MOF to Launch ‘Project Lnsight’ Soon to Tap the Tax Evaders Owning Black Money

The Ministry of Finance (MOF) is likely come out soon with a big project called the ‘Project Insight’ for catching hold of the tax evaders in the country, for which the ministry has also floated a tender worth Rs. 150 crores to establish the project as discussed in the Parliamentary Standing Committee of finance to widen the tax base and which shall be handled under the ‘Project Insight’.

The project would involve the highest degree of data analytics and software and the infrastructure that goes along with the ‘Project Insight’.

The project is also aimed to rank the tax evaders in terms of the quantum of tax evaded, so that the highest amount of the tax evaders can become the targets for the ministry.

The #CBDT Notification to Introduce new form for Reporting of #CSR Expenditure

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]

Income-tax

NOTIFICATION

New Delhi, the 29th day of July, 2015

S.O. 2070 (E).─ In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1) These rules may be called the Income-tax (Tenth Amendment) Rules, 2015. (2) They shall be deemed to have come into force with effect from the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in Appendix-II, for FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7, the following FORMS shall respectively be substituted,

To download the forms, please visit the below link:

http://www.incometaxindia.gov.in/

Black Money Probe Team Pulls up SEBI

A Supreme Court-appointed special investigation team (SIT) on unaccounted money has come down heavily on the creation of such funds through stock exchanges and participatory notes (P-notes). In a report, the SIT said the Securities and Exchange Board of India (Sebi) should have an effective monitoring mechanism to study unusual rises in stock prices and the use of stock exchanges to evade taxes through long-term capital gains.

Sebi has also been asked to put in place a mechanism to monitor the beneficial owners of P-notes.The SIT has recognised the recent steps taken by the regulator to scrutinise cases of tax evasion through  exchanges.

Sebi has been sharing such information with the income tax department. Now, the SIT has directed it to share that with the Financial Intelligence Unit, too.

The investigation into market manipulations shows the modus operandi involves companies with poor financial fundamentals raising huge capital by allotment of preferential shares to various entities. This is followed by a sharp rise in share prices, once preferential allotment is carried out, through circular trading. The artificially inflated stocks are then offloaded through companies funded by those seeking to convert unaccounted money into ‘white’ money.

Recently, Sebi had barred about 250 entities, both individuals and companies; the overall funds involved in this could be  Rs 20,000 crore.

The SIT, however, isn’t satisfied with a ban on such entities, advocating these entities be prosecuted under the Sebi Act. “The Enforcement Directorate should be informed to take action under the Prevention of Money Laundering Act for the predicate offences”.

Though Sebi is considered to be heading a multi-agency probe on black money creation in domestic markets, the regulator has been criticised for not intervening in these cases on time.

The SIT advised Sebi to red-flag instances pertaining to trading volumes, entities contributing to trading volume and financial backgrounds of firms through annual returns.

According to SIT, information with Sebi on ‘beneficial owners’ should be on individuals. “In no case should the information end with name of a company,” it said. The regulator has been tasked with keeping information on promoters or directors who exercise effective control over the company holding these derivative instruments.

Revised Draft Indian Financial Code

Press Information Bureau 
Government of India
Ministry of Finance
23-July-2015 14:59 IST

Revised Draft Indian Financial Code Hosted on the Home Page of the Ministry of Finance; Comments/Suggestions Invited by 8th August, 2015 

The Financial Sector Legislative Reforms Commission (FSLRC) set up on 24th March 2011, for re-writing the financial sector laws to bring them in harmony with the current requirements, submitted its Report to the Government on March 22, 2013.  The Commission inter aliarecommended a non-sectoral, principle-based legislative architecture for the financial sector, by restructuring existing regulatory agencies and creating new agencies, wherever needed for better governance and accountability.

The Commission presented its Report to the Government of India on 22th March 2013. The Report is in two parts: Volume I – titled “Analysis and Recommendations” and Volume II – titled the “Draft Law” consisting of the Draft Indian Financial Code (IFC).

The Draft IFC along with the Report of the FSLRC were placed in public domain on the home page of website of the Ministry of Finance on 28th March 2013.  Comments on the Draft IFC and the Report were invited from the public at large and all stakeholders through a Press Release on 6th June 2013. Hindi version of the Report was subsequently placed on the Ministry of Finance website in Sept 2013. A dedicated e-mail >feedback-fslrc@nic.in< was created to receive online comments.  Further, comments were requested from select Ministries/Departments and Regulatory Authorities. Copies of the report in English and Hindi versions were sent by the Hon’ble Finance Minister to all Members of Parliament in October 2014. Copies of the Report were also sent to all State Governments/Union Territories, and to Universities, Research/Academic Institutions, Bank Associations etc. in India for giving wide publicity and inviting comments. 

The  Draft IFC has been revised in the light of the comments received and hosted now as Revised Draft IFC on the home page of the Ministry of Finance at >www. finmin.nic.in<.   The modifications mainly relate to: strengthening the regulatory accountability of financial agencies, removing the provision empowering FSAT to review Regulations, rulemaking and operational aspects of capital controls, monetary policy framework and composition of the Monetary Policy Committee (MPC), regulation of systematically important payment system and others, removing the provision of special guidance etc. Further the modifications have taken into consideration the enactments subsequent to the submission of the FSLRC report; namely The Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act) and Securities Laws (Amendment) Act, 2014. However, the modifications in the revised Draft IFC remain consistent with the overall structure and philosophy of the FSLRC Report.

All stakeholders concerned are requested to forward comments/suggestions that they may wish to submit on the Revised Draft IFC  by 8thAugust 2015 by e-mail to >feedback-fslrc@nic.in< or in hard copy to FSLRC Division, Department of Economic Affairs, Ministry of Finance, Room No 30, North Block, New Delhi-110001.

Conditions,Safeguards & Procedures of Digitally Signed Invoices in Central Excise and Service Tax

In pursuance of sub-rule (5) of rule 10 and sub-rule (9) of rule 11 of the Central Excise Rules, 2002 made under section 37 of the Central Excise Act, 1944 (1 of 1944) and sub-rule (5) of rule 5 and sub-rule (2) of rule 4C of the Service Tax Rules, 1994 made under sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs hereby specifies the following conditions, safeguards and procedures for issue of invoices, preserving records in electronic form and authentication of records and invoices by digital signatures, namely:-

1. Every assessee proposing to use digital signature shall use Class 2 or Class 3 Digital Signature Certificate duly issued by the Certifying Authority in India. 

2. (i) Every assessee proposing to use digital signatures shall intimate the following details to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise, at least fifteen days in advance:-

a)    name, e-mail id, office address and designation of the person authorised to use the                digital signature certificate;

b)   name of the Certifying Authority;

c)    date of issue of digital certificate and validity of the digital signature with a copy of the            certificate issued by the Certifying Authority along with the complete address of the said     Authority:

Provided that in case of any change in the details submitted to the jurisdictional Deputy Commissioner or Assistant Commissioner, complete details shall be submitted afresh within fifteen days of such change.

(ii)  Every assessee already using digital signature shall intimate to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise the above details within fifteen days of issue of this notification.

3. Every assessee who opts to maintain records in electronic form and who has more than one factory or service tax registration shall maintain separate electronic records for each factory or each service tax registration.

4. Every assessee who opts to maintain records in electronic form, shall on request by a Central Excise Officer, produce the specified records in electronic form and invoices through e-mail or on a specified storage device in an electronically readable format for verification of the authenticity of the document and the request for such records and invoices shall be specified in the letter or e-mail by the Central Excise Officer.

5. A Central Excise Officer, during an enquiry, investigation or audit, in accordance with the provisions of section 14 of the Central Excise Act, 1944 and as made applicable to Service Tax as per the provisions contained in section 83 of the Finance Act, 1994, may direct an assessee to furnish printouts of the records in electronic form and invoices and may resume printouts of such records and invoices after verifying the correctness of the same in electronic format; and after the print outs of such records in electronic form have been signed by the assessee or any other person authorised by the assessee in this regard, if so requested by such Central Excise Officer.

6. Every assessee who opts to maintain records in electronic form shall ensure that appropriate backup of records in electronic form is maintained and preserved for a period of 5 years immediately after the financial year to which such records pertain.

7. This notification shall come into force on the date of its publication in the Official Gazette.

Foreign Investment in India by Foreign Portfolio Investors

1. Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000- RB dated May 3, 2000, as amended from time to time and to A.P. (DIR Series) Circular No. 71 dated February 3, 2015 and A.P. (DIR Series) Circular No. 73 dated February 6, 2015 in terms of which all future investments by an FPI within the limit for investment in corporate bonds shall be required to be made in corporate bonds with a minimum residual maturity of three years.

2. The Reserve Bank has been receiving enquiries about the applicability of the aforesaid directions on investment by FPIs in security receipts (SRs) issued by the Asset Reconstruction Companies (ARCs). It is clarified that the restriction on investments with less than three years residual maturity shall not be applicable to investment by FPIs in SRs issued by ARCs. However, investment in SRs shall be within the overall limit prescribed for corporate debt from time to time.

3. The aforesaid directions come into force with immediate effect. Further operational guidelines, if any, will be issued by SEBI. All other existing conditions for investment by FPIs in the debt market remain unchanged.

4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

RBI Circular on Issue of Shares under Employees Stock Options Scheme

RBI/2015-16/128
A.P. (DIR Series) Circular No.4

July 16, 2015

To

All Category – I Authorised Dealer banks

Madam/Sir,

Issue of shares under Employees Stock Options Scheme and/or sweat equity shares to persons resident outside India

Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to Regulation 8 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, notified by the Reserve Bank vide Notification No. FEMA. 20/2000-RB dated 3rd May 2000, as amended from time to time.

2. In terms of the extant instructions, an Indian company can issue shares under Employees’ Stock Option (ESOP) Scheme, by whatever name called, to its employees or employees of its Joint venture or Wholly owned overseas subsidiary/subsidiaries who are resident outside India, directly or through a Trust, provided that the scheme has been drawn in terms of regulations issued under the SEBI Act, 1992 and face value of the shares to be allotted under the scheme to non-resident employees does not exceed 5 per cent of the paid up capital of the issuing company. The Trust or Indian company has to ensure compliance with the above conditions and comply with the reporting requirement.

3. On a review, it has been decided that an Indian company may issue “employees’ stock option” and/or “sweat equity shares” to its employees/directors or employees/directors of its holding company or joint venture or wholly owned overseas subsidiary/subsidiaries who are resident outside India, provided that :

The scheme has been drawn either in terms of regulations issued under the Securities Exchange Board of India Act, 1992 or the Companies (Share Capital and Debentures) Rules, 2014 notified by the Central Government under the Companies Act 2013, as the case may be.
The “employee’s stock option”/ “sweat equity shares” issued to non-resident employees/directors under the applicable rules/regulations are in compliance with the sectoral cap applicable to the said company.
Issue of “employee’s stock option”/ “sweat equity shares” in a company where foreign investment is under the approval route shall require prior approval of the Foreign Investment Promotion Board (FIPB) of Government of India.
Issue of “employee’s stock option”/ “sweat equity shares” under the applicable rules/regulations to an employee/director who is a citizen of Bangladesh/Pakistan shall require prior approval of the Foreign Investment Promotion Board (FIPB) of Government of India.
4. The issuing company shall furnish to the Regional Office concerned of the Reserve Bank of India under whose jurisdiction the registered office of the company operates, within 30 days from the date of issue of employees’ stock option or sweat equity shares, a return as per the Form-ESOP (given as Annex to this circular).

5. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents /customers concerned.

6. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 notified through Notification No. FEMA.344/2015-RB dated June 11, 2015, vide G.S.R. No. 484 (E) dated June 11, 2015.

7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(B.P. Kanungo)
Principal Chief General Manager

 The circular can also be accessed at the link given below.

Top 4 MNCs Audit Firms Face Charge due to Unauthorized Practice of Law

Complaint filed before Bar Council of Delhi alleging unauthorized practice of law by top 4 multinational audit firms.

The Society of Indian Law Firms (SILF) which professes to be the apex body of law firms in India has filed a complaint before the Bar Council of Delhi against 4 of the biggest multinational audit and accounting firms PwC, Deloitte, KPMG and EY alleging that they have been unauthorizedly practicing law.

Following receipt of the individual complaints by SILF, the Bar Council of Delhi has issued notice to all four firms seeking replies on or before 7th August. The council has also directed firm representatives to be present in person on 7th August, 2015 failing which ex-parte orders will be passed.

SILF wants the Bar Council of Delhi to direct the Big 4 firms and its affiliates not to engage in the alleged unauthorised practice of law and has also sought appropriate legal action to be initiated against them.

According to the complaint,”by engaging in the unauthorised practise of the profession” the Big 4 firms “have acted in violation of Sections 29 of the Act and Rules aforementioned and are, therefore, liable to be punished with 6 months imprisonment for unauthorised practise of the profession of law liable under Section 45 of the (Advocates) Act.” The complaint has also named the global top brass of the firms, along with other senior India-based officials.

#FAQ’s on #Secretarial #Audit under #Companies Act, 2013

The provision of Secretarial Audit specifies that:

Every listed company and a company belonging to other class of companies as may be prescribed shall annex with its Board’s report made in terms of sub-section (3) of section 134, a secretarial audit report, given by a company secretary in practice, in such form as may be prescribed.

It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company.

The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1).

The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1).

In view of the above provision the Institute of Company Secretaries of India have come out with the FAQ’s on Secretarial Audit which will help the professionals in deriving the best of the quality while undertaking such audit.

Please click on the below link to follow the FAQ’s.

#RBI Circular on Prepaid Payment Instrument #PPI

RBI/2015-16/123
DPSS.CO.PD.No. 58/02.14.006/2015-16

July 09, 2015

All Prepaid Payment Instrument Issuers, System Providers, System Participants and all other Prospective Prepaid Payment Instrument Issuers

Madam / Dear Sir

Prepaid Payment Instrument (PPI) guidelines – Introduction of New Category of PPI for Mass Transit Systems (PPI-MTS)

A reference is invited to the Master Circular on Policy Guidelines on Issuance and Operation of Pre-Paid Payment Instruments in India issued vide RBI/2014-2015/105 DPSS.CO.PD.PPI.No. 3/02.14.006/2014-15 dated July 1, 2014 (updated as on December 03, 2014) outlining the features as well as the requirements for issuance and operations of PPIs.

2. In the process of moving from cash based payments to electronic payments, the migration of micro and small value cash payments can play a significant role in achieving the vision of less-cash society. One such area where a large number of small value cash payments take place relates to mass transit systems. Therefore, based on a review, a new category of semi-closed Prepaid Payment Instruments (PPI) is being introduced with the following features:

The semi-closed PPIs will be issued by the mass transit system operator (PPI-MTS) after authorisation under the Payment and Settlement Systems Act, 2007 to issue and operate such semi-closed PPIs;

The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS;

Apart from the mass transit system, such PPI-MTS can be used only at other merchants whose activities are allied to or are carried on within the premises of the transit system ;

The PPI-MTS issuer will ensure on-boarding of merchants (only those permissible as under (iii) above) following due procedure applicable to any other PPI issuer;

The PPI-MTS will have minimum validity of six months from the date of issue;

The issuer may decide upon the desired level of KYC, if any, for such PPIs;

The PPI-MTS issued may be reloadable in nature and at no point of time the value / balance in PPI can exceed the limit of Rs. 2,000/- (Rupees Two Thousand Only);

No cash-out or refund will be permitted from these PPIs;

Funds transfer under the Domestic Money Transfer (DMT) guidelines will also not be applicable to these PPIs;

All other extant guidelines for escrow arrangement, customer grievance redressal mechanism, agent / merchant due diligence, reporting and MIS requirements etc. applicable to issue of PPIs would continue to be applicable in respect of PPI-MTS.

3. Based on experience the guidelines will be reviewed taking into account both convenience and security aspects.

4. The above guidelines will come into effect from the date of issue of circular. The other provisions of Master Circular dated July 1, 2015 (as amended from time to time) will remain unchanged.

5. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007).

Electronic Verification Code #EVC for Electronically Filed Income Tax #Return

Explanation to sub rule (3) of Rule 12 of the Income tax Rules 1962, states that the purposes of this sub-rule “electronic verification code” means a code generated for the purpose of electronic verification of the person furnishing the return of Income as per the data structure and standards specified by Principal Director General 0 Income-tax (Systems) or Director General of Income-tax (Systems). Further, Sub rule (4) of Rule 12 of the Income Tax Rules 1962 states that the Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures formats and standards for ensuring secure capture and transmission of data a~d shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners (other than the paper form) specified in column (iv) of the Table in sub-rule (3) and the report of audit or notice in the manner specified in proviso to sub-rule (2).

In exercise of the powers delegated by the Central Board of Direct Taxes (‘Board’) under Explanation to sub rule 3 and sub-rule 4 of Rule 12 of the Income tax Rules 1962, the Principal Director General of Income-tax (Systems) lays down the procedures, data structure and standards for Electronic Verification Code as under: : The Electronic Verification Code (EVC) would verify the identity of the person furnishing the return of income (hereinafter called ‘Verifier) and would be generated on the E-filing website https://incometaxindiaefiling.gov.in or as otherwise indicated. The EVC can be used by a Verifier being an Individual to verify his Income Tax Return or that of an HUF of which he is the Karta in Income Tax Return Form 1, 2, 2A, 3, 4 or 4S or the Income Tax Return Form filed in ITR 5 or 7 of any person in accordance with Section 140 of the Income Tax Act. The EVC generation process may vary based on the risk-category of the Assessee (the term ‘Assessee’ is as defined in Subsection (7) of Section 2 of the Income Tax Act 1961), method of accessing the E-filing website or interface with third party authenticating entity. The Eve would be unique for an Assessee PAN and Will not valid for any other PAN at the time of filing of the Income Tax Return. One EVC can be used to validate on return of the Assessee irrespective of the Assessment Year or return filing type (original or revised) . The EVC will be stored against the Assessee PAN along Wit~ the other verification details. The EVC Will be valid for 72 hours or as otherwise specififed. The verifier can use more than  one mode to obtain EVC and can generate the EVC multiple times. The notification will come into effect from the date of issue.

The Notification dated 13th July, 2015 No. 02/2015 can be accessed at the link given below.

SEBI Disclosure on Share based Employee Benefits Norms

1. This has reference to the SEBI (Share Based Employee Benefits) Regulations, 2014 (“the Regulations”) notified on October 28, 2014. The Regulations provide for certain processes/disclosure requirements to be specified by SEBI. Accordingly, necessary guidelines are being issued and given in the Annexure to this circular.

2. The stock exchanges are advised to bring the contents of this circular to the notice of the companies listed on them and ensure its compliance.

3. This circular is being issued in exercise of the powers under regulation 28 of the Regulations and section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992.

Please click on the below link to read the full circular

Competition Commission of India Amends the Combination Regulations

As part of its ongoing and regular efforts to make M&A filing requirements simpler and readily acceptable to various stakeholders, the Competition Commission of India (CCI) has revised its Combination Regulations, making them more forward looking, in keeping with some of the best practices in other jurisdictions. The CCI, at the time of publishing the draft amendments on its website in March, 2015, invited comments from all stakeholders as a part of its consultative process.

While giving inputs and suggestions on the amendments, the stakeholders welcomed the same, as the amendments now provide greater clarity and transparency and help in avoiding undue delays.

A key change brought about by the present amendments is in relation to the definition of the term “other document”. To bring in more certainty, scope of the term “other document” has now been limited to a communication conveying the intention to make an acquisition to a Statutory Authority.

Further, the proposed amendments provide flexibility to parties regarding signing of the notice. Under the present amendments, any person duly authorised by the board of directors may sign the notice. Further, the number of copies of notice to be filed with the Commission has also been reduced.

In keeping with the requests received from stakeholders, CCI has also revised Form I required to be filed for notifying combination. In addition to the same, notes to the forms would be published to provide guidance to the notifying parties regarding the information that is required to be filed in a notice. Further, to bring in greater transparency regarding the review process, the amendments provide that a summary of every combination under review will be published on the website of CCI. Such publication will provide stakeholders an opportunity to submit their comments to CCI regarding the proposed combination.

CCI has also modified the timelines for Phase-I review from thirty calendar days to thirty working days and has also given itself a clock stop of fifteen working days during Phase I to seek comments from third parties.

#RBI Issues #SARFAESI Act, 2002 #Guidelines #Download here

RBI/2015-16/94
DNBR.(PD).CC.No. 03/SCRC/26.03.001/2015-16

July 01, 2015

Notification as amended up to June 30, 2015 – The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003

As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars / notifications. The instructions contained in The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 (vide Notification No. DNBS.2/CGM(CSM)-2003, dated April 23, 2003) updated as on June 30, 2015 are reproduced below.

Yours faithfully,

(C D Srinivasan)
Chief General Manager

Please click on the below link to read the full circular

RBI Issues SARFAESI Act, 2002 guidelines and directions as amendment upto 30th June 2015

Master Circular: Disclosure in Financial Statements: ‘Notes to Accounts’

RBI/2015-16/99
DBR.BP.BC No.23/21.04.018/2015-16

July 1, 2015

The Chairmen / Chief Executives of
All Commercial Banks
(excluding RRBs)

Dear Sir,

Master Circular – Disclosure in Financial Statements – ‘Notes to Accounts’

Please refer to the Master Circular DBOD.BP.BC.No.8/21.04.018/2014-15 dated July 1, 2014 consolidating all operative instructions issued to banks till June 30, 2014 on matters relating to disclosures in the ‘Notes to Accounts’ to the Financial Statements. This Master Circular consolidates instructions on the above matters issued up to June 30, 2015.

2. It may be noted that in addition to the instructions consolidated in this Master Circular, disclosure requirements contained in “Master Circular on Basel III Capital Regulations” will also be applicable.

Yours faithfully,

(Sudha Damodar)
Chief General Manager

The circular can also be accessed at the link given below.

Information on Sexual Harassment to be Mandatory under CA 2013

Under the Companies Act, the government has set off the process necessary for the private companies.

“In order to ensure that private sector companies also constitute ICC as mandated under Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act 2013, it will be appropriate to ask the companies to disclose the constitution of the IIC in their Annual Disclosures filed under the provision of Section 134 of the Companies Act 2013,”.

“While adequate protection is available in government structures to women, it is important that women in the private sector are also given the same level of protection. We had taken up this matter with Chambers of business but we have not been able to cut much ice with them,”.

Section 134 of the Act enables the Central government to mandate any non-financial disclosure to be made in the Directors’ Report of a company.

“Since companies did not show much interest on the matter, we have decided to make it mandatory for them under the Companies Act, 2013.There has been an increase in the number of cases of sexual harassment at workplace being brought up by women employees in different organizations.

As per this law penalty of Rs 50,000 on employers who are unable to implement its various provisions.

Master Circular Bank Finance to Non-Banking Financial Companies

RBI/2015-16/36
DBR.BP.BC.No.5/21.04.172/2015-16

July 1, 2015

Chairman and Managing Directors /
Chief Executives of
All Scheduled Commercial Banks (excluding RRBs)

Dear Sir/Madam,

Master Circular – Bank Finance to Non-Banking Financial Companies(NBFCs)

Please refer to our Master Circular DBOD.BP.BC.No.10/21.04.172/2014-15 dated July 1, 2014 on the captioned subject. This Master Circular consolidates instructions on the above matters issued up to June 30, 2015.

Yours faithfully,

(Sudarshan Sen)
Chief General Manager-in-Charge

The circular can also be accessed at the link given below.

Bank Finance to Non-Banking Financial Companies(NBFCs)

#CBEC Releases New System for Detailed Manual Scrutiny of Service Tax Returns

In the era of self-assessment, the need for a strong compliance verification mechanism cannot be over emphasized. Such a mechanism has three important prongs — audit, anti-evasion and return scrutiny.

In order to put in place a strong ‘return scrutiny’ system, a two-part system of return scrutiny was envisaged— a preliminary scrutiny which would be online covering all the returns; and a detailed manual scrutiny of select returns, identified on the basis of risk parameters, to be done by the Division

Please click on the below link to read the full circular

Explanation on charging depreciation for extra shift under CA 2013

There are  various views are possible for determining remaining useful life on transition from Schedule XIV to Schedule II if an asset has been used on double/ triple shift basis in past years.

For example, in the case of plant above, one view is that the asset has remaining Schedule II life of 12 years, i.e., 15 years – 3 years. The second view is that remaining Schedule II life of the plant is 9 years, i.e., 15 years –6 years (considering the plant was used on a triple shift basis on all days in the previous three years).

The third view is that remaining Schedule II life of the plant is 6 years, i.e., 15 years – 9 years (considering the plant was used on a triple shift basis on all days in previous three years and each shift is considered to depreciate the asset equally).”

The above extract say before charging depreciation on triple shift, the life of Assets should be reduced to half in second and third view. Argues are there whether to consider the same from the beginning of uselife of assets or for remaining uselife.

However, Note 5 to SCHEDULE II of Companies Act, 2013 says –

The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.