August 31, 2012
- Constitution of a Committee for Reforming the Regulatory Environment for doing Business in India – Considering the report of the World Bank and the International Finance Corporation, entitled “Doing Business 2012: Doing business in a very Transparent World” in which India has been ranked at a low of 132 amongst a sample of 183 Countries, a need to conduct an in-depth study into the entire gamut of regulatory framework has been felt. MCA has vide General_Circular26/2012 dated 23rd August, 2012 intimated that a Committee is being constituted under the chairmanship of former SEBI Chairman, Mr. Damodaran to conduct this study and prepare a detailed report for improving the climate of business in India within a period of six months.
- Gazette notification GSR 534(E) dated 14/07/2011-clarification regarding : MCA Vide Notification GSR 534(E) dated 16th August, 2012 provided the clarification on the notification G.S.R.534(E) dated 14th July, 2011 ( Amendment in Schedule XIII of the Companies Act,1956) that any employee of a Company holding shares of the company upto 0.5% of the paid up shares capital thereof under any scheme formulated for allotment of shares to such employees including under Employee’s Stock Option Plan or by way of qualification shares are also covered under the category of persons not having any interest in the capital of the company in terms of the Ministry’s notification G.S.R. 534(E) dated 14th July, 2011
- Clarification on Para 46A of notification number G.S.R. 914(E) dated 29.12.2011 on Accounting Standard 11 relating to "The effects of Changes in Foreign Exchange Rates: MCA has in response to the several representation received from industry associations stating that para 6 of Accounting Standard-11 and Para 4(e) of AS-16 are posing problems in proper implementation of Para 46A of notification G.S.R. 913(E) dated 29.12.2011 issued a General Circular No. 25/2012 dated 9th August, 2012. It was clarified that Para 6 of Accounting Standard-11 and Para 4(e) of the Accounting Standard-16 shall not apply to a company which is applying clause 46-A of Accounting Standard-11.
- Applicability of Service Tax on commission payable to Non-Whole Time Directors of a company under Section 309(4) of the Companies act, 1956.: As per the Finance Act, 2012, the sitting fees/commission payable to Non-whole time Directors of the company is liable to service tax. MCA Vide General Circular No. 24/2012 dated 9th August, 2012 has clarified that any increase in the remuneration of Non -Whole Time Director(s) of a company solely on account of payment of service tax on commission payable to them by the company shall not require approval of Central Government under section 309 and 310 of the companies Act even if it exceeds the limits 1% or 3% of the profit [ u/s 309 (4)] of the company, as the case may be, in the financial year 2012-2013.
- Amendment to the Companies (Fees on Applications) Rules, 1999 : MCA Vide General Notification GSR 617(E) dated 7th August , 2012 has informed that in the notification issued by Ministry of Law, Justice and Company Affairs (Department of Company Affairs) bearing number G.S.R. 501(E), dated the 6th July, 1999 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 6th July, 1999, after sub-rule (3), and Table-III, the following sub-rule (4) and Table-IV shall be inserted, namely:- “(4) In case of delays in filing applications with the Central Government under sub-section (2) of section 233B of the said Act, the fee as specified in the Table- IV (please refer notification GSR 617(E) shall be applicable:
- Product Group Classification : MCA Vide Notification SO 1747(E) dated 7th August, 2012 has informed that the Central Government has in pursuance to powers conferred to it under clause (b) of sub-section (1) of section 642 read with section 610B of the Companies Act, 1956 (1 of 1956), constituted the Product or Activity Groups. All companies shall use the Product or Activity Groups as given in the Annexure(as mentioned in the notification), wherever it appears, in the Cost Audit Report and in the Compliance Report to be filed with the Central Government in compliance with the rules as in the notification
- Company Law Settlement Scheme, (Jammu & Kashmir) 2012.: MCA Vide General Circular No. 23/2012 dated 6th August, 2012 has informed that in order to give an opportunity to the defaulting companies in the state of Jammu & Kashmir and to enable them to make their default good by filing such belated documents and to become a regular compliant in future, the Ministry, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has decided to introduce a Special Scheme namely, “Company Law Settlement Scheme (Jammu & Kashmir), 2012” condoning the delay in filing documents with the Registrar, granting immunity from prosecution and charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act, 1956 and the rules made there under.