Newsletter Dated 26th July, 2016

News Updates dated 26th July, 2016

Thoughts of the day

"DO WHAT IS RIGHT, NOT WHAT IS EASY"

• CBDT placed the draft rules for stakeholders comments/views regarding manner of determination of amount amount received by company for use of its shares under different circumstances.The comments and suggestion on the draft rules may be sent by 31^st July, 2016 electronically at the email address,ustpl1@nic.in.

• If service complaints related to Name Reservation or Company Incorporation are not resolved within 2 working days after a service ticket is raised, Stakeholders may escalate the matter by sending an email to CRC.Escalation@mca.gov.in only in the event of tickets not being resolved within 2 working days. Stakeholders are advised to normally wait for resolution of tickets within the stipulated time and not send e-mails as soon as tickets are raised. Action on e-mails will be taken only in respect of cases where tickets have not been resolved within 2 working days. Stakeholders should clearly mention the Helpdesk ticket SR number & date on which ticket was raised in the subject line along with specific problem details.

• The empowered committee of State FMs for GST will meet today i.e. on Tuesday to discuss two major issues: (i) 1% tax on inter-state supply of goods and services to help manufacturing states; and (ii) Exclusive adjudicating powers to state to assess and scrutinise entitites with annual turnover of upto Rs. 1.5 Crore.

• The Board of the Silicon Valley-based Yahoo! has agreed to sell its core internet operations and land holdings to Version Communications for $ 4.8 billions.

• Tiger Global- backed online classifieds firm Quikr on Monday said it had acquired Hiree, an online hiring platform, focused on white collar jobs for an undisclosed sum.

• Tetsuya Takano, Chairman and Director of Ricoh India has resigned on Monday, a week after admitting its accounts appear to have been "falsified".

• RBI has slapped a penalty on Bank of Baroda , HDFC and PNB for violating know your customer (KYC)/ anti-money laundering (AML) norms. Bank has asked all banks to conduct an internal audit of their KYC/AML mechanism to prevent such lapses.

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Newsletter Dated 25th July, 2016

Newsletter Dated 25th July, 2016

• RBI vide Notification No. RBI/FIDD/2016-17/37 dated 21st July, 2o16 has notified master directions on matters relating to lending to Micro, Small & Medium Enterprises Sector.

• MCA vide Notification dated 21st July, 2016 has notified the National Company Law Tribunal Rules, 2016.

• MCA Vide Notification dated 21st July, 2016 has notified the National Company Law Appellate Tribunal Rules, 2016.

• CBDT vide Notification No. 61/2016 dated 20th July,2016 has notified the districts of the State of Telangana, West Bengal and Bihar to considered as backward areas under the section 32 and 32AD of the Income Tax Act, 1961.

• CBEC vide Circular No. 33/2016- Custom dated 22nd July, 2016 has  has decided to merge the two facilitation schemes namely ACP and AEO into a combined three-tier AEO programme, and also enhance the scope of these programmes so as to provide further benefits to the entities who have demonstrated strong internal control system and willingness to comply with the laws administered by the Central Board of Excise and Customs.

• Union Railway Minister, Suresh Prabhu on Sunday inaugurated the first green train corridor between Rameswaram and Manamadurai, in Tamil Nadu developed jointly by the Indian Railway and DRDO.

• Development both inside and outside Parliament have again cast a shadow on prospects of the goods and sales tax (GST) constitutional amendment Bill, pending in the Rajya Sabha, which is likely to be taken up on Monday.

• The Finance Ministry will seek Cabinet Approval soon for a draft Bill to streamline and institutionalize a dispute for public-private partnership(PPP) projects.

• The Group of 20 economies (G-20) reiterated a pledge to use all policy tools to help boost confidence and growth, while stepping up an emphasis on fiscal and structural measures rather than pumping additional monetary stimulus.

• Bengaluru based education techonology form Byju's says it is in advance stages of talks to raise $50 million in funding, which will help it expand into the US, the UK and other countries over the next few months.

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Busniness News

Business News of the last week of June

• International Accounting Standards Board (IASB) has issued limited amendments to the International Financial Reporting Standards (IFRS) 2,Share-based Payment. IFRS 2 deals with the financial reporting of share-based payment transactions by an entity.

• A participatory note which is nothing but offshore derivative instruments (ODIs) is not illegal and is regulated in manner prescribed under SEBI (Foreign Portfolio Investors) Regulations. SEBI can asks FPI to specify its terms and parties.

• The Department of Revenue in stricter measures on tax defaulters has decided to block the Permanent Account Number, cancel their cooking gas subsidy and ensure non-sanction of loans by Banks, among others. The measures are contained in the Income Tax department’s Central Action Plan for 2016-17.

• Federal Reserve Chair Janet Yellen said on Tuesday the US economy faces “considerable uncertainty” from slower domestic acitivity and from a possible British vote to break with the European Union.

• ·   The Government of India on Monday morning swung into action to liberalise foreign investment rules in nine sectors-aviation, pharmaceutical, defence, food trading, retail and television broadcasting, animal husbandary, broadcasting carriage services and private security agencies, branding it as a gateway for job creation and Make in India. This announcement came two days after Reserve Bank of India (RBI) Governor Raghuram Rajan’s announced his decision not to seek a second term.
  
  
  ·    Merger talks between Reliance Communications (RCom) and Aircel will be extended by a couple of weeks, as both parties are thrashing out the final contours of the deal with their bankers.
  
  
  ·   The tenure of the Committee formed on implementation of One Rank, One Pension Scheme has been extended upto the middle of December this year.
  
  
  ·  The Jammu and Kashmir government on Monday introduced a Bill in the state Assembly, seeking taxes on goods entering the state through e-commerce portals, with the aim to safeguard local traders and the tax collection system.
  
  
  ·    Japan’s exports fell for an eight consecutive months in May as shipments to China, the US and Europe slumped, undermining Prime Minister Shinzo Abe’s efforts to revive the economy.

• ·   Sectoral regulator Telecom Regulatory Authority of India (Trai) will soon write to the Department of Telecommunications (DoT) proposing to set up an ombudsman to protect the rights of consumers and resolve their complaints.

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Updates

Regulatory Updates of the last week of June

• The MCA21 system will be temporarily unavailable from 8:00 am to 4:00 pm IST on Sunday, 26th June 2016 for system maintenance. Stakeholders are requested to plan accordingly.

• Form AOC-4 is likely to be revised on MCA21 Company Forms Download page w.e.f 26th June 2016. Stakeholders are advised to download the latest version before filing.

• CBEC vide Notification No.  27/2016-Customs (ADD) dated 23rd June, 2016 seeks to impose definitive anti-dumping duty on "Poly Vinyl Chloride (PVC) Paste Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand and European Union for a period of five years.

• SEBI Vide Circular No. SEBI/HO/MRD/DP/CIR/P/2016/60 dated 22nd June, 2016 has reviewed the framework of position limits for currency derivatives contracts.

• Forms AOC-4 XBRL, GNL-1, INC-6, INC-2 and CRA-2 are likely to be revised on MCA21 Company Forms Download page w.e.f 25th June 2016. Stakeholders are advised to check the latest version before filing

•  Ministry of Corporate Affairs on its portal has placed FAQs on CRC regarding reservation of name and incorporation of Companies. To read the FAQs Click Here….

• SEBI has placed consultation paper on amendments to SEBI (PORTFOLIO MANGERS) REGULATIONS, 1993 to seek comments from the public for the purpose of laying down an enabling framework for the registration of Eligible Fund Managers to manage Eligible Investment Funds pursuant to insertion of Section 9A in the Income Tax Act, 1961. Suggestions/ Comments can be forwarded by email to naveens@sebi.gov.in latest by July 03. 2016. For Consultation Paper Click Here….. 

• CBDT vide Notification No.48/2016 dated 20^th June, 2016 has notified the Income–tax (15th Amendment) Rules, 2016.

• CBEC Vide Notification No. 40/ 2016-Customs dated 21^st June, 2016 seeks to further amend notification No. 53/2011-Customs dated 01st July, 2011 so as to provide deeper tariff concessions in respect of specified goods imported from Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA) w.e.f. 30.06.2016.

• CBEC vide Notification No. 39/2016-Customs dated 21^st June, 2016 seeks to further amend Notification No. 96/2008-Customs dated 13.08.2008 so as to include ‘Republic of Togo’ and ‘Republic of Chad’ in the list of countries eligible for preferential tariff under the said notification.

• Penalty could not be waived off on grounds of financial hardship if taxpayer failed to deposit collected tax: CESTAT- Delhi.

• Annual filing forms for Companies Act, 1956 - 23AC, 23ACA, 23B, 20B, 21A are likely to be available on MCA21 portal by mid-August 2016. Stakeholders are requested to plan accordingly.

• Ministry of Finance vide Notification dated 18th June, 2016 has notified Public Provident Fund (Amendment) Scheme, 2016.Now subscribers are allowed for premature closure of his account or account of a minor of which he is gurdian, on a written application to Account Office on the grounds: treatment of serious alimnets or life threatening diseases and for higher education. This facility is available for the account which has completed five years.

• RBI vide Press Release: 2015-2016/2935 dated 17th June 2016 in its First Bi-monthly Monetary Policy Statement - 2016-17,  stated that in order to make the process of registration of new NBFCs smoother and hassle free, it has been decided to simplify and rationalise the process of registering new NBFCs. The new application forms will be simpler and the number of documents required to be submitted will be reduced to a minimum i.e. from 45 to 8.Also, registration of some categories of NBFCs will be on fast track mode.

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