The weekly messenger | Edition 37.17
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting News
IND AS: An Overview (Revised 2017) – 22 September 2017
The Institute of Chartered Accountants of India (ICAI) has issued a revised publication on Indian Accounting Standards (Ind AS) by the name of “Ind AS: An Overview (Revised 2017)”. The purpose of issuing this publication is to incorporate the recent amendments being made in the International Financial Reporting standards (IFRS)/International Accounting Standards (IAS) issued by the International Accounting Standard Board, so that a pace can be maintained with the global developments. Further, it also includes the amendments to the Ind AS made by the Ministry of Corporate Affairs vide Companies (Ind AS) Amendment Rules, 2017 notified on 17 March 2017.This publication inter-alia includes the following:
- Approach to IFRS-converged Ind AS;
- Roadmap for the implementation of Ind AS for Corporates;
- Roadmap for the implementation of Ind AS for Scheduled Commercial Banks, Insurance Companies, and Non-Banking Financial Companies (NBFCs);
- Summary of Ind AS;
- Major Differences between Ind AS and IFRS and reasons for the differences;
- Major Differences between Ind AS and AS; etc.
For more information, click here
Education Material on IND AS -18, Revenue (Revised 2017) - 22 September 2017
The ICAI has also issued a revised Education Material on IND AS – 18, Revenue, addressing relevant aspects envisaged in the Standard by way of:
- Brief summary of the Standard and;
- Frequently Asked Questions (FAQs).
The purpose of this publication is to provide guidance for implementing this Ind AS effectively by explaining the principles enunciated in the Standard with the help of examples.
For more information, click here
FASB Issues ED on Proposed Accounting Standards Update—Consolidation (Topic 812) – 20 September 2017
The Financial Accounting Standards Board (FASB) has issued an Exposure Draft (ED) on Proposed Accounting Standards Update about Consolidation and Reorganisation that would reorganize and clarify the consolidation guidance in FASB Accounting Standards Codification Topic 810.
Comments are to be received by 4 December 2017.
For more information, click here
Regulatory News
Companies (Acceptance of deposits) Second Amendment Rules, 2017 – 19 September 2017
The Central Government (CG) has amended the Companies (Acceptance of Deposits) Rules, 2014 with the Companies (Acceptance of Deposits) Second Amendment Rules, 2017 wherein the following modifications have been made:
- Earlier as per the proviso to Rule 3(3), a private company may accept from its members monies not exceeding one hundred per cent of aggregate of the paid up share capital, free reserves and securities premium account. Now, it has been notified that Specified IFSC Public Company may also accept from its members monies up to the aforesaid limit.
- Further, it has been also notified that maximum limit in respect of deposits to be accepted from members shall not be applicable to the following class of private companies:
- a private company which is a start-up, for five years from the date of its incorporation;
- which is not an associate or a subsidiary company of any other company;
- the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is less ; and
- such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73.
- a private company which is a start-up, for five years from the date of its incorporation;
- Certain changes have also been made in the form DPT-3.
For more information, click here
Commencement of proviso to section 2(87) of CA 2013 – 20 September 2017
The CG has appointed 20 September 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act (CA) 2013 that relates to the definition of subsidiary company shall come into force.
For more information, click here
Companies (Restriction on number of layers) Rules, 2017 – 20-09-2017
The CG has issued the Companies (Restriction on number of layers) Rules, 2017 as per which no company except for certain specified class of companies shall have more than two layers of subsidiaries. However, the provisions of these rules would not affect a company from acquiring a company incorporated outside India with subsidiaries beyond two layers as per the laws of such country. Further, for computing the number of layers under this rule, one layer which consists of one or more wholly owned subsidiary or subsidiaries shall not be taken into account.
These rules shall come into force w.e.f. the date of the publication i.e. 20 September 2017.
For more information, click here
Clarification regarding the definition of NBFC under section 45-I of the RBI Act 1934 – 18 September 2017
The Reserve Bank of India (RBI) has with the prior approval of the CG has issued a notification wherein it has specified that a non-banking institution that carries on ‘the business of a peer to peer lending platform’ would be considered as a NBFC. For the purpose of this notification, the term “the business of a peer to peer lending platform” shall mean the business of providing under a contract, the service of loan facilitation, via online medium or otherwise, to the participants who have entered into an arrangement with that platform to lend on it or to avail of loan facilitation services provided by it.
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 extension in the time limit for submitting form GST TRAN-1, click here;
- For amendment on specified supplies of Works Contract Services under notification No. 11/2017-CT(R) to reduce CGST rate ,click here;
- For amendment to exempt right to admission to the events organised under FIFA U-17 World Cup 2017 under notification No. 12/2017-CT(R), click here;
- For exemption to intra state supply of heavy water and nuclear fuels from the whole of the central tax leviable thereon under section 9 of the Central GST (CGST) Act, 2017, click here;
- For amendment in central tax(rate) regarding GST rates, click here;
- For amendment in central tax(rate) regarding GST exemptions, click here;
- For amendment in central tax(rate) regarding restriction of refund on corduroy fabrics, click here;
- For amendment in integrated tax(rate) regarding GST rates, click here;
- For amendment in integrated tax(rate) regarding GST exemptions, click here;
- For amendment in integrated tax (rate)regarding restriction of refund on corduroy fabrics, click here;
- For exemption to Skimmed milk powder, or concentrated milk, click here;
- For amendment to exempt right to admission to the events organised under FIFA U-17 World Cup 2017 under Union Territory GST (UGST), click here;
- For exemption of certain supplies to Nuclear Power Corporation of India Limited (NPCIL) under Integrated GST, click here;
- For exemption of certain supplies to NPCIL under UGST, click here;
- For Amendment to exempt right to admission to the events organised under FIFA U-17 World Cup 2017,click here.