Saturday, 30 September, 2017

Vistra India Update 336

September 16 - September 30, 2017

COMPANY LAW

Companies (Acceptance of Deposit) Second Amendment Rules, 2017

Ministry of Corporate Affairs had amended Companies (acceptance of Deposits) Rules 2014 to provide, inter alia, that Specified IFSC Public Company (Specified IFSC Public company means an unlisted public company which is licensed to operate by the Reserve Bank of India or the Securities and Exchange Board of India or the Insurance Regulatory and Development Authority of India from the International Financial Services Centre located in an approved multiservices Special Economic Zone set-up under the Special Economic Zones Act 2005 (28 of 2005) read with the Special Economic Zones Rules, 2006)  and a Private Company may accept from its members monies not exceeding one hundred per cent of aggregate of the paid up share capital, free reserves and securities premium account and such company shall file the details of monies so accepted to the Registrar in Form DPT-3. However the maximum limit in respect of deposits to be accepted from members shall not apply to following classes of private companies, namely:—

  • a private company which is a start-up, for five years from the date of its incorporation;
  • a private company which fulfills all of the following conditions, namely:
  1. which is not an associate or a subsidiary company of any other company;
  2. the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is less and
  3. such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73

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Companies (Restriction on Number of Layers) Rules, 2017

Ministry of Corporate Affairs with a view to check misuse of multiple layers of subsidiaries for diversion of funds/siphoning off funds has notified Companies (Restriction on Number of Layers) Rules, 2017, imposing a limit of two layers of subsidiaries which shall be effective from September 20, 2017. The rules would be applicable prospectively and for Companies that already having more than two layers of subsidiaries have to furnish details about them to the government. Banking and non-banking financial companies as well as insurance firms and government companies have been exempted from these restrictions.

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GOODS AND SERVICES TAX

Extension of due date for filing Form GST TRAN-1

Input tax credit available under VAT, Excise duty or service tax can be carried forward to GST regime by filing Form GST TRAN 1 on or before 30th September 2017. The Central Government has now extended the due date for filing of Form GST TRAN – 1 to 31st October 2017.

Click to view the circular

CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 90 /2017 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 22nd of September 2017. 

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