Friday, 30 June, 2017

Vistra India Update 330

June 15- June 30, 2017

Company Law

Companies (Transfer of Pending Proceedings) Second Amendment Rules, 2017

The Ministry of Corporate Affairs (“MCA”) has amended the Transfer of pending proceeding Rules mainly to

  • Extend the time limit for petitioner to submit the requisite information, including the details of the proposed Insolvency Professional up to 15th July, 2017 in order to transfer the pending winding up application (on ground of inability to pay debts) to NCLT, failing which the petition shall stand abated.
  • Clarify that, in case of pending proceeding relating to Voluntary Winding up where notice of the resolution by advertisement has been given, but the company has not been dissolved before 1st April, 2017, shall continue to be dealt with in accordance with provisions of the Companies Act, 1956 & rules thereunder.

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Companies (Audit and Auditors) Second Amendment Rules 2017

The Ministry of Corporate Affairs (“MCA”) has amended the Companies (Audit and Auditors) Rules 2014 to increase the paid up capital threshold limit for rotation of auditors of Private Companies from Rupees 20 crore to Rupees 50 crore.

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RBI and FEMA

Amendment  to Foreign  Exchange  Management  (Export  of  Goods  &  services)  Regulations

Amendment to Regulation 6 C is notified vide Foreign Exchange Management (Export of Goods & services) (Amendment) Regulations, 2017.  Pursuant to this amendment Authorized Dealers are not required to retain duplicate copies of exchange control copies of shipping bills submitted by exporters while declaring their exports and subsequent realizations.  There is no change in retaining copies of EDF and SOFTEX covered under this Regulation 6 C.

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DIPP Issues Standard Operating Procedure For Processing FDI Proposals

Pursuant to winding down of Foreign Investment Promotion Board (FIPB), Department of Industrial Policy & Promotion (DIPP) has now come up with Standard Operating Procedure for processing Foreign Direct Investment (FDI) proposals that require prior approval of Government.  Significant aspects of these procedures include online filing of FDI applications and a time frame of 8 – 10 weeks (depending on requirement of security clearance from the Ministry of Home Affairs (MHA)) for approving FDI proposals. Digitally signed application forms can be filed on the portal Foreign Investment Facilitation Portal (FIFP). If online application is not digitally signed then physical copy of the signed application form has to be submitted to the Department within 5 days.

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Service Tax

Due date for filing of ST3 return for the period from April 01, 2017 to June 30, 2017

The Central Board of Excise and Customs (CBEC) vide Notification No. 18/2017 – Service Tax has notified  August 15th 2017 as the due date for filing of ST-3 or ST-3C as applicable for the period from April 01, 2017 to June 30, 2017.  Further, the due date for filing revised return for the above period is within 45 days from the date of filing of original return. 

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Customs and Central Excise

GST Transitional Provision notified

The Central Board of Excise and Customs (CBEC) has issued notifications under Customs and Central Excise on the Transitional Provisions in view of introduction of GST effective from July 01, 2017. Important topics covered under the various notifications are as follows.

  • Carry forwards of Unavailed Cenvat Credit
  • Submission of Bill of Entries for Imports
  • Amend various Customs and Central Excise Exemption notifications relating to Export Promotion Schemes
  • Prescribes effective rates of customs duty and IGST for goods imported into India
  • Shipping Bill (Electronic Declaration) Regulations
  • Shipping Bill & Bill of Export(Forms) Regulations
  • EOU Clearance process and
  • Other administrative matters

The Notifications can be accessed at http://cbec.gov.in/

Labour Laws

Change in due date of remittance of Employee State Insurance(ESI) contribution

With effect from 1 July 2017, the due date of remittance of ESI contribution is 15th of every month. This would be applicable for the contribution payable for the month of June 17 wherein the payment has to be made on or before 15 July 2017.

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