Lok Sabha passes the Companies (Amendment) Bill, 2014

The Lok Sabha today passed the Companies (Amendment) Bill, 2014, after Corporate Affairs Minister Arun Jaitley told the house that some of the original provisions were only posing hurdles to doing business in the country.
"The object of these amendments is solely to ease the process of doing business in India. None of them have any ulterior motive," Jaitley, who also holds the finance portfolio, said replying to the debate on amending the Companies Act, 2013.
"Some of its provisions would have made doing business in India extremely difficult and the investment environment in the country would be disrupted by such a law," he added.
The amendments to the Companies Act, 2013, which came into effect from April 1 this year, have been proposed in order to address some issues raised by stakeholders.
Among the major concerns of stakeholders were protecting confidentiality of board resolutions, as well as the provision of auditors being required to report suspected frauds at the companies audited by them.
Citing the provision on the public scrutiny of board resolutions, Jaitley said that nowhere in the world was such a practice being followed.
"A company deciding in its board on its next model, a new product trademark or the funding mechanism would not like such matters to be known to competitors," Jaitley said.
Towards meeting a "corporate demand", the relevant amendment now prohibits public inspection of board resolutions filed in the registry.
Under the new norms, the paid-up capital criteria has been scrapped while threshold limits for various transactions for getting shareholders' nod has now been stipulated.
Another amendment approves prescribing specific punishment for deposits accepted, a condition that was left out in the act inadvertently.
"While enforcing the provision, we found that there were certain difficulties with regard to the enforcement of certain provisions or certain errors, while drafting had taken place," Jaitley said earlier, regarding the scope of the present amendments.
Stakeholders were also concerned that stringent regulations for related party transactions, or those transactions between the company and another in which a board member or members are interested, could hurt routine business activity.
The amendment also proposes to exempt corporates from the need to get shareholders' nod in the case of related party transactions valued lower than Rs.100 crore or 10 percent of net worth.
Under the old system, shareholders' permission through a special resolution was required in case of related party transactions for all firms with a paid up capital of Rs.10 crore or more.
Another amendment exempts related party transactions between holding companies and wholly owned subsidiaries from the requirement of approval of non-related shareholders.
Intervening in the debate, leader of the Congress party in the Lok Sabha, Mallikarjun Kharge, said the bill should be referred to the Standing Committee for re-examination in line with the practice in the past.

TAGS: Lok Sabha passes the Companies (Amendment) Bill, 2014,  Companies (Amendment) Bill, 2014


Fresh Common Proficiency Test (CPT) for candidates of Mathura Examination centre of CPT held on 14th December 2014​. - (16-12-2014)

Important Announcement

No.13-CA(Exams)/CPT/December, 2014 December 16, 2014
Holding of Fresh Common Proficiency Test (CPT) for candidates of Mathura examination centre of CPT held on 14th December 2014

It is hereby informed that the CPT held earlier on 14th December 2014 at Kanha Makhan Public School, Mathura (U.P), stands cancelled, due to unavoidable circumstances.

A Fresh CPT will be held on Sunday, the 21st December 2014 at the same venue from 10.30 a.m. to 12.30 P.M. and 2.00 P.M. to 4.00 P.M., only for those candidates who were admitted to the CPT held on 14th December 2014, at Mathura examination centre. Candidates with the following Roll numbers, who were admitted to the CPT held on 14th December 2014 for appearing at the above mentioned centre at Mathura (U.P), are required to appear once again, in the Fresh CPT examination at Kanha Makhan Public School, Mathura
(U.P), to be held on Sunday, the 21st December 2014.

From To Number of candidates Medium
196049 196434 386 English
324442 324454 13 Hindi

Admit cards already issued for the CPT of 14th December 2014 shall remain valid for appearing in the fresh CPT to be held on 21st December 2014. There is no change in venue or timings for the Fresh CPT. No fresh admit cards will be issued. Candidates can print the admit cards from the website as per the existing procedure.

Please note that this Fresh CPT on 21st December 2014 is meant for candidates with the above mentioned roll numbers only.

Examination Department


Contrary to popular belief, the drop in crude oil prices can adversely impact global stock markets, including India. "Crude has created a lot of uncertainties in global markets which are adversely impacting the Indian market sentiment. The recent foreign fund sell-off in equities and decline in rupee's value can be attributed to this constant fall in crude prices," said Tirthankar Patnaik, India strategist and head of research of Mizuho Bank. “Hence, free-falling crude poses serious challenges for markets.

Falling crude price means lower incomes for oil-exporting countries. This will slow down global demand, which will have an impact on Indian exports. “Foreign institutional investors have sold equities worth about Rs 1,850 crore in the past four trading sessions in India . The rupee hit a 10-month low of 62.50 against the dollar on Friday, on concerns over slower foreign fund flows” as per a report published in Economic Times on 15th December 2014.

 The plunge from a peak of just over $100 per barrel in the early summer to today’s $58 — a massive 42 percent drop in just a few short months, most of which has come in the last 90 days — could make anyone’s head spin.

Global crude OIL PRICES are on free fall during the last three months. This has resulted in the reduction of petrol and diesel prices in the local market. The price of petrol has come down from Rs.82 to Rs.70 and diesel prices have come down to Rs 55 As per our experience, once the price of any product goes up, it will never come down. Obviously, all of us are curious to know the reasons for the fall in prices, isn’t it? Here are the probable reasons.

Reason 1: Shale Oil production in USA
US is the biggest consumer of oil in the world. They consume 2 times the consumption of China or 6 times the consumption of India. US is also the largest importer of oil in the world. Today, they are trying to find oil in their own country and reduce the imports. (Imagine, if US stops importing oil from the Middle East!)
US is producing oil called Shale Oil. Shale Oil is unconventional oil produced from Oil Shale rock fragments by pyrolysis, hydrogenation or thermal dissolution.

Reason 2: No cut in production and supply of oil
Whenever the prices of oil were falling in the past, the oil producing countries OPEC (Organization of Petrol Exporting Countries) used to cut the production and supply of oil. Thereby, with lower supply, the prices used to stabilize/increase. But this time, they had a meeting at Vienna on 27th November and decided (or were undecided) about the no cut in production.

Reason 3: Lower demand in emerging markets
Why the prices of oil go up? It’s simple. The supply of oil is not sufficient to meet the demand. The demand for oil in markets such as China, Brazil, Japan and Europe is weakening. This has led to excess supply of oil than the demand. Whenever the supply is more than the demand, the price of such product falls. 

Reason 4: Production has resumed in Libya 
One of the oil producing countries Libya underwent a civil war in the recent past. However, the situation started improving in the last couple of months and thus they have resumed supply of crude oil to the market. Similarly, despite the war like situation in Iraq, the oil production has not reduced.

The following stocks get impacted because of the slump in crude oil prices:
1) Oil marketing companies - BPCL, HPCL, and IOC - will face pressure in the near term because of inventory losses, but in the long run lower oil prices will reduce subsidy concerns and benefit these stocks.

2) Auto companies (Maruti Suzuki, Hero MotoCorp, etc.) will benefit as the ownership cost of vehicles will come down because of falling oil prices. According to Nomura, a further Rs 4 per litre fall in petrol prices will lead to annual savings (assuming running of 30 km/day and mileage of 12 km/litre) of around Rs 4,000 for car owners.

3) Tyre companies (Apollo Tyres, MRF, Ceat and JK Tyres) will benefit from higher margins as 30-40 per cent of their raw material costs are linked to crude oil prices.

4) Industrials: Demand for diesel gensets could rise in near term, helping Cummins. Lower diesel prices will benefit Concor as it may lead to a cutback in railway freight rates.

5) Consumer: The biggest gainer will be Asian Paints as a huge chunk of raw materials are linked to crude derivatives, Nomura says. Godrej Consumers, HUL and Emami will benefit from lower prices of packaging materials, which are direct derivatives of crude, the brokerage added.

6) Power utilities such as Tata Power, Adani Enterprise and JSW Steel will benefit if benchmark thermal coal prices fall because of a drop in diesel prices. Reduction in price of diesel is also a positive for mining companies (Coal India). Nomura says fall in fuel oil will benefit private independent power producers where tariffs are not a pass-through (e.g. Adani Enterprises, Reliance Power).

7) Fall in LNG prices will benefit gas-powered power plant operators such as GVK Power, Lanco Infra, GMR Infra, Tata Power, Reliance Power and NTPC.

8) Airline stocks will also benefit as carriers spend nearly 40 per cent of their operating costs for aviation turbine fuel (ATF).

9) Among midcaps, JBF Industries, Bata India, Supreme Industries, V-Guard Industries, Havells India, Nilkamal Industries, Relaxo Footwear, Whirlpool of India will likely be big beneficiaries of the fall in crude prices, says domestic brokerage Nirmal Bang.

10) Finally, upstream companies like Cairn India, which is a pure crude oil play, will be badly hit because of the slump in oil prices. ONGC, Oil India and Reliance Industries will be also negatively impacted too. Nomura says falling crude prices may lead to investment curbs in the Middle East and impact companies such as L&T and Voltas, which have considerable exposure in the region.

Exporters feel that the crude prices may come down to $ 50 per barrel. At least, the prices will be lower for the next 6 months. To put it simply, the petrol price per litre may come down to Rs.55 and the diesel to Rs.40! Inflation may come down to around 4% and the bank lending rates to around 10%, home loan rates to around 8.5%.

This Article has been shared by Rohit Kapoor.

GST Bill gets Cabinet nod; likely in Parliament this session

The Union Cabinet on Wednesday approved Constitutional Amendment Bill for Goods & Services Tax (GST), paving the way for introduction of the Bill in the ongoing session of Parliament.
The Government intends to introduce GST from April 1, 2016, which will set the ball rolling for the legislative exercise for introduction of new indirect tax reforms.
The Bill needs to be approved by a two-third majority of the house. After this, it needs to be endorsed by at least half of the State Assemblies (15). Then the Centre will introduce separate legislation for GST. States, too, will be required to bring in legislations.
The Constitution does not provide for any concurrent taxation powers to the Centre as well as the States. This required the Constitution to be amended for conferring simultaneous power on Parliament as well as the State Legislatures, including every Union Territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both.
The new regime would replace a number of indirect taxes currently being levied by the Central and State Governments and is intended to remove cascading of taxes and provide a common national market for goods and services.
The proposed Central and State GST will be levied on all transactions involving supply of goods and services except those that are exempt or kept out of the purview of the goods and services tax.
Once the new tax system comes into place, there will be three indirect taxes apart from the customs duty (only on imported goods).
There will be a Central GST, which will subsume Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (commonly known as Countervailing Duty or CVD), Special Additional Duty of Customs (SAD) and Central Surcharges and cesses.
Then there will be State GST. This will subsume State VAT/Sales Tax, entertainment tax (unless it is levied by the local bodies), Luxury Tax, Taxes on lottery, betting and gambling, tax on advertisements, State Cesses and Surcharges. The third one will be Integrated GST (IGST) on inter-State transactions of goods and services. There is an agreement on subsuming entry tax in GST. At the same time, petroleum products will be part of GST with ‘nil’ rate.
However, after initial three years, a call will be taken to continue or exclude it.
While alcohol will be out of GST, tobacco will be within its purview
The new Bill will also have provision of compensation for initial years on account of revenue loss due to introduction of GST.
There is also agreement on subsuming entry tax into GST. Finance Minister Arun Jaitley has already promised to pay ₹11,000 crore as compensation due to phasing out of Central Sales Tax

Access your income tax account through Bank Account

If you have forgotten your e-Filing login password and you are unsuccessfull with the other options of resetting password, then you can use the new facility to get direct access to your Income Tax Department e-Filing account using the net-banking facility of your bank.

At this time the facility of direct e-Filing Login through Net banking is available through the following banks:

The detailed steps are as follows -
  • Taxpayer should be a registered user of Income tax e-Filing Portal.
  • Taxpayer should have already submitted the PAN details to the Bank. PAN is required to identify the taxpayer’s e-Filing account with the Income Tax Department.

  • Taxpayer have to first go to the Internet/ Net / Online Banking Website of the Bank which has already registered for this facility with the Department.
  • Taxpayer after logging into his Net Banking account should select “Income Tax e-Filing Login” tab/menu item
  • Taxpayer should Select the account number and enter the PAN for verification and click Submit
  • Taxpayer should Accept the Rules and Regulations details
  • Taxpayer should confirm that he may be redirected to his Income Tax Department e-Filing account – home page.
  • Taxpayer can now reset the password and also avail of all services provided by the e-Filing Website of Income Tax Department, including, filing Income Tax Return.

Advantages of using this new facility

  • Taxpayer gets direct access to his e-Filing account even if he has forgotten his password.
  • Taxpayer gets a secure and safe way to login into his e-Filing account.
  • Taxpayer can safeguard his e-Filing account by selecting/opting for “Password Resetting” only by using Digital Signature Certificate or through this new facility of direct login from his net-banking account, thereby preventing others from unauthorized access to his account. (coming soon….)
  • Other benefits (coming soon…..)

Detailed steps using example of Corporation Bank Net banking Go to Login in to your Corporation Bank Net banking account using your Bank provided User ID and password Corporation Bank Net banking Homepage < Select Utility Payments < Select “Income Tax e-Filing Login” 

Source: Income tax

Supreme Court: Mobile/cell charger is not a part of cell phone

Hon’ble Supreme Court has delivered a landmark verdict in the matter of STATE OF PUNJAB & ORS. v. NOKIA INDIA PVT. LTD. & pronounced that the mobile/cell phone charger is an accessory to cell phone and is not a part of the cell phone.

Brief facts of the case:
The matter pertains to the Punjab VAT Act, 2005 wherein the cellular telephones at allowed to be taxed at a concessional rate. M/s Nokia India Pvt. Ltd. deals in selling of mobile phones and mobile chargers. It paid concessional tax on chargers as well. The Assessing Authority held that the mobile chargers  are the accessories, hence full rate of tax was supposed to be levied thereupon. The matter went to appeal. The Deputy Commissioner(Appeals) as well as Tribunal upheld the stand taken by the assessing authority.
However, the P&H High Court took the contradictory view stating that battery charger is a part of the composite package of cell phone.

Aggrieved by the order of High Court, govt. filed an appeal before the Apex Court.

M/s Nokia contended that charger is an integral part of the cell phone and the cell phone cannot be operated without the charger and when any person comes for cell phone, he purchases the cell phone and then automatically takes away the charger for which no separate money is charged.

The court held that battery charger cannot be held to be a composite part of the cell phone but is an independent product which can be sold separately, without selling the cell phone.

The said verdict may be accessed from the link hereinbelow:


It will be a setback for the industry(especially operating in Punjab VAT). It would be interesting to note whether the said interpretation shall be referred to the Constitutional Bench at a later stage or not.

This case law has been submitted by CA Sumit Grover. He can be reached at

NRHM MP - Vacancy for CA/ICWA Inter

Company Name : National Rural Health Mission, Madhya Pradesh (NRHM MP)
Job Location : Madhya Pradesh
Positions : 51
Job Profile :
1. District Accounts Assistant : 51 Posts
How To Apply : Interested Candidates seeking jobs in Madhya Pradesh for the above mention posts may apply online through website
Important Date :
Last Date to receive application form: 20/01/2015

For Official Notification Click Here.

RBI advances timing for RTGS business hours

“It has hence been decided to advance RTGS business hours to from and extend closing time of RTGS to on week days.RTGS business window will be open from hours to on Saturdays,” RBI said in a notification.

The new working hours will be with effect from December 29, 2014.

Extension of RTGS time window

DPSS (CO) RTGS No. 1064 / 04.04.002 / 2014-15
December 15, 2014
The Chairman / Managing Director / Chief
Executive Officer of participants of RTGS
Madam / Sir,
Extension of RTGS time window

1. It has been the endeavour of the Reserve Bank of India to keep enhancing the systems, procedures, etc. to meet the growing needs of the markets/ customers. The launch of the new RTGS system in October 2013 was one of the steps taken by the Bank for catering to the growing volume and to provide liquidity saving and other features of the new system to the members.

2. Of late there has been a market demand for extending business hours of the RTGS system to facilitate customer and inter-bank transactions as also to facilitate other market obligations to settle in the RTGS system. Accordingly, the RTGS business hours are being revised to meet the market expectation.

3. It has hence been decided to advance RTGS business hours to 8:00 hours from 9.00 hours and extend closing time of RTGS to 20.00 hours on week days. RTGS business window will be open from 8.00 hours to 15.30 hours on Saturdays.

4. In view of the above, the RTGS time window will be modified as under with effect from December 29, 2014:

S. No.
Daily Events
Timing on Weekdays / Regular Days
Timing on Saturdays / Short Days
Open for Business08:00 hours08:00 hours
Initial Cut-off16:30 hours14:00 hours
Final Cut-off19:45 hours15:00 hours
IDL Reversal19:45 hours – 20:00 hours-
End of Day20:00 hours15:30 hours

5. This circular is issued under Section 10 (2) of Payment & Settlement Systems Act, 2007.

6. Please acknowledge receipt.

Yours faithfully,
Vijay Chugh
Principal Chief General Manager

TAGS: RBI advances timing for RTGS business hours, rbi, RBI RTGS timing, RBI RTGS Timing Changes,

To Download official Notification Click Here


As per Section 149 sub section 3 of Companies Act 2013, Board of Directors of a company, must have at least one resident director i.e. (A person who has lived at least 182 days in India in the previous calendar year)
As per General Circular No. 25/2014 The residence requirement would be reckoned from the date of commencement of section 149 of the Act i.e. 1st April, 2014, The first previous calendar year, for compliance with these provisions would, therefore, be Calendar year 2014. The period to be taken into account for compliance with these provisions will be the remaining period of calendar year 2014 i.e. 1st April to 31st December).
Ø  Therefore, on a proportionate basis, the number of days for which the director(s) would need to be resident in India. During Calendar year.2014, shall exceed 136 days.
Ø  Regarding Newly Incorporated Companies it is clarified that companies incorporated between 01.04.2014 to 30.09.2014 should have a resident director either at the time of incorporation OR within six months of their incorporation.
Ø  Companies incorporated after 30.9.2014 need to have the resident director from the date of incorporation itself.

v  Women Director:
As per Section 149 (1) (a) second proviso requires certain categories of companies to have At Least One Woman director on the board. Such companies are any listed company, and any public company having-

1.  Paid Up Capital of Rs. 100 cr. or more, or
2.  Turnover of Rs. 300 cr. or more.
v  Independent Director:
Independent Director is for the first time introduced in the Companies Act, 2013 under section 149(6)
(I have written article on ID Series- 6 if you want
Mail me at . . . . . . .)

v   Additional Directors
Any Individual can be appointed as Additional Directors by a company under section 161 of the New Act.
(Complete Process Of Appointment Of Additional Director Along With Draft Will Be Given In ARTICLE SERIES NO- 32.)
v   Nominee Director:
As per Section 161(3). Subject to AOA of company, the Board May appoint any person as a director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the Central Government or the State Government by virtue of its shareholding in a Government company.( According to term: Subject to AOA of company mean there should be provisions in Articles of Association of Company for appointment of Nominee Director, if there is no provision in Articles of company then alter the provision in AOA).

v    Alternate Directors:
As per Section 161(2) A company May appoint, if the articles confer such power on company or a resolution is passed (if an Director is absent from India for at least three months). 
ü  An alternate Director cannot hold the office longer than the term of the Director in whose place he has been appointed.
ü  Additionally, he will have to vacate the office, if and when the original Director returns to India.

ü  Any alteration in the term of office made during the absence of the original Director will apply to the original Director and not to the Alternate Director.

Advance Tax Deposit Last Date for Third Installment

If the Income Tax Liability of any taxpayer is more than Rs. 10,000 in a financial year, then he is liable to pay such tax in installments during the year itself rather than paying this tax at the end of the year. This tax which is payable during the year is called “Advance Tax” or “pay as you earn tax” as tax is liable to be paid at the time the income is earned i.e. during the year rather than paying this tax at the end of the year.

For Individuals earning only Salary Income as the sole source of income, Advance Tax is not applicable as it would be taken care of by the TDS deducted by the employer at the time of payment of salaries as reflected in Form 16. 
For all taxpayers earning income from any source other than salary, Advance Tax is payable in installments as explained below.
The due dates and the percentage of installments of Advance Tax for assessees other than Companies are as below

Due Date of instalments
Amount payable
1st on or before 15th September.
Amount not less than 30% of such advance tax.
2nd on or before 15th December.
Amount not less than 60% of such advance tax after deducting amount paid in earlier installment.
3rd on or before 15th March.
Entire balance amount of such advance tax.

In case of companies, there are 4 instalments of advance tax payable on or before 15th June (15%); 15th Sept. (45%); 15th Dec. (75%); & balance amount of Advance Tax payable by 15th March. Also, any amount paid by way of Advance Tax on or before the 31st March of that year, is treated as Advance Tax Paid during that Financial Year. The percentages of 45% and 75% specified with reference to dates of 15th Sept. and 15th Dec. include the amount of advance tax paid earlier during the year.

Interest on Late Payment of Advance Tax:
If the Income Tax is not payable as per the above schedule, Interest is liable to be paid for late payment of tax as follows
1.     Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i.e. for Deferment in Installments of Advance Tax
2.     Interest under section 234B – Interest @ 1% is payable if 90% of the tax is not paid before the end of the financial year i.e. for Default in Payment of Advance Tax

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Analysis of section 234

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