NCLT impose penalty on company for non appointment of CS

M/s CARMEL ASIA HOLDINGS PRIVATE LIMITED WAS ASKED TO PAY A COMPOUNDING FINE OF Rs 4,72,675 for Not Appointing Company Secretary

Bangalore NCLT has made remarkable verdict where it ordered to pay a compounding fee of Rs 4,72,875 for Not Appointing Company Secretary .

Image result for ncltThe Company approached the erstwhile CLB and the present NCLT , Bangalore to compound the offence committed by it under section 383A for not appointing company secretary under section 383 A of the Companies Act ,1956. (Section 203 of Companies Act 2013)

It was argued by the petitioner company that even though it had appointed many company secretaries , they left the company in search of green pastures.

The Practicing Company secretary of the Company has informed the NCLT that the petitioner company is a subsidiary of M/s Sandur Power Company Limited and did not have adequate business activities and due to limited exposures , the appointed company secretaries are leaving the company in a short period. As such , the company is not able to get full time secretary during the intervening period.

It reflects that Petitioner Company has taken reasonable efforts to comply with the provision of the section 383 A of the CA 1956 but could not get a Company Secretary for the continuous period.

383A. Certain companies to have secretaries (1) Every company having such paid-up share capital as may be prescribed (Rs. 5 crores) shall have a whole-time secretary and where the Board of directors of any such company comprises only two directors, neither of them shall be the secretary of the company: Provided that every company not required to employ a whole-time secretary under sub-section (1) and having a paid-up share capital of 10 lakh rupees or more shall file with the Registrar a certificate from a secretary in whole-time practice in such form and within such time and subject to such conditions as may be prescribed, as to whether the company has complied with all provisions of this Act and a copy of such certificate shall be attached with Board’s Report referred to in Section 217.

It is to be noted that argument by the company that it took earnest efforts to appoint a company secretary and is using the services of a practicing company secretary was not accepted by the NCLT , Bangalore.

Image result for Tribunal orderNow , the available company secretaries has touched the land mark trend of 50000 numbers , companies in India cannot argue that adequate company secretaries are not available for employment and they are taking earnest efforts to find a company secretary or using the services of a practicing company secretary.

There are lot of company secretaries who have qualified recently are find it difficult to sit in a job and they are jobless. They are vexed to blame themselves for successfully completing the company Secretaries course.

If any member finds that a company avoids to fill in a company secretary position , they can bring it to the notice of concerned Registrar of Companies.

NCLT , Bangalore decision is a land mark decision and it is an eye opener for those erring companies which has not appointed a company secretary.

Click here to read final order

NBFC cash loan against gold restricted to Rs 20,000

Image result for nbfc logoNon-Banking Finance Companies (NBFCs) cannot lend more than Rs 20,000 in cash against gold, the Reserve Bank said today. The earlier provision for NBFC was that high value loans against gold of Rs 1 lakh and above must only be disbursed by cheque. RBI reduced the amount to Rs 20,000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act.

Image result for Income taxThe relevant threshold under the Income Tax Act, 1961 is Rupees Twenty thousand,” the central bank said, while amending the provisions for disbursal of loan amount in cash by NBFCs. This assumes significance in the backdrop of government’s focus on less cash economy and promoting digital payments.

Image result for RBIThe decision created severe cash crunch in the country in the last two months of 2016 as 86 per cent of the currency was declared invalid. RBI had placed several restrictions on cash withdrawals from the bank branches and ATMs.

However, with increasing pace of remonetisation, all the restrictions, except on savings bank account, have been lifted. The cash withdrawal limit on savings bank account too will be removed from March 13.

RBS (Royal Bank of Scotland) included in list of Scheduled Commercial Banks

Inclusion of “The Royal Bank of Scotland plc” in the Second Schedule to the Reserve Bank of India Act, 1934

RBI/2016-17/244                                                               DBR.No.Ret.BC.54/12.07.150/2016-17

March 09, 2017

All Scheduled Commercial Banks

Dear Sir,

Inclusion of “The Royal Bank of Scotland plc” in the Second Schedule to the Reserve Bank of India Act, 1934

We advise that the “The Royal Bank of Scotland plc” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DBR.IBD.No.3878/23.13.020/2016-17 dated September 29, 2016, and published in the Gazette of India (Part III – Section 4) dated January 21- January 27, 2017

Yours faithfully

(M.G.Suprabhat)
Deputy General Manager

Due Dates – March Month – Income Tax

2 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of January, 2017.
7 March 2017 –
Due date for deposit of Tax deducted/collected for the month of February, 2017. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan.
15 March 2017 –
Due date for furnishing of Form 24G by an office of the Government where TDS for the month of February, 2017 has been paid without the production of a challan.
15 March 2017 –
Fourth instalment of advance tax for the assessment year 2017-18.
15 March 2017 –
Due date for payment of whole amount of advance tax in respect of assessment year 2017-18 for assessees covered under presumptive scheme of Section 44AD.
17 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of January, 2017.
30 March 2017 –
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of February, 2017.
31 March 2017 –
Lastdate for declaration of undisclosed income under Pradhan MantriGaribKalyanYojana, 2016.
31 March 2017 –
Due date for payment of second installment (i.e., 25% of tax, surcharge and penalty) under Income Declaration Scheme, 2016.

No longer 100% deduction allowed for NGO’s

Image result for ngo's in indiaDonations made to hundreds of projects carried out by NGOs across the country will no longer be eligible for a 100% income tax (I-T) deduction in the hands of the donor from April 1. While tax savings are not the main purpose, if donations are made in March towards eligible projects, then donors comprising salaried employees could reap an I-T benefit.

At present, donations made for specific projects run by NGOs that have been certified under section 35AC entitle the donor to a 100% I-T deduction under section 80GGA in respect of the donated amount.

However, section 35AC has a sunset clause which expires this March. Section 80GGA is not as widely known as section 80G, which permits a 100% I-T deduction in respect of certain donations (such as PM’s National Relief Fund) and a 50% I-T deduction in most other cases.

Image result for ngo's in india“Taxpayers who do not earn income under the head `profits and gains of business and profession’, such as salaried employees, can claim the benefit of section 80GGA. While the employer cannot consider the donations made, while computing tax to be deducted at source against salary income, the employee can claim the benefit of the same in his I-T return and claim an I-T refund, if applicable,“ says Pradeep Mahtani, director, HelpYourNGO Foundation. A chartered accountant says, “In fact, if there has been a short deduction of tax at source and advance tax has not been paid by the salaried employee, by making donations eligible for I-T deduction up to March 31, the salaried taxpayer could mitigate his I-T penalty . Donors should ensure that they get the appropriate receipt.”

Notifications are issued by the finance ministry from time to time, certifying the projects that are eligible under section 35AC, the period of eligibility and also the total cost of the eligible project. For instance, as regards NGOs registered in Ma harashtra, these include projects by Magic Bus (skill development and livelihood programme), Association of Palliative Care (for a palliative care centre), Foundation of Promotion for Sports and Games (Olympic Gold Quest project) and Mesco (educational scholarships).

Trade Mark Rules 2017

Image result for Trade mark rules 2017The Trade Mark Rules, 2017 have been notified and have come into effect from 06th March, 2017. These Rules, which replace the erstwhile Trade Mark Rules 2002, will streamline and simplify the processing of Trade Mark applications. Some silent features:-

  • Number of Trade Mark (TM) Forms have been reduced from 74 to 8.
  • To promote e-filing of TM applications, the fee for online filing has been kept at 10% lower than that for physical filing.
  • Based on stakeholders feedback, the fees for Individuals, Start-ups and Small Enterprises have been reduced from that proposed in the draft Rules i.e. only Rs 4,500 as against Rs 8,000 for e-filing of TM applications proposed at the draft stage.
  • Modalities for determination of well-known trademarks have been laid out for the first time.
  • The provisions relating to expedited processing of an application for registration of a trade mark have been extended right upto registration stage (hitherto, it was only upto examination stage).
  • Over all fees have been rationalized by reducing the number of entries in Schedule I from 88 to just 23.
  • Modalities for service of documents from applicants to the Registry and vice-versa through electronic means have been introduced to expedite the process; e-mail has been made an essential part of address for service to be provided by the applicant or any party to the proceedings so that the office communication may be sent through email.
  • Hearing through video conferencing has been introduced.
  • Number of adjournments in opposition proceedings has been restricted to a maximum of two by each party, which will help dispose off matters in time.
  • Procedures relating to registration as Registered User of trademarks have also been simplified.It may be recalled that the examination time for a TM application has already been brought down from 13 months to just 1 month in January 2017; this is despite a stupendous 35% jump in TM filings in 2015-16 vis a vis the previous year. The new Rules should give a boost to the Intellectual Property Regime in India.

Click here to view notification..!!