The weekly messenger | Edition 40.17

Accounting News

IASB issues narrow scope amendments to IFRS 9 and IAS 28 – 12 October 2017

The International Accounting Standard Board (IASB) has issued amendments to International Financial Reporting Standard (IFRS) 9 “Financial Instruments” and International Accounting Standard (IAS) 28 “Investments in Associates and Joint Ventures” which are as follows:

• The amendments to IFRS 9, allow companies to measure their particular pre payable financial assets with so-called negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met—instead of at fair value through profit or loss.
• The amendments to IAS 28 clarify that companies account for long-term interests in an associate or joint venture—to which the equity method is not applied—using IFRS 9.

For more information, click here.

Regulatory News

GN on Meetings of the Board of Directors and General Meetings (Based on Revised SS-1 and SS – 2) – 9 October 2017

The Institute of Company Secretaries of India (ICSI) has in order to facilitate the compliance and smooth implementation of revised Secretarial Standards (SSs) on Meetings of the Board of Directors (SS-1) and General Meetings (SS -2) by the Corporates, their Boards, Management and Professionals has brought out the following guidance notes (GN):

• GN on Meetings of the Board of Directors (Based on Revised SS-1)
• GN on General Meetings (Based on Revised SS-2)

For GN on Meetings of the Board of Directors, click here.

For GN on General Meetings, click here.

Corporate Anti – Bribery Code Released by ICSI – 12 October 2017

The ICSI has recommended a Corporate Anti – Bribery Code, to be adopted voluntarily by the private sector, tackling the supply side of bribery in this sector. The purpose of this publication is to ensure that neither the company nor its employees, directors or authorised representatives indulge in bribery in any of their actions taken for and on behalf of the company in the course of economic, financial or commercial activities of any kind. This publication inter-alia includes:

• Corporate Anti – Bribery Code  (The Code)
• Background
• Anti – Corruption Measures : Legislations and Institutions in India
• International Trends and Practices on Anti – Corruption and Bribery
• Recent Initiatives for eliminating Corruption
• Survey reports and analysis etc.

For more information, click here

IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 – 13 October 2017

The Central Government (CG) has amended the Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 with the IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 wherein certain procedural changes have been made in the following rules: 

• Rule 6“Manner of transfer of shares under sub-section (6) of section 124 to the Fund”;
• Rule 7 “Refunds to claimants from Fund”. 

These rules shall come into force from 13 October 2017.

For more information, click here.

Transfer of Shares to IEPF Authority – 16 October 2017

The CG has issued the IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 wherein it has clarified that wherein the period of seven years period provided under sub-section 5 of section 124 of the Companies Act 2013 that relates to the Unpaid Dividend Account, is completed for unpaid/unclaimed dividends during 7 September 2016 to 31 October 2017, the due date for transfer of such shares by companies is 31 October 2017. Now, with respect to this provision, the Ministry of Corporate Affairs has issued a circular whereby it has specified the terms and conditions for the purpose of transfer of such shares 

For more information, click here.

Criteria for settlement mode of commodity derivative contracts – 16 October 2017

In order to help the hedgers to manage risk better as well as curb excessive manipulation, the Securities and Exchange Board of India (SEBI) has asked the stock exchanges to prefer physical settlement system for commodity derivative contracts. In view of this, SEBI in consultation with the Commodity Derivatives Advisory Committee has specified the broad guidelines for the purpose of deciding appropriate settlement mode for commodity derivatives contracts. 

For more information, click here.

Amendment to the Income-tax Rules, 1962 – 5 October 2017

The Central Board of Direct Taxes (CBDT) has amended the Income–tax Rules, 1962 with the Income-tax (23^rd Amendment) Rules, 2017 wherein it has made certain modifications to sub-Rule 2 of Rule 11N “Other Provisions” which relates to the entitlement of sitting fees to the members and Chairman of the National Committee for attending a meeting of the National Committee or any Subordinate Committee set up by the Chairman of the National Committee. The CBDT has amended the limit of sitting fees prescribed under the aforesaid rule from Rs. 6000 per day to Rs. 3000 per day.

These rules shall come into force from the date of their publication in the Official Gazette i.e. 5 October 2017.

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 information w.r.t last date of filing GSTR -1 for July 2017,click here;
• For information on inclusion of petrol, diesel, ATF and natural gas in GST, click here;
• For clarification on the issue related to purchase and lease of Motor vehicles, click here;
• For amendment in notification no. 32/2017-CT so as to add certain items to the list of “handicrafts goods”, click here;
• For information on cross-empower State Tax officers for processing and grant of refund, click here;
• For information w.r.t making payment of tax on issuance of invoice by registered persons having aggregate turnover less than Rs 1.5 crores, click here;
• For information w.r.t extension in the time limit for filing of FORM GSTR-4,click here;
• For information w.r.t extension in the time limit for filing of FORM GSTR-5A,click here;
• For information w.r.t extension in the time limit for filing of FORM GSTR-6,click here;
• For information w.r.t extension in the time limit for submission of FORM GST ITC-01,click here;
• For Central GST (CGST) (Ninth Amendment) Rules, 2017,click here;
• For notifications related to amendment in Central Tax, click update 1, click update 2,click update 3, click update 4, click update 5, click update 6, click update 7, click update 8;
• For information w.r.t exemption of  payment of tax under section 9(4) of the CGST Act, 2017 till 31.03.2017, click here;
• For notifications related to amendment in Integrated Tax, click update 1, click update 2, click update 3, click update 4, click update 5, click update 6, click update 7, click update 8, click update 9;click update 10
• For information w.r.t Integrated Tax rate on the leasing of motor vehicles., click here;
• For notifications related to amendment in Union Territory (UT) Tax, click update 1, click update 2, click update 3, click update 4;click update 5
• For information w.r.t exemption on payment of tax under section 7(4) of the UTGST Act, 2017 till 31.03.2017, click here;
• For amendment in thenotification No2/2017-Compensation Cess (Rate) regarding reduction in cess rates for leasing of motor vehicles purchased and leased prior to 01.07.2017,click here;
• For information w.r.tcompensation cess rate on the leasing of motor vehicles, click here;
• For CGST (Removal of Difficulties) Order 2017, click here; and
• For UTGST (Removal of Difficulties) Order 2017, click here.

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