#CBEC Notification #GST (Second Amendment) Rules, 2018

MINISTRY OF FINANCE

(Department of Revenue)

CENTRAL BOARD OF EXCISE AND CUSTOMS

NOTIFICATION

New Delhi, the 7th March, 2018

No. 12/2018-Central Tax

G.S.R. 204(E).—In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

(1) These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2018.

(2) Save as otherwise provided in these rules, they shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. In the Central Goods and Services Tax Rules, 2017, –

(i) with effect from the date of publication of this notification in the Official Gazette, in rule 117, in sub-rule (4), in clause (b), for sub-clause (iii), the following shall be substituted, namely:-

“(iii) The registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits a statement in FORM GST TRAN 2 by 31st March 2018, or within such period as extended by the Commissioner, on the recommendations of the Council, for each of the six tax periods during which the scheme is in operation indicating therein, the details of supplies of such goods effected during the tax period;”;

(ii) for rule 138, the following rule shall be substituted, namely:-

“138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill.- (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—

(i) in relation to a supply; or

(ii) for reasons other than supply; or

(iii) due to inward supply from an unregistered person,

shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:

Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:

Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal:

Provided also that where goods are sent by a principal located in one State or Union Territory to a job worker located in any other State or Union Territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment:

Provided also that where handicraft goods are transported from one State or Union Territory to another State or Union Territory by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

Explanation 1.– For the purposes of this rule, the expression “handicraft goods” has the meaning as assigned to it in the Government of India, Ministry of Finance, notification No. 32/2017-Central Tax dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1158 (E) dated the 15th September, 2017 as amended from time to time.

Explanation 2.- For the purposes of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the central tax, State or Union Territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.

(2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.

(2A) Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of FORM GST EWB-01:

Provided that where the goods are transported by railways, the railways shall not deliver the goods unless the eway bill required under these rules is produced at the time of delivery.

(3) Where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01:

Provided that the registered person or, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:

Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:

Provided also that where the goods are transported for a distance of upto fifty kilometers within the State or Union Territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.

Explanation 1.– For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.

Explanation 2.- The e-way bill shall not be valid for movement of goods by road unless the information in PartB of FORM GST EWB-01 has been furnished except in the case of movements covered under the third proviso to subrule (3) and the proviso to sub-rule (5).

(4) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.

(5) Where the goods are transferred from one conveyance to another, the consignor or the recipient, who has provided information in Part A of the FORM GST EWB-01, or the transporter shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in Part B of FORM GST EWB-01:

Provided that where the goods are transported for a distance of upto fifty kilometers within the State or Union Territory from the place of business of the transporter finally to the place of business of the consignee, the details of the conveyance may not be updated in the e-way bill.

(5A) The consignor or the recipient, who has furnished the information in Part A of FORM GST EWB-01, or the transporter, may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part B of FORM GST EWB-01 for further movement of the consignment:

Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter.

(6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.

(7) Where the consignor or the consignee has not generated the e-way bill in FORM GST EWB-01 and the aggregate of the consignment value of goods carried in the conveyance is more than fifty thousand rupees, the transporter, except in case of transportation of goods by railways, air and vessel, shall, in respect of inter-State supply, generate the e-way bill in FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods:

Provided that where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.

(8) The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing the details in FORM GSTR-1:

Provided that when the information has been furnished by an unregistered supplier or an unregistered recipient in RM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.

(9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill:

Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B:

Provided further that the unique number generated under sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01.

Whole text of the notification can be accessed here

Notification on Companies (Accounts) Amendment Rules, 2018

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 27 February, 2018

G.S.R. (E).—In exercise of the powers conferred by sub-sections (1) and (3) of section 128, sub section (3) of section 129, section 133, section 134, sub section (1) of 136 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-

1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2018.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Accounts) Rules, 2014 (hereinafter referred to as the principal rules), in rule 10, the following proviso shall be inserted, namely:-

“Provided that the Companies which are required to comply with Companies (Indian Accounting Standards) Rules, 2015 shall forward their statement in Form AOC-3A.”.

3. In the principal rules, in the Annexure, after Form AOC-3, the following Form shall be inserted, namely:-

“FORM AOC-3A

Statement containing salient features of the financial statements

(Division II- Schedule III to the Companies Act, 2013)

(Pursuant to first proviso to sub-section (1) of section 136 of the Act and proviso to rule 10 of the Companies (Accounts) Rules, 2014)

Form of Abridged Financial Statements

Part I

Part II

Abridged Statement of Profit and Loss for the period ended ……

Part III

Abridged Cash Flow Statement

Notes to the Abridged Financial Statements

1. Complete Balance Sheet, Statement of Changes in Equity, Statement of Profit and Loss Statement of Cash Flows (wherever applicable) and other statements and notes thereto prepared as per the requirements of Division II to the Schedule III to the Act are available at the Company’s website at link Copy of financial statement is also available for inspection at the registered office of the company during working hours for a period of 21 days before the date of AGM.

2. The amounts to be shown here should be the same as shown in the corresponding aggregated heads in the financial statements as per Schedule III.

3. Amount, if material, by which any item shown in the financial statements are affected by any change in the accounting policy, should be disclosed separately.

4. The amount of contingent liabilities and that of commitments (to the extent not provided for) should be disclosed separately, as per Division II, Schedule III.

5. All notes forming part of the financial statements as per Schedule III to which specific attention has been drawn by the auditors or which form a subject matter of qualification by the auditor should be reproduced.

6. Any item which constitutes 20% or more of the total income or expenditure (including provisions) should be shown separately.

7. Notes shall include the notes, if any, contained in the financial statements pertaining to the following:

a Period and amount of defaults on the balance sheet date in repayment of borrowings (other than Trade Payables) and interest thereon.

b Business combination like Amalgamations, acquisitions, restructurings, and demergers during the Reporting period.

c Material events affecting the going concern assumption,

d Investigation and inspection conducted or ordered under the provisions of Companies Act, 2013.

e Non-compliance with any law during the Reporting period and the penalties imposed/compounding fees paid.

f Any other note considered significant by the management.

8. Disclosure of Related Party Transaction shall be made in terms of the requirements of Ind AS- 24.

9. Details of cash and cash equivalents shall be disclosed as follows:

a Balances with banks;

b Cheques, drafts on hand;

 c Cash in hand;

d Others( specify nature)

(Separate disclosure should be made for cash and cash equivalents earmarked for specific purposes).

10. Segment Reporting shall be in the same format/details as reported in audited financial statements.

The above stated salient features of the abridged financial statements should be authenticated in the same manner as the main financial statements.

DIRECTOR’S REPORT

Salient features of Director’s Report shall be disclosed.

Salient features shall include the following.

a) State of affairs of the company.

b) Details of Dividend declared.

c) Details of frauds, if any, reported.

d) Details of auditor’s qualifications and reply thereon.

e) Highlights of the company’s performances. These highlights shall be separately given for the companies material subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS

Where a company is required to prepare Consolidated Financial Statements, i.e. consolidated balance sheet and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of Division II to the Schedule III of the Act, as applicable to a company in the preparation of balance sheet and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards (Ind AS) including the items specified at Serial numbers (1) and (2) under the heading “general instructions for the preparation of consolidated financial statements” contained in the said Schedule. The company should follow the above requirements mutatis mutandis while presenting the abridged consolidated financial statements.

AUDITOR’S REPORT

The Auditor’s report on unabridged financial statements shall also be attached along with this Abridged financial statements.

Note : To be certified in the same manner in which the Balance Sheet is to be certified.”.

[F. No. 1/19/2013-CL-V-Part]

K.V.R. Murty, Joint Secretary

Clarifications on #GST in Respect of Certain Services

Circular No. 34/8/2018-GST

1 F. No. 354/17/2018-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax research Unit

****

Room No. 146G, North Block,

New Delhi, 1 st March 2018

To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/

Commissioner of Central Tax (All) / The Principal Director Generals/

Director Generals (All)

Madam/Sir,

Subject: Clarifications regarding GST in respect of certain services 

I am directed to issue clarification with regard to the following issues as approved by the 

Fitment Committee to the GST Council in its meeting held on 9th , 10th and 13th January 2018:

S. No.	Issue	Clarification
1.	Whether activity of bus body building, is a supply of goods or services?	In the case of bus body building there is supply of goods and services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case.
2.	Whether retreading of tyres is a supply of goods or services?	In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Which part of a composite supply is the principal supply, must be determined keeping in view the nature of the supply involved. Value may be one of the guiding factors in this determination, but not the sole factor. The primary question that should be asked is what is the essential nature of the composite supply and which element of the supply imparts that essential nature to the composite supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff attracting GST @ 28%)
3.	Whether Priority Sector Lending Certificates (PSLCs) are outside the purview of GST and therefore not taxable?	In Reserve Bank of India FAQ on PSLC, it has been mentioned that PSLC may be construed to be in the nature of goods, dealing in which has been notified as a permissible activity under section 6(1) of the Banking Regulation Act, 1949 vide Government of India notification dated 4thFebruary, 2016. PSLC are not securities. PSLC are akin to freely tradeable duty scrips, Renewable Energy Certificates, REP license or replenishment license, which attracted VAT. In GST there is no exemption to trading in PSLCs. Thus, PSLCs are taxable as goods at standard rate of 18% under the residuary S. No. 453 of Schedule III ofnotification No. 1/2017-Central Tax(Rate). GST payable on the certificates would be available as ITC to the bank buying the certificates.
4.	(1) Whether the activities carried by DISCOMS against recovery of charges from consumers under State Electricity Act are exempt from GST? (2) Whether the guarantee provided by State Government to state owned companies against guarantee commission, is taxable under GST?	(1) Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST under notification No. 12/2017- CT (R), Sl. No. 25. The other services such as, –i. Application fee for releasing connection of electricity; ii. Rental Charges against metering equipment; iii. Testing fee for meters/ transformers, capacitors etc.; iv. Labour charges from customers for shifting of meters or shifting of service lines; v. charges for duplicate bill; provided by DISCOMS to consumer are taxable. (2) The service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial institutions against consideration in any form including Guarantee Commission is taxable.

2. Difficulty if any, in the implementation of this circular may be brought to the notice of the 

Board.

Yours Faithfully,

Harsh Singh

Technical Officer (TRU)

Email: harshsingh.irs@gov.in

Tel: 011-23095543

Income-tax (First Amendment) Rules, 2018 - Notification

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION No. 10/2018

New Delhi, the 19th February, 2018

INCOME-TAX

G.S.R. 176(E).– In exercise of the powers conferred by clause (aa) and clause (ab) of sub-section (1) of section 12A read with 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. (1) These rules may be called the Income-tax (First Amendment) Rules, 2018.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), in Part IV, for ‘rule 17A’, the following rule shall be substituted, namely:___

“Application for registration of charitable or religious trusts, etc.

17A (1). An application under clause (aa) or clause (ab) of sub-section (1) of section 12A for registration of a charitable or religious trust or institution shall be made in Form No. 10A and accompanied by the following documents, namely:___

(a) where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution;

(b) where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution;

(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;

(d) self-certified copy of the documents evidencing adoption or modification of the objects, if any;

(e) where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up;

(f) note on the activities of the trust or institution;

(g) self-certified copy of existing order granting registration under section 12A or section 12AA, as the case may be; and

(h) self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AA,as the case may be, if any.

(2) Form No. 10A shall be furnished electronically,___

(i) under digital signature, if the return of income is required to be furnished under digital signature;

(ii) through electronic verification code in a case not covered under clause (i).

(3) Form No. 10A shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee.

(4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify the data structure, standards and procedure of furnishing and verification of Form No. 10A and be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished.”.

3. In the principal rules, in Appendix II, for the ‘Form No. 10A’, the following Form shall be substituted, namely:___

“FORM NO. 10A (See rule 17A)

[Notification No. 10/2018/F. No. 370142/14/2017-TPL]

NIRAJ KUMAR, Under Secy. (Tax Policy and Legislation)

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification G.S.R. Number 1527(E), dated 20/12/2017.

#DGFT amends Foreign Trade Amendment Order, 2017

Government of India

Ministry of Commerce & Industry

Department of Commerce

Directorate General of Foreign Trade

Udyog Bhawan

Notification No. 51/2015-2020

New Delhi, Dated: 20 February, 2018

Subject: Amendment in the Foreign Trade (Exemption from application of Rules in certain cases) Amendment Order, 2017

S.O. (E): In exercise of the powers conferred by section 3, read with section 4, of the Foreign Trade (Development and Regulation) Act, 1992, as amended from time to time, the Central Government hereby deletes the following Rule provisions of the Foreign Trade (Exemption from application of Rules in certain cases) Amendment Order, 2017 as under:

Section	Existing Provision	Revised position
3(1)	(a) by the Central Government or agencies, undertakings owned and controlled by the Central Government for Defence purposes;(b) by the Central Government or any State Government, Statutory Corporation, public body or Government Undertaking run as a joint Stock Company; (c) by the Central Government, any State Government or any statutory corporation or public body or Government Undertaking run as a joint Stock Company, orders in respect of which are placed through the Directorate General Supplies and Disposals, New Delhi	(a) by the Central Government or agencies, undertakings owned and controlled by the Central Government for Defence and Security purposes(b) by the State Government for Security purposes (c) Deleted.

2. Effect of this Notification: Modification in Section 3(1) Section 3(1) (c) of the Foreign Trade (Exemption from application of Amendment Order, 2017 is notified.

(Alok Vardhan Chaturvedi)

Director General of Foreign Trade

E-mail: dgft[at]nic[dot]in

[Issued from F.No. 01/93/180/16/AM-16/ PC-2(B)]

Shell Companies: Option Available to Directors for Removal of Disqualification

As we all are aware that in September, 2017 the government of India steps up its fight against the black money. The Government of India with the help of Ministry of Finance, pushes ahead with the efforts to weed out shell companies (a term used for entities that have not been carrying out business for long and are allegedly used as conduit for illegal fund flows) has taken strict action against the shell Companies.

• The first action was against those Companies that prima facie appears to be non-functional (also called “Shell Companies”). On 5th September, 2017 around 208,800 Companies were struck off from the data base of the Registrar of Companies (RoC);

• The Ministry of Finance directed the branches of all the banks of those companies to restrict/stop the operation of the bank accounts of all such companies by their directors and authorized representatives;

• Third step involves action against the defaulting Directors of those all Companies that did not filed their Annual returns or financial statements for the past three years. After MCA direction around 3,09,614 directors has been barred to continue on the board of Directors of any company in which they are Directors for the next five years. After this action the Digital signatures of all the disqualified directors can’t be used in filing of any document like annual reports and Balance sheet documents will not to be accepted by concerned RoC with which Company is registered.

In this Article we will try to discuss on the option which are available to  an Individual Director (i.e. directors who has been barred to continue on the board of Directors of any company for the next five years) to remove his disqualification.

First of all let us understand the relevant provision of Section 164 (2) (a) of the Companies Act, 2013, which dealt with the ground of Disqualifications.

“A company in which the Director is a part of the Board has not filed financial statements or annual returns for any continuous period of three financial years.”

The Section provides for disqualification of directors if the company has not filed financial statements or annual returns for a continuous period of three financial years (non-compliance ground). Disqualification under Section 164(2)(a) results in automatic vacation of the office of the disqualified director, under Section 167.

Let us understand the options to come out from the disqualification available in all the above three situations:-

SITUATION NO-1:

WHERE THE AGRIEVED PERSON IS A DIRECTOR IN ONLY ONE COMPANY AND THE STATUS OF THE SAME IS “STRIKED OFF” AS PER MCA DATABASE;

Some people are having an opinion that disqualification of Directors can be removed by filing of application in DIR-10 with Central Government. However, the fact is that such application in DIR-10 can be file only at the end of the tenure of five years post his disqualification.’

Therefore, Filing of DIR-10 before completion of 5 year is not a way out  for removal of disqualification of director or to get rid from the status of disqualified Director.

Considering the situation it can be conclude at present, since there seems to be  no remedy available as per the Companies Act, 2013, a Writ Petition can be made by the aggrieved director under Article 226 of the Constitution of India in the absence of any alternate remedy available.

On 21.09.2017, the Madras High Court has passed an interim order staying the RoC Chennai’s order of disqualification of Bhagavan Das Dhananjaya Das as   the director of Birdies and Eagles Sports Technology, a Private Company.

SITUATION NO-2:

WHERE AGRIEVED PERSON IS A DIRECTOR IN A COMPANY AND THE STATUS OF SAME IS STILL ACTIVE AS PER MCA DATABASE;

To opt “The Condonation of Delay Scheme, 2018” announced by the Ministry of Corporate Affairs and which is active from 1st January 2018 to 31st March 2018.

All the Directors who were recently disqualified for failure to file MCA annual return can file MCA eCODS form 2018 to regularize compliance and avoid permanent disqualification for a period of 5 years.

Once all the overdue annual returns have been filed, form eCODS must be filed  by the Director before 31st March 2018. Important Note: Form eCODS will not be available for download on the MCA Portal until 20th February 2018. 

However, the Directors will be allowed to file the overdue MCA annual return from 1st January 2018. Hence, all overdue compliance can be completed before the release of eCODS form by the MCA. Once form is made available, the Directors would have to file eCODS form with the details of all overdue MCA annual returns filed along with a payment of Rs.30,000/-

SITUATION NO-3:

WHERE AGRIEVED PERSON IS A DIRECTOR IN MORE THAN ONE COMPANY AND THE STATUS OF ONE COMPANY IS ACTIVE AND OTHER IS STRIKED OFF AS PER MCA DATABASE;

Considering the situation it can be conclude at present, since there seems to be no remedy available as per the Companies Act, 2013, a Writ Petition can be made by the aggrieved director under Article 226 of the Constitution of India in the absence of any alternate remedy available.

India and Iran signs DTAA on Taxation

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 17th February, 2018

PRESS RELEASE

Signing of DTAA by India and Iran on 17th February, 2018 India and Iran signed an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income, today at New Delhi.

The Agreement is on similar lines as entered into by India with other countries. The Agreement will stimulate flow of investment, technology and personnel from India to Iran & vice versa, and will prevent double taxation. The Agreement will provide for exchange of information between the two Contracting Parties as per latest international standards. It will improve transparency in tax matters and will help curb tax evasion and tax avoidance.

The Agreement also meets treaty related minimum standards under G20 OECD Base Erosion & Profit Shifting (BEPS) Project, in which India participated on an equal footing.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Notification of Companies (Registered Valuers & Valuation) Amendment Rules, 2018

[TO BE REPUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY’ PART II’ SECTION 3, SUB-SECTION (i)l]

Government of India

Ministry of Corporate Affairs

Notification

New Delhi, the 9th February, 2018

G.S.R…….(E).- In exercise of the powers conferred by section 247 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules to amend the Companies (Registered Valuers and Valuation) Rules, 2017, namely:-

1.   (1) These rules may be called the Companies (Registered Valuers and Valuation) Amendment Rules, 2018.

(2)   They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Registered Valuers and Valuation) Rules, 2017, in rule 11, for the figures, letters and word “31st March, 2018”, occurring at both the places, the figures, letters and word “30th September, 2018” shall be substituted.

[F.No.1/ 27/2013-CL-V Part)]

(K.V.R. Murty)

Joint Secretary to the Government of India

#SEBI Circular on Online Registration Mechanism

CIRCULAR

SEBI/HO/MRD/DSA/CIR/P/2018/14

January 29, 2018

To, All Recognised Stock Exchanges

Dear Sir / Madam,

Subject: Online Registration Mechanism and Filing System for Stock Exchanges

1. In order to ease the process of application for recognition / renewal, reporting and other filings in terms of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and other circulars issued from time to time, SEBI has introduced a digital platform for online filings related to Stock Exchanges.

2. All applicants desirous of seeking registration / renewalas a Stock Exchange in terms of Regulation 4 and 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, shall now submit their applications online, through SEBI Intermediary Portal at https://siportal.sebi.gov.in.

3. The applicants would be required to upload scanned copy of relevant documents such as any declarations, undertakings, etc. as may be specified in Securities Contracts (Regulation) ( Stock Exchanges and Clearing Corporations) Regulations, 2012, and keep hard copy of the same to be furnished to SEBI whenever required.

4. Further, all other filings including Annual Financial Statements and Returns, Monthly Development Report, Rules, Bye-laws, etc., shall also be submitted online.

5. The aforesaid online registration and filing system for Stock Exchanges is operational. RecognisedStock Exchanges are advised to note the same for immediate compliance.

6. Link for SEBI Intermediary Portal is also available on SEBI website – www.sebi.gov.in. In case of any queries and clarifications, users may refer to the manual provided in the portal or contact the SEBI Portal helpline on 022- 26449364 or may write at portalhelp@sebi.gov.in.

7. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 50 and 51 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

BithinMahanta

Deputy General Manager

Tel: +91 22 26449634

e-mail: bithinm@sebi.gov.in

Cabinet Approves Amendment to the #MSME Act, 2006

Cabinet approves proposal for Amendment to the Micro, Small and  Medium Enterprises Development Act, 2006 to change the criteria of classification and to withdraw the MSMED (Amendment) Bill, 2015 – pending in Lok Sabha 

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’.

This will encourage ease of doing business, make the norms of classification growth oriented and align them to the new tax regime revolving around GST (Goods & Services Tax).

Section 7 of theMicro, Small and Medium Enterprises Development (MSMED)  Act, 2006 will accordingly be amended to define units producing goods and rendering services in terms of annual turnover as follows:

• A micro enterprise will be defined as a unit where the annual turnover does not exceed five crore rupees;
• A small enterprise will be defined as a unit where the annual turnover is more than five crore rupees but does not exceed Rs 75 crore;
• A medium enterprise will be defined as a unit where the annual turnover is more than seventy five crore rupees but does not exceed Rs 250 crore.
• Additionally, the Central Government may, by notification, vary turnover limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.

At present the MSMED Act (Section 7) classifies the Micro, Small and Medium Enterprises (MSMEs) on the basis of investment in plant and machinery for manufacturing units, and investment in equipment for service enterprises. The criterion of investment in plant and machinery stipulates self declaration which in turn entails verification if deemed necessary and leads to transaction costs.

Taking turnover as a criterion can be pegged with reliable figures available e.g. in GST Network and other methods of ascertaining which will help in having a non discretionary, transparent and objective criteria and will eliminate the need for inspections, make the classification system progressive and evolutionary, help in overcoming the uncertainties associated with the classification based on investment in plant & machinery/equipment and employment, and improve the ease of doing business. In addition the amendment will provide flexibility to the Government to fine-tune the classification of MSMEs in response to changing economic scenario without resorting to the amendment of MSMED (Micro, Small & Medium Enterprises Development) Act.

The change in the norms of classification will enhance the ease of doing business. The consequent  growth and will pave the way for increased direct and indirect employment in the MSME sector of the country.

#CBEC to be renamed #CBIC

With the roll out of GST, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2018-19 in Parliament today, announced that the name of Central Board of Excise and Customs [CBEC] will be changed to Central Board of Indirect Taxes and Customs (CBIC). 

The necessary changes in law for this are proposed in the Finance Bill, Shri Jaitley added

Notification on #e-way bill ewaybillgst.gov.in

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Notification No. 9/2018 – Central Tax

New Delhi, the 23rd January, 2018

G.S.R….(E).- In exercise of the powers conferred by section 146 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 4/2017 – Central Tax dated 19th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 606 (E), dated the 19th June, 2017, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies www.gst.gov.in as the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns and computation and settlement of integrated tax and www.ewaybillgst.gov.in as the Common Goods and Services Tax Electronic Portal for furnishing electronic way bill.

Explanation.-

(1) For the purposes of this notification, “www.gst.gov.in” means the website managed by the Goods and Services Tax Network, a company incorporated under the provisions of section 8 of the Companies Act, 2013 (18 of 2013); and

(2) For the purposes of this notification, “www.ewaybillgst.gov.in” means the website managed by the National Informatics Centre, Ministry of Electronics & Information Technology, Government of India.

2. This notification shall be deemed to have come into force with effect from the 16th day of January, 2018.

[F. No.349/58/2017-GST(Pt.)]

(Dr. Sreeparvathy S.L.)

Under Secretary to the Government of India

#GST (Compensation to States) Amendment Act, 2017 notified

THE GOODS AND SERVICES TAX (COMPENSATION TO STATES)

AMENDMENT ACT, 2017

NO. 9 OF 2018

[19th January, 2018.]

An Act to amend the Goods and Services Tax (Compensation to States) Act, 2017. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—

1. (1) This Act may be called the Goods and Services Tax (Compensation to States) Amendment Act, 2017.

(2) It shall be deemed to have come into force on the 2nd day of September, 2017.

2. In the Goods and Services Tax (Compensation to States) Act, 2017, in the Schedule,—

(i) after serial number 4 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(1)	(2)	(3)	(4)
“4A	Motor vehicles for  the transport of thirteen persons, including the driver.	8702 10,	Twenty-five per cent. ad valorem.”;
		8702 20,
		8702 30 or
		8702 90

(ii) against serial number 5, for the entry in column (4), the entry “Twenty-five per cent. ad valorem” shall be substituted.

3. (1) The Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Goods and Services Tax (Compensation to States) Act, 2017, as amended by the said Ordinance, shall be deemed to have been done or taken under the said Act as amended by this Act.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.