PROFESSIONAL UPDATES FOR THE 2nd WEEK OF JULY 2014, BY RAJPUT CONSULTANCY SERVICES PVT LTD TEAM,

COMPANIES ACT, 2013:

• Filing and Disposal of Application for Conversion of Company from Public to Private as per Companies Act 1956, till new provisions come into effect [Circular 18 of 11-06-2014].
• Companies to accept Share Transfer Form 7B (instead of SH-4) signed before 01-04-2014 and submitted in time. Company can reject with reasons, if delayed. [Circular 19 of 12-06-2014].

§  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].

• Specified Unlisted Public Companies and Listed Companies with capital of less than 5 crore, to constitute Audit and Nomination and Remuneration Committees in 1 year [Notification of 12-06-2014].

§  File ROC Filings in the above sequence:-

       Prepare a attachment in DPT-4 (On the letter head of the company). 

       Please be noted that the letter head should contain the CIN no of the company.

       Prepare a Auditors Certificate (On letter head of Auditor)

       Prepare a Annexure 1 which contains details about the deposits.  The format is not prescribed but still we have tried to prepare some good format.

       Return of allotment is to be filed from next year in “form dpt 3”( i.e. 2015)

       MCA has yesterday uploaded a draft notification on its website consisting of exemptions, exceptions, modifications and adaption for Private Limited Companies from various provisions of Companies Act, 2013. Some of the proposed mentioned here below : Section 43 (kinds of share Capital) & Section 47 (Voting Rights) not to apply to Private Companies, Section 62 (1) (a) & Section 62 (2) (further issue of share capital) to be modified for private Companies, section 62 (1) (b) to require ‘ordinary resolution’ for private Companies, section 73(2) conditions (Acceptances of Deposits) not be lived on private companies with 50 or less members, Section 141 (3) (g) shall not apply in w.r.t appointment of Auditors by Private companies( limit of 20 Companies doesn’t include Private companies), Section 180 (Restriction on Power of Board) shall not apply to private companies with fifty or less members, Section 188 (Related party transaction) not apply to Private Company  and any other provisions.

       MCA has invited comments in Draft Notifications up to July 1st 2014.

DIRECT TAX:

• CBDT notifies new Wealth-tax return form mandatory e-filing except by Individual/HUF not liable to tax audit.
• Limitation period for filing appeal to be computed from the date of corrigendum order, instead of original order. [Fast Track Tour and Travels vs. Union of India (2014) 45 taxmann.com 263 Jharkhand High Court].
• E-filing of ITR-4 for A.Y. 2014-2015 is available now.
• The Government had constituted Tax Administration Reform Commission (“The TARC”) headed by Dr. Parthasarathi Shome, in August 2013, to suggests core reforms to the tax administration set-up in the Country. The TARC has now submitted a report dated May 30, 2014 called the “First Report of the Tax Administration Reform Commission”. The said report makes several critical and far-reaching suggestions which are intended to radically change the working of the Income Tax and other Revenue Department.
• Disallowance under section 40A (2) (b) under Income Tax Act on account of Interest @ 18% – Held not excessive Issue [ M/s. Shivam Cotton Corporation vs. Addl. CIT (ITAT Indore)].

INDIRECT TAX:

• Fill Form 9 online for refund cases of 2012-2013 and 2013-2014. For refund due to exports, submit Export wise details of e-BRC. [DVAT public notice of 24-06-2014].
• Excise duty cut for Auto, capital goods, consumer durables extended till Dec 31, 2014.
• Excise duty cut in Interim Budget 2014 for cars, capital goods, consumer durables extended till 31-12-2014 [Notification 06/2014- CE of 25-06-2014].
• 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.
• 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].
• The UP Government has decided to abolish various affidavits which were required to be notarized for various schemes in departments of State Government. Self declaration/self attestation by the applicant will suffice the purpose. This will also be applicable for various declarations required in UPVAT Act, 2008.

OTHER NEWS:

·         The benefit of amnesty scheme has been granted to assesses, on the grounds that in accordance with section 106, the subject matter of declaration does not correspond to the matter under dispute [Case of Frankfinn Aviation Services (P.) Ltd. vs. Assistant Commissioner, (Delhi High Court)].

·         Maharashtra Co-operative Auditors (existing Panel) – Profile updation has been extended till 10th July, 2014. Also the following clarification has been updated. Please visit for further information http://mahasahakar. maharashtra.gov.in

·         The VAT Department of Delhi has abolished the form of "Reconciliation Return" in DVAT-51 and has introduced Form-9 for this purpose. Form-9 has been notified under CST law to be furnished electronically w.e.f. FY. 2013-2014 and the last date is 30.09.2014.

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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