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OctOber 20131
7, Jolly bhavan #2, New Marine Lines, Mumbai - 400020. tel : + 91 22 613 77 600 ; F : + 91 22 613 77 666 ; email: [email protected] ; Website : www.bcasonline.org ; WebtV : www.bcasonline.tv
Vice-President’s Communiqué
Dear Members,
The e-filing utility for tax audit reports underwent about twelve revisions in less than three months of its introduction. This, coupled with a non-responsive website, specifically during the penultimate hours, caused immense hardships to fellow professionals and their clients and created a chaotic situation in the last month.
The half-hearted concession granted by the CBDT extending the time to file the tax audit report up to 31.10.2013 provided the tax return is uploaded and the tax audit report is manually filed by 30.09.2013 does not resolve the genuine hardships suffered by the taxpayers. It shows that the authorities remain oblivious of the hardships caused and the CBDT’s Citizens’ Charter remains simply on paper.
The arbitrariness on the part of the income-tax authorities was also highlighted in the 87th report of the Public Accounts Committee (15th Lok Sabha) presented by the Ministry of Finance, Government of India in Parliament on 29.08.2013, wherein it is stated that:
“…the Committee desires the Ministry to take remedial steps to discourage the assessing officers for making an adventurous assessment orders which result into arbitrary additions leading to appeals. The problem of huge pendency cannot be effectively tackled unless generation of too many appeals is resolved. The Assessing Officers responsible should be held accountable for wastage of time and resources of the Department by making frivolous assessments which ultimately resulted into piling of appeals at various levels.”
Vol. 16 n No. 7 n October 2013
Harnessing Talent and Providing Quality Service A Monthly Newsletter of the Bombay Chartered Accountants’ Society
BCASNewsletterFor Members only. For Private Circulation only. Price: R10
PROGRAMMES AT A GLANCE DATE VENUE PAGE NO.
Music Clinic ............................................................................................18-10-2013 ........................................ Kamalnayan Bajaj Hall, Nariman Point, Mumbai .............................. 6
Forthcoming Students Study Circle ..........................................01-11-2013 ......................................... BCAS Office ........................................................................................................... 3
Certificate Course for Professional Accountant .................19-11-2013 ......................................... BCAS & HR College, Churchgate, Mumbai .......................................... 5
Half-day Seminar on Labour Laws ............................................23-11-2013 ......................................... Gulmohar Hall, BCAS, Churchgate, Mumbai ....................................... 3
47th Residential Refresher Course 2014 ...............................09-01-2014 to 12-01-2014 ........ Hotel Dreamland, Mahabaleshwar .......................................................... 3
Seminar on Presumptive Taxation for non-residents .....18-01-2014 ....................................... Indian Merchants Chamber, Churchgate, Mumbai ......................... 4
Lecture Meeting ..................................................................................24-10-2013 ............................................................................................................................................................................. 1
(Continued on page 2)
President: Naushad A. Panjwani 98200 59048 | [email protected]
Vice-President: Nitin P. Shingala 98200 57694 | [email protected]
Hon. Jt. Secretary: Raman H. Jokhakar 98208 77976 | [email protected]
Hon. Jt. Secretary: Mukesh G. Trivedi 9820182456 | [email protected]
Hon. Treasurer: Chetan M. Shah 98202 23402 | [email protected]
A similar reference has been made in the report submitted on 02.09.2013 by the Committee for Reforming the Regulatory Environment for Doing Business in India set up under the Chairmanship of Shri M. Damodaran by the Ministry of Corporate Affairs which contains the following remark:
“Despite protestations of an improvement in mindset, the needless adversary relationship between assessing authorities and the taxpayers continues to be a fact of life. This is further compounded by a perverse incentivisation system in which gross tax collections are treated as a major indicator of good performance.”
The above discussions in the public forums show that the concerns of trade/industry and professionals are finding wider echo. Let us work together to ensure our public representatives and the authorities resolve these concerns in earnest and the Citizens’ Charter is implemented in its true spirit.
LECTURE MEETiNG
*Fellowship over a cup of tea at 5.45 p.m.
Venue: Navinbhai Thakkar Auditorium, Shraddanand Road, Near Shiv Sagar Restaurant, Vile Parle (East), Mumbai- 400057Day, Date & Time: Thursday, 24th October 2013, 6.15 p.m.*Speaker : Himanshu V. KishnadwalaSubject: Important Provisions under the Companies Act, 2013
BCAS 2
(Continued from page 1)
The Ministry of Corporate Affairs issued a notification on 12.09.2013 to implement 98 sections of the Companies Act, 2013. While the Act was notified on 30.08.2013, only Section 1 was brought into force on that day. The Ministry placed draft Rules pertaining to 24 chapters on its website in two phases on 09.09.2013 and 20.09.2013 respectively. The Ministry has solicited public comments for the first phase of rules by 08.10.2013 (extended to 10.10.2013) and for the second phase by 19.10.2013. As the new law provides for vast areas where legislative powers are delegated, effective representation is important to ensure public concerns are well addressed before these rules are notified.
The Accounting & Auditing Committee of the BCAS is taking the lead in making the representations. I request you all to contribute wholeheartedly and support the Committee in this process. Given that the timeline is too cramped, I hope the Ministry does not rush through with these rules and ensures wider public concerns are received and addressed.
We are living in the age of innovation. Successful teams and companies are ones which can encourage and nurture creativity for innovation and implement ideas effectively. Innovation can and should come from all functional departments in any organisation including finance and accounting.
ALL THE THREE CLiNiCS wiLL bE HELD iN THE LibRARy ROOM Of THE bCAS OffiCE.
Right to infoRmation CliniC
ChaRitable tRust CliniC
aCCounts & audit CliniC
Advisory Panel : Narayan K. Varma, Adv A K Asher, Hema D. SampatClinic Co-ordinator: Vrushali - 6137 7624
Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak, Anil J. Sathe, Atul H. ShahClinic Co-ordinator: Vrushali - 6137 7624
Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. Gandhi Clinic Co-ordinator : Vrushali - 6137 7624
BCAS Foundation operates a Right to Information (RTI) Clinic on a regular basis. The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI. The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from 11 a.m. to 1 p.m. The next RTI Clinic days accordingly are 19th & 26th October, 9th, 16th & 23rd November 2013 . Please call to obtain a prior appointment.
The next Charitable Trust Clinic will be held on 1st November 2013 from 5 p.m. to 7 p.m.
Chartered Accountants and Trustees interested in having their queries solved are requested to send their queries by email to [email protected] and call to obtain a prior appointment, latest by noon on the day of the clinic. Querists are also advised to bring along relevant papers like trust deeds, audited accounts, etc.
The next Accounts & Audit Clinic will be held on 2nd November 2013 from 10.30 a.m. to 11.30 a.m.
Persons interested in having their queries pertaining to accounting and auditing issues solved are requested to send the queries by e-mail to [email protected] one week in advance and call to obtain prior appointment, at least a day before the day of the clinic. Please note that the panel will not answer any queries pertaining to tax issues.
In order to introduce the concept of innovation, the 4i Committee recently organised a pioneering programme on “Introduction to Orbit-Shifting Innovation Skills” for members of the core group. Conducted by an expert from a unique innovation consulting firm, it was a curtain-raiser and introduced the concept of innovation, how to go beyond boundaries and the process of breakthrough thinking. Enthralled participants have requested the 4i committee to organise an extensive workshop for benefit of all members.
The ensuing season of festivals is an opportunity to take a break from our otherwise very hectic multi-tasking routine of rushing from one deadline to another and instead spend quality time with our loved ones. Let us embrace these celebrations with open hearts and relearn how to enjoy life.
Wishing you all happy festivities for Navaratri, Dusserra, Eid and Deepavali!
With best wishes,
Nitin Shingala
OctOber 20133
IndIrect taxes and allIed laws commItteesemInar commItteeChairman : Govind G. Goyal Convenors : Mandar U. Telang, Suhas S. Paranjpe and Sunil b. Gabhawalla Co-ordinators : Ashok L. Sharma and Suhas S. Paranjpe
Chairman : Rajesh S. ShahConvenors : Narayan R. Pasari & Salil b. LodhaCo-ordinators : Narayan R. Pasari & Salil b. Lodha
Half-day Seminar onLabour LawsWith the increasing importance, compliance and with talk of reforms in Labour Laws, the members need to update their knowledge base on provisions of various labour laws with a view to help the members, the Indirect taxes and Allied Laws committee of the bombay chartered Accountants’ Society (bcAS) has arranged a Half Day Seminar on “Labour
Laws” jointly with chamber of tax consultants (ctc).
Day & Date Saturday, 23rd November, 2013.
Time 9.30 a.m. to 1.30 p.m.
Venue Gulmohar Hall, bcAS, Jolly bhavan no. 2, Ground Floor, New Marine Lines, Mumbai 400020
Fees for members R550 + R68 (St) = R618
Fees for non-members R750 + R93 (St) = R843
(Fee includes Tea/Coffee, snacks & material)
Topic Speaker
employees State Insurance Act, 1948
ramesh Soni, Labour Law consultant
the Payment of bonus Act, 1965
the employees Provident Fund & Miscellaneous Provisions, 1952
the Payment of Gratuity Act, 1972
the contract Labour and Abolition Act, 1970
47th Residential Refresher Coursethe Seminar committee is pleased to announce the 47th residential refresher course (rrc).
Participants will be accommodated in two Hotels i.e. Hotel Dreamland and Hotel Valley View on a twin sharing basis. transport facility by bus from Mumbai to Mahabaleshwar will be arranged by bcAS. Other details including topics and Paper Writers will be announced shortly. Meantime, we request you to block above dates for participating at 47th residential refresher course.
Day & Date thursday, 9th January 2014 to Sunday, 12th January 2014
Venue Hotel Dream Land, Mahabaleshwar
FortHcomInG students’ study cIrcle
Day, Date & Time Friday, 1st November 2013, 6:30p.m.- 8.00p.m.
Venue Gulmohar, bombay chartered Accountants’ Society,7, Jolly bhavan No. 2, Ground Floor, New Marine Lines, Mumbai 400020
Speaker Pavan Shukla
Topic registration and taxation of charitable organization
renewal oF membersHIp For 2013-14
to avoid cancellation of bcAS Membership
kindly renew your membership before
25th October 2013. If you wish to renew
your membership after 25th October, 2013 then you will have to pay the specified
entrance fees again.
you can make positive deposits in your own economy every day by reading and listening to powerful, positive,
life-changing content and by associating with encouraging and hope-building people.
Zig Ziglar
A free economy and strong communities honour the dignity of every person, rewarding effort with justice, promoting upward
mobility, and building solidarity among citizens.
Paul Ryan
Economy does not lie in sparing money, but in spending it wisely
Thomas Huxley
People are only mean when they're threatened, and that's what our culture does. That's what our economy does.
Mitch Albom
BCAS 4
InternatIonal taxatIon commItteeChairman : Kishor b. KariaCo-Chairman : Deepak R.ShahConvenors : Dhishat b. Mehta, Gaurang V. Gandhi and Suril V. ShahCo-ordinators : Anil D. Doshi & Naresh A. Ajwani
Seminar on Presumptive Taxation for Non-residentsDear Members,Presumptive taxation for Non-residents has been provided to simplify the tax issues. However is the presumptive taxation really simple! International Taxation Committee has organized a special Seminar on Presumptive Taxation for Non-residents. The objective is to update the members on some key provisions of presumptive tax provisions, understand controversies and to avoid pitfalls. The details of the programme are below:
Day & Date Saturday, 18th January 2014
Time 10.00 am to 5.00 pm (registration and Snacks start at 9.30am)
Venue Walchand Hirachand Hall, 4th Floor, IMc, churchgate, Mumbai 400020
Fees Early bird till 15th December 2013 Fee after 15th December 2013
Fees for members R1200 + R148 (St) = R1348 R1500 + R186 (St) = R1686
Fees for non-members R1500 + R186 (St) = R1686 R1900 + R235 (St) = R2135
(Fees include course material, breakfast, lunch and R50/- towards contribution to BCAS Foundation)
*Early Bird offer valid on receipts entered at BCAS office on or before 15th December 2013
Topic
Investment incomes (excluding capital Gain) including provisions for FIIs, GDrs, QFIs, NrIs
Services related to exploration of mineral oil
Shipping and related income
royalty and Fees for technical services
Enrolment is restricted to 90 participants. Limited seats are reserved for non-members on first-come-first-served basis.
BCA Referencer 2013-14
Name: Mr./Mrs./Ms : ...............................................................................................................................................................................................................................................................................
BCAS Membership No.: ………………………......................Firm’s Name : .......................................................................................................................................................................................
Office Address : .........................................................................................................................................................................................................................................................................................
...............................................................................................................................................................Tel. Nos :. ......... . ........................................Office : ....................................................................
Mobile : ………………………………… ................................................................................................... E-mail : ……………...................................................................................………………………. ..........
Cash/Draft/Cheque No :…………..… ................................Drawn on :………………………… ...................................................Bank Dated : ...............................................................................
Amount (Rs.) : .............................................................................................................................................................................................................................................................................................
Particulars Price (Rs.) Postage (Rs.) Quantity Amount (Rs.)
Referencer Premium Set (in exclusive folder) with CD, Table diary and Pocket diary 950 200
Referencer Premium Set (in exclusive folder) with CD and Pocket diary only 750 150
Referencer Refill Set with CD, Table Diary and Pocket Diary 650 150
Referencer Refill Set with CD, and Pocket Diary only 500 150
Super Saver Edition with CD (Bound Edition with Diary) 500 150
Order Form
OctOber 20135
COMPLETED GRADuATION WORKED AS AN ACCOuNTS ASSISTANT OR COMPLETED ARTICLE TRAINING
HERE IS A COuRSE JuST FOR YOu.
become a proFessIonal accountant
wHAT NEXT?
Course objective: To identify, train, improve job prospects and create a new brand of professionals who will be identified as Professional Accountants (PAs).
Eligibility: T.Y. B.Com or 3 years’ work experience or completed articleship.
Syllabus: Covering all essential subjects to make you an effective independent accountant. The course will cover not only basic subjects like accounts, tax etc, but also include costing, MIS, ERP financial packages, office systems, reports and communication skills and yes even how to draft an effective CV.
Course commences on : 19th November 2013
Course duration : A total of 20 sessions will be held of 3 hrs each. Sessions will be spread over on Tuesdays & Fridays evening & some Saturdays afternoon at BCAS & HR College.
Timing: On Tuesdays and Fridays 5.30p.m. to 8.30p.m. and on Saturdays 2.30p.m. to 5.30p.m.
fees: R 6, 741/- per participant (Inclusive of Service Tax @ 12.36%) Restricted to 45 participantsCertificates will be awarded to participants on fulfillment of criteria.
NAUSHAD A. PANJwANi, President BCAS, iNDU SHAHANi, Principal, H. R. College
ORGANISED JOINTLY BY
bombay Chartered Accountants’ Society7, Jolly Bhavan No. 2, Ground Floor, New Marine Lines, Mumbai - 400 020.Tel. 61377600 • Fax 61377666E-mail [email protected] • Website: www.bcasonline.org • Web TV : www.bcasonline.tv HR College of Commerce & Economics123, D.W. Road, Churchgate, Mumbai - 400 020.Tel: 91 22 2287 6115• Fax: 91 22 2281 0758Email: [email protected] • Website: www.hrcollege.edu
Note : • Submit enrollment form along with 1 photograph at BCAS office only. • Timing : 10 a.m. to 5.30 p.m. Monday to Friday and 10 a.m. to 1.30 p.m. Saturday.• Schedule and faculties could change based on course requirement.• Cheque should be drawn on Bombay Chartered Accountants’ Society. Outstation payment by Demand Draft / Cheques at par only, payable at Mumbai. Members can pay through the credit / debit card at the BCAS Office.• Enrollment on first come first served basis.• Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed, once the enrolment form is submitted.
Note : for Details please refer website of bCAS or contact office
FOR FuRTHER DETAILS CONTACT :
Co-ordinators Manish Reshamwala - 66355488, 9820050810Manori Shah - 23523849, 9820190092Prof. Parag Thakkar - 9820304543
batch XVi
Please collect your passes from Bombay Chartered Accountants' Society, 7, Jolly Bhavan #2, New Marine Lines, Mumbai - 400020. Tel : + 91 22 613 77 600
OctOber 20137
bcas publIcatIons/ study materIal For sale
Exploring fEMAPrice R 225Postage R 75
Study Material DVD on Seminar on NbfC Regulations (including Audit and Tax Aspects) held on 30th August 2012 Price R 1250Postage R 50
Real Estate LawsPrice R 180Postage R 100
Digest of full bench Decisions of Central information Commission (r2i)Member Price R 120 Non-Member Price R 150Postage R 50
CA firm of the futureMember Price R 200 Non-Member Price R 250Postage R 100
RECENT PUbLiCATiONS
OTHER PUbLiCATiONS
Gita for ProfessionalsPrice R 100Postage R 50
Advance Rulings Law and Procedures - A CompilationPrice R 125Postage R 50
Registration of firms with Registrar of firms – Procedure and frequently faced Problems*Price R 50Postage R25
Audit Checklist for Companies (CD free) (Edition 2013) Member Price R400 Non-Member Price R500Postage R200
Laws & business – A Compendium (4th Edition)(published under the auspices of Late Shailesh Kapadia Memorial Publication fund)Member Price R400 Non-Member Price R400PostageR200
Paper books of international Tax & finance Conference, 2013 held in Jaipur from 15th to 18th August 2013 Members & Non-Members – R 500 for set of 5 bookletsPostage– Members & Non-Members – R75
Right to Know –The Right to information Act, 2005 Set of 5 booklets for R25 for Members & Non MembersPostage R25 for set of 5 booklets
Study Material DVD on Real Estate Summit held on 1st & 2nd february 2013 (Approximately 16 hours of recording)Members – R 2500Non-Members – R 3000Postage - Members & Non-Members – R 50
Service Tax – Construction And Real Estate SectorMembers – R 120Non-Members – R 150Postage – Members & Non-Members – R 75
Study Material DVD on The mPower Summit held on 10th & 11th May 2013 (Set of 2 DVD’s)Members –R 1500 (for set of 2 DVD’s)Non-Members – R 2500 (for set of 2 DVD’s)Postage – Members & Non-Members – R 50
BCAS 8
Subscribe Now!!!
Payment can be made by cheque/DD payable at par in Mumbai in favour of ‘Bombay Chartered Accountants’ Society’. You can also pay by cash/credit card at the payment counter of BCAS Office. If you have an Imprest Account, then you can instruct us to adjust the subscription through the imprest Account. For further details log on to www.bcasonline.org
Particulars Subscription Charges + Service Tax
Total Charges
Ordinary, Life and Associates of Corporate Membership R600 + 12.36% R674
Students R600 + 12.36% R674
Journal subscribers R900 + 12.36% R1,011
Non-members R1,200 + 12.36% R1,348
Lecture Meeting on Important Provisions under the Companies Act, 2013 by P. R. Ramesh, held on 9th October 2013 is available on BCAS Web TV
Renewal of bCAS web TV for 2013-14
OctOber 20139
BCAS 10
From rBIContributed by : Gaurang V. Gandhi
The Reserve Bank of India has issued the following 9 circulars
A. P. (DIR Series) Circular No. 37 dated September 05, 2013Notification No. FEMA.267/2013-RB dated March 5, 2013 notified vide G.S.R. 573(E) dated August 27, 2013Issue of Bank Guarantee on behalf of person resident outside India for FDI transactions
Presently, non-resident acquirers, subject to certain conditions, can open escrow account and Special account with a bank in India for acquisition / transfer of shares / convertible debentures of an Indian company through open offers / delisting / exit offers.
this circular permits bank to issue bank guarantee, without prior approval of rbI, on behalf of a non-resident acquiring shares or convertible debentures of an Indian company through open offers / delisting / exit offers, if: -
a) the transaction is in compliance with the provisions of the Securities and exchange board of India (Substantial Acquisition of Shares and takeover) [SebI(SASt)] regulations.
b) the guarantee is covered by a counter guarantee of a bank of international repute.
c) the guarantee will be valid for a tenure co-terminus with the offer period only, as required under the SebI (SASt) regulations.
In case of invocation of the guarantee, the bank is required to submit to the chief General Manager-in-charge, Foreign exchange Department, reserve bank of India, central Office, Mumbai 400 001, a report on the circumstances leading to the invocation of the guarantee.
A. P. (DIR Series) Circular No. 38 dated September 06, 2013Notification No.FEMA.279/2013-RB dated July 10, 2013 notified vide G.S.R.No.591 (E) dated September 4, 2013 Notification No.FEMA.280 /2013-RB dated July 10, 2013 notified vide G.S.R.No.531 (E) , dated August 5, 2013.Purchase of shares on the recognised stock exchanges in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations
Presently, FII, QFI and NrI can acquire shares on recognized stock exchanges in in terms of Schedule 3, 4, 5 and 8 of FeMA Notification No. 20. However, non-residents are not permitted to acquire shares on stock exchange under FDI scheme under Schedule 1 of FeMA Notification No. 20.
this circular permits non-residents including NrI to acquire shares of a listed Indian company on the stock exchange through a registered broker under FDI scheme if: -i. the non-resident investor has already acquired and continues to hold
the control in accordance with SebI (Substantial Acquisition of Shares and takeover) regulations.
ii. the amount of consideration for transfer of shares to non-resident consequent to purchase on the stock exchange must be paid as below: -a. by way of inward remittance through normal banking channels, orb. by way of debit to the Nre/FcNr account of the person concerned
maintained with an authorized dealer/bank;c. by debit to non-interest bearing escrow account (in Indian rupees)
maintained in India;
d. the consideration amount may also be paid out of the dividend payable by Indian investee company, in which the said non-resident holds control as (i) above, provided the right to receive dividend is established and the dividend amount has been credited to specially designated non–interest bearing rupee account for acquisition of shares on the floor of stock exchange.
iii. the pricing for subsequent transfer of shares to non-resident shareholder shall be in accordance with the pricing guidelines under FeMA.
iv. the original and resultant investments must be in line with the extant FDI policy and FeMA regulations.
A. P. (DIR Series) Circular No. 39 dated September 06, 2013Notification No.FEMA.258/2013-RB dated February 15, 2013 notified vide G.S.R.No.480(E) dated July 12, 2013Export and Import of Currency
Presently, a resident individual can take outside India or having gone out of India on a temporary visit, bring into India (other than to and from Nepal and bhutan) Indian currency notes up to an amount not exceeding rs.7,500.
this circular has increased this limit from rs. 7,500 to rs. 10,000. As a result, any person resident in India: -i) can take outside India (other than to Nepal and bhutan) Indian currency
notes up to an amount not exceeding rs.10,000 (rupees ten thousand only); and
ii) Who had gone out of India on a temporary visit, can bring into India at the time of his return from any place outside India (other than from Nepal and bhutan), Indian currency notes up to an amount not exceeding rs.10,000 (rupees ten thousand only).
A. P. (DIR Series) Circular No. 40 dated September 10, 2013Notification No.FEMA.286/2013-RB dated September 05, 2013 notified vide G.S.R.No.595(E) dated September 06, 2013Overseas Foreign Currency Borrowings by Authorised Dealer Banks – Enhancement of limit
this circular permits banks to borrow funds, subject to certain conditions, from their Head Office, overseas branches and correspondents and overdrafts in Nostro accounts up to a limit of 100% of their unimpaired tier I capital as at the close of the previous quarter or US $ 10 million (or its equivalent), whichever is higher, as against the existing limit of 50% (excluding borrowings for financing of export credit in foreign currency and capital instruments).
Further, banks can up to November 30, 2013, enter into a swap transaction with rbI in respect of the borrowings raised as above at a concessional rate of 100 basis points below the market rate for all fresh borrowing with a minimum tenor of one year and a maximum tenor of three years, irrespective of whether such borrowings are in excess of fifty per cent of their unimpaired tier I capital or not. Although banks are free to borrow in any freely convertible currency, the swap is available only for conversion of US $ equivalent into INr and the US $ equivalent shall be computed at the relevant cross rate prevailing on the date of the swap.
OctOber 201311
A. P. (DIR Series) Circular No. 41 dated September 10, 2013Overseas Direct Investment – Amendment
this circular has modified condition of clause (b) relating to obtaining prior permission under the Approval route from rbI for providing corporate guarantee by an Indian Party on behalf of second generation or subsequent level step down operating subsidiaries. the original and revised provisions are as under: -
Original Provision Revised Provision
(b) Further, it has also been decided that issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval route, provided the Indian Party directly or indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.
(b) Further, it has also been decided that issue of corporate guarantee on behalf of second generation or subsequent level step down operating subsidiaries will be considered under the Approval route, provided the Indian Party indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended to be issued.
As result of this modification, an Indian Party directly holding 51% or more in the overseas subsidiary can give a guarantee on behalf of second generation or subsequent level step down operating subsidiaries under the Automatic route.
A. P. (DIR Series) Circular No. 42 dated September 12, 2013Notification No.FEMA.284/2013-RB dated August 27, 2013 notified vide G.S.R.596 (E) dated September 06, 2013Foreign Investment in India – Guidelines for calculation of total foreign investment in Indian companies, transfer of ownership and control of Indian companies and downstream investment by Indian companies
this circular has amended condition at (d) regarding downstream investments by an Indian company which is not owned and / or controlled by resident entity / entities. the amended condition is given in the Annex is as under: -
c.f. Annex to A.P.(DIR Series) Circular No. 1 dated July 04, 2013
Earlier Condition Revised condition
Parae 6 (ii) (d)
For the purpose of downstream investment, the Indian companies making the downstream investments would have to bring in requisite funds from abroad and not use funds borrowed in the domestic market. this would, however, not preclude downstream operating companies, from raising debt in the domestic market. Downstream investments through internal accruals are permissible by an Indian company engaged only in activity of investing in the capital of another Indian company/ies, subject to the provisions above and as also elaborated below:
For the purpose of downstream investment, the Indian companies making the downstream investments would have to bring in requisite funds from abroad and not use funds borrowed in the domestic market. this would, however, not preclude downstream operating companies, from raising debt in the domestic market. Downstream investments through internal accruals are permissible by an Indian company, subject to the provisions of clause 6(i) and as also elaborated below:
A. P. (DIR Series) Circular No. 43 dated September 13, 2013Export of Goods and Services – Simplification and Revision of Declaration Form for Exports of Goods / Softwares
Presently, every exporter of goods or software has to give declaration in one of the forms (Gr/PP/SDF/SOFteX/bulk SOFteX) and submit the same to the specified authority for certification.
this circular prescribes a common form called “export Declaration Form” (eDF) for declaring all types of export of goods from Non-eDI ports and a common “SOFteX Form” to declare single as well as bulk software exports. the eDF will replace the existing Gr / PP form used for declaration of export of Goods and as to be used on and from October 1, 2013. Further, all exporters will have to declare all the export transactions, including those less than uS $ 25,000, in the applicable form. the procedure relating to the exports of goods through eDI ports will remain the same and SDF form will be applicable as hitherto. the eDF and SOFteX form have been given in Annex I and Annex II respectively. rbI will extend facilities to exporters for online generation of SOFteX Form No. (Single as well as bulk) for use in Off-Site Software exports, in addition to eDF Form No. (Present web-based process of generation of Gr Form No. gets replaced) through its website www.rbi.org.in. the specimen of online form and the advice are given in Annex III. exporters have to complete the eDF / SOFteX Form using the number so allotted and submit them to the specified authority first for certification and then to AD for necessary action as hitherto.
A. P. (DIR Series) Circular No. 44 dated September 13, 2013Notification No. FEMA. 285/2013-RB dated August 30, 2013 vide G.S.R. No.597(E) Foreign Direct Investment (FDI) in India – Review of FDI policy – definition for control and sector specific conditions
this circular contains the following information: -
1. revised definition of the term ‘control’ – 'control' shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements.
2. State Governments of Himachal Pradesh and Karnataka have given consent to implement the FDI policy on Multi brand retail trading in Himachal Pradesh and Karnataka respectively. As a result the list of States stands modified with the addition of the names of the above two States.
3. the central Government has issued the new consolidated FDI Policy which has come into effect from April 5, 2013. rbI has accordingly revised and updated the FDI caps and routes for various sectors in order to bring the same in uniformity with the sectoral classification for FDI as notified under the consolidated FDI Policy circular.
A. P. (DIR Series) Circular No. 45 dated September 16, 2013Memorandum of Instructions governing money changing activities – Location of Forex Counters in International Airports in India
this circular states that non-residents can carry Indian currency up to a maximum of rs. 10,000 beyond Immigration / customs desk to the Duty Free Area / Security Hold Area (SHA) in the departure hall in international airports in India for meeting miscellaneous expenditures. However, they must dispose of Indian currency before boarding the plane.
Further, in order to provide money changing facility to non-residents to convert unspent Indian rupees with them Foreign exchange counters can be opened in the Duty Free Area / SHA beyond the Immigration / customs desk in the departure halls in international airports in India.
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Registered with the Registrar of Newspapers for India under R.N. 68365/98 Regd. No. MH/MR/South-88/2012-14Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1Published on 15th of every month • Posted on 15th & 16th of every month
Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Spenta Multimedia, Mumbai-400013.
• Please fill in the above form and send the same to the Society’s office along with requisite payment. • Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft. • Kindly note that the cash counter timings are from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. on Saturday. The lunch time is 1.30 p.m. to 2 p.m. Members are requested to co-operate in this regard. • Cancellation policy: Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed.
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BCAS Study Circles 2013–14Study
Circle No. Subject Fee Tick your choice here
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III Company Law, Auditing & Accounting 449*
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