Consolidated Updates for the month of April, 2014

DVAT

1. DVAT Deptt. has extended the due date of online filing of DVAT Returns in DVAT 16, DVAT-17 and TDS return in DVAT-48 and furnishing of hard copies thereof 4th quarter of 2013-14  to  09.05.2014.
2. No need to submit hard copy of return verification form DVAT 56 if DVAT/CST Returns are filed with digital signature vide DVAT Circular 2 of 23-04-2014.
3. Fill Block R10 and R11 in CST Form 1 for Q4 of 2013-14. No data for 09-10 and 10-11 to be given as default assessment already over [DVAT Circular 1 of 09-04-2014].
4. DVAT Dept to adopt soft approach against non-filing of T-2 till 30-04-2014. Source Navbahrat Times, New Delhi dated 15-04-2014.
5. Any Order, Notice of objection disposal / assessments not from department. Systems Module & without Unique Ref No & bar code, to be invalid vide DVAT Order of 11-04-2014.

INCOME TAX

6. TDS FVU 4.2 Mandatory w.e.f 26-04-2014. Features- 24Q for Q4 can have Nil Challan. In case of 24Q, TDS must be 20% of Salary Paid/Credited if no PAN.

7.      Cost of Construction of roads, highways under BOT Projects may be amortized and claimed as expenditure, where assessee is not owner. [CBDT Circular 9 of 23-04-2014].

8. Detailed instructions have been issued by the CBDT to all the assessing officers laying down a Standard Operating Procedure (SOP) for verification and correction of demand by the AOs upto Rs. 1,00,000/- in the case of Individuals and HUFs. [Press Note 402/92/2006-MC of 17-04-2014]
9. In terms of section 2(22)(e), it is only person who is the registered shareholder who can be said to be a shareholder qua company and not a person beneficially entitled to shares [Chief Commissioner of Income Tax Vs. Sarva Equity (P.) Ltd., ITA Nos. 322 to 324 of 2012, date of order: 08.01.2014, High Court of Karnataka].
10. ITR-7, Political Parties to e-file with digital signature. Trusts etc can file manually or electronically with or without digital signature [Revised IT Rule 12].
11. All Firms/AOP/BOI to file returns electronically. Use of digital signature mandatory for firms where Tax Audit applicable.  Revised IT Rule 12.
12. If you are filing online your Income Tax return, the paper copy of the ‘ITRV’ should only be sent through “speed post” to the Central Processing Centre (CPC) of the department in Bengaluru.

MCA

13. MCA has released General Circular No. 09/2014 dated 25th April, 2014 in relation to availability of E-forms and non-e-forms under Companies Act, 2013 w.e.f. 28-04-2014.

14.  Auditor to report fraud to board and audit committee, and then to Central Government in next 60 days. Damages for fraud in case of deposits not notified. [Companies Act 2013].

15. Approval of existing Related Party contracts in Listed Companies which continue beyond 31-03-2015 in first General Meeting after 01-10-2014 [SEBI Circular of 17-04-2014].
16. Both the Companies Act, 1956 and Companies Act, 2013 requires companies to maintain register and index of members, register and index of debenture holders, but the 2013 Act requires companies to maintain register and index of other securities also.

IMMEDIATE CONCERN W.E.F. APRIL 1, 2014 W.R.T. COMPANIES ACT 2013

17. Appointment of CS for Public Limited Companies having paid up capital more than 10 Crores whereas Private Limited Companies are exempted from appointment of KMPs
18. Annual Return Certification is compulsory from Practicing CS for the companies having Paid Up Capital more than 10 crores or Turnover 50 Crores in MGT 8 Form
19. Secretarial Audit from Practicing Company Secretary is compulsory for Public Limited companies having Paid Up Capital more than 50 crores or Turnover 250 Crores or more
20. CIN to be printed on all letter heads and printed material of company like invoice etc along with its registered office and corporate office address
21. Borrowing should be only from Directors. If taken from others then it will be treated as Deposit and Deposit rules have to be followed. (Deposit Rules 1 (C)(viii)
22. Unsecured Loan can be taken from Promoters only if any stipulation is imposed by the Financial Institution or Bank namely. Chapter 5 Deposit Rules 1 (C)(xiii)
23. Loan to Directors, or the companies in which there are common directors or shareholders is strictly prohibited under Section 185
24. Rotation of Statutory Auditor is required after transition period of 3 years form applicability of Companies Act 2013
25. Auditors can now audit only up to total 20 companies where as public limited companies can be 10 only
26. All companies will have to pass special resolution u/s. 180 for taking approval from Shareholders for approving limit of Total loan to be taken from the Financial Institution
27. Audit Committee, Remuneration Committee and Nomination Committee is required to be constitute in case of Public companies having Paid up capital of Rs. 10 crores or more or the companies having turnover more than Rs. 100 crores or more or having outstanding loans/ debentures/ deposit exceeding Rs. 50 crores or more.
28. At least Two Independent Director are required to be appointed in Public companies having Paid up capital of Rs. 10 crores or more or the companies having turnover more than Rs. 100 crores or more or having outstanding loans/ debentures/ deposit exceeding Rs. 50 crores or more.
29. Consolidation of accounts is mandatory in case of subsidiary or associate companies. Where associates companies are those in which a company having control of 205 or more in share capital of other company.
30. If the companies having profit more than Rs. 5 crores in any of the end of Financial Year, the company is required to incur the expenses on CSR equal to 2% of Average profits of last 3 years. For this CSR Committee of 3 directors is required to be incorporated where there will be at least 2 independent directors who will formulate the CSR Policy and the same will have to be publish over the Website of the Company.

Others

31. Reserve Bank of India circular dated 16-April-2014 regarding LLP permitted to receive Foreign Direct Investment (FDI).
32. Automatic renewal of deposit at CBS Post Office from date of maturity for same period [PO Time Deposit (Amendment) Rules, 2014 w.e.f 13-03-2014].
33. Initial subscription Rs 100 can E-pay PPF in CBS branch and depositor can opt for statement instead of pass book [Revised Rule 4 of PPF Scheme w.e.f 13-03-2014].
34. Provision for retirement benefit created on the basis of service weight age of an employee couldn't be allowed to be deducted as it was just a provision and could not be termed as gratuity fund or any other welfare fund under section 40A (9) [Commissioner of Income Tax, Coimbatore Vs. M/s. Pricol Ltd., Tax Case (Appeal) No. 343 of 2007, Date of Order: 01.04.2014, High Court of Madras].
35. In Service Tax, exemption has been granted to 'rice' treating it as agricultural produce. Thus, storage, warehousing, packing, loading, unloading etc for rice would be exempt from Service Tax. Earlier only paddy was exempt. 

36. W.e.f 25-03-2014, Standard format of Auditor Certificate of compliance with Accounting Standards, for Scheme/Petition filed with Stock Exchange [Circular of 25-03-2014].

ICAI

37.  Students registered for Articleship Training on or before 30th April, 2012 to undergo GMCS – II Course instead of GMCS Course.

38.  ICAI Mobile Application (ICAI NOW) is now available on android and iOS (iPhone and iPad) platforms. To download, please visit www.icai.org/mobile.

39.  Exposure Draft of the Accounting Standard for Local Bodies (ASLB) 3 on 'Accounting Policies, Changes in Accounting Estimates and Errors' open for public comments.