounts. Few of the companies have been found to have more than 100 accounts to their names. The highest grosser among these is a company having 2134 accounts, followed by others having accounts in the range of 900, 300 etc.)
👇🏻 👇🏻 👇🏻
https://goo.gl/c5nbFC

*👉🏻Empanelment of Physical Verification Auditors for conducting Physical verification Audit of NHPC Ltd.*

(Company intends to empanel/appoint firms of CA/CMAs as Physical Verification Auditors for its Projects/Power Stations/Units located in the states of Haryana, J&K, Bihar, Himachal Pradesh, Punjab, Uttarakhand, Uttar Pradesh, Arunachal Pradesh, Assam, Manipur, Sikkim and West Bengal.)
👇🏻 👇🏻 👇🏻
https://goo.gl/ojxC3g

*
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Quick Reference to " Variation in Rights of Shareholders" :-

Legal Provision:-

Section 48 of Companies Act, 2013.

Points:-

1. Variation of Shareholder Rights means Differential aspects to any class of Shareholders.

2. Special Resolution or 75% Consent from that particular class holders of issued shares in writing is required.

3. MOA or AOA should have Provision for this aspect.

4. Variation should not interdict / forbid the terms of issue.

5. Dissenting shareholders (min 10% holding of that class) can apply to NCLT in form NCLT-1.

6. Application should be made within 21 days on which consent were given or from the date of resolution.

7. Order of NCLT is required to filed with ROC.
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E-proceeding facilities launched by IT Deptt, to facilitate conduct of assessment proceeding electronically. CBDT Instruction.No. 8/2017 dt. 29.09.17

GST Gyan - RCM on purchases from unregistered persons, TDS/TCS &full fledged E-way bill postponed till 1-4-18. Press Release Ministry of Finance of 6 October 2017
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#Economy:The Govt will soon notify a new threshold for reporting to authorities about transactions in gold and other precious metals and stones with a view to curb parking of black money in bullion.The Govt reversed its August order of bringing gems and jewellery dealers under the purview of the reporting requirement of the Prevention of Money Laundering Act.

#Finance:The GST Council may reduce the number of products in the highest slab, following a series of complaints by state finance ministers, who have argued that several common-use products face a 28% levy, causing hardship to people.

#The Govt will clear pending GST refunds of exporters by November-end and over the next six months no tax will be levied on exports as the Council has decided to revert to the pre-GST era.Over July-August, an estimated Rs 67,000 crore has accumulated as the IGST, of which only about Rs 5,000-10,000 crore will be due as refunds to exporters. While no tax will have to be paid on goods to be exported in the remaining months of the current financial year, from April 1 an e-wallet service will be launched that will give exporters notional credits that can be used to pay GST. The credit in the wallet would be transferable.
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📚LEGAL PROVISION*

_Mostly professionals or disqualified directors or other stakeholders are confused that whether action done by disqualified Directors between the period of after being disqualified under Section 164(2) of Companies Act, 2013 but before issuing list by concerned ROC of those disqualified Directors will have null affect on the act done by them including entering into any contract, agreement , filing any proceeding before the any authorities on behalf of Companies including the defaulting company in which they are possessing position of director or Whether it will be ultra vires to the provision of Companies Act, 2013 and are nullified in all the Companies ._

_Here is answer for question of them._

_Legal Provision of the Day *"Defect in appointment of Directors not to Invalidate Action Taken"* ._

_*Legality*_: _Section 176 of Companies Act, 2013 corresponds to Section 290 of Companies Act, 1956_.

_*Effective*_: _12th of September, 2013_

_*Provision*_: _No act done by person as Director shall be deemed to be invalid , notwithstanding that it was subsequently noticed that his appointment was invalid by reason of any defect or disqualification or had terminated by Virtue of any provision contained in any Act or in the articles of Company:_

_Provided that nothing in this section shall be deemed to give validity to any Act done by the director after his appointment has been noticed by the company to be invalid or to have terminated._
_.

*Brief of Provision*:

_This provision provide a relief to those companies including the defaulting company or Companies, in which the person who was disqualified under Section 164(2) of Companies Act, 2013 to act as Direction for a period of 5 yrs from the date of causing the default specified under the aforesaid subsection are possessing position of director, before being disqualified by such person as Director under aforesaid section has done any Act done by them including entering into any contract, agreement , filing any proceeding before the any authorities on behalf of Companies all those act done by him doesn't have null affect and these act can be further pursued by the Director being not disqualified under Companies Act, 2013 including any law for the time being in force._
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Rs 8,500 crore GST relief for Telangana irrigation projects

https://gstindiaguide.com/rs-8500-crore-gst-relief-telangana-irrigation-projects/
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Synthetic textile industry divided over GST rate revision

https://gstindiaguide.com/synthetic-textile-industry-divided-gst-rate-revision/
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GST to facilitate ease of doing business: EU

https://gstindiaguide.com/gst-facilitate-ease-business-eu/
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Over 40% business entities make zero GST payment

https://gstindiaguide.com/over-40-business-entities-make-zero-gst-payment/
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After GST, Goa Tax Collection Drops 22%, Says Official

https://gstindiaguide.com/gst-goa-tax-collection-drops-22-says-official/
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When will Advance Authority for Rulings (AAR) under GST start Functioning?

Read more at: http://www.taxscan.in/will-advance-authority-rulings-aar-start-functioning/11868/

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*Invitation*
Agarwal Vikas Manch East Delhi is organising Diwali Utsav on Monday (Today) 9th Oct from 5.30 pm onwards at Rajwada Tent, CBD Ground, near Leela Ambiance Hotel, Karkardooma
Kindly Join with family n friends.

📺 *Updates*

➡1. Cash discount by Vodafone to distributors on its products is ‘Commission’ liable for Sec. 194H TDS
Vodafone Mobile Services Ltd. v. Deputy Commissioner of Income-tax, Circle-15(2), Hyderabad

➡2. ITAT dismissed appeal as increased profit on disallowance u/s 40(a)(i) would be eligible for sec.10A relief
Deputy Commissioner of Income-tax v. Ascendum Solutions India (P.) Ltd.

➡3. CIT could direct fresh assessment even if AO conducted ‘no enquiry’ to check correctness of claim: HC
Virbhadra Singh (HUF) v. Principal Commissioner of Income-tax.

🙏;Thank you🙏
Have a nice day

CA Rohit Jaiswal

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Tuesday, 10 October 2017

10 October 2017 Updates