Decoding changes in LTCG on listed equity shares

Navigating through the complex changes in the taxation of capital gains on listed equity shares

On February 1, 2018, the long running tax-free party for equity investors finally met its pooper. Budget 2018 imposed 10 per cent tax on long-term capital gains (LTCG) above ₹1 lakh a year on listed equity shares and equity mutual funds. This tax kicked in from April 1, 2018. It has a wide impact — not just on

CAN A TRUST CAN BE MEMBER OF A COMPANY ?

As per section 5 of the LLP Act, 2008, any individual or body corporate can become a partner in an LLP. While technically, a trust represented by a trustee company could be regarded as a body corporate, practically there existed an ambiguity as to whether a trustee representing a domestic trust could be permitted to become a partner in LLP.

REITS, INVITS AND ALTERNATIVE INVESTMENT FUNDS (AIFS).

This uncertainty led to inadvertent hurdles in the smooth implementation and functioning of the investment pooling vehicles such as REITs, InvITs and Alternative Investment Funds (AIFs). It may be noted that the regulations pertaining to REITs and InvITs recently introduced by SEBI stipulated that REITs and InvITs being set up as a trust could hold specified assets either directly, or through Special Purpose Vehicles (SPVs). The SPVs could either be a company or an LLP.

SEBI REGULATIONS DEALING WITH AIFS

Similarly, according to SEBI regulations dealing with AIFs, an AIF could be incorporated as a trust to make investments in investee companies. The term ‘investee company’ has been defined to mean any company, SPV or LLP or body corporate in which an AIF makes an investment.

MCA CLARIFICATION ON TRUST BEING A MEMBER OF COMPANY

The Ministry of Corporate Affairs (MCA) has recently issued General Circular No. 37/ 2014 dated October 14, 2014, stating that a trustee (being a body corporate) of Real Estate Investment Trusts (REITs), Infrastructure Investment Trust (InvITs), or any other trust set up under the regulations prescribed under the Securities and Exchange Board of India (SEBI) Act, 1992, is not barred from becoming a partner in an limited liability partnership (LLP). Furthermore, such bodies corporate are permitted to hold partnership in an LLP without an addition of the statement that it is a trustee.

 Trust can hold share in the company. Trust will be the registered shareholder and beneficiaries will be the beneficial shareholder. MGT-4, MGT-5 and MGT-6 needs to be filed for the same.

WELCOME MOVE BY MCA

The clarification by the Ministry is a welcome move providing clarity in

REDUCTION OF TIMELINE FOR LISTING OF DEBT SECURITIES AFTER THE CLOSURE OF THE ISSUE TO 6 WORKING DAYS AS AGAINST THE PRESENT REQUIREMENT OF 12 WORKING DAYS.

In order to make the existing process of issuance of debt securities, Non Convertible Redeemable Preference Shares, and SEBI (Public Offer & Listing of Debt Instruments) Regulations & SEBI ( Issue of and Listing of Securities by

GST on common expense

Recently the AAR has delivered something which is common for the GST thinkers and the one working with the corporates with the better accounting practices and not so common for the layman and the small and medium companies.

Yes, I am talking amount the recent pronouncement by the Authority of Advance Ruling

Disallowance under Section 43B of I-T Act, 1961 and unpaid Service Tax

Disallowance under Section 43B of I-T Act, 1961 and unpaid Service Tax 

By Lukose Joseph, CA & Anil P Nair, CA

Executive Summary

BY virtue of Section 43B read with Section 145A of Income Tax Act, 1961 and decision in ACIT v Real Image Media Technologies - 2007-TIOL-514-ITAT-MAD if service tax is not routed through Profit and Loss Account, but is entered

Recruitment Notice for the post of Assistant Manager in HR, Marketing and Finance in MTNL through Online Examination

http://202.191.140.165/mtnlamapr18/

ICAI Representation on Revised Form 3CD

 ICAI Representation on Form 3CD.pdf

Summary of Amendments in 3CD FORM for AY 2018-19

_*6 Amendments + 9 Insertions = Total 15 Changes*_

*Summary of Amendments:*

1. *sl 4* - GSTIN to be mentioned.

2. *sl 19* - Allowance under Section 32AD is to be reported.

3. *sl 24* - Deemed gains under Section 32AD to be reported.

4. *sl 26* - Clause (g) of Section 43B (sum payable to Indian Railways for use of assets) is to be

Discrepancies in CA results reported

Multipurpose Empanelment Form (MEF) Application for the year 2018-19

Multipurpose Empanelment Form (MEF) Application for the year 2018-19 with the following key highlights:

1. Acceptance of digitally signed or uploading the declaration duly signed by all continuing Partner (s) / Proprietor of the firm or Member practicing in individual name.
2. Introduction of Grey Fields in front of pre-filled fields (in Green) to facilitate the applicant

All things that GST Authorities want you to do - new 'simplified' GST returns

CONTINUING with the Government's leitmotif, yesterday, a 54 pages booklet containing the new "simplified" GST returns and formats was placed in the public domain.

This article highlights various responsibilities cast on the GST payers in the new return