S.noForms Allicability and PurposeDue DateRemarksPenalty and Late Fees
1E-form – INC-22A (Active Company Tagging Identities and Verification)Every company incorporated on or before 31st of  December, 2017 for filing particulars of the company and registered office with MCAOn or before 25th April, 2019(Notification dt. 21st February, 2019 & applicable w.e.f. 25th of February, 2019)   Form available on MCA portal for filing purposeRs. 10,000/-
2Initial MSME-1To be filed by specified companies* for furnishing  information with the registrar in respect of outstanding payments to Micro or Small Enterprises.Within 30 days from the date of availability of form on MCA portal (Notification dt. 22nd January, 2019) Form is not available for filing purpose on MCA Portal
3Half yearly MSME returnTo be filed by specified companies* for furnishing  information with the registrar in respect of outstanding payments to Micro or Small Enterprises during the half yearFor April to September – by 31st of October AND For October to March – by 30th of April (Notification dt. 22nd January, 2019)  Form is not available for filing purpose on MCA Portal
4One time DPT-3Every Company other than Government company for disclosure of details of outstanding money or loan received by company but not considered as depositsOn or before 22nd April, 2019Within 90 days from the date of notification issued. (Notification dt. 22nd January, 2019)   Updated DPT-3 not available for filing on MCA PortalAdditional fees
5DPT-3 YearlyEvery Company other than Government company for one time disclosure of details of outstanding money or loan received by companyOn or before 30th June from the end of  F.Y.Updated DPT-3 not available for filing on MCA PortalAdditional fees
6DIR-3 KYCEvery director to whom DIN has been allotted for updating directors database with MCAOn or before 30th April, 2019Within 30 days from the end of 31st March, 2019Rs. 5,000/-
7BEN-1A person having Significant beneficial owner shall file a declaration to the reporting companyOn or before 8th of May, 2019 i.e. within 90 days from the date of notification (Notification dt. 08th February, 2019)
8BEN-2Every reporting company shall file return of significant beneficial ownersWithin 30 days from the date of receipt of declaration in BEN-1(Notification dt. 08th February, 2019)Form is not available for filing purpose on MCA Portal
9E-form – INC-20AFor making declaration and obtaining certificate of commencement of businessWithin 180 days from the date of incorporation of companyApplicable w.e.f. 02nd of November, 2018Additional fees

CA Pankaj Kumar Mishra

9899407778

  1. Initial MSME 1 : within 30 days from date of availability of form on MCA portal
  2. One time DPT 3 : within 90days from date of notification i.e 20th April 2019
  3. E form Active ( INC 22A) : on or before 25the April 2019
  4. DIR 3 KYC : on or before 30th April 2019
  5. MSME 1 (1st half) : on or before 30th April 2019
  6. Annual DPT 3 : on or before 30th June 2019
  7. Annual Filling AOC 4: on or before 30th October 2019
  8. MSME 1 (2nd half) : on or before 30th October 2019
  9. Annual Return MGT 7: on or before 29th November 2019

Thanks & Regards

CA Pankaj Kumar Mishra

9899407778

URGENT(1)

Every company incorporated on or before the 31st December, 2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.04.2019.Provided that any company which has not filed its due financial statements under section 137 or due annual returns under section 92 or both with the Registrar shall be restricted from filing e-Form-ACTIVE, unless such company is under management dispute and the Registrar has recorded the same on the register:Provided further that companies which have been struck off or are under process of striking off or under liquidation or amalgamated or dissolved, as recorded in the register, shall not be required to file e Form ACTIVE:Provided also that in case a company does not intimate the said particulars, the Company shall be marked as “ACTIVE-non-compliant” on or after 26th April, 2019 and shall be liable for action under sub-section (9) of section 12 of the Act:Provided also that no request for recording the following event based information or changes shall be accepted by the Registrar from such companies marked as “ACTIVE non compliant”. Unless ” e-Form ACTIVE” is filed –(i) SH-07 (Change in Authorized Capital);(ii) PAS-03 (Change in Paid-up Capital);(iii)DIR- 12 (Changes in Director except cessation);(iv) INC-22 (Change in Registered Office);(v) INC-28 (Amalgamation, de-merger)(2) Where a company files “e-Form ACTIVE”, on or after 26th April’ 2019, the company shall be marked as “ACTIVE Compliant”, on payment of fee of TEN THOUSAND RUPEES”.

Thanks & Regards

CA Pankaj Kumar Mishra

9899407778

  • The Finance Minister presented the Interim Union Budget 2019 1st Feb as the general elections are scheduled later this year. The Interim Union Budget 2019 aims to provide benefits to the middle-class taxpayers especially salary earners, pensioners, and senior citizens. Key tax and regulatory proposals of the Interim Union Budget 2019 have been summarised herein under:
  • The end-date for obtaining approval from the competent authority to claim the profit-linked deduction by taxpayers engaged in the business of developing and building affordable housing projects extended from 31 March 2019 to 31 March 2020.
  • The threshold in a financial year for not deducting tax at source from payment of rent increased from INR180,000 to INR240,000.
  • The threshold in a financial year for not deducting tax at source on interest income from deposits with a banking company or co-operative society engaged in banking business or post- office increased from INR 10,000 to INR 40,000
  • The eligible rebate from income-tax payable enhanced up to INR 12,500 (currently up to INR 2,500) for resident individuals whose total income does not exceed INR 500,000 (currently up to INR 350,000).
  • The standard deduction in a financial year from salary income enhanced to INR50,000 (currently INR40,000).
  • The second Self Occupied Property (SOP) will not be subject to tax on a notional rent basis. Further, the aggregate deduction for interest on housing loan for both such SOPs capped at INR200,000.
  • The income tax exemption on Long Term Capital Gain (LTCG) from the sale of a residential house will be available even if re-invested in two house properties in India on a once in a lifetime basis provided such LTCG do not exceed INR20,000,000.
  • The period for which the Annual Value of house property held as stock in trade and not let out which is considered as NIL extended to two years from the end of the financial year of obtaining the completion certificate (currently this period is one year from obtaining such certificate).

CA Pankaj Kumar Mishra

Ineligible categories under MEIS

i.Supplies made from DTA units to SEZ units.

ii.Export of imported goods covered under paragraph 2.46 of FTP;

iii.Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India;

  1. Deemed Exports;

v.SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;

vi.Export products which are subject to minimum export price or export duty

vii.Export made by units in FTWZ

Sl. No. Chapters Products under the following chapters are not eligible for incentive under MEIS
1 Chapter-01 Live animals
2 Chapter-02 Meat and edible meat offal
3 Chapter-10 Cereals
4 Chapter-24 Tobacco and manufactured tobacco substitutes
5 Chapter-25 Salt; sulphur; earths and stone; plastering materials, lime and cement
6 Chapter-26 Ores, slag and ash
7 Chapter-27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes
8 Chapter-31 Fertilizers
9 Chapter-34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, “dental waxes” and dental preparations with a basis of plaster
10 Chapter-43 Furskins and artificial fur; manufactures thereof
11 Chapter-47 Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard
12 Chapter-77 (reserved for possible future use)

Export of goods through courier or foreign post offices using e-Commerce under MEIS:

Exports of goods through courier or foreign post office using e commerce, as notified in Appendix 3C,

– of FOB value up to Rs. 25000 per consignment shall be entitled for rewards under MEIS.

– of FOB value more than Rs 25000 per consignment then MEIS reward would be limited to FOB value of Rs.25000 only.

             (Such goods can be exported in manual mode through Foreign Post Offices at New Delhi, Mumbai and Chennai. )

Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20):-

  1. What is the MEIS scheme?

    Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. (The other scheme is SEIS, Service Exports from India Scheme).

    The Government of India has brought in the Merchandise Exports Incentive Scheme (MEIS), replacing five other similar incentive schemes present in the earlier Foreign Trade Policy 2009-14. The schemes that have been replaced by the MEIS scheme include:

    • Focus Product Scheme (FPS)
    • Focus Market Scheme (FMS)
    • Market Linked Focus Product Scheme (MLFPS)
    • Agri. Infrastructure incentive scheme
    • Vishesh Krishi Gramin Upaj Yojna (VKGUY)

    As per the present FTP, the MEIS scheme does not aim to merely replace these five schemes but also aims to rationalize the incentives and enlarges their scopes by removing various restrictions.

  2. The Objective of the MEIS Scheme

    To offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market.

  3. About the Scheme

    With the aim in making India’s products more competitive in the global markets, the scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties. The incentive is paid as percentage of the realized FOB value (in free foreign exchange) for notified goods going to notified markets. To determine the quantity of incentive, the countries have been segregated into three groups. Incentives on export of each product at 8-digit level (ITC HS codes), depend on the group in which its destination country belong.

    There are essentially three country groups. Group A has India’s traditional destinations such as the EU countries and USA. Group B has the maximum number of countries and covers almost all of India’s major export destinations globally. It is worth mentioning here that Group B has the highest quantum of incentive. Group C on the other hand has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, some EU and African countries.

  4. Revision of MEIS scheme

    The first schedule of the MEIS consisting of the definition of the country groups and the incentives on the 8-digit product lines was published along with the Foreign Trade Policy 2015-20 in April, 2015. However, after repeated representations from various industry associations and export promotion councils including us on the inadequacy of the incentives, the DGFT came out with a new schedule vide Public Notice No. 06 /2015-2020 published on 4th May, 2016. While the country groups have remained same in the new schedule, there has been a re-orientation of the incentive rates and in general the incentive basket has broadened. We have studied both the earlier schedule and the new one. The key changes include

    • Additions of some product lines (at 8 digits) to the list of beneficiaries under MEIS. For instance, products coming in the category of the medical and scientific instruments have been included in the MEIS schedule and incentives have been given for all three groups.
    • Amendment in the incentive rates for some product lines already included in the schedule. Here the most important change has been the grant of incentives to Group A countries for some product lines. This has obviously contributed towards expansion of the incentive market and has addressed one of our concerns

Conclusions with Brief Note on MEIS:-

Objective

To offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.

Entitlement under MEIS

Exports of notified goods/products with ITC[HS] code, to notified markets as listed, shall be rewarded under MEIS ( @ 2 % or 3%,4%, 5% or 7% as applicable). (Appendix 3B- listed goods market and rates).

  Basis of Calculation of Rewards

The basis of calculation of reward would be on realized FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified.

Incentive or rewards given under this scheme may vary from product to product and from Country to Country. The Country/Market for which incentive are allowed are divided into three category.

 

    Category A    Category B  Category C
Traditional Markets (34)

•European Union

•USA

•Canada

Emerging & Focus Markets(140)

•Africa

•Latin America & Mexico

•CIS Countries

•Turkey ,western Asian countries

•ASEAN countries

•Japan, South Korea,China, Taiwan

Other Markets (65)

Export Promotion Capital Goods (EPCG) scheme

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue date.
EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers. The Scheme also covers a service provider who is designated / certified as a Common Service Provider (CSP).

EPCG authorization holder can export either directly or through third party (s). Export proceeds are to be realized in freely convertible currency except for deemed exports. Import of capital goods imported under the EPCG scheme shall be subject to Actual User condition till export obligation is completed.

Export Obligation under EPCG scheme is required to be fulfilled (by Exporter) by export of goods manufactured/services rendered by the applicant.

There are two types of export obligation that are mandatory.

First, Annual Average in which export obligation is over and above, the average level of exports achieved by the authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any. Such average would be the arithmetic mean of export performance in the last three years for the same and similar products.

Secondly, Specific Average which is 6 times the duty saved amount in which the Authorization holder shall also fulfill a minimum of 50% export obligation in each block of years – the first block being of 4 years and the second block is of 2 years.

Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG.

EPCG Authorization holder may also source capital goods from a domestic  manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under FTP. EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization. Import of
second hand capital goods is not permitted under the EPCG scheme.

To incentivize fast track companies to accelerate exports, there is a provision for early redemption and in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified , remaining
export obligation shall be condoned.

Authorization holder is required to submit to RA concerned by 30th April of every year, report on fulfillment of export obligation.

The scheme allows one or more requests for grant of extension in export obligation period, on payment of composition fee equal to 2% of proportionate duty saved.

amount on unfulfilled export obligation or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be, at the choice of exporter, for each year of extension sought.

Such first extension in EO period can be for a maximum period of 2 years.

Extension in EO period beyond two years’ period may be considered, for a further extension upto 2 years with a condition that 50% of duty payable in proportion to the  unfulfilled export obligation is paid by authorization holder to Custom authorities before an endorsement of extension is made on EPCG authorization by RA concerned. In such cases, no composition fee is to be paid or additional EO is to be imposed. In case the firm is still not able to complete the export obligation, duty already deposited will be deducted from total duty plus interest to be paid for EO default.

In case, EPCG authorization holder fails to fulfil prescribed export obligation, he shall pay duties of Customs plus interest as prescribed by Customs authority. This facility can also be availed by EPCG authorization holder to exit at his option.

The EPCG Scheme provides for in addition, a specific EO of 75% of normal Export Obligation for export of Green Technology Products. The scheme also provides for Post Export EPCG duty credit scrip(s) which are available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt
for this scheme.

Further, for units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Jammu &Kashmir, specific EO shall be 25% of the EO.

Thanks

CA Pankaj Kumar Mishra

FCA, M-COM, B-COM, ISC( Mathematics)

The Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards (IND AS)) Rules 2015, which stipulates the adoption and applicability of IND AS in a phased manner beginning from the Accounting period 2016-17 and subsequently, issued Amendment Rules 2016 to amend the 2015 rules.

Phase of adoption

MCA has notified phase-wise convergence to IND AS from current accounting standards. IND AS shall be adopted by specific classes of companies based on their Net worth and listing status. Let’s see the each of the phases in detail below:

Phase I

Mandatorily applicability of IND AS from 1st April 2016 to all companies provided:

  • It is a listed or unlisted company
  • Its Net worth is greater than or equal to Rs. 500 crores

Net worth shall be checked for previous three Financial Years (31.03.2014, 31.03.2015 and 31.03.2016).

Phase II

Mandatorily applicability of IND AS from 1st April 2017 provided:

  • It is a listed company or is in the process of being listed (as on 31.03.2016)
  • Its Net worth is greater than or equal to Rs. 250 crores but less than Rs. 500 crores (on any of the above dates).

Net worth shall be checked for previous four Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016 & as on 31.03.2017.

Phase III

Mandatorily applicability of IND AS to Banks, NBFC, Insurance companies from 1st April 2018 whose:

  • Net worth is more than or equal to INR 500 crores with effect from 1st April 2018.

IRDA shall notify the separate set of IND AS for Banks & Insurance Companies with effect from 1st April 2018.NBFC includes core investment companies, stock brokers, venture capitalists, etc. Net Worth shall be checked for 3 years i.e. 31.03.2016, 31.03.2017 & 31.03.2018

Phase IV

NBFC whose Net worth is more than or equal to INR 250 crores but less than 500 crores shall have mandatorily applicability of IND AS  with effect from 1st April 2019.

Applicable to one, applicable to all other

If IND AS becomes applicable to a company then, IND AS shall be automatically applied to all subsidiaries, holding companies, associated companies and joint ventures irrespective of individual qualification of such companies.

In the case of foreign operations of an Indian Company, the preparation of stand-alone financial statements may continue with its jurisdictional requirements and need not be prepared as per the IND AS.

However, these entities will still have to report their IND AS adjusted numbers for their Indian parent company to prepare consolidated IND AS accounts.

Net Worth Calculation

Net worth will be determined based on the standalone accounts of the company as on 31st March 2014 or the first audited period ending after that date. Net Worth is the total of Paid-up share Capital and all reserves out of profit & securities premium account after deducting accumulated losses, deferred expenditure and miscellaneous expenditure not written off. Only capital Reserve arising out of Promoters Contribution and Govt. Grant Received can be included. Reserves created out of revaluation of assets, write back of depreciation cannot be included.

Voluntary adoption

Companies can voluntarily adopt IND AS for accounting periods beginning on or after April 01, 2015 with comparatives for the period ending 31 March 2015 or thereafter. However, once they have started reporting as per the IND AS, they cannot revert.

SEBI Clarification

For all the issuer companies whose offer document is filed with SEBI on or after 1st April 2016, SEBI has issued a clarification on the applicability of the Indian Accounting Standards or IND AS and disclosure made in the offer documents. Typically, SEBI requires issuer companies to disclose financial information for the previous 5 financial years immediately preceding the filing of the offer document, while following uniform accounting policies for each of the financial years. For those issuer companies filing an offer document –

  1. Up to March 31, 2017, all of the financial statements filed by them can be under Indian GAAP.
  1. Between April 1, 2017, and March 31, 2018, disclosures in the latest previous three financial years will have to be made under the IND AS principles while disclosures for the remaining two financial years may be done under Indian GAAP. However, as far as disclosures for the third latest financial year are concerned, suitable restatement adjustments to the accounting heads from their values as on the date of transition following accounting policies consistent with that used at date of transition to IND AS.
  2. Between April 1, 2018, and March 31, 2019, disclosures in the latest previous three financial years will have to be made under the IND AS principles while disclosures for the remaining two financial years may be done under Indian GAAP.
  3. Between April 1, 2019, and March 31, 2020, disclosures in the latest previous four financial years will have to be made under the IND AS principles while disclosures for the remaining one financial year may be done under Indian GAAP.
  4. On or after April 1, 2020, disclosures in all the previous five financial years will have to be made under the IND AS principles.

SEBI has also provided discretion to issuer companies to present financial statements for all five financial years under IND AS for companies on a voluntary basis. This clarification does not apply to issuer companies coming out with the rights issue.

Thanks & Regards

CA Pankaj Kumar Mishra