PROFESSIONAL UPDATES FOR THE 1ST WEEK OF JULY 2014, BY RAJPUT CONSULTANCY SERVICES PVT LTD TEAM,

COMPANIES ACT, 2013:

§  Query: Director’s name & DIN (Director Identification Number) has to be mentioned with their signature on all the documents to be signed in the capacity of director. In this regards please clarify me, in which section or rules it is required under the act. Moreover, is there any penalty provision for non-compliance of the same?

Answer: Sec.158 of Companies Act 2013 (effective from 1.4.2014) which is corresponding to Sec.266F of CA 1956 reads as under:   "Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director."

§  Query: I would like to know that whether all the directors have to file form MBP 1 even if a director does not have interest in any other entity.

Answer: Yes, as per our opinion, Section- 184- all Directors have to file form MBP-1, the Board of Directors to take note of the disclosure of director’s interest and shareholding at Meeting of the Board.

§  As per our opinion, there should be general penalty provision applicable for non- compliance of the same.

§  MGT-14 for all the cases except for change of Name, change of Object, Resolution for further issue of capital and conversion of Companies will be processed and taken on record using the Straight Through Process Mode from 21.07.2014 for simplifying procedures and with a view to ensure timely disposal of E-Forms and keeping in view the penal provisions for false declaration as contained in Sec 448 read with Sec447.Vide Circular No. 28/2014 dated 09.07.2014 (Click here to view the Circular)

§  Conversion To LLP – Capital gains to be computed on book value of assets transferred and not on market value [ITAT, KOLKATA. Aravali Polymers LLP -vs.- JCIT].

DIRECT TAX:

• As reported by some of the newspapers and PTI government may provide a major relief to the tax-payers, by increasing the Income Tax slab limit for exemption from Rs.2 lakh to Rs.5 lakh.
• ITR -3 Form is to be used by an individual or an HUF who is a partner in a firm and where income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm.
• ITR 4 Return Form for Assessment Year 2014-2015 is to be used by an individual or a Hindu Undivided Family who is carrying out a proprietary business or profession.
• The official e-mail of Income Tax Department has been migrated to an upgraded version requiring better security. For this, a new password is being reset for the official e-mail at http://mail.incometaxindia. gov.in.  You are requested to send your password request from an existing email to webcr@incometaxindia.gov.in  mentioning your official e-mail id @incometaxindia.gov.in, name, designation and city. new password will be sent within 24 hours. Help line numbers- 0120-2770483, 9711572258, 9891860580
• Due to delayed share allotment share application money from related party couldn’t be held as a loan transaction [Parle Biscuits (P.) Ltd. vs. Deputy Commissioner of Income Tax (I.T.A. No. 9010 (MUM.) of 2010) Date of Order: 11.04.2014, ITAT – Mumbai].

INDIRECT TAX:

• Fee increased in Annexure1 changes in DVAT 16, 2A, DVAT 17, DVAT 48. Mention TAN in DVAT 16 and TIN in DVAT 48, DVAT 2nd amendment rules, 2014 wef. 17-06-2014.
• Service tax paid by Service provider, on being pointed out by department, can be treated as business expenditure [Humble High Court of Gujarat in the case of CIT vs. Kaypee Mechanical India (P) Ltd.]
• Service tax paid by service provider, on being pointed out by department, can be treated as business expenditure under Section 37 of the Income Tax Act, 1961.
• Non-filing of application for Condonation of delay does not necessarily imply rejection of appeal [case Janak Kumar C. Naik vs. Commissioner of Central Excise, Daman, (2014) 45 taxmann.com 193 Ahmedabad – CESTAT].
• 30.06.2014 is last date for payment of balance 50% service tax dues under VCES (without interest). Can pay by 31.12.2014 (with interest wef 01-07-2014).
• 30.06.2014 is last date for payment of balance 50% service tax dues under VCES without interest. Assessee can pay by 31.12.2014 with interest w.e.f. 01-07-2014.

OTHER NEWS:

·         RBI not to issue instructions clarifying tax issues under FEMA. Banks to comply with tax laws for remittances to non-residents etc [RBI Circular 151 of 30-06-2014].

·         MEF 2014-2015 has been made live on www.meficai.org on 1st July, 2014. Last date for online submission of MEF 2014-2015 is 4th August 2014.

·         Existing employee benefit schemes can be aligned with SEBI (ESOS and ESPS) Guidelines, 1999 when new regulations are notified [SEBI Circular of 27-06-2014].

IMPORTANT DATES 

·         Due date for second and final installment for payment in respect of Voluntary Compliance Encouragement scheme (VCES) is on 30th June, 2014. If you make payment after 30th June, 2014 then service tax will be with interest payable under VCES 

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