EPF Act to be amended to include firms with 10 workers

Delhi : Government plans to amend the Employees Provident Fund Act to bring more workers under the ambit of retirement fund body EPFO by reducing the threshold for coverage of firms to 10 workers, Lok Sabha was informed today. Labour and Employment Minister Bandaru Dattatreya said the plan is to amend the law so that firms with ten employees can also be brought under the ambit of EPFO to ensure more workers come under the umbrella of social security

CLARIFICATION ON ISSUANCE OF RUPEE BONDS TO OVERSEAS INVESTORS BY INDIAN COMPANIES

General Circular No: 09/2016 

dated 3rd August 2016 
issued by MCA

Rupee bond – Clarification on applicability of chapter III and rule 18 of Companies (Share Capital and Debenture) Rules. 2014 to the issue of rupee bond - It is clarified that unless otherwise provided in the circular/ directions/ regulations issued by Reserve Bank of India, provisions of Chapter III of the Act and rule 18 of Companies (Share Capital and Debenture) Rules. 2014 would not apply to issue of rupee denominated bonds made exclusively to persons resident outside India.

The Ministry has received references from stakeholders seeking clarity on applicability of provisions of Chapter III of the Companies Act, 2013 (Act) and rule 18 of Companies (Share Capital and Debenture) Rules, 2014 to the issue of rupee bonds by Indian companies exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions.

2. The matter has been examined in the Ministry in consultation with Reserve Bank of India. The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by RBI as part of ECB Policy framework. It is, accordingly, clarified that unless otherwise provided in the circular/ directions/ regulations issued by Reserve Bank of India, provisions of Chapter III of the Act and rule 18 of Companies (Share Capital and Debenture) Rules. 2014 would not apply to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions as stated above. Necessary changes in Companies (Share Capital and Debenture) Rules. 2014 in this regard are being made.
3. This issues with the approval of the competent authority.

UPDATES

MCA

MCA has issued clarification regarding issue of rupee bonds by Indian Companies exclusively to persons resident outside India in accordance with applicable secetoral regulatory provisions. Pursuant to references received from stakeholders in this regard, MCA in consultation with RBI has clarified that unless otherwise provided in the circular/ directions/ regulations issued by RBI, provisions of Chapter lll of the Act and Rule 18 of the Companies (Share Capital and Debenture) Rules. 2014 could not apply to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions. Necessary changes in Companies (Share Capital and Debenture) Rules, 2014 in this regard are also being made. The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by RBI as part of ECB Policy framework.

 

GST

The Rajya Sabha on Wednesday passed the 122^nd Constitutional Amendment Bill, thereby empowering the Centre and the state legislatures to have concurrent powers to make laws on GST. The GST will have two components keeping in mind the federal structure of India: the Central GST (CGST) and the State GST (SGST). The amendment would eliminate multiple taxes on firms and help ease of doing business. However, the new tax regime would have different impact on different sectors. Overall, it is expected to have a positive impact on the economic development of India. The Government plans to roll out GST from 1^st April, 2017

Updates

1. Revised e-form AOC-4 (XBRL) after including mandatory CSR/CARO related details with updated C&I Taxonomy is likely to be available on MCA portal in Sep 2016.
2. MCA21 Portal to be unavailable tomorrow 06.08.2016 (Saturday) from 8:00 am to 6:00 pm IST. Stakeholders are requested to plan accordingly.
3. RBI, on Thursday, launched a website named “Sachet” where information regarding entities that are allowed to accept deposits, lodge complaints, and share information regarding illegal acceptance of deposits by unscrupulous entities can be obtained.
4. Furnace oil can be used as processing materials or consumable stores for captive generation of power. [Wockhart Ltd. vs. Sales Tax Officer- 2016 (8) TMI 134 – Gujarat High Court].
5. Roads and boundaries, railway sidings, jetty pire, bouys, mooring and navigation structure can be considered as plant and machinery for the purpose of granting of depreciation under Sec. 32. Commissioner of Income Tax vs. Kandla Port Trust - 2016 (8) TMI 111 – Gujarat High Court].
6. Technical Inspection and Certification Service of seeds is not a sovereign function and the respondents are liable to pay service tax. [CCE, Rohtak vs. Haryana State Seed Certification Agency - 2016 (8) TMI 147 - CESTAT Chandigarh]

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RBI launches website Sachet to tackle fraud

The Reserve Bank of India (RBI) on Thursday launched a website from which anyone can obtain information regarding entities that are allowed to accept deposits, lodge complaints, and share information regarding illegal acceptance of deposits by unscrupulous entities.

Named Sachet, the website is expected to be helpful in coordination between regulatory authorities and law enforcement agents throughout the states so any unscrupulous money-raising activities can be curbed. Collective investment schemes (CISs) have come under the scanner and the regulators, particularly Securities and Exchange Board of India (Sebi) has cracked down on such activities after millions were duped by Sahara, Sarada, Pearl Agro, and such schemes.

http://sachet.rbi.org.in/

Updates:

1. Today (05.08.16) is the last date to file IT returns for AY 2016-17 by individuals, HUF, Partnership firms (without audit). J & K assesses to file by 31.08.16.
2. Rajya Sabha passes GST Constitutional Amendment Bill on 03.08.2016 with Key Amendments.
3. MCA issues clarification on Issuance of rupee bonds to overseas investors by Indian Companies. MCA General Circular No. 09/2016 dated 03.08.16.
4. Expenditure incurred on club membership fees of employees is now admissible as business expense.  [(Foods and Inns Ltd. vs. Assistant Commissioner of Income-tax, Circle 10(2), Mumbai) [2016] 71 taxmann 299 (Mumbai - Tribunal)]
5. No Ban on Journalists to attend & report Court Proceedings. Notification No. 682 031.A1-76183/2007 dated: 30.07.2016 

Updates:

1.  CBDT to come up with FAQs on Dispute Resolution Scheme, to settle appeals pending with IT commissioners.
2. 05.08.2016 is the last date to file IT returns for AY 2016-17 by individuals, HUF, Partnership firms (without audit). J & K assesses to file by 31.08.2016.
3. Constitution (122nd) Amendment Bill, 2014 enabling levy of GST by Central Govt. as well as State Govts. is finally passed by Rajya Sabha with 100% in favour of the same. Now it shall go back to Lok Sabha to approve the amendments made by Rajya Sabha. Thereafter it shall be ratified by at least 16 States before being presented to the Hon'ble President for his assent.
4. Excess payment of service tax can be adjusted in subsequent months.