Saturday, 1 September, 2018 - Saturday, 15 September, 2018

Vistra India Update 359

COMPANY LAW

Relaxation of additional fees and extension of last date for filing Form BEN-2 and clarification on filing Form BEN-1 which relates to Significant Beneficial Owners Declaration.

Ministry of Corporate Affairs (MCA) has extended the time limit for filing Form BEN-2 without additional fees. The revised time limit would be 30 days from the date of deployment of Form BEN-3 e-Form on MCA portal. MCA has also clarified that new form BEN-1 would be introduced to replace the existing form and the time limit for filing will also be specified separately.

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Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2018

Ministry of Corporates Affairs (MCA) has introduced Rules to make it mandatory for every unlisted public company to issue the securities only in dematerialized form and facilitate dematerialization of all its existing securities. Accordingly, rules are prescribed to govern such dematerialization.

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Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules 2018

Ministry of Corporate Affairs (MCA) has amended Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules 2014 provide that the approval of the Central government shall no longer be required for the payment of remuneration to managerial personnel in excess of 11% of the net profit of a company. This implies that, in such cases, only the approval of shareholders (at least 75% vote-by way of a special resolution) would be required. New Form MR-2 has been introduced. Accordingly, MCA has made corresponding amendments in Schedule V of the Companies Act, 2013 and made 12th September as the effective date for Section 66 to Section 70 of Companies Amendment Act 2017.

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Notification of Effective date for Section 37 of Companies Amendment Act, 2017

Ministry of Corporate Affairs appoints 19th September, 2018 as the effective date on which section 37 of Companies Amendment Act, 2017 will be effective. With this amendment, among other changes, the criteria for applicability of CSR obligations to be tested every year instead of making it compulsory for all years if the conditions are met in one year.

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GOODS AND SERVICES TAX

Extension of Due Dates of filing of Form GSTR – 1 & Form GSTR – 3B

The Central Board of Indirect Taxes and Customs vide Notification No. 43/2018, 44/2018, 45/2018, 46/2018, & 47/2018 Central Tax – has extended the due date for filing of Form GSTR – 1 & Form GSTR – 3B as detailed below.

The registered persons having aggregate turnover of up to Rs. 1.5 crore

Sl. No

FORM GSTR-1 – Quarterly Return

Due date of furnishing details in FORM

GSTR-1

1

July 2017 - September, 2018

On or before 31st October 2018

2

October 2018 - December, 2018

On or before 31st January, 2019

3

January 2019 - March, 2019

On or before 30th April, 2019

 

The registered persons having aggregate turnover of more than Rs. 1.5 crore

Sl. No

FORM GSTR-1 – Monthly Return

Due date of furnishing details in FORM

GSTR-1

1

July 2017 - September, 2018

On or before 31st October 2018

2

October 2018 - March, 2019

11th day of the subsequent month

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Amendments to the CGST Rules, 2017

The Central Board of Indirect Taxes and Customs vide Notification No. 39/2018 Central Tax & 49/2018 – has notified the Forms of Annual Return and Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return

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Scope of principal-agent relationship covered under Schedule I of the Central Goods and Services Tax (CGST) Act, 2017

The supply of goods by an agent on behalf of the principal without consideration has been deemed to be a supply. In this connection, various representations have been received regarding the scope and ambit of the principal-agent relationship under GST.  Through Circular No. 57/31/2018-GST Dated the 4th September, 2018 the department has now clarified some of the issues and to ensure uniformity in the implementation of the provisions along with illustrations.

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Procedure for recovery of arrears of wrongly availed CENVAT credit under the earlier law and inadmissible transitional credit under GST

Various representations have been received seeking clarification on the process of recovery of arrears of wrongly availed CENVAT credit under the existing law and CENVAT credit wrongly carried forward as transitional credit in the GST regime. Vide Circular No. 58/32/2018-GST dated the 4th September, 2018 department has specified the process of recovery of the said arrears and inadmissible transitional credit as below.

The recovery of arrears arising under the existing law shall be made as central tax liability to be paid through the utilization of the amount available in the electronic credit ledger

Taxpayers may reverse the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B

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Clarification on refund related issues- regarding – CGST

Various representations have been received seeking clarification on issues relating to refund. Vide Circular No. 59/33/2018-GST dated the 4th September, 2018 department has clarified the issues such as

  • Submission of invoices for processing of claims of refund
  • System validations in calculating refund amount
  • Re-credit of electronic credit ledger in case of rejection of refund claim
  • Disbursal of refund amount after sanctioning by the proper officer
  • Status of refund claim after issuance of deficiency memo
  • Treatment of refund applications where the amount claimed is less than Rs. 1000

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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. 77/2018 - 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 7th of September 2018.  The Notification is appended below for reference:

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