Corporate Law Reporter - The Daily Journal

Compensatory Fines allowable as deduction under Income Tax

While Penalties have always been disallowed under the Income Tax Act, the recent judgment clarifies on allowability of compensatory fines paid to authorities. In a recent order, Income-tax Appellate Tribunal, (ITAT) has held that fines paid to RTO is an allowable expenditure under the Income-tax Act. According to the provisions of the Income-tax Act, if… Read More

Clarification Regarding Education cess under Service Tax

Circular No. 134 /3 / 2011 ST; F.No.354/42/2011-TRU; Since Education Cess is levied and collected as percentage of service tax, when and wherever service tax is NIL by virtue of exemption, Education Cess would also be NIL. [ CLR View: Ministry of Finance stating the Obvious...but when it comes to Revenue, nothing can be taken… Read More

ROCs to check for diversion of IPO funds

To check the misuse of funds raised by Companies via IPOs, the Ministry of Corporate Affairs has directed the Registrar of Companies (RoCs) to check for diversion of IPO funds while performing scrutiny of their annual accounts. MCA has asked ROCs to check for fund diversions by companies from the objectives stated in the prospectus with a… Read More

Practicing CA and CS to act responsibly or face penal action from MCA

No 17/102/2011 CL-V Circular 14/2011; Ministry of Corporate Affairs In addition to the penal actions against the companies and their officers in default for furnishing incorrect or false information in the documents as provided under the Companies Act, 1956, action would also be taken on receipt of any complaint against practicing professionals for alleged wrong submissions of eForms… Read More

Clarification regarding Easy Exit Scheme

General Circular No:12/2011 dated 7th April, 2011 The Ministry of Corporate Affairs has notified the revised simplified procedure for dealing with the applications received under easy exit scheme issued for striking off the name of the Company under Section 560 of the Companies Act 1956 vide its general circular no 12/2011 dated 7th April 2011… Read More

PAN / Passport mandatory to obtain DIN

General Circular No.11/2011, New Delhi Dated 07.04.2011 Income Tax Permanent Account Number (PAN) will be mandatory for DIN in case of all Indian Nationals and Passport in case of all Foreign Nationals. All existing DIN holders who have not furnished their PAN earlier at the time of obtaining DIN, are required to furnish their PAN by filing DIN-4… Read More

Director™s Relatives (Office or Place of Profit) Amendment Rules, 2011

G.S.R. 303(E) : NOTIFICATION [F.NO. 17/75/2011-C.L.V], DATED 6-4-2011 In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sub-section (1B) of section 314 of the Companies Act, 1956, the Central Government hereby makes the following rules to amend the Director™s Relatives (Office or Place of Profit) Rules, 2003, namely:-… Read More

Jurisdictional Limits of Regional Directors Redefined

G.S.R. 304(E) NOTIFICATION [F.NO.5/18/2005-C.L.V], DATED 6-4-2011 Jurisdictional Limits of Regional Directors Redefined by amendment in Companies Regulations, 1956 In exercise of the Powers conferred by sub-sections (1), (2), (5) and (8) of section 25 and sub-section (2) of section 609 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following… Read More

Limits enhanced for disclosure of salary in Director’s Report in 217(2A) statement

G.S.R. 289 (E): The Ministry of Corporate Affairs has vide notification dated 31st March 2011 enhanced the limits for the purpose of disclosure of particulars of employees in Directors report as requisite under Section 217 (2A) read with Companies (Particulars of Employees) Rules, 1975 from the existing limit of Rs. 24 lakh/ year/ Rs. 2 lakh… Read More

Revised Schedule VI applicable from FY 2011-12 (Download Revised Form)

NOTIFICATION [F. NO. 2/6/2008-C.L-V], DATED 30-3-2011 G.S.R (E)- In exercise of the powers conferred by clause(a) of sub-section(1) of section 642 read with sub-section(1) of section 210A and sub-section (3C) of section 211 of the Companies Act,1956, (1 of 1956), the Central Government hereby makes the following amendment to paragraph 2 of the notification… Read More

DIN (Director Identification Number) Amendment Rules, 2011

Now there is no need to file physical documents with DIN forms. DIN 1 eforms signed by practicing professionals shall be immediately approved and DIN shall be allotted. In all other cases, provisional DIN will be allotted first. In case of false information submitted by professional or the application himself, prosecution shall be initiated. Changes shall be notified in… Read More

Exemption u/s 211 for reduced disclosures to certain class of Companies

NOTIFICATION NO. SO 301(E), DATED 8-2-2011 The below notification seeks to exempt Companies engaged in Defence equipments, EOU's, Shipping companies, Airlines, Hotels ( including Restaurants), manufacturing companies and trading companies from the disclosure requirements specified in para II of Schedule VI. This notification has been issued to reduce the number of applications filed by such companies to… Read More

Exemption u/s 211 to Public Financial Institutions for reduced disclosures

NOTIFICATION NO. SO 300(E), DATED 8-2-2011 In exercise of the powers conferred by sub-section (3) of section 211 of the Companies Act, 1956 (1 of 1956), the Central Government, being of the opinion that it is necessary to grant exemption in the public interest, hereby exempts Public Financial Institutions as specified under section 4A of… Read More