31 March 2014

Companies Act-Rules - Article on NPA

MCA notifies rules for additional chapters

MCA vide its notification dated 28th & 31st March 2014 issued rules for additional 4 chapters under the Companies Act 2013. Till now the rules have issued for 14 chapters

New rules issued are :

· Chapter XXVI - Nidhi Rules 2014

· Chapter XXIX - Companies (Adjudication of Penalties ) Rules 2014

· Chapter XXIX - Companies (Miscellaneous ) Rules 2014

· Chapter V - The Companies (Acceptance of Deposits) Rules, 2014.

· Chapter X - The Companies (Audit and Auditors) Rules, 2014.

Please take note that rules for Chapter II has been re-issued on 30th March 2014



30 March 2014

Extension of date for filing Audit Report in form 704 for 2012-13 by developers

Extension of date for filing Audit Report in form 704 for 2012-13 by developers.

Trade Circular 10T dated 29/3/2014

31st March 2014 important date to remember

31st March 2014 important date for following

1. Last date of payment of advance income tax for Financial Year 2013-14.

2.Submission of income tax and wealth tax for the financial year 2012-13.

3. Submission of revised return of income for financial year 2011-12, if required.

4.Payment of Income tax and wealth tax for the undisclosed income and wealth for FY 2006 07 to 2011 12, if return not filed.

5.Payment of due TDS on interest and other payments

6.Phyiscal Stock taking.

7.Cash balance tally.

8.Minimum balance in the asset where income is tax free to minimise disallowance under section 14A of the Income Tax Act.

9.Investment under section 80 C. 80 and others.

Company Identification Number (CIN) Mandatory

CIN is mandatory on company documents such as letter heads, invoices etc.:

Section 12(3)(c) of CA 2013, which will be effective from 1.4.2014, provides that every company shall get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications. Pl ensure compliance.

39 new forms notified effective from 14/04/2014.

39 new forms notified effective from 14/04/2014.

1.       INC-1 Application for reservation of name – old form  1A

2.       INC-2 OPC- Application for Incorporation - New form

3.       INC-3 OPC- Nominee consent form - New form

4.       INC-4 OPC- Change in Member/Nominee - New form

5.       INC-5 OPC- Intimation of cessation - New form

6.       INC-6 OPC- Application for Conversion - New form

7.       INC-7 Incorporation of Co. (Other than OPC) 1

8.       INC-18 Application to Regional director for conversion of section 8 co.

into any other kind of co. - New form

9.       INC-20 Intimation to Registrar of revocation/surrender of license issued u/s 8  - New form

10.   INC.21 Application for commencement of business old form  19, 20

11.   INC-22 Notice for situation or change of situation of registered office old form 18

12.   INC-23 Application to Regional director for approval to shift the registered office from one state to another state or from jurisdiction of one registrar to another within the state - old form 1AD,24AAA

13.   INC-24 Application for change of name old form -  1B

14.   INC-27 Conversion form Pvt. To public or vice-versa old forms -  1B, 62

15.   INC-28 Notice of order of the Court or Tribunal or any other competent authority - old form 21

16.   PAS-3 Return of allotment - old form 2

17.   SH-7 Notice to Registrar for alteration of share capital - old form 5

18.   SH-8 letter of offer - New form

19.   SH-11 Return in respect of buy back of securities - old form 4C

20.   CHG-1 Application for registration of creation or modification of charge (other than debentures) - old form 8

21.   CHG.4 Particulars of satisfaction of charge - old form 17

22.   CHG-6 Notice of appointment or cessation of receiver or manager - old form 15

23.   CHG-9 Application for registration of creation or modification of charge in case of debentures - old form 10

24.   MGT-14 Filing of Resolutions and agreements to the Registrar under section 117 - old form 23

25.   DIR-3 Application for allotment of Director Identification Number - old form  DIN 1

26.   DIR-5 Intimation of change in particulars of Director to be given to the Central Government  - old form DIN 4

27.   DIR-7 Notice of resignation of a director to the Registrar - NEW FORM

28.   DIR-8 Particulars of appointment of directors and the key managerial personnel and the changes among them - Form 32, 32AD

29.   MR-1 Return of appointment of managing director or whole time director or manager - Form 25C

30.   MR-2 Form of application to the Central Government for approval of appointment or reappointment and remuneration or increase in remuneration or waiver for excess or over payment to managing director or whole time director or manager and commission or remuneration to directors - old form 25A

31.   URC-1 Application by a company for registration under section 366 - Old Form 37, 39

32.   FC-1 Information to be filed by foreign company - old form  44

33.   FC.2 Return of alteration in the documents filed for registration by foreign company - old form 49, 52

34.   FC.3 List of all principal places of business in India established by foreign company - old form 52

35.   FC.4 Annual Return - old form  PTII

36.   ADJ Memorandum of Appeal New form  - new form

37.   MSC-1 Application to ROC for obtaining the status of dormant company - new form

38.   MSC-3 Return of dormant companies -  New form

39.   MSC-4 Application for seeking status of active company - new form

28 March 2014

Companies Act Rules notified

Companies Act Rules notified.


MCA - 167 sections

For professionals -MCA is notifying 167 sections, before 31st march rules  for these sections they will notify

Tentative Checklist for immediate actions.

Resolutions to be proposed at the ensuing AGM

1)      Increase in borrowing limit and creation of charge - S/180 (I) (c) & 180 (I) (a)

2)      Accepting Public Deposits - S/73 & 76

3)      Change/ Alteration in AOA –Adopt Table F

4)      Invt. in other body Corporates - S/186

5)      Appointment of Branch Auditors

6)      Related Party transactions, if any - S/188

7)      Appointment of Auditors – Within 3yrs of notification S/139 (2)

8)      Issue of Securities on Pvt. Placement - S/42

9)      Appt of CFO & other KMPs - Board approval as 203

10)   Fixing Remuneration of KMPS - Board approval as 203

11)   Appt. of independent directors - S/149(10) to (12)

Actions immediately to be taken on  notification of the Act

1)      Identify related parties – To be notified to accounts department

2)      Print new Business letters, bills etc with CIN no. – s/12(3) (c)

3)      Devise CSR policy & spending – s/135

4)      Adopt new Whistle Blower Policy – Vigil mechanism – 177(10)

5)      File Return on Public Deposits within 3 months – 74(1)

6)      Return on change in Top 10 shareholders – within 15 days -  S/93

7)      To obtain positive consent for receiving documents by email (S/101)

8)      Obtain certificate of Independence from Directors S/149 (7)

9)   Terms of reference of Audit committee –Additional items to be placed before audit committee at each meeting - S/177 (4)

10)   Nomination & Remuneration policy to be approved by Board – S/178 (3) & (2)

11)   Terms of reference of Stakeholder committee – Additional items to be placed before the Committee - S/178 (6)

12)   Devise Code for independent Directors – Schedule IV

13)   Observe Secretarial standards for Board & General meetings S/118 (10)

14)   Reconstitute Board (within 1year)– for (i) appl. of ID’s for 5yrs (ii) not liable to retire by rotation –S/149 (10) to (13)

15)   Maintain Register of KMPs - S/170

16)   Can pay sitting fees upto Rs. 1lakh S/197 (5)

17)   Check the compliance required by unlisted Public companies (if paid-up/networth exceed prescribed limits)

Additional compliances

1)      To attend at least 1 Board Meeting in 12 months or vacate office S/167 (1) (b)

2)      Change in top 10 shareholders S/93

3)      File Board Resolutions passed  U/S 179

4)      File Report on AGM – S/121

5)      Postal Ballot Applicable to Pvt. Cos – S/110

6)      Directors Responsibility Statement – Clause  (e) & (f) of S/134 (5) have laid down adequate “internal financial controls” (defined in the Act) – To devise policy on internal financial controls.

7)      Auditors – Appoint for 5yrs – Existing limit to be considered S/139 (2) – Ratification every year

8)      To inform auditor & ROC about appointment within 15 days – S/139

9)      Relative of auditor not to hold shares in excess of Rs. 1lakh S/141

26 March 2014

MCA Notifies 183 New Sections of Companies Act,2013

notifies 183 new sections of Companies Act 2013 in Phase IV

The Ministry of Corporate Affairs has notified 183 new sections of the Companies Act 2013 and some sub- sections of 13 sections which were already notified by notification dated 12th September 2013 and remaining schedule, in the fourth phase today, by way of notification dated 26th March 2014. These sections have been notified to come into effect from 1st April 2014. With the notification of these sections, now a total of 283 sections of the new Act stand notified.

With the notification of aforesaid sections, it can be assumed that relevant rules will also be notified shorlty as most of them are dependent on rules.

The sections remaining to be notified are related to National Financial Reporting Authority, Investor and Education Protection Fund, Compromise and arrangement, oppression and mismanagement, winding up, sick companies ,special courts, national company law tribunal. Majority of these sections are not notified due to pending case in Supreme court with respect to the National Company Law Tribunal.

Status as on date:

Total Section

470 ;

Total Sections notified till

Nos. of Section pending

The list of sections notified under Phase III along with title is given below:

Chapter 1 - Preliminary

  • Section 2 – Definitions
    • Clause (2) - Accounting Standards
    • Clause (7) - Auditing Standards
    • Clause (13) - Books of Accounts
    • Clause (31) - Deposits
    • Clause (41) - Financial year
    • Clause (42) - Foreign company
    • Clause (47) - Independent Director
    • Clause (48) - Indian Depository Receipt
    • Clause (62) - One Person Company
    • Clause (83) - Serious Fraud Investigation Office
    • Clause (85) - Small Company
    • Explanation (d) of clause (87)


MCA issues clarification with regard to section 180 of the Companies Act, 2013.

MCA vide circular no 04/2014 dated 25th March 2014 has clarified that the resolution passed under section 293 (Restrictions on powers of Board ) of the Companies Act, 1956 prior to 12.09.2013 with reference to borrowings (subject to the limits prescribed) and / or creation of security on assets of the company will be regarded as sufficient compliance of the requirements of section 180 (Restrictions on powers of Board) of the Companies Act, 2013 for a period of one year from the date of notification of section 180 of the Act.

The clarification has been issued since Ministry has received many representations regarding various difficulties arising out of implementation of section 180 of the Companies Act, 2013 with reference to borrowings and/or creation of security, based on the basis of ordinary resolution.

24 March 2014

ICAI has made amendments to the Auditors Report format

ICAI has made amendments to the Auditors Report format as under

- Announcement 1 : Manner of Reporting on Section 227(3)(bb) of the
Companies Act, 1956. <>

- Announcement 2 : Reference to the Accounting Standards Applicable to
the Companies in the Auditor's Report and Limited Review Reports and
various Engagement Standards.<>

- Announcement 3 : Amendment to the "Auditor's Responsibility" Paragraph
Included in the Independent Auditor's

- Announcement 4 : Use of the Term "Profit and Loss Account" or
"Statement of Profit and Loss" in the Statutory Audit Reports of

- Announcement 5 : Manner of Reporting In Respect of Such Clauses of the
Companies (Auditor's Report) Order, 2003 Which Are Not Applicable to the
Auditee Company. <>

23 March 2014

Banks to remain open on weekend to facilitate tax collection

NEW DELHI: Bank branches will remain open for full day on March 29, 30 and 31 to facilitate tax collection.
While March 29 is a Saturday, March 30 is Sunday and March 31 is the last year of financial year and is a public holiday in some parts of the country.

CBEC to keep its offices open on last three days of this Month

Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs
Subject:  Opening of offices during the week beginning 24th March, 2014 – reg.As you are aware, the bulk of the revenue is received at the end of the month.  However, last week of March 2014 does not have full working days. 29th March is a Saturday, 30th March is a Sunday and 31st March is a public holiday in some parts of the country.  Incidentally, this week also happens to be the last week of the financial year.
2.         The Chairperson, CBEC has also requested the Secretary Financial Services to issue instructions to have the banks open for full day on 29th, 30th and 31st March 2014 so that the efforts made for collections of revenue are reflected appropriately.
3.         I am, therefore, directed to request you to immediately issue trade notices for the information of the trade and also keep your offices, as a special measure, opened on 29th, 30th & 31st March, 2014.  You may also contact the local banks to ensure that the assesses can make their payments electronically and these are uploaded to reflect the actual revenue collections for the financial year.
Yours faithfully,
(Surendra Singh)
Under Secretary to the Govt. of India

ICAI exam site

Check on icai exam site der is a new window called correction window opened wer details of ur online form r der.. confirm dat they r correct. Dis correction window is open from 19th to 25 mar only. Check it n confirm wit icai dat its correct..pass d mssge to your friends as well...

22 March 2014

Amendment to CE and Cenvat Rules

Amendment to Central Excise Rules/CENVAT Credit Rules

Central Govt notifies Central Excise (Second Amendment) Rules 2014 and CENVAT Credit (Fifth Amendment) Rules 2014 w.e.f. date of publication in Official Gazette; Empowers Chief Commissioner of Central Excise to impose restrictions including suspension of registration in case of first / second stage dealers, against duty evasion / default in duty payment or misutilisation of CENVAT Credit;


Further, notifies procedure to be followed in terms of amended Rules 12CCC of Central Excise Rules and 12AAA of CENVAT Credit Rules; Accordingly, Chief Commissioner shall afford opportunity of being heard to delinquent assessee before issuing order against proposal to impose restriction; Rescinds earlier Notification No. 5/2012-CE (N.T), clarifying that proposals pending before authorised officer of CBEC / DGCEI shall be transferred to Chief Commissioner : Finance Ministry Notifications.

21 March 2014

Bank audit allotment

FYI - Till date as per  info following banks allotment finalised: Please update this list by your  comments:
Dena Bank
Allahabad Bank

19 March 2014

Compliances of Service Tax in Banking Sector

Dear Members,
As you may be aware Service tax on Banking and other financial services was imposed w.e.f.16-07-2001. The taxation of services has also undergone a paradigm shift from positive list to negative list in the year 2012. Post implementation of taxation of services based on negative list, service tax compliance has now become an integral part of the banking Sector. Being auditors, it's our responsibility to ensure that provisions of a particular law are duly complied with. While conducting an audit it sometimes becomes difficult to look into all the aspects of various laws. For example, Service Tax compliance while conducting an audit may pose to be a bit difficult area.

Indirect Taxes Committee has taken an initiative in this respect in order to help the auditors in complying with service tax law. It gives me immense pleasure to introduce you to the newly launched publication on "Compliances of Service Tax in Banking Sector" which provides us with a detailed Questionnaire for Service Tax Audit of Banks, answering which will ensure compliance with various service tax regulations. In addition to questionnaire there are annexure(s) wherein information can be asked for from the banks and appendix which help as ready references of law while conducting an audit.

You can download the entire booklet from Knowledge Portal of ICAI, which is available on the following link


Hope the same will assist you in your professional endeavors

Website:  http://www.icai.org for help please visit:http://help.icai.org 

18 March 2014

S. 56(2)(vii) does not apply to bonus & rights shares offered

Sudhir Menon HUF vs. ACIT (ITAT Mumbai)
March 17th, 2014
S. 56(2)(vii) does not apply to bonus & rights shares offered on a proportionate basis even if the offer price is less than the FMV of the shares

14 March 2014

Date of advance tax payment extended

Date of payment of final installment of advance tax if income tax extended to 18th March 2014

10 March 2014

PF Rate Increased

Government of India  has declared a rate of interest of 8.75 per cent on deposits in Employees’ Provident Fund Scheme for the Financial Year 2013-14

08 March 2014

New ITR utilities

New ITR utilities using latest JAVA technology is launched. Visit the Itax efiling website for details.

07 March 2014

Supreme Court on ST on Chit Fund

Chit funds business constituted 'transactions in money' and isn't liable to service-tax; SC dismisses SLP

January 28, 2014[2014] 42 taxmann.com 52 (SC)/[2014] 43 GST 524 (SC)

Service Tax : SC dismisses SLP against judgment of Delhi High Court whereby Chit fund business (including business chit funds), which are 'transactions in money' were held not liable to service tax and Entry 8 of Notification No. 26/2012-ST, providing from partial exemption/abatement in relation thereto, was quashed  

Circular on Sec 234E

THE Central Board of Direct Taxes (CBDT) has received several petitions from deductors/collectors, being an office of the Government ('Government deductors'), regarding delay in filing of TDS/TCS statements due to late furnishing of the Book Identification Number (BIN) by the Principal Accounts Officers (PAO) / District Treasury Office (DTO) / Cheque Drawing and Disbursing Office (CDDO). This has resulted in consequential levy of fees under section 234E of the Income-Tax Act, 1961.
Board has decided to ex-post facto, extend the due date of filing of the TDS/TCS statement prescribed under sub- section (3) of section 200 /proviso to sub-section (3) of section 206C of the Act read with rule 31A/31AA of the Income-tax Rules, 1962.
However Board has clarified that any fee under section 234E of the Act already paid by a Government deductor shall not be refunded. Further this extension is only a one-time exception in view of the special circumstances.
Board states that timely filing of TDS/TCS statements is essential to ensure timely reconciliation of Government accounts and for providing tax credit to the assessees while processing their Income-tax Returns.
Board suggests that since the Government deductor and the associated PAO/ DTO/ CDDO belong to the same administrative setup that regulates the clearance of expenditure, the deductors/collectors may be advised to co-ordinate with the respective PAO/DTO/CDDO to ensure timely receipt of BIN/filing of TDS/TCS statements.
This Circular is addressed to all Chief Commissioners and Directors General of Income Tax. They are supposed to inform all the officers for compliance.

05 March 2014

New CBDT Chairman

R.K. Tewari appointed as CBDT Chairman
Date : March 03 2014
R.K. Tewari appointed as CBDT Chairman.

The Government of India has appointed Mr. R K Tewari as new Chairperson of Central Board of Direct Taxes (CBDT). Mr Tewari is a 1976-batch Indian Revenue Service officer. Before his elevation as Chairman, he was posted as the Member (Legislation & Computerization) at CBDT.

04 March 2014

Pre 2005 currency notes

RBI extends last date of exchanging Pre 2005 currency notes to 1 January 2015.

03 March 2014

ICAI to have TV channel

ICAI have signed an MOU today with MHRD for launching a new TV channel -ICAI TV on 15th August 2014.

Message of CBDT Chief

March 1st, 2014
The CBDT Chairperson, Dr. Sudha Sharma, has, on the occasion of her retirement, pointed out that her endeavour always has been to foster highest standards of ethics and morality and to guard against tendencies which could bring a bad name to the Department. She stated that upholding ethical values and human dignity have remained her guiding principles.
Dr. Sudha Sharma pointed out that as tax collectors, the department had a pivotal role to play and that there was a huge target of collection that had to be met.
The Chairperson also emphasized that the department had to adopt a transparent and humane approach and provide hassle-free service to honest taxpayers as part of the policy.
The Chairperson also listed out all the achievements of the department during her tenure. It may be recalled that Dr. Sudha Sharma has taken charge of the office with the promise that India Will Have The Best Tax Regime In The World.
We wish Dr. Sudha Sharma good luck in her new endeavors after retirement.

Best Wishes

Chartered Accountant

01 March 2014

CE Registration & Quarterly Return

Note on Amendment to Application for Central Excise Registration & Quarterly Return for Importers

CBEC amends Annexure-1 in Form A-1 (Application for Central Excise Registration); Includes 'importer' under Part I (Identification of business requiring registration) and also as a separate category under Serial No. 3; Further, notifies quarterly return form for registered importers w.e.f April 1, 2014; Amends Notification No. 35/2001 CE (N.T) dated June 26, 2001 and supercedes Notification No. 73/2003 CE(N.T) dated September 15, 2003: Finance Ministry Notifications.


Fin Min notifies Central Excise (Amendment) Rules, 2014 and CENVAT Credit (Fourth Amendment) Rules, 2014 w.e.f April 1, 2014; Requires importers issuing invoices eligible for CENVAT credit to mandatorily register with Central Excise Authorities; Such registered importers to submit quarterly return electronically within fifteen days from close of each quarter of a year to the Superintendent of Central Excise; Amends Rules 9(1) of Central Excise Rules, 2002 and Rule 9(8) of CENVAT Credit Rules, 2004 : Finance Ministry Notifications 

Finance Ministry vide. Notification No. 17 / 18 of 2013-C.E.(N.T.) included importer as 'first stage dealer', requiring Central Excise registration which were to come into effect from March 1, 2014. However, the said notifications were rescinded by Finance Ministry vide. Notification No. 5 / 6 of 2014 - C.E. (N.T.).


2014 Guidance Note on Audit of Banks released by Auditing and Assurance Standards Board.

The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued Guidance Note on Audit of Banks 2014 edition. For the benefit of members, complete text of the Guidance Note along with the accompanying appendices etc. can be downloaded at:

Please note that the soft copy of the accompanying CD as uploaded on the website contains only list and link of Master and other relevant Circulars of RBI. However, the CD that will come with the book will contain complete text of Master Circulars as well as General Circulars.

Secretary, AASB


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