Wednesday, 27 May 2015

Some simplification in Companies Act. Notified on 25th May, 2015

Companies(Amendment) Act, 2015 is Today notified by MCA.

Below are the vHIGHLIGHTS of the same.

1. Requirement of min. paid up capital to be do ne away with.

2. Having a Common Seal is not mandatory.

3. Section 11 pertaining to Commencement of Business Certificate to be ommited.

4. Penalty for violation of provision regarding acceptance/invitation of deposits stipulated by inserting section 76A. Min penalty 1 cr Max. 10 cr.

5. Dividend not to be given unless prev.yr losses/dep. not provided in prev. yr are set off from current year profits.

6. Auditor to report fraud/ offence involving prescribed amt. to CG. if the amt. is below it reporting to be done to audit committee/ Board and disclosure in board report.

8. Concept of omnibus approval for RPT by audit committee inserted in section 177.

9. Exemption given under rules of section 185 regarding giving loans to WOS and subsi to be incorporated in section itself.

10. Only ordinary resolution will be reqd for related party transaction.

11. No shareholder approval reqd. in case of RPT b/w holding and WOS if a/c of subsidiary consolidated.

CA Anand Mutha

Thursday, 21 May 2015

Maharashtra government Boosts Small Industries- cleares most awaited labour reforms

The Maharashtra government has  decided to amend the Factories Act, 1948, in a bid to encourage growth of small-scale industries (SSI). Nearly 14,300 small-scale units will be freed from the inspector raj and about 190,000 new jobs will be created in the state.

At present, smaller industries may be excluded from the provisions of the Factories Act, 1948, which mandates safety guidelines and working conditions, applies to units with more than 10 workers in premises with power supply and 20 workers in premises without power. However, with the proposed amendment the limit has been increased from 20 and 40 workers.

Further, the condition with regard to prior approval of the management for overtime has been done away with. The government has proposed overtime of 115 hours from the present level of 75 hours to workers in SSI units. 

Moreover, women employees in these industrial units will now be allowed to work during 7 pm and 6 am which was not allowed under section 66 (1) of the Factories Act.

Change in rate of service tax and its impact

Service tax rate is increase to 14 % w.e.f. 1st June 2015. In this regard the provider of service must keep in mind the point of taxation rules in order to calculate the correct rate of tax. For the purpose of simplicity one can go through below mentioned point To understand the impact of change in rate of service tax.

1. Service Provision is complete till 31.05.2015 and Invoice raised till 31.05.2015 but Payment received on or after 01.06.2015- 12.36% applicable.

2. Service complete till 31.05.2015, Invoice raised on or after 01.06.2015 but Payment is received till 31.05.2015 - 12.36%

3. Service Provision complete till 31.05.2015 and Invoice raised on or after 01.06.2015 and Payment also received after 01.06.2015- 14%

4. Invoice raised till 31.05.2015 in advance and some part of total consideration has been paid till 31.05.2015 but Service Provision is being done on or after 01.06.2015 -12.36% for such part payment, 14% for balance to be recd.

5. Entire consideration received till 31.05.2015 but no invoice raised till 31.05.2015 and no service provided -14%

6. Even if entire service has been provided on or after 01.06.2015 but both payment as well as invoicing has been done till 31.05.2015 then -12.36%

Regards
CA Anand Mutha

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