Monday, 16 July, 2018 - Tuesday, 31 July, 2018

Vistra India Update 356

INCOME TAX

Amendment to Tax audit report (Form 3CD)

The Central Government has amended Income Tax Rules 1962 to notify changes in the Tax audit report (Form 3CD).  Disclosures in the following areas have been included in Form 3CD.

  1. Income from Other Sources
  2. Secondary Adjustment under section 92CE
  3. Taxation of gifts
  4. GAAR
  5. Deemed dividend
  6. Specified Financials Transactions
  7. FATCA
  8. Country by Country reporting
  9. GST
  10. BEPS

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COMPANY LAW

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

Ministry of Corporate Affairs appoints 27th July, 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:

  1. For the purpose incorporating a company, a declaration (Instead of affidavit) shall be submitted by each of the subscribers to the memorandum and each of the first directors named in the articles in Form No.INC-9.
  2. Now, time limit of 30 days (instead of 15 days) is available to companies to have registered office after incorporation or to intimate change in the registered office to the ROC.

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Companies (Accounts) Amendment Rules 2018

Ministry of Corporate Affairs has amended Companies (Accounts) Rule, 2014 to provide the following:

1. The report of Board of Directors to contain:

  • a disclosure, as to whether maintenance of cost records as specified is required by the Company and accordingly such accounts and records are made and maintained,
  • a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

2. The Board’s Report of One Person Company and Small Company shall be prepared based on the stand alone financial statement of the company, which shall be in abridged form and contain the following:-

  • the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;
  • number of meetings of the Board;
  • Directors’ Responsibility Statement as referred to in sub-section (5) of section 134;
  • details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;
  • explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report;
  • the state of the company’s affairs;
  • the financial summary or highlights;
  • material changes from the date of closure of the financial year in the nature of business and their effect on the financial position of the company;
  • the details of directors who were appointed or have resigned during the year;
  • the details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future.
  • The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2.

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Companies (Incorporation) 3rd Amendment Rules_2018

Ministry of Corporate Affairs has amended Companies Incorporation Rules to provide, apart from other things, that for the purpose of incorporation, the declaration (Instead of affidavit) shall be submitted by each of the subscribers to the memorandum and each of the first directors named in the articles in Form No.INC-9. The content of declaration remains same i.e.

  • He is not convicted of any offence in connection with the promotion, formation or management of any company, or
  • He has not been found guilty of any fraud or misfeasance or of any breach of duty to any company under this Act or any previous company law during the preceding five years and
  • All the document  filed with the Registrar for registration of the company contain information that is correct and complete and true to the best of his knowledge and belief;

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GOODS AND SERVICES TAX

Extension of Due Dates of filing of Form GSTR – 6

The Central Board of Excise and Customs (CBEC) vide Notification No. 30 2018 – has extended the due date to 30th September 2018 for filing of Form GSTR -6 (return by Input Service Distributor) for the months from July 2017 to August 2018.

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CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 63 /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 20th of July 2018. 

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