August 01, 2017 Oct. 01, 2017 Oct. 31, 2017 August31, 2017 Issue...
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August 01, 2017 –August31, 2017 Issue No. – 008/ 2017 Oct. 01, 2017 – Oct. 31, 2017 Issue No. – 010/ 2017
Transcript of August 01, 2017 Oct. 01, 2017 Oct. 31, 2017 August31, 2017 Issue...
August 01, 2017 –August31, 2017
Issue No. – 008/ 2017
Oct. 01, 2017 – Oct. 31, 2017
Issue No. – 010/ 2017
FROM THE CHIEF EDITOR’S PEN
At the outset, through this column, I want to take a moment and thank you all for appreciating and encouraging WINS. In this edition of our e-newsletter “WINS” (acronym for Whitespan Information and News Services) we have covered the recent updates from RBI, SEBI, MCA, CBDT and various other miscellaneous laws. We have also brought for you an article on shell companies. Hope we not only help you keep updated but also save your time by bringing a brief summary of all the updates through our section on Editor’s Quick Take.
Our Editorial Board comprises the following professionals:
1. Mr. Vinay Shukla - Mr. Vinay Shukla, a Fellow Member of The Institute of Company Secretaries of India (ICSI), a graduate in Law, Commerce and Management is Co-founder of WsA having more than twenty five years’ experience in wide spectrum of corporate functions.
2. Ms. Jaya Yadav - Ms. Jaya Yadav, a practicing company secretary based at Gurgaon is an associate member of The Institute of Company Secretaries of India (ICSI) and a graduate in law and Commerce from Delhi University.
3. Mr. Himanshu Gupta - Mr. Himanshu Gupta has been practicing as an advocate and is an associate member of The Institute of Company Secretaries of India (ICSI) and a graduate in law and Commerce.
4. Ms. Trishna Choudhary - Ms. Trishna Choudhary is an associate member of The Institute of Company Secretaries of India (ICSI) and a graduate in commerce from Delhi University.
In this issue we have covered the following:
Corporate Updates from MCA, RBI, SEBI, CBDT and other miscellaneous laws An article on Shell Companies
Compliance checklist for the month of November and December 2017
We hope all these would be of interest to you.
We invite articles on topics of professional interest. Please do ensure that the article is original, written in good style and adds value for the reader.
Your candid feedbacks are valuable: appreciation will encourage us; criticism will help us improve! Feedbacks can be sent at the following email id:
With warm regardsWINS (Whitespan News and Information Services)October 31, 2017
INDEX
S.No Section Page No.
1 Reserve Bank of India (RBI) 5-15
2 Ministry of Corporate Affairs (MCA) 16-20
3 Securities Exchange Board of India (SEBI) 21-25
4 Central Board of Excise and Customs (CBEC) 26-29
5 Central Board of Direct Taxes (CBDT) 30-31
6 Miscellaneous Laws 32-34
7 Article - Shell Companies 35-40
8 Compliance Checklist 41-50
1. Master Directions - Non-Banking Financial Company – Peer to Peer Lending Platform (ReserveBank) Directions, 2017
Date of Notification October 04, 2017 Effective Date October 04, 2017
The above notification is available at the following link:https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11137&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 04, 2017 has released the Master Directions -Non-Banking FinancialCompany – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. These Directions shall apply toevery Non-Banking Financial Company- Peer to Peer Lending Platform (NBFC-P2P) as defined in theseDirections and provide a framework for the registration and operation of NBFC-P2Ps in India. The directionsprovide for the eligibility criteria, registration procedure for prospective NBFC-P2Ps and existing NBFC-P2Ps,prudential norms, operational guidelines, fund transfer mechanism, Transparency and DisclosureRequirements, Submission of data to Credit Information Companies (CICs), Fair Practices Code, ParticipantGrievance Redressal, Information Technology Framework, Data Security and Business Continuity Plan,Requirement to obtain prior approval of the Bank for allotment of shares, acquisition or transfer of controlof NBFC-P2P, Reporting Requirements, supervision, exemptions and clarification.
2. Section 24 and Section 56 of the Banking Regulation Act, 1949 – Maintenance of SLR and holdings of SLR in HTM category
Date of Notification October 04, 2017 Effective Date October 14, 2017
Copy of the above notification is available at the following link:https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11136&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 04, 2017 has notified that every commercial bank, primary (urban) co-operative bank, state co-operative bank and central co-operative bank shall maintain in India assets (referred to as ‘SLR assets’ in the above Notification) the value of which shall not, at the close of business on any day, be less than 19.5 per cent of their total net demand and time liabilities in India as on the last Friday of the second preceding fortnight, valued in accordance with the method of valuation specified by the Reserve Bank from time to time. The said notification is issued in partial modification of the Notification Ref.DBR.No.BC.73/12.02.001/2016-17 dated June 7, 2017
3. Sovereign Gold Bonds Scheme, Operational Guidelines
Date of Notification October 06, 2017 Effective Date October 06, 2017
Copy of the above notification is available at the following link:https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11138&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 06, 2017 has released the operational guidelines for Sovereign Gold Bonds Scheme with regard to the application, Joint holding and nomination¸ Know-Your-Customer (KYC) requirements, Lien marking, cancellation, Agency arrangement, Processing through RBI’s e-Kuber system, Printing Certificates of Holding, Servicing and follow up, Tradability and Contact details for any queries/clarifications with regard to the same.
Sovereign Gold Bond Scheme is available at the following link:https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11139&Mode=0
4. Master Direction on Issuance and Operation of Prepaid Payment Instruments
Date of Notification October 06, 2017 Effective Date October 11, 2017
Copy of the above notification is available at the following link:https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11142&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 06, 2017 has notified the Master Direction on Issuance andOperation of Prepaid Payment Instruments. These Directions shall come into effect from October11, 2017 however, for the existing authorised Prepaid Payment Instrument (PPI) issuers shall ensurecompliance with the revised requirements on or before December 31, 2017, except where timelineshave been specified in this Direction. The provisions of the Master Direction shall apply to all PPIIssuers, System Providers and System Participants. To read full text of the master direction onIssuance and Operation of Prepaid Payment Instruments please refer the following link:
5. Interest rates for Small Savings SchemesDate of Notification October 12, 2017 Effective Date October 01, 2017
Copy of the above notification is available at the following linkhttps://rbidocs.rbi.org.in/rdocs/content/pdfs/GOI7412102017.pdf
Editor’s Quick Take:
RBI vide its notification dated October 12, 2017 has stated that the interest rates for small savings scheme for the third quarter of financial year 2017-18 starting 1st October, 2017 shall remain unchanged from those notified for the second quarter of FY 2017-18.
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11143&Mode=0
6. Risk Management and Inter-Bank Dealings – Facilities for Hedging Trade Exposures invoiced in Indian Rupees
Date of notification September 15, 2017 Effective date September 15, 2017
Copy of the above notification is available at the following link
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11119&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 12, 2017 with a view to hedge the currency risk arising out of genuine trade transactions involving exports from and imports to India, invoiced in Indian Rupees, with AD Category I banks in India, has decided to permit the central treasury (of the group and being a group entity) of such non-residents to undertake hedges for and behalf of such non-residents with AD Category I banks in India as per the existing Model I and Model II. RBI has also laid down the operational guidelines and terms and conditions for the same.
Editor’s Quick Take:
RBI vide its notification dated October 12, 2017 has released the Scheme of Penalties for bank branchesincluding currency chests based on performance in rendering customer service to members of public. hescheme of Penalties for bank branches including currency chests has been formulated in order to ensurethat all bank branches provide better customer service to members of public with regard to exchange ofnotes and coins, in keeping with the objectives of Clean Note Policy. The Competent Authority to decidethe nature of irregularity will be the Officer-in-Charge of the Issue Department of the Regional Officeunder whose jurisdiction the defaulting currency chest/bank branch is located. Appeal against the decisionof the Competent Authority may be made by the Controlling Office of the currency chest/branch to theRegional Director of the Regional Office concerned, within one month from the date of debit, who maydecide whether the same can be accepted/ rejected and appeals for waiver of penalty made on groundssuch as staff being new/untrained, lack of awareness of staff, corrective action having been taken/will betaken, etc. will not be considered.
7. Master Circular –Scheme of Penalties for bank branches based on performance in rendering customer service to the members of public
Date of Notification October 12, 2017 Effective Date October 12, 2017
Copy of the above notification is available at the following linkhttps://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11147&Mode=0
8. Master Direction on Levy of Penal Interest for Delayed Reporting/Wrong Reporting/Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency ChestBalances
Date of Notification October 12, 2017 Effective Date October 12, 2017
Copy of the above notification is available at the following linkhttps://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11148&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 12, 2017 has released the Master Direction on Levy of Penal Interest for Delayed Reporting/Wrong Reporting/Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances specifying the Penal interest for:
i. Delayed Reporting/Wrong Reporting/Non-Reporting of Currency Chest Transactionsii. Inclusion of ineligible amounts in the currency chest balances
Along with the rates of penal interest and levy of penal interest in respect of currency chests at treasuries
9. Gold Monetisation Scheme, 2015
Date of Notification October 17, 2017 Effective Date October 17, 2017
Copy of the above notification is available at the following link
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11149&Mode=0
Editor’s Quick Take:
RBI vide its notification dated October 17, 2017 with reference to the Gold Monetisation Scheme, 2015Has decided that reimbursement of payments made by banks, relating to Medium and Long TermGovernment Deposit (MLTGD), will be made by Central Account Section (CAS), Nagpur, RBI. Accordingly,banks are advised to pay immediately the interest amount already due to the depositors and to takenote that, in future, payment of interest to the depositors is to be made on the due dates. After makingpayments, the banks may raise claim to Government through RBI (CAS, Nagpur).
10. RBI clarifies that linking Aadhaar to bank accounts is mandatory
Date of press release October 21, 2017
Copy of the above press release is available at the following linkhttps://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=42024
Editor’s Quick Take:
RBI vide its press release dated October 21, 2017 has clarified that linkage of Aadhaar number to bankaccount is mandatory under the Prevention of Money-laundering (Maintenance of Records) SecondAmendment Rules, 2017 published in the Official Gazette on June 1, 2017.
These Rules have statutory force and, as such, banks have to implement them without awaiting furtherinstructions.
1. Transfer of shares to IEPF Authority
Date of Notification October 17, 2017 Effective Date October 17, 2017
Above notification is available at the following link:http://www.mca.gov.in/Ministry/pdf/GC12TranferofShares_16102017.pdf
Editor’s Quick Take:MCA vide its notification dated October 17, 2017 has notified that in terms of Rule 6 of the InvestorProtection and Education Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, asamended from time to time, where the seven year period provided under section 124(5) of the CompaniesAct, 2013 is completed during 7th September, 2016 to 31st October, 2017, the due date for transfer of suchshares by companies shall be 31st October, 2017. Further,i. Demat accounts have been opened by IEPF Authority with NSDL and CDSL through their depository
participant;ii. The said demat accounts will have features and functionality to support IEPF operations through
paperless and digital processes;iii. Companies required to transfer shares in such account shall do so whether such shares are held in
dematerialised or physical form, by way of corporate action;iv. The information related to shareholders, whose shares are being transferred to IEPF’s demat
accounts shall be provided by the companies to NSDL or CDSL as per the prescribed format by the concerned depository; and
v. Separate discussions have been held by the MCA with NSDL and CDSL during which they have agreed tolevy reduced charges on companies towards upload and maintenance of records pertaining to sharestransferred to the special demat account of IEPF Authority. An MOU is being finalised to the effectwhich shall be uploaded on the website www.iepf.gov.in on finalization. Based on the same, the NSDLand CDSL shall notify the charges which shall not exceed those finalised in the MOU.
vi. The cash benefits such as dividend, proceeds realised on account of delisting of equity shares, etc.accruing on account of shares transferred to IEPF shall be transferred by companies to bank accountopened by the authority with Punjab national Bank and linked to the demat account mentioned in theabovementioned circular. Transfer of amount due to be transferred under section 125(2) of theCompanies Act, 2013 or any other amount to aforesaid account is strictly prohibited.
2. The Companies (Registered Valuers and Valuation) Rules, 2017
Date of Notification October 18, 2017 Effective Date:- date of publication in the official gazette
Above notification is available at the following link:http://www.mca.gov.in/Ministry/pdf/RegisteredValues_19102017.pdf
Editor’s Quick Take:
MCA vide its notification dated October 18, 2017 has notified the Companies (Registered Valuers and Valuation) Rules, 2017 covering the eligibility, qualifications and registration of valuers, recognition of registered valuers organisations, cancellation or suspension of certificate of registration or recognition, valuation standards and punishment for contravention or false statement.
3. Relaxation of additional fees and extension of last date of filing AOC- 4 and AOC-4 (XBRL non-Ind AS) under the Companies Act, 2O13-reg.
Date of Circular October 27th , 2017
Above general circular is available at the following link:http://www.mca.gov.in/Ministry/pdf/GeneralCircular14_28102017.pdf
Editor’s Quick Take:
MCA vide its circular dated October 27, 2017 has relaxed the additional fee for filing of AOC-4 and AOC-4 (XBRLnon-IndAS) under the Companies Act, 2013. The MCA has alreadyextended the date of filing of AOC-4 (XBRL E-forms using Ind AS) for the financial Year 2016-2017 without additional fee till 31.03.2018. MCA has granted extension of time for filing offinancial statements for the financial year ended 31.03.2017 in e-forms AOC-4 and AOC 4(XBVRL non –IndAS) and the corresponding AOC-4 CFC e-forms upto 28.11.2017 withoutlevying additional fee.
1. Investments by FPIs in Government Securities
Date of circular October 04, 2017 Effective date October 04, 2017
Above circular is available at the following link:http://www.sebi.gov.in/legal/circulars/oct-2017/investments-by-fpis-in-government-securities_36165.html
Editor’s Quick Take:
SEBI vide its circular dated October 04, 2017 has decided to revise the limit for investment by FPIs in Government Securities, for the October - December 2017 quarter as follows:
Type of Instrument Upper Cap as on July 04, 2017 (INR cr) Revised Upper Cap with effect from October 03,
2017 (INR cr)
Government Debt – General 187,700 189,700
Government Debt – Long Term 54,300 60,300
SDL – General 28,500 30,000
SDL – Long Term 4,600 9,300
Total 275,100 289,300
2. Categorization and Rationalization of Mutual Fund Schemes
Date of circular October 06, 2017 Effective date October 06, 2017
Above circular is available at the following link: http://www.sebi.gov.in/legal/circulars/oct-2017/categorization-and-rationalization-of-mutual-fund-schemes_36199.html
Editor’s Quick Take:
SEBI vide its circular dated October 06, 2017 with a view to bring uniformity in the practice, across Mutual
Funds and to standardize the scheme categories and characteristics of each category has decided to
categorize the MF schemes as per the following:
a. Equity Schemes
b. Debt Schemes
c. Hybrid Schemes
d. Solution Oriented Schemes
e. Other Schemes
The circular also provides for the Process to be followed for categorization and rationalization of schemes.
This circular shall apply to:
a. All existing open ended schemes of all Mutual Funds
b. All such open ended schemes where SEBI has issued final observations but have not yet been launched. c.
All open ended schemes in respect of which draft scheme documents have been filed with SEBI as on date
d. All open ended schemes for which a mutual fund would file draft scheme document.
3. Non-compliance with the Minimum Public Shareholding (MPS) requirementsDate of circular October 10, 2017
Effective Date October 10, 2017
Above circular is available at the following link: http://www.sebi.gov.in/legal/circulars/oct-2017/non-compliance-with-the-minimum-public-shareholding-mps-requirements_36216.html
Editor’s Quick Take:
SEBI vide its circular dated October 10, 2017 in order to maintain consistency and uniformity of approachin the enforcement of MPS(Minimum Public Shareholding) norms mandated under regulation 38 of theListing Regulations, the procedure as mentioned in the circular to be followed by the recognised stockexchanges/depositories, as applicable, with respect to non-compliant listed entities, their promoters anddirectors. The recognized stock exchanges shall review compliance with MPS requirements based onshareholding pattern/ other filings made with them by the listed entities from time to time.
4. Criteria for Settlement Mode of Commodity Derivative Contracts
Date of circular - September 21, 2017 Effective Date September 21, 2017
Above circular is available at the following link:http://www.sebi.gov.in/legal/circulars/oct-2017/non-compliance-with-the-minimum-public-shareholding-mps-requirements_36216.html
RBI vide its circular dated October 16, 2017 have specified broad guidelines for deciding appropriatesettlement mode for commodity derivatives contracts:The first preference of settlement type shall always be by the way of physical delivery.Any exemption from the above i.e. cash settlement of commodity derivatives contract, may be consideredonly in following scenarios with a proper justification
- Physical delivery is difficult to implement due to any reason
- There is availability of reliable benchmark price of the commodity which can be used as reference forsettlement price
Editor’s Quick Take:
1. Conditions and safeguards for furnishing a Letter of Undertaking in place of a Bond by a registered person who intends to supply goods or services for export without payment of integrated tax
Date of Notification October 04, 2017
Above notification is available at the following link:http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-37-central-tax-english.pdf
Editor’s Quick Take:
CBEC vide its notification dated October 04, 2017 has laid down the conditions and safeguards forfurnishing a Letter of Undertaking in place of a Bond by a registered person who intends to supply goods orservices for export without payment of integrated taxi. All registered persons who intend to supply goods or services for export without payment of integrated
tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have beenprosecuted for any offence under the Central Goods and Services Tax Act, 2017 or the IntegratedGoods and Services Tax Act, 2017 or any of the existing laws in force in a case where the amount of taxevaded exceeds two hundred and fifty lakh rupees.
ii. The Letter of Undertaking shall be furnished on the letter head of the registered person, in duplicate,for a financial year in the annexure to FORM GST RFD – 11 and it shall be executed by the workingpartner, the Managing Director or the Company Secretary or the proprietor or by a person dulyauthorised by such working partner or Board of Directors of such company or proprietor.
The provisions of this notification shall mutatis mutandis apply in respect of zero-rated supply of goods orservices or both made by a registered person (including a Special Economic Zone developer or SpecialEconomic Zone unit) to a Special Economic Zone developer or Special Economic Zone unit without paymentof integrated tax.
2. Recommendations made by the GST Council in its 22nd Meeting held under Chairmanshipof the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley in the nationalcapital
Date of Press Release October 06, 2017
Above press release is available at the following linkhttp://pib.nic.in/newsite/PrintRelease.aspx?relid=171466
Editor’s Quick Take:
The Ministry of Finance vide its press release dated October 06, 2017 have released the synopsis of 22nd
meeting of GST Council. Some of the welcome changes are Registration and operationalization of TDS/TCSprovisions to be postponed till 31st March, 2018; The e-way bill system to be introduced in a staggeredmanner with effect from 1st January, 2018 and will be rolled out nationwide with effect from 01st April2018. The last date for filing the return in FORM GSTR-4 by a taxpayer under composition scheme for thequarter July-September, 2017 shall be extended to 15th November 2017. The last date for filing the returnin FORM GSTR-6 by an input service distributor for the months of July, August and September, 2017 shallbe extended to 15th November 2017. Invoice Rules to be modified to provide relief to certain classes ofregistered person. Suspension of the reverse charge mechanism u/s 9(4) of the CGST Act, 2017 and u/s 5(4)of the IGST Act, 2017 till 31st March 2018. Changes in Composition Schemes to simplify compliancestructures for the tax payers. The taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall notbe required to pay GST at the time of receipt of advances on account of supply of goods. The GST on suchsupplies shall be payable only when the supply of goods is made.
3. Clarification on issues wherein the goods are moved within the State or from the State ofregistration to another State for supply on approval basis –Reg.Date of circular October 18, 2017 Effective Date October 18, 2017
Above circular is available at the following link:http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-10-gst.pdf
Editor’s Quick Take:CBEC vide its circular dated October 18, 2017 has issued Clarification on issues wherein the goods are movedwithin the State or from the State of registration to another State for supply on approval basis –Reg.
The goods which are taken for supply on approval basis can be moved from the place of business of theregistered supplier to another place within the same State or to a place outside the State on a deliverychallan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery ofgoods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him sothat he can issue the invoice once the supply is fructified.
Further, all such supplies, where the supplier carries goods from one State to another and supplies them in adifferent State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the IntegratedGoods and Services Tax Act, 2017.
This clarification would be applicable to all goods supplied under similar situations.
1. Clarification related to guidelines for establishing 'Place of Effective Management' (PoEM) in India.
Date of Notification October 23 2017 Effective Date October 23, 2017
Above notification is available at the following link:http://www.incometaxindia.gov.in/news/circular25_2017.pdf
Editor’s Quick Take:
CBDT vide its notification dated October 23, 2017 has issue Clarification related to guidelines forestablishing 'Place of Effective Management' (PoEM) in India.
The PoEM provisions shall not apply to a company having turnover or gross receipts of INR 50 Crores orless in a financial year.
The concept of 'Place of Effective Management' (PoEM) is being used for deciding residency status of acompany, other than an Indian Company.
The Regional Headquarter operates for subsidiaries/ group companies in a region within the general andobjective principles of global policy of the group laid down by the parent entity in the field of Pay rollfunctions, Accounting, HR functions, IT infrastructure and network platforms, Supply chain functions,Routine banking operational procedures, and not being specific to any entity or group of entities per se; itwould, in itself, not constitute a case of BoD of companies standing aside and such activities of RegionalHeadquarter in India alone will not be a basis for establishment of PoEM for such subsidiaries/ groupcompanies.
1. Amendments to the Insolvency and Bankruptcy Board of India (Insolvency ResolutionProcess for Corporate Persons) Regulations, 2016 and the Insolvency and Bankruptcy Board ofIndia (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017
Date of Press Release October 05, 2017
Above press release is available at the following link:http://ibbi.gov.in/webadmin/pdf/press/2017/Oct/Insolvency%20and%20Bankruptcy%20Board%20of%20India-%20Press%20Release%205.10.%202017.pdfEditor’s Quick Take:
IBBI vide its press release dated October 05, 2017 has amended the Insolvency and Bankruptcy Board ofIndia (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Insolvency andBankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations,2017 today. According to the amended regulations, a resolution plan shall include a statement as to how ithas dealt with the interests of all stakeholders, including financial creditors and operational creditors, of thecorporate debtor.
2. Amendments in Foreign Trade Policy 2015-2020.
Date of Notification October 13, 2017Effective Date October 13, 2017
Above notification is available at the following link:http://dgft.gov.in/Exim/2000/NOT/NOT17/Notification_No._33_(English).pdf
Editor’s Quick Take:
The Directorate General of Foreign Trade vide its notification dated October 13, 2017 has notifiedthe Amendments in Foreign Trade Policy 2015-2020. Various provisions of Foreign Trade Policy 2015-20 isamended to enable certain additional duties / taxes / cess exemptions for Advance authorisations, EPCGAuthorisations and units under EOU / EHTP / STP/ BTP Scheme. Accordingly, Import under EPCG Schemeshall be subject to an export obligation equivalent to 6 times of duties, taxes and cess saved on capitalgoods, to be fulfilled in 6 years reckoned from date of issue of Authorisation.
What is Shell Companies?
There is no clear definition of what shell company is in the Companies Act, or any other Act But
typically shell companies include multiple layers of companies that have been created for the
purpose of diverting money or for money laundering. Most shell companies do not
manufacture any product or deal in any product or render any service. They are mostly used to
make financial transactions. Generally, these companies hold assets only on paper and not in
reality. These companies conduct almost no economic activity.
What is a dormant company?
As per Section 455 of the Companies Act, 2013, a company that does not have significant
financial activity or has been inactive can apply to the RoC and obtain the status of a dormant
company
The company shall be a dormant company on the rolls of the RoC until it follows all the
provisions of Section 455. If it fails to do so, the RoC shall have powers to strike of their names
from the Register of Companies.
What is the difference between dormant and shell companies?
A dormant company gets its title in two ways: it has chosen to get a ‘dormant’ status from the
RoC by way of an application and is in compliance of the requirements of Section 455.
Further, in case a company has not filed financial statements or annual returns for two financial
years consecutively, the RoC shall issue notice and include it in the register of ‘dormant’
companies. But a shell company is one which is typically suspected of illegal activities.
Money Laundering Scheme under shell companies
What are the easy way to strike off a shell company from the records?
companies can be removed from the rolls of the Ministry of Corporate Affairs by two means:
a) strike off by Registrar of Companies (RoC) — (Section 248 (1) of the Companies Act, 2013) and b) voluntary strike off — (Section 248 (2) of the Companies Act, 2013). Voluntary closure can be done with
the approval of the board and
According to data provided by the finance ministry, there are about 1.5 million registered companies in India, while only 600,000 companies file their annual return. “This means that a large number of these companies may be indulging in financial irregularities,”
ACS Trishna Choudhary
Currently working with corporate law and governance department of ICSI
S. No
Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
Service Tax Related Compliances
1 Pay Service Tax in Challan GAR-7, collected for
the previous Month by persons other than
individuals proprietors and partnership firms.
*(in case of Payment through Internet banking)
Section 68 Read
with Rule 6
Finance Act,1994
Service Tax Rules
1994
05th&*06th
of Every Month
Service Tax
Authorities
Income Tax Related Compliances
2 Due date for issue of TDS Certificate for tax
deducted in the month of September , 2017
Section 194-IA Income-tax Act,
1961
14 November 2017
Income Tax
Authorities
3 Statement in Form no. 10 to be furnished to
accumulate income for future application (if the
assessee is required to submit return of income
on November 30, 2017)
section
10(21) or 11(2)
Income-tax Act,
1961
30 November 2017
Income Tax
Authorities
4 Annual return of income for the assessment year
2017-18 in the case of an assessee if he/it is
required to submit a report pertaining to
international or specified domestic transaction(s)
section 92E Income-tax Act,
1961
30 November 2017
Income Tax
Authorities
S. No Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
5 Submit copy of audit of accounts to the Secretary,
Department of Scientific and Industrial Research
in case company is eligible for weighted deduction
under [if company has any international/specified
domestic transaction]
section 35(2AB) Income-tax Act,
1961
30 November
2017
Income Tax
Authorities
6 Due date for filing of statement of income
distributed by business trust to unit holders during
the financial year 2016-17. This statement is
required to be filed electronically to Principal CIT
or CIT in form No. 64A
CIT in form No.
64A
Income-tax Act,
1961
30 November
2017
Income Tax
Authorities
7 Audit report under section 44AB for the
assessment year 2017-18 in the case of an
assessee who is also required to submit a
report pertaining to international or specified
domestic transactions under section 92E
section 44AB
section 92E
Income-tax Act,
1961
30 November
2017
Income Tax
Authorities
S. No Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
RBI Related Compliances
8 Monthly statement of short term dynamic
liquidity in Form ALM-I
DNBS
(PD).CC.No.15
/02.01/2000-
2001 dated
June 27, 2001
Circular 10th of Next
month
RBI
9 Monthly return (NBS-6) on exposure to capital
market
Para 13B NBFC Prudential
Norms (Reserve Bank)
Directions, 1998
07th of Every
Month
RBI
10 Monthly Return on Important Financial
Parameters
DNBS (RID) C.C.
No.57/02.05.1
5/2005- 06
dated Sep 6,
2005
Circular 07th of Every
Month
RBI
11 Reporting of actual transactions of ECB in
form ECB-2 within 7 working days (October)
ECB Rules FEMA, 1999 08th November RBI through
Authorized
Dealer
S. No Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
Economic, Industrial & Labour Law Related Compliance
12 Monthly payment of Provident Fund (PF) (Non
Corporate)
(a) Paragraph 38
of Employees
Provident Funds
Scheme, 1952
(a) Employees’
Provident Funds and
Misc. Provisions Act,
1952
(b) Exempted
Scheme
15th Of
Next month
Provident
Fund
Authorities
Trustees of
Provident
Fund
13 File monthly return for employees leaving / joining
during the previous month (Form No.5)
Paragraph 20(2)
read with
Paragraph 36(1)
& (2)
The Employees
Pension Scheme,
1995 (For exempted
establishments
under Employees
Provident Fund and
Misc. Provisions Act,
1952)
15th of
Next Month
Provident
Fund
Commissioner
14 Monthly payment of Provident Fund (PF) (Non
Corporate)
(a) Paragraph 38
of Employees
Provident Funds
Scheme, 1952
(a) Employees’
Provident Funds and
Misc. Provisions Act,
1952
(b) Exempted
Scheme
15th Of
Next month
Provident
Fund
Authorities
Trustees of
Provident
Fund
S. No Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
15 File monthly return for employees leaving / joining
during the previous month (Form No.5)
Paragraph 20(2)
read with
Paragraph 36(1)
& (2)
The Employees
Pension
Scheme, 1995
(For exempted
establishments
under
Employees
Provident Fund
and Misc.
Provisions Act,
1952)
15th of Next
Month
Provident
Fund
Commissioner
16 i) File monthly Return of employees entitled
for membership of Insurance Fund (Form
No.2(IF))
ii) File monthly Return for members of
Insurance Fund leaving service during the
month of April (Form no. 3(IF))
iii) File monthly return of
members joining service during the month of
April (Form no.F4(PS)
Paragraph 10 The Employees
Deposit Linked
Insurance
Scheme, 1976
(For exempted
establishments
under
Employees
Provident Fund
and Misc.
Provisions Act,
1952)
15th of Next
Month
Provident
Fund
Commissioner
S. No Activities Sections/Rules/ Clauses, etc.
Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
17. Payment of ESI contribution for the previous month Regulation 31 Employees’ State
Insurance Act,
1948 and
Employees State
Insurance (Gen.)
Regulations, 1950
21st of Next
Month
ESIC
Authorities
18 Monthly return of Provident Fund for the previous
month Provident funds
Paragraph 38 of
Employees’
Provident Act,
1952
Employees
Provident Funds
and Misc. Scheme,
1952
25th of Next
Month
Provident
Fund
Authorities
19. Monthly return of Provident Fund for the previous
month with respect to International Workers.
Paragraph 36 The Employees'
Provident Funds
Scheme, 1952
25th of Next
Month
Provident
Fund
Authorities
S. No Activities Form No. Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
Good and Service Tax Related Compliances
20. Details of outward supplies of taxable goods and
/or services effected (for the month of August)
GSTR-1 Chapter IX of
CGST Act,2017
10th of Next
Month
Registered
Taxable
Supplier
21. Details of inward supplies of taxable goods and /or
services effected calming input tax credit (for the
month of August)
GSTR-2 Chapter IX of
CGST Act,2017
After the 10th
but before 15th
of Next Month
Registered
Taxable
Recipient
22. Monthly return on the basis of finalization of
details of outward suppliers and inward supplies
along with the payment of amount of tax. (for the
month of August)
GSTR-3 Chapter IX of
CGST Act,2017
20th of Next
Month
Registered
Taxable
Person
23. Quarterly return for Compounding Taxable
person
GSTR-4 Chapter IX of
CGST Act,2017
18th of Next
Succeeding
Quarter
Composition
Supplier
S. No Activities Form No. Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
24. Return for Non- Resident foreign Taxable person GSTR-5 Chapter IX of
CGST Act,2017
20th of Next
Month or
within 7 days
after the last
day of validity
of registration
whichever is
earlier
Non- Resident
Taxable
Person
25. Return for Input Service distributor GSTR-6 Chapter IX of
CGST Act,2017
13th of Next
Month
Input service
distributor
26. Return for authorities deducting tax at source GSTR-7 Chapter IX of
CGST Act,2017
10th of Next
Month
27. Details of suppliers effected through e-commerce
operator and the amount of tax collected
GSTR-8 Chapter IX of
CGST Act,2017
10th of Next
Month
E-Commerce
operator/ Tax
Collector.
S. No Activities Form No. Acts/Regulations etc.
Compliance Due Date
To whom to be submitted
28. Final Return GSTR-10 Chapter IX of
CGST Act,2017
Within 3
months of date
of cancellation
or date
cancellation
order ,
whichever is
later.
Taxable
person whose
registration
has been
surrendered
or cancelled
29. Details of Inward supplies to be furnished by a
person having UIN
GSTR-11 Chapter IX of
CGST Act,2017
28th of the
month
following the
month for
which
statement is
filed.
Person having
UIN and
Calming
refund
For further information please contact:
NCR OF DELHI MUMBAI LGF, 152P, Sector 38, 506, Arcadia, 195, Nariman Point, Near Medanta, the Medicity, Mumbai – 400 023 Gurgaon 122-002 Telephone – 0124-2204242, 63
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