The weekly messenger | Edition 23.18

Accounting News

ICAI withdraws GN on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable) – 1 June 2018

The Institute of Chartered Accountants of India (ICAI) has withdrawn the Guidance Note (GN) on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable) issued in May 2016 with immediate effect pursuant to the issuance of Indian Accounting Standard (Ind AS) 115, ‘Revenue from Contracts with Customers’. The said GN was based on the principles of Ind AS 11, ‘Construction Contracts’ and Ind AS 18, ‘Revenue’ which are no longer effective after the issuance of Ind AS 115.

For more information, click here.

Regulatory News

Clarification w.r.t. provisions u/s 135 (5) of the Companies Act, 2013 – 28 May 2018

The Ministry of Corporate Affairs after considering the concerns raised by various stakeholders w.r.t. non-compliance of the first proviso to sub-section (5) of section 135 of the Companies Act, 2013 has reiterated the fact that the company shall give preference to the local areas and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility activities in letter and spirit.

For more information, click here.

SEBI (LODR) (Second Amendment) Regulations, 2018 – 29 May 2018

The Securities Exchange Board of India (SEBI) has amended the SEBI (Listing Obligations and Disclosure requirements (LODR)) Regulations, 2015 with the SEBI (LODR) (Second Amendment) Regulations, 2018 wherein it has amended clause (1) of Schedule I which provides for the mode of payment to be used for making the payment of dividend/interest on securities issued/redemption or repayment amount. As per the earlier requirement, the listed entity was allowed to use the facility of electronic clearing services or real time gross settlement or national electronic funds transfer either directly or through their Registrar for making payment of dividend/interest on securities issued/ redemption or repayment of amount. Now, it has been clarified that the listed entity may also do the same through their depositor.
These regulations shall come into force from the date of their publication in the Official Gazette i.e. 30 May 2018.

For more information, click here.

IRDA Act as amended by Insurance Laws (Amendment) Act 2015 - 29 May 2018

The Insurance Laws (Amendment) Act, 2015 got enacted on 23 March 2015 thereby amending the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972 and the Insurance Regulatory and Development Authority (IRDA) Act 1999 . Now, the IRDAI has incorporated those amendments in the IRDA Act 1999 which relates to the following topics:
• Definitions;
• Establishment and Incorporation of Authority;
• Constitution of Fund etc.

For more information, click here.

Further GST Updates

The Central Board of excise and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows:

• For clarification w.r.t. misleading reports appearing in certain section of the press, click here.
• For information w.r.t. GST on Priority Sector Lending Certificate (PSLC) under Reverse Charge Mechanism (RCM), click Update 1, Update 2, Update 3.
• For information w.r.t. special refund fortnight, click here.
• For clarification on refund related issues, click here.
• For information w.r.t. e-way bill for intra-state movement of goods, click here.
• For information w.r.t. extension in the due date for filing Form GSTR-6 for the months July 2017 till June 2018, click here.
• For information w.r.t. Frequently Asked Questions (FAQs) published on financial sector, click here.