The weekly messenger | Edition 05.18

Accounting News

ED of AS 16 PPE – 24 January 2018

The Institute of Chartered Accountants of India has issued an Exposure Draft (ED) of the Accounting Standard (AS) 16, Property, Plant and Equipment (PPE). The purpose of issuing this ED is to upgrade the AS as notified under Companies (AS) Rules 2006, to bring them nearer to Indian Accounting Standards (Ind AS) which will be applicable to all companies having net-worth less than Rs.250 crores including non-corporate entities. AS 10 has been taken as the base for formulating the upgraded Standard on PPE. The upgraded Standard on AS 16 is almost similar to AS 10 except for certain differences which have been explained in the appendix to the aforesaid ED.
Comments are to be received by 24 February 2018
For more information, click here.
FASB simplifies adoption of new leases standard for some land easements – 25 January 2018
The Financial Accounting Standards Board (FASB) has issued an Accounting Standard Update (ASU) which provides clarification on the application of the new leases guidance to land easements and eases adoption efforts for some land easements.

For more information, click here.

Regulatory News

Companies (Incorporation) Amendment Rules, 2018 – 20 January 2018

The Central Government (CG) has amended the Companies (Incorporation) Rules, 2014 with the Companies (Incorporation) Amendment Rules, 2018 wherein certain procedural changes have been made in the below mentioned rules;

• Rule 9 ‘Reservation of name’;
• Rule 10 ;
• Rule 12 ‘Application for incorporation of companies’;
• Rule 38 ‘Simplified Proforma for Incorporating Company Electronically (SPICe)’.

Further, the form INC -1 has been substituted by form Run, form INC – 32 has been substituted by form SPICe and form INC – 3, INC -12 , INC – 22 and INC -24 have been substituted with new form INC – 3, INC -12 , INC – 22 and INC -24.
These rules shall come into force w.e.f. 26 January 2018.

For more information, click here.

Companies (Registration Offices and Fees) Amendment Rules, 2018 – 20 January 2018

The CG has amended the Companies (Incorporation) Rules, 2014 with the Companies (Incorporation) Amendment Rules, 2018 wherein the following changes have been made:

• In sub-Rule (3) of Rule 10 ‘Procedure on receipt of any application or form or document electronically’, the following proviso has been inserted ‘provided that no re-submission of the application is allowed in the case of reservation of a name through web service - RUN’;
• The Table of Fees to be paid to the Registrar given in item I (Fee for filings etc. under section 403 of the Companies Act 2013) in Annexure has been substituted with the new table.

These rules shall come into force w.e.f. 26 January 2018.

For more information, click here. 

Notification regarding commencement of Companies Amendment Act 2017 – 23 January 2018

The CG has appointed 26 January 2018 as the date on which the provisions of section 1 ‘Short title and commencement’ and section 4 ‘Amendment of section 4’ of the Companies (Amendment) Act, 2017 shall come into force.

For more information, click here.

Companies (Appointment and Qualification of Directors) Amendment Rules, 2018 – 26 January 2018

The CG has amended the Companies (Appointment and Qualification of Directors) Amendment Rules 2014 with the Companies (Appointment and Qualification of Directors) Amendment Rules 2018 wherein the following changes have been made:

• The marginal heading of Rule 9 has been changed from ‘Application for allotment of Director Identification Number’ to ‘Application for allotment of Director Identification Number before appointment in an existing company’;
• Certain other procedural changes have also been made in sub-rule (1) and (3) of Rule 9;
• The existing forms DIR-3 and DIR-12 have been substituted with new forms DIR - 3 and DIR – 12 respectively.

These rules shall come into force on the date of their publication in the Official Gazette.

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 accepting of Unique Identity Number of Foreign Diplomatic Missions / UN Organizations while making supplies, click here;
• For information w.r.t recommendations made by the GST Council in its 25th Meeting held on 18th January, 2018 at Delhi for the housing sector, click here;
• For information w.r.t recommendation made by the GST Council in its 25th Meeting held on 18th January, 2018 at Delhi for reducing GST rate on admission to amusement parks and ballet etc, from 28% to 18%, click here;
• For information w.r.t recommendation made by the GST Council in its 25th Meeting held on 18th January, 2018 at Delhi for granting relief from GST on circus, dance, theatrical performances including drama or dance, award function, pageants, concerts, musical performances, recognised sporting events, click here;
• For information w.r.t recommendations made by the GST Council in its 25th Meeting held on 18th January, 2018 at Delhi for granting relief from GST on services provided by Resident Welfare Associations to their members, click here;
• For Central GST (Amendment) Rules, 2018, click here;
• For information w.r.t. the reduction of late fee in case of delayed filing of FORM GSTR-1, click here;
• For information w.r.t. the reduction of late fee in case of delayed filing of FORM GSTR-5, click here;
• For information w.r.t. the reduction of late fee in case of delayed filing of FORM GSTR-5A, click here;
• For information w.r.t. the reduction of late fee in case of delayed filing of FORM GSTR-6, click here;
• For information w.r.t. the extension of date for filing the return in Form GSTR-6, click here;
• For information on the amendment w.r.t. the notification of e-way bill website, click here;
• For information w.r.t. the amendment in cross-empowerment of State tax officers for processing and grant of refund - Central GST, click here;
• For information w.r.t. amendment in cross-empowerment of State tax officers for processing and grant of refund - Integrated GST, click here;
•  For notifications related to amendment in Integrated Tax (Rates), 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;
• For notifications related to amendment in Central Tax (Rates), 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;
• For notification related to amendment in Compensation Cess (Rate), click here;
• For notifications related to amendment in Union Territory Tax (Rates), 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;
• For more information w.r.t exemption in royalty and license fee from Integrated tax to the extent it is paid on the consideration attributable to royalty and license fee included in transaction value under Rule 10(1)(c) of Customs Valuation (Determination of value of imported Goods) Rules, 2007, click here;
• For information w.r.t. clarification on the applicability of GST on Polybutylene feedstock and Liquefied Petroleum Gas retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl para Cresol, click here;
• For information w.r.t. clarification regarding supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86, click here.