Reference: Central Board of Indirect Taxes and Customs
Update:
GST not applicable on reimbursement of expenses incurred by employees on behalf of Company
Alcon Consulting Engineers (India) (P.) Ltd., In re
[2019] 110 taxmann.com 357 (AAR – KARNATAKA)
The applicant is providing consultancy services for construction projects. While providing such services some of the expenses are incurred by their employees on behalf of the applicant. It has sought an advance ruling to determine whether the expenses incurred by staff on behalf of applicant and then reimbursed periodically are liable to GST?
The AAR Karnataka observed that services by an employee to the employer in the course of or in relation to his employment shall be treated neither as supply of goods nor as supply of services as per the provisions of the GST Act. Therefore, the services by the applicant’s employees to it are not to be treated as a ‘supplies’.
The amount paid by the employee to the supplier of service is a ‘consideration’ as if it is paid by the applicant itself for services received by it. This amount reimbursed by the applicant to the employee later on would not amount to consideration for the supplies received by it because the service of employee to its employer in the course of employment is not a supply of goods or services and, hence, the same is not liable to GST.
Thus the amounts paid to employees by the applicant as reimbursement of expenses incurred by them in the course of employment are not liable to GST.
Reference: Ministry of Corporate Affairs
Update:
MCA allows filing of DIR-12 by ‘ACTIVE non-compliant’ company in Some Cases:
The MCA has notified the Companies (Incorporation) Eighth Amendment Rules, 2019 wherein Rule 25 A has been amended. In relief to companies that have been rendered inactive after they failed to comply with Know your customer rules, the govt has given them an option to change their status and become active.
The change will allow a non-compliant company to file a form in case of appointment of new directors, or disqualification or deactivation of the director identification number of directors.
Implication:
Now, the ACTIVE non-compliant’ company can file e-form DIR-12 in case of appointment as well.
Update:
Companies (cost records and audit) Amendment Rules, 2019
Ministry of Corporate Affairs has amended Companies (cost records and audit) Rules, 2014 to make amendmeny in the Form CRA-1.
The companies who have already filed their Cost Audit Report in form CRA-4 for the financial year 2018-19 with the Central Government before the publication of this notification are not required to file their Cost Audit Report for the said financial year.
Implication:
This shall be deemed to come into force on the 1st day of April, 2018
Update:
Companies (Appointment & Qualification of director) Fifth Amendment Rule, 2019
Ministry of corporate Affairs has made Companies (Appointment & Qualification of director) Fifth Amendment Rule, 2019
The Rule has specified following Compliances required by a person eligible and willing to be appointed as an independent director:
Every individual
-who has been appointed as an independent director in a company, on the date of commencement this rule, shall within a period of three months from such commencement; or
-who intends to get appointed as an independent director in a company after such commencement, shall before such appointment,
apply online to the Indian institute of Corporate affairs for inclusion of his name in the data bank for a period of one year or five years or for his life-time, and from time to time.
Any individual, including an individual not having DIN, may voluntarily apply to the institute for inclusion of his name in the data bank.
Every individual whose name has been so included in the data bank shall file an application for renewal within a period of thirty days from the date of expiry of the period upto which the name of the individual was applied for inclusion in the data bank.
No application for renewal shall be filed by an individual who has paid life-time fees for inclusion of his name in the data bank.
Every independent director shall submit a declaration of compliance.
Every individual whose name is so included in the data bank under sub-rule (1) shall pass an online proficiency self-assessment test conducted by the institute within a period of one year from the date of inclusion of his name in the data bank.
Update:
Companies (Creation and Maintenance of data bank of Independent Directors) Rules, 2019:
Ministry of Corporate Affairs has made Companies (Creation and Maintenance of data bank of Independent Directors) Rules, 2019.
Rule state that the Indian institute of Corporate affairs (institute) shall create and maintain a data bank of persons willing and eligible to be appointed as independent directors, and such data bank shall be an online data bank which shall be placed on the website of the institute.
The data bank shall contain the following details such as DIN, PAN number, Full Name, any pending criminal proceeding as specified in Section 164(1)(d), the list of LLP in which he is or was designated partner, list of the companies in which he is or was director along with specified details, etcs.
Information available in the data bank shall be provided only to companies required to appoint independent director after paying a reasonable fees.
A person whose name is included in the data bank may restrict his personal information to be disclosed . The rule also specified duties of the institute.
The rule also state constitution of Panel of not more than ten members nominated by the Central Government, for the purpose of approving the outline of the courses and study material prepared by the institute. READ MORE
Update:
Companies (Accounts) Amendment Rules 2019:
MCA has amended Companies (Accounts) Rules, 2014 and inserted following matter to be included in Board\’s Report:
a statement regarding opinion of the board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year
Implication:
This shall be effective from 1st December, 2019
Reference: Reserve Bank of India
Update:
Extension of RBI\’s Direction Period: Bhagyodaya Friends Urban Co-operative Bank Ltd.
Reserve Bank of India had issued directions to Bhagyodaya Friends Urban Co-operative Bank Ltd. Maharashtra from the close of business on January 17, 2019. RBI has now further extended the directions for a period of six months from October 18, 2019 to April 17, 2020, subject to review.
Implication:
The issue of Directions should not per se be construed as cancellation of banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves.
Reference: Securities and Exchange board of India
Update:
Sebi issues framework for listing of commercial paper:
SEBI has issued a framework for listing commercial paper. Issuers who intent to list their commercial paper shall comply with the following framework:
An issuer who desires to list its CP needs to send an application for listing along with the specified disclosures to the stock exchanges.
The disclosures pertain to details of the issuers, information related to change in directors as well as auditors in past three financial years, including any change in the current year, details of top-10 holders of equity shares, debt securities and CP of the company, any material information and details of borrowings of the company, as on the latest quarter end.
On approval of the listing application by the concerned stock exchange(s), the disclosures so provided along with the application for listing, shall be made available on the website of the concerned stock exchange(s) After the listing, the issuer will have to make disclosures about financial results and material information during the tenure of the CP to the concerned stock exchange, which in turn need to be disseminated the same on its website.
Implication:
Issuers must make appropriate disclosures at the time of listing and on a continuous basis
