Ministry has brought out amendments relating to Corporate Social Responsibility by widening the list of entities through which companies can undertake CSR activities. Accordingly, companies can now carry on CSR activities through Section 8 company not only which is established in association with its holding or subsidiary or associate company but also with any other company and its group companies. However, participation of the company in establishment of such section 8 company is essential, which was not the position earlier. Companies may also conduct its CSR activities through unrelated Section 8 companies, provided such company shall have an established … Read more
NEW DELHI: Prescribing the road map for the implementation of the new Indian accounting standards (Ind AS), the Corporate Affairs ministry on Friday specified the class of companies that have to move to the new accounting system that are close to the International Financial Reporting Standards (IFRS).
Ind AS will be applicable from the next financial year on a voluntary basis and from April 2016 it will be mandatory for companies with net worth of Rs 500 crore. Companies which have a net worth of Rs 250 crore or more but less than Rs 500 crore will have to mandatorily … Read more
States taken care of, Madam(s) silenced, major parties who matter in the Parliament supporting, the process to introduce the biggest indirect tax reform in India, the GST, has begun.
Bill No. 192 of 2014, The Constitution (one hundred and twenty second amendment) Bill, 2014 seeks to insert the following articles 246A, 269A and 279A in The Constitution apart from making certain amendments to already existing articles. These amendments will pave way for introduction of a dual structure Goods and Services Tax.
Article 246A is introduced in Part XI Chapter 1 titled “Legislative Relations”. This article empowers the legislature of every … Read more
MCA vide notification dated 31st December 2014 has made amendment in the Companies (cost records and audit) Rules, 2014 through Companies (Cost Records and Audit) Amendment Rules, 2014. The details of amendment is reproduced as below:-
1. In rule 2
After clause (a) the following clause shall be inserted:-
(aa) Central Excise Tariff Act Heading means the heading as referred in the Additional Notes in the First schedule of the central Excise Tariff Act, 1985 [5 of 1986]
2. Rule 3 shall be substituted by the following rule:-
Position under existing rule 3:
The existing rule 3 provides for applicability … Read more
KHETAN INDUSTRIES PRIVATE LIMITED VS. MANJU RAVINDRA PRASAD KHETAN.
In this case it was held by the court that the shareholders have a right to remove the directors under section 284 by passing ordinary resolution and section 284 provides an inbuilt mechanism for the enforcement of the right and civil court has no jurisdiction to entertain the suit for removal of director.
LIC of India v Escorts Ltd.
As per a milestone judgment given in LIC of India v Escorts Ltd. (1986) it was held that it is not necessary to give reasons in explanatory statement for removal of a … Read more
Power to remove directors has always been bestowed on shareholders, as we all know that at the end of the day, directors are answerable to shareholders. Nothing has changed in the procedural aspect under Companies Act, 2013 as well. Shareholders can remove any director before the expiry of his tenure, except any director appointed by Tribunal for prevention of oppression and mismanagement u/s 242 and a director appointed under principle of proportional representation u/s 163.
Right to Remove a Director is Legal Right of Share Holders:
Section 169 and Chapter 7 of Companies Act, 2013 Right of Shareholders to remove … Read more
Construction Service / Works Contract- Residential Apartments Impact of Larsen & Toubro [ K.Raheja] Judgment.
– Madhukar N Hiregange
Commercial tax is a largest[maximum] contributor of revenue to every State. There were attempts in late 1990s and later by Sales Tax authorities to cover works contract under tax. However in several disputes, it was held that there was no sale and therefore not taxable.
States were keen to get the huge revenue from this sector [ presently about 10% of the GDP of India] into taxation. The Government by way of the 46th amendment to the Constitution of India inserted … Read more
ASSESSMENT / REASSESSMENT / APPEALS / SEARCH
The Gujarat High Court in Raaj Ratna Metal Industries Ltd vs. ACIT has held that if AO contests the audit objection but still reopens u/s 147 to comply with the audit objection, it means he has not applied his mind independently and the reopening is void
The Kolkata ITAT in Munshi Mini Rice Mill vs. ITO has held that failure to record detailed reasons in assessment order does is not required to justify s. 147 action. There is a statutory presumption that AO has applied his mind while passing assessment order
The Mumbai … Read more