MCA modified New version of various Forms, w.e.f 1st August, 2015

MCA modified Version of Forms Form 20B, Form 23AC, Form 21A, Form 23ACA, Form 66, Form 23ACA (XBRL), Form 4 LLP, Form FC-4, Form 23B and Form FC-1, w.e.f 1st August, 2015.

EXTENSION OF DUE DATE OF FILING RETURN OF WEALTH FOR A.Y. 2015-16

The Central Board of Direct Taxes (“CBDT”) vide Notification F. No. 328/08/2015-WT dated July 27th, 2015 has extended the due date of filing return of wealth for assessment year 2015-16.

Earlier, CBDT vide order F.No.225/154/ 2015/ETA-II dated June 10th, 2015 under section 119 of the Income-tax Act  had extended the “due date” for filing Return of Income for assessment year 2015-16 in respect of assessees falling under clause (c) of explanation 2 to sub-section (1) of section 139 of the Income-tax Act from July 31st, 2015 to August 31st, 2015.

In view of the same, the “due date” for filing Return of wealth by such assessees for assessment year 2015-16 also stands extended from July 31st, 2015 to August 31st, 2015.

BIG RELIEF TO INDIAN COMPANIES WITH OVERSEAS SUBSIDIARIES

MINISTRY ALLOWS FILING OF ‘UNAUDITED’ ACCOUNTS OF FOREIGN SUBSIDIARIES WITH REGISTRAR OF COMPANIES

The Ministry of Corporate Affairs (“MCA”) has relaxed the norms requiring Indian companies with overseas subsidiaries to file ‘audited’ financial statements of such foreign subsidiaries with the Registrar of Companies (“RoC”) in India. This is after consulting with The Institute of Chartered Accountants of India ("ICAI"), the Ministry has clarified that even ‘unaudited’ financial statements of foreign subsidiaries can be filed with the RoC and will be treated as due compliance of Indian company law.

This exemption will be allowed in case of a foreign subsidiary which is not required to get its financial statements audited as per legal requirements prevalent in the country of its incorporation, and which does not get its financial statements audited. Moreover, Ministry has also clarified that format of financial statements of foreign subsidiaries should be, as far as possible, in accordance with the Companies Act 2013 (No. 18 of 2013) and should need to be translated in English, if the original accounts are not in English. In case this is not possible, a statement indicating the reasons for deviation may be placed/ filed along with such financial statements. 

Further, the Ministry has also clarified that a company holding a general meeting after giving a shorter notice (as provided under Section 101 of Companies Act, 2013) may also circulate financial statements (to be laid/considered in the same general meeting) at such shorter notice.

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BLACKMONEY: E-FILING LINK TO DECLARE ILLEGAL ASSETS LAUNCHED

The Income Tax department has launched a link for e-filling on its official website for declaring illegal foreign assets and black money using the one-time compliance window notified recently by government. The link has been provided on the official e-filing portal of the department- https://incometaxindiaefiling.gov.in. The relevant 'FORM 6' can be used to declare undisclosed assets under the compliance window of the new anti-black money law. According to the scheme, such a declaration filed online by an individual or entity will have to mandatory bear a "digital signature" for validation. The new two-page form brought out for this purpose has been categorized as 'FORM 6' and has a three-page annexure for the "statement of undisclosed assets located outside India". Those availing the one-time 'compliance window' would be required to pay a tax of 30% and a penalty of a similar amount. 

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GOVT EXTENDS DEADLINE FOR COMMENTS ON COMPANIES ACT

The Companies Law Committee set up by the Government to make recommendations on issues arising from the implementation of the Companies Act, 2013 had invited suggestions and comments from stakeholders to assist its deliberations. These suggestions and comments were invited through the Ministry of Corporate Affairs” online portal www.mca.gov.in  upto 21st July, 2015. Government received a lot of requests from various stakeholders seeking more time for submission of suggestions and comments. To enable stakeholders to provide well researched inputs, it has been decided by the government to receive suggestions and comments upto 31st July, 2015.

                         
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PROCESS FOR REGISTRATION UNDER DVAT

Now a days,  i saw a lot of people wanted to start their own business (as a Manufacturers, Traders, Exporters and Dealers etc..) but do not know how to make a start.

Well, it is due to the compassion in regulation by our govt. that we can easily start a business under above mentioned categories. We just required a TIN (CST+VAT number). Now the question arise is that what is TIN ?, Who requires it ? and How to obtain it ?

After reading this article you will able to answer the aforesaid question easily...

TIN (Tax Information Network)

It is a unique number allotted by Commercial tax department of respective State. It’s an eleven  digit number to be mentioned in all VAT transactions and correspondence. TIN number is used to identify dealers registered under VAT. First two digits of TIN indicate the issued state code. However, Other 9 digit of TIN creation may differs by state governments.

TIN is applied for both sales done within a state or between two or more states. Tin is also being used to identify dealers in the same way like PAN, to identification of assesses under income tax Act.

Who should register for TIN

TIN number registration is required for Manufacturers, Traders, Exporters and Dealers. When new registration is undertaken under VAT or Central Sales Tax a new TIN will be allotted under registration number. The TIN number should appear on all Quotations/Orders/Invoices by both Sending Company and Receiving Company.

Documents required to acquired a TIN Number

ID Proof / Address proof / PAN card of proprietor with six photographs

Address proof of Business premises

1st Sale / Purchase Invoice, copy of LR/GR & payment/collection proof with bank statement

Surety/Security/Reference

Practical Procedure to acquire TIN

i                 Dealer seeking registration would submit some basic details such as name, constitution, PAN and contact details online.

ii               PAN is verified from NSDL.

iii             On successful PAN verification, dealer will be provided login id and password through e-mail

iv             The dealer would login, fills up registration forms and upload supporting documents such as address, identification proof, etc.

v               Dealer to take a print out of the application filled online and submit the signed copy of the same along with relevant documents such as constitution of business, partnership agreement etc in the concerned ward.

vi             A computerized receipt will be issued by the ward to the dealer. The receipt should contain a Computer generated date on which application (hard copy) with documents is received.

vii           Generation of receipt would push the application into the login of concerned Ward in charge. Counting of 15 days begins with the generation of this receipt.

viii         The Ward VATO would approve/reject/issue deficiency memo based on the facts of the case.

ix              The above action is required to be completed within 15 days as per DVAT Act and SLA.

x                Registration certificate will be sent to the dealer at his indicated Principal Place of Business through registered speed post.

xi              Ward VATO would assign the registration application to VATI for physical inspection. This verification would be completed within 3 months of issue of the Registration certificate to the dealer.

xii            Ward VATI would enter verification report in the system through his/her login Id and password Within a week of verification.

xiii          The verification report would be available in Ward VATOs login.

xiv          The Ward VATO will initiate action on adverse report, if any, submitted by ward VATI within 3 days.

xv            These issues with the prior approval of Commissioner, Value Added Tax.

Source : http://dvat.gov.in/website/home.html

Hope this will help...

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COMPANY REGISTRATION PROCESS FOR NON RESIDENT INDIAN (NRI’s)

With over 20 million in population and with investment size of over US$4000 million in last 10 years, NRI plays an important role in Indian Growth history. NRI are those individuals who are the citizen of India but are resident outside India. We often overlook the term NR with NRI. However, both the terms are very much different and Indian legal system has different set of laws for both of them. NRI are citizen of India, i.e. they hold the valid Indian passport but are residing outside India, and however, if the NRI gets the citizenship of other country, then he will have to surrender his Indian passport and then he will be treated as foreign national i.e. Non-resident (“NR”). Laws are always complex and in India laws are very complex. Though, it’s not possible to get into the details through articles but we can have a broader idea about how it is different for NRI to run business in India.

Investments in India are governed by the Foreign Direct Investment (“FDI”) policy and FEMA Regulations. FDI policy contains set of rules which are to be followed while investing in India and it is sector specific, i.e. there are different rules for different sector.

It provides two entry routes to invest in India.

1. Automatic Route: It means that a person can invest in India, without taking any approval subject to the limit specified.

2. Approval Route: It means investment can be made only with the prior approval from the Reserve Bank of India (“RBI”). There are many forms of business like Private Company, Partnership etc. However, a NRI cannot freely invest in any form. Entry routes differ according to the form you take to invest. It works like a chain and it went like this

Prohibited sector includes Lottery business, chit funds, Real estate business or construction of farm house, Manufactures of cigars, Tobacco etc., Railway, Atomic etc.

Now, after considering the above policy, an eligible NRI may seek to incorporate a company in India. There are three types of companies can be formed in India, however, OPC cannot be formed by NRI.

Now let us see the steps to incorporate a company in India by NRI’s:-

·         APPLY FOR DSC: DSC is a basic requirement to start the registration process. To apply for DSC, NRI will have to submit application accompanied by income tax PAN (Permanent Account Number, e.g ANXPS****R), Address proof notarised by Indian embassy at the country where he resides. It generally takes 1-3 days.

·         APPLY FOR DIRECTOR IDENTIFICATION NUMBER (DIN): After DSC is acquired; now applicant should apply for DIN number. DIN application in Form DIR 3 will be submitted along with declaration, PAN card and address proof in prescribed format. It shall be noted that one director should be a resident of India (as per new rules). It takes one day.

·         NAME APPROVAL: After allotment of approved DIN, the applicant shall apply for Name approval application in Form INC-1. Name should be unique and should not be prohibited (refer Name Availability Guidelines). Name approval may take 3-6 days.

·         APPLICATION FOR INCORPORATION: After Name approval the applicant shall apply for incorporation application. This shall be accompanied by prescribed documents such as residential proofs, identity proofs, and Address proofs for registered Office. Form shall also be accompanied by declaration and certificate by a professional. This can take 4-6 days. MOA and AOA are drafted at this stage only.

·         APPOINTMENT OF DIRECTORS: This form shall be filed with the form of incorporation. Through this form, director gives their consent to act as a director of the proposed companies. This form shall also be accompanied by the declaration in prescribed formats.

·         REGISTERED OFFICE: After the incorporation, this form shall be filed within 30 days from the date of incorporation. This form shall be accompanied by address proof of registered office.

Good news for workers as the Government hikes minimum wage to Rs. 160/ a day

After a long time i.e., 2 year, Government  of India hikes minimum wage of all the workers from Rs. 137 to Rs. 160 per day dated July 7, 2015. The above increase will be applicable from 1st of July that means from now workers of all scheduled employment  will get Rs.

160 per day instead of Rs 137 as earlier.

The decision has been taken to increase the retail inflation for industrial workers. Minister of state for labour and employment Mr. Bandaru Dattatrya asked in his letter to all the Cheif Minister to take necessary steps for fixation/ revision of the  rates of minimum wage in respect of all scheduled employment in states.

Earlier, rate of wages was revised to  Rs. 137 form Rs. 115 per day effective from 1 July, 2013.