Saturday, 15 April, 2017

Vistra India Update 325

April 1st - 15th , 2017

Income Tax

Income –tax (Seventh Amendment) Rules, 2017

Rule 114B of the Income-tax Rules, 1962, provided that a person who has an account (other than a time deposit and a Basic Saving Bank Deposit Account) maintained with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies, has not quoted his permanent account number or furnished Form No. 60, as the case may be, at the time of opening of such account or subsequently, shall furnish his permanent account number or Form No.60, as the case may be, on or before 28th day of February, 2017.  Now the Central Government has extended this date to 30th June 2017.

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Prohibition for receipt of cash in excess of Rs. 2 lakhs.

Section 269ST of the Income Tax 1961 provides that no person shall receive an amount of two lakh rupees or more (a) in aggregate from a person in a day or (b) in respect of a single transaction or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account. Provided that the provisions of this section shall not apply to  

(i) any receipt by— 

a. Government;

b. any banking company, post office savings bank or co-operative bank;

(ii) transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.

The Central Government has now notified that provisions of section 269ST shall not apply to receipt by any person from any banking company, post office savings bank or co-operative bank .

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Company Law

Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017

Ministry of Corporate Affairs has introduced rules for merger or amalgamation of foreign Company with India Company and Vice versa. The Rules require the Companies to Comply with Provisions of section 230 to Section 232 of the Companies Act, 2013, seek approval from RBI and the Transferee Company shall ensure that the valuation is conducted by valuer who are members of recognized professional body in the jurisdiction of transferee Company. With the introduction of these Rules, Central Government has also appointed 13th April, 2017 as the date on which provisions of section 234 of the Companies Act, 2013 (relating the merger of foreign Companies with Companies and Vice versa) will come in to force. 

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Companies (Removal of Names of Companies from Register of Companies) Amendment Rule, 2017 

Ministry of Corporate Affairs has introduced Form No. STK – 5A to be issued by Registrar for publication of notice when he has reasonable cause to believe that the name of a particular Company needs to be removed from Register of Companies as per section 248 of the Companies Act, 2013. 

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Companies (Registration of charges) Amendment Rule, 2017

Ministry of Corporate Affairs has notified amended Form No. CHG-1 relating to registration of creation, modification of charge (other than those related to debentures), Form No. CHG – 4 relating to particulars for satisfaction of charges, Form No. CHG – 9 relating to application for registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debentures.

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Service Tax 

Amendment to services provided by one person to another, both located in non-taxable territory, by way of ocean transport from a place outside India to the customs station of clearance in India

The Department of Revenue of Ministry of Finance vide Notification Nos. 14, 15 & 16 / 2017 and Circular No. 206/4/2017 ST dated 13th April, 2017, has made the following amendments to the rules governing services provided by one person to another, both located in non-taxable territory, by way of ocean transport from a place outside India to the customs station of clearance in India 

  1. Importer is liable to pay service tax instead of the person in charge of the vessel.  This is effective from 23rd April, 2017.
  2. Person liable to pay service tax has been provided with an alternate mechanism for paying Service tax at 1.4%, Swachh Bharat Cess at 0.05% and Krishi Kalyan Cess at 0.05% of CIF value of imported goods (total effective rate of 1.5% of CIF value). This option can be exercised effective from 22 January 2017.
  3. The point of taxation shall be the date of bill of lading of such goods in the vessel at the port of export.  This option will be available effective from 22 January 2017.
  4. Importer of goods shall be allowed to avail CENVAT credit on the basis of service tax payment challan.  This is effective from 23rd April, 2017.

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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. 33 /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 7th of April 2017.  The Notification is appended below for reference:

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Labour Laws 

Employee’s State Insurance Corporation (ESIC) new scheme to promote registration of Employers/Employee extended till 30 June 2017

ESIC had launched a one-time employer friendly drive to encourage the employers to register themselves under the ESI Scheme vide their circular dated 20 December 2016. This scheme was open for the period from 1st January 2017 to 31st March 2017. Based on the request from Employers and Employer associations to extend the Scheme, ESIC has extended the scheme for another 3 months till 30 June 2017. The salient features of the scheme are:

  1. The Employer registering during period will be treated as covered from the date of registration or as declared by them.
  2. The newly registered employees shall be treated as covered from the date of their registration
  3. This will not have any bearing on actions taken/required under ESI Act, if any, prior to 20th December 2016.

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Events

Berlin | 26 Feb - 1 Mar
Hong Kong | 2 Mar
Krakow | 8 Mar
Hong Kong | 12 Mar
Cannes | 13 Mar - 16 Mar
Bucharest, Romania | 28 Mar - 29 Mar

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