HVJ COMMUNIQUE JAN 2018 VOLUME 13 May this year be A year of health & happiness. A year of wealth & Wisdom. A year of peace & Prosperity.A year of glee & Glow And also a year of Love & Laughter HAPPY NEW YEAR 2018..!!
Dear Professional Colleague, At the outset, we wish you a very Happy and Prosperous New Year, 2018!! Quality in a service or product is not what you put into it. It is what the customer gets out of it. Peter F Drucker. Quality plays a vital role in any industry as the customer satisfaction is always dependent on the standard of a service or product. It is often said in business world that, Quality is not an act, it is a habit. Therefore, maintaining the highest quality in services provided to our clients is the main motto of our team at HVJ.- Since, we are in the start of a New Year 2018, our team has committed to New Year resolutions to deliver clients with much higher quality of services and value added services. We are pleased to bring you, our 51 st edition of HVJ Monthly Communiqué which summarizes latest significant tax and financial developments occurred in the month of December 2017. We have come up with new genre of Communique from this edition by including Quick Response (QR) codes for various important links. The Government of India has extended the due date to link Aadhaar to various services including linking PAN with Aadhaar to 31 st March, 2018 from 31 st December 2017. The Ministry of Corporate Affairs has come out with an amnesty scheme called Condonation of Delay Scheme, 2018 wherein the Govt. is providing a Chance to all the Disqualified Directors to File the overdue Annual Returns for a continuous period of three financial years from 2013-14 to 2015-16 and remove their Disqualifications. We hope you find this journal is informative and of continued interest. We welcome your feedback at Communique@aino global.com With warm Regards, CA. Sudheer Javali On behalf of HVJ Team!! 1 Quality means doing it right when no one is looking
Compendium Calendar Month Overview Statutory Due Dates In the month of January 2018 Foreign Exchange Fluctuation Stock Market Fluctuation Commodity Market Fluctuation New Notification / Circulars / Amendments Income Tax & TDS Goods and Service Tax (GST) The Companies Act, 2013 Labour laws Monthly Articles Article 1 : MCA s Condonation of Delay Scheme, 2018 Article 2 : Overview of Indian Economy in 2017 Also look out for.. Glimpses of Aino Events in 2017! 2 Quality is never an accident, It is always the result of intelligent effort
Calendar Month Overview Statutory Due Dates In the month of January 2018 Particulars Nature of payment/return Filing Due date TDS/TCS TDS payment 7th Jan TDS /TCS e-tds Returns for the Quarter Oct 17-Dec 17 31 st Jan PF Monthly payment and Return filing 15 th Jan ESIC Monthly payment and return filing 15 th Jan PT Monthly payment and return filing 20th Jan Labour Act Annual Return Filing (FORM-U) 31 st Jan Labour Welfare Fund Last date for Return Submission(FORM-D) 15 th Jan Goods & Service Tax GSTR- 3B for the month of December-17 20 th Jan (GST) GSTR-1 for the Quarter July- Sep 2017 (<1.5 10 th Jan Cr) GSTR-1 for any month between July- Nov 10 th Jan 2017 (>1.5 Cr) GST ITC-1 31 st Jan GST CMP -03 (For Composition scheme) 31 st Jan Foreign Exchange Fluctuations Currency As on 30 th Nov 2017 As on 31 st Dec 2017 Change USD 64.4790 63.9273 0.5517 GBP 86.9840 86.0653 0.9187 EURO 76.9039 76.3867 0.5172 Stock Exchange Fluctuations Stock Exchange As on 30 th Nov 2017 As on 31 st Dec 2017 Change BSE Sensex 32,832.94 34,056.83 1,223.89 Nifty 10,410.40 10,530.70 120.30 Commodity Market (MCX) Fluctuations Commodity As on 30 th Nov 2017 As on 31 st Dec 2017 Change Gold (10 grams) 22 carat 27,550.00 29,156.00 1,606.00 Silver (1 kg ) 41,900.00 38,700 3,200.00 3 Quality isn t expensive, it s priceless
Compendium New Notification / Circulars / Amendments Income Tax & TDS LINK YOUR AADHAAR WITH PAN CBDT has further extended the due date for linking AADHAAR with PAN to 31- Mar- 2018 from 31-Dec-2017. Those who are required to link and have not done so far, are requested to complete the same on or before 31- Mar -2018. https://www.incometaxindia.gov.in/lists/latest%20news/attachments/203/order-under- Section-119-Income-tax-Act-1961-MiscComm-8-12-2017.pdf Filing of e-tds Returns for the Quarter 3 (Oct 17 Dec 17) The due date to file e-tds returns like FORM 26Q, 24Q for the Quarter 3 Oct 17 to Dec 17 is 31 st Jan 2018 Goods & Service Tax Due date for GST ITC-1 extended to Jan. 31 st 2018 (Notification No. 67/2017-Central Tax, Dated 21-12-2017) The time limit for making a declaration, in FORM GST ITC-01, by the registered persons, who have become eligible during the months of July, 2017, August, 2017, September, 2017, October, 2017 and November, 2017 eligible to avail the input tax credit has been extended till the 31st day of January, 2018. http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-67-central-tax-english.pdf Due date for quarterly GSTR-1 for 2nd quarter extended to Jan. 10, 2018 (Notification No. 71/2017-Central Tax, Dated 29-12-2017) The Govt. has extended the due date of filing GSTR-1 for the quarter July to September, 2017 to January 10, 2018 for taxpayers having turnover up to Rs. 1.5 crores which are tabulated as follows: Quarter Due date July-September 2017 10 th January 2018 October- December 2017 15 th February 2018 January-March 2018 30 th April 2018 http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-71-central-taxenglish.pdf 4 Quality is not an act, it is a habit
Due date for monthly GSTR-1 for months of July to Oct. 2017 extended to Jan. 10, 2018 (Notification No. 72/2017-Central Tax, Dated 29-12-2017) The Govt. has extended the due date of filing GSTR-1 for the month of July - October, 2017 to January 10, 2018 for taxpayers having turnover above Rs. 1.5 crores which are tabulated as below: Month Due date July-November 2017 10 th January 2018 December 2017 10 th February 2018 January 2018 10 th March 2018 February 2018 10 th April 2018 March 2018 10 th May 2018 Late Fees waived off for delayed filing of GSTR-4 (Notification No. 73/2017-Central Tax, Dated 29-12-2017) The Govt. has waived off the late fee for delayed filing of GSTR-4 for the compounding taxable persons. E-way bill made compulsory from February 01, 2018 (Notification No. 74/2017-Central Tax, Dated 29-12-2017) Govt. has notified that E-way bill would be applicable from February 01, 2018 as recommended by GST Council. http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-72-central-taxenglish.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-73-central-taxenglish.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-74-central-taxenglish.pdf 5 Quality has to be caused, not controlled
Government notifies CGST (Fourteenth Amendment) rules, 2017 (Notification No. 75/2017-Central Tax, Dated 29-12-2017) Circular No.24/24/2017-GST dated 21st December 2017 Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger- Reg. Govt. has notified the CGST (Fourteenth Amendment) rules, 2017. Wherein, it made amendments in Rules 17, 19, 89, 95, 96, Form REG-10, Form REG-13 and Form GSTR-11. http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-75-central-taxenglish.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-24- cgst.pdf;jsessionid=b9bd0c3d6925c886adf1c03b0a9535f3 Circular No.25/25/2017-GST dated 21st December 2017 Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-25-cgst.pdf Circular No. 26/26/2017-GST dated 29th December 2017. Detailed Procedure for Filing of Returns under GST. http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-26- cgst.pdf;jsessionid=b6bff917b7ef5b1d9880adc702ad4fae Order No. 11/2017-GST dated 21st December 2017. Extension of time limit for intimation of details of stock held on the date preceding the date from which the option for composition levy is exercised in FORM GST CMP-03 i.e. 31st January 2018. http://www.cbec.gov.in/resources//htdocs-cbec/gst/order11-cgst.pdf 6 Quality is the best business plan
The Companies Act, 2013 Condonation of Delay Scheme, 2018. MCA has issued a scheme named as Condonation of Delay Scheme, 2018, wherein the Govt. is providing a Chance to all the Disqualified Directors to File the overdue Annual Returns for a continuous period of three financial years from 2013-14 to 2015-16 and remove their Disqualification. http://www.mca.gov.in/ministry/pdf/generalcircular16_29122017.pdf Refer to Monthly Article 1 for detailed procedure of the scheme. The Companies (Amendment) Bill, 2017 The Companies (Amendment) Bill, 2017 has been passed by Lok Sabha on 27-7- 2017 and by Rajya Sabha on 19-12-2017. The Amendments proposed in the bill are broadly aims at addressing difficulties faced by stakeholders in implementing of the Companies Act, 2013. The Key amendments proposed in the Bill are discussed hereunder: Relaxed norms for conversion of Partnership Firm into a Private Company: Partnership firm with two or more partners can be converted into a private company [presently, partnership must have at least seven partners for conversion into a company]. These provisions are useful to convert a partnership firm, LLP, society, cooperative society or society or any other business entity formed under any law into a company under section 366(1) of Companies Act, 2013. Ratification on Appointment of auditors done away with: The requirements of annual ratification by members with respect to appointment of auditors when auditors have been appointed for five years have been done away with. Prohibition on Loan & Guarantee u/s 185 relaxed: It is allowed for companies to give loans or guarantees or provide security to any person in whom any of the director is interested in subject to passing of special resolution by the company and utilization of loans by the borrower for its principal business activities. Now, loan can be given only to another company, not to director or his relative or any firm wherein the director is interested in such company. 7 Quality is everyone s responsibility and we never have to stop
Prohibition for paying excess Managerial remuneration relaxed: The requirement of obtaining special resolution and approval of Central Govt. for payment of managerial remuneration in excess of prescribed limits of Schedule V has been done away with. However, for making such payments prior approval of bank or public financial institution or nonconvertible debenture holder or secured creditor is also required before taking approval from shareholders. Companies having E-Voting facility need not to have postal ballot: If a company is providing facility to members to vote by electronic means then postal ballot is not required. Size of Board report reduced: Size of Board report is reduced as some information can be given on company's website and only its reference in Board report is required. First proviso to section 134(3) has been inserted, which provides that if disclosures as required in Board report are made in financial statement, its reference in Board Report is sufficient. Its repetition is not required. Disclosure requirements in Annual Returns reduced: The requirement to disclose the extract of annual return forming part of Board's report and provide disclosure of web address/web-link of the annual return in Board's report has been removed. The requirements regarding disclosure of indebtedness, and modify requirement of disclosure of names, addresses, countries of incorporation, registration and percentage of shareholding of Foreign Institutional Investors have also been omitted. Maintenance of registered office extended to 30 days from 15 days: Under the extant provisions, the company has to maintain its registered office within 15 days of its incorporation. Now, the company has to maintain its registered office within 30 days of incorporation. Streamlining of private placement of shares: The provisions relating to Private Placement have been revamped completely. Private placement should be only to 'identified persons'. Further, more than one issue of securities can be made to each class of identified persons. 8 Quality is the pride of workmanship
Labour Laws- Karnataka Labour Welfare Fund The due date for filing of Form-D is 15 Jan 2018, If the number of employees are more than 50 Form-D is mandatory, while processing December month salary need to deduct Rs.20/- from employee s salary and Rs.40/- as employer s contribution, and accordingly should contribute to government, If employees are less than 50 Form-D filing is not mandatory but its depends on the requirement. Employee s Provident Fund One Employee, One PF Account Facility to consolidate multiple accounts A facility has been provided to the members to merge their earlier PF accounts to Current PF account so that EPFO would help in integration of all the accounts in one Current UAN Activated account. http://www.epfindia.com/site_docs/pdfs/circulars/y2017-2018/ri_oeoa_385.pdf Real Estate Regulation & Development Act (RERA) Penalty on Non Registration or Late Registrations of Ongoing Projects The RERA Authority of Karnataka state has issued a Reminder for ongoing projects which have not registered under the RERA Act on or before 31 st July 2017, will attract 10% Penalty on the total cost of the project. http://rera.karnataka.gov.in/resources/staticpage/penalty_ongoing_projects.pdf 9 When you are out of Quality, you are out of business
Monthly Article 1: MCA s Condonation of Delay Scheme, 2018 Introduction The Ministry of Corporate Affairs has introduced an amnesty scheme called Condonation of Delay Scheme, 2018 vide circular No.16/2017, for defaulting companies which had failed to file their Annual Financial statements and Annual returns. Background of the Scheme As companies registered under the Companies Act, 2013 are required to file their Annual Financial statements and Annual Returns with the Registrar of Companies and non-filing of such reports is an offence under the said Act. Whereas, MCA in September 2017, has identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of provisions of section 164(2) r /w 167(1)(a) of the Act and they were barred from accessing the online registry and a list of such directors was published on the website of MCA. With a view to giving an opportunity for the non-compliant, defaulting companies to rectify the default, the Central Government has introduced a Scheme namely "Condonation of Delay Scheme 2018" [CODS-2018]. Applicability of the Scheme 1. The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31.03.2018 2. This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/ whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme. 10 Quality is remembered long after the price is forgotten
Procedure of the scheme In the case of defaulting Companies whose names have not been removed from register of companies: i) The DINs of the concerned disqualified directors shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents. ii) The defaulting company shall file the overdue documents in the respective prescribed e-forms paying the statutory filing fee and additional fee payable as per section 403 of the Act. iii) The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-cods 2018 attached to this scheme along with a fee of Rs. 30,000/- (Rs. Thirty Thousand only) as prescribed under the Companies (Registration Offices and Fee) Rules, 2014 well before the last date of the scheme. iv) For Directors who fail to utilise this opportunity, their disqualification will be made final for a period of 5 years and other penalties as prescribed under Companies Act, 2013 will attract. v) In the event of defaulting companies whose names have been removed from the register of companies up to the date of this scheme, the Director's DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents. Forms which can be filed under the scheme: This scheme shall not apply to the filing of documents other than the following overdue documents: Form Number 208/MGT-7- Form for filing company having share capital. Form 21A/MGT-7- Particulars of Annual return Annual return by a for the company not having share capital. Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC-4(non-XBRL) - Forms for filing Balance Sheet/Financial Statement and profit and loss account. Form 66 - Form for submission of Compliance Certificate with the Registrar. Form 238/ADT-1- Form for intimation for Appointment of Auditors. Conclusion: The CODS, 2018 is the best opportunity for defaulting companies and directors to get immunity from Penal provisions and prosecutions under The Companies Act, 2013. The e-form CODS 2018 would be available from 20.02.2018 or an alternate date, which will be intimated by the ministry on www.mca.gov.in. The defaulting companies should complete the necessary procedural requirements and file overdue documents before filing e-cods FORM. 11 Without great quality, it doesn t matter what something costs
Monthly Article 2: Overview of Indian Economy in 2017 2017, the 70th year since Independence will be memorable in Indian history since the country has switched over to many significant changes in its federal system. Of course, the structural reform came accompanied with pain for trade and industry caught off-guard by the rigours of new compliance procedures. As a result, India has emerged as the fastest growing major economy in the world. Let us know what made the 2017 as most significant year for economy since Independence. 1. Introduction of the Goods and Service Tax (GST) Act: Overhauling of Indirect Tax System by the introduction of the Goods and Services Tax (GST) to replace multiple Central and State taxes was implemented throughout India, w.e.f., 1 st July, 2017 which has made a tremendous impact on the Indian Economy. Even amidst various turbulences faced by all the stakeholders including General public, GST was a great success for which the year 2017 will be remembered forever. 2. Merger of State Bank of India with its 5 Associate Banks: State Bank of India s mega merger with its 5 associate banks namely SBM, SBH, SBBJ, SBT & SBP w.e.f., 1 st April, 2017 was a remarkable change in the history of Indian Banking System which resulted in SBI becoming one of the banks among TOP 50 Large banks in the world. 3. Introduction of the Real Estate (Regulation & Development) Act (RERA): The Government of India enacted the Real Estate (Regulation and Development) Act, 2016 on 26th March 2016 and all its provisions came into effect, from May 1, 2017. The Real Estate (Regulation and Development) Act, 2016 (RERA), intends to protect the interests of home buyers and enhance transparency in the real estate sector. RERA has made a terrific impact on the Real Estate industry in 2017. 4. Second Female Defence Minister of India: Thirty-five years since India s defence ministry last saw a woman at its helm, Nirmala Sitharaman as the Union Minister in Sep 2017. Until then, the only woman to head India defence ministry was Indira Gandhi in 1975 & 1980-82. 12 It is Quality rather than Quantity that matters in business
5. Sensex & NIFTY reached highest ever in history: BSE s Sensex and NSE s NIFTY indices reached the highest ever value in the year 2017. BSE Sensex reached its highest value of 34,137.97 and NSE Nifty reached its highest value of 10,552.40 6. First time Union Budget was presented on 1 st Feb The Union Budget for Fiscal Year 2017-18 was presented on the first working day of February 2017, in a departure from the colonial practice of being presented on the last working day of February. 7. Railway Budget merged with Finance Budget The railway budget for Fiscal Year 2017-18 was merged with the Union Budget for the first time in February 2017, and thereby ending a 92-year-old British-era practice of presenting a separate budget for Railways. With the tremendous changes that happened in short span of one year, there lied a sense of confusion in understanding and digesting the rapid changes. The GDP of India, post implementation of GST came down to 5.7% during Q2 (Jul-Sep) but with the adaptable mind-set of Indians, in spite of some confusion there was a sense of acceptance of all the changes that happened. It was evidenced in form of increase of GDP to 6.3% in Q3 (Oct-Dec). It seemed there was a deep desire in whole country to witness that Change that was being postponed since many years. To conclude, 2017 will be remembered forever in the history of Indian Economy due to implementation of the GST. 13 The first purpose of any business is the Quality, Profit will come itself
Glimpses of the HVJ Events 2017 Glimpses of the HVJ/HVJ 2016 Glimpses of the AINO/HVJ 2 016 14 Professionalism means consistency of quality
We are encouraged by our readers and the complements received. In our endeavor to improve our quality we request you to give two minutes time to give feedback. write us at communique@ainoglobal.com Thanking You, HVJ & Team! HVJ & Associates No. 18/1, Jain Bhawan, Third Floor, Andree Road, Shanthinagar, Bangalore 560027 Tel. 080 41158620 7353444222 E-Mail : info@hvj.co.in Web : www.hvj.co.in Follow Us on 15 It s easier to explain the price once, than to apologize for quality forever