Sunday, October 26, 2014

DVAT extended date from 25/10/14 to 30/11/2014

DVAT Department has extended the last date of filing of online / hard copy of second quarter return in Form DVAT-16 , DVAT-17 and DVAT-48 for the year 2014-15, from 25/10/2014 to 10/11/2014. The dealers filing the returns through digital signature are not required to file hard copy of the return/Form DVAT-56.

ST-3 Due Date extended from 25th October to 14th November

CBEC vide Order No. 02/2014-ST dated 24th October, 2014 has extended the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014

Tuesday, October 21, 2014

New E-Form ADT-1 for Intimation to MCA for Appointment of Auditor

MCA has introduced new e Form ADT-1 for appointment of auditor for filing w.e.f 20th Oct 2014.  Earlier ADT -1 was to be filed as an attachment with GNL -2 a general form for informing MCA where no specific form issued.  Now MCA has issued E- Form ADT-1. It is to be filed independently  like 23B used to be filed earlier.
The Form ADT – 1 has some new features like  details of joint auditors, Number of financial year(s) to which appointment relates, whether the appointment of auditor is within the limits of twenty companies as specified in section 141(3)(g) of the Companies Act, 2013. Many of the columns are same of Form 23B applicable earlier for the same purpose.
Further following documents are mandatory required to be attached with the Form ADT – 1, Copy of the intimation letter sent by Company to the auditor, Copy of written consent given by auditor & Copy of resolution passed by the Company. ( All the attachment has already given in earlier article on this issue )
Only Specimen of letter intimation by company to their auditors will be uploaded very soon.

For the companies who have already filed ADT-1 as an attachment with GNL-2 need not file again and Keep the SRN No. in record as MCA has not approved the forms filed and may ask for resubmission of the E-form ADT-1 in lieu of GNL-2 already submitted under same SRN Number.

Saturday, October 18, 2014

Clarification on levy of service tax on activities related to inward remittances to beneficiaries in India from abroad

Service Tax Department has issued Circular No. 180/06/2014-ST dated 14th October, 2014 in suppression of Circular No. 163/14/2012-ST dated 10th July, 2012.
As per Circular No. 163/14/2012–ST dated 10.07.12 - There is no service tax per se on the  foreign exchange remitted  to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax as the person sending money and the company conducting the remittance  are both located outside India.
The foreign money transfer service operator (MTSO), conducting remittances to beneficiaries in India, have appointed Indian Banks/financial entities as their agents in India who provide agency /representation service to such MTSO for furtherance of their service to a beneficiary in India. The agents are paid a commission or fee by the MTSO for their services.
The entire sequence of transactions in remittances of money from overseas through the MTSO route is as under:
Step 1: Remitter R ( outside India ) approaches a  B ( Bank- MTSO Transfer Service Operator (MTSO) located outside India ) for remitting the money to a beneficiary in India                                                                                         ‘R’ Pays to  B’.

Step 2 ‘B’ avails the services of an IE ( Indian Entity/ Agent) for delivery of money to the UR - ultimate recipient of money in India                                 B pays to IE  
Step 3: IE’ may avail service of  SA ( Indian sub-agent )             IE’ Pays to SA’.

Step 4: ‘IE  or ‘SA’, delivers the money to ‘UR’ 

Now Clarifications was sought
- Whether such agents (referred in Step 2 above) would fall in the category of intermediary, and if so, whether service tax would be leviable on the commission/fee amount charged by such agents.
- Whether the services provided by sub agent (referred in step 3 & 4 above) are leviable to service tax and on certain other related issues.
 Circular No. 180/06/2014-ST dated 14th October, 2014 now clarifies as follows,-

S. No.
Whether service tax is payable on remittance received in India from abroad?
No service tax is payable per se on the amount of foreign currency remitted to India from overseas. As the remittance comprises money, it does not in itself constitute any service as per clause (44) of section 65B.  define service of the Finance Act 1994.
Whether the service of an agent or the representation service provided by an Indian entity/ bank to a foreign money transfer service operator (MTSO) in relation to money transfer falls in the category of intermediary service?
Yes. The Indian bank or other entity acting as an agent to MTSO in relation to money transfer, facilitates in the delivery of the remittance to the beneficiary in India. In performing this service, the Indian Bank/entity facilitates the provision of Money transfer Service by the MTSO to a beneficiary in India.  For their service, agent receives commission or fee. Hence, the agent falls in the category of intermediary as defined in rule 2(f) of the Place of Provision of Service Rules, 2012.

Whether service tax is leviable on the service provided, as mentioned in point 2 above, by an intermediary/agent located in India (in taxable territory) to MTSOs located outside India?
Service provided by an intermediary is covered by rule 9 (c) of the Place of Provision of Service Rules, 2012. As per this rule, the place of provision of service is the location of service provider. Hence, service provided by an agent, located in India (in taxable territory), to MTSO is liable to service tax.
The value of intermediary service provided by the agent to MTSO is the commission or fee or any similar amount, by whatever name called, received by it from MTSO and service tax is payable on such commission or fee.
Whether service tax would apply on the amount charged separately, if any, by the Indian bank/entity/agent/sub-agent from the person who receives remittance in the taxable territory, for the service provided by such Indian bank/entity/agent/sub-agent
Yes. As the service is provided by Indian bank/entity/agent/sub-agent to a person located in taxable territory, the Place of Provision is in the taxable territory. Therefore, service tax is payable on amount charged separately, if any.
Whether service tax would apply on the services provided by way of currency conversion by a bank /entity located in India (in the taxable territory) to the recipient of remittance in India?

Any activity of money changing comprises an independent taxable activity. Therefore, service tax applies on currency conversion in such cases in terms of the Service Tax (Determination of Value) Rules. Service provider has an option to pay service tax at prescribed rates in terms of Rule 6(7B) of the Service Tax Rules 1994.

Whether services provided by sub-agents to such Indian Bank/entity located in the taxable territory in relation to money transfer is leviable to service tax?
Sub-agents also fall in the category of intermediary. Therefore, service tax is payable on commission received by sub-agents from Indian bank/entity.

Wednesday, October 15, 2014

Company Law Settlement Scheme 2014 Date Extended upto 15.11.2014

In continuation to the Ministry’s  General Circular No. 34 dated 12 th Agust has issued General Circular No.40 dated 15th October 2014 to extend the due date of the Company Law Settlement Scheme (CLSS 2014) upto 15th November, 2014.

Wednesday, October 8, 2014

Auditor’s Appointment In Form ADT-1 Due Date 15.10.2014

Contributed by CA Surekha Ahuja
There is a provision in Company Law for filing of intimation to Registrar of Companies, Ministry of Corporate Affairs of appointment of statutory auditor in the Annual General Meeting by shareholders. This provision of filing intimation is an annual provision in Companies Act, 1956 and continued in Section 139 of Companies Act, 2013.
Companies Act, 2013, there are a few changes in

-       Procedure for filing of such Intimation.
-       Due date for filing of intimation,
-       The responsible person to file such intimation with MCA/ ROC. 

Appointment of Auditor in Companies Act, 2013

Every company shall, at the first Annual General Meeting, appoint an individual or a firm as an auditor to hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting. ( Section 139 of the Companies Act, 2013 )

Further it shall be duty of the Company to place the matter relating to such appointment for ratification by members at every Annual General Meeting. Before appointment, Auditor shall be liable to provide the written consent to the Company for such appointment, along with a certificate to the effect that the appointment and that appointment shall be in accordance with the prescribed conditions.


It is duty of the Company to file form for intimation of the appointment of Statutory Auditor in Form ADT.1 as attachment with E-form GLN.2 with MCA. The Company has to inform the auditor concerned of their appointment, and also file a notice of such appointment with the MCA within fifteen days of the meeting in which the auditor is appointed.  ( Companies Act 2013 )

 Since the last date for conducting the AGM for most companies was 30th September’2014 and the auditors would have been appointed in the AGM, therefore the notice of appointment of auditors is to be filed with the Registrar by the 15th October’2014.

As per Section 139 of the Act, read with Rule 5 of Companies (Audit and Auditors) Rules, 2014, the auditor who has already been auditor for five consecutive years or 10 years in case of firm (two terms of five consecutive years in case of firm) would be re-appointed for 5 years but the re-appointment term will be 3 years in the following cases :
a) Listed Companies or Unlisted Public Companies having paid up capital of Rs.10 Crores or more or
b) Private Companies having paid up capital of Rs. 20 Crores or more or
c) Companies having public borrowings from Banks, Public Financial Institutions or Public Deposits of Rs. 50 Crores or more.

The AGM resolution shall contain 2019 in case re-appointment is for 5 years and 2017 in case re-appointment is for 3 years.

Earlier under Companies Act, 1956, it was duty of the Auditor to file form 23B with MCA for an appointment as Statutory Auditor. 

 Intimation of appointment of First Auditor to MCA - Companies Act, 2013:

 Company is under an obligation to give notice of appointment to the MCA / Registrar in Form No.ADT.1 through E-form GLN.2 in case of appointment of auditors under section 139(1)  i.e other than first auditor.

Company is under no obligation to give notice of appointment of First Auditor to the MCA/ Registrar as the appointment of first auditors by the Board of directors of a company is as per section 139(6)




RESOLVED THAT pursuant to the provision of section 139 and other applicable provision, if any of the Companies Act, 2013 read with the underlying rules viz. Companies (Audit and auditors) Rules, 2014 as may be applicable the retiring auditors M/s.XYZ  Chartered Accountants having FRN --------/ Mem No.--------------, be re-appointed as statutory auditors of the company to hold office from the conclusion of this Meeting until the conclusion of the Annual General Meeting (AGM) of the company to be held in the year 2017/2019 subject to ratification of the appointment at every AGM at a remuneration (including term of payment) to be fixed by the board of Direction of the company, plus service tax and such other tax(es), as may be applicable & reimbursement of all out-of-pocket expenses in connection with the audit of the accounts of the company.”

For and on behalf of the Board
Place: New Delhi
Date: 30.09.2014                                                                   

Auditors Consent and Certificate
[Pursuant to the provisions of Section 139 of Chapter X of the Companies Act, 2013]

The Board of Directors,
REgd Office :

Dear Sir(s),

In connection with re-appointment of our firm / Individual Mr, X Chartered Accountant / M/s. XYZ Chartered Accountants  , as auditors of ABC Private Limited in accordance with the provisions of the Companies Act, 2013 and The Companies (Audit and Auditors) Rules, 2014 I the undersigned representing the Firm in the capacity of a sole proprietor/partner and the Firm hereby certify that:  

1.    We hereby give our consent to be appointed as Auditor of the Company u/s 139 of the Act.

2.    we are eligible to be re-appointed as auditors, and we have not incurred any disqualifications under the Act;

3.    we are not disqualified for appointment under the provisions of Chartered Accountants Act, 1949 and rules and regulations made there under;

4.    the proposed appointment is as per the terms provided under the Act;

5.    the proposed appointment is within the limits laid down by or under the authority of the Act;

6.    no orders have been issued and there are no proceedings pending against the firm or any other partner of the firm with respect to professional matters of conduct before the Institute of  Chartered Accountants  of India, any competent authority , or any court.

7.    we hereby declare that the appointment, if made shall be in accordance with the conditions as prescribed under Rule 4(1) of the Companies (Audit and Auditors) Rules, 2014 and as provided in section 141 of Companies Act 2013.

Thanking You,
Yours Faithfully
For XYZ Chartered Accountant
Chartered Accountants
Firm Registration Number:

Membership no. 99999

Place: Delhi

Word Format of ADT-1

[See rule 4(2) of the Companies (Audit and Auditors) Rules, 2014]
Notice of appointment of auditor by the company
1.(a) Corporate identity number (CIN) of the company     U51909DL2011PTC223725

(b) Global Location Number (GLN) of company

2. (a) Name of the company:                             ABC PRIVATE LIMITED  
(b) Address of the registered office or of the principal place of business in India of the company:                                                 23/7 Old Rajinder Nagar NEW DELHI, PIN-110060
(c) E-mail ID of the company                                
3. Date of meeting at which the auditor appointed 26.09.2014

4. Category of Auditor                                                Firm
5.(a) Income Tax PAN of Auditor or auditor’s firm       
(b) Name of the Auditor or Auditor’s firm                XYZ Chartered Accountants   
(c ) Auditor’s firm’s registration number                     
(d) Address of the Auditor or auditor’s firm                  
(e) City                                                                      New Delhi
(f) State                                                                     Delhi
(g) Pin code                                                              
(h) Email id of the auditor or auditor’s firm                 


I am authorised by the Board of Directors of the Company vide resolution no…………. dated…………… to sign this form and declare that all the requirements of Companies Act, 2013 (18 of 2013) and the rules made there under in respect of the subject matter of this form and matters incidental thereto have been complied with. I also declare that all the information given herein above is true, correct and complete including the attachments to this form and nothing material has been suppressed.

Designation (to be given) :                      Director

DIN of the person signing the form:

Sunday, October 5, 2014

Due Date Calendar for October,2014

Statutory Act
Applicable Form
Service Tax
Challan No.GAR-7
Last date for E- payment of Service Tax in case of companies for the month September, for the quarter for others.  
Central Excise
Challan No.GAR-7
Monthly-payment of Central Excise Duties for the previous month –For non SUI units
Income Tax
Challan No.ITNS-281/17
Payment of TDS/TCS deducted/collected in September
Income Tax
Form No.15G,15H, 27C
Submission of Forms received in Previous month to IT Commissioner
ER-1  & ER-2
Return for Non SSI assessees for June , Return for EOUs for Sep
Return by units paying duty > 1 crore (CENVAT + PLA) for Sep

Annual Return, Balance Sheet and Special Resolutions
Annual Return of the company, Balance Sheet, Special Resolutions and Appointment of Auditors to be filed if any not filed under CLSS-2014 Scheme
Deposit of DVAT TDS for Sep
Provident Fund
Electronic Challan Cum Return(ECR)
E-Payment of PF for Sep (Cheques to be cleared by 20th)
ESI Challan
Payment of ESI of September
D-VAT-20 & Central
Deposit of VAT & CST for September for Monthly Dealers
Annual Return, Balance Sheet and Special Resolutions
Annual Return of the company, Balance Sheet, Special Resolutions and Appointment of Auditors to be filed within 30days of AGM