The weekly messenger | Edition 38.18

Accounting News

IFRS Convergence Status- 19 September 2018

The Institute of Chartered Accountants of India (ICAI) has published the convergence status of International Financial Reporting Standards (IFRS) as on 19 September 2018 which is as follows:

For more information, click here.

Companies (Ind AS) Second Amendment Rules, 2018 – 20 September 2018

The MCA on 20^th September 2018 has issued the Companies (Ind AS) Second Amendment Rules, 2018, amending partially Ind AS 20, ‘Accounting for Government Grants and Disclosure of Government Assistance’. Consequent to these amendments, following standards are also modified partially:

• Ind AS 12, ‘Income taxes’;
• Ind AS 16, ‘Property, Plant and Equipment’; and
• Ind AS 38, ‘Intangible Assets’.

For more information, click here.

Regulatory News

LLP Amendment Rules, 2018 – 18 September 2018

The Central Government (CG) has amended the  Limited liability Partnership (LLP) Rules, 2009 with the Limited liability Partnership (Second Amendment) Rules, 2018. Amongst other changes, following are the significant amendments:

• Rule 11 which provided the prescribed Form for incorporation of an LLP has been substituted by a new rule stating that Form FiLLiP shall be filed for application of incorporation with the registrar;
• Form 1 and Form 2 have been substituted by Form ‘RUN-LLP’ and Form FiLLiP’ respectively and consequent to this change, the word and figure “Form 2” under the aforesaid rules shall be substituted by the word and letters “Form FiLLiP”;
• Form 5, Form 16, Form 17, Form 18 and Form 19 have been substituted by a new Form.

These Rules shall come into force w.e.f  2 October 2018.

For more information, click here.

Companies (CSR) Amendments Rules, 2018 – 19 September 2018

The CG has amended the Companies (Corporate Social Responsibility Policy) (CSR Policy) Rules, 2014 with the Companies (CSR Policy) Amendment Rules, 2018, wherein certain clarificatory modifications have been made.

These rules shall come into force on the date of their publication in the official gazette.

For more information, click here.

Notification regarding commencement of certain sections of Companies (Amendment) Act, 2017 – 19 September 2018 

The CG has appointed 19 September 2018 as the date from which provisions of section 37 of the Companies (Amendment) Act, 2017 shall come into force which is related to the Amendments in section 135, ‘Corporate Social Responsibility’ of the Companies Act, 2013.

For more information, click here.

Companies (Appointment and Qualification of Directors) 6th Amendment Rules, 2018 – 20 September 2018

The CG has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 with the Companies (Appointment and Qualification of Directors) 6th Amendment Rules, 2018, wherein the last date of filing of e-form DIR-3 KYC has been extended from 15 September 2018 to 5 October 2018.

These rules shall come into force on the date of their publication in the official gazette.

For more information, click here.

Companies (Registration office and Fees) 5th Amendment Rules, 2018 – 20 September 2018

The CG has amended the Companies (Registration Offices and Fees) Rules, 2014 with the Companies (Registration office and Fees) 5th Amendment Rules, 2018, wherein the late fee of filing e-form DIR-3 KYC has been reduced from Rs. 5,000 to Rs. 500 during 21 September 2018 to 05 October 2018.

These Rules shall come into force on the date of their publication in the official gazette i.e., 20 September 2018.

For more information, click here.

SEBI Board Meeting – 18 September 2018

The Securities and Exchange Board of India (SEBI) had recently held its Board meeting in Mumbai wherein various matters were discussed upon and decisions were taken on the following topics, namely;

• KYC requirement for FPIs;
• Review of Total Expense Ratio (TER) of Mutual Fund Schemes;
• Reducing the time period for listing of issues;
• Amendment of Regulations relating to Re - classification of promoter / public
• Amendments to SEBI (Delisting of Equity Shares) Regulations, 2009;
• Review  of  requirement  of  1%  security  deposit - Public  issues  of  debt  securities, Non - convertible  redeemable  preference  shares  (NCRPS)  and  securitised  debt instruments (SDI);
• Framework for Enhanced Market Borrowings by Large Corporates;
• Reduction  in  payment  of  regulatory  fee  by  stock  exchanges  on  turnover from agricultural commodity derivatives segment;
• Draft framework for participation of Eligible Foreign Entities (EFEs), having actual exposure to Indian commodity markets, in the commodity derivatives market;
• Interoperability   among   Clearing   Corporations - Amendments   to   Securities Contracts    (Regulation)    (Stock    Exchanges    and    Clearing    Corporations) Regulations, 2012; and etc.

For more information, click here.

External Commercial Borrowings (ECB) Policy – Liberalisation – 19 September 2018

In order to curb the declining current account deficit (CAD) and the value of Rupee, the Reserve Bank of India (RBI) has recently in consultation with the Govt. of India, decided to liberalise some of its aspects of External Commercial Borrowing (ECB) policy including Rupee denominated bonds (RDBs) policy the details of which are as follows:

• The requirement of minimum average maturity period of 3 year for raising ECB up to USD 50 million or its equivalent has been reduced to 1 year for the ECB borrowers who are into manufacturing sector; and
• The Banks are now permitted to act as arrangers/underwriters/market makers/traders in RDBs issued overseas subject to applicable prudential norms. Whereas, earlier they could only participate as an arranger and underwriter and there were also certain restrictions on being an underwriter.

For more information, click here.

Further GST Updates

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

• For more information w.r.t Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases, click here;
• For more information w.r.t Guidelines for Deductions and Deposits of TDS by the DDO under GST, click here;
• For more information w.r.t the rate of tax collection at source (TCS) to be collected by every electronic commerce operator for intra-State taxable supplies, click here;
• For more information w.r.t. the rate of TCS to be collected by every electronic commerce operator for inter-State taxable supplies, click here;
• For more information w.r.t  insertion of an explanation in an entry click update 1, update 2 and update 3;