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1.  The ITAT was not correct in allowing registration u/s 12AA, especially when the family run trust did not submit details of assets and properties that they possessed. [CIT v/s. Sri Guru Gorakh Nath Charitable Education Society, High Court of Punjab and Haryana]. 2.  MCA site will be closed on 11th July, 2015 (Saturday) due to periodic maintenance. Thus MCA 21 portal will not be available from 8am - 6 pm. 3.  Secretarial standards SS-1 (Meeting of BODs) and SS-2 (General Meetings) has become mandatory from 1st July, 2015. 4.  Government issued guidelines for use of digitally signed invoices/records in Central Excise and Service Tax [The neoteric, Notification No. 18/2015- Central Excise (N.T.)]. 5.  RBI has revised the ‘NBFC (Approval of Acquisition or Transfer of Control) Directions, 2014’ which regulates the requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of Non-Banking Financial Companies (NBFCs). 6....

TOUGH TIMES Market participants to appeal to Sebi against relaxing its stand on protecting minority shareholders The Securities and Exchange Board of India (Sebi) may find itself on a tricky terrain over the government's nudge to change rules on related party transactions in corporates. In a move towards promoting ease of doing business, the ministry of corporate affairs (MCA) has asked the regulator to tweak rules to make them at par with those under the Companies Act 2013. This has raised concerns among market participants about a dilution in Sebi's stand on protection of minority shareholders. Experts and shareholder advisory firms, which believe Sebi should hold its ground on the issue, will soon take up the matter with the regulator.The MCA changed its stand on related party transactions in 2014, when it lowered the threshold for minority shareholder votes for listed companies from 75% to 50% for passing resolutions. It also allowed voting by `related parties' wh...

Today(10.07.15) is Last Date to file ER-1,2& 6 for Excise returns by Non SSI assesses, EOUs & by units paying duty of more than 1Cr respectively, for June 2015. Regards, Webecreator!

The Reserve Bank of India (RBI) has issued final guidelines on mobility cards that will allow people to travel in buses, metros and taxis without cash. This semi- closed prepaid payment instruments (PPIs) will be issued by mass transit operators ( such as metro or road transport) and will have a minimum validity of six months. The maximum amount that can be loaded on the card is Rs.2,000. The regulator said the rationale behind introducing these cards was to reduce the amount of cash in the economy and to gradually move towards acashless society. “ In the process of moving from cashbased payments to electronic payments, the migration of micro and small value cash payments can play a significant role in achieving the vision of less- cash society. One such area where a large number of small- value cash payments take place relates to mass transit systems,” RBI said. Business Standard, New Delhi, 10th July 2015

Proxy advisory firm Institutional Investor Advisory Services ( IiAS) has asked the market regulator to stick to its rules governing related party transactions ( RPT). IiAS has slammed the recommendation by the ministry of corporate affairs ( MCA) to dilute the Securities and Exchange Board of India ( Sebi) rules as an anti- investor move. The MCA had asked Sebi to align its provisions regarding RPTs with the Companies Act 2013. “ IiAS believes Sebi should hold its own. Sebi’s provisions on related party transactions protect minority interest, while MCA has diluted its position to promote the ‘ ease of doing business’,” the firm said in a report on Thursday. The MCA has steadily diluted its stance on related party transactions since mid- 2014: It lowered the threshold to pass resolutions to 50 per cent from 75 per cent, and prevented only interested parties from voting, while allowing related parties to vote. Sebi has not aligned itself to the new regulations — and rightfully so...

1.  If assessee admits undisclosed income, substantiate manner and paid taxes on undisclosed income, no penalty u/s 271AAA of the Income Tax Act can be levied – [SPS Steel and Power Ltd. v/s. ACIT, ITAT KOLKATA]. 2.  Genuine expenditure paid in cash cannot be disallowed u/s 40A (3) of the Income Tax Act –[DCIT vs. KolliGopal Krishna, ITAT Hyderabad]. 3.  RBI has notified two new forms NBS 8 and NBS 9 to be filed annually within 30 days of closing of financial year. NBS 8 is for NBFC-ND with assets size between 100-500 crore. NBS 9 is for NBFC-ND with assets size below 100 crore. 4.  DGFT launches online payment facility for application fees through Credit/ Debit Cards. 5.  India and USA have signed an Inter Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters. 6.  ICAI on 06.07.2015 announced the new scheme of education and training for CA course. N...

Feels banks often opt for refinancing rather than resolving the problem, specially with lack of agreement between lenders Concerned over banks’ reluctance to resolve accounts that are showing signs of stress, and instead resorting to ‘ ever greening’, the Reserve Bank of India ( RBI) is mulling stringent norms for loans that are frequently falling in the category 2of special mention accounts (SMA 2). Loans are classified as SMA 2 when it becomes overdue for more than 60 days. The regulator had asked banks to form a joint lenders forum ( JLF) for accounts facing stress and emphasised on their resolution. However, in a majority of such cases, the consortium members are unable to agree on corrective action. To implement one, 60 per cent of the lenders in numbers and 75 per cent in value should agree. As a result, some large lenders are resorting to refinancing for the borrower, which enables the latter to meet immediate payment obligations; the problem is deferred. In bankers’ par...

The Reserve Bank of India (RBI) amended the norms for acquisition or transfer of ownership for non-banking finance companies (NBFCs), the central bank said in a notification. It said that any takeover or acquisition of control of an NBFC, which may or may not change management, would require prior written approval from RBI. Prior nod would also be needed in cases where there is acquisition or transfer of more than 26% shareholding in the NBFC’s paid-up equity capital. In a notification on 26 May, 2014, RBI had asked NBFCs to get written permission in case of acquisition or transfer of more than 10% shareholding in the NBFC. “Prior approval would, however, not be required in case of any shareholding going beyond 26% due to buyback of shares/ reduction in capital where it has approval of a competent court,” the latest RBI notification said. In case of any change in management where more than 30% of the directors on the board are changed, the NBFC would be required to get writte...

The Commerce Minis try on Thursday launched the facil ity for online payment of applica tion fees through credit or debit cards and other electronic fund transfers.The move is aimed at improving ease of doing business for exporters and importers. Commerce secretary Rita Teaotia said that the step will help in exporters and importers in terms of facilitating the country's trade and reducing their transactions cost. “We need to be in complete automation for exports. They (traders) should not come to our office. This is a great initiative. This is really going to facilitate our exporters,“ she said while launching the facility hereTeaotia added, this is also part of the initiative to streamline procedures and enhance transparency. The Economic Times, New Delhi, 10th July 2015

Move will shield Indian financial institutions from facing penal taxes in the US for failing to disclose dealings of American entities India and the United States have inked an accord that will help detect and discourage offshore tax evasion and shield Indian financial entities such as banks, insurance companies, custodians and broking houses from facing penal taxes in the US for failing to disclose the dealings of American citizens and US entities.The Foreign Account Tax Compliance Act or FATCA was signed on Thursday by Revenue Secretary Shaktikanta Das and US Ambassador Richard Verma. “FATCA is a mutual effort to combat tax evasion and it would be mutually beneficial for both the countries...FATCA would detect, discourage offshore tax evasion.This kind of exchange of information is top priority for governments,“ Verma said. India has opted to sign inter-governmental agreement with the US under FATCA, which will save finan cial institutions the bother of inking the agreement i...

Sebi’s recently cleared regulations for listing of these entities allow QIBs, which include funds; minimum trading size is Rs.10 lakh Retail investors intending to play the start- up theme will have to take the mutual fund ( MF) route. To keep retail investors away from the soon- to- belaunched start- up trading platform, the Securities and Exchange Board of India ( Sebi) has prescribed a high trading size of Rs.10 lakh. However, it has included MFs in the definition of qualified institutional buyers, enabling indirect entry of non- wealthy individuals in the trading segment. “Considering the risks involved in investing in companies proposing to access the said platform, it is proposed that retail investors may not be permitted to directly participate,” said Sebi in a board note. Equity MFs are predominately aretail investment product. So, if a fund choose to invest in start- ups, retail investor would be automatically invested in these. It is believed that fund managers ar...