Due date Calendar for Statutory Obligations for Feb,2016

Date	Statutory Act	Applicable Form	Obligation
05/02/2016	Service Tax	Challan No.GAR-7	Payment of Service Tax for month ending Jan,16 for the month ending Jan,16 by companies & partnership firms liable for payment of Service tax on monthly basis
05/02/2016	DVAT	Form 16 & 1/Form 17 & Ack	By Quarterly Dealers for the Quarter ended on 31.12.2015 ( extended Due Date )
07/02/2016	Income Tax	Challan 281	Due date for deposit of Tax deducted/collected for the month of January, 2016​
10/02/2016	Excise	ER-1	Return for Non SSI assessees for Jan,2016.
10/02/2016	Excise	ER-6	Return by units paying duty >1 crore (CENVAT +PLA) for Jan,2016
10/02/2016	Excise	ER-2	Return for EOUs for Jan,2016.
15/02/2016	DVAT	DVAT 20	Deposit of DVAT TDS for Jan,2016
15/02/2016	Provident Fund	E Challan Cum Return	E-Payment of PF for Jan,2016
21/02/2016	ESI	ESI Challan	Payment of ESI for Jan,2016.
21/02/2016	DVAT	DVAT 20 & Central	Deposit of VAT and CST for December (tax period being a month),
22/02/2016	Income Tax	Form 16	Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of January, 2016​
22/02/2016	DVAT	DVAT 43	Issue of DVAT Certificate for deduction made in Jan,2016.
25/02/2016	DVAT	Form 16 and CST 1	E Return of VAT for month ended Jan,2016.
28/02/2016	DVAT	Form 16 & 1/Form 17 & Ack.	Physical Return of VAT and CST for Jan,2016 month( for assesses tax period being a month)
29/02/2016	DVAT	DP-1.	DP-1 Reconciliation return for Fin Year 14-15 by All Registered Dealers to file online before 29.02.16 ( Extended Due Date )

MCA clarifies on 12.01.2016 the provisions of Corporate Social Responsibility

MCA has issued a Circular No.01/2016 dated January 12, 2016 on Frequently Asked Questions with regard to Corporate Social Responsibility under section 135 of the Companies Act, 2013 .

Sec 135 of the companies Act 2013,Schedule VII of the Act and Companies CSR policy Rules,2014 read with General Circular dated 18.06.2014 issued by the MCA provide the broad contour within which eligible companies are required  to  formulate their CSR policies including activities undertaken and implement the same in the right earnest.

CSR Provisions of the companies 2013, is applicable to the companies  registered under the companies Act and satisfies any of the  following condition during the  financial year.(Financial year means as referred under sub section (1) of section 135 of the Act ,in any of the 3 preceding financial year).

- Net Worth of Company is Five hundred Crore  or more.

- Turnover of company is one Thousand Crore or more.

- Net profit of company is Five Crore or more.

Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign company in India.

Note - I) Net profit of the company taken will be the profit before Tax(PBT).

II) Every qualifying company requires spending of at least 2% of its average net profit for the immediately preceding 3 financial years on CSR activities.

III) An excess amount  spent in excess of 2% the average net profit           of the thre preceding years by the company cannot be carried forwarded to the subsequent years and adjusted against that years CSR expenditure.

 Iv) Further, the qualifying company will be required to constitute a committee (CSR Committee) of the Board of Directors consisting  of 3   or more directors.

Expenditure spent by the company towards CSR  shall not deemed to be an expenditure incurred by the assessee for the purpose of business or profession .So that amount of CSR cannot be claimed as business expenditure by the company.

No specific tax exemption can be availed  for the expenditure made  for the purpose of CSR.As per the finance Act,2014 also clarifies that expenditure on CSR does not form part of business expenditure. While no specific tax exemption has been extended to expenditure incurred on CSR, spending on several activities like contributions to Prime Minister’s Relief Fund, Scientific Research, Rural development projects, skill development projects, agricultural extension projects, etc. which find place in Schedule VII, already enjoy exemptions under different sections of the Income Tax Act, 1961.

The activities that can be done by the company to achieve its CSR obligations include :    

Eradicating extreme hunger and poverty.

 Promotion of education, promoting gender equality and empowering women, reducing child mortality and improving maternal health.

 Combating human immunodeficiency virus, acquired, immune deficiency syndrome, malaria and other diseases.

Ensuring environmental sustainability, employment enhancing vocational skills, social business projects, contribution to the Prime Minister's National Relief.

 Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief.

Funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters as may be prescribed.

Otherwise, The activities performed by the company only for the health of the company is not regarded as Expenditure towards the CSR. The expenditure on following activities will not be considered as CSR expenditure.

i)The CSR programs or activities that benefit only to the employees of the companies and their families.

ii)Activities such as Awards/charitable contribution/advertisement /Sponsorships of TV program.

iii)Contribution made directly to indirectly to the political parties.

iv)The project or program or activities undertaken outside India.

v)Expenses made by the company for the fulfillment of Statutory Liabilities(Labor Laws, Land Acquisition Act 2013,).

Major Points to remember for CSR Compliance:

The company can also make the annual report of CSR activities in which they  mention the average net profit for the 3 financial years and also prescribed CSR expenditure but if the company is unable to spend the minimum required expenditure the company has to give the reasons in the Board Report for non-compliance so that there are no penal provisions are attracted by it.

A contribution of money to a trust /Society/section 8 companies by a company be treated as CSR expenditure of company.

(a) The Trust/Society /section-8 company is created exclusively for the undertaking CSR activities.

(b) Whether the corpus is created exclusively for a purpose directly related a subject covered in Schedule VII of the Act.

Government has no role to play in monitoring implementation of CSR by companies. The main spirit of the law is not monitor but to generate conducive environment for enabling the corporate to conduct themselves in socially responsible manner.

The holding or subsidiary of the company  does not have to comply with section 135(1) unless the holding or subsidiary itself fulfils  the criteria.

The Involvement and Contribution  of employees in CSR activities of the company will no doubt generate interest /pride in CSR work and promote transformation from corporate social responsibility as an obligation to socially  responsible corporate in all aspects of their functioning .Therefore, The company will encouraged to involve their employees in CSR activities.

The any money spent by company in kind  Will not be treated as CSR expenditure. It means the company have to spend in cash.

The provision of this scheme is indeed to involve the corporate in discharging their social responsibility with their innovative ideas and management skills and with greater efficiency and better outcomes .Therefore, CSR should not be interpreted as a source of financing the resources gap in Government  Scheme . Use of corporate innovations and management skills in the delivery of public goods is at the core of CSR Implementation by the companies .CSR projects should have a larger multiplier

Lastly, CSR is based on the ideology of give and take. Companies take resources in the form of raw material, human resources etc  from the society and the companies are giving something back to the society. This concept says that 98% of the profit will be distributed to the shareholders where as 2% will be distributed for the health of the company. So that, Society will become a stake holder of the company.

The board of directors of the company after taking the recommendation of CSR committee approve their CSR policy for the company  will have to be displayed in website of the company.

 Consequently, CSR is an appropriation of profit rather than expenses. The MCA has clarified the doubt regarding the corporate social responsibility. Hence, Now that things have been clarified, one can refer the same and proceed accordingly.

Further amendment has been done by MCA by issue of FAQs vide General Circular No.01/2016, The following changes are presented in tabular form.

S.N.	As per old Rules	As per New Rules
1	While determining the eligibility for qualifying for CSR consider 3 preceding financial year.	While determining the eligibility for qualifying for CSR, consider preceding financial year.
3.	The companies was required to have independent directors to constitute a CSR committee.	The requirement for such companies to have independent directors to be removed.
3..	Earlier it was provided that a company even if ceases to be eligible for CSR to undertake it for a minimum of 3 years	This to be amended so that once a company ceases to be eligible it need not spend on CSR.

Contributed by Mr Roshan Paudel ( CA Finaist )

MCA amends the Company Incorporation Rules & establishes CRC on 22.01.2016

The Central Government has established a Central Registration Centre (CRC) having territorial jurisdiction all over India, for discharging or carrying out the function of processing and disposal of applications for reservation of names under the provisions of the said Act.

The CRC shall function under the administrative control of Registrar of Companies, Delhi (ROC Delhi), who shall act as the Registrar of the CRC until a separate Registrar is appointed to the CRC.

The CRC shall process applications for reservation of name i.e., e-Form No. INC-1 filed along with the prescribed fee. The CRC shall function under the administrative control of Registrar of Companies, Delhi (ROC Delhi), who shall act as the Registrar of the CRC until a separate Registrar is appointed to the CRC.  Processing and approval of name or names proposed in e-Form No. INC-29 shall continue to be done by the respective Registrar of Companies having jurisdiction over incorporation of companies under the Companies Act, 2013.

Further, in order to facilitate the incorporation of companies, MCA has amended the Companies (Incorporation) Rules. Both the circular and the amended rules shall be effective from January 26, 2015.

The Companies Incorporation Amendment Rules, 2016 effective from 26.01.2016 provide a lot of incentive to the companies. The major amendmentsare given as under:              

S.N.	As per Old Rules	As per the new Rules
1	The company’s namewas required to be on the same line with the principal objects of the company, if the name was indicative of an object.	The name of the company need not be in the same line with the principal objects of the company even if the name of the company is indicative of an object.
2	Company names that are vague or an abbreviation (in short form)of a name which does not provide any significant meaning were not allowed. For Eg.23K Limited.	Sub-clause(x)ofclause(b)has been omitted and now,company names in abbreviated form or having no meaning or significance will be allowed.
3	Company name that intend or could produce a misleading impression regarding the scope or scale of its activities would not be allowed.	Sub-clause (xvii) of clause (b) has been omitted. Hence, company names that are not in line with its scope or scale of activities would be allowed
4.	Company wasrequiredto change their name if the company starts the activities which   are not reflected in its names within the period of six months from thechange of activities.	Company can change its activity and continue to operate with the old name, even if the activities of the company are not in line with the name of the company.
5.	If a key word of the company name contains the name of a person other than the name of the promoters or their close blood relatives, then a NOC was required for such purpose.	NOC is not required from any person for using the name of a person in a company name, even if that person is not a promoter or close blood relative.
6.	Up to two times resubmission was allowed for the correction of any mistake in the incorporation application.	Now, The resubmission will be allowed for three times for the correction of mistake in the incorporation applicationwithin a total period of Thirty days from first submission
7.	An application for the reservation of a name shall be made in Form No. INC.1 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014	An application for the reservation of a name shall be made in Form No. INC-I along  with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 which may be approved or rejected, as the case may be, by the Registrar, Central Registration Centre (CRC)  (CRC is separate unit for facilitating incorporation process and for the approval of  incorporation applications. )

Contributed by Roshan Paudel ( CA Finalist )

DVAT extends last date of return of III Quarter till 05.02.2016

DVAT  extended the last date of filing of online/hard copy of third quarter return for the year 2015-16, in Form DVAT-16, 'DVAT-17 and DVAT-48 along with required annexure/enclosures to 05.02.2016 .

Monthly Statutory Calendar for January,2016

Date	Statutory Act	Applicable Form	Obligation
06/01/2016	Service Tax	Challan No.GAR-7	Last date for payment of Service Tax in case of companies for the month  Dec,2016 and for Individuals & Firms for the quarter ended on 31.12.2015
06/01/2016	Central Excise	Challan No.GAR-7	Monthly-payment of Central Excise Duties for the Dec,2015.
07/01/2016	Income Tax	Challan No.281/17	Payment of TDS/TCS deducted/collected in December, 2015
07/01/2016	Income Tax	Form No.15G,15H, 27C	Submission of Forms received in Nov. to IT Commissioner
10/01/2016	Excise	ER-1 & ER-2	Return for Non SSI assesses, EOUs for Dec,2015
10/01/2016	Excise	ER-6	Return by units paying duty > 1 crore (CENVAT + PLA) for Dec,2015
15/01/2016	D-VAT	DVAT-20	Deposit of DVAT TDS for December,2015
15/01/2016	Provident Fund	Electronic Challan Cum Return(ECR)	E-Payment of PF for December,2015
15/01/2016	Income Tax	TDS Returns in 26Q,24Q and 27EQ	Filing of TDS d TCS Returns for the Quarter ended on 31.12.2015
15/01/2016	D-VAT	Form-9	Form-9 by Central Sales Dealers for Fin Year 14-15 Extended due date
21/01/2016	ESI	ESI Challan	Payment of ESI of December,2015
21/01/2016	D-VAT	D-VAT-20 & Central	Deposit of VAT & CST for (monthly dealers for the month of November)
25/01/2016	D-VAT	Form 16 and CST 1	E- Return of VAT for Dec,2015 for Monthly Dealers & for Quarter ended on 31.12.15 for others
28/01/2016	D-VAT	DVAT-16/Form-1 & Ack	Physical return of VAT & CST for Dec,15 for Monthly Dealers and for the Quarter ended on 31.12.15 for Others.
31/01/2016	D-VAT	DP-1	E Filing of DP-1 for all Registered  Dealers  Extended due date