31 August 2013

HUF-LLP PARTNER

SECTION 5 OF THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 - PARTNERS - WHETHER HINDU UNDIVIDED FAMILY (HUF)/ITS KARTA CAN BECOME PARTNER/DESIGNATED PARTNER (DP) IN LIMITED LIABILITY PARTNERSHIP (LLP)
GENERAL CIRCULAR NO. 13/2013 [F.NO. 1/13/2012-CL-V], DATED 29-7-2013
It has come to the notice of the Ministry that some Hindu Undivided Families (HUFs)/Kartas of such families are applying to become partner/ Designated partner (DP) in LLPs and a question has arisen whether a 'HUF' or a karta can be allowed to do so. The matter has been examined in consultation with Ministry of Law.
2. As per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. A HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its karta can not become designated partner in LLP.
3. This issues with the approval of Secretary, MCA

ST Return Due Date Extended


ORDER NO 4/2013-Service Tax, Dated : August 30, 2013
In exercise of the powers conferred by sub-rule(4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st October 2012 to 31st March 2013, from 31st August, 2013 to 10thSeptember, 2013.
The circumstances of a special nature, which have given rise to this extension of time, are as follows:
"Difficulties have been faced by assessees in uploading the offline utilities".
F.No.137/99/2011-Service Tax
Himani Bhayana
Under Secretary (Service Tax) 
Central Board of Excise and Customs


26 August 2013

NO TDS ON SERVICE TAX PORTION


ATDS breather on service tax portion


The Rajasthan High Court, in the case of Rajasthan Urban Infrastructure Development Project, ruled that no tax need be withheld under Section 194J on the service tax payable on professional/ technical fees.
Interestingly, the Central Board of Direct Taxes had in an earlier circular held that the scope of withholding tax under Section 194J includes 'any sum' by way of professional/ technical services, and withholding tax applies on the service tax component as well.
However, the High Court ruled that if service tax is payable in addition to professional/ technical fees under the contract, the withholding tax will be restricted to the fees, thereby highlighting that examination of contract terms is imperative.
This ruling may also be relevant in the context of other similarly worded withholding tax provisions.

22 August 2013

Very Important Alert on e Filing of Tax Audit Report


Dear Members,

Please note that there is clear instructions from Income-tax Department wherever there is requirement in the Form to be submitted a signed copy of document by an Assessee/ CA as an attachment, upload the scanned copy of the same documents.

Please see the instruction in ITD website.

Please adhere to the instruction while e filing the Balance Sheet and Profit and Loss while uploading the tax audit report.

10 August 2013

Parliament Passes Companies Bill,2012

Dear Members,

Parliament Passes the Historic Companies Bill 2012

             
The Parliament has passed the historic Companies Bill 2012, moved by Shri Sachin Pilot, Minister of Corporate Affairs. The Bill was passed by the Rajya Sabha here today which had already been passed by the Lok Sabha many months ago (in December 2012). Shri Pilot has termed it as a historic day for the country as it will usher in a new era in the Corporate Governance.
The new Companies Bill, on its enactment, will allow the country to have a modern legislation for growth and regulation of corporate sector in India. The existing statute for regulation of companies in the country, viz. the Companies Act, 1956 had been under consideration for quite long for comprehensive revision in view of the changing economic and commercial environment nationally as well as internationally. The new law will facilitate business-friendly corporate regulation, improve corporate governance norms, enhance accountability on the part of corporates/ auditors, raise levels of transparency and protect interests of investors, particularly small investors.
The salient features of the new Companies law are: Business friendly corporate Regulation/ pro-business initiatives; e-Governance Initiatives; Good Corporate Governance and CSR; Enhanced Disclosure norms; Enhanced accountability of Management; Stricter enforcement; Audit accountability; Protection for minority shareholders; Investor protection and activism; Better framework for insolvency regulation; and Institutional structure. Other important features of the Companies Bill, 2012 are:  
(i)   Enhanced Accountability on the part of Companies
(a) In addition to the concept of Independent Directors (IDs) introduced, the provisions in respect of their tenure and liability etc have been provided. Code for IDs provided in a new Schedule to the Bill. Databank for IDs proposed to be maintained by a body/institute notified by the Central Government to facilitate appointment of IDs. (Clauses 149(10); 149(11); 149(7); 150);
(b) Corporate Social Responsibility (CSR) Committee of the Board proposed in addition to other Committees of the Board viz Audit Committee, Nomination and Remuneration and Stakeholders Relationship Committee. These committees shall have IDs/non executive directors to bring more independence in Board functioning and for protection of interests of minority shareholders. (Clauses 135, 177 and 178);
(c)  Provisions in respect of vigil mechanism (whistle blowing) proposed to enable a company to evolve a process to encourage ethical corporate behavior, while rewarding employees for their integrity and for providing valuable information to the management on deviant practices. (Clause 177 (9) and 177 (10));
(d)   New provisions suggested for allowing re-opening of accounts in certain cases with due safeguards. (Clause 130 and 131).
(ii)     Audit Accountability:
(a) Rotation of auditors and audit firms being provided for. (Clause 139 (2));
(b) Stricter and more accountable role for auditor being retained. Provisions relating to prohibiting auditor from performing non-audit services revised to ensure independence and accountability of auditor.  (Clause 141 and Clause 144);
(c) National Advisory Committee on Accounting and Auditing Standards (NACAAS) proposed to be renamed as National Financial Reporting Authority (NFRA) with a mandate to ensure monitoring and compliance of accounting and auditing standards and to oversee quality of service of professionals associated with compliance. 
(iii) Facilitating Mergers/ Acquisitions:
Simplified procedure (through confirmation by the  Central Government), laid down for compromise or arrangement including for merger or amalgamation of holding companies  and wholly owned subsidiary (ies), between two or more small companies and for such other class or classes of companies as may be prescribed. This would result into faster decisions on approvals for mergers and amalgamations resulting effective restructuring in companies and growth in the economy. For other companies, such matters would be approved by Tribunal. (Clause 233 and 232).
(iv)   Investor Protection:
(a) Acceptance of deposits from public subject to a more stringent regime. (Clause 76);
(b) Provisions for Class Action Suits revised to provide minimum number of persons who may apply for such suits. Safeguards against misuse of these provisions also being included. (Clause 245).
(v)   National Company Law Tribunal (Tribunal): Keeping in view the Supreme Court's Judgment, on the 11th May, 2010 on the composition and constitution of the Tribunal, modifications relating to qualification and experience etc of the members of the Tribunal have been made. Appeals from Tribunal shall lie to National Company Law Appellate Tribunal. (Chapter XXVII).
-----------------------------

CBEC on VCES

Dear Members,
The CBEC has issued Circular No. 170/5 /2013 ST dated 08.08.2013 (as attached) clarifying references received by the Board seeking further clarifications as regards the scope and applicability of the VCES Scheme. Some of the issues raised with reference to the Scheme have been clarified by the Board vide circular No. 169/4/2013-ST, dated 13.5.2013. The Union Finance Minister, Mr P. Chidambaram, has also released a booklet containing Frequently Asked Questions (FAQ) on Service Tax Voluntary Compliance Encouragement Scheme, 2013 in New Delhi today in the presence of Revenue Secretary, Chairperson and other members of Central Board of Excise & Customs and media.
Service Tax Voluntary Compliance Encouragement Scheme (VCES) announced by the Finance Minister in his Budget speech has come into effect on 10 th May, 2013. The objective of the scheme is to encourage disclosure of Tax dues and compliance of Service Tax law by the persons who have not paid service tax dues for the period from Oct, 2007 to Dec, 2012, either on account of ignorance of law or otherwise. On payment of the tax dues relating to the said period there will be complete waiver of interest, penalty and other proceedings/ consequences.

Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant

IndianCAs: Key Highlights of Companies Bill,2012

 

Key Highlights of Companies Bill,2012


  1. Incorporation of a One Person Company has been permitted.
  2. Numbers of permissible members in private company has been raised to 200 as against existing limit of 50 members.
  3. Listed companies shall have at least 1/3rd of the total number of directors as Independent Directors and the Central Government may prescribe the minimum number of Independent Directors for any class of public companies.
  4. Nominee director cannot be regarded as Independent Director.
  5. Maximum term of ID has been restricted to five years at once subject to a maximum of two such terms.
  6. Appointment of at least one woman director on the board of prescribed classes of companies has been made mandatory.
  7. Appointment of at least one director resident in India, i.e. a director who has stayed in India for at least 182 days in the previous calendar year, is made mandatory for all companies. 
  8. Maximum number of directors has been increased from twelve (12) to fifteen (15) directors .Further no Central Government approval is required to increase the maximum no. of directors beyond fifteen(15). Shareholders of companies may do so by passing a special resolution.
  9. A person can hold directorship of up to 20 companies, of which not more than 10 can be public companies.
  10. No listed companies shall appoint: 
            i. an individual as auditor for more than one term of five consecutive years, and
           ii. an audit firm as auditor for more than two terms of five consecutive years.

    11. Shareholders are at liberty to decide by passing resolution that audit partner and the audit team, be rotated every year

    12. CSR has been made mandatory for a company having net worth of Rs. 500 crore or more, or turnover of Rs.1,000 crore or more or net profit of Rs. 5 crore or more during any
           financial year.

    13. Such company is required to constitute a Corporate Social Responsibility Committee of the board (CSRC) which shall consist of three or more directors , out of which at least one
           director shall be an independent director.

    14. Such company shall spend, in every financial year, at least 2 % of the average net profits of the company made during three immediately preceding financial years, in pursuance of its              Corporate Social Responsibility Policy (CSRP).

    15. The provision for establishment of Serious Fraud Investigation Office (SFIO) by the Central Government is another significant feature of the bill.

    16. SFIO is empowered to arrest in respect of certain offence involving fraud.

    17. Changes have also been made to the grounds for winding up a company.

    18. Some other features of the bill include-

          i. Financial year will be uniform for all companies i.e. April-March.

         ii. Restriction on buyback of shares within one year from the last buy back.

         iii. Voting through electronic means.

        iv. Capping director's remuneration at 5% of the net profits of the company.

         v. The concept of Dormant Company has been introduced.

        vi. Special courts for speedy trials.

| Ashwin Nagar | FCA and SAP-Finance & Consolidations |+919833015352
Success is not permanent and failure is not final
 







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09 August 2013

IndianCAs: The Companies Act, 2012 - Knowledge Sharing [1 Attachment]

 
[Attachment(s) from Ashwin Nagar included below]

Dear Friend,
 
Please find the attached New companies bill, 2012 passed by Rajya sabha yesterday and which was passed in Lok Sabha on 18th Dec, 2012.

Have a happy reading.

Shared by: Viju patel <rajuvijupatel@rediffmail.com>

Thanks,

| Ashwin Nagar | FCA and SAP-Finance & Consolidations |
Success is not permanent and failure is not final
 






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Attachment(s) from Ashwin Nagar

1 of 1 File(s)

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Further, your attention is invited:

The messages on this group are approved only when the moderator finds it of immense importance to the members at general, otherwise, this group is not used for discussion or as discussion forum.
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Empanel as Concurrent Auditors

BANK OF MAHARASHTRA invites online applications from practicing firms of Chartered Accountants, in the prescribed format, who are willing to...