Finance Bulletin Sep2013 2

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FINANCE BULLETINKnowledge multiplies through sharing

Vol. VII/ Issue No.9/Sept 2013 Compiled by CMA R Satyanarayana, M.Com, FCMA

(Commenced in May 2007) E-mail : yadav,[email protected]

Mobile: (91) 949-186-8036

EDITORIAL

Dear friends,

The most important thing for the corporate

world would be the new Companies Bill 2012

passed by parliament which has received the

assent of the president of India, release of

liberalized FDI policy in various sectors,

deregulation of interest rates of NRE account,

a trial based attempt by government to

extend benefits for exports through posts and

SEBI directive to brokers to get their software

audited to check stock market losses covered

in this issue.

Increase in the rate of interest subvention to

3% from the existing rate of 2% on Rupee

export credit, provisions contained in the new

Companies Bill regarding Corporate Social

Responsibility (CSR) are welcome features

covered here.

Professionals and others to note the reduction

in maximum permissible remittance limit for

Residents to $ 75000 per year from existing

$200000, conditions for getting the Tax Treaty

benefits to Non-Residents, what is considered

ass misdeclaration to customs, FAQ and

clarificatory circular on VCES Scheme which

are highlights of the month.

With regards

R. Sat anara ana

INDEX

CONTENTS PAGE No.

GENERAL 2

RESERVE BANK OF INDIA 2

ACCOUNTS & AUDIT 3

LABOUR LAWS 4

FEMA 4

DGFT 5

GST5

INCOME TAX 5

CUSTOMS 7

CENTRAL EXCISE 7

SERVICE TAX 7

SEBI 8

COMPANY LAW 8

INSURANCE 8

QUOTES FOR THE MONTH

1. For winning people you have to be

genuine and sincere with no hidden

agenda. –Harry Paul &Ross Reck

2. What you give is what you get. Give

others something great and then enjoy

the benefits of greatness all around you

-Tom Morris

Disclaimer: The compiler is not in any

way responsible for the result of any

action taken on the basis of the contents

of this Finance Bulletin.

mailto:[email protected]






FINANCE BULLETIN

Vol. VII/ Issue No.9/Sept 2013 Page 2

FINANCE

BULLETIN(Professional Version)

GENERAL

RTI: The Union Cabinet has approved

introduction of a Bill in the Monsoon session

of the Parliament to amend the Right to

Information Act, 2005, to exclude the

political parties from the definition of Public

authority for the purpose of the Act VidePress Information Bureau announcement

dated 2nd

Aug, 2013.

SBH rolls out Short term deposit scheme:

SBH has rolled out a short deposit term

scheme for the periods 7 days to 179 days

offering interest at 7.25% p.a. for deposits

below Rs 1 Crore and 7.67% p.a. for deposits

above Rs 1 crore and the said deposit is

named as CHAL-ACHAL (unfixed deposit)

scheme and the customer has an option to

withdraw any time after first 7 days without

any penalty being levied vide The Hindu BL

dated 17th Aug, 2013.

RTI online web portal launched: CG has

launched online web portal on RTI -

http://rtionline.gov.in vide PIB news dated

21st

Aug, 2013.

Plastic money: As a part of clean note policy

initiative, RBI is planning to introduce Rs. 10

plastic notes in five cities –Jaipur,

Bhubaneswar, Kochi, Shimla and Mysore, on

a trial basis vide The Hindu BL dated 23rd

Aug, 2013.

RESERVE BANK OF INDIA

PD Returns for Primary Dealers: RBI has

decided to revise the Format of PD returns

(PDR I, II and IV) submitted to RBI. Returns in

revised format will become effective from

the period ending July 31, 2013 for details

refer to RBI/2013-14/168 IDMD.PDRD.No.

346 / 10.02.23 / 2013-14 dated 31st

July,

2013.

ATM Transactions-Instructions to Banks: RBI

has issued detailed guidelines for enhancing

the ATM activities for details refer to

RBI/2013-14/171 DPSS. CO.PD.No.

289/02.10.002/2013-2014 dated 1st

Aug,

2013.

Point of sale terminals: SBI plans to deploy

1.25 lakh point-of-sale (PoS) terminals in the

next 18 months at various merchant outlets

and counters to help customers carryout

cashless transactions at merchant outlets by

swiping credit/debit cards on PoS machines

and will also facilitate withdrawal of cash

upto a maximum of Rs 1000 a day vide BLdated 7

th Aug, 2013.

FDI limit in ARC raised: RBI has notified the

hike in the investment ceiling for FDI in Asset

Reconstruction Companies from 49% to 74%

and also indicated that the new limit would

be a combined limit of FDI and FII vide the

Hindi BL dated 20th

Aug, 2013.

Refunding of compounding fees: RBI has

issued a circular indicating that to expedite

the refund of compounding fees it has

decided to credit the same to the applicants

account through NEFT and applicants tofurnish mandate and bank details for further

details refer to RBI/2013-14/176 AP(Dir

Circular) No.20 dated 12th

Aug, 2013.

Liberalized remittance scheme- reduction in

ODI limit: RBI has notified that with

immediate effect Authorized dealers are

allowed to remit maximum of US$ 75000 per

year in place of earlier limit of US$ 2,00,000

per Resident for authorized current account

or capital account transactions or both

subject certain other convictions indicated

by RBI in the RBI/2013-14/181 AP(DIR

CIRCULAR) No. 24 dated 14th Aug, 2013. Non-Resident Deposit Scheme Reporting:

RBI has decided to move the NRD-CSR

Reporting to XBRL Platform for details and

procedure involved refer to RBI/2013-



FINANCE BULLETIN


14/173 AP(DIR Series) Circular No.19 dated

7th

Aug, 2013.

Subsequent reversal of legal position: The

subsequent reversal of the legal position by

the judgment of Hon’ble Supreme Court

does not authorize the department to

reopen the assessment which stood closed

on the basis of the law, as it stood at the

relevant time vide DCIT Vs Simplex Concrete

Piles India (P) Ltd (2012) 254 CTR (SC) 221.

CTS Uniform holidays: RBI has issued

guidelines for framing Uniform holidays to

facilitate smooth operation of Cheque

Truncation System (CTS) and indicated that

CTS operations will be closed on such days

when all the participating states in the grid

are observing holidays, even though RTGS isworking on such days for more details refer

to RBI/2013-14/199 DPSS.CO.CHD.No./458/

04.07.05 / 2013-14 dated 23rd

Aug, 2013.

Deregulation of interest rate of NRE

accounts: RBI issued a circular stating that in

order to pass on the benefit of exemption

provided on incremental NRE deposits with

maturity of 3 years and above from CRR/ SLR

requirements, it has decided to give State /

Central Co-operative Banks the freedom to

offer interest rates on such deposits without

any ceiling. The extant ceiling on NRO

Accounts shall continue and the beneficial

provisions would be applicable upto 30th

Nov, 2013 vide RBI/2013-14/197

RPCD.RCB.BC.No. 26 /07.51.014/2013-14

dated 22nd

Aug, 2013.

Interest Sub-vention: In respect of Rupee

Export credit the Government of India has

decided to increase the rate of interest

subvention on the existing sectors from the

present 2% to 3% with effect from August 1,

2013 for full details refer to

RBI/2013-14/200 DBOD.Dir.BC.No.43

/04.02.001/2013-14 dated 26th Aug, 2013. Liberalization of FDI policy: CG has issued a

press release on 16th July, 2013 liberalizing

the FDI Policy in respect of various sectors

under automatic route and most important

among them being in respect of single brand

retail trading allowing up to 49% FDI under

automatic route and thereafter under

approval route. For details of various sectors

in which liberalized FDI is applicable refer to

Press release dated 16th July, 2013 issued by

Ministry of Commerce & Industry.

ACCOUNTS & AUDIT

Revised syllabus from Nov 2014 IPCC &

Final: ICAI has notified the revised syllabus

and allotment of marks etc., in respect of

IPCC -Taxation paper and Information

Technology paper and also in respect of

Final –Information systems control and audit

& Indirect taxes which would come into

effect from Nov 2014 examination. Fordetails please refer to www.icai.org

Training for CA students/Articles: ICAI

announced 15 months training with FI,

consultancy firms, law firms and removed

fees of Rs 50 with Apprenticeship agreement

etc., for details refer to www.icai.org

IND AS implementation: A high-level core

committee, comprising representatives of

various regulators-RBI, SEBI, IRDA and the

Corporate Affairs Ministry will meet on 23rd

Aug, 2013 to decide the road map for

implementation of IND AS vide Hindu BL

dated 16th Aug, 2013.

Diligence reports: ICSI has decided to launch

revised guidance note on preparing due

diligence reports for banks vide The Hindu BL

dated 16th

Aug, 2013.

Audit Report in Revised Format: The revised

Format of Audit Report is applicable for

audit of Financial Statements beginning with

1st

April, 2012 on or after and auditors to

note the revisions made to SA 700(Revised),

SA 705 and SA 706 for details refer to

www.icai.org

Training of students of CS course: TheCouncil of the ICSI has allowed imparting 15

months training by Law Firms, Consultancy

Firms and Financial Institutions. Further the

Council has removed the requirement of

remitting a fee of Rs 50/- by the PCS towards

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FINANCE BULLETIN


registration of apprenticeship training of the

students for details refer to www.icsi.org

Applicability of Companies Bill 2012 for CA

Exams: ICAI has clarified that the proposed

Companies Act, 2013 will not be applicable

for the Intermediate (IPC) and Final

Examinations to be held in May 2014.

Regarding the applicability for November

2014 Examination, the decision will be taken

based on the exact date of enactment of the

Companies Bill into the Act for details refer

to www.icai.org

Applicability of Companies Bill 2012 for Dec

2013 exam: ICSI has clarified that Highlights

of the Companies Bill, 2012 as passed by the

Parliament on 8th August, 2013 will be

applicable under the topics HistoricalDevelopment of Concept of Corporate Law

in India/Contemporary Developments. All

Circulars, Clarifications/Notifications issued

by the Ministry of Corporate Affairs effective

six months prior to the date of examination

for details refer to www.icsi.org

Accounting Standard for Local Bodies: The

Committee on Accounting Standards for

Local Bodies of the Institute of Chartered

Accountants of India invites comments on

any aspect of this Exposure Draft of

Accounting Standard for Local Bodies (ASLB)

31, ‘Intangible Assets’ and the comments to

be submitted latest by 30th

Sept, 2013 for

details and for draft of the standard refer to

www.icai.org

Guidance Note on Audit of Banks: ICAI in

order to thoroughly revise Guidance Note on

Audit of Banks in its 2014 edition to be

published has called from interested

readers to send their suggestions to

[email protected]. The last date for

sending the suggestions is 15th September

2013 for details refer to www.icai.org

Job Portal of ICSI: The Institute of CompanySecretaries of India (ICSI) has launched a

Placement Portal for its Members and the

Corporates. The portal provides free of cost

online platform for Corporates and Members

for details refer to www.icsi.org

LABOUR LAWS

CPI for Industrial workers: Labour

Department has released the consumer

price index No. for June 2013 as 231 fordetails refer to www.labuorbureau.gov.in

Pension: Supreme court held that Pension,

Gratuity and encashable accumulated leave

are rights which cannot be forfeited by

employer even in the case of employees who

are charge-sheeted or prosecuted for

criminal proceedings vide decision given in

the case of Jithendra Kumar Srivatsava The

Endau dated 21st

Aug, 2013.

Data of members of EPFO: Updated balance

in EPF account can be obtained by EPF

member through SMS by furnishing his PFnumber and mobile number by using ‘Know

your EPF Balance’ facility on the website of

EPFO at www.epfindia.gov.in. Fursther

members can view and take a print of e-

Passbook.

ESI Act: Under the ESI Act, 1948 the

Employees drawing wages upto Rs. 15000/-

per month are eligible to avail ESI facilities

subject to the applicable contributory

conditions. The ceiling of wages for persons

with disability is Rs.25,000/- per month.

There is no minimum wage limit for availing

ESI facilities as informed to Loksabha by theconcerned Minister of CG dated 16

th Aug,

2013.

FEMA

Refunding of compounding fees: To

expedite the refund of compounding fees it

has been decided to credit the same to the

applicant’s account through NEFT. The

applicants are advised to furnish their

mandate and details of their bank account as

per ANNEX along with the application in the

prescribed format vide RBI/2013-14/176

A.P. (DIR Series) Circular No. 20 dated 12th

Aug, 2013.




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FINANCE BULLETIN


DGFT

Advance Authorization Scheme/DFIA:

Inputs actually used in manufacture of the

export product should only be importedunder the authorization. Similarly inputs

actually imported must be used in the export

product. This has to be established in

respect of every Advance Authorization /

DFIA vide NOTIFICATION NO. 31 (RE-2013)/

2009-2014 dated 1st

Aug, 2013.

Suspension and cancellation of IEC code:

JDs and ADs of Foreign Trade are now

delegated to suspend and cancel IEC code

numbers allotted vide Notification No.39

(RE-2013)/2009-2014 dated 29th

Aug, 2013.

GST

GST: A report of the standing committee on

Finance submitted its report on GST to

Loksabha on 7th

August, 2013.

INCOME T AX TAX

Set off and carry forward of losses STP etc .:

CBDT released a circular indicating

Department’s view in respect of Set-off and

carry forward of losses in respect of STP,

100% EOU & SEZ units and according to thesaid circular it would help the assesses who

have considered the Sections 10A and 10B as

deductions and not as exemptions vide

circular No.7/DV/2013 dated 16th

July, 2013.

Procedure for selection of scrutiny cases:

The CBDT has issued Instruction No. 10 of

2013 dated 05.08.2013 announcing the

procedure and criteria for selection of

scrutiny cases under the compulsory manual

for FY 2013-14 for details refer to the said

circular containing the instructions.

Discount on issue of ESOP allowed: The

special bench of the IT Tribunal Bangaloredecided that the discount on issue of ESOP is

tax deductible expenditure vide decision

given in the case of Biccon Ltd Vs DCIT vide

ITAT-SB/TS-322-ITAT Bangalore.

TP Documentation: OECD has published

Paper on Transfer Pricing Documentation

which would help the member countries to

lay down documentations requirements

keeping the global requirements of

operating assesses for details refer to

www.oecd.org

Revised Forms 15CA & 15CB: CBDT has

issued circular amending IT rules regarding

furnishing of information of sum paid to Non

Residents and revised Forms 15CA & 15CB

vide Notification No.58/2013 dated 5th

Agu,

2013.

TP: Foreign associated enterprise can be

taken as ‘Tested Party’ for TP purpose vide

decision of ITAT Ahmedabad in the case of

General Motors India Ltd Vs DCIT Criteria for selection of cases for scrutiny:

The CBDT has issued Instruction No. 10 of

2013 dated 05.08.2013 announcing the

procedure and criteria for selection of

scrutiny cases under the compulsory manual

for FY 2013-14. The guidelines appear to

have been issued pursuant to the direction

of the Delhi High Court in Joginder Pal Gulati

vs. OSD – CPIO.

Appearing before Revenue Authorities: ITAT

Agra has decided that for appearing before

Revenue Authorities certificate ofregistration as IT Practitioners is mandatory

and the eligibility criteria has been

prescribed under Section 288(2)(v)&(vi) vide

decision given in the case of Samagra Vikas

Mahila Samiti Vs CIT ITA No.133/Agra/2013

which was pronounced on 9th

July, 2013.

Lease premium for allotment of Land: Lease

Premium for allotment of a plot of a land do

not attract provisions of Section 194I vide

decision given in the case of ITO(TDS) Vs M/s

Wadhwa & Associates Realtors Pvt. Ltd -T.A.

No.695/Mum/2012.

Transfer Pricing: Delhi Tribunal held thatcompanies having low turnover / persistent

loss/ diminishing revenues were not good

comparables. On the other hand companies

( not functionally different) having super

normal profits could be considered vide

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FINANCE BULLETIN


decision given in the case of Navisite India

Pvt. Ltd Vs ITO ITA 5329/Del/2012

Date of effect of FATCA of US: Foreign

Account Tax Compliance Act (FATCA) of US

enacted in 2010 which is intended to

counter off shore tax avoidance by US

persons and the final Regulations issued in

Jan 2013 have been agreed to be given

effect from 1st

July 2014.

Draft Safe Harbour Rules: CBDT has

published much awaited draft Safe Harbour

Rules, which are aimed at reducing litigation

& alleviating uncertainty, while ensuring

taxation of reasonable profits in India. CBDT

has called for comments on these Rules by

August 26, 2013 for details refer to

www.incometaxindia.gov.in Treaty benefits to Non-Residents: CBDT has

prescribed Form 10F to furnish the

additional details in respect of Non-

Residents to claim the benefits available

under th Treaty agreements for details refer

to Notification No.57/2013 dated 1st

Aug,

2013.

Legal decisions Vs Departmental Circulars:

Legal decisions would prevail over the

circulars issued by the department as the

circulars are issued by the executive officers

and it can’t go beyond the law vide decisiongiven in the case of Commissioner of C. Ex.

Bolpur Vs Ratan Melting & Wire Industries

2008(231)ELT 22 (SC).

Information of payments to Non-Residents:

CBDT has issued Notification No.58/2013

dated 5th

Aug, 2013 amending the IT Rules

and prescribing the Format for furnishing the

information by person responsible for

making payment to a non-resident, not

being a company, or to a foreign company.

Unmatched TDS Challans: Pursuant to the

judgment of the Delhi High Court in Court on

Its Own Motion vs. UOI 352 ITR 273, theCBDT has issued Instruction No. 11 of 2013

dated 27.08.2013 stating that where the

report by the deductor in the TDS statement

are not found available in the OLTAS

database resulting in TDS mismatch, the

CPC(TDS)/ AOs(TDS) shall immediately issue

letters to the deductors, in whose case TDS

challans are unmatched, with a view to

verify and correct these challans for other

details refer to the above cited circular of

CBDT.

Skill Development Projects: As required

under Section 35CCD for claiming a weighted

deduction of 150% of expenditure for

approval of skill development projects Rule

6AAF, 6AAG, 6AAH has been inserted in

Income tax Rules specifying procedure &

conditions for approval of Skill Development

Project vide Notification No. 54/2013 dated

15/07/2013.

Tax Administration Reforms Commission:

The Ministry of Finance has issued a pressrelease dated 13.08.2013 stating that the

Union Cabinet has approved the proposal for

setting up of the Tax Administration Reform

Commission (TARC). The Commission will

review the application of tax policies and tax

laws in India in the context of global best

practices and recommend measures to

strengthen the capacity of the tax system in

India that would reflect best global practices.

Writ against Reassessment Order: Writ

petition to challenge a reassessment order

should not be entertained vide CIT Vs

Chabbildas Agarwal vide decision of the

Supreme Court- CIVIL APPEAL NO. 6704 OF

2013.

No TDS based on book entries: Assesse can

not be held liable for TDS merely based on

book entries made in the books of account

vide decision given by ITAT Mumbai in the

case of ITO vs M/s Pipavav ITA

2603/Mum/2011 dated 7th

Aug, 2013.

Sale and lease back: A finance lease

designed as a sale-and-lease back has to be

treated as a sham transaction vide decision

given vide decision of ITAT Mumbai given inthe case of Hatway Investments Pvt. Ltd Vs

ACIT

Repairs when Current and Non-current:

Madras HC has given judgment giving

principles when the Repairs can be treated

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FINANCE BULLETIN


as current or non-current in the case of M/s

Super Spinning Mills Ltd Vs ACIT Tax Case

(Appeal).No.140/2013.

TDS provisions explained: ITAT Bangalore

explained on TDS obligation on medical

reimbursement & LTC explained in the

judgment given in the case of ACIT Vs Infosys

(BPO)

Donations to Trusts & Institutions by UCBs:

RBI has issued a circular which indicates that

UCBs are prohibited from giving donations to

Trusts and Institutions, where directors,

and/or their relatives hold position or are

interested, even within the permissible

ceiling of 1% of the published profits of the

bank for the previous year vide RBI/2013-

14/205 UBD.BPD.(PCB).Cir. No.7/09.72.000//2013-14 dated 30

th Aug, 2013.

CUSTOMS RULES

Mis-delcaration to customs: Import /

Export documentation should indicate the

quantity in all documents only in accordance

with single Unit Quantity Code (UQC) against

each Tariff Item and the same should be

reflected in Bill of Entry / Shipping bills / Bill

of export by importers/exporters/Customs

Brokers, otherwise it will be treated as mis-

declaration / wrong declaration vide CBEC

Circular No.26/2013 dated 19th

July, 2013.

Exports through Post benefits: CBEC has

launched a pilot project to extend the

benefits of Reward Schemes in respect of

exports by post from New Delhi Post office

which shall be available for period of 60 days

and the procedure for the same are given in

the CBEC Circular No.29/2013 dated 5th

Aug,

2013.

CENTRAL EXCISE RULES

Documents for CENVAT Refund claim: CBDT

has issued the documents required in

respect of refund claims submitted under

Rule 5 of Cenvat Credit Rules 2004 also

indicated the deficiencies generally found in

cases of such refund applications vide

F.No.137/70/2009-CX 4 dated 23rd

May,

2013.

No fee for filling Appeal relating to

refund/rebate: As per the provision in

Section 86(6) no fees is payable on appeals

relating to refund/rebate of Service Tax.

Since provisions under Section 129A (6) of

Customs Act and 358 (6) of Central Excise

Act, are identical, no fees is payable in

respect of appeals pertaining to refund of

excise duty or Customs duty - Larger Bench

of CESTAT vide AIT-2013-124-CESTAT

SERVICE TAX:

VCES-Clarifications: CBEC has issued a

circular giving clarifications on various issuesconnected with the Service Tax Voluntary

Compliance Encouragement Scheme (VCES)

vide No.170/5/2013-ST dated 8th

Aug, 2013.

FAQ on VCES: CBEC has issued a booklet

namely 'Service Tax VCES, 2013- FAQ'. It

contains clarifications on doubts and queries

about the scheme in the form of FAQ, VCES

statutory provisions and the Rules including

the VCES forms for downloading the booklet

you can refer to www.cbec.gov.in

Reimbursement of expenses:

Reimbursement of expenses not to form

part of taxable value for levy of service tax as

decided by Commissioner of C. Ex. Bolpur Vs

Ratan Melting & Wire Industries

2008(231)ELT 22 (SC).

No TDS on service tax: The Rajasthan High

Court, in the case of Rajasthan Urban

Infrastructure Development Project, ruled

that no tax need be withheld under Section

194J on the service tax payable on

professional/ technical fees vide ITA

235/2011 decided on 1st

July, 2013.

Submission of ST-3 extended: The Central

Board of Excise & Customs extended thedate of submission of the Form ST-3 for the

period from 1st October 2012 to 31st March

2013, from 31st August, 2013 to

10thSeptember, 2013 vide Order No.4/2013-

Service Tax dated 30th

Aug, 2013.

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FINANCE BULLETIN


SEBI

Audit of software used by brokers: To check

stock market losses due to technical glitches,

SEBI has made it mandatory for brokers andtraders to get their trading systems and

software tools tested and audited in

consultations with the stock exchanges vide

The Hindu BL dated 21st

Aug, 2013.

Overhauling Disclosures: In order to

increase transparency, standardization and

mark a step forward to plug loopholes, SEBI

has decided to propose changes in the listing

agreement like-mandatory disclosure of half

yearly consolidated results in case of 20% or

more variations in revenue, assets, liabilities,

profit or losses etc for details refer to

www.sebi.org.

Revision in Clause 41 of Equity Listing

Agreement: SEBI has issued a discussion

paper regarding Revision of Clause 41 of

Equity Listing Agreement inviting Public

comments on the draft proposals to be

emailed on or before September 13, 2013 to

[email protected] or sent, by post

to SEBI for details refer to www.sebi.gov.in

COMPANY LAW

Companies Bill 2012 passed by Parliament:The Parliament has passed the historic

Companies Bill 2012, moved by Shri Sachin

Pilot, Minister of Corporate Affairs. The Bill

was passed by the Rajya Sabha on 9th

Aug,2013 which had already been passed by

the Lok Sabha many months ago (in

December 2012). Shri Pilot has termed it as a

historic day for the country as it will usher in

a new era in the Corporate Governance.

President has given his consent to the Bill

and the same is published in the Gazette of

India on 30th

Aug, 2013.

New Company law effective from 1.4.2014:

According to Renuka Kumar, Jt Secretary,

Ministry of Corporate Affairs the new

Company Law will come into effect from 1st

April, 2014 by which date the entire law,

including the Rules will be in place and the

process of assent of the President of India

would be completed vide BL dated 15th

Aug,

2013.

CSR: According to the new Companies law

that was recently cleared by the Parliament

any company having a net worth of Rs 500

crore or more or turnover of over Rs 1000

crore or more or a net profit of Rs 5 crore

will have to spend 2% of their last three

years average net profits on CSR activities

for which government is likely to create a

database of projects which can be tapped

that need CSR funds and CG will prescribe

set of guidelines but the decision of the CSR

committee on the Board of companies is

final as regards to selection of CSR projects

vide The Hindi BL dated 16th

Aug, 2013. HUF in LLP: A HUF cannot be treated as a

body corporate for the purposes of LLP Act,

2008. Therefore, a HUF or its karta cannot

become designated partner in LLP vide

General Circular No.13/2013 dated 29th

July,

2013.

INSURANCE

Insurance Broking: IRDA has released the

guidelines for banks to sell products of

multiple insurance companies, but most of

the banks may not rush to take Broking

license as RBI is not keen on banks becoming

brokers as many of them have promoted

insurance companies and this could lead to a

conflict of interest vide Hindu BL dated 16th

Aug, 2013.

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