Friday, 1 June, 2018 - Friday, 15 June, 2018

Vistra India Update 353

INCOME TAX

Cost Inflation Index for FY 2018-19 notified

Government of India has notified 280 as the cost inflation index for FY 2018-19.

Click to view the circular

COMPANY LAW

Companies (Appointment and Qualification of Directors) 3rd Amendment Rules, 2018

Ministry of Corporate Affairs has amended Companies (Appointment and Qualification of Director’s) Rules 2014 to introduce new Form DIR 3 (Application for DIN) and Form DIR 6 (Intimation for change in the particulars of Directors).

Click to view the circular

Companies (Management and Administration) 2nd Amendment Rules, 2018

Ministry of Corporate Affairs has amended Companies Management and Administration Rule to provide, among others:

  • Return for intimating change in shareholder position of promoters and top 10 shareholders has been deleted
  • The requirement of advance filing a copy of the proposed special resolution with the registrar in accordance with first proviso of sub-section (1) of section 94 has been deleted
  • In the rules providing for the procedure to be followed for conducting business through postal ballot, a proviso has been added to provide that any item of business required to be transacted by means of postal ballot, may be transacted at a general meeting by a company which is required to provide the facility to members to vote by electronic means under section 108, in the manner provided in that section  listing out the items of business that shall be transacted only by means of voting through a postal ballot.

Click to view the circular

Companies (Significant Beneficial Owners) Rules, 2018

Ministry of Corporate Affairs has notified Companies (Significant Beneficial Owners) Rules, 2018 to provide, among others

  • Definition of registered owner and significant beneficial owner
  • Requirement and the Declaration to be filed by significant beneficial owner
  • Requirement and the Return that the Company needs to file on receipt of declaration
  • Register of significant beneficial owners

Click to view the circular

Effective date for certain provisions of Companies Amendment Act, 2017 notified

  1. Ministry of Corporate Affairs appoints 13th June, 2018 as the effective date on which certain section of Companies Amendment Act, 2017 will be effective. The important sections notified to be effective are:
  2. Investigation of Beneficial Ownership shares in certain cases replacing earlier section.
  3. The requirement for filing the return with Registrar in case of change in promoter’s stake has now been deleted.
  4. The Annual general meeting of an unlisted company can be held anywhere is India subject to receipt of confirmation of all the shareholders in advance.

Click to view the circular

RBI AND FEMA

Foreign Investment in India – Reporting in Single Master Form

With a view to consolidate various forms that are to be filed with RBI intimating foreign investment into India, Reserve Bank of India has now introduced a Single Master Form (SMF) that can be filed online.  This form consolidates forms like FC-GPR, FC-TRS, Form LLP –I, Form LLP –II, Form CN (for convertible notes), Form DRR (for Depository receipts), Form ESOP ( for ESOPs issued to employee resident outside India) , Form DI (for downstream investment made), Form InVi (for investment vehicle), The  notification contains two annexures, Annexure 1 contains foreign investment details made into the company till date and Annexure 2 to report any subsequent transaction. SMF now requires company to declare conversion ratio for convertible instruments, any escrow amounts or indemnity given for share purchase transactions.  Interface to file Annexure 1 (Entity Master Form) will be available on RBI website www.rbi.org.in  from June 28, 2018 to July 12, 2018. Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder. Annexure 2 contains the SMF format. The final form for SMF, when hosted, will be available in the Master Direction-Reporting under FEMA, 1999. In the current format of SMF, Advance Remittance Form is not included. Similarly annual declaration of Foreign Assets and Liabilities is also not included.

Click to view the circular

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017 – Notification of effective date for certain provisions.

Reserve Bank of India has notified that proviso (ii) to sub-regulation (1) of regulation 10 and proviso (ii) to sub-regulation (2) of regulation 10 of the Foreign Exchange Management (Transfer or Issue of Security by a person resident outside India) Regulations, 2017, shall come into force with effect from June 02, 2018. These provisions were originally included in the amendments made to the said Regulations in November 2017. These provisions relates to transfer of capital instruments in an Indian company to FPI, NRI and OCI.

Click to view the circular

External Commercial Borrowings (ECB s)  – Monthly reporting through ECB 2 Return

RBI amended the format of ECB 2 return for reporting monthly External Commercial Borrowings. The amendment is to capture the details of the hedges for ECBs through a simplified format.   Part  E  of  the  Return,  accordingly,  is   modified  so  as  to  include   only  standard  information  on  hedge d/unhedged  ECB  exposure  (Annex ).  Details  of  hedging  in  Part  E.1  of  the   Return  and  foreign  exchange  earnings  and  expenditure  in  Part  E.2  of  the  Return  should  be   furnished  in  additive  format.  Revised monthly reporting format of ECB-2 Return would be applicable from month ending June 2018.

Click to view the circular

GOODS AND SERVICES TAX

Clarifications with regard to e way bill and services to SEZ in certain cases under GST

The Central Board of Excise and Customs (CBEC) vide Circular No. 47 & 48 2018 – has clarified on certain matters in view of representations received from stakeholders.  Important clarifications covered are as follows.

E way bill is required to be generated where goods transit through another State while moving from one area in a State to another area in the same State

There is no requirement to generate an e-way bill, where goods move from a DTA unit to a SEZ unit or vice versa located in the same State if the same has been exempted under rule 138(14)(d) of the CGST Rules.

It is clarified that that services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply.

It is clarified that subject to the provisions of section 17(5) of the CGST Act, if event management services, hotel, accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorized operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier.

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. 49 /2018 - 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 8th of June 2018. 

Click to view the circular

Events

San Francisco | 12 Dec
San Francisco | 14 Dec

Archive