The weekly messenger | Edition 49.17

Accounting News

IASB update December 2017 – 13 December 2017

This International Accounting Standards Board (IASB) has issued the “IASB Update December 2017” which highlights the Board's decisions on International Financial Reporting Standards (IFRS) Standards, Amendments and International Financial Reporting Interpretations Committee (IFRIC) Interpretations.

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Regulatory News

Highlights of the Companies (Amendment) Bill, 2017 – 19 December 2017

The Companies (Amendment) Bill, 2017 has been passed by Rajya Sabha on 19 December 2017 and by Loksabha on 27 July 2017 but is yet to get president’s assent. The amendments under the Companies (Amendment) Bill, 2017, are aimed at:

• facilitating ease of doing business in order to promote growth with employment;
• rectifying omissions and inconsistencies in the Act;
• addressing difficulties in implementation owing to stringent compliance requirements; and
• harmonisation with accounting standards, the Securities and Exchange Board of India (SEBI) Act, 1992 and the regulations made thereunder, and the Reserve Bank of India Act, 1934 and the regulations made thereunder.

Now, the Institute of Companies Secretaries of India has issued the highlights of the same wherein it has provided a detailed explanation w.r.t. the amendments made in the Bill 2017 such as what is the existing provision; what are the amendments; what is the revised provision and explanation for the same.

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Companies (cost records and audit) Second Amendment Rules, 2017 – 20 December 2017

The Central Government (CG) has further amended the Companies (cost records and audit) Rules, 2014 with the Companies (cost records and audit) Second Amendment Rules, 2017 wherein the following changes have been made:

• Earlier Rule 2(aa) of the principal rules used to define the term “the Central Excise Tariff Act Heading”. Now it has been provided that clause (aa) of such rule would be substituted with new clause (aa) which provides the definition of the term “Custom Tariff Act”;
• In Rule 3 “Application of cost records” of the principal rules, the words “Central Excise Tariff Act Heading” have been substituted with the words “Custom Tariff Act Heading”;
• In the principal rules, in the Annexure, in Form CRA-2, Form CRA-3 and Form CRA4, for the words ”CETA Heading" shall be substituted with the words "CTA Heading".
• These changes shall be deemed to have been substituted w.e.f. 1 July 2017.

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Properties of struck off companies from ROC can’t be used, operated, transferred or alienated in any manner – 22 December 2017

The CG has clarified that assets, properties etc. (all movable and immovable assets/properties) of the companies whose names have been struck off from the Register of Companies (ROC) cannot be used, operated, transferred or alienated in any manner by the companies including by their ex-directors/authorized signatories, till they are restored by following the due process of law given under section 252 of the Companies Act, 2013.

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Disclosure of holding of specified securities and Holding of specified securities in dematerialised form – 19 December 2017

The SEBI has issued a circular in continuation to Circular No. CIR/CFD/CMD/13/ 2015 dated 30 November 2015 wherein it has amended the Clause 2 (c) of the aforesaid circular which prescribes the manner of representation of holding of specified securities. Earlier, clause 2 (c) used to be read as follows “The details of the shareholding of the promoters and promoter group must be accompanied with Permanent Account Number (PAN) Number (first holder in case of joint holding). Further, the shareholding of the promoter and promoter group is to be consolidated on the basis of the PAN and folio number to avoid multiple disclosures of shareholding of the same person”. Now, in the updated circular, after the words “promoters and promoter group”, the words “public shareholder and non- public non-promoter shareholder” have been added.

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The Prevention of Money-laundering (Maintenance of Records) Seventh Amendment Rules, 2017 – 18 December 2017

The CG has earlier notified that linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money – laundering (Maintenance of Records) Second Amendment Rules, 2017. Now, CG has notified the PML (Maintenance of Record) (Seventh Amendment) Rules, 2017 and accordingly, has clarified that the date of submission of the Aadhaar Number and PAN or Form 60 by the clients to the reporting entity is 31st March, 2018 or six months from the date of commencement of account based relationship.

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IRDAI (Registration and Operations of International Financial Service Centre Insurance Offices (IIO) Guidelines, 2017 – 22 December 2017

The Insurance Regulatory and Development Authority of India (IRDAI) has issued the IRDAI (Registration and Operations of International Financial Service Centre Insurance Offices (IIO) Guidelines, 2017.
For more information, click here.
Review of SLB Framework – 21 December 2017
The Bombay Stock Exchange has issued a notice w.r.t. review of securities lending and borrowing (SLB) framework wherein it has made certain changes in the existing SLB scheme

For more information, click here.

Further GST Updates

• For more information w.r.t. extension of the time limit for filing FORM GST ITC-01, click here.
• For more information w.r.t. extension of the time limit for filing FORM GSTR-5, click here.
• For more information w.r.t. extension of the time limit for filing FORM GSTR-5A, click here.
• For more information w.r.t. amendment in Central Goods and Services Tax (GST) Rules, 2017 (Thirteenth Amendment), click here.
• For more information w.r.t. Clarification on issues regarding treatment of supply by an artist in various States and supply of goods by artists from galleries, click here.
• For more information w.r.t. Issues in respect of maintenance of books of accounts relating to additional place of business by a principal or an auctioneer for the purpose of auction of tea, coffee, rubber etc., click here.
• For more information w.r.t. Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger, click here.
• For more information w.r.t. Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling, click here.