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The government- appointed Bankruptcy Law Committee has recommended aspeedy process and a timeline of six to a maximum of nine months to deal with insolvency and enable windingup of operations of a company or a limited liability entity. The draft law prepared by the panel has also proposed early identification of financial distress so that steps can be taken to revive the ailing company. The committee has prescribed a timeline of 180 days for dealing with applications but it can be extended for another 90 days by the adjudicating authority, only in exceptional cases. During the insolvency resolution period, an interim resolution professional would manage the debtor. The professional would prepare a plan that needs to be approved by a majority of 75 per cent of voting share of the financial creditors. Once the plan is approved, the adjudicating authority must give its nod. However, if an insolvency resolution plan is rejected, the adjudicating authority will order for liquidation.

Updates Of the Day 1.Government has notified interest rate of 2.25% and 2.50% under gold monetization scheme. 2.SEBI has prescribed the disclosure requirements in the abridged prospectus in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the Companies Act, 2013. 3.Application for duty credit scrips of additional 2% under market linked focus product scheme. Trade notice 08/2015. 4.Extension to 15.12.15 of last date to file online reconciliation return in form 9 for the year 2014-15.Circular No. 28 of 2015-16. 5.Interest under section 215 cannot be levied if partner had paid advance tax in individual capacity on bonafide estimate of firm’s income. (Punjab and Haryana High Court) in [CIT vs Mahesh Munjal HUF]. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

Experts & trade unions concerned over move, seek safety of employees The government's Make-In-India initiative involves a brand new definition for manufacturing activity which seeks to divorce all packaging processes from the conventional understanding of industrial production. This approach to what constitutes a `manufacturing process' is a pivotal part of a new legislation being readied by the government to replace the 1948 factories law and the Factories Bill of 2014 that has already been vetted by a parliamentary panel. Citing the example of milk, the labour ministry has argued that packing it into `different volumes or weight' does not change the character of milk and shall therefore not be construed as manufacturing under the proposed new law. `Any process or activity resulting in any alteration of original character, such as nature, state, shape, size, usefulness and or making value addition to the original material acted upon when subjected to the proc

Instruments such as Reits, InvITs, unsponsored GDR, GIFT find few takers At least five new fundraising avenues, despite having cleared with much fanfare by the regulatory authorities, have remained doubtful starters due to lack of clarity on the taxation front. Instruments such as Real Estate Investment Trusts (Reits), Infrastructure Investment Trusts ( InvITs) and unsponsored depository receipts ( DRs) have failed to take off. Even the Gujarat International Finance Tech, or Gift) City, has yet to see any business, despite many blue chip companies showing interest in set their shops there. An official said they were in the process of removing impediments to make sure these new initiatives take off. “The Department of Economic Affairs ( DEA) is in touch with the revenue ministry to clear these hurdles. The past two Budgets have had numerous announcements for capital markets. We are trying to iron out some of the pending issues,” said the official. Reits, InvITs and unsponsored

Gold deposited by households to gold savings accounts will be used for auctioning, replenishment of RBI’s gold reserves Prime Minister Narendra Modi will launch three new schemes — the Gold Monetisation Scheme (GMS), Sovereign Gold Bond Scheme, and the Gold Coin and Bullion Scheme — in New Delhi on Thursday, according to an official Finance Ministry statement. The GMS consists of a revamped Gold Deposit Scheme and Gold Metal Loan Scheme. Under GMS, gold deposited by households to gold savings accounts will be put to use for auctioning, replenishment of the Reserve Bank India’s ( RBI’s) gold reserves, coins and lending to jewellers. The tenures of deposits can be for a short term of one to three years, a medium term of five to seven years or a longer term of 11 to 15 years. The RBI will start issuing sovereign gold bonds on November 26, with a tenure of eight years and an interest rate of 2.75 per cent. The bonds will be open for public subscription from November 5to 20. The ten

The Special Investigation Team (SIT) on black money has recommended that law enforcement and intelligence agencies such as the Serious Frauds Investigation Office (SFIO) and the Enforcement Directorate ( ED) examine the cases of persons holding directorships in more than 20 companies and more than 20 companies operating from the same address to detect shell companies involved in generation of black money. In its third report, SIT has found that 2,627 personsaredirectorsofmore than 20 companies in violation of the new Companies Act. To tighten noose around shell companies, it has recommended that SFIO to activelyandregularlymine( Ministry of Corporate Affairs) MCA- 21 database.“ Theseredflagindicatorscould be based on common DIN ( Director Identification Number) in multiple companies, companies with same address, same contact numbers, use ofonlymobilenumbers, suddenand unexpected change in turnover declared in returns,” the report said. Itsaidtheseindicatorsareillustrative in nature a

Move to simplify tax regime, reduce litigation and help improve business environment The finance ministry is streamlining safe harbour rules and advance agreements, two mechanisms to determine the price of services rendered by a multinational to its subsidiary in India. Safe harbour rules — directives on margins the tax authorities should accept for the transfer price declared by an assessee — have drawn a tepid response since they were introduced a couple of years ago. There is also a huge backlog in advance pricing agreements (APAs), an ahead- of- time understanding between a taxpayer and the tax authority on an appropriate transfer pricing methodology. The move would simplify the tax regime, reduce litigation and help improve the business environment, a finance ministry official said. The steps will involve lowering the margins in safe harbour rules and definitions will be reworked to remove ambiguities. India announced the safe harbour rules in 2013, but the high margins