Fast Track Exit*
( FTE ) gives a choice or option to defunct companies to get their names struck off from the ROC In its place, under the Co. Act, 2013 has brought in a process called Removal of Names of Companies.
A co can proceed for closure under this criteria:
1. Within one year of its incorporation if a company fails to commence its business
2. Subscribers to MOA has not paid the subscription amount within 180 days and no declaration filed to this effect
3. When a company voluntarily wants to close, it can after clearing all its liabilities, by obtaining the consent of at least 75% or more shareholders in terms of paid-up capital
4. Not able to carry any business for a period of two years as per new rule and has not sought to call itself a dormant company.
*FOLLOWING TYPE OF COMPANIES CANT REMOVED UNDER FTE:*
1. Listed companies
2. Co delisted due to non-compliance of listing regulations or listing agreement or any other statutory laws
3. Vanishing companies i.e registered under the act or previous company law or any other law for the time being I force and listed with Stock Exchange which has failed to file its return with the ROC and stock exchange for a consecutive period of 2 years and is not maintaining its Regd office at the Address notified during commencement of business.
4. Companies where inspection or investigation is ordered and being carried out or actions on such order are yet to be taken up or were completed but prosecutions arising out of such inspection or investigation are pending in the Court;
5. Companies, where notices under Section 234 of the Companies Act, 1956 (1 of 1956) or Section 206 or Section 207 of the Act have been issued by the Registrar or Inspector and reply, thereto, is pending or report under section 208 has not yet been submitted or follow-up of instructions on report under section 208 is pending or where any prosecution arising out of such inquiry or scrutiny ,if any, is pending with the court;
6. Companies against which any prosecution for an offence is pending in any court
7. Companies whose application for compounding is pending before the competent authority for compounding the offences committed by the company or any of its officers in default;
8. Companies, which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;
9. Companies having charges which are pending for satisfaction; and
10. Companies registered under Section 25 of the Companies Act 1956, or Section 8 of Companies Act, 2013.
A COMPANY CAN’T CHOOSE FTE ROUTE IN FOLLOWING CIRCUMSTANCES:*
An application under FTE route shall not be made if, at any time in the previous 3 months :
1. Its name has been changed or shifted its RO from one state to another.
2. Has made a disposal for value of property or rights held by it, immediately before cesser of trade or otherwise carrying on of business, for the purpose of disposal of gain in the normal course of trading or otherwise carrying on of business;
3. Has engaged in any other activity except the for one which is mandatory or expedient for the purpose of making an application under that section, or deciding whether to do so or concluding the affairs of the company or complying with any statutory requirement
4. Has made an application to the Tribunal for the sanctioning of a compromise or arrangement and the matter has not been finally concluded or
5. Sis being wound up under Chapter XX, whether voluntarily or by the Tribunal.
*STRIKING OFF PROCEDURES *
1. Call Board Meeting to pass Board resolution for the purpose of strike off and to authorize any director to file an application.
2. After Board resolution, check liabilities /Assets of the co., and set off accordingly
3. a special resolution has to be passed in BM
4. File MGT-14 within 30 days of passing a special resolution.
5. An application for removal of the name of the company u/s section 248 (2) shall be made in Form STK-2 along with the fee of INR 5000 with the necessary attachment.
E-Form STK-2 shall be signed by authorized director.
Where the Director Concerned does not have Dsc , a physical copy of the form duly filled in shall be signed manually by the Director duly authorized in that behalf and shall be attached with the Form STK-2 while uploading the Form.
6. E-Form STK-2 shall be certified by CS / CMA / CA in whole time practice.
*ATTACHMENTS ALONG WITH THE E-FORM STK-2*
1. I-bond duly notarized from every director individually or collectively effect that any losses, claim and liabilities on the company, shall be met in full by every Director individually or collectively, even after the name of the company is struck off the Registrar of Companies in Form STK 3;
2. Statement of accounts containing assets and liabilities of the company prepared up to a day, not beyond thirty days before the date of application and certified by a Chartered Accountant;
3. An affidavit in Form STK 4, sworn by each of the existing director/directors before a First Class Judicial Magistrate/Executive Magistrate/Oath Commissioner/Notary, to the effect that the company did not carry on any business since incorporation or that the company did some business for a period up to a date and then discontinued
4. A copy of the special resolution duly certified by each of the directors of the company or consent of seventy-five percent of the members of the company in terms of paid up share capital as on the date of application;
5. Statement regarding pending litigations, if any, involving the company.
KEY POINTS OF CHANGES FROM OLD FTE SCHEME:*
1) Earlier Board Resolution was Sufficient for approval for making application for removal of the name, however, now it is mandatory to Pass Special Resolution or take consent of 75% members in terms of paid up share capital.
2) Earlier the eligibility for applying for FTE was a company not carrying any business operations since last one year, however, now it is changed to a company not carrying any business or operation for a period of two immediately Preceding Financial Years.
3) An additional requirement of certifying the special resolution by each of the directors of the company or consent of the 75% of the members of the company in terms of paid up share capital as on the date of application.
*PROCEDURE 2B FOLLOWED BY ROC 4 FTE *
1. *Notice:* On receipt of application notice shall be given under Section 560(3) giving thirty days time, unless the cause is shown to the contrary, its name be struck off from the Register and the company will be dissolved.
2. *Inviting Objections:* The Registrar shall put the name of applicant and date of making the application on the MCA portal www.mca.gov.in, allowing thirty days time for raising an objection, if any, by the stakeholders.
3. *Notice to tax and other relevant authorities:*
The Registrar need to inform Income Tax Department about companies availing FTE mode and ask for objections within thirty days. RBI, SEBI, etc is to be notified in case of Non-Banking Financial Company and Collective Investment Management Company.
4. *Striking off name:* The Registrar of after expiry of such time mentioned above shall strike its name off the Register and shall send notice under Section 560(5) of the CA, 1956 for publication in the Official Gazette and the applicant company shall stand dissolved from the date of publication of the notice in the Official Gazette
*RESTORATION ORDER*
*U/s 560(6)*
_*An application for restoration can be made by : _*
1. aggrieved company,
2. member
3. creditors
*A company shut down under FTE can be restored on the Register by a Court order within 20 years of it striking off.*
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ITAT Allows Exemption to Donations made by Trust to a University approved u/s 10(23C)(vi) though both the Entities Claimed Deduction on the same [Read Order]
Read more at: http://www.taxscan.in/itat-allows-exemption-donations-made-trust-university-approved-u-s-1023cvi-though-entities-claimed-deduction/14701/
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#Economy:Representatives of around 45 American companies met PM Modi at this year's Global Entrepreneurship Summit in Hyderabad and expressed their commitment to continue investing in India. These representatives were part of a delegation of the US India Strategic Partnership Forum, a newly set-up non-profit organisation focused on deepening business relations between the US and India and enhancing the strategic relationship between the two countries.
#Finance:Ahead of the RBI’s monetary review on Wednesday, rating agency Fitch said the central bank had headroom to "keep the policy rate low" to perk up the economy, which grew "weaker than expected" in the second quarter.There is widespread expectation that the RBI would maintain status quo on the policy rate.Inflation is still running at low levels, weighed down by muted food price inflation. The rupee has also appreciated quite sharply against the dollar since the beginning of this year, despite a narrowing interest rate differential between the US Fed policy rate and the Reserve Bank of India's." These developments give headroom for RBI to keep interest rates low to help lift the economy.
#The Supreme Court is likely to commence final hearing in the long-standing Ram Janmabhoomi- Babri Masjid title dispute from tomorrow, a day before the 25th anniversary of the demolition of medieval-era structure. A specially constituted bench of Chief Justice Dipak Misra and Justices Ashok Bhushan and Abdul Nazeer will be hearing a total of 13 appeals filed against the 2010 judgement of the Allahabad High Court in four civil suits. The high court had then ruled a three-way division of the disputed 2.77 acre area at Ayodhya among the parties -- the Sunni Waqf Board, the Nirmohi Akhara and the Lord Ram Lalla.
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*Disqualification of Directors*
Due to not filing of annual return continued for three financial years. then any Director of such company would be disqualified and would not be eligible for appointment as a Director of any other company for a period of five years from the date on which the defaulting company failed to file annual returns.
*In addition to the above* to ensure proper Corporate Governance and Proper Compliance of provisions of Companies Act, the following action would be implemented:
1. No other efiling of the company would be accepted by the ROC from Directors of defaulting companies for any other company also.
2. CS and Auditors of defaulting companies would not be allowed to sign and certify the filing with MCA-21 system, till the defect is rectified.
3. Members of ICAI, ICSI and ICWAI must not issue any certificates to such defaulting companies.
4. Action will be taken against defaulting companies and their Director in default in coordination with RBI and SEBI.
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Interest Income from Depositing Share Capital in FDs with Bank under constraint is Capital Receipt: ITAT [Read Order]
Read more at: http://www.taxscan.in/interest-income-depositing-share-capital-fds-bank-constraint-capital-receipt-itat/14675/
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Short-Deduction of Tax due to bonafide Confusion would not attract Penalty: ITAT [Read Order]
Read more at: http://www.taxscan.in/short-deduction-tax-due-bonafide-confusion-not-attract-penalty-itat/14682/
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Screening of Films in Multiplex on Revenue Sharing basis would not attract Service Tax: CESTAT [Read Order]
Read more at: http://www.taxscan.in/screening-films-multiplex-revenue-sharing-basis-not-attract-service-tax-cestat/14686/
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These banks offer up to 9.5% interest rate on fixed deposits http://www.timesnownews.com/business-economy/article/these-banks-offer-up-to-95-interest-rate-on-fixed-deposits/138706
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ICAI demands Chartered Accountancy Certificate be treated at par with Graduate and Post-Graduate Degree
Read more at: http://www.taxscan.in/icai-demands-chartered-accountancy-certificate-treated-par-graduate-post-graduate-degree/14695/
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👉🏻Indian CAs in great demand as UAE looks to implement VAT.*
(UAE will be introducing Value Added Tax (VAT) from January 1, 2018. This is similar to the GST. This has led to a demand for Indian experts to help businesses there understand the indirect tax system)
👇🏻 👇🏻 👇🏻
https://goo.gl/mKRk93
*👉🏻Exporters file over 10000 applications for GST refunds.*
(With over 10,000 applications for refunds filed by exporters till November, the GST Network asked exporters to ensure that the claims do not exceed the GST paid in that month)
👇🏻 👇🏻 👇🏻
https://goo.gl/DNGHLx
*👉🏻First post-GST budget likely on February 1.*
(Finance Minister Arun Jaitley is likely to present India's first post-GST and the current government's last full Budget on February 1 next year.)
👇🏻 👇🏻 👇🏻
https://goo.gl/fcQFM5
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ITAT Allows 75% Deduction on Business Promotion Expenditure comprising Credit Card Payments and Club Expenses though there was No Evidence [Read Order]
Read more at: http://www.taxscan.in/itat-allows-75-deduction-business-promotion-expenditure-comprising-credit-card-payments-club-expenses-though-no-evidence/14654/
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Reimbursement of Credit Card Payments Incurred by Director on behalf of the Company during Foreign Visits is not Taxable as Perquisite: ITAT [Read Order]
Read more at: http://www.taxscan.in/reimbursement-credit-card-payments-incurred-director-behalf-company-foreign-visits-not-taxable-perquisite-itat/14646/
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Interest Expenditure on Borrowed Funds is not allowable since Assessee deposited the same in Banks as FDs: ITAT [Read Order]
Read more at: http://www.taxscan.in/interest-expenditure-borrowed-funds-not-allowable-since-assessee-deposited-banks-fds-itat/14662/
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AOs must follow CBDT Instructions in Limited Scrutiny Assessments. Reasons in Writing for expanding scope & PCIT approval must. CBDT Instruction of 30.11.17.
GST: Exporters file Table 6A & GSTR 3B for processing of IGST Refund. File RFD 01A on GSTN portal for Unutilized ITC Refund. Press Release of 29 Nov. 2017.
Goods and Transport Agency (GTA) Service-Where the consignment note had not been issued by the service provider in relation to the transport of goods, appellant will not be covered under scope of GTA on reverse charge basis. 2017-TIOL-4224-CESTAT-MUM.
Common registration cannot be denied merely because appellant had separate electric connections for both units. Both the units are separated by a public road, raw material in both the units are common, there is a common labour work force, common administration/work management, common sales tax registration, common Income Tax assessment and common balance sheet etc.
2017-TIOL-4204-CESTAT-MUM.
Admissibility of documents-Certified photostat of triplicate copy of Bill of Entry is admissible document for taking credit as per Rule 57G(3) of Central Excise Rules, 1944 for the availment of MODVAT Credit.
2017-TIOL-2479-HC-MAD-CX.
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📺 *Updates*
➡1. Reimbursement of exp. to US parent company wasn’t taxable as no profit element embedded in it.
Assistant Director of Income-tax (International Taxation)- Kolkata v. Timken Company
➡2. Sum paid for identifying buyers was to be allowed as deduction while computing profit from sale of property
Principal Commissioner of Income Tax-3, Kolkata v. Entrepreneurs (Calcutta) (P.) Ltd.*
🙏�Thank you🙏�
Have a nice day