tag:blogger.com,1999:blog-37729099231744308892024-02-07T19:07:58.607-08:00THOMAS & ASSOCIATES, Chartered AccountantsKottayam | Ernakulam | Thiruvananthapuram | Vaikom | Kanjirapally | Changanacherry | Thiruvalla | Alappuzha | U A ETKGhttp://www.blogger.com/profile/14454762934868362546noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-3772909923174430889.post-45220007057586233292019-04-01T07:02:00.002-07:002019-04-01T07:04:50.673-07:00FAQs on UDIN for Bank Audit<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">1. Whether UDIN is mandatory for Statutory Bank Audit?<o:p></o:p></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;"><span style="color: #333333;">For Statutory Bank
Audit, UDIN is not mandatory. However, for all Certificates to be signed while
conducting Bank Audit, generation of UDIN is mandatory as UDIN is already
mandatory on all Certification w.e.f 1</span><sup style="box-sizing: border-box;"><span style="color: #333333;">st </span></sup><span style="color: #333333;">Feb.,2019.<o:p></o:p></span></span><br />
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">2. While conducting Bank Audit, whether separate UDIN has to be
taken for all Certificates as there are bulk of certificates to be signed?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">UDIN has to be generated
per Assignment per Signatory.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">In Bank Branch Audit,
One Branch is one assignment, hence, one UDIN for all certificates will
suffice.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">However, care should be
taken that a list of all certificates bearing same UDIN should be compiled and
handed over to management under a covering letter so that the UDIN generated
cannot be misused by affixing on any other certificate which has not been
signed by you.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">3. In case if some Certificates are signed by one Partner while
others are signed by another Partner, whether different UDIN is required for
each such Partner?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">UDIN has to be taken per
Assignment per Signatory. Bank Branch Audit per Branch is one assignment and
hence one UDIN for all certificates is enough.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">However, if different
partners are signing different certificates then separate UDIN has to be taken
per signatory for the certificates signed by them.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">4. Whether UDIN is mandatory for Tax Audit?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">In the 2nd phase of UDIN
applicability, ICAI Council has made generation of UDIN mandatory for all GST
Audit and All Tax Audit from 1st April, 2019. Hence in Bank Branch Audit,
separate UDIN has to be taken for Tax Audit.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
<div class="MsoNormal" style="background: #D0D0D2; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Verdana, sans-serif; font-size: x-small;">5. Whether same UDIN which was generated for Certificates in Bank
Branch Audit can be used for Tax Audit of the same Bank Branch?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">Tax Audit is the
separate assignment. Hence separate UDINs have to be taken while conducting
Bank Branch Audit for each Branch.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">Therefore, 2 separate
UDINs are to be generated – one for Certificates and other for Tax Audit
Report.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">However, if certificates
are signed by more than one partner then more UDINs on certificates have to be
generated.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">6. Whether UDIN is applicable to both Statutory Central Auditors
(SCAs) and Statutory Branch Auditors (SBAs)?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">Yes, UDIN is applicable
to both SCAs and SBAs for Certificates and Tax Audit Reports while conducting
Bank Audit.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">7. Whether UDIN is to be generated for LFAR and / or other Bank
Audit Reports?<o:p></o:p></span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;"><span style="color: #333333;">As per UDIN
applicability in 2</span><sup><span style="color: #333333;">nd</span></sup><span style="color: #333333;"> Phase, UDIN is not required to be generated for LFAR and
other Bank Audit Reports now.<o:p></o:p></span></span><br />
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">8. What is the process to generate UDIN for certificates under
Bank Audits?<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">For generating UDIN, the
“Document type” is to be selected as “Certificates”. Thereafter, date of
signing of the document is to be mentioned. Under “Type of Certificate” select
“Certificate issued by Statutory Auditors of Banks”.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">There are 3 mandatory
fields for entering the financial figures / values from the document and the
description of the figure/ value so entered.<o:p></o:p></span></div>
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<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">The names of the
Certificates are to be mentioned under the Caption “Document Description”.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
<div class="MsoNormal" style="background: #D0D0D2; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Verdana, sans-serif; font-size: x-small;">9. How to generate one UDIN for more than one Certificate when
there are 3 mandatory filled to be given from the Certificates?<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto;">
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">While generating one
UDIN for all the Certificates, some common figures /parameters should be given
in 3 mandatory fields and if no common figure is there then name of the Bank
and Branch, Advances, Deposits etc must be the one common field which can be correlated
with all the certificates.<o:p></o:p></span><br />
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;"><br /></span></div>
<div class="MsoNormal" style="background: #D0D0D2; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: Verdana, sans-serif; font-size: x-small;">10. Whether UDIN is mandatory for Tax Audit Reports that are filed
online using Digital Signature?<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto;">
<span style="color: #333333; font-family: Verdana, sans-serif; font-size: x-small;">UDIN will be applicable
both for manually as well as digitally signed Reports / uploaded online. In
case of digitally signed / online reports, UDIN has to be generated and
retained for providing the same on being asked by any third party/ authority.<o:p></o:p></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-13049184878172715422019-04-01T04:04:00.000-07:002019-04-01T04:04:00.634-07:00Major Amendments laws effective from 1st April 2019<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">1)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="line-height: 18.4px;">Upper limit of turnover for composition scheme to be raised from 1 Crore to Rs 1.5 Crore.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">2)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="line-height: 18.4px;">Composition dealers will now be allowed to supply services upto value not not exceeding 10% of turnover of the preceding financial year or Rs 5 Lakh whichever is higher.</span></span></div>
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<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">3)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;">The threshold exemption limit for registration in the states of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim & Uttarkhand has been raised from Rs 10 Lakhs to Rs 20 Lakhs. Other states have been given the option to raise the limit to Rs 40 Lakhs.</span><span lang="EN-US" style="line-height: 18.4px;"></span></span></div>
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<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">4)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;">Taxpayers can opt for multiple registrations within the same state/ Union Territory for multiple places of business. Further at the option of the taxpayer the unutilized Input Tax credit in the existing registration can be transferred to the newly registered places of business. For this Form GST ITC-02A is required to be furnished within 30 days of obtaining such separate registrations.</span><span lang="EN-US" style="line-height: 18.4px;"></span></span></div>
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<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">5)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;">Mandatory registration is required in case of e-commerce operators who are required to collect TCS.</span><span lang="EN-US" style="line-height: 18.4px;"></span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="line-height: 18.4px;">6)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;">Registration to remain temporarily suspended while cancellation of registration is under process so that taxpayer is relieved of continued compliance under the law.</span><span lang="EN-US" style="line-height: 18.4px;"></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><b><span lang="EN-US" style="line-height: 18.4px;">7)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><b><u><span lang="EN-US" style="line-height: 18.4px;">Widened scope of Input tax credit:</span></u></b></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">A) Motor Vehicles for transportation of persons having seating capacity more than 13 persons including driver, vessel and aircraft</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">b) Motor Vehicles for transportation of money by a Banking Company or Financial Institutions</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">c) Service of general insurance, repairs and maintenance in respect of motor vehicles, vessels and aircrafts on which credit is available.</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">d) Goods and Services which are obligatory for an employer to provide to its employees under law for time being in force<span style="color: #475055;">.</span></span></span></div>
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<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">8)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Commissioner has been empowered to extend time limit for return of inputs and capital sent on job work up to a period of two years .</span></span></div>
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<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 40.5pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">9)<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Supply of services will qualify as exports even if payment is received in Indian rupees which are permitted by the RBI.</span></span></div>
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<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">10) Place of supply in case of job work of any treatment or processes done on goods temporarily imported into India and then exported without putting them to any other use in India.</span></span></div>
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<b><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">11) <u>Changes in Real estate sector</u></span></span></b></div>
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<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;"> <b>a) <u>Under Construction House property</u></b></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><b><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"> i</span></b><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">) GST can be charged at a rate of 8% if following conditions are satisfied:</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">80% of materials are purchased from registered dealers.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Cement if purchased from unregistered dealers then R.C.M has to be paid at 28%</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpLast" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 10pt 69.75pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">No input tax credit is allowed.</span></span></div>
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<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;"> ii)GST can be charged at a rate of 12% along with availing input tax credit.</span></span></div>
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<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">b) <u>Affordable housing scheme projects with</u></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">Ø<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Area of 60 sq.m in metro cities and 90 sq.m in non-metro areas and</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">Ø<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">With a value equal to or below rs 45 Lakhs</span></span></div>
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<span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">Will be charged GST at a rate of 1% with no claim of input tax credit.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">(Earlier it was 5% with Input Tax Credit</span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #475055; line-height: 18.4px;">)</span></span></div>
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<b><u><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><span style="font-family: Trebuchet MS, sans-serif;">Calamity Cess</span></span></u></b></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Dealers under composition scheme are not liable to levy calamity cess.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">0.25 % flood cess to be levied on goods under fifth schedule including gold, silver and platinum.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">1% flood cess to be levied on all supply of goods covered under GST rates 12%,18% & 28%</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">1% of flood cess to be levied on all services</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">The cess is to be calculated on value of supply.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Cess would be applicable on intra state supplies</span></span></div>
<div class="m_-3503305018735162383gmail-MsoListParagraphCxSpMiddle" style="background-color: white; color: #222222; line-height: 16.8667px; margin: 0cm 0cm 0.0001pt 36pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Cess to be levied on last supply point that B2C transaction.</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="color: black; line-height: 18.4px;">§<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">The effective date its implementation is yet<a href="https://www.blogger.com/null" name="m_-3503305018735162383__GoBack" style="color: #222222;"></a> to be announced</span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;"><br /></span></span></div>
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<span style="font-family: Trebuchet MS, sans-serif;"><span lang="EN-US" style="background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; line-height: 18.4px;">Courtesy : CA. Thomas K George B Sc, FCA</span></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-50557099872564224532019-02-26T21:26:00.002-08:002019-02-26T21:26:28.007-08:00Section 54 F Clarification<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">Query:<br />Section 54 F of the Income Tax Act states that as on date of transaction the person shall have only one residence. So a person selling long term asset owning one house can buy one more house under section 54F is my understanding of the section. But some interpretation is that one house includes the new house.<br />I kindly request for partners advice on the same.</span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;"><br />Ans : The assessee does not own more than one residential house other than new asset on the date of transfer.</span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">In the interim budget 2019, the finance minister has proposed to amend Section 54, for LTCG exemption arising from the sale of a residential house. The proposal provides that a tax payer will be entitled to invest the indexed capital gains in two separate residential houses, to claim the exemption available under Section 54. This option is available to the tax payer only once in his lifetime, provided the indexed capital gains do not exceed Rs two crores. It may be noted that the option to make investment in two residential houses has been extended under Section 54, for claiming LTCG exemption on sale of residential house only and not to LTCG for other assets under section 54F.</span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">This amendment, along with the proposal to allow a tax payer to have two self-occupied house properties, will incentivise people to diversify their investment portfolio, with increased allocation to real estate. This will, in turn, spur demand for residential houses across the country, including tier-2 and tier-3 cities. Since this is a one-time opportunity, the benefit in other cases will be available for making investment in one residential house only, for claiming LTCG exemption under Section 54 and 54F.</span></div>
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<span style="font-family: Verdana, sans-serif; font-size: x-small;">Courtesy : CA. Thomas Kenny, CA. Thomas K George and CA. Shimon Xavier</span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-63822401591687740242015-10-23T02:54:00.001-07:002015-10-23T02:56:39.009-07:00Deductions u/s 80P(2)(iv)—Deduction in respect of income of co-operative societies<div dir="ltr" style="text-align: left;" trbidi="on">
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<i style="font-family: Verdana; font-size: small;"><b>BHADRAN SEVA SAHAKARI MANDLI LTD. vs.INCOME TAX OFFICER</b></i></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">AHMEDABAD TRIBUNAL</span></i></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">RAJPAL YADAV, JM & ANIL CHATURVEDI, AM.</span></i></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">ITA No. 2946/Ahd/2013, 119 & 120/Ahd/2014</span></i></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Oct 19, 2015</span></i></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(2015) 45 CCH 0126 AhdTrib</span></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Legislation Referred to </span></u><i style="text-align: left;"><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Section 80P(2)(iv)</span></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Case pertains to </span></u><i style="text-align: left;"><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Asst. Year 2008-09, 2009-10 & 2010-11</span></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Decision in favour of:</span></u><i style="text-align: left;"><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Assessee (partly)</span></i><br />
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<strong><em><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><span style="font-size: small !important; line-height: 13.91px;">Deductions u/s </span><span style="font-size: small !important; line-height: 13.91px;">80P(2)(iv)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span lang="EN-IN" style="font-size: small !important; line-height: 13.91px;">Deduction in respect of income of co-operative societies—Business if sale and credit facility services—</span><span style="font-size: small !important; line-height: 13.91px;">Assessee was co-operative society alleged to have been established in 1958—Assessee was engaged in business of selling fertilizers, petrol, diesel and retail consumer items as well as providing credit facilities to its members through bank etc.—Assessee was assessed to tax from Asst. Year it came into existence—Assessee filed returns of income in all three years declaring Nil income—AO computed income for all years—Appeal to CIT(A) did not bring any relief to Assessee—AO construed that total sale was being made to non-members and denied exemption u/s 80P(2) to Assessee—Held, sale of diesel to farmers who were members of Assessee society would fall within meaning of expression “other articles intended for agriculture for purpose of supplying them to its members”—Thus if diesel was being supplied to farmers for agricultural use, then profit would qualify for deduction u/s 80P(2)—However, Assessee had not been able to maintain specific details demonstrating sales exclusively made to farmers and who used such diesel for agricultural operation—In past, Assessee had been claiming deduction to extent of 70% on ground that only 30% of sales were made to outsiders, but that figure had always been adopted by Assessee on estimate basis—It was not possible to verify sale bills because to identify purchasers out of sale bills was quite difficult for any adjudicator—Thus in totality of facts and circumstances of AO was directed to consider 50% of sales to farmers who were members of Assessee society—Rest 50% was being estimated as made to non-members—This estimation should not be considered as guiding factor in future—Appeals filed by Assessee partly allowed.</span></span></em></strong></div>
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<i><em><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><span style="font-size: small !important; line-height: 13.91px;">Sale of diesel to the farmers who are members of the assessee society would fall within the meaning of expression “other articles intended for agriculture for the purpose of supplying them to its members”. Thus if diesel is being supplied to the farmers for agricultural use, then the profit would qualify for deduction under section 80P(2) of the Act. However, we find that assessee has not been able to maintain specific details demonstrating the sales exclusively made to the farmers and who have used such diesel for agricultural operation. In the past assessee has been claiming deduction to the extent of 70% on the ground that only 30% of the sales were made to the outsiders, but this figure has always been adopted by the assessee on estimate basis</span><span style="font-size: small !important; line-height: 13.91px;">. </span><span style="font-size: small !important; line-height: 13.91px;">It is not possible to verify the sale bills at this stage because to identify purchasers out of the sale bills is quite difficult for any adjudicator. Thus in the totality of facts and circumstances of the case we direct the AO to consider 50% of the sales to the farmers who are members of assessee society. The rest 50% is being estimated as made to the non-members. This estimation should not be considered as guiding factor in future. (para 5)</span></span></em></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Conclusion</span></u></div>
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<i><em><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small; line-height: 13.91px;">Sale of diesel to the farmers who are members of the assessee society would fall within the meaning of expression “other articles intended for agriculture for the purpose of supplying them to its members”, hence, diesel being supplied to the farmers for agricultural use, would qualify for deduction under section 80P(2) of the Act.</span></em></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">In favour of</span></u></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Assessee (partly)</span></i></div>
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<u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Counsel appeared:</span></u></div>
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<i><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">S. N. Divetia, AR for the Appellant.: Somogyan Pal, Sr.DR for the Respondent</span></i></div>
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<b><u><span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">RAJPAL YADAV, JM.</span></u></b></div>
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">1. The present three appeals are directed at the instance of assessee against separate orders of CIT(A) dtd. 23/09/2013, and dtd.1.10.2013, passed for Asst. Years 2009-10, 2008-09 & 2010-11 respectively. The grounds of appeal taken by the assessee are not in consonance with Rule-8 of ITAT Rules, 1963. They are descriptive and argumentative in nature. In brief the grievance of the assessee is that ld. CIT(A) has erred in upholding the disallowance of deduction under section 80P(2)(iv) of the Income-tax Act, 1061 (in short the Act) in respect of the profit earned from diesel pump division.</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2. The facts on vital points are common, therefore, for the sake of convenience, we take the facts for Asst. Year 2008-09. Brief facts of the case are that the assessee is a co-operative society alleged to have been established in 1958. It is engaged in the business of selling fertilizers, petrol, diesel and retail consumer items as well as providing credit facilities to its members through bank etc. The assessee is assessed to tax from the Asst. Year it came into existence. It has filed returns of income in all these three years declaring Nil income. The ld. AO has computed the income these years as under :-</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">For AY 2008-09</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; margin-left: 49.6pt;"><tbody>
<tr style="height: 1pt;"><td style="border: 1pt solid black; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income as per return of income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.Nil</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from diesel and petrol as per account filed by the assessee</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.4,57,817/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from provision items including edible oils & Misc.</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.14,683/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.4,72,500/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Less: Deduction u/s 80P(2)©(ii)</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.50,000/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Taxable income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">`Rs.4,22,500/-</span></div>
</td></tr>
</tbody></table>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; margin-left: 46.35pt;"><tbody>
<tr style="height: 1pt;"><td style="border: 1pt solid black; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income as per return of income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.Nil</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from diesel and petrol as per account filed by the assessee</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.3,94,740/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from provision items including edible oils & Misc.</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.55,508/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Loss from Handloom, Hosiery & school dress</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.(-)759/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.4,49,489/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Less: Deduction u/s 80P(2)©(ii)</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.50,000/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Taxable income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">`Rs.3,99,489/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.45pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">i.e.</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 114pt;" valign="top" width="152"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.3,99,490/-</span></div>
</td></tr>
</tbody></table>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; margin-left: 49.6pt;"><tbody>
<tr style="height: 1pt;"><td style="border: 1pt solid black; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income as per return of income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.Nil</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from diesel and petrol as per account filed by the assessee</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.43,300/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Net profit from provision items including edible oils & Misc.</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.23,137/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Add: Loss from Handloom, Hosiery & School Dress</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.(-) 1,300/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Total income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.65,137/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Less: Deduction u/s 80P(2)©(ii)</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Rs.50,000/-</span></div>
</td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 215.5pt;" valign="top" width="287"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Taxable income</span></div>
</td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 107.05pt;" valign="top" width="143"><div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">`Rs.15,140/-</span></div>
</td></tr>
</tbody></table>
<br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">For AY 2009-10</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">For AY 2010-11</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. The appeal to the CIT(A) did not bring any relief to the assessee. The ld. counsel for the assessee has filed Paper Book running into 272 pages. He has also placed on record copies of registration certificates of the tractors owned by the members of the society. The ld. counsel for the society submitted that diesel is an item which is used by the farmers in the agricultural operation. Therefore, as per section 80P(2)(iv) any article intended for agricultural purposes and such articles are being supplied by the assessee than profits earned on the supply of such articles would qualify for exemption under section 80P(2) of the Act. He conceded to the fact that the assessee has not been maintaining specific account exhibiting the purchase and sale of diesel to the members only. In the past assessee has recognized 70% of its sale to the members and 30% to general public. This accounting method adopted by the assessee has always been accepted by the AO. This year ld. AO has construed that the total sale is being made to non-members and denied exemption under section 80P(2) of the Act to the assessee. For buttressing his contentions he placed on record copies of certain bills, copies of ledger account exhibiting different sales made by the assessee. He also placed on record details showing how members have deposited the amount with the assessee out of which sales were made to them.</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4. On the other hand, the ld. DR relied upon the order of A.O. She contended that assessee failed to demonstrate the sales made to the members as well as sales made to the non-members. The assessee ought to have maintained accounts specifying its sales.</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">5. We have duly considered the rival contentions and gone through the record carefully. We deem it pertinent to note all the relevant provisions of section 80P(2) of the Act. It read as under :-</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">80P. (1) Where, in the case of an assessee being a co- operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely:</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(a) In the case of a co-operative society engaged in –</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(i) Carrying on the business of banking or providing credit facilities to its members, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(ii) A cottage industry, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(iii) The marketing of agricultural produce grown by its members, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(iv) The purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(v) The processing, without the aid of power, of the agricultural produce of its members, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(vi) The collective disposal of the labour of its members, or</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"></span><br />
<div style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">A bare perusal of sub-clause (iv) of section 80P(2) (a) would indicate that the sale of diesel to the farmers who are members of the assessee society would fall within the meaning of expression “other articles intended for agriculture for the purpose of supplying them to its members”. Thus if diesel is being supplied to the farmers for agricultural use, then the profit would qualify for deduction under section 80P(2) of the Act. However, we find that assessee has not been able to maintain specific details demonstrating the sales exclusively made to the farmers and who have used such diesel for agricultural operation. In the past assessee has been claiming deduction to the extent of 70% on the ground that only 30% of the sales were made to the outsiders, but this figure has always been adopted by the assessee on estimate basis. This situation put us in a difficult position. Taking into consideration the material placed on record, though remained unverifiable and it is not possible to verify the sale bills at this stage because to identify purchasers out of the sale bills is quite difficult for any adjudicator. Thus in the totality of facts and circumstances of the case we direct the AO to consider 50% of the sales to the farmers who are members of assessee society. The rest 50% is being estimated as made to the non-members. This estimation should not be considered as guiding factor in future. We hope that assessee would maintain specific details exhibiting sales made to the farmers. Rather the assessee should keep specific account of each member who is owner of a tractor or a diesel pump or any other machinery required for agricultural operation. The AO can verify such details in future by calling that farmer. We allow the appeal partly and direct the AO to re-computed the income of assessee after treating 50% sales in the diesel pump operation division made to the members. The profit on such sales could be considered as eligible for deduction under section 80P(2).</span></div>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small; line-height: 13.91px;">6. In the result, all the appeals filed by the assessee are partly allowed.</span></div>
</div>
</div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-45429979343023478952015-10-09T23:03:00.000-07:002015-10-09T23:03:24.643-07:00First proviso to section 2(15) has no role to play in cancellation or granting of trust’s registration <div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">IN THE ITAT AMRITSAR BENCH</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Kapurthala Improvement Trust v. Commissioner of Income-tax, Jalandhar</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">PRAMOD KUMAR, ACCOUNTANT MEMBER</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">AND A. D. JAIN, JUDICIAL MEMBER</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">IT APPEAL NO. 732 (ASR.) OF 2013</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">[ASSESSMENT YEAR 2009-10]</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">JUNE 11, 2015</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Y.K. Sud for the Appellant. Tarsem Lal for the Respondent.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">ORDER</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Pramod Kumar, Accountant Member – By way of this appeal, the assessee has challenged correctness of the learned Commissioner’s order dated 18th November 2013 withdrawing registration under section 12AA(3) of the Income Tax Act, 1961.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2. Grievances raised by the assessee are as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">“1. That the CIT was not justified in cancelling the Registration of the trust granted u/s. 12AA on invoking the provisions of section 12AA(3).</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2. That the CIT clearly ignored the submissions made by the assessee in response to his show cause notice and passed a mechanical order.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. That the action of the CIT of cancellation of the registration amounts to contempt of the Punjab & Haryana High Court who have approved and declared the objects of the Improvement Trusts in Punjab as charitable and of General Public utility in the case of Moga Improvement Trust. The CIT failed to appreciate that the order of the High Court was binding tooth and nail.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4. That the CIT has failed to record his satisfaction on the two conditions prescribed in section 12AA(3) regarding its violation and has clearly exceeded his powers in the cancellation of the registration.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">5. That the CIT failed to appreciate the amendment in law in section 13(8) and 143(3) proviso made by the Finance Act 2012 w.e.f. 1.4.2009 and also the Board Circular No. 11 of 2008 dated 19.12.2008 which was binding upon him.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">6. That CIT had no power to cancel the registration with retrospective effect of 1.4.2009.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">7. That the order of the CIT is against the law and facts of the case.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee before us is a body set up under the Punjab Towns Improvement Act, 1922. On 22nd September 2005, the assessee filed an application seeking registration under section 12AA of the Act but the same was rejected by the then Commissioner vide order dated 18th May 2007. When the order so declining the registration was carried in appeal before this Tribunal, grievance of the assessee was upheld and he became entitled to the benefit of registration. This decision of the Tribunal was challenged before Hon’ble Punjab & Haryana High Court but Their Lordships declined to interfere in the matter.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4. The matter, however, did not rest at that.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">5. On 20th September 2013, learned Commissioner required the assessee to show cause as to why the registration so granted to the assessee not be withdrawn. In this show cause notice, the Commissioner, inter alia, stated as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">“Sub:- Review of registration granted u/s 12(AA)- Regarding.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Please refer to the subject cited above.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2. In this connection, it is reported by the A.O. that as per records, the assessee trust applied for grant of registration under section 12AA of Income Tax Act, 1961 which was rejected by my predecessor on the ground that the activities of the trust as spelt out in Punjab Town Improvement Act 1922 are clearly in the nature of commercial activities, intended to earn profit and not of charitable nature. In appeal, the ITAT, Amritsar, decided in the favour of the trust and allowed the registration to the trust. Against the order of Ld. ITAT, the Hon’ble Punjab & Haryana High Court dismissed the appeal of the revenue. So the trust is enjoying registration u/s 12A of the Act.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. The case was decided in your favour much before the insertion of first proviso to section 2(15) by the Finance Act, 2008 w.e.f. 01.04.2009 according to which “the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3.1 Further, recently, the Hon’ble ITAT, Amritsar vide its order dated 23.07.2013 in ITA No. 274(Asr)/2013 in the case of Improvement Trust, Phagwara, decided the case in favour of revenue upholding the order passed by my predecessor vide which registration u/s 12AA was withdrawn. It is held by the Hon’ble ITAT in the above referred order that the Commissioner of Income Tax, Jalandhar-II has passed a well reasoned order by respectfully following the order of various Courts. It is worth mentioning that my predecessor while passing the order in the case of Improvement Trust, Phagwara followed the following decision of Hon’ble Courts/Tribunals :—</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(i) ITA No. 36(Asr)/2012 dated 18.12.2012 in the case of Improvement Trust, Bathinda v. CIT, Bathinda.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(ii) 103 TTJ-Chd-988 dated 01.06.2006 in the case of Puda v. CIT</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(iii) 165 CTR (SC): (2001) 247 ITR 785 (SC) in the case of Asstt. CIT v. Thanthi Trust.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Aims/objects and activities of your trust are same as are in the case of Improvement Trust, Phagwara.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. Keeping in view the above facts and amendment made to section 2(15) of the Income Tax Act, 1961 w.e.f. 01.04.2009 it is proposed to review registration granted to the trust u/s 12AA of the I.T. Act. You are therefore, afforded an opportunity to show cause as to why action suggested above may not be taken.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">6. So far as the present appeal is concerned, it is sufficient to note that the assessee, inter alia, pointed out that “Section 12AA(3) mandates cancellation of registration on satisfaction of the two conditions i.e. (i) that the activities of the trust are not genuine, and (ii) that the activities of the trust or the institution are not being carried out in accordance with the objects of the trust or the institution” and that “in the present case, none of these two conditions have been satisfied”. Without dealing with this contention of the assessee but holding that that, on merits, the assessee did not deserve registration under section 12AA, learned Commissioner withdrew the registration. While doing so, learned Commissioner observed as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">“9. As per amended definition of charitable purpose u/s. 2(15) of the Act with effect from 01.04.2009, the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on any activity in the nature of trade, commerce or business or rendering any service in relation to any trade, commerce or business for a cess of fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity. As discussed above since the applicant is engaged in the activity in the nature of trade, commerce and business and is engaged in the trade of real estate business with a profit motive, its engagement in any of the activities as stated above will not affect its character as such since the proviso provides that the advancement of any other object of general public utility shall not be regarded as charitable purpose if it involves the carrying on any activity in the nature of trade, commerce or business or rendering any service in relation to any trade, commerce or business for a cress or fee or any other consideration irrespective of the nature of use or application, or retention, of the income from such activity.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">The activities of the assessee are aimed at earning profit as it is carrying on activity in the nature of trade, commerce or business. Further profit making by the assessee is not mere incidental or by product of the activity of the assessee. The main pre-dominant purpose of assessee is making profit, it is real object of the assessee and also there is no spending of the income exclusively for the purpose of charitable activities and profits of the assessee not used for charitable purpose under the terms of the object and there is no obligation on the part of the assessee to spend on ‘charitable purpose’ only.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">10. It is now pertinent to refer to the observations of the Hon’ble Income Tax Appellate Tribunal Chandigarh vide their judgment dated 01.06.2006 in the case of PUDA v. CIT (2006) 103 TTJ Chd 988 with regard to the provisions of section 2(15) of the Income Tax Act, 1961. It is held in the said order that this issue requires deliberation from a different angle whether the assessee was constituted to provide any charity to the public at large or to satisfy the needs for housing accommodation for the people of Punjab and also planning and development of the cities, towns and villages or whether the development in such a way is of charitable nature. A plea was raised by the learned counsel for the assessee that funds are provided by the Punjab Government or generated by the assessee itself. To generate its funds for carrying out its objects, the assessee is acquiring lands, developing them and selling the plots to the general public who apply for the same. Even the economically weaker strata of the society is generally applying. It is not the case that the assessee is allotting houses to the poor masses free of cost. While delivering the judgment in the case of PUDA, the Hon’ble Chandigarh Bench of Income-tax Appellate Tribunal has also referred to a case adjudicated by Hon’ble apex Court in the case of Asstt. CIT v. Thanthi Trust (2001) 165 CTR (SC) 681 : (2001) 247 ITR 785 (SC) where the Honble Court has deliberated upon the issue of charitable purposes and held that where certain activities of an assessee claiming exemption u/s. 12AA of the Act are such where profit motive is involved and where no charity towards general public is being done, the applicability of section 2(15) is certainly established and benefits of exemption u/s 12AA are not allowable to such an assessee.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">11. The reliance was also placed on the decision of Hon’ble ITAT, Amritsar Bench, Amritsar contained in their order dated 18.12.2012 passed in ITA No. 366(ASR)/2012 in the case of the Improvement Trust, Bathinda v. CIT, Bathinda,wherein the order passed by the CIT, Bathinda u/s. 12AA(3) of the Act on 20.7.2012 has been upheld. In the order dated 20.7.2012 the CIT, Bathinda had withdrawn the exemption allowed to the Improvement Trust, Bathinda u/s 12AA of the Act on the exactly similar set of facts and circumstances of the case as brought out in the present case before me. The Hon’ble ITAT while upholding the order of the CIT, Bathinda has observed as under:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">“7.2. After perusing the aforesaid activities, we are of the view that the ld. First appellate authority has rightly held that the land of the assessee trust is in the same category of other real estate products available in the market offered by the private colonizers and real estate agents. Because the assessee advertised this value added product widely in print as well a electronic media so as to attract a large number of customers/clients from all the general public including the financially sound persons from the public.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">7.3. It is a matter of record that the assessee-trust sells off all these plots by organizing a public auction, where through the bidding process and the competition generated in it, the prices of their land keep escalating and finally, the land is sold off to the highest bidder. The surplus income which is generated through the sale of land is again used for buying more land, developing it and selling it the same way, thereby generating more profit. On the facts and circumstances explained above, we are of the view that the assessee trust is not merely a mediator in buying and selling of land to the general public. Rather it operates in a business oriented way on the well known principles of profit generation. Therefore, the activities of the assessee trust clearly constitute activities in the nature of trade, commerce or business because no plots are reserved for any socio-economically lower society, there is no element of donation or support to any cause, none of the land is earmarked to be sold at no profit, no loss basis to any person whatsoever, which clearly establish that the element of charity is clearly absent from the activities of the trust, which is contrary to the provisions of section 2(15) of the Act amended w.e.f. 01.04.2009 and the Ld. CIT Bathinda has rightly issued show cause notice to the assessee trust for cancelling the registration already granted to the assessee-trust which the ld. CIT, Bathinda has the power under section 12A(3) of the Act.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">7.4 After going through the aforesaid, we are of the considered opinion that the ld. CIT(A) has rightly cancelled the registration granted to the assessee trust w.e.f. 12.06.2003 in view of the amended provision of section 12AA(3) of the Act. In the recent case, the ld. CIT, Bathinda is fully satisfied that the activities of the assessee-trust are not genuine and not being carried out in accordance with the objects of the assessee-trust, as discussed above.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">12. Further, recently, the Hon’ble ITAT, Amritsar vide its order dated 23.07.2013 in ITA No. 274(ASR)/2013 in the case of Improvement Trust, Phagwara, decided the case in favour of revenue upholding the order passed by Commissioner of Income Tax, Jalandhar-II, Jalandhar vide which registration u/s 12AA has been withdrawn. It is held by the Hon’ble ITAT in the above referred order that the Commissioner of Income Tax, Jalandhar-II, Jalandhar has passed a well reasoned order by respectfully following the order of various Courts. The ITAT relied upon the decision of Improvement Trust, Bathinda (supra).</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">13. As regards the reliance of the assessee on CBDT circular No. 11/2008 dated 19.12.2008 mentioned by the assessee’s counsel in his arguments, it is significant to mention here that in this circular it is mentioned that what is the advancement of any other object of general public utility is a question of fact and whether an entity is carrying on an activity in the nature of trade, commerce or business is a question of fact which will be decided on the nature, scope, extent and frequency of the activity. In para 3.2 of this circular it is further mentioned that each case would, therefore, be decided on is own facts and no generalization is possible.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Thus this circular’s context is not applicable in this case, since it is clearly mentioned that no generalization about the fact that whether an entity is involved in the trade, commerce or business. Moreover, this circular was issued by the CBDT prior to the enforcement of the amendment in the provisions of section 2(15) of the Act.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Further, the submissions made in para (6) of the reply to show cause notice, as reproduced earlier, are concerned, one at the best academic in nature. As per provisions of second proviso to section 2(15) section 13(8) and proviso to 143(3) of I.T. Act the assessee has to be treated as a taxable entity, as it is nowhere brought on records that in any of the A.Y.s its receipts are below Rs. 25 Lacs. In any case when after amendments as referred above and in view of the decisions of Hon’ble ITAT, Amritsar (supra) the benefit of exemption u/s. 12AA of I.T. Act is not available to assessee.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">14. In view of the above stated facts and circumstances of the case, I am satisfied that the activities of the applicant authority are not charitable in nature within the meaning of proviso to section 2(15) of the Income Tax Act, 1961. Further in view of the facts on record, the applicant authority does not qualify to be treated as a charitable institution and registration deemed to have been granted to it is required to be withdrawn in view of the amended provisions of the Income Tax Act, 1961 and in view of the discussion made in the preceding paragraphs.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">15. Accordingly, in view of amendment in section 2(15) of Income Tax Act and relying on the decision of ITAT, Amritsar Bench, Amritsar in the case of Improvement Trust Phagwara dated 23.07.2013, the registration of the trust u/s 12AA of Income Tax Act, 1961 is hereby cancelled w.e.f. 01.04.2009.”</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">7. The assessee is aggrieved and is in appeal before us.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">8. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">9. We find that, as learned counsel rightly points out, the scope of powers of the Commissioner under section 12AA(3) for cancellation of registration already granted is very limited in scope inasmuch as it can only be invoked only when (i) that the activities of the trust are not genuine, and (ii) that the activities of the trust or the institution are not being carried out in accordance with the objects of the trust or the institution. Section 12AA(3) specifically provides that when the CIT “is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution”. It is not even the case of the CIT that the activities of the assessee trust are “not genuine” or that the “activities of the assessee are not being carried out in accordance with the objects” of the assessee trust. The case of the CIT rests on the first proviso to Section 2(15) coming into play on the facts of this case but then such a factor cannot warrant or justify the powers under section 12AA(3) being invoked. We, therefore, uphold the grievance of the assessee that the action of the learned Commissioner, in withdrawing the registration under section 12AA(3), was well beyond the limited scope of the powers conferred on him by the statute. The assessee, therefore, must succeed in the appeal for this short reason alone.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">10. There is, however, a much more fundamental a reason for the assessee succeeding in this appeal. In our considered view, the considerations with respect to the first proviso to Section 2(15) coming into the play and, for that reason, the objects of an assessee trust or institution being held to be not covered by the definition of ‘charitable purposes’, have no role to play in the matters relating to registration of a trust or institution under section 12A or 12AA – whether in respect of granting or declining of a registration or in respect of cancellation, even if otherwise permissible, of a registration. A closer look at the scheme of the Act would unambiguously show this aspect of the matter.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">11. Let us begin by taking a look at Section 2(15) which defines charitable activities and first and second provisos thereto. These statutory provisions are as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(15) “charitable purpose” includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other object of general public utility:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is twenty-five lakh rupees or less in the previous year: (Emphasis supplied)</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">12. What is clear from the riders in the above definition of ‘chartable purposes’ is that rider set out therein, under first proviso to Section 2(15), can only come into play on year to year basis and not in absolute terms. The same activity can be hit by this rider in one year and thus the assessee trust or institution may not qualify to be existing for ‘charitable purposes’, and that very activity of the assessee trust or institution may remain unaffected by the same disabling provision for another year. The reason is that it is not only the nature of the activity but also the level of activity which, taken together, determine whether this disabling clause can come into play. The safeguard against the objects of the trust being vitiated insofar as their character of ‘charitable activities’ is concerned, is inbuilt in the provisions of Section 13(8) which was brought into effect with effect from the same point of time when proviso to Section 2(15) was introduced -i.e. with effect from 1st April 2009. Section 13(8) provides as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">”Section 13-Section 11 not to apply in certain cases.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(8) Nothing contained in section 11 or section 12 shall operate so as to exclude any income from the total income of the previous year of the person in receipt thereof if the provisions of the first proviso to clause (15) of section 2 become applicable in the case of such person in the said previous year”.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">13. While introducing this amendment, Explanatory Memorandum to the Finance Bill 2012 fhttp://indiabudgetnic.in/budget2012-2013/ub2012-13/mem/meml.pdFI explained the reasons and backdrop of this legislative amendment as follows:</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Assessment of charitable organization in case commercial receipts exceed the specified threshold</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Sections 11 and 12 of the Act exempt income of any charitable trust or institution, if such income is applied for charitable purposes in India and such institution is registered under section 12AA of the Act . . . . . .Section 2(15) of the Act provides definition of charitable purpose. It includes “advancement of any other object of general public utility” as charitable purpose provided that it does not involve carrying on of any activity in the nature of trade, commerce or business.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2nd proviso to said section provides that in case where the activity of any trust or institution is of the nature of advancement of any other object of general public utility, and it involves carrying on of any activity in the nature of trade, commerce or business; but the aggregate value of receipts from the commercial activities does not exceed Rs. 25,00,000 in the previous year, then the purpose of such institution shall be considered as charitable, and accordingly, the benefits of exemption shall be available to it. Thus, a charitable trust or institution pursuing advancement of object of general public utility may be a charitable trust in one year and not a charitable trust in another year depending on the aggregate value of receipts from commercial activities.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">There is, therefore, need to expressly provide in law that no exemption would be available for a previous year, to a trust or institution to which first proviso of sub-section 2(15) become applicable for that particular previous year. However, this temporary excess in one year may not be treated as altering the very nature of the trust or institution so as to lead to cancellation of registration or withdrawal of approval or rescinding of notification issued in respect of trust or institution.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Therefore, there is need to ensure that if the purpose of a trust or institution does not remain charitable due to application of first proviso on account of commercial receipt threshold provided in second proviso in a previous year. Then, such trust or institution would not be entitled to get benefit of exemption in respect of its income for that previous year for which such proviso is applicable. Such denial of exemption shall be mandatory by operation of law and would not be dependent on any withdrawal of approval or cancellation of registration or a notification being rescinded.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">It is, therefore, proposed to amend . . . . . section 13 . . . . . of the Act to ensure that such organization does not get benefit of tax exemption in the year in which it’s receipts from commercial activities exceed the threshold whether or not the registration or approval granted or notification issued is cancelled, withdrawn or rescinded.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">This amendment will take effect retrospectively from 1st April, 2009 and will, accordingly, apply in relation to the assessment year 2009-10 and subsequent assessment years. (Emphasis supplied)</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">14. It is thus clear that the impact of the proviso to Section 2(15) being hit by the assessee will be that, to that extent, the assessee will not be eligible for exemption under section 11 of the Act. The mere fact that the assessee is granted registration under section 12 A or 12AA as a charitable institution will have no bearing on this denial of registration. As a corollary to this legal position, the fact that the objects of the assessee may be hit by the proviso to section 2(15) cannot have any bearing on the grant, denial or withdrawal of the registration under section 112AA.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">15. It is also important to bear in mind the fact that in terms of the second proviso to Section 2(15), which was introduced by the Finance Act 2010 with retrospective effect from 1st April 2009, the legal prescription set out in first proviso to section 2(15) cannot come into play “if the aggregate value of the receipts from the activities referred to therein is twenty-five lakh rupees or less in the previous year”. Clearly, therefore, in order that the benefits under section 11 are declined to the assessee on the ground that it is engaged in such activities as may be hit by the first proviso to Section 2(15), not only the assessee must be engaged in carrying out such activities as may hit the first proviso to Section 2(15) but also the receipts of the assessee from such activities must exceed a specified limit. The second limb of this disability clause needs to be satisfied with respect to each assessment year. Obviously, therefore, this aspect of the matter cannot be examined at the stage of the grant or withdrawal of registration since the registration exercise is a one time exercise and not something which must be done for each assessment year separately. That is precisely the reason, as noted in the Explanatory Memorandum, as to why the remedy for the activities being hit by the first proviso to Section 2(15) lies not in grant, decline or withdrawal of registration but in declining the benefits of exemption under section 11 on that count, on year to year basis, notwithstanding the status of registration.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">16. The scheme of the Act, in this respect, is thus clear. The status of registration under section 12A or 12AA has no bearing, as recognized in Section 13(8), on the availability of exemption under section 11. To the extent income of the assessee arises from the activities hit by the first proviso to Section 2(15) in any assessment year, the assessee will be disentitled for exemption under section 11 to that extent. It is also important to bear in mind the fact that the disentitlement for exemption under section 11, as a result of the activities of an assessee being held to be not for charitable purposes under section 2(15) read with provisos thereto, is in respect of entire income of the assessee trust or institution but only for the assessment year in respect of which the first proviso to Section 2(15) is triggered.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">17. If the status of registration is to be declined to an assessee only on the ground that some of the objects may be hit by the first proviso to Section 2(15) but the assessee’s receipts from such activities do not exceed specified threshold in a particular assessment year, the assessee will be subjected to undue hardship in the sense that while the assessee will be disentitled to exemption under section 11 due to denial of registration under section 12 A or 12AA which is sine qua non for admissibility of exemption under section 11. On the other hand, if the status of registration is granted to the assessee even when some of the objects may be hit by the first proviso to Section 2(15) and the assessee’s receipts from such activities do exceed specified threshold, no prejudice will be caused to the legitimate interests of the revenue because, notwithstanding the status of registration and by the virtue of section 13(8), the assessee will not be eligible for exemption under section 11 in respect of such income. It is only elementary that a statutory provision is to be interpreted ut res magis valeat quam pereat, i.e., to make it workable rather than redundant.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">18. The considerations about the possibilities of the first proviso to Section 2(15) coming into play affecting the grant, decline or withdrawal of registration under section 12AA will thus lead to wholly avoidable undue hardships to the assessee, will be unworkable in practice and be contrary to the scheme of the Act.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">19. In view of the above discussions, in our considered view, the considerations about the possibilities of first proviso to Section 2(15) into play are wholly extraneous in the present context. As the withdrawal of registration is solely based on these considerations, the very foundation of the learned Commissioner’s action is unsustainable in law and consists of reasons which are not at all relevant in the context of registration status under section 12A or 12AA of the Act. For this reason also, the action of the learned Commissioner is wholly devoid of any legally sustainable merits.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">20. Having decided the issue in favour of the assessee on these issues, we see no need to address ourselves, at this stage, to the question whether the first proviso to Section 2(15) could indeed apply on the facts and in the circumstances of this case. That aspect of the matter is wholly academic as on now.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">21. In the result, the appeal is allowed.</span><br />
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-44889587105504216412015-10-09T22:57:00.000-07:002015-10-09T22:57:04.103-07:00No section 12A registration if Society formed only for benefit of Christians Community<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"> No section 12A registration if Society formed only for benefit of Christians Community</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Fact that assessee society was formed only for benefit of Christians community definitely could form a ground for denial of its registration</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">In as much as its income is liable to be excluded for consideration under sub section 11 and 12 where nothing had been brought on record to show that assessee-society had undertaken any charitable project in a wholly impartisan manner that is, devoid of any consideration as to religion, either in terms of people employed or support provided or served thereby; thus, assessee’s appeal for registration as a charitable institution under section 12AA was to be rejected</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">IN THE ITAT PATNA BENCH</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Buxar Diocesan Society v. Commissioner of Income-tax -1, Patna</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">A.D. JAIN, JUDICIAL MEMBER</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">AND SANJAY ARORA, ACCOUNTANT MEMBER</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">IT APPEAL NO. 104 (PATNA) OF 2012</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">JULY 20, 2015</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Shikesh Jha for the Appellant. Rishi Raj Sinha for the Respondent.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">ORDER</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">Sanjay Arora, Accountant Member – This is an Appeal by the Assessee agitating the Order u/s.12AA(b)(ii) of the Income Tax Act, 1961 (‘the Act’ hereinafter) dated 23.05.2012 by the Commissioner of Income Tax-I, Patna (‘CIT’ for short), rejecting the assessee’s appeal for registration as a charitable institution u/s.12AA of the Act.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">2. The controversy involved in the instant case is the maintainability or otherwise in law of the denial of registration as envisaged section 12A r/w s.12AA of the Act to the assessee-society vide the impugned order.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">3. The brief facts of the case are that the assessee, a society registered under the Societies Registration Act, 1860, applied for registration u/s.12A(1)(aa) on 25.11.2011. The ld. CIT, i.e., the competent authority under the Act, in view of clauses 3(i), 3(ii) and 3(vii) of the assessee society’s ‘Aims’ and ‘Objects’, as well as the fact that its membership, governed by clause 4 of its Charter, is restricted to Priests incardinated in the Diocese of Buxar and member of the religious order/congregations, held it to be established or formed for the benefit of a particular religious community, i.e., the Christian community, so that section 13(1)(b) of the Act, which reads as under, is attracted and, accordingly, denied registration, leading to the present appeal by the assessee:</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">’13. (1) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof—</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(a) **<span class="Apple-tab-span" style="white-space: pre;"> </span>**<span class="Apple-tab-span" style="white-space: pre;"> </span>**</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">(b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste.’ [emphasis supplied]</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4. We have heard the parties, and perused the material on record.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4.1 The assessee’s case as made before us, was that it is both, i.e., a charitable as well as a religious society (institution). As such, even if the condition of section 13(1)(b) stands satisfied per se, the same would not be applicable in-as-much as it is a composite Trust, bearing both a charitable as well as a religious character. That is, the same would not disqualify it u/s.13(1)(b) of the Act, which is applicable only to a charitable trust/institution and, consequently, operate to deny it registration u/s.12AA of the Act. Toward the same, it relies on the decision in the case of CIT v. Barkete Saifiyah Society [1995] 213 ITR 492 (Guj), besides others by the Tribunal.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">The first thing, therefore, that we ought to and, thus, consider is the character of the assessee-society and, toward which we may reproduce its ‘Object’ clause, as under:</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">‘ The objects for which the Society is established is to perform works of charity, social, moral, spiritual and corporal which include education, relief to the poor, medical relief through health care and any other objects of general utility and to that end:</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">i.<span class="Apple-tab-span" style="white-space: pre;"> </span>To establish churches, convents, presbyteries and other religious. educational and charitable institutions of its choice for the service and welfare of the people in general and of Christians in particular and to provide for their support, maintenance and development for carrying out the purposes of the society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">ii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To provide for the proper Christian education and vocational training of the children and youth of the Christian Community and to the extent possible also of other scholars who resort to its institutions, and for that purpose to establish, administer and maintain schools, colleges, and other educational and vocational and professional-training institutions.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">iii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To organize and support education and training of children and adults, both formal and non-formal, and thereby to promote a healthy human, cultural, social, political and economic environment in society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">iv.<span class="Apple-tab-span" style="white-space: pre;"> </span>To render medical assistance to the needy through public health centers, health care centers, hospitals and dispensaries.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">v.<span class="Apple-tab-span" style="white-space: pre;"> </span>To establish homes and welfare centers for the aged, sick and destitute and conduct and promote social welfare programmes for the needy irrespective of their caste creed, race or social status.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">vi.<span class="Apple-tab-span" style="white-space: pre;"> </span>To educate, maintain and support at the discretion of the Governing Body those engaged for the works of the Society in its own institutions or other institutions and to provide such personnel with residential accommodation, and equip them suitably with necessary facilities for their work and study and to maintain them during the period of training either free of cost or for a consideration.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">vii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To provide for the training and formation of priests; religious and lay persons for the more effective service of the Christian Community and of the people at large especially those belonging to the weaker sections of the society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">viii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To diffuse useful knowledge and information, human values and ideals through the medium of newspapers, films, journal, bulletins, audio visuals and other means of communication.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">ix.<span class="Apple-tab-span" style="white-space: pre;"> </span>To organize, promote, contribute and assist in social, economic, and cultural programmes aimed at promotion of social, religious, cultural and economic life and welfare of all persons and especially of the weaker sections of the Society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">x.<span class="Apple-tab-span" style="white-space: pre;"> </span>To initiate, promote, and support projects and programmes aimed at preservation and promotion of a healthy secular, human and ecological environment.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xi.<span class="Apple-tab-span" style="white-space: pre;"> </span>To render assistance to victims of natural calamities such as earthquakes, famine, floods, fire, epidemics, etc., irrespective of caste or creed.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To promote, alter, extend, modify or terminate any social and development services to promote the establishment of a just, fair, and caring social order and for the alleviation and eradication of poverty.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xiii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To organize conferences, meetings, seminars, fees, etc., for promoting and furthering the aims of the society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xiv.<span class="Apple-tab-span" style="white-space: pre;"> </span>To collaborate with the government and voluntary agencies in the development, promotion and execution of charitable social economic and humanitarian.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xv.<span class="Apple-tab-span" style="white-space: pre;"> </span>To establish, promote, or assist in the establishment and promotion of other societies and voluntary organizations with the same or similar charitable objectives as the society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xvi.<span class="Apple-tab-span" style="white-space: pre;"> </span>To collaborate with and assist other voluntary agencies in formulation and preparation of development projects and programmes and help in implementation and evaluation of the same.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xvii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To cooperate with national and international societies/ agencies for furthering tile attainment of the charitable objects of the Society.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">xvii.<span class="Apple-tab-span" style="white-space: pre;"> </span>To do all things that may be incidental, conducive, expedient or necessary for the better attainment of the purposes of the society. [emphasis, ours]</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">It is well settled that for the purpose of ascertaining or determining the nature or the character of a trust/institution, it is the predominant object or purpose governing its formation or establishment that is to be seen (refer: Addl. CIT v. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1 (SC)). We are unable to, on both a cursory and even a careful reading of the same, see as to how the assessee could be said to be a religious institution or society, or even partly so. In fact, each of the defining elements of a ‘charitable purpose’, i.e., for which it is established, as stated in its preamble, find mention in the definition of the term ‘charitable purpose’, inclusively defined u/s.2(15) of the Act, i.e., as obtaining at the relevant time. The Hon’ble Courts have explained ‘religious purpose’ to be one relating to religion, which would encompass objects relating to observance of rituals or ceremonies, propagation of tenets of the religion and other allied activities of the religious community. There is nothing in the object clause to suggest propagation of Christianity or the Christian religion, much less expressed in a manner so as to bestow upon it a religious character, but only to serve the said community in particular. Even if we were to consider the three object clauses which stand singled out and impugned by the ld. CIT, the same nowhere speak of or advert to any object of a religious purpose but only of a charitable purpose. Discussing each of the said clauses afore-referred, the first, Clause 3(i), speaks of establishment of different institutions for the service and welfare of the people, i.e., states of the establishment of different institutions through the modality or instrumentality of which it intends to operate for the welfare of the society or serve the people. Clause 3(ii) speaks of educational and vocational training through the establishment and administration of different types of educational institutions, including professional training institute, i.e., concerns education. Clause 3(vii) speaks of training of different functionaries for the service of the community at large and especially people belonging to the weaker sections of the society. None of these or the other clauses of the object clause of its Memorandum could be regarded as religious, if we are not to include charity, education, medical relief, relief to the poor, or otherwise being of social, moral or spiritual service/benefit to the community at large as being a religious purpose. The same would then be of no consequence in-as-much as charitable and religious purposes would become completely intermingled or intertwined, obliterating their definite purport and independent existence, which gets rendered as of no relevance or avail. True, one can discern a sprinkling or undertone of a religious purpose, as where the object clause/s speaks of establishment of a Church, Presbytery or other religious institution. Firstly, however, the same is again only for the ‘service’ and ‘welfare’ of the people, and in that sense charitable in nature. Again, being of moral or spiritual service, or the moral or spiritual upliftment of the people – which would though assume a religious color; there being admittedly areas of overlap between charitable and religious purposes, would definitely qualify to be regarded as a work of a charitable nature. To the extent the two coincide, the assessee-society would only be considered as being of a charitable nature, i.e., including within its field areas which could also be regarded as religious. As afore-stated, it is in any case the principal or the predominant object or purpose that the institution is formed to serve, which would define its character and which we find as charitable in all its different facets. We, accordingly, find little scope for the application of the decision in the case ofBarkete Saifiyah Society (supra) in the facts and circumstances of the case. The said decision in fact cannot be said to represent the correct law, as clarified in CIT v. Dawoodi Bohra Jamat [2014] 364 ITR 31 (SC). It was held by the Apex Court that s. 13(1)(b) is equally applicable to a composite trust, and what is intended is to exclude from exemption of s. 11 is a trust which is established for the benefit of any particular religious community or caste (pg. 51, p.45).</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4.2 Though subsumed in its argument, so that it does not lie in its mouth to contend to the contrary, we may yet consider, next, the validity of the charge on the assessee of it being formed for the benefit of a particular religious community, attracting section 13(1)(b) of the Act. We find the said intent to permeate the assessee’s objects, nay, Charter. The assessee-society; its name; condition of its membership; its objects, all read in conjunction and in harmony, clearly bring out the intent to serve the Christian community in preference to others, who are though not excluded, i.e., to the Christian community as being the intended beneficiary. It is nobody’s case that s. 13(1)(b) implies, or that the said provision mandates a total exclusion of all other categories, i.e., other than the preferred religious community. The word ‘only’ cannot be imported in s. 13(1)(b), i.e., prior to the words ‘for the benefit’ therein. Casus omissus cannot be lightly inferred (refer:Padmasundara Rao (Decd.) v. State of Tamil Nadu [2002] 255 ITR 147 (SC)). Then, again, what prevents a trust/institution, expressly for the benefit of a particular religious community, in-as-much as it seeks to protect, serve and promote its interest, cater only thereto. That is, it cannot be said to violate the terms or the mandate of its charter when it, through its projects, programs or other undertakings, serve only the interest of the said particular community, even as other communities are not excluded. People drawn from a cross-section of the society, affiliated by a bond of religion, as its beneficiaries would not adversely impact or detract from its public character (Ahmedabad Rana Caste Association v. CIT[1971] 82 ITR 704 (SC)). The word ‘only’ thus is not required in its Memorandum, and the words ‘in particular’ serve the desired purpose well. Its membership inures only to and the management vests only in a restricted category of Christians, i.e., belonging to a particular religious Order. It is to serve the said community, which is only a particular religious community, that the assessee-society is formed and is being administered. Further, it could be that, in reality, the society runs a school, for example, the majority students of which are non-christians. That, to our mind, would be besides the point. What is of relevance, and paramount, is that the assessee-society has the relevant power or mandate per its charter. That it may not exercise it, or may choose not to, is another matter (refer: Delhi Stock Exchange Association Ltd. v. CIT [1997] 225 ITR 235 (SC)). It is fully open for the assessee society to either not admit non-christians or admit them in a minority in-as-much as it is expressed to work for the benefit of the Christians in particular. The expression, ‘in particular’ in this context came for the consideration by the Apex Court in CIT v. Kamla Town Trust [1996] 217 ITR 699 (SC). In the facts of that case the object of the trust included construction of houses for workmen in general and, in particular, for the workmen, staff and other employees of the settlor company. The Hon’ble Court observed that though the provision relating to workmen in general did constitute a charitable object, the words ‘in particular for the workmen of the company’ negatived its public character, so that the trust could not be considered to have been established wholly for charitable purposes. What, we may again clarify, we are concerned with is the intent as expressed in the Charter, i.e., in terms of the primary purpose and the predominant object for which the institution is established, including the manner of its administration, so as to determine if it reveals a clear mandate to undertake charitable works with a view to benefit a particular religious community or not, a finding of fact, i.e., principally, the answer to which in the present case is an emphatic yes.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4.3 We may finally consider the issue as to if the assessee could be denied registration in view of attraction of section 13(1)(b) of the Act, i.e., considering that the same is expressed to preclude sections 11 and 12 of the Act. We consider it as so in-as-much as the same forms an abiding or defining feature of the applicant, in which case to what effect or purpose, one may ask, is the registration, i.e., if not toward grant of exemption u/ss. 11 and 12 of the Act, as observed by the tribunal in International School of Human Resources and Social Welfare Society (in ITA Nos. 72/Pat/2011 & 99/Pat/2012 dated 20.07.2015):</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">‘What, we are unable to comprehend, effect or purpose the registration would have where, notwithstanding the same, no benefit u/ss. 11 and 12 can be allowed in view of an abiding feature of the applicant’s constitution or its’ inherent nature.’</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">This aspect of the matter stands also gets support from the decision in the case of Dawoodi Bohra Jamat (supra), wherein the Hon’ble Court considered applicability or otherwise of s. 13(1)(b) as a valid ground while considering the issue of registration u/s. 12AA of the Act in-as-much as registration is a pre-requisite for availing the benefit of ss. 11 & 12 (pg. 41). In the facts of the case, we have found the assessee society to be formed for the benefit of the Christians community and which therefore definitely could form a ground for denial of its registration in-as-much as its income is liable to be excluded for consideration u/ss. 11 and 12 of the Act. Nothing has been brought on record to exhibit, or otherwise any case made out of, the assessee-society undertaking any (charitable) project in a wholly impartisan manner, i.e., devoid of any consideration as to religion, either in terms of the people employed; provided support (refer Cl. 3(vi)), or served thereby.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">4.4 We, accordingly, in view of the foregoing, find little merit in the assessee’s case.</span><br />
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif; font-size: x-small;">5. In the result, the assessee’s appeal is dismissed.</span><br />
<br /></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-48337899956028827282015-10-08T03:47:00.001-07:002015-10-08T03:47:36.842-07:00Deduction u/s 80P(2)(a)(i)<div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i><b>INCOME TAX OFFICER vs.BHAMHANATH CREDIT SOUHARDA SAHAKARI LTD.</b></i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>PANAJI TRIBUNAL</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>N.S. SAINI, AM & GEORGE MATHAN, JM.</i></div><div class="heldDiv" style="font-family: Verdana; font-size: small;"><div align="JUSTIFY"><i>ITA No. 300/PNJ/2015</i></div></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>Oct 5, 2015</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>(2015) 45 CCH 0101 PanajiTrib</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Legislation Referred to</u></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>Section 80P(2)(a)(i), 80P(4)</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Case pertains to</u></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>Asst. Year 2012-13</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Decision in favour of:</u></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>Assessee</i></div><div class="heldDiv" style="font-family: Verdana; font-size: small;"><div align="JUSTIFY"></div><div style="text-align: justify;"><span style="font-size: xx-small;"><strong><em><span style="font-size: small !important; line-height: 13.91px;">Deduction </span><span style="font-size: small !important; line-height: 13.91px;">u/s 80P(2)(a)(i)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Deduction in respect of income of co-operative societies</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Assessee society had filed return of income after claiming deduction u/s 80P(2)(a)(i) on grounds that it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Assessees claim of deduction u/s 80P(2)(a)(i) was rejected by AO on the ground that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of section 80P(4)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">CIT had</span><span style="font-size: small !important; line-height: 13.91px;">allowed assessees claim</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Held,</span></em></strong><em><span style="font-size: small !important; line-height: 13.91px;"> <strong>By virtue of introduction of clause(4) in section 80P, the ‘Co</strong></span><strong><span style="font-size: small !important; line-height: 13.91px;">-operative </span><span style="font-size: small !important; line-height: 13.91px;">banks’ have been taken out of the purv</span><span style="font-size: small !important; line-height: 13.91px;">iew of exemption granted u/s 80P whereas other entities/cooperative societies specified in other clauses of section 80P continue to enjoy such </span><span style="font-size: small !important; line-height: 13.91px;">exemptions</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;"> Karnataka High Court in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot had also held that as the assessee was not a cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve bank of India to carry on business , it was not a Cooperative Bank</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Thus, income earned by cooperative society from its act of lending money to members shall be eligible for exemption u/s 80P(2)(a)(i)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Bangalore Tribunal bench while deciding the issue in favour of the assessees has held that the cooperative societies are not doing banking business and therefore, the provisions of section 80P(4) are not applicable to them</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Panjim Tribunal bench had also held that where the assessee cooperative society engaged in providing credit facilities to its members and not accepting deposit from public as evidenced from their bye laws or the cooperative societies accepting other cooperative societies as members have held that those cooperative societies are entitles to the benefit of deduction u/s 80P(2)(a)(i)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Thus, co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption under section 80P(2)(a)(i)</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">CIT (A) had allowed the claim of deduction u/s 80P(2)(a)(i) by following the decisions </span><span style="font-size: small !important; line-height: 13.91px;">of the Karnataka High Court in the case of </span><span style="font-size: small !important; line-height: 13.91px;">Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot </span><span style="font-size: small !important; line-height: 13.91px;">and in the case of General Insurance Employees Cooperative Credit Society Ltd</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Revenue appeal dismissed.</span></strong></em></span></div></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Held</u></div><div class="heldDiv" style="font-family: Verdana; font-size: small;"><div align="JUSTIFY"><i></i></div><div style="margin-bottom: 0.0001pt; text-align: justify;"><i><span style="font-size: xx-small;"><em>By virtue of introduction of clause(4) in sec.80P, the ‘Co</em><em>-operative </em><em>banks’ have been taken out of the purv</em><em>iew of exemption granted under sec.80P whereas other entities/cooperative societies specified in other clauses of sec.80P continue to enjoy such </em><em>exemptions. The Explanation to sec.80P provides that “co</em><em>- </em><em>operative bank” and “Primary agricultural credit society” shall </em><em>have the meanings respectively assigned to them in Part V of the banking Regulation Act, 1949 (10 of 1949).</em></span></i></div><i><span style="font-size: xx-small;"></span><span style="font-size: xx-small;"></span><div style="margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: xx-small;"><em>The appellants have relied on the decision in the cases of (i)Karnataka High Court (Dharwad Bench )0rder in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014 wherein apart from the deciding on section 263 it has also held, on section 80P that " As the assessee is not a cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve bank of India to carry on business , it was not a Cooperative Bank. </em><em>In all these cases it was held that income earned by cooperative society from its act of lending money to members shall be eligible for exemption under section 80P(2)(a)(i) of the Act.</em></span></div><span style="font-size: xx-small;"></span><div style="margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: xx-small;"><em>Various ITATs across the country. The jurisdictional ITAT of Bangalore bench in a number of cases while deciding the issue in favour of the assessees has held that the cooperative societies are not doing banking business and therefore, the provisions of section 80P(4) are not applicable to them. The jurisdictional ITAT Panjim bench has also in a number of cases where the assessee cooperative society engaged in providing credit facilities to its members and not accepting deposit from public as evidenced from their bye laws or the cooperative societies accepting other cooperative societies as members have held that those cooperative societies are entitles to the benefit of deduction u/s 80P(2)(a)(i).</em></span></div><span style="font-size: xx-small;"></span><span style="font-size: xx-small;"></span><span style="font-size: xx-small;"><em>High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, which was followed in the cases of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014. Supra, has clearly held that a co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption under section 80P(2)(a)(i).</em></span><span style="font-size: xx-small;"></span><div style="margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: xx-small;"><em>Therefore, the intention of the legislature is clear. If a Co- operative Bank is exclusively carrying on banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co-operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co- operative agricultural and rural development bank. The Legislature did not want to deny the said benefits to a primary agricultural credit society or a. primary co- operative agricultural and rural development bank. They did not want to extend the said benefit to a Co-operative bank which is exclusively carrying on banking business i.e. the purport of this amendment. Therefore, as the assessee is not a Cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve Bank of India to carry on business, it is not a Co-operative bank. It is a Cooperative society which also carries on the business of lending money to its members which is covered under Section 80P{2)(a}(i) i.e. carrying on the business of banking for providing credit facilities to its members.</em></span></div><span style="font-size: xx-small;"></span><div style="margin-bottom: 0.0001pt; text-align: justify;"><span style="font-size: xx-small;"><em> The CIT (A) had allowed the claim of deduction u/s 80P(2)(a)(i) by following the decisions</em><em>of the Karnataka High Court in the case of </em><em>Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot </em><em>and in the case of General Insurance Employees Cooperative Credit Society Ltd. No contrary decision could be cited by the revenue. Tribunal had not found any good and justifiable reason to interfere with the order of the CIT (A), which was hereby confirmed and the ground of appeal of the Revenue was dismissed.In the result, appeal of the Revenue is dismissed.</em></span></div><div style="text-align: right;"><span style="font-size: xx-small;"><em><span style="font-size: small !important; line-height: 13.91px;">(Para 5,6,)</span></em></span></div></i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Conclusion</u></div><div class="heldDiv" style="font-family: Verdana; font-size: small;"><div align="JUSTIFY"><i></i></div><div style="text-align: justify;"><i><span style="font-size: xx-small;"><em><span style="font-size: small !important; line-height: 13.91px;">Where assessee was not a cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve bank of India to carry on business , it was not a Cooperative Bank</span><span style="font-size: small !important; line-height: 13.91px;"> and </span></em><em><span style="font-size: small !important; line-height: 13.91px;">thus, income earned by cooperative society from its act of lending money to members shall be eligible for exemption u/s 80P(2)(a)(i).</span></em></span></i></div></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>In favour of</u></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>Assessee</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Cases Referred to</u></div><div align="LEFT" style="font-family: Verdana; font-size: small;"><i>CIT vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014 </i><i>Mysore & Others vs. General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014</i><i>Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014</i><i>Taramani Manila Coop Credit Society vs. ITO Ward 1(2), Belgaum ITA 229 & 230/PNJ/2013dt 28.2.2014</i><i>ITO vs. Yeshwantpur Credit Coop Society Ltd ITA No. 717/Bang/2011 Dt 11.4.2012</i><i>CIT vs. Jafari Mom in Vikas Coop Credit Society Ltd ITA 442, 443 & 863 of 2013</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><u>Counsel appeared:</u></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><i>U.G. Ammangi – CA for the Assessee.: Siddappaji R.N. - DR for the Department</i></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"><b><u>N. S. SAINI, AM.</u></b></div><div align="JUSTIFY" style="font-family: Verdana; font-size: small;"></div><div style="font-family: Verdana; font-size: small; text-align: justify;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">1. This is an appeal filed by the Revenue against the order of Commissioner of Income Tax (Appeals), Belagavi, dated 11/05/2015.</span></span><br /><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>2. </strong>The sole issue involved in this appeal is that the Commissioner of Income Tax (Appeals) erred in allowing deduction to the assessee under sec. 80P(2)(a)(i) of the Income Tax Act, 1961.</span></span><br /><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>3</strong>. The facts of the case are that the assessee filed return of income after claiming deduction under sec. 80P(2)(a)(i) of the Act for Rs. 76,30,025/-. It was claimed that the society is entitled to deduction under sec. 80P(2)(a)(i) as it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members. However, the claim of the assessee for deduction under sec. 80P(2)(a)(i) was rejected by the Assessing Officer in the order passed under sec. 143(3) of the Act on the ground that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of sec. 80P(4).</span></span><br /><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>4. </strong>On appeal, Commissioner of Income Tax (Appeals) allowed the claim of the assessee by observing as under:-</span></span><br /><br />
<div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“6. I have carefully perused and considered the aforesaid submission made by the appellant and the contents of the Assessment Order passed by the Assessing Officer. I have also perused the case laws relied upon by the appellant and the Assessing Officer. The main plank of argument of the Assessing Officer has been that after careful analysis of Section 80P(4) read with section 2(24)(viia) of the Income- tax Act, 1961 and Part V of the Banking Regulation Act and the facts of the case, the appellant assessee co-operative credit society is held to be a 'Primary Co-operative Bank' hence is not eligible for deduction under sec.80P(2)(a)(i) in view of the newly inserted provisions of section 80P(4). The assessing Officer has arrived at a conclusion that if a cooperative society satisfies all the three conditions as laid down in the definition as given u/s 5(ccv) in Part V of the Banking Regulation Act, 1949, then it becomes a "primary co-operative bank", and therefore deduction u/s 80P(2)(a)(i) can be denied by virtue of Sec.80P(4).</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1 The relevant part of Section 80P of the I.T Act under which the appellant co-operative society has claimed deduction reads as under:</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Deduction in respect of Income of co-operative societies.</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">80P. (1) Where, in the case of an assessee being a co- operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(2) The sums referred to in sub-section (1) shall be the following, namely:-</span></span></div><div style="margin-left: 108pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) in the case of co-operative society engaged in –</span></span></div><div style="margin-left: 108pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(i) carrying on the business of banking or providing credit facilities to its members, or</span></span></div><div style="margin-left: 108pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) ------------------------------</span></span></div><div style="margin-left: 108pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">the whole of the amount of profits and gains of business attributable to any one or more of such activities:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.1 The clause (4) of sec.80P inserted by the Finance Act,2006 w.e.f. 01-04-2007, which has been invoked by the Assessing Officer to deny deduction to the appellant co-operative society reads as under:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(4) The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">Explanation: For the purposes of this sub-section:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) “co-operative bank” and “Primary agricultural credit society” shall have the meanings respectively assigned to them in Part V of the banking Regulation Act, 1949 (10 of 1949);</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(b) “primary co-operative agricultural and rural development bank” means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">By virtue of introduction of clause(4) in sec.80P, the ‘Co-operative banks’ have been taken out of the purview of exemption granted under sec.80P whereas other entities/cooperative societies specified in other clauses of sec.80P continue to enjoy such exemptions. The Explanation to sec.80P provides that “co- operative bank” and “Primary agricultural credit society” shall have the meanings respectively assigned to them in Part V of the banking Regulation Act, 1949 (10 of 1949).</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.2 Following the provisions of aforesaid Explanation to sec.80P, the Assessing Officer, with a view to find out the definition of “co- operative bank” has taken recourse to the relevant provisions of The Banking Regulation Act, 1949.</span></span></div><br /><br />
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<tr style="height: 1pt;"><td style="border: 1pt solid black; height: 1pt; padding: 0cm; width: 50px;" valign="top" width="8%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Sl. No.</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 90px;" valign="top" width="14%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Category</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 169px;" valign="top" width="27%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause/section of the Banking Regulation Act, 1949</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: solid solid solid none; border-top-color: black; border-top-width: 1pt; height: 1pt; padding: 0cm; width: 310px;" valign="top" width="50%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Definition</span></span></div></td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 50px;" valign="top" width="8%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">1</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 90px;" valign="top" width="14%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">2</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 169px;" valign="top" width="27%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">3</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 310px;" valign="top" width="50%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">4</span></span></div></td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 50px;" valign="top" width="8%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">1</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 90px;" valign="top" width="14%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Co- operative Bank</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 169px;" valign="top" width="27%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (cci) of section 5</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 310px;" valign="top" width="50%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Co-operative Bank means a State Co- operative Bank, a Central Co-operative Bank and a Primary co-operative Bank</span></span></div></td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 50px;" valign="top" width="8%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">2</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 90px;" valign="top" width="14%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co- operative Bank</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 169px;" valign="top" width="27%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (ccv) of Section 5</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 310px;" valign="top" width="50%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co-operative bank means a Co- operative Society other than a primary agricultural credit society — (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye- laws of which do not permit admission of any other co-operative society as a member.</span></span></div></td></tr>
<tr style="height: 1pt;"><td style="border-bottom-color: black; border-bottom-width: 1pt; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid; height: 1pt; padding: 0cm; width: 50px;" valign="top" width="8%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">3</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 90px;" valign="top" width="14%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Credit Society</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 169px;" valign="top" width="27%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (ccvi) of section 5</span></span></div></td><td style="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; border-style: none solid solid none; height: 1pt; padding: 0cm; width: 310px;" valign="top" width="50%"><div style="text-align: justify;"><span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co-operative Society means a co-operative society other than a primary agricultural credit society —(1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye- laws of which do not permit admission of any other co-operative society as a member.</span></span></div></td></tr>
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<div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Assessing Officer has thus mentioned that the ‘Co-operative Bank’ includes ‘Primary Co-operative Bank’ and ‘Primary Co-operative Bank’ means Co-operative Society — (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.3 The Assessing Officer has concluded that the appellant co- operative society satisfies all the above mentioned three conditions and therefore it is held to be a ‘Primary Cooperative Bank’ and hence its claim of deduction u/s 80P(2)(a)(i) has been denied u/s 80P(4). Before arriving at this conclusion the Assessing Officer has also referred to the newly inserted provisions of Sec.2(24)(viia), inserted by the Finance Act,2006 w.e.f. 01-04-2007 which reads as under:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“(24) “Income” includes -</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(viia) The profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members;”</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Assessing Officer has contended that the purpose of introduction of these provisions was to tax the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members. The Assessing Officer has also referred to the definition of ‘Banking’ as provided in sec.5(b) of the Banking Regulation Act,1949 which reads as under:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“(b)”Banking” means the accepting for the purpose of lending or investment, of deposit of money from public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.”</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The A.O has come to the conclusion that the appellant co- operative society is doing banking business as ‘providing credit facilities to members’ is akin to banking business and since the membership is open to public, it is accepting deposits from public which can be withdrawn by any one of the specified means within the meaning of above mentioned definition of banking.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.4. Similar issue is also involved in a number of cases pertaining to credit co-operative societies which are also in appeal and they have all contested the action of the AO is invoking the provisions of Sec. 80P(4) in their respective cases on the basis of various contentions discussed herein below.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2 The appellants on the other hand has challenged the interpretation of Sections 80P(2), 80P(4) and relevant provision of the Banking Regulation Act, 1949 as adopted by the A.O in his Assessment Order. The appellants have also contended that the intention of the legislature as revealed by the speech of the Finance Minister was not to deny deduction to all the cooperative societies by introduction of sec. 80P(4).</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.1 It has also been a contention of the appellants that to fulfil the first condition for becoming a ‘Primary Co-operative Bank’, the society should carry on the business of banking as per the definition of ‘banking’ in Banking Regulation Act, 1949. The appellants have also contended that the respective appellant assessee society registered under the Karnataka Cooperative Societies Act, 1959 is carrying on the business of providing credit facility to its members and is not allowed to issue cheques, drafts, pay orders, etc. As per the Banking Regulation Act, permission of Reserve Bank of India is required to issue cheques, drafts and pay orders, etc. and the respective appellant has not obtained any such license/permission from the Reserve Bank of India to carry on the business of banking.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.2 The appellant cooperative societies have contended that the explanatory note to memorandum explaining the provisions in the Finance Bill, 2006 wherein the Hon'ble Finance Minister explains the reasons for withdrawal of tax benefits available to certain co-operative banks, the relevant portion of the said notes is reproduced hereinbelow:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Section 80P, inter alia, provides for a deduction from the total income of the cooperative societies engaged in the business of banking or providing credit facilities to its members, or business of cottage industry, or of marketing of agricultural produce of its members, or processing, without the aid of power, of the agricultural produce of its members, etc.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The co-operative banks are functioning at par with other commercial banks, which do not enjoy any tax benefits. It is, therefore, proposed to amend section 80P by inserting a new sub-section (4) so as to provide that the provisions of the said section shall not apply in relation to any co-operative bank other than primary credit society or a primary co-operative agricultural and rural development bank. It is also proposed to define the expressions "co-operative bank", "primary agricultural credit society" and "primary co-operative agricultural and rural development bank".</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">It is also proposed to insert a new sub-clause (viia) in clause (24) of the section 2 so as to provide that the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members shall be included in the definition of "income".</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">This amendment will take effect from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent years."</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The appellants have thus contended that it was clear that the intention of the Finance Minister was to tax 'co-operative banks' only.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.3 The appellants have relied on the decision in the cases of (i)Karnataka High Court (Dharwad Bench )0rder in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014 wherein apart from the deciding on section 263 it has also held, on section 80P that " As the assessee is not a cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve bank of India to carry on business , it is not a Cooperative Bank.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) The Karnataka High Court decision in the case of The Commissioner of Income Tax (A), Mysore & Others Vs General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iii) Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iv) CIT Vs Jafari Mom in Vikas Coop Credit Society Ltd ITA 442,443 & 863 of 2013 of Gujarat High Court.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(v) Taramani Manila Coop Credit Society Vs ITO Ward 1(2), Belgaum ITA 229 & 230/PNJ/2013dt 28.2.2014</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(vi) ITAT Bangalore B Bench decision vide ITA No 1069/Bang/2010 for the Asst Year 2007-08 of M/s Bangalore Commercial Transport Coop Society Ltd, Bangalore.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(vii) ITO Vs Yeshwantpur Credit Coop Society Ltd ITA No. 717/Bang/2011 Dt 11.4.2012 rendered by ITAT A Bench, Bangalore.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(viii) M/s Jayalakshmi Mahila Vividodeshagala Souharada Sahakari Ltd & Another in ITA No 01 to 03/PNJ/2012 and ITA 04 to 06/PNJ/2012.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The appellants have claimed that in all these cases it was held that income earned by cooperative society from its act of lending money to members shall be eligible for exemption under section 80P(2)(a)(i) of the Act.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">7. The important aspects relating to the issues in this case have been considered and decided by various ITATs across the country. The jurisdictional ITAT of Bangalore bench in a number of cases while deciding the issue in favour of the assessees has held that the cooperative societies are not doing banking business and therefore, the provisions of section 80P(4) are not applicable to them. The jurisdictional ITAT Panjim bench has also in a number of cases where the assessee cooperative society engaged in providing credit facilities to its members and not accepting deposit from public as evidenced from their bye laws or the cooperative societies accepting other cooperative societies as members have held that those cooperative societies are entitles to the benefit of deduction u/s 80P(2)(a)(i) of the I.T. Act.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8. Now, after the Gujarat High Court in the case of CIT Vs Jafari Mom in Vikas Coop Credit Society Ltd ITA 442, 443 & 863 of 2013 deciding the issue in favour of the assessee, the Karnataka High Court in the cases of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014, Commissioner of Income Tax (A), Mysore & Others Vs General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014 and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014 has also decided the issue in favour of the assessee.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1 Now a question which may be asked in the case of the appellant being a ‘Souharda’ is; whether, ‘Souharda’ is a ‘co operative society’ within the meaning of section 80P/2(19) of the I.T. Act.? Since the deduction u/s80P of the Income Tax Act, 1961 is available to the co-operative societies, it is imperative to go into the definition of “Co-operative society” which has been specifically defined in Section 2(19) of the Act. Section 2(19) reads as follows:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“co-operative society” means a co-operative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies;</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">This definition has two parts:</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“co-operative society” means</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(1) a co-operative society</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(2) registered</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) under the Co-operative Societies Act, 1912 (2 of 1912), or</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(b) under any other law for the time being in force in any State for the registration of cooperative societies;</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.1 As far as first part of the definition given in section 2(19) is concerned, a Souharda is a society which is cooperative in nature and thus it is a co- operative society. The dictionary meaning of ‘society’ as per Oxford English Dictionary is:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">‘An association or body of people united by a common aim, interest, belief, profession etc.’</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Webester Dictionary gives the meaning of ‘society’ as;</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">‘A voluntary association of individuals for common ends; especially: an organized group working together or periodically meeting because of common interests, beliefs, or profession’</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">Going by the bye laws of the Souhardas and the provisions of The Karnataka Souharda Sahakari Act, 1997, it is clear that the Souhardas are societies which are cooperative in nature. They are registered under an Act which provides for recognition, encouragement and voluntary formation of co-operatives based on self help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, self reliant and economic enterprises guided by co-operative principles and matters connected therewith. It is also worth noting that the word Co-operative has been used on innumerable occasions in The Karnataka Souharda Sahakari Act, 1997. A few examples of which are:</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">a. Section 4(1) - Co-operatives which may be registered:- No Co-operative shall be registered under this Act, Unless</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">b. Section 6(1) - Certificate of Registration:- Where a co- operative is registered or deemed to be registered, the certificate of registration duly signed and sealed by the Registrar shall be conclusive evidence that the co-operative mentioned therein, is a cooperative registered or deemed to be registered under this Act.</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">c. Section 10(1) - Bye Laws - Subject to the provisions of this Act or rules, every cooperative shall function in accordance with its bye-laws which as far as possible shall adhere to the co-operative principles.</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">d. Section 32(1) - Maintenance of records, Accounts, etc:- Every co-operative shall maintain at its registered office the following, namely:-</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">e. Section 33(1) - Audit :- Every Cooperative shall get its accounts audited atleast once a year</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">f. Section 35(1) - Inquiry:-The Registrar may conduct an inquiry or cause an inquiry to be conducted expeditiously into any specific matter touching the constitution, management, working or financial conditions of a Cooperative.</span></span></div><div style="margin-left: 72pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">g. Section 47(1) - Winding up of a Co-operative :- On an application made by not less than one-fifth of the members of a co-operative to wind up the affairs of the said cooperative, the board shall convene a general- meeting by issuing a notice to each member</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.2 Souhardas satisfy the second part of the definition also as they are registered under the Karnataka Souharda Sahakari Act,1997, an Act in force in the state of Karnataka for the registration of Co-operative societies in addition to the co- operative societies Act.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.3 Further, in a number of decisions by the Panjim and Bangalore benches of the ITAT and by the Karnataka High Court, no distinction has been drawn between the Souhardas and the co-operative societies as far as the applicability of the provisions of section 80P of the Act are concerned. Some of such decisions are:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(i) Karnataka High Court (Dharwad Bench )Order in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot ITA 5006/2013 dt 5th Feb 2014.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iii) M/s Jayalakshmi Mahila Vividodeshagala Souharada Sahakari Ltd & Another in ITA No 01 to 03/PNJ/2012 and ITA 04 to 06/PNJ/2012.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iv) DCIT Vs. M/s Dwarka Souharda Credit Sahakari Ltd. ITA No.04-06/PNJ/2012</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.4 Thus, it is amply clear that ‘Souhardas’ are ‘co-operative societies’ within the meaning of section 80P of the Income Tax Act,1961. Moreover, it is not the case of the A.O that the appellant Souharda is not a co-operative Society within the meaning of section 80P of the l.T. Act.</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.2 The Hon'ble High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, supra which was followed in the cases of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014. Supra, has clearly held that a co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption under section 80P(2)(a)(i) of the I.T. Act. The operative part of the judgment reads as follows:</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Therefore, the intention of the legislature is clear. If a Co- operative Bank is exclusively carrying on banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co-operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co- operative agricultural and rural development bank. The Legislature did not want to deny the said benefits to a primary agricultural credit society or a. primary co- operative agricultural and rural development bank. They did not want to extend the said benefit to a Co-operative bank which is exclusively carrying on banking business i.e. the purport of this amendment. Therefore, as the assessee is not a Cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve Bank of India to carry on business, it is not a Co-operative bank. It is a Cooperative society which also carries on the business of lending money to its members which is covered under Section 80P{2)(a}(i) i.e. carrying on the business of banking for providing credit facilities to its members. The object of the aforesaid amendment is not to exclude the benefit extended under Section 80P(1) to such society .................................... In the instant case, when the status of the assessee is a Co-operative society and is not a Co-operative bank, the order passed by the Assessing Authority extending the benefit of exemption from payment of tax under section 80P(2)(a)(i) of the Act is correct. "</span></span></div><div style="margin-left: 36pt;"><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.3 The fact that the appellant is a cooperative society registered under the Karnataka Co operative Societies Act,1959 engaged in providing credit facilities to its members has been clearly mentioned by the A.O in para 3 of his aforesaid assessment order. It is also not the case of the assessing officer that the assessee is registered with the RBI as a bank. In its aforesaid submissions dated 27/10/2014 the appellant has clearly stated with the help of necessary evidence and an affidavit dated 20/10/2014 to this effect that the appellant is a cooperative society registered under the Karnataka Cooperative Societies Act, 1959 engaged in providing credit facilities only to its members and it does not possess any banking licence from the RBI. It is therefore, clear that the appellant's case is squarely covered by the aforesaid decisions of the Jurisdictional High Court of Karnataka in the cases of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha. supra which was followed in the case of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014 supra. Therefore, in view of the foregoing discussion and respectfully following the aforesaid decisions of the Jurisdictional High Court of Karnataka, it is held that the appellant's case is not covered by section 80P(4) as it is not a 'co-operative bank' and therefore, it is entitled to the exemption u/s 80P(2)(a)(i) of the IT Act.”</span></span></div><span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>5. </strong>The Departmental Representative relied on the order of the Assessing Officer. He could not point out any specific error in the above quoted order of the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) has allowed the claim of deduction under sec. 80P(2)(a)(i) of the Act by following the decisions of the Hon’ble Karnataka High Court in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot (supra) and in the case of General Insurance Employees Cooperative Credit Society Ltd. (supra). No contrary decision could be cited by the Departmental Representative. We, therefore, do not find any good and justifiable reason to interfere with the order of the Commissioner of Income Tax (Appeals), which is hereby confirmed and the ground of appeal of the Revenue is dismissed.</span></span><br /><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>6. </strong>In the result, appeal of the Revenue is dismissed.</span></span><br /><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">Order Pronounced in the Court at the close of the hearing on Monday, the 05th day of October, 2015 at Goa.</span></span></div>CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-20629219053122717062015-09-17T03:37:00.002-07:002015-09-17T03:37:23.837-07:00Deduction u/s 80P(2)<div dir="ltr" style="text-align: left;" trbidi="on">
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<i><b>INCOME TAX OFFICER vs.KURUHINSHETTY URBAN COOPERATIVE CREDIT SOCIETY LTD.</b></i></div>
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<i>PANAJI TRIBUNAL</i></div>
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<i>N. S. SAINI, AM & GEORGE MATHAN, JM.</i></div>
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<i>ITA No. 318/PNJ/2015, 319/PNJ/2015, 320/PNJ/2015, 321/PNJ/2015, 322/PNJ/2015, 323/PNJ/2015</i></div>
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<i>Sep 14, 2015</i></div>
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<i>(2015) 45 CCH 0048 PanajiTrib</i></div>
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<u>Legislation Referred to</u></div>
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<i>Section 2(24)(viia), 80P(4), 263</i></div>
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<u>Case pertains to</u></div>
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<i>Asst. Year 2012-13</i></div>
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<u>Decision in favour of:</u></div>
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<i>Assessee</i></div>
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<span style="font-size: xx-small;"><em><strong><span style="font-size: small !important; line-height: 13.91px;">Deduction u/s 80P(2)—</span><span style="font-size: small !important; line-height: 13.91px;">Deduction in respect of income of co-operative societies</span><span style="font-size: small !important; line-height: 13.91px;">—</span><span style="font-size: small !important; line-height: 13.91px;">Assessees had filed return of income after claiming deduction u/s 80P(2)(a)(i) on grounds that it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members—AO disallowed same on grounds that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of s 80P(4)—CIT(A) on appeal allowed assessee’s claim—Held, High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha which was followed in the case of General Insurance Employees Cooperative Credit Society Ltd, had clearly held that a co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption u/s 80P(2)(a)(i)—Revenue could not point out any specific error in the orders of the CIT(A) who had allowed the claim of deduction u/s 80P(2)(a)(i) by following the above mentioned decisions—No interference with orders of CIT was warranted—Revenue’s appeal dismissed</span></strong></em></span></div>
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<u>Held</u></div>
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<i><span style="font-size: xx-small;">High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha which was followed in the cases of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita had clearly held that a co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption u/s 80P(2)(a)(i).</span></i></div>
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<span style="font-size: xx-small;"><em>(Para 5)</em></span></div>
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<span style="font-size: xx-small;"><em>Revenue could not point out any specific error in the above quoted orders of the CIT(A). CIT(A) had allowed the claim of deduction u/s 80P(2)(a)(i) by following the decisions of the Hon’ble Karnataka High Court in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha and in the case of General Insurance Employees Cooperative Credit Society Ltd. No contrary decision could be cited by the Departmental Representative. Tribunal, therefore, did not find any good and justifiable reason to interfere with the orders of the CIT(A) which were confirmed and the ground of appeal of the Revenue was dismissed.</em></span></div>
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<span style="font-size: xx-small;"><em><span style="font-size: small !important; line-height: 13.91px;">(Para 6)</span></em></span></div>
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<u>Conclusion</u></div>
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<i><span style="font-size: xx-small;"><em><span style="font-size: small !important; line-height: 13.91px;">A co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption u/s 80P(2)(a)(i).</span></em></span></i></div>
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<u>In favour of</u></div>
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<i>Assessee</i></div>
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<u>Cases Referred to</u></div>
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<i>CIT vs. Jafari Mom in Vikas Coop Credit Society Ltd ITA 442,443 & 863 of 2013 </i><i>Mysore & Others vs. General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014</i><i>Taramani Manila Coop Credit Society vs. ITO Ward 1(2), Belgaum ITA 229 & 230/PNJ/2013dt 28.2.2014</i><i>ITO vs. Yeshwantpur Credit Coop Society Ltd ITA No 717/Bang/2011 Dt 11.4.2012</i><i>CIT vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014</i></div>
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<u>Counsel appeared:</u></div>
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<i>J.D. Kalpavriksha - CA for the Assessee.: K.M. Mahesh - DR for the Department</i></div>
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<b><u>N. S. SAINI, AM.</u></b></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">1. These are the appeals filed by the Revenue against the separate orders of Commissioner of Income Tax (Appeals), Belgaum/Belagavi, dated 11/05/2015, 18/05/2015 & 19/05/2015.</span></span><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>2. </strong>These appeals are barred by limitation by 01 day. The Revenue has filed condonation applications requesting for condoning the delay in filing the appeals. Authorized Representative of the assessee had no objection to the condonation of delay in filing the appeals by the Revenue. We find that the reasons given for delay in filing the appeals are reasonable hence, we condone the delay in filing the appeals by the Revenue and admit the appeals for hearing.</span></span><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>3</strong>. The sole issue involved in these appeals is that the Commissioner of Income Tax (Appeals) erred in allowing deduction to the assessee under sec. 80P(2)(a)(i) of the Income Tax Act, 1961.</span></span><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>4. </strong>The facts of the case are that the assessees filed return of income after claiming deduction under sec. 80P(2)(a)(i) of the Act. It was claimed that the society is entitled to deduction under sec. 80P(2)(a)(i) as it was a Cooperative Society carrying on the business of banking or providing credit facilities to its members. However, the claim of the assessee for deduction under sec. 80P(2)(a)(i) was rejected by the Assessing Officer in the order passed under sec. 143(3) of the Act on the ground that the assessee was a cooperative bank, and hence, not entitled to claim deduction by virtue of sec. 80P(4).</span></span><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>5. </strong>On appeal, Commissioner of Income Tax (Appeals) allowed the claim of the assessees by observing as under:-</span></span><br />
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“6. I have carefully perused and considered the aforesaid submission made by the appellant and the contents of the Assessment Order passed by the Assessing Officer. I have also perused the case laws relied upon by the appellant and the Assessing Officer. The main plank of argument of the Assessing Officer has been that after careful analysis of Section 80P(4) read with section 2(24)(viia) of the Income- tax Act, 1961 and Part V of the Banking Regulation Act and the facts of the case, the appellant assessee co-operative credit society is held to be a 'Primary Co-operative Bank' hence is not eligible for deduction under sec.80P(2)(a)(i) in view of the newly inserted provisions of section 80P(4). The assessing Officer has arrived at a conclusion that if a cooperative society satisfies all the three conditions as laid down in the definition as given u/s 5(ccv) in Part V of the Banking Regulation Act, 1949, then it becomes a "primary co-operative bank", and therefore deduction u/s 80P(2)(a)(i) can be denied by virtue of Sec.80P(4).</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1 The relevant part of Section 80P of the I.T Act under which the appellant co-operative society has claimed deduction reads as under:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Deduction in respect of Income of co-operative societies.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">80P. (1) Where, in the case of an assessee being a co- operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(2) The sums referred to in sub-section (1) shall be the following, namely:-</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) in the case of co-operative society engaged in –</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(i) carrying on the business of banking or providing credit facilities to its members, or</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) ------------------------------</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">the whole of the amount of profits and gains of business attributable to any one or more of such activities:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.1 The clause (4) of sec.80P inserted by the Finance Act,2006 w.e.f. 01-04-2007, which has been invoked by the Assessing Officer to deny deduction to the appellant co-operative society reads as under:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(4) The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">Explanation: For the purposes of this sub-section:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) “co-operative bank” and “Primary agricultural credit society” shall have the meanings respectively assigned to them in Part V of the banking Regulation Act, 1949 (10 of 1949);</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(b) “primary co-operative agricultural and rural development bank” means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">By virtue of introduction of clause(4) in sec.80P, the ‘Co-operative banks‘ have been taken out of the purview of exemption granted under sec.80P whereas other entities/cooperative societies specified in other clauses of sec.80P continue to enjoy such exemptions. The Explanation to sec.80P provides that “co- operative bank” and “Primary agricultural credit society” shall have the meanings respectively assigned to them in Part V of the banking Regulation Act, 1949 (10 of 1949).</span></span></div>
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.2 Following the provisions of aforesaid Explanation to sec.80P, the Assessing Officer, with a view to find out the definition of “co- operative bank” has taken recourse to the relevant provisions of The Banking Regulation Act, 1949.</span></span><br />
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Sl. No.</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause/section of the Banking Regulation Act, 1949</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Definition</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">1</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">2</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">3</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">4</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">1</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Co- operative Bank</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (cci) of section 5</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Co-operative Bank means a State Co- operative Bank, a Central Co-operative Bank and a Primary co-operative Bank</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">2</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co- operative Bank</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (ccv) of Section 5</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co-operative bank means a Co- operative Society other than a primary agricultural credit society — (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye- laws of which do not permit admission of any other co-operative society as a member.</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">3</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Credit Society</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Clause (ccvi) of section 5</span></span></div>
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<span style="font-family: verdana, geneva; font-size: small !important;"><span style="font-size: xx-small;">Primary Co-operative Society means a co-operative society other than a primary agricultural credit society —(1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye- laws of which do not permit admission of any other co-operative society as a member.</span></span></div>
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<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Assessing Officer has thus mentioned that the ‘Co-operative Bank‘ includes ‘Primary Co-operative Bank‘ and ‘Primary Co- operative Bank‘ means Co-operative Society— (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakhs of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.3 The Assessing Officer has concluded that the appellant co- operative society satisfies all the above mentioned three conditions and therefore it is held to be a ‘Primary Cooperative Bank‘ and hence its claim of deduction u/s 80P(2)(a)(i) has been denied u/s 80P(4). Before arriving at this conclusion the Assessing Officer has also referred to the newly inserted provisions of Sec.2(24)(viia), inserted by the Finance Act,2006 w.e.f. 01-04-2007 which reads as under:</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“(24) “Income” includes -</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(viia) The profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members;”</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Assessing Officer has contended that the purpose of introduction of these provisions was to tax the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members. The Assessing Officer has also referred to the definition of ‘Banking‘ as provided in sec.5(b) of the Banking Regulation Act,1949 which reads as under:</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“(b)”Banking” means the accepting for the purpose of lending or investment, of deposit of money from public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.”</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The A.O has come to the conclusion that the appellant co-operative society is doing banking business as ‘providing credit facilities to members‘ is akin to banking business and since the membership is open to public, it is accepting deposits from public which can be withdrawn by any one of the specified means within the meaning of above mentioned definition of banking.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.1.4. Similar issue is also involved in a number of cases pertaining to credit co-operative societies which are also in appeal and they have all contested the action of the AO is invoking the provisions of Sec. 80P(4) in their respective cases on the basis of various contentions discussed herein below.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2 The appellants on the other hand has challenged the interpretation of Sections 80P(2), 80P(4) and relevant provision of the Banking Regulation Act, 1949 as adopted by the A.O in his Assessment Order. The appellants have also contended that the intention of the legislature as revealed by the speech of the Finance Minister was not to deny deduction to all the cooperative societies by introduction of sec. 80P(4).</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.1 It has also been a contention of the appellants that to fulfil the first condition for becoming a ‘Primary Co-operative Bank‘, the society should carry on the business of banking as per the definition of ‘banking‘ in Banking Regulation Act, 1949. The appellants have also contended that the respective appellant assessee society registered under the Karnataka Cooperative Societies Act, 1959 is carrying on the business of providing credit facility to its members and is not allowed to issue cheques, drafts, pay orders, etc. As per the Banking Regulation Act, permission of Reserve Bank of India is required to issue cheques, drafts and pay orders, etc. and the respective appellant has not obtained any such license/permission from the Reserve Bank of India to carry on the business of banking.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.2 The appellant cooperative societies have contended that the explanatory note to memorandum explaining the provisions in the Finance Bill, 2006 wherein the Hon'ble Finance Minister explains the reasons for withdrawal of tax benefits available to certain co-operative banks, the relevant portion of the said notes is reproduced hereinbelow:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Section 80P, inter alia, provides for a deduction from the total income of the cooperative societies engaged in the business of banking or providing credit facilities to its members, or business of cottage industry, or of marketing of agricultural produce of its members, or processing, without the aid of power, of the agricultural produce of its members, etc.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The co-operative banks are functioning at par with other commercial banks, which do not enjoy any tax benefits. It is, therefore, proposed to amend section SOP by inserting a new sub-section (4) so as to provide that the provisions of the said section shall not apply in relation to any co-operative bank other than primary credit society or a primary co-operative agricultural and rural development bank. It is also proposed to define the expressions "co-operative bank", "primary agricultural credit society" and "primary co-operative agricultural and rural development bank".</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">It is also proposed to insert a new sub-clause (viia) in clause (24) of the section 2 so as to provide that the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members shall be included in the definition of "income".</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">This amendment will take effect from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent years."</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The appellants have thus contended that it was clear that the intention of the Finance Minister was to tax 'co-operative banks' only.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">6.2.3 The appellants have relied on the decision in the cases of</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(i) Karnataka High Court (Dharwad Bench )0rder in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014 wherein apart from the deciding on section 263 it has also held, on section 80P that " As the assessee is not a cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve bank of India to carry on business , it is not a Cooperative Bank.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) The Karnataka High Court decision in the case of The Commissioner of Income Tax (A), Mysore & Others Vs General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iii) Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iv) CIT Vs Jafari Mom in Vikas Coop Credit Society Ltd ITA 442,443 & 863 of 2013 of Gujarat High Court.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(v) Taramani Manila Coop Credit Society Vs ITO Ward 1(2), Belgaum ITA 229 & 230/PNJ/2013dt 28.2.2014</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(vi) ITAT Bangalore B Bench decision vide ITA No 1069/Bang/2010 for the Asst Year 2007-08 of M/s Bangalore Commercial Transport Coop Society Ltd, Bangalore.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(vii) ITO Vs Yeshwantpur Credit Coop Society Ltd ITA No 717/Bang/2011 Dt 11.4.2012 rendered by ITAT A Bench, Bangalore.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(viii) M/s Jayalakshmi Mahila Vividodeshagala Souharada Sahakari Ltd & Another in ITA No 01 to 03/PNJ/2012 and ITA 04 to 06/PNJ/2012.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The appellants have claimed that in all these cases it was held that income earned by cooperative society from its act of lending money to members shall be eligible for exemption under section 80P(2)(a)(i) of the Act.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">7. The important aspects relating to the issues in this case have been considered and decided by various ITATs across the country. The jurisdictional ITAT of Bangalore bench in a number of cases while deciding the issue in favour of the assessees has held that the cooperative societies are not doing banking business and therefore, the provisions of section 80P(4) are not applicable to them. The jurisdictional ITAT Panjim bench has also in a number of cases where the assessee cooperative society engaged in providing credit facilities to its members and not accepting deposit from public as evidenced from their bye laws or the cooperative societies accepting other cooperative societies as members have held that those cooperative societies are entitles to the benefit of deduction u/s 80P(2)(a)(i) of the I.T. Act.</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8. Now, after the Gujarat High Court in the case of CIT Vs Jafari Mom in Vikas Coop Credit Society Ltd ITA 442, 443 & 863 of 2013 deciding the issue in favour of the assessee, the Karnataka High Court in the cases of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot ITA 5006/2013 dt 5th Feb 2014, Commissioner of Income Tax (A), Mysore & Others Vs General Insurance Employees Cooperative Credit Society Ltd ITA No 273/2013 dt 27.6.2014 and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014 has also decided the issue in favour of the assessee.</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1 Now a question which may be asked in the case of the appellant being a ‘Souharda‘ is; whether, ‘Souharda‘ is a ‘co operative society‘ within the meaning of section 80P/2(19) of the I.T. Act.? Since the deduction u/s80P of the Income Tax Act, 1961 is available to the co-operative societies, it is imperative to go into the definition of “Co- operative society” which has been specifically defined in Section 2(19) of the Act. Section 2(19) reads as follows;</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“co-operative society” means a co-operative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co- operative societies;</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">This definition has two parts:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">“co-operative society” means</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(1) a co-operative society</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(2) registered</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(a) under the Co-operative Societies Act, 1912 (2 of 1912), or</span></span></div>
<div style="margin-left: 72pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(b) under any other law for the time being in force in any State for the registration of cooperative societies;</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.1 As far as first part of the definition given in section 2(19) is concerned, a Souharda is a society which is cooperative in nature and thus it is a co- operative society. The dictionary meaning of ‘society‘ as per Oxford English Dictionary is:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">‘An association or body of people united by a common aim, interest, belief, profession etc.‘</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">The Webester Dictionary gives the meaning of ‘society‘ as;</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">‘A voluntary association of individuals for common ends; especially: an organized group working together or periodically meeting because of common interests, beliefs, or profession‘</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">Going by the bye laws of the Souhardas and the provisions of The Karnataka Souharda Sahakari Act, 1997, it is clear that the Souhardas are societies which are cooperative in nature. They are registered under an Act which provides for recognition, encouragement and voluntary formation of co-operatives based on self help, mutual aid, wholly owned, managed and controlled by members as accountable, competitive, self reliant and economic enterprises guided by co-operative principles and matters connected therewith. It is also worth noting that the word Co-operative has been used on innumerable occasions in The Karnataka Souharda Sahakari Act, 1997. A few examples of which are:</span></span></div>
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<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">a. Section 4(1) - Co-operatives which may be registered:- No Co-operative shall be registered under this Act, Unless</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">b. Section 6(1) - Certificate of Registration:- Where a co- operative is registered or deemed to be registered, the certificate of registration duly signed and sealed by the Registrar shall be conclusive evidence that the co-operative mentioned therein, is a cooperative registered or deemed to be registered under this Act. c. Section 10(1) - Bye Laws - Subject to the provisions of this Act or rules, every cooperative shall function in accordance with its bye-laws which as far as possible shall adhere to the co-operative principles.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">d. Section 32(1) - Maintenance of records, Accounts, etc :- Every co-operative shall maintain at its registered office the following, namely:-</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">e. Section 33(1) - Audit :- Every Cooperative shall get its accounts audited atleast once a year</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">f. Section 35(1) - Inquiry:-The Registrar may conduct an inquiry or cause an inquiry to be conducted expeditiously into any specific matter touching the constitution, management, working or financial conditions of a Cooperative.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">g. Section 47(1) - Winding up of a Co-operative :- On an application made by not less than one-fifth of the members of a co-operative to wind up the affairs of the said cooperative, the board shall convene a general- meeting by issuing a notice to each member</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.2 Souhardas satisfy the second part of the definition also as they are registered under the Karnataka Souharda Sahakari Act,1997, an Act in force in the state of Karnataka for the registration of Co-operative societies in addition to the co-operative societies Act.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.3 Further, in a number of decisions by the Panjim and Bangalore benches of the ITAT and by the Karnataka High Court, no distinction has been drawn between the Souhardas and the co-operative societies as far as the applicability of the provisions of section 80P of the Act are concerned. Some of such decisions are:</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(i) Karnataka High Court (Dharwad Bench )Order in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot ITA 5006/2013 dt 5th Feb 2014.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(ii) Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iii) M/s Jayalakshmi Mahila Vividodeshagala Souharada Sahakari Ltd & Another in ITA No 01 to 03/PNJ/2012 and ITA 04 to 06/PNJ/2012.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">(iv) DCIT Vs. M/s Dwarka Souharda Credit Sahakari Ltd. ITA No.04-06/PNJ/2012</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.1.4 Thus, it is amply clear that ‘Souhardas‘ are ‘co- operative societies‘ within the meaning of section 80P of the Income Tax Act,1961. Moreover, it is not the case of the A.O that the appellant Souharda is not a co-operative Society within the meaning of section 80P of the I.T. Act.</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.2 The Hon'ble High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, supra which was followed in the cases of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No. 505/2013 dated 27/06/2014. Supra, has clearly held that a co-operative society registered as cooperative society, providing credit facilities to members and not registered with the RBI cannot be denied the exemption under section 80P(2)(a)(i) of the I.T. Act. The operative part of the judgment reads as follows:</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">"Therefore, the intention of the legislature is clear. If a Co-operative Bank is exclusively carrying on banking business, then the income derived from the said business cannot be deducted in computing the total income of the assessee. The said income is liable for tax. A Co-operative bank as defined under the Banking Regulation Act includes the primary agricultural credit society or a primary co-operative agricultural and rural development bank. The Legislature did not want to deny the said benefits to a primary agricultural credit society or a. primary co-operative agricultural and rural development bank. They did not want to extend the said benefit to a Co-operative bank which is exclusively carrying on banking business i.e. the purport of this amendment. Therefore, as the assessee is not a Cooperative bank carrying on exclusively banking business and as it does not possess a licence from Reserve Bank of India to carry on business, it is not a Co-operative bank. It is a Cooperative society which also carries on the business of lending money to its members which is covered under Section 80P{2)(a}(i) i.e. carrying on the business of banking for providing credit facilities to its members. The object of the aforesaid amendment is not to exclude the benefit extended under Section 80P(1) to such society ........................................In the instant case, when the status of the assessee is a Co-operative society and is not a Co-operative bank, the order passed by the Assessing Authority extending the benefit of exemption from payment of tax under section 80P(2)(a)(i) of the Act is correct. "</span></span></div>
<div style="margin-left: 36pt;">
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;">8.3 The fact that the appellant is a cooperative society registered under the Karnataka Co operative Societies Act,1959 engaged in providing credit facilities to its members has been clearly mentioned by the A.O in para 3 of his aforesaid assessment order. It is also not the case of the assessing officer that the assessee is registered with the RBI as a bank. In its aforesaid submissions dated 27/10/2014 the appellant has clearly stated with the help of necessary evidence and an affidavit dated 20/10/2014 to this effect that the appellant is a cooperative society registered under the Karnataka Co operative Societies Act, 1959 engaged in providing credit facilities only to its members and it does not possess any banking licence from the RBI. It is therefore, clear that the appellant's case is squarely covered by the aforesaid decisions of the Jurisdictional High Court of Karnataka in the cases of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha. supra which was followed in the case of General Insurance Employees Cooperative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamita, ITA No.505/2013 dated 27/06/2014 supra. Therefore, in view of the foregoing discussion and respectfully following the aforesaid decisions of the Jurisdictional High Court of Karnataka, it is held that the appellant's case is not covered by section 80P(4) as it is not a 'co-operative bank' and therefore, it is entitled to the exemption u/s 80P(2)(a)(i) of the IT. Act.”</span></span></div>
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>6. </strong>The Departmental Representative relied on the orders of the Assessing Officer. He could not point out any specific error in the above quoted orders of the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) has allowed the claim of deduction under sec. 80P(2)(a)(i) of the Act by following the decisions of the Hon’ble Karnataka High Court in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (supra) and in the case of General Insurance Employees Cooperative Credit Society Ltd. (supra). No contrary decision could be cited by the Departmental Representative. We, therefore, do not find any good and justifiable reason to interfere with the orders of the Commissioner of Income Tax (Appeals), which are hereby confirmed and the ground of appeal of the Revenue is dismissed.</span></span><br />
<span style="font-family: verdana, geneva;"><span style="font-size: xx-small;"><strong>7. </strong>In the result, appeals of the Revenue are dismissed.</span></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-10459339906754373062015-08-09T20:51:00.001-07:002015-08-09T20:51:38.186-07:00<div dir="ltr"><div lang="EN-IN" link="#0563C1" vlink="#954F72" style="font-size:12.8000001907349px"><p class="MsoNormal" style="background:rgb(217,217,217)"><span style="font-size:11pt">Definition of Private Limited Company<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:11pt">This act has enhanced the number of members to 200 vs the earlier limit of 50. The definition of a Private limited Company stands modified under the new Act. <u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:11pt">The definition under Sec 3(1) (iii) no longer includes restrictions of acceptance of deposits from the public. Private Limited Companies can accept deposits from their members under a new Section 73 of the 2013 Act, subject to the terms and conditions stated therein. There is no longer a concept of a "deemed public company" under this Act<u></u><u></u></span></p><p class="MsoNormal" style="background:rgb(217,217,217)"><span style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" style="background:rgb(217,217,217)"><span style="font-size:11pt">Key Aspects – Private Limited Companies<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt"><u></u> <u></u></span></p><table border="0" cellspacing="0" cellpadding="0" width="850" style="width:637.5pt;margin-left:42.55pt;border-collapse:collapse"><thead><tr><td width="56" valign="top" style="width:42.25pt;border:1pt solid windowtext;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">Section<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Contents<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">Remarks<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">1956 Act<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">1956 Act<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:solid solid solid none;border-top-color:windowtext;border-right-color:windowtext;border-bottom-color:windowtext;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt;background:rgb(217,217,217)"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><span class="aBn" tabindex="0"><span class="aQJ">Jun 5</span></span> notification<u></u><u></u></span></p></td></tr></thead><tbody><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">2(68)<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Max number of members<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">200 as per the Act,<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">3(1)(iii)<u></u><u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">50 was the upper limit for number of members<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">2(41)<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Uniform Financial Year<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Uniform Financial Year – April to March is a must except for certain classes of companies which have holding / subsidiary abroad<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">No extension of accounting period to 15 months or 18 months<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">210(4)<u></u><u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">New Provision applicable to Private Limited Companies also<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Extension of accounting period was permitted under the Act for 15 months and 18 months<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">2(4)<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Cash Flow Statements<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Cash Flow Statements Exempted for Small Companies, Dormant Companies and OPC's only. Private Limited Companies not in the above categories have to prepare a Cash Flow Statement<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Previously exempted for private limited companies<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">5<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Entrenchment Provisions in AoA<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Possible with consent of all members to provide for covenants which are more restrictive than the Act<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">11<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Commencement of Business<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">A private company cannot commence business without filing with ROC a declaration that the subscribers to the memorandum have brought in the share moneys has the relevant form for verification of registered office under Sec 12(2) has been provided. INC 22 which is to be filed along with proof of residence in the said place<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">149<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">A private company can commence operations after incorporation and need not obtain certificate of commencement of business. The exemption has been withdrawn<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">23<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private Placement<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">A private company may issue securities by way of rights issue or bonus issue in accordance with the provisions of this Act; or through private placement by complying with the provisions of sec 42.<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision. This can to be done to a group of persons not exceeding 200 in a financial year. This should be supported by an offer document and subject to completion of earlier allotments. Allotment in 60 days through funds received in banking channels<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">43 - 47<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Voting Rights<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Voting rights in proportion to share holding, rights of preference share holders<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">87<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Sec 90 exempted private companies from the below mentioned sections<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:black">85. TWO KINDS OF SHARE CAPITAL<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:black">86. NEW ISSUES OF SHARE CAPITAL TO BE ONLY OF TWO KINDS<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:black">87. VOTING RIGHTS<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:black">88. PROHIBITION OF ISSUE OF SHARES WITH DISPROPORTIONATE RIGHTS<u></u><u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:black">89. TERMINATION OF DISPROPORTIONATELY EXCESSIVE VOTING RIGHTS IN EXISTING COMPANIES<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Kinds of share capital and Voting rights proportionate to shares held shall not apply where Memorandum or articles of association of the private company so provides.<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">62<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Further Issue of Shares<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">A company can make further issue of capital through<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Rights issue,<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">ESOP or<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private placement in accordance with provisions of section 42<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Shares have to be valued by a registered valuer<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">81(3)<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private Limited Companies were exempted from provisions regarding further Issue of share capital and it was not required to be offered to existing shareholders. This exemption has been withdrawn<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Further issue of shares only by rights issue to existing share holders. Now, w<span style="color:black">ith the consent of 90% of the members of a private company, rights issue can be kept open for a period lesser than 15 days and notice of the rights offer can be dispatched for a period lesser than 3 days before opening of the issue.</span><u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">67<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Financial Assistance for purchase of own shares<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Applies to Private Companies<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">77<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Did not apply to private limited companies<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">Shall not apply to Private companies -<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify;line-height:12.1599998474121px"><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px"><u></u> <u></u></span></p><p style="margin-left:18pt;text-align:justify;line-height:12.1599998474121px"><u></u><span style="font-size:11pt;line-height:13.9333333969116px">(a)<span style="font-stretch:normal;font-size:7pt;line-height:normal;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">in whose share capital no other body corporate has invested any money;</span><span style="font-size:11pt;line-height:13.9333333969116px"><u></u><u></u></span></p><p style="margin-left:18pt;text-align:justify;line-height:12.1599998474121px"><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px"><u></u> <u></u></span></p><p style="margin-left:18pt;text-align:justify;line-height:12.1599998474121px"><u></u><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">(b)<span style="font-stretch:normal;font-size:7pt;line-height:normal;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice its paid up share capital or fifty crore rupees, whichever is lower and<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify;line-height:12.1599998474121px"><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px"><u></u> <u></u></span></p><p style="margin-left:18pt;text-align:justify;line-height:12.1599998474121px"><u></u><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">(c)<span style="font-stretch:normal;font-size:7pt;line-height:normal;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">such a company is not in default in repayment of such borrowings subsisting at the time of making transactions under this section<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">73(2)</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Deposits from members<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Private Limited companies can accept deposits from members only after a resolution in a general meeting and fulfilment of criteria such as credit rating, maintenance of deposit repayment reserve, deposit insurance ,<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">58<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private limited companies also have to ensure aspects stated herein which is an enhanced requirement<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify;line-height:12.1599998474121px"><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">Shall not apply to a Private company which accepts from its members monies not exceeding one hundred per cent. of aggregate of the paid up share capital and free reserves, and such company shall file the details of monies so accepted to the Registrar in such manner as may be specified.<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">Deposit rules<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Acceptance of deposit rules Advances unadjusted<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Any amount received in course of business:<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Advances for goods supply or provision of services<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Advance received in connection with consideration for property under an agreement<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Security deposit for performance of contract for supply of goods or services<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Advance against long term projects for supply of capital goods (except those covered under (2))<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Provided such advance is appropriated against supply of goods/services<b>within 365 days</b> from date of acceptance of such advance<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Time limit shall not apply in subject matter of any legal proceeding<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Provided such advance is adjusted against the property in accordance with the terms of agreement.<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Any amount received by way of security or as an advance from any purchasing agent, selling agent, or other agents in the course of or for the purposes of the business of the company or any advance received against orders for the supply of goods or properties or for the rendering of any service;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">Deposit rules<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Acceptance of deposit rules<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Share application money unadjusted<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">If any amount is received and held towards share application, and not allotted within 60 days, it shall be refunded to the applicant within 15 days. Else, such amount shall be treated as a deposit.<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">If these are treated as a deposit, then the provisions of the act as regards deposits will apply as also the penalties for non compliance<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">Deposits Rules<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Loans from directors relatives<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Loans from directors' relatives / share holders are treated as deposits. <u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Loans from directors are not treated as deposits provided there is a declaration that such loans are not from borrowings / deposits<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Loans from directors relatives was not a deposit under Sec 58 A rules<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">The previous Act had excluded loan from a director's relative from the purview of deposit. This is no longer so under the new Act. However the MCA has issued a<b>General Circular 5 / 2015 on March 30, 2015</b> the MCA has finally clarified that amounts received by Private Companies ( prior to April 1, 2014 )<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p style="margin-left:0cm;text-indent:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt">from <b>Members, Directors or their relatives prior received prior to April 1, 2014</b> need not be treated as deposits<u></u><u></u></span></p><p><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p style="margin-left:0cm;text-indent:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><b><u><span lang="EN-US" style="font-size:11pt">provided</span></u></b><span lang="EN-US" style="font-size:11pt"> that the same is disclosed in the notes to its financial statement for the financial year commencing on or after 1<sup>st</sup> April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">However amounts received after that date or renewed after that date of April 1, 2014 will be treated as per the Companies Act 2013 provisions<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">101 to 107 and 109<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Notice of meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Explanatory statement</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Quorum for the meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Chairman of the meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Proxies</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Restrictions on voting rights</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Voting by show of hands </span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p style="margin-left:0cm"><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Demand of poll </span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Will be as stated in the Act for private limited Companies<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">171 to 186<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">171 to 186 applied only to public companies and private companies which were subsidiaries of public limited companies<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">Provisions relating to:<u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Notice of meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Explanatory statement</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Quorum for the meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Chairman of the meeting</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Proxies</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Restrictions on voting rights</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Voting by show of hands </span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p><u></u><span lang="EN-US" style="font-size:11pt;font-family:Symbol">·<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><u></u><span lang="EN-US" style="font-size:11pt;color:black">Demand of poll </span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">shall be governed as per the provisions of the AOA of the private company. In absence of provisions in the AOA, the provisions of 2013 Act will apply.<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">117</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Filing of resolutions with the RoC<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">The following categories of resolutions shall be filed with the RoC<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span style="font-size:11pt;color:rgb(35,31,32)">(</span><span lang="EN-US" style="font-size:11pt">a) special resolutions;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(b) resolutions which have been agreed to by all the members of a company, but<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">which, if not so agreed to, would not have been effective for their purpose unless they<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">had been passed as special resolutions;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(c) any resolution of the Board of Directors of a company or agreement executed<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">by a company, relating to the appointment, re-appointment or renewal of the<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">appointment, or variation of the terms of appointment, of a managing director;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(d) resolutions or agreements which have been agreed to by any class of members<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">but which, if not so agreed to, would not have been effective for their purpose unless<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">they had been passed by a specified majority or otherwise in some particular manner;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">and all resolutions or agreements which effectively bind such class of members though<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">not agreed to by all those members;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(e) resolutions passed by a company according consent to the exercise by its<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Board of Directors of any of the powers under clause (a) and clause (c) of sub-section<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(1) of section 180; <u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(f) resolutions requiring a company to be wound up voluntarily passed in<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">pursuance of section 304;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(<b>g) resolutions passed in pursuance of sub-section (3) of section 179; and<u></u><u></u></b></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">(h) any other resolution or agreement as may be prescribed and placed in the<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">public domain.<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">117 (3) (g) resolutions passed in pursuance of sub-section (3) of section 179 need not be filed with the ROC<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">The Board of Directors of a company shall exercise the following powers on behalf of the company by means of resolutions passed at meetings of the Board, namely:— ( Sec 179(3) )<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(a) to make calls on shareholders in respect of money unpaid on their shares;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(b) to authorise buy-back of securities under section 68;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(c) to issue securities, including debentures, whether in or outside India;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(d) to borrow monies;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(e) to invest the funds of the company;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(f) to grant loans or give guarantee or provide security in respect of loans;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(g) to approve financial statement and the Board's report;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(h) to diversify the business of the company;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(i) to approve amalgamation, merger or reconstruction;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(j) to take over a company or acquire a controlling or substantial stake in another company;<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt;color:black">(k) any other matter which may be prescribed:</span><span lang="EN-US" style="font-size:11pt"><u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">134<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Board report on Statutory compliance<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Directors Responsibility Statement on Statutory Compliance and ICOFR<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision applicable to private companies also<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">135<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Corporate Social Responsibility<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Applicable for companies whose total turnover is more than 1000 crores or net worth is 500 crores or more or net profits are more than 5 crores.<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision applicable for private limited companies also<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">138<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Appointment of Internal Auditors<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private Companies whose turnover is more than Rs 200 crores or borrowings from banks/FI exceeds Rs 100 crores or more are required to appoint internal auditor.<u></u><u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">New Provision<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">139<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Audit rotation<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Private limited companies with paid up share capital of more than 20 crores or public Borrowing from banks / FIs or Public deposits of more than Rs 50 crores shall not appoint an individual auditor for more than 1 term of 5 consecutive years or a firm for more than 2 terms of 5 consecutive years each<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">Excludes : Small Companies and OPC's only<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">New Provision<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">141(3)<u></u><u></u></span></p><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">(g)<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Number of companies – Audit Limit<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Disqualified if the person is an auditor in more than 20 companies. The following companies are not included in the limit – Small, OPC, Dormant and private limited companies with less than Rs 100 Crs of paid up share capital<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">224(1)B<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Private Companies were not included in the previous limit<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="margin-right:3.45pt;line-height:12.1599998474121px"><span lang="EN-US" style="font-size:11pt;line-height:13.9333333969116px">20 company limit shall not apply to private limited companies unless they fall under the limits as specified. <u></u><u></u></span></p><p class="MsoNormal" style="line-height:13.4399995803833px"><span lang="EN-US" style="font-size:11pt;line-height:15.3999996185303px">Shall apply the modification that the words "other than one person companies dormant companies, small companies and private companies having paid-up share capital less than one hundred crore rupees" shall be inserted after the words <span style="color:black">"</span>twenty companies".<u></u><u></u></span></p><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">143(12)<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Fraud reporting<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">In case the auditor has sufficient reason to believe that an offence involving fraud, is being or has been committed against the company by officers or employees of the company, he shall report the matter to the Central Government immediately but not later than sixty days of his knowledge and by following the prescribed procedure<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">New Provisions applicable for private limited companies also. Need to report to the government in Form ADT 4 – carries a large penalty for non compliance<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Companies Amendment Bill 2014 proposes a two tier reporting to the BoD or to the Central Government<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">144<u></u><u></u></span></p></td><td width="132" valign="top" style="width:99.25pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">Auditors not to render certain services<u></u><u></u></span></p></td><td width="208" valign="top" style="width:155.9pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">An auditor appointed under this Act shall not render services directly or indirectly to the company or its holding company or subsidiary company like internal audits, book keeping, management services, actuarial services etc,.This is with effect from April 1, 2015<u></u><u></u></span></p><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt"><u></u> <u></u></span></p></td><td width="85" valign="top" style="width:63.8pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" align="center" style="text-align:center"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td><td width="151" valign="top" style="width:4cm;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal" style="text-align:justify"><span lang="EN-US" style="font-size:11pt">New Provisions applicable for private limited companies also<u></u><u></u></span></p></td><td width="217" valign="top" style="width:163pt;border-style:none solid solid none;border-bottom-color:windowtext;border-bottom-width:1pt;border-right-color:windowtext;border-right-width:1pt;padding:0cm 5.4pt;height:28.05pt"><p class="MsoNormal"><span lang="EN-US" style="font-size:11pt">NA<u></u><u></u></span></p></td></tr><tr style="height:28.05pt"><td width="56" valign="top" style="width:42.25pt;border-style:none solid solid;border-right-color:windowtext;border-bottom-color:windowtext;border-left-color:windowtext;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt;height:28.05pt;background-image:initial;background-repeat:initial"></td></tr></tbody></table></div><span style="font-size:12.8000001907349px">...</span><br clear="all"><div><br></div>-- <br><div class="gmail_signature"><div dir="ltr"><font size="2">CA..THOMAS K.GEORGE</font><div><font size="2">MANAGING PARTNER,</font></div><div><font size="2">THOMAS & ASSOCIATES,</font></div><div><font size="2">CHARTERED ACCOUNTANTS,C</font></div><div><font size="2">MOOLAIPARAMBIL ATM CHAMBERS,</font></div><div><font size="2">OPP.RMS, RAILWAY STATION ROAD,</font></div><div><font size="2">KOTTAYAM-686001</font></div><div><font size="2">PHONE : 04812300496</font></div><div><font size="2">MOB :919447773937</font></div><div><font size="2"><a href="http://www.thomasandassociatesindia.com" target="_blank">www.thomasandassociatesindia.com</a></font></div><div><br></div></div></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-85986622740393130702015-07-27T00:30:00.001-07:002015-07-27T00:30:14.789-07:00APPOINTMENT OF AUDITOR<div dir="ltr"><table width="100%" style="color:rgb(0,0,0);font-family:Arial,Helvetica,sans-serif;font-size:12px"><tbody><tr><td width="90%" style="padding:2px"><table width="600px"><tbody><tr><td style="padding:2px"><span id="ctl00_Mainbody_Accordion1_Pane_7_content_dl_ctl01_lbltopic" style="font-weight:bold">Notice of Appointment of auditor by the company</span></td><td align="right" style="padding:2px"></td></tr></tbody></table></td><td class="comp_like_count" style="padding:2px"></td></tr></tbody></table><div class="cls175" style="color:rgb(0,0,0);font-family:Arial,Helvetica,sans-serif;font-size:12px;padding:2px;overflow:hidden"><table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse"><tbody><tr><td style="padding:2px;width:661px;font-size:13px;font-weight:bold;border:1px solid rgb(153,153,153)">Form to be filed</td><td style="padding:2px;width:661px;font-size:13px;font-weight:bold;border:1px solid rgb(153,153,153)">Time limit</td><td style="padding:2px;width:661px;font-size:13px;font-weight:bold;border:1px solid rgb(153,153,153)">To be filed with</td><td style="padding:2px;font-size:13px;font-weight:bold;border:1px solid rgb(153,153,153)">Documents required to be filed</td></tr></tbody></table><table border="0" cellspacing="0" cellpadding="8" width="100%" style="border-collapse:collapse"><tbody><tr><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">ADT-1</td><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">Within 15 days of the meeting in which the auditor is appointed.</td><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">Registrar</td><td style="padding:2px;vertical-align:top;border:1px solid rgb(153,153,153)"><ul style="margin:0px 5px 5px 25px"><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">The first auditor of a company, other than a Government company, is appointed by directors within 30 days from the date of incorporation.</span></li><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">In case of failure by board, by members within 90 days at an extraordinary general meeting and such auditor shall hold office <strong>till the conclusion of the first annual general meeting. [ section 139(6)]</strong></span></li></ul><p style="margin:0px;padding:0px"> </p><p style="margin:0px 0px 0px 4.15pt;padding:0px"><span style="font-family:arial,helvetica,sans-serif">Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the <strong>conclusion of that meeting till the conclusion of its sixth annual general meeting</strong> provided appointment shall be ratified by members at every annual general meeting.<strong>[section 139(1)]</strong></span></p><p style="margin:0px 0px 0px 4.15pt;padding:0px"> </p><p style="margin:0px 0px 0px 4.15pt;padding:0px"><span style="font-family:arial,helvetica,sans-serif"><strong><u>Attachments</u></strong></span></p><p style="margin:0px 0px 0px 4.15pt;padding:0px"> </p><ol><li><span style="font-family:arial,helvetica,sans-serif">Board Resolution</span></li><li><span style="font-family:arial,helvetica,sans-serif">Copy of the intimation sent by the company</span></li><li><span style="font-family:arial,helvetica,sans-serif">Certified true copy of resolution passed in the annual general meeting</span></li><li><span style="font-family:arial,helvetica,sans-serif">Certified true copy of special resolution passed in the extraordinary general meeting along with explanatory statement.</span></li><li><span style="font-family:arial,helvetica,sans-serif">Written consent of the auditor</span></li><li><span style="font-family:arial,helvetica,sans-serif">Certificate from auditor that</span></li></ol><ul style="margin:0px 5px 5px 25px"><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">eligible for appointment and is not disqualified for appointment under the Act, the Chartered Accountant Act,1949 and the rules or regulation made there under.</span></li><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">The proposed appointment is as per the term provided under the Act</span></li><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">The proposed appointment is within the limit laid down by or under the authority of the Act</span></li><li style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">The list of proceedings against the auditor or audit firm or any partner of the audit firm pending with respect to professional matters of conduct, as disclosed in the certificate, is true and correct.</span></li></ul><p style="margin:0px 0px 0px 4.15pt;padding:0px"> </p></td></tr></tbody></table><table border="0" cellspacing="0" cellpadding="8" width="100%" style="border-collapse:collapse"><tbody><tr><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">MGT-14</td><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">N.A</td><td style="padding:2px;width:661px;vertical-align:top;border:1px solid rgb(153,153,153)">Registrar</td><td style="padding:2px;vertical-align:top;border:1px solid rgb(153,153,153)"><p style="margin:0px 0px 0px 4.15pt;padding:0px"><span style="font-family:arial,helvetica,sans-serif">In case of failure by board to appoint auditor, by members within 90 days at an Extraordinary General Meeting and such auditor shall hold office <strong>till the conclusion of the first annual general meeting.</strong></span></p><p style="margin:0px 0px 0px 4.15pt;padding:0px"> </p><p style="margin:0px 0px 0px 4.15pt;padding:0px"><span style="font-family:arial,helvetica,sans-serif"><strong><u>Attachments</u></strong></span></p><p style="margin:0px;padding:0px"><span style="font-family:arial,helvetica,sans-serif">Copy of resolution</span></p></td></tr></tbody></table></div><div> <br></div><div class="gmail_signature"><div dir="ltr"><font size="2">CA..THOMAS K.GEORGE</font><div><font size="2">MANAGING PARTNER,</font></div><div><font size="2">THOMAS & ASSOCIATES,</font></div><div><font size="2">CHARTERED ACCOUNTANTS,C</font></div><div><font size="2">MOOLAIPARAMBIL ATM CHAMBERS,</font></div><div><font size="2">OPP.RMS, RAILWAY STATION ROAD,</font></div><div><font size="2">KOTTAYAM-686001</font></div><div><font size="2">PHONE : 04812300496</font></div><div><font size="2">MOB :919447773937</font></div><div><font size="2"><a href="http://www.thomasandassociatesindia.com" target="_blank">www.thomasandassociatesindia.com</a></font></div><div><br></div></div></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-40540019069495036872015-07-26T22:53:00.001-07:002015-07-26T22:53:18.293-07:00EXEMPTIONS APPLICABLE TO PRIVATE LIMITED COMPANIES<div dir="ltr"><table border="1" cellspacing="0" cellpadding="5" width="100%" style="color:rgb(0,0,0);font-size:12px;font-family:arial,helvetica,sans-serif;line-height:22px;text-align:justify"><tbody><tr><td><strong>Section</strong></td><td><b>EXEMPTIONS APPLICABLE TO PRIVATE LIMITED COMPANIES</b></td></tr><tr><td><strong>Section 2 -</strong> <strong>Related party</strong></td><td>Provision of section 2 (76) (vii) i.e. Holding, subsidiary or an associate company or a subsidiary of holding company to which it is also a subsidiary (fellow subsidiary) will not be considered as related party for the purpose of section 188. <strong>[Section 2</strong><strong>(76)(viii)]</strong></td></tr><tr><td rowspan="2"><strong>Section 3 - Formation of company.</strong></td><td>Only two persons are required to forma Private Company. <strong>[Section 3(1)b]</strong></td></tr><tr><td>A private company other than a company registered under section 8 of the Act having paid up share capital of Rs 50 lakhs or less or average annual turnover during the relevant period is Rs 2 crore or less may convert itself into one person company by passing a special resolution in the general meeting. [<strong>Section 3 read with rule no 7 of the Companies (Incorporation) Rules, 2014]</strong></td></tr><tr><td><strong>Section 39- Allotment of securities by company</strong></td><td>Requirement related to minimum subscription and minimum application money is not application</td></tr><tr><td><strong>Section 43 -</strong><strong>Kinds of share capital</strong></td><td>Provisions of sec 43 shall not apply where memorandum or articles of association of a Private Company so provides.</td></tr><tr><td><strong>Section 47- </strong><strong>Voting rights</strong></td><td>Provisions of sec 47 shall not apply where memorandum or articles of association of a Private Company so provides</td></tr><tr><td><strong>Section 54- Issue of sweat equity shares</strong></td><td>Not required to comply SEBI guidelines for issue of sweat equity shares</td></tr><tr><td><strong>Section 62</strong>- <strong>Further issue of share capital</strong></td><td>A private company is not required to comply with the provision with respect to minimum time period to open an offer and dispatch of offer notice through registered post or speed post or through electronic mode if 90%, of the members of a private company have given their consent in writing or in electronic mode. <strong>[Section 62 (1) (a) (i) & 2]</strong></td></tr><tr><td><strong>Section 62 -Further issue of share capital</strong></td><td>A private Company can offer shares to employees under a scheme of employees' stock option by passing ordinary resolution instead of a special resolution.<strong>[Section 62 </strong><strong>(1) (b)]</strong></td></tr><tr><td><strong>Section 67 - Restrictions on purchase by company or giving of loans by it for purchase of its shares.</strong></td><td><strong>Provisions of sec 67 shall not be applicable to Private Companies :</strong><ul><li style="margin:0px;padding:0px">in whose share capital no other body corporate has invested any money;</li></ul><ul><li style="margin:0px;padding:0px">if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice its paid up share capital or fifty crore rupees whichever is lower; and</li></ul><ul><li style="margin:0px;padding:0px">such a company is not in default in repayment of such borrowings subsisting at the time of making transactions under this section.</li></ul></td></tr><tr><td><strong>Section 68- Power of company to purchase its own securities</strong></td><td>Not required to comply SEBI guidelines for issue of sweat equity shares ,file declaration of solvency and return of buy-back with SEBI</td></tr><tr><td><strong>Section 73 -Prohibition on acceptance of deposits from public</strong></td><td>The provisions relating to acceptance of deposits shall not apply to a private company which accepts deposits from its members monies not exceeding 100%, of aggregate of the paid up share capital and free reserves, and such company shall file the details of monies so accepted to the Registrar in such manner as may be specified<strong> [Section </strong><strong>73(2) (a) to (e)]</strong></td></tr><tr><td><strong>Section 93- Return to be filed with the Registrar in case promoter's stake changes</strong></td><td>Not required to file return of changes in shareholding of promoter and top ten shareholders with the Registrar</td></tr><tr><td><strong>Section 101- </strong><strong>Notice of meeting</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 102- </strong><strong>Statement to be annexed to notice</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 103- </strong><strong>Quorum for meetings</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 104- Chairman of meetings</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 105- </strong><strong>Proxies</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 106- </strong><strong>Restriction on voting rights</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 107- </strong><strong>Voting by show of hands</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 108- Voting through electronic means</strong></td><td>Not required to provide facility to members to exercise their right to vote at general meeting by electronic means. <strong>[Section 108 read with rule 20(1) of the Companies (Management and Administration) Rules, 2014]</strong></td></tr><tr><td><strong>Section 109 -</strong><strong> Demand for poll</strong></td><td>Shall apply unless otherwise specified in section or the Articles of the company provide otherwise</td></tr><tr><td><strong>Section 110- Postal ballot</strong></td><td>Not required to pass mandatory business by way of postal ballot. <strong>[Section 110 read with Rule 22(16) of the Companies (Management and Administration) Rules, 2014]</strong></td></tr><tr><td><strong>Section </strong><strong>117 </strong><strong>- </strong><strong>Resolutions and agreements to</strong><strong> be filed</strong></td><td>Board resolution passed u/s 179 (3) are not required to be filed with Registrar in MGT-14 <strong>[Section</strong> <strong>117 (3) (g)]</strong></td></tr><tr><td><strong>Section 120- Maintenance and Inspection of documents in electronic form</strong></td><td>Not required to maintain records in electronic format <strong>[Section 120 read with Rule no 27 (1) of the Companies (Management and Administration) Rules 2014]</strong></td></tr><tr><td><strong>Section 121- Report on annual general meeting</strong></td><td>Not required to file report on annual general meeting with Registrar</td></tr><tr><td><strong>Section 134- Financial Statement, Board's report, etc</strong></td><td><ul><li style="margin:0px;padding:0px">Private company is not required to state in its boards' report the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors.</li><li style="margin:0px;padding:0px">Not required to disclose in the directors responsibility statement , any statement regarding internal control</li></ul></td></tr><tr><td><strong>Section 136- Right of member to copies of audited financial statement</strong></td><td>Not required to place its financial statement including the consolidated financial statement along with all other documents required to be attached or annexed to, on its website, if any.</td></tr><tr><td rowspan="3"><strong>Section 149- Company to have Board of directors.</strong></td><td>Not required to have woman director on its Board. <strong>[Section 149 read with rule 3ofThe Companies (Appointment and Qualification of Directors) Rules, 2014]</strong></td></tr><tr><td>Not required to appoint independent director on its board. <strong>[Section 149 read with rule 4ofThe Companies (Appointment and Qualification of Directors) Rules, 2014]</strong></td></tr><tr><td>Required to have only two minimum directors.</td></tr><tr><td><strong>Section 152- Appointment of directors</strong></td><td>No requirement of retirement by rotation of directors at Annual General Meeting.</td></tr><tr><td><strong>Section 160 - </strong><strong>Right of persons other than retiring directors to stand for directorship</strong></td><td>Shall not apply</td></tr><tr><td><strong>Section 161- Appointment of additional director, alternate director and nominee director</strong></td><td>Not required to fill casual vacancy in meeting of its Board.</td></tr><tr><td><strong>Section 162-</strong><strong>Appointment of directors to be voted individually</strong></td><td>Shall not apply</td></tr><tr><td><strong>Section 164- Disqualifications for appointment of director.</strong></td><td>Can provide for additional grounds for disqualification of a director in its articles of association.</td></tr><tr><td><strong>Section 167- Vacation of office of director</strong></td><td>Can provide for additional grounds for vacation of office of a director in its articles of association .<strong>[Section 167(4)]</strong></td></tr><tr><td><strong>Section 177- Audit committee</strong></td><td>Not required to constitute audit committee.<strong> [Section 177 read with rule 6 of the Companies (Meeting of Board and its powers) Rules, 2014]</strong></td></tr><tr><td><strong>Section 178- Nomination and remuneration committee and stakeholder's relationship committee.</strong></td><td>Not required to constitute Nomination and remuneration committee. <strong>[Section 178 read with rule7 of the Companies (Meeting of Board and its powers) Rules, 2014]</strong></td></tr><tr><td><strong>Section 180- </strong><strong>Restrictions on powers of Board</strong></td><td>The Board of Directors can exercise the powers prescribed u/s 180 without passing a special resolution.</td></tr><tr><td><strong>Section 184- Disclosure of interest by director</strong></td><td>The Directors may participate at the meeting of the Board in which the contract or arrangement is discussed after disclosure of his interest. <strong>[Section </strong><strong>184 (2)]</strong></td></tr><tr><td><strong>Section 185 - </strong><strong>Loan to Directors</strong></td><td>Shall not apply to a private company -<ul><li style="margin:0px;padding:0px">in whose share capital no other body corporate has invested any money;</li><li style="margin:0px;padding:0px">if 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 lower; and</li><li style="margin:0px;padding:0px">such a company has no default in repayment of such borrowings subsisting at the time of making transactions under this section</li></ul></td></tr><tr><td><strong>Section 188 - </strong><strong>Related party transactions</strong></td><td><ul><li style="margin:0px;padding:0px">Shall not be required to obtain the approval of shareholders by way of special resolution in case the transactions with the related party exceed the prescribed limits [<strong>Section</strong> <strong>188 (1) first proviso]</strong></li><li style="margin:0px;padding:0px">Related party can vote on the resolution in the shareholders meeting.<br>[<strong>Section</strong> <strong>188 (1) second proviso]</strong></li></ul></td></tr><tr><td><strong>Section 190- Contract of employment with managing or whole-time directors</strong></td><td>The provisions of this section shall not apply to a private company.</td></tr><tr><td><strong>Section 196</strong> - <strong>Appointment of managing director whole-time director or manager</strong></td><td>Compliance of Schedule V along with approval of shareholders& Central Government is not required for appointment of managing director, manager and whole time director and no returns needs to be filed with Registrar for this purpose. [<strong>Section</strong> <strong>196 (4) & (5</strong>)]</td></tr><tr><td><strong>Section 197- Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits</strong></td><td><ul><li style="margin:0px;padding:0px">The limit prescribed for remuneration with respect to directors shall not apply to a private company</li><li style="margin:0px;padding:0px">No approval of Central Government is required in case of increase in the remuneration of directors, managing director, whole-time director or manager whether at appointment, re-appointment or at any other time.</li><li style="margin:0px;padding:0px">Not required to disclose in the Board reports the details relating to remuneration</li></ul><strong>[Section 197 read with Rule no 5(1) of the Companies (Appointment and payment of managerial remuneration) 2014]</strong></td></tr><tr><td><strong>Section 203- Appointment of key managerial personnel</strong></td><td>Not required to appoint key managerial personnel except Company Secretary. <strong>[Section 203 read with rule 8 & 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]</strong></td></tr><tr><td><strong>Section 204- Secretarial Audit for bigger companies</strong></td><td>Not required to get a secretarial audit conducted.<strong> [Section 204 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Persons)</strong></td></tr></tbody></table><div> <br></div><div class="gmail_signature"><div dir="ltr"><font size="2">CA..THOMAS K.GEORGE</font><div><font size="2">MANAGING PARTNER,</font></div><div><font size="2">THOMAS & ASSOCIATES,</font></div><div><font size="2">CHARTERED ACCOUNTANTS,C</font></div><div><font size="2">MOOLAIPARAMBIL ATM CHAMBERS,</font></div><div><font size="2">OPP.RMS, RAILWAY STATION ROAD,</font></div><div><font size="2">KOTTAYAM-686001</font></div><div><font size="2">PHONE : 04812300496</font></div><div><font size="2">MOB :919447773937</font></div><div><font size="2"><a href="http://www.thomasandassociatesindia.com" target="_blank">www.thomasandassociatesindia.com</a></font></div><div><br></div></div></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-32578659785476452672015-06-11T22:38:00.001-07:002015-06-11T22:38:37.954-07:00TDS ON GTA<div dir="ltr"><br clear="all"><div><br></div>-- <b style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px"><u><span style="font-size:11pt">Clarification regarding deduction of tax from payments made to transporters u/s 194Cin view of amendment to section 194C(6) effective from 01.06.2015</span></u></b><div align="center" style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:center"><b><span style="font-size:11pt"> </span></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><b><u><span style="font-size:11pt">Position up to 31.05.2015</span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><b><u><span style="font-size:11pt"><span style="text-decoration:none"> </span></span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><span style="font-size:11pt">On transport contracts, if payment is made or the liability to pay has arisen on or before 31.05.2015, as the case may be, the payer is not liable to deduct tax at source, provided the transport contractor has furnished his PAN to the payer. (i.e. No TDS if transport contractor furnished his pan (irrespective of the size of the transport contractor))</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><span style="font-size:11pt"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><b><u><span style="font-size:11pt">Position on or after 01.06.2015</span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><b><u><span style="font-size:11pt"><span style="text-decoration:none"> </span></span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">1.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">The amended provisions apply for payments made or liability to pay reckoned on or after 01.06.2015, as the case may be, in respect of transport contracts of the nature mentioned below;</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">2.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">The payer may be engaged in the business of transport <b><u>or otherwise</u></b> (this is clarified by the Memorandum explaining the Finance Bill 2015) <b>(i.e. the payer may be engaged in any business)</b>;</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">3.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><b><u><span lang="EN-US" style="font-family:'Times New Roman',serif">Conditions vis-à-vis the recipient (i.e. the transport contractor)</span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">a.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">The recipient shall be engaged in the business of <b><u>plying, hiring or leasing</u> </b>goods carriages (and)</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">b.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">The recipient <b><u>shall not own more than 10 goods carriages</u></b> at any time during the financial year (and)</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">c.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">The recipient shall furnish to the payer a <b><u>declaration</u></b> to the above effect and along with copy of his / its<b><u>PAN</u></b></span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:54pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">4.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><b><u><span lang="EN-US" style="font-family:'Times New Roman',serif">Conditions vis-à-vis payer (i.e. S. 194C(7) which is not amended)</span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">The payer shall <b><u>inform the Income Tax Authority</u></b> the prescribed particulars in the prescribed manner about the matters dealt with in paragraph 3 above</span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;text-align:justify"><span style="font-size:11pt"> </span></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">5.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><b><u><span lang="EN-US" style="font-family:'Times New Roman',serif">What are the forms prescribed</span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><b><u><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></u></b></div><table border="1" cellpadding="0" cellspacing="0" style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-left:18pt;border-collapse:collapse;border:none"><tbody><tr><td valign="top" style="border:1pt solid black;padding:0cm 5.4pt"><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><b><span lang="EN-US" style="font-family:'Times New Roman',serif">For declaration from recipient</span></b></div></td><td valign="top" style="border-style:solid solid solid none;border-top-color:black;border-right-color:black;border-bottom-color:black;border-top-width:1pt;border-right-width:1pt;border-bottom-width:1pt;padding:0cm 5.4pt"><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">No form is prescribed yet. However it is advisable that declaration may be obtained in the format of erstwhile form 15 - I with suitable modifications. Form 15 I is enclosed for ready reference.</span></div></td></tr><tr><td valign="top" style="border-style:none solid solid;border-right-color:black;border-bottom-color:black;border-left-color:black;border-right-width:1pt;border-bottom-width:1pt;border-left-width:1pt;padding:0cm 5.4pt"><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><b><span lang="EN-US" style="font-family:'Times New Roman',serif">For furnishing of information by payer</span></b></div></td><td valign="top" style="border-style:none solid solid none;border-bottom-color:black;border-bottom-width:1pt;border-right-color:black;border-right-width:1pt;padding:0cm 5.4pt"><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">Here also no format is prescribed. The options are as under :</span></div><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">1.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">Compile information in the format of erstwhile Form 15 – J, with suitable modifications, and produce the details when called for by the assessing officer. Form 15 – J is enclosed for ready reference</span></div><div style="margin:0cm 0cm 0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></div><div style="margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><span lang="EN-US" style="font-family:'Times New Roman',serif">2.<span style="font-stretch:normal;font-size:7pt;font-family:'Times New Roman'"> </span></span><span lang="EN-US" style="font-family:'Times New Roman',serif">Furnish the particulars on a quarterly basis in Form No. 26Q (i.e. disclose as amount paid and no TDS done). On processing of 26Q, this sometimes can result in demands raised by TRACES .</span></div></td></tr></tbody></table><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;margin-right:0cm;margin-left:18pt;margin-bottom:0.0001pt;text-align:justify"><b><u><span lang="EN-US" style="font-family:'Times New Roman',serif"> </span></u></b></div><div style="color:rgb(0,0,0);font-family:HelveticaNeue,'Helvetica Neue',Helvetica,Arial,'Lucida Grande',sans-serif;font-size:16px;background-image:initial;background-repeat:initial"><span style="font-size:11pt"> </span></div><div><span style="font-size:11pt"><br></span></div><div class="gmail_signature"><div dir="ltr"><font size="2">CA..THOMAS K.GEORGE</font><div><font size="2">MANAGING PARTNER,</font></div><div><font size="2">THOMAS & ASSOCIATES,</font></div><div><font size="2">CHARTERED ACCOUNTANTS,C</font></div><div><font size="2">MOOLAIPARAMBIL ATM CHAMBERS,</font></div><div><font size="2">OPP.RMS, RAILWAY STATION ROAD,</font></div><div><font size="2">KOTTAYAM-686001</font></div><div><font size="2">PHONE : 04812300496</font></div><div><font size="2">MOB :919447773937</font></div><div><font size="2"><a href="http://www.thomasandassociatesindia.com" target="_blank">www.thomasandassociatesindia.com</a></font></div><div><br></div></div></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-81796856637751104612015-06-11T01:26:00.001-07:002015-06-11T01:26:33.266-07:00SERVICE TAX PROVISIONS<div dir="ltr"><div><p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Mail from CA.Thomas Kenny </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Last Saturday we attended a CPE seminar at Ekm.The first session was the ICDS ie the accounting standards notified for Income Tax purposes. </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">The second session dealt with service tax audit.</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Please find some points for the benefit of partners who could not attend .Please correct any errors .This email is only for the purpose of facilitating further discussion in our partners meeting on Saturday.</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Some of the important points are </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">1 There is a limitation period for serving Show Cause Notice (SCN) by the department ie 5 years from the relevant date if the assessee is involved in fraud, suppression of facts, misrepresentation ,collusion, contravention of the provisions of the rules etc. ( ie if there is mala fide intention on assesses part) .In other cases its 18 months from the relevant date. Note: Previously the ordinary time period was 12 months which was extended to 18 months by Finance Act 2012 dated 28.05.2012.</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">It is important to keep the envelope cover of the show cause notice to establish the date of receipt of the Show Cause Notice ie date stamped on the envelope</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Relevant date is the due date for filing ST return or the actual date of filing the return whichever is later. </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">The period of 5 years or 18 months has to be worked backwards ie from the date of receipt of show cause notice work backwards towards the relevant date. See if this period so worked out exceeds the limitation period of 5 years or 18 months as the case maybe</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">2 When the assesse receives the summons the auditor should not go along with assessed as in that case auditor cannot later make representation later on behalf of the assesse. <br> 3 The reply to the show cause notice should cover all possible points .Otherwise it will be difficult for the assessee at the appeals stage to include additional points or to frame new reasoning.<br> 4 When the audit party from service tax dept. comes for audit the assessee should make all information and documents available to them including accounts. If not so done the audit party can treat all credits as income. The assessee will have no standing if the the information is not so furnished, as at the appeal stage the appellate authority is likely to reject the same <br> 5 It there is a genuine mistake in not paying service tax admit the same before the service tax authorities ,for example due to ignorance of provisions of law.<br> 6 Before the service of notice by service tax authorities, if its discovered that there is a default in payment, pay the same at the earliest. Paying after the service of notice can attract full penalties <br> 7 Look for any flaws in the SCN and reply based on the facts of the case <br> 8 When the assesses is before the service tax authorities after being summoned and requested to sign any document be sure that the information contained therein is correct <br> 9 If you sign the above document and discover it was incorrect, the facility of forwarding a retraction letter is available <br> 10 In case the assessee admits in the ST 3 that service tax is payable ,then recovery proceedings can be initiated. So be careful that any arithmetic errors are not there in the ST 3 return </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">11 ST 3 return can be revised only once ,within a period of 90 days </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">12 On taking a new registration, the assessee may send a letter to the department explaining in detail the nature of business, services offered, abatements to be availed and other relevant information .This letter will be helpful if later on if any suppression is alleged.</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black"> </span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify"><span style="font-size:16pt;color:black">Regards</span></p> <p class="MsoNormal" style="margin-bottom:0.0001pt;text-align:justify;background:rgb(241,241,241)"><span style="font-size:16pt;color:black"></span><span style="font-size:16pt;color:black"></span></p> <p class="MsoNormal" style="text-align:justify"><span style="font-size:16pt;line-height:107%"> </span></p></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-17782607457279866162015-06-11T01:00:00.001-07:002015-06-11T01:00:22.310-07:00SERVICE TAX PROVISIONS<div dir="ltr"><br clear="all"><div><br></div>-- <br><div class="gmail_signature"><div dir="ltr"><font size="2">CA..THOMAS K.GEORGE</font><div><font size="2">MANAGING PARTNER,</font></div><div><font size="2">THOMAS & ASSOCIATES,</font></div><div><font size="2">CHARTERED ACCOUNTANTS,C</font></div><div><font size="2">MOOLAIPARAMBIL ATM CHAMBERS,</font></div><div><font size="2">OPP.RMS, RAILWAY STATION ROAD,</font></div><div><font size="2">KOTTAYAM-686001</font></div><div><font size="2">PHONE : 04812300496</font></div><div><font size="2">MOB :919447773937</font></div><div><font size="2"><a href="http://www.thomasandassociatesindia.com" target="_blank">www.thomasandassociatesindia.com</a></font></div><div><br></div></div></div> </div> CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-12207220184180722015-04-23T01:58:00.002-07:002015-04-23T02:01:33.269-07:00Service Tax Abatement Rate Chart from 01.04.2015<div dir="ltr" style="text-align: left;" trbidi="on">
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<i style="background-color: #cfe2f3; font-family: Times, 'Times New Roman', serif; text-align: justify;"><span class="IL_AD" id="IL_AD2" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Abatement</span> in Service Tax was First Introduced Vide Principal <a href="http://taxguru.in/service-tax/service-tax-abatement-condition-rates-wef-01072012.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 26/2012-Service Tax, dated 20th June 2012">Notification No. 26/2012-Service Tax, dated 20th June 2012</a> and subsequently been amended vide <a href="http://taxguru.in/service-tax/st-change-abatement-rate-residential-unit.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;">Notification No. 2/2013 – Service Tax, dated the 1st March, 2013</a>, <a href="http://taxguru.in/service-tax/service-tax-construction-complex-building-civil-structure.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 9/2013 – Service Tax, Dated: May 8, 2013">Notification No. 9/2013 – Service Tax, Dated: May 8, 2013</a>, <a href="http://taxguru.in/service-tax/budget-2014-abatement-rate-vide-notification-82014st-dated-1172014.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 08/2014 – Service Tax Dated-11th July, 2014">Notification No. 08/2014 – Service Tax Dated-11th July, 2014</a> and <a href="http://taxguru.in/service-tax/abatement-notification-262012st-dated-2062012.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 8/2015-ST, Dated: March 01, 2015">Notification No. 8/2015-ST, Dated: March 01, 2015</a>.</i></div>
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<span style="background-color: #cfe2f3; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i>By Union Budget 2015 and <a href="http://taxguru.in/service-tax/abatement-notification-262012st-dated-2062012.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 8/2015-ST, Dated: March 01, 2015">Notification No. 8/2015-ST, Dated: March 01, 2015</a> following amendment been made to Abatement <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Provisions</span> wef 01.04.2015-</i></span></span></div>
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<span style="background-color: #cfe2f3; color: maroon; font-weight: normal; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif; font-size: small;"><i>Changes made in Service Tax Abatement Provisions with effect from 01/04/2015</i></span></span></h3>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">1. Transport of goods/ passengers by rail</span> – Hitherto, service tax was payable on 30% of the value of services of rail transport of goods and passengers (with or without accompanied belongings) without any condition. Now, the abatement shall be available subject to the condition that Cenvat credit on inputs, capital goods and input services, used for providing the taxable services has not been taken under CCR, 2004.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">2. Goods Transport Agency-</span> Abatement on “Transportation of goods by Goods Transport Agency” was 75% which has now been reduced to 70%.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span id="more-66730" style="margin: 0px; padding: 0px;"></span><span style="margin: 0px; padding: 0px;">3. Services provided in relation to chit-</span> Abatement on “Services provided in relation to chit” has been withdrawn.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">4. Transport of goods in a vessel</span>- Abatement on “Transportation of goods in a vessel” was 60% which has now been increased to 70%.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">5. Transport of passengers by Air</span>- Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings). The said abatement continues for economy class travel and in case of other than economy class the abatement has been reduced to 40%.</i></span></span></div>
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<span style="background-color: #cfe2f3; color: maroon; font-weight: normal; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif; font-size: small;"><i>Service Tax Rate Abatement Chart as Applicable from 01.04.2015 updated with Changes Made Vide Budget 2015 and <a href="http://taxguru.in/service-tax/abatement-notification-262012st-dated-2062012.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 8/2015-ST, Dated: March 01, 2015">Notification No. 8/2015-ST, Dated: March 01, 2015</a>.</i></span></span></h3>
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<span style="background-color: #cfe2f3; color: maroon; font-weight: normal; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif; font-size: small;"><i><br /></i></span></span></div>
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<span style="background-color: #cfe2f3; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i>Table</i></span></span></div>
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<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Sl.No.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Description of taxable service</i></span></span></td><td colspan="2" style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Percentage</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Conditions</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Taxable Value</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Abatement</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(1)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(2)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(3)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(4)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(5)</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>1</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Services in relation to financial leasing including hire purchase (Refer Note-1)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>10</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>90</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Nil.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>2</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Transport of goods by rail</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>3</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Transport of passengers, with or without accompanied belongings by rail</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Same as above</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>4</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span class="IL_AD" id="IL_AD10" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Bundled</span> service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">center</span>, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises (Refer Note-2)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>5</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Transport of passengers by air, with or without accompanied belongings in</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td rowspan="3" style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) economy class</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) other than economy class</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>6</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Renting of hotels, inns,<span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">guest houses</span>, clubs, campsites or other commercial places meant for residential or lodging purposes.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Same as above.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>7</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Services of goods transport agency in relation to transportation of goods.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken <span style="margin: 0px; padding: 0px;">by the service provider</span> under the provisions of the CENVAT Credit Rules, 2004.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>8</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Services provided in relation to chit</i></span></span></td><td colspan="3" style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Omitted Vide <span style="margin: 0px; padding: 0px;"><span class="IL_AD" id="IL_AD4" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Notification</span> No. 8/2015-ST, Dated: March 01, 2015</span></i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>9</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Renting of motorcab</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004;(ii) CENVAT credit on input service of renting of motorcab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>9A</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Transport of passengers, with or without accompanied belongings, by-a. a contract carriage other than motorcab.b. a radio taxi.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>10</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Transport of goods in a vessel</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i> 30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Same as above.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td rowspan="3" style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>11</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Services by a tour operator in relation to,-(i) a package tour (Refer Note-4)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>25</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>75</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) a tour, if the tour operator is providing services solely of arranging or booking<span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">accommodation for</span>any person in relation to a tour (Refer Note-5)</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>10</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>90</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii) The invoice, bill or <span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">challan</span>issued indicates that it is towards the charges for such accommodation.(iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(iii) any services other than specified at (i) and (ii) above.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>40</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>60</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>12.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(Refer Note-3)Construction of a complex, building, civil structure or a part thereof, intended for a sale to a <span class="IL_AD" id="IL_AD11" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">buyer</span>, wholly or partly, except where entire consideration is received after issuance of completion certificate by the competent authority,-</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(a) for a residential unit satisfying both the following conditions, namely:–(i) the carpet area of the unit is less than 2000 square feet; and <span style="margin: 0px; padding: 0px;">(ii) the amount charged for the unit is less than rupees one crore;</span></i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>25</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>75</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) The value of land is included in the amount charged from the service receiver.</i></span></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(b) for other than the (a) above.</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>30</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>70</i></span></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"></td></tr>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">Note-1 </span>For the purposes of exemption at Serial number 1 –</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) The amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount <span class="IL_AD" id="IL_AD7" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">calculated</span> in terms of (i) above.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">Note-2</span>. For the purposes of exemption at Serial number 4 –</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting-</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) the amount charged for such goods or services supplied to the service provider, if any; and</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) the value added tax or sales tax, if any, levied thereon:</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted <span class="IL_AD" id="IL_AD9" style="background-attachment: scroll !important; background-clip: initial !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">accounting principles</span>.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">Note-3</span>. For the purposes of exemption at Serial number 12 –</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(i) the amount charged for such goods or services supplied to the service provider, if any; and</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>(ii) the value added tax or sales tax, if any, levied thereon:</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i>Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">Note-4</span> “package tour” means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour,</i></span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Times, Times New Roman, serif;"><i><span style="margin: 0px; padding: 0px;">Note-5</span> “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours,</i></span></span></div>
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<span style="background-color: #cfe2f3; color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>- See more at: http://taxguru.in</i></span></span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-20473502066793768042015-04-23T00:49:00.004-07:002015-04-23T00:51:28.197-07:00Reverse and Partial Reverse Mechanism Chart from 01.04.2015<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Reverse Mechanism and Partial Reverse Mechanism in Service Tax was First Introduced Vide Principal <a href="http://taxguru.in/service-tax/taxable-services-extent-service-tax-payable-thereon.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 30/2012-Service Tax Dated- 20th June, 2012 "><span style="margin: 0px; padding: 0px;">Notification No. 30/2012-Service Tax</span> Dated- 20<sup style="margin: 0px; padding: 0px;">th</sup> June, 2012</a><span style="margin: 0px; padding: 0px;"><a href="http://taxguru.in/service-tax/taxable-services-extent-service-tax-payable-thereon.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 30/2012-Service Tax Dated- 20th June, 2012 "> </a> and subsequently been amended vide <a href="http://taxguru.in/service-tax/service-tax-payable-services-corrigendum.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Corrigendum Notification [F. No.334/1/2012 -TRU], dated 29-6-2012">Corrigendum </a></span><a href="http://taxguru.in/service-tax/service-tax-payable-services-corrigendum.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Corrigendum Notification [F. No.334/1/2012 -TRU], dated 29-6-2012">Notification [F. No.334/1/2012 -TRU], dated 29-6-2012</a><span style="margin: 0px; padding: 0px;">, </span><span style="margin: 0px; padding: 0px;"><a href="http://taxguru.in/service-tax/payment-service-tax-service-tax-payable-services-amendment-notification-302012st-dated-2062012.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 45/2012-Service Tax, dated 7th August, 2012">Notification No. 45/2012-Service Tax, dated 7th August, 2012</a> , </span><a href="http://taxguru.in/service-tax/budget-2014-reverse-charge-mechanismnotification-102014st-dated-1172014.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No. 10/2014-Service Tax Dated- 11th July, 2014 ">Notification No. 10/2014-Service Tax Dated- 11th July, 2014 </a>and <span style="margin: 0px; padding: 0px;"><a href="http://taxguru.in/service-tax/reverse-charge-mechanism-vide-notification-72015st-dated-01032015.html" style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;" target="_blank" title="Notification No.7/2015-Service Tax, Dated- 1st March, 2015">Notification No.7/2015-Service Tax, Dated- 1<sup style="margin: 0px; padding: 0px;">st</sup> March, 2015</a>.</span><span id="more-66729" style="margin: 0px; padding: 0px;"></span></i></span></div>
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<span style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">After Considering all these Notifications We have Compiled The Reverse and Partial Reverse Mechanism Chart as Applicable from 01.04.2015-</i></span></span></div>
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<span style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><br /></i></span></span></div>
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<span style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Reverse and Partial Reverse Mechanism Chart with effect from 01.04.2015 and The extent of service tax payable thereon by the person who provides the service and any other person liable for paying service tax for the taxable services </i></span></span></div>
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<span style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Table</i></span></span></div>
<table style="color: #5e5e5e; height: 2317px; line-height: 19.5px; margin: 0px; padding: 0px; width: 565px;"><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Sl. No.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Description of a service</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Percentage of service tax payable by the person providing service</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Percentage of service tax payable by any person liable for paying service tax other than the service provider</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(1)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(2)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(3)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(4)</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance<span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">business</span></i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1A</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by a recovery agent to a banking company or <span class="IL_AD" id="IL_AD9" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">a financial institution</span> or a non-banking financial company (Effective from 01.04.2015)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1B.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by <span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">a mutual fund</span> agent or distributor, to a mutual fund or asset <span class="IL_AD" id="IL_AD12" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">management company</span> (Effective from 01.04.2015)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1C.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of service provided or agreed to be provided by a selling or marketing agent of <span class="IL_AD" id="IL_AD10" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">lottery</span> <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">tickets</span> to a lottery distributor or selling agent</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">2</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road to Company, Partnership Firm, Registered Factory, Registered Society, co-operative society, AOP, LLP, Person Registered Under Central Excise Act, 1944 including Excise Dealers</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">3</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">4</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by an arbitral tribunal to any Business entity</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">5</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services to any Business entity</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">5A</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">6</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by Government or local authority excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 to any Business Entity</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td rowspan="2" style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">7</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on <span style="margin: 0px; padding: 0px;">abated value</span> to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers <span style="margin: 0px; padding: 0px;">on non abated value</span> to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate (Revised wef 01.10.2014)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">50%</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">50%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">8.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided by way of supply of manpower for any purpose or<span class="IL_AD" id="IL_AD4" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">security</span> services by individual, HUF, firm or AOP to Body Corporate</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">9.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of services provided or agreed to be provided in service portion in execution of works contract by individual, HUF, firm or AOP to Body Corporate</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">50%</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">50%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">10</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">11.</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">in respect of any service provided or agreed to be provided by a person involving an aggregator in any manner to any Business Entity(Effective from 01.03.2015)</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Nil</i></span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">100%</i></span></td></tr>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">notification</span>.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><br /></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the <span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">valuation</span> method as per choice, independent of valuation method adopted by the provider of service.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><br /></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Explanation-III. Hitherto, support services provided by a Government/Local authority to any business entity was subject to 100% reverse charge. The scope of reverse charge has now been extended in case of all services provided by the Government/Local authority to such business entities. The exclusion from reverse charge on renting of immovable property and some specified services of Sec. 66D of the Act shall continue.</i></span></div>
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<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">- See more at: http://taxguru.in</i></span></span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-38190854757959542532015-04-18T01:45:00.000-07:002015-04-18T03:59:12.696-07:00APPOINTMENT OF AUDITOR<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Notice of Appointment of auditor by the company</span></b><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman",serif; font-size: 10.0pt;">Form to be filed<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman",serif; font-size: 10.0pt;">Time limit<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman",serif; font-size: 10.0pt;">To be filed with<o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman",serif; font-size: 10.0pt;">Documents required to be filed<o:p></o:p></span></b></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">ADT-1<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Within 15 days of the meeting in which the auditor is appointed.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Registrar<o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">The first auditor of a company, other than a Government company, is appointed by directors within 30 days from the date of incorporation.</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">In case of failure by board, by members within 90 days at an extraordinary general meeting and such auditor shall hold office <b>till the conclusion of the first annual general meeting. [ section 139(6)]</b></span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the <b>conclusion of that meeting till the conclusion of its sixth annual general meeting</b> provided appointment shall be ratified by members at every annual general meeting.<b>[section 139(1)]</b></span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<b><u><span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">Attachments</span></u></b><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">eligible for appointment and is not disqualified for appointment under the Act, the Chartered Accountant Act,1949 and the rules or regulation made there under.</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">The proposed appointment is as per the term provided under the Act</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">The proposed appointment is within the limit laid down by or under the authority of the Act</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">The list of proceedings against the auditor or audit firm or any partner of the audit firm pending with respect to professional matters of conduct, as disclosed in the certificate, is true and correct.</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">N.A<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman",serif; font-size: 12.0pt;">Registrar<o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">In case of failure by board to appoint auditor, by members within 90 days at an Extraordinary General Meeting and such auditor shall hold office <b>till the conclusion of the first annual general meeting.</b></span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Arial",sans-serif; font-size: 9.0pt;">Copy of resolution</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="color: #002060; font-family: "Garamond",serif; font-size: 10.0pt;">CA.THOMAS K.GEORGE<o:p></o:p></span></div>
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<span style="color: #002060; font-family: "Garamond",serif; font-size: 10.0pt;">www.thomasandassociatesindia.com</span><span style="color: #002060; font-size: 14.0pt;"><o:p></o:p></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-14003501527302629262015-04-18T01:23:00.000-07:002015-04-18T03:57:50.250-07:00SHIFTING OF REGISTERED OFFICE<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;"><i><b><span style="color: #0070c1; font-size: 14.0pt;">PROVISIONS AND PROCEDURES UNDER </span></b><b><span style="color: #0070c1; font-size: 14.0pt;">COMPANIES ACT, 2013</span></b></i></span></div>
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<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif; font-size: 14.0pt;"><i><br /></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black; font-size: 12.0pt;">Companies Act mandate every company registered under it to have a </span><span style="font-size: 12pt;">Registered Office. Provisions regarding registered office of a company are </span><span style="font-size: 12pt;">primarily contained in Section 12 of the Companies Act, 2013.</span></i></span></div>
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<b><span style="color: #994806; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>PROLOGUE<o:p></o:p></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black; font-size: 12.0pt;">As per Section 12, every company is required on and from the 15</span><span style="color: black; font-size: 8.0pt;">th </span><span style="color: black; font-size: 12.0pt;">day of its </span><span style="font-size: 12pt;">incorporation and at all times thereafter to have a registered office which is </span><span style="font-size: 12pt;">capable of receiving and acknowledging all communications and notices as may </span><span style="font-size: 12pt;">be addressed to it.</span></i></span></div>
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<span style="font-size: 12pt;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black; font-size: 12.0pt;">Companies are also required to furnish a verification of their registered office to </span><span style="font-size: 12pt;">the Registrar of Companies (ROC) within 30 days of the incorporation in the </span></i></span><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">manner contained in the Rule 25 of Companies (Incorporation) Rules, 2014.</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>After incorporation, whenever there is a change in the registered office of the </i></span><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">company then, a notice of the change of the registered office along with a </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">verification of the registered office in the manner contained in Rule 27 of </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">Companies (Incorporation) Rules, 2014, needs to be filed with the ROC within </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">15 days of each change.</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>The State in which the Registered Office of the Company will be situated is </i></span><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">required to be mentioned in the Memorandum of Association of the Company </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">and accordingly, any change in the State in which registered office will be </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">situated calls for an alteration of the Memorandum of Association of the </i><i style="font-family: Times, 'Times New Roman', serif; font-size: 12pt;">Company.</i></div>
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<b><span style="color: #994806; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>PROVISIONS AND PROCEDURES RELATING TO SHIFTING OF<o:p></o:p></i></span></b></div>
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<b><span style="color: #994806; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>REGISTERED OFFICE<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>For the purpose of understanding the provisions relating to shifting of Registered<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Office, the types of shifting can be bifurcated as<o:p></o:p></i></span></div>
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<b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>A.<o:p></o:p></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><b><span style="color: #c10000;">SHIFTING OF REGISTERED OFFICE </span></b><b><span style="color: #600000;">WITHIN THE LOCAL LIMITS </span></b><b><span style="color: #c10000;">OF THE </span></b></i></span><b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>CITY, TOWN OR VILLAGE WHERE THE REGISTERED OFFICE IS ORIGINALLY </i></span></b><b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>SITUATED</i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Whenever there is a change in the registered office of </i></span><i style="font-family: Times, 'Times New Roman', serif;">the company then, a notice of the change of the</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>registered office along with a verification of the </i></span><i style="font-family: Times, 'Times New Roman', serif;">registered office needs to be filed with the ROC</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>within 15 days of each change.<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section and Rule Applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section 12 read with Rule 27 of Companies (Incorporation) Rules, 2014<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nature of Approval Required:<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Board of Directors<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>Shifting of Registered </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 12.0pt;"><i>Office</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>Within the local </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>limits of the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>city, Town or </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>Village </i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>Outside the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>local limits of </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>the City ,Town </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>or Village</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>(within the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>same State) and </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>within the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>jurisdiction of </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>the same ROC</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>Outside the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>local limits of </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>the City, Town </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>or Village</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>(within the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>same State) but </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>from the </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>jurisdiction of </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>one ROC to </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>another</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>From one State </i></span></b><b><span style="color: black; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>to Another</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i><br /></i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>For Example<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Shifting of Registered </i></span><i style="font-family: Times, 'Times New Roman', serif;">office from </i><i style="font-family: Times, 'Times New Roman', serif;">Nungambakkam in </i><i style="font-family: Times, 'Times New Roman', serif;">Chennai to Anna Nagar </i><i style="font-family: Times, 'Times New Roman', serif;">in Chennai</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>E-form to be filed<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>INC 22<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Supporting Documents Required<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>There shall be attached to e-Form, any of the following documents, namely:-<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the registered document of the title of the premises of the registered office in the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">name of the company; or</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the notarized copy of lease or rent agreement in the name of the company along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with a copy of rent paid receipt not older than one month;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the authorization from the owner or authorized occupant of the premises along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with proof of ownership or occupancy authorization, to use the premises by the </i><i style="font-family: Times, 'Times New Roman', serif;">company as its registered office; and</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the proof of evidence of any utility service like telephone, gas, electricity, etc. </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">depicting the address of the premises in the name of the owner or document, as </i><i style="font-family: Times, 'Times New Roman', serif;">the case may be, which is not older than two months.</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Time limit within which the form has to be filed<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Within 15 days of the change<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Mode of Filing and payment<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Form has to be filed electronically on the MCA website under the digital signature of </i></span><i style="font-family: Times, 'Times New Roman', serif;">any one Director of Company Secretary of the Company and the filing fees also needs </i><i style="font-family: Times, 'Times New Roman', serif;">to be paid electronically at the time of filing itself.</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>As per The Companies (Registration offices and fees) Rules, 2014, the normal filing </i></span><i style="font-family: Times, 'Times New Roman', serif;">fees, in case of company have share capital</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nominal Share Capital Fee applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Less than 1,00,000 Rupees 200<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,000 to 4,99,999 Rupees 300<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>5,00,000 to 24,99,999 Rupees 400<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>25,00,000 to 99,99,999 Rupees 500<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,00,000 or more Rupees 600<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>In case of company not having share capital – Rs. 200/-<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Additional fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Period of delay Rate of Additional Fees<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Up to 30 days 2 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 30 days and up to 60 days 4 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 60 days and up to 90 days 6 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 90 days and up to 180 days 10 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 180 days 12 times of normal fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Certification requirements<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Form has to be certified by a Practising Chartered Accountant, Company Secretary or </i></span><i style="font-family: Times, 'Times New Roman', serif;">Cost Accountant.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><b><span style="color: #c10000;">SHIFTING OF REGISTERED OFFICE </span></b><b><span style="color: #600000;">OUTSIDE THE LOCAL LIMITS </span></b><b><span style="color: #c10000;">OF THE </span></b></i></span><b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>CITY, TOWN OR VILLAGE WHERE THE REGISTERED OFFICE IS ORIGINALLY </i></span></b><b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>SITUATED AND WITHIN THE JURISDICTION OF SAME ROC</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section and Rule Applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section 12 read with Rule 27 of Companies (Incorporation) Rules, 2014<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nature of Approval Required:<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Member’s approval by means of special resolution<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>E-forms to be filed<o:p></o:p></i></span></b></div>
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<b><span style="color: #7030a1; font-family: Times, Times New Roman, serif;"><i>INC 22 For shifting of Registered Office<o:p></o:p></i></span></b></div>
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<b><span style="color: #7030a1; font-family: Times, Times New Roman, serif;"><i>MGT 14 For special resolution<o:p></o:p></i></span></b></div>
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<b><span style="color: #7030a1; font-family: Times, Times New Roman, serif;"><i><br /></i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Supporting Documents Required<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>There shall be attached to e-Form, any of the following documents, namely:-<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the registered document of the title of the premises of the registered office in the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">name of the company; or</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the notarized copy of lease or rent agreement in the name of the company along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with a copy of rent paid receipt not older than one month;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the authorization from the owner or authorized occupant of the premises along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with proof of ownership or occupancy authorization, to use the premises by the </i><i style="font-family: Times, 'Times New Roman', serif;">company as its registered office; and</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the proof of evidence of any utility service like telephone, gas, electricity, etc. </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">depicting the address of the premises in the name of the owner or document, as </i><i style="font-family: Times, 'Times New Roman', serif;">the case may be, which is not older than two months.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Time limit within which the form has to be filed<o:p></o:p></i></span></b></div>
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<b><span style="color: #00b150; font-family: Times, Times New Roman, serif;"><i>INC 22 Within 15 days of the change<o:p></o:p></i></span></b></div>
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<b><span style="color: #00b150; font-family: Times, Times New Roman, serif;"><i>MGT 14 Within 30 days of passing of special </i></span></b><b><span style="color: #00b150; font-family: Times, Times New Roman, serif;"><i>resolution</i></span></b></div>
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<b><span style="color: #00b150; font-family: Times, Times New Roman, serif;"><i><br /></i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Mode of Filing and payment<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Forms have to be filed electronically on the MCA website under the digital signature of </i></span><i style="font-family: Times, 'Times New Roman', serif;">any one Director of Company Secretary of the Company and the filing fees also needs </i><i style="font-family: Times, 'Times New Roman', serif;">to be paid electronically at the time of filing itself.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees (for both the forms)<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>As per The Companies (Registration offices and fees) Rules, 2014, the normal filing </i></span><i style="font-family: Times, 'Times New Roman', serif;">fees, in case of company have share capital</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nominal Share Capital Fee applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Less than 1,00,000 Rupees 200<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,000 to 4,99,999 Rupees 300<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>5,00,000 to 24,99,999 Rupees 400<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>25,00,000 to 99,99,999 Rupees 500<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,00,000 or more Rupees 600<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>For Example<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Shifting of </i></span><i style="font-family: Times, 'Times New Roman', serif;">Registered Office </i><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">from </span><span style="color: red;">Chennai, </span></i><i style="font-family: Times, 'Times New Roman', serif;">Tamilnadu </i><i style="font-family: Times, 'Times New Roman', serif;">(ROC, Chennai) </i><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">to </span><span style="color: red;">Madurai, </span></i><i style="font-family: Times, 'Times New Roman', serif;">Tamilnadu </i><i style="font-family: Times, 'Times New Roman', serif;">(ROC, Chennai)</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<i style="font-family: Times, 'Times New Roman', serif;">In case of company not having share capital – Rs. 200/-</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Additional fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Period of delay Rate of Additional Fees<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Up to 30 days 2 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 30 days and up to 60 days 4 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 60 days and up to 90 days 6 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 90 days and up to 180 days 10 times of normal fees<o:p></o:p></i></span></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 180 days 12 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i><br /></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Certification requirements<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Forms have to be certified by a Practising Chartered Accountant, Company Secretary </i></span><i style="font-family: Times, 'Times New Roman', serif;">or Cost Accountant.</i></div>
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<br /></div>
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<b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>SHIFTING OF REGISTERED OFFICE OUTSIDE THE LOCAL LIMITS OF THE </i></span></b><b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>CITY, TOWN OR VILLAGE WHERE THE REGISTERED OFFICE IS ORIGINALLY </i></span></b><i style="font-family: Times, 'Times New Roman', serif;"><b><span style="color: #c10000;">SITUATED AND </span></b><b><span style="color: #600000;">FROM THE JURISDICTION OF ONE ROC TO ANOTHER</span></b></i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><b><span style="color: #600000;"><br /></span></b></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section and Rule Applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section 12 read with Rule 28 of Companies (Incorporation) </i></span><i style="font-family: Times, 'Times New Roman', serif;">Rules, 2014.</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nature of Approval Required:<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Member’s approval by means of special resolution and Regional </i></span><i style="font-family: Times, 'Times New Roman', serif;">Director’s approval.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>E-form to be filed<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i>MGT 14 For special resolution<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i>GNL 1 For filing copy of application to ROC<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i>INC 23 For seeking approval of Regional Director<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i>INC 28 For filing copy of RD order with ROC<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i>INC 22 For shifting of Registered Office<o:p></o:p></i></span></b></div>
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<b><span style="color: #e46d0a; font-family: Times, Times New Roman, serif;"><i><br /></i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Procedure to be followed<o:p></o:p></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Pass Special Resolution seeking members’ approval for shifting of registered </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">office. Form MGT-14 to be filed within 30 days.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">At least one month before filing application with Regional Director - t</span></i></span><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">o </span><span style="color: black;">publish a notice, at least once in a daily newspaper published in English </span></i><i style="font-family: Times, 'Times New Roman', serif;">and in the principal language of that district in which the registered </i><i style="font-family: Times, 'Times New Roman', serif;">office of the company is situated and t</i><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">o </span><span style="color: black;">serve individual notice on each debenture holder, depositor and creditor </span></i><i style="font-family: Times, 'Times New Roman', serif;">of the company.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>For Example<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Shifting of </i></span><i style="font-family: Times, 'Times New Roman', serif;">Registered Office </i><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">from </span><span style="color: red;">Chennai, </span></i><i style="font-family: Times, 'Times New Roman', serif;">Tamilnadu </i><i style="font-family: Times, 'Times New Roman', serif;">(ROC, Chennai) to </i><i><span style="color: red; font-family: Times, Times New Roman, serif;">Coimbatore, </span></i><i style="font-family: Times, 'Times New Roman', serif;">Tamilnadu (ROC, </i><i style="font-family: Times, 'Times New Roman', serif;">Coimbatore)</i></div>
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<br /></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>The newspaper advertisement/notice to creditors should state that any person </i></span><i style="font-family: Times, 'Times New Roman', serif;">whose interest is likely to be affected by the proposed alteration of the </i><i style="font-family: Times, 'Times New Roman', serif;">memorandum may intimate his nature of interest and grounds of opposition to </i><i style="font-family: Times, 'Times New Roman', serif;">the Regional Director with a copy to the company within 21 days of the date of </i><i style="font-family: Times, 'Times New Roman', serif;">publication of that notice.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Draw up the application and file form INC 23, supported by following </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">documents</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copy of minutes of meeting in which special resolution has been passed<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copy of Memorandum of Association<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Notice convening the general meeting along with explanatory statement<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Extract of special resolution passed by members approving the change of </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">registered office</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copies of advertisement published<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copies of notice sent to creditors, debenture holder, depositor along with </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">dispatch proof</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Particulars of objections received;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Any attachment to support the details of prosecution filed against the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">company and its officers in default, if any</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File a copy of the application to ROC in form GNL 1<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File copy of RD order with ROC in form INC 28.<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Once the order is passed by the RD, approving shifting of the registered office, </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">file form INC 22 with both the ROCs, supported by the following documents:</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the registered document of the title of the premises of the registered office </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">in the name of the company; or</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the notarized copy of lease or rent agreement in the name of the company </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">along with a copy of rent paid receipt not older than one month;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the authorization from the owner or authorized occupant of the premises </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">along with proof of ownership or occupancy authorization, to use the </i><i style="font-family: Times, 'Times New Roman', serif;">premises by the company as its registered office; and</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the proof of evidence of any utility service like telephone, gas, electricity, </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">etc. depicting the address of the premises in the name of the owner or </i><i style="font-family: Times, 'Times New Roman', serif;">document, as the case may be, which is not older than two months.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copy of order passed by RD.<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;"><br /></span></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Time limit within which the form has to be filed<o:p></o:p></i></span></b></div>
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<b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>MGT 14 Within 30 days of passing special resolution<o:p></o:p></i></span></b></div>
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<b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>GNL 1 Simultaneously with filing of form INC 23<o:p></o:p></i></span></b></div>
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<b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>INC 23 At least 1 month after serving notice to creditors and </i></span></b><b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>publication of newspaper advertisement</i></span></b></div>
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<b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>INC 28 Within 30 days of order passed by RD<o:p></o:p></i></span></b></div>
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<b><span style="color: #5f497a; font-family: Times, Times New Roman, serif;"><i>INC 22 Within 60 days of order passed by RD<o:p></o:p></i></span></b></div>
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<br /></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Mode of Filing and payment<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Forms have to be filed electronically on the MCA website under the digital signature of </i></span><i style="font-family: Times, 'Times New Roman', serif;">any one Director of Company Secretary of the Company and the filing fees also needs </i><i style="font-family: Times, 'Times New Roman', serif;">to be paid electronically at the time of filing itself.</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees (For forms INC 22, INC 28 and MGT 14)<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>As per The Companies (Registration offices and fees) Rules, 2014 </i></span><i style="font-family: Times, 'Times New Roman', serif;">In case of company have share capital</i></div>
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<i style="font-family: Times, 'Times New Roman', serif;"><br /></i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nominal Share Capital Fee applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Less than 1,00,000 Rupees 200<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,000 to 4,99,999 Rupees 300<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>5,00,000 to 24,99,999 Rupees 400<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>25,00,000 to 99,99,999 Rupees 500<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,00,000 or more Rupees 600<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>In case of company not having share capital – Rs. 200/-<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Additional fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Period of delay Rate of Additional Fees<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Up to 30 days 2 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 30 days and up to 60 days 4 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 60 days and up to 90 days 6 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 90 days and up to 180 days 10 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 180 days 12 times of normal fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees (For form GNL 1 and INC 23)<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Application made </i></span><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Other than OPC & </i></span><i style="font-family: Times, 'Times New Roman', serif;">Small company | </i><span style="color: black; font-family: Times, Times New Roman, serif;"><i>OPC & Small </i></span><i style="font-family: Times, 'Times New Roman', serif;">company</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(i) By a company having an </i></span><i style="font-family: Times, 'Times New Roman', serif;">authorized share capital of:</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>a) Up to Rupees 25,00,000 2000 1000<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>b) Above Rupees 25,00,000 but up </i></span><i style="font-family: Times, 'Times New Roman', serif;">to Rupees 50,00,000 5000 1500</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>c) Above Rupees 50,00,000 but up </i></span><i style="font-family: Times, 'Times New Roman', serif;">to Rupees 5,00,00,000 10000 NA</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>d) Above Rupees 5,00,00,000 but </i></span><i style="font-family: Times, 'Times New Roman', serif;">up to Rupees 10 crore or more 15000 NA</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>e) Above Rupees 10 crore 20000 NA<o:p></o:p></i></span></div>
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<br /></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(ii) By a company limited by guarantee </i></span><i style="font-family: Times, 'Times New Roman', serif;">but not having a share capital</i></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>2000 N/A<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(iii) By a company having a valid </i></span><i style="font-family: Times, 'Times New Roman', serif;">license issued under section 8 of </i><i style="font-family: Times, 'Times New Roman', serif;">the Act (Section 8 Company)</i></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>2000 N/A<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Certification requirements<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Forms have to be certified by a Practising Chartered Accountant, Company Secretary </i></span><i style="font-family: Times, 'Times New Roman', serif;">or Cost Accountant.</i></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #c10000; font-family: Times, Times New Roman, serif;"><i>.<o:p></o:p></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><b><span style="color: #c10000;">SHIFTING OF REGISTERED OFFICE </span></b><b><span style="color: #600000;">FROM ONE STATE OR UNION </span></b></i></span><b><span style="color: #600000; font-family: Times, Times New Roman, serif;"><i>TERRITORY TO ANOTHER</i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section and Rule Applicable<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Section 13 read with Rule 30 of Companies (Incorporation) Rules, </i></span><i style="font-family: Times, 'Times New Roman', serif;">2014</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nature of Approval Required:<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Member’s approval by means of special resolution and Regional </i></span><i style="font-family: Times, 'Times New Roman', serif;">Director’s approval</i></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>E-form to be filed<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif;"><i>MGT 14 For special resolution<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif;"><i>GNL 1 For filing copy of application to ROC<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif;"><i>INC 23 For seeking approval of Regional Director<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif;"><i>INC 28 For filing copy of RD order with ROC<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: #0070c1; font-family: Times, Times New Roman, serif;"><i>INC 22 For shifting of Registered Office<o:p></o:p></i></span></b></div>
<div class="MsoNormal" style="text-autospace: none;">
<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Procedure to be followed<o:p></o:p></i></span></b></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Pass Special Resolution seeking members’ approval for shifting of registered office.<o:p></o:p></span></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Form MGT-14 to be filed within 30 days.<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Draw up the application supported by following annexures:<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a copy of the memorandum and articles of association;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a copy of the notice convening the general meeting along with relevant<o:p></o:p></span></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Explanatory Statement;<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a copy of the special resolution sanctioning the alteration by the members of </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">the company;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a copy of the minutes of the general meeting at which the resolution authorizing </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">such alteration was passed, giving details of the number of votes cast in favor</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>or against the resolution;<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">an affidavit verifying the application;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the list of creditors and debenture holders entitled to object to the application;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">an affidavit verifying the list of creditors;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the document relating to payment of application fee;<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a copy of board resolution or Power of Attorney or the executed Vakalatnama, </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">as the case may be.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">a list of creditors and debenture holders, drawn up to the latest practicable date </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">preceding the date of filing of application by not more than one month, setting </i><i style="font-family: Times, 'Times New Roman', serif;">forth the following details, namely:-</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the names and address of every creditor and debenture holder of the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">company;</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>For Example<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Shifting of Registered </i></span><i style="font-family: Times, 'Times New Roman', serif;">Office from Chennai, </i><i style="font-family: Times, 'Times New Roman', serif;">Tamilnadu </i><i style="font-family: Times, 'Times New Roman', serif;">(ROC, Chennai) to </i><i style="font-family: Times, 'Times New Roman', serif;">Bangalore, </i><i style="font-family: Times, 'Times New Roman', serif;">Karnataka</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(ROC, Bangalore)<o:p></o:p></i></span></div>
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<br /></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">the nature and respective amounts due to them in respect of debts, claims </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">or liabilities</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">an affidavit, signed by the Company Secretary of the company, if any and not </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">less than two directors of the company, one of whom shall be a managing </i><i style="font-family: Times, 'Times New Roman', serif;">director, where there is one, to the effect that they have made a full enquiry into </i><i style="font-family: Times, 'Times New Roman', serif;">the affairs of the company and, having done so, have formed an opinion that </i><i style="font-family: Times, 'Times New Roman', serif;">the list of creditors is correct, and that the estimated value as given in the list of </i><i style="font-family: Times, 'Times New Roman', serif;">the debts or claims payable on a contingency or not ascertained are proper </i><i style="font-family: Times, 'Times New Roman', serif;">estimates of the values of such debts and claims and that there are no other </i><i style="font-family: Times, 'Times New Roman', serif;">debts of or claims against the company to their knowledge.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">an affidavit from the directors of the company that no employee shall be </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">retrenched as a consequence of shifting of the registered office from one state to </i><i style="font-family: Times, 'Times New Roman', serif;">another state</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File an application to the Chief Secretary of the concerned State Government or the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">Union territory for giving notice of the proposed shifting of registered office.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Keep a duly authenticated copy of the list of creditors at the registered office of the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">company so that any person desirous of inspecting the same may, at any time </i><i style="font-family: Times, 'Times New Roman', serif;">during the ordinary hours of business, inspect and take extracts from the same on </i><i style="font-family: Times, 'Times New Roman', serif;">payment of a sum not exceeding ten rupees per page to the company.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File a copy of the application along with all annexures to ROC in form GNL 1.<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File form INC 23 to Regional Director supported by the application and all </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">annexure as stated above and a copy of the acknowledgment of service of a copy of </i><i style="font-family: Times, 'Times New Roman', serif;">the application with complete annexures to the Registrar (challan of form GNL 1) </i><i style="font-family: Times, 'Times New Roman', serif;">and Chief Secretary of the State Government or Union territory where the </i><i style="font-family: Times, 'Times New Roman', serif;">registered office is situated at the time of filing the application.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">At least 14 days before the date of hearing given by Regional Director - t</span></i></span><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;">o </span><span style="color: black;">advertise the application in the Form No.INC.26 in a vernacular newspaper in </span></i><i style="font-family: Times, 'Times New Roman', serif;">the principal vernacular language in the district in which the registered office of </i><i style="font-family: Times, 'Times New Roman', serif;">the company is situated, and at least once in English language in an English </i><i style="font-family: Times, 'Times New Roman', serif;">newspaper circulating in that district;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">to </span><span style="color: black;">serve, by registered post with acknowledgement due, individual notice(s), on </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">each debenture-holder and creditor of the company; and to</i><i style="font-family: Times, 'Times New Roman', serif;"><span style="color: black;"> </span><span style="color: black;">serve, by registered post with acknowledgement due, a notice together with the </span></i><i style="font-family: Times, 'Times New Roman', serif;">copy of the application to the Registrar and to the Securities and Exchange</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Board of India, in the case of listed companies and to the regulatory body, if the </i></span><i style="font-family: Times, 'Times New Roman', serif;">company is regulated under any special Act or law for the time being in force.</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>The newspaper advertisement/notice to creditors should state that any person </i></span><i style="font-family: Times, 'Times New Roman', serif;">whose interest is likely to be affected by the proposed alteration of the </i><i style="font-family: Times, 'Times New Roman', serif;">memorandum may intimate his nature of interest and grounds of opposition to </i><i style="font-family: Times, 'Times New Roman', serif;">the Regional Director with a copy to the company within 21 days of the date of </i><i style="font-family: Times, 'Times New Roman', serif;">publication of that notice.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">File copy of RD order with ROC in form INC 28.<o:p></o:p></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">• </span><span style="color: black;">Once the order is passed by the RD, approving shifting of the registered office, file </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">form INC 22 with both the ROCs, supported by the following documents:</i></div>
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<br /></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the registered document of the title of the premises of the registered office in the </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">name of the company; or</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the notarized copy of lease or rent agreement in the name of the company along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with a copy of rent paid receipt not older than one month;</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the authorization from the owner or authorized occupant of the premises along </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">with proof of ownership or occupancy authorization, to use the premises by the </i><i style="font-family: Times, 'Times New Roman', serif;">company as its registered office; and</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">the proof of evidence of any utility service like telephone, gas, electricity, etc. </span></i></span><i style="font-family: Times, 'Times New Roman', serif;">depicting the address of the premises in the name of the owner or document, as </i><i style="font-family: Times, 'Times New Roman', serif;">the case may be, which is not older than two months.</i></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">o </span><span style="color: black;">Copy of order passed by RD.<o:p></o:p></span></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Time limit within which the form has to be filed<o:p></o:p></i></span></b></div>
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<b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>MGT 14 Within 30 days of passing special resolution<o:p></o:p></i></span></b></div>
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<b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>GNL 1 Simultaneously with filing of form INC 23<o:p></o:p></i></span></b></div>
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<b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>INC 23 At least 1 month after serving notice to creditors and </i></span></b><b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>publication of newspaper advertisement</i></span></b></div>
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<b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>INC 28 Within 30 days of order passed by RD<o:p></o:p></i></span></b></div>
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<b><span style="color: #ff7c81; font-family: Times, Times New Roman, serif;"><i>INC 22 Within 60 days of order passed by RD<o:p></o:p></i></span></b></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Mode of Filing and payment<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Forms have to be filed electronically on the MCA website under the digital signature of </i></span><i style="font-family: Times, 'Times New Roman', serif;">any one Director of Company Secretary of the Company and the filing fees also needs </i><i style="font-family: Times, 'Times New Roman', serif;">to be paid electronically at the time of filing itself.</i></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees (For forms INC 22, INC 28 and MGT 14)<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>As per The Companies (Registration offices and fees) Rules, 2014<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>In case of company have share capital<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Nominal Share Capital Fee applicable<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Less than 1,00,000 Rupees 200<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,000 to 4,99,999 Rupees 300<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>5,00,000 to 24,99,999 Rupees 400<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>25,00,000 to 99,99,999 Rupees 500<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>1,00,00,000 or more Rupees 600<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>In case of company not having share capital – Rs. 200/-<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Additional fees<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Period of delay Rate of Additional Fees<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Up to 30 days 2 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 30 days and up to 60 days 4 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 60 days and up to 90 days 6 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 90 days and up to 180 days 10 times of normal fees<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>More than 180 days 12 times of normal fees<o:p></o:p></i></span></div>
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<br /></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Filing fees (For form GNL 1 and INC 23)<o:p></o:p></i></span></b></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>Application made </i></span><i style="font-family: Times, 'Times New Roman', serif;">Other than OPC & </i><i style="font-family: Times, 'Times New Roman', serif;">Small company </i><i style="font-family: Times, 'Times New Roman', serif;">OPC & Small </i><i style="font-family: Times, 'Times New Roman', serif;">company</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(i) By a company having an </i></span><i style="font-family: Times, 'Times New Roman', serif;">authorized share capital of:</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>a) Up to Rupees 25,00,000 2000 1000<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>b) Above Rupees 25,00,000 but up </i></span><i style="font-family: Times, 'Times New Roman', serif;">to Rupees 50,00,000 5000 1500</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>c) Above Rupees 50,00,000 but up </i></span><i style="font-family: Times, 'Times New Roman', serif;">to Rupees 5,00,00,000 10000 NA</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>d) Above Rupees 5,00,00,000 but</i></span><i style="font-family: Times, 'Times New Roman', serif;">up to Rupees 10 crore or more 15000 NA</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>e) Above Rupees 10 crore 20000 NA<o:p></o:p></i></span></div>
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<br /></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(ii) By a company limited by guarantee </i></span><i style="font-family: Times, 'Times New Roman', serif;">but not having a share capital</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>2000 N/A<o:p></o:p></i></span></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>(iii) By a company having a valid </i></span><i style="font-family: Times, 'Times New Roman', serif;">license issued under section 8 of </i><i style="font-family: Times, 'Times New Roman', serif;">the Act (Section 8 Company)</i></div>
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<span style="color: black; font-family: Times, Times New Roman, serif;"><i>2000 N/A<o:p></o:p></i></span></div>
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<b><span style="color: black; font-family: Times, Times New Roman, serif;"><i>Certification requirements<o:p></o:p></i></span></b></div>
<div class="MsoNormal">
<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: black;">Forms have to be certified by a Practising Chartered Accountant/Cost Accountant/Company Secretary</span><o:p></o:p></i></span></div>
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<br /></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>CA.THOMAS K.GEORGE<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>MANAGING PARTNER<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>THOMAS AND ASSOCIATES<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>CHARTERED ACCOUNTANTS<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>MOOLAIPARAMBIL ATM CHAMBERS<o:p></o:p></i></span></div>
<div class="MsoNormal">
<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>OPP.RMS,RAILWAY STATION ROAD<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>KOTTAYAM-686001<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>KERALA-INDIA.<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>MOB.919447773937<o:p></o:p></i></span></div>
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<span style="color: #002060; font-family: Times, Times New Roman, serif; font-size: 10.0pt;"><i>LAND.04812300496/2303766<o:p></o:p></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i><span style="color: #002060; font-size: 10.0pt;">www.thomasandassociatesindia.com</span><span style="color: #002060; font-size: 14.0pt;"><o:p></o:p></span></i></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-4645099237771263422015-04-17T00:38:00.001-07:002015-04-17T00:41:48.178-07:00e-filing of ITR Mandatory for individuals & HUFs claiming Income tax refund<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">As per CBDT Notification No. 41/2015 Dated 15.04.2015 Individual or Hindu undivided family has to file Income Tax Return in the following Manner if any Income Tax refund is claimed in the return of income for A.Y. 2015-16 or subsequent Years :-</i></span></span><br />
<span style="background-color: #cfe2f3;"><span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span>
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>(A) Electronically under digital signature; or </i></span></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(B) Transmitting the data in the return electronically under electronic verification code; or </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V. </i></span></span><br />
<span style="background-color: #cfe2f3;"><span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span>
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>Exceptions to above provisions :- </i></span></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Individual of the age of 80 years or more at any time during the previous year and furnishing the return in Form ITR-1 or ITR-2. </i></span></span><br />
<span style="background-color: #cfe2f3;"><span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span>
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>Relevant Extract of Amendment in Income Tax Rule 12 of Income-tax Rules, 1962 :- </i></span></span></span><br />
<span style="background-color: #cfe2f3;"><span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span>
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>Individual or Hindu undivided family </i></span></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Condition- </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(V) total income assessable under the Act during the previous year of the person (other than the person, being an individual of the age of 80 years or more at any time during the previous year and furnishing the return in Form ITR-1 or ITR-2),- </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(i) exceeds five lakh rupees; or </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(ii) any refund is claimed in the return of income; </i></span></span><br />
<span style="background-color: #cfe2f3;"><span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></span>
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i>Manner of furnishing return of income </i></span></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(A) Electronically under digital signature; or </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(B) Transmitting the data in the return electronically under electronic verification code; or </i></span></span><br />
<span style="color: #5e5e5e; line-height: 19.5px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V. </i></span></span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-85118123333376921972015-04-17T00:34:00.001-07:002015-04-17T00:41:16.726-07:00CBDT mandates disclosure of all Bank Accounts in ITR<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><br /></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">CBDT has vide Notification No. 41/2015, Dated-15th day of April, 2015 Notified ITR-1 ITR-2 ITR-4S ITR-V for A.Y. 2015-16 with several Changes. In such ITRs CBDT has for the first time required an assessee to Compulsorily provide details of all Bank account held in India (including in joint names) at any time during financial year 2014-15 including details of those which were closed during the year.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Assessee has to provide<span class="text_exposed_show" style="display: inline;"> the following details :-</span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1. Number of bank accounts held by you at any time (including opened/closed) during the previous year- In case of Paper Returns if No. of accounts are more than two you attach a separate sheet providing details of all such accounts.<br />2. IFS Code of the Bank -<br />3. Name of the Bank -<br />4. Name of Joint holder(s), if any – In Our opinion you have to give details of all bank account jointly held in India by you even if you are not the first Joint Account older in the account.<br />5. Account Number<br />6. Account balance as on 31 st March of the previous year- In case the account is closed during the year, in the column for account balance as on 31st March mention “closed”.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><br /></i></span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px;">
<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Format of <strong style="margin: 0px; padding: 0px;"><span class="IL_AD" id="IL_AD11" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Schedule</span> BA of Newly prescribed ITRs which mandates disclosure <span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">of Bank Accounts</span> is </strong> as follows :-</i></span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Schedule BA</i></span></strong></div>
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<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Details of Bank Accounts held in India at any time during the previous year</i></span></strong></div>
<table style="color: #5e5e5e; font-size: 13px; height: 364px; line-height: 19.5px; margin: 0px; padding: 0px; width: 565px;"><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td colspan="5" style="border: 1px solid black; margin: 0px; padding: 0px;" width="82%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Number of bank accounts held by you at any time (including opened/closed) during the previous year</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="16%"></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="11%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Sl.</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">IFS Code of the Bank</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Name of the Bank</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Name of Joint holder(s), if any</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Account Number</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="16%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Account balance as on 31st March of the previous year</i></span></strong></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="11%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1.</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="16%"></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="11%"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">2.</i></span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="17%"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="16%"></td></tr>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-54328782739972490852015-04-16T04:14:00.001-07:002015-04-17T00:42:22.857-07:00TDS on payment to contractors Under Section 194C<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">As per Section 194C, deduction of TDS is required to be made from payments of any amount to resident contractors or sub-contractors.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">1. DEDUCTION OF TDS FROM PAYMENT TO RESIDENT CONTRACTORS</strong> :- Sec 194C(1) provides that any person responsible for paying any sum to resident contractor for carrying out any work (including supply of labor) in pursuance of a contract between the contractor and the following:<span id="more-66580" style="margin: 0px; padding: 0px;"></span></span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">a) The Central Government or any State Government;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">b) Any local authority;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">c) Any corporation established by or under a Central, State or Provisional Act;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">d) Any company;</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px 0px 0px 30px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">e) Any co-operative society;</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px 0px 0px 30px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">f) Any authority constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the needs for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for both;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">g) Any society registered under the Society Registration Act, 1980 or under any such corresponding law to the Act in any Part of India;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">h) Any trust;</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px 0px 0px 30px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">i) Any university or deemed university;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">j) Any firm;</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">NOTE :</span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1. The expression “work” in this section would include— (a) advertising; (b) broadcasting and telecasting including production of programs for such broadcasting or telecasting; (c) carriage of goods and passengers by any mode of transportation, other than railways; (d) catering; (e) Manufacturing or supplying of a product according to the requirement or specification of a customer by using the materials purchased from such customer,</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">But does not include manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from a person, other than such a customer.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2. A “Contractor” for the purpose of the provisions of this section would be any person who enters into a contract with the Central Government or any State Government, any local authority, any corporation established by or under a Central, State or Provincial Act, any company or any co-operative society for carrying out any work including the supply of labor for carrying out any work.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3. A “sub-contractor” would mean any person who enters into a contract with the contractor for carrying out, or for the supply of labor for carrying out the whole or part of the work undertaken by the contractor under a contract with any of the authorities or for supply of, whether wholly or partly, any labor which the contractor has undertaken to supply in terms of his contract with any of the authorities mentioned under this section.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">APPLICABILITY OF THIS SECTION:-</span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Provisions of Section 194C are applicable only in relation to “works contracts” and “labor contracts” but do not cover “contract for sale or mere supply of goods”.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Neither Income Tax Act nor Income Tax Rules specifies the difference between the contract for sale and works contract; so there is no standard criteria to determine whether a contract is of contract for sale or a contract for work and labor.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">One of the criteria to differentiate between “contract for sale” and “works contract” is to determine the ownership regarding goods in question. In case of works contract, even though a part or whole of the materials used belongs to the contractor, yet the property in the thing produced will be the performance whereas in the case of contract for sale the things produced generally are the sole property of the party who has performed the work before its delivery and such person and the property therein passes only under the contract relating thereto to other party for price. Mere transfer of property in goods used in the performance of a contract is not sufficient. To constitute a sale there must be an agreement expressed or implied relating to sale of goods and completion of the agreement by passing of title in the very goods constructed to be sold.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">The following conditions must be satisfied for applicability of this Section:</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1.) The payee, i.e., contractor must be resident in India within meaning of Sec. 6 of the Income Tax Act.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2.) Payment should be made by any person specified above.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3.) Payment should be made for carrying out any work including supply of labor for carrying out any work.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">4.) The payment should be made pursuant to a contract whether oral or written between payer and payee.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">5.) The consideration of a contract in respect of which payment is made should exceed Rs. 30,000 at a time.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">6.) If aggregate of the amount of such sums credited or paid or likely to be credited or paid in the financial year exceeds Rs.75,000/- TDS is required to be deducted.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">7.) Where advance payments are made, tax will have to be deducted if the total payment is likely to exceed Rs. 30,000.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">8.) Where it was expected that the total consideration would not exceed Rs. 30,000 but later on, it was found that consideration would exceed Rs. 30,000, tax will have to be deducted in respect of earlier payments also.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<strong style="margin: 0px; padding: 0px;"><span style="color: maroon; margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;"><span style="color: maroon; margin: 0px; padding: 0px;">2. DEDUCTION OF TAX AT SOURCE FROM PAYMENT TO SUB-CONTRACTORS</span> :</strong> Any person (being a contractor and not being an individual or a Hindu Undivided Family) responsible for paying any sum to any resident in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labor for carrying out, the whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labor which the contractor has undertaken to supply shall, at the time of credit of such sum to the account of the sub-contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct amount equal to 1 % of sum as income-tax on income comprised therein.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Where the payment is made to sub-contractors, the following conditions must be satisfied :-</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1.) Payment is made to a sub-contractor who is resident within the meaning of Section 6 of the Income Tax Act, 1961.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2.) Payment is made by a resident contractor, not being an individual or an HUF.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3.) Payment is made to carry out any work, including supply of labor.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">4.) The amount of consideration of the contract in respect to which payment is made should not be less than Rs. 30,000.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">5.) The amount is paid or credited after 31-5-1972.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">6.) The sum should be credited or paid by the contractor in respect of a contract undertaken by him with the specified bodies.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">NOTE: </strong>A contractor who is an individual or HUF is exempt from the obligation of TDS while making payment to subcontractors.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">EXEMPTION FROM DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES:</strong> No tax is required to be deducted in the following cases:</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1.) Where the sum is credited or paid in pursuance of any contract, the consideration for which does not exceed Rs. 30,000, or where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year does not exceeds Rs. 75,000, the person responsible for paying such sums will not deduct TDS under this section.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2.) Where the sum is credited or paid before the 1st June 1972;</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3.) Where the sum is credited or paid before 1st June 1973 in pursuance of a contract between the contractor and the co-operative society or in pursuance of a contract between such contractor and the sub-contractor in relation to any work (including supply of labor) undertaken by the contractor for the co-operative society.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">4.) Individual or HUF not to deduct tax if the payment or amount credited to contractor is for personal use. No individual or HUF shall be liable to deduct income-tax on the sum credited or paid to the account of the contractor where such sum is credited or paid exclusively for personal purpose of such individual or any member of HUF.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">PROVISIONS FOR PAYMENTS AND TDS TO TRANSPORTERS :-</strong>No deduction shall be made from any sum credited or paid or likely to be credited or paid during previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN, to the person paying or crediting such amount.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">PERSON RESPONSIBLE FOR DEDUCTION OF TDS:-</strong> The payer is the person responsible for TDS.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">WHEN TAX TO BE DEDUCTED:-</strong> The person responsible for making payment to resident contractor/sub-contractor should deduct TDS either at the time of crediting such sum to the account to the payee or at the time of payment thereof in cash or by issue of a cheque or by any other mode, whichever is earlier.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">AMOUNT CREDITED TO SUSPENSE ACCOUNT</strong> :- Where any sum is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such amount, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. Thus, tax has to be deducted even if amount payable to resident contractor/subcontractor is transferred to suspense account by the payer in his books.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">NO DEDUCTION OF TAX OR DEDUCTION AT LOWER RATE :-</strong> According to Section 194C where the AO is satisfied that the total income of contractor or sub-contractor justifies the deduction of income-tax at any lower rate or non deduction of income-tax, as the case may be, the AO shall, on application made by the contractor or sub-contractor in this behalf give to him such certificate as may be appropriate.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">RATES OF TAX DEDUCTION:</strong> Rates of TDS from payment to contractors and sub-contractors are as under:</span></div>
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<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="72"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">S. No.</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Nature of Payment</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="114"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">TDS Rate if PAN available</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="126"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">TDS Rate if PAN not available</span></strong></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="72"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1.</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Payment / Credit to resident individual or HUF</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="114"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1 %</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="126"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">20 %</span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="72"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2.</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Payment/Credit to any resident person other than individual / HUF</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="114"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2 %</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="126"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">20 %</span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="72"><strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3.</span></strong></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Payment/ credit to Transporters</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="114"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">NIL</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="126"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">20 %</span></td></tr>
</tbody></table>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">Note:- </strong>No Surcharge, Education Cess and SHEC shall be added. Hence, TDS shall be deductible at basic rates.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">DEDUCTION OF TAX AT SOURCE IN CASE OF COMPOSITE CONTRACT</span></strong></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">1. WHERE MATERIALS ARE SUPPLIED BY THE GOVERNMENT</strong>: The question is whether deduction will be made with reference to gross payment to the contractor or the net payment, i.e., gross payment minus deductions, if any, on account of materials supplied by the government, will have to be decided in the light of the terms of the particular contract and the conduct of parties thereto. Where the contractor has undertaken to construct a building or a dam, and the government or other specified person has undertaken to supply all or any of the materials necessary for the work at the stipulated prices, the deduction will be related to the gross payment without excluding any adjustments on account of cost of materials. Where, however, the contractor has undertaken only to provide the labor for the work, the ownership of the materials supplied remaining at all times with the government or other specified person, the sum payable to the contractor in respect of the contract will only be the amount paid for such labor or services and will, thus, not include the price of the materials supplied by the government or other specified persons.</span></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px; text-align: justify;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Thus, the rate of TDS from payments made by the government or other specified persons to any contractor will be 2% or 1% of the gross payment or, as the case may be, the net payment, depending on the terms of the contract.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px;">
<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">2. DEDUCTION WHEN PARTY SUPPLIES MATERIALS TO THE CONTRACTOR:-</strong> When materials are supplied no deduction is possible. Consequently, no TDS is required to be made. However, when payment is made either in cash or in kind to contractor/sub-contractor tax is required to be deducted.</span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><strong style="margin: 0px; padding: 0px;">DEPOSIT OF TAX TO CREDIT OF CENTRAL GOVERNMENT:-</strong> The tax deducted is required to be deposited with the Central Government through a challan within the prescribed time by the person making the deduction.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">TDS is to be deposited by remitting the same to any of the following banks:</span></div>
<ul style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; list-style: none; margin: 0px; padding: 0px; text-align: justify;">
<li style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Any branch of the RBI;</span></li>
<li style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Any branch of the SBI;</span></li>
<li style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Any branch of selected PSBs where Income-Tax Offices are situated.</span></li>
</ul>
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;"><br /></span></strong></div>
<div style="color: #5e5e5e; font-size: 13px; line-height: 19.5px; padding: 0px;">
<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">TIME LIMIT WITHIN WHICH TAX IS TO BE DEPOSITED :-</span></strong></div>
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<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="37"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">S. No.</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Particulars</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="297"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Due date for payment</span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="37"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1.)</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Where the payment is made by or on behalf of the Government</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="297"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">On the same day (Without using any Challan form)</span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="37"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2.)</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Where the payment is made in any other case than the government</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="297"></td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="37"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">a) If the amount is credited in the month of March</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="297"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">On or before April 30th.</span><br />
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<tr style="margin: 0px; padding: 0px;"><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="37"></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="312"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">b) In Other months.</span></td><td style="border: 1px solid black; margin: 0px; padding: 0px;" width="297"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Within 7 days from the end of the month in which the deduction is made.</span></td></tr>
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<span style="color: #5e5e5e; font-size: 13px; line-height: 19.5px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">- See more at: http://taxguru.in</span></span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-82851557704647137532015-04-16T04:11:00.002-07:002015-04-17T00:42:36.443-07:0015 Important things to know while filing Income tax returns this year for individuals<div dir="ltr" style="text-align: left;" trbidi="on">
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">The financial year is over and time for filing the <span class="IL_AD" id="IL_AD7" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">income tax return for</span> FY 2014-15/AY15-16 is around the corner. In this situation, following are some important points that every individual must know for <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">filing income tax return</span> this year.</span></strong><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">1. Basic exemption limit increased by INR 50,000 to INR.2,50,000 for Individuals taxpayers.- Income Tax Rate Chart / Slabs for AY 2015-16 / FY 2014-15<strong style="margin: 0px; padding: 0px;"><br style="margin: 0px; padding: 0px;" /></strong><span id="more-66583" style="margin: 0px; padding: 0px;"></span></span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">2. Section 80C deduction limit raised to INR 150,000.</span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">3. Deduction limit for interest expense in respect of self-occupied property raised from INR150,000 to INR 200,000. Read- Home Loan Interest Exemption Limit increased to Rs. 2 Lakh</span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">4. <span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Long term capital Gain</span> on sale of units of Mutual Fund (other than equity oriented) @20%.<strong style="margin: 0px; padding: 0px;"><br style="margin: 0px; padding: 0px;" /></strong></span><br />
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<strong style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">5. Amendment in the criteria of holding period for treating an asset as Short Term Capital Asset, as under:</span></strong></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For share in Company (listed) – 12 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For share in Company (unlisted) – 36 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For other unlisted <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">securities</span> – 36 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For other listed securities (including units of Business Trust) – 12 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For unit of Mutual Fund (equity oriented) – 12 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For unit of Mutual Fund (other than equity oriented) – 36 months;</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">For <span class="IL_AD" id="IL_AD9" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">zero coupon bond</span> – 12 months</span></div>
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<span style="background-color: #cfe2f3; color: #105592; font-family: Verdana, sans-serif; margin: 0px; padding: 0px; text-decoration: none;">Holding period increased to 36 Month for Unlisted shares and non Equity oriented mutual funds For LTCG Calculation</span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">6. As per CBDT circular No. 6/2015 dt. 09.04.2015, No <span class="IL_AD" id="IL_AD12" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Capital gains</span> will arise in respect of units of Mutual Funds under the Fixed maturity Plans on extension of their term.</span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">7. <strong style="margin: 0px; padding: 0px;">Plugging of loop hole to prevent misuse of Section 54EC</strong><strong style="margin: 0px; padding: 0px;"><br style="margin: 0px; padding: 0px;" /></strong></span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Investment within six months from the date of transfer of the asset in specified securities not exceeding fifty lakh rupees is only permitted.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Investments within six months but in different financial years of upto 50 lacs each are not allowed.</span></div>
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">Budget 2014 – Exemption U/s. 54EC cannot exceed Rs. 50 Lakh despite investment in two Years</span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">8. Investment only in <strong style="margin: 0px; padding: 0px;">one residential house <span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">in India</span> </strong>allowed for claiming exemption under Section 54 or Section 54F. </span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">9. No exemption allowed for investment in Residential House located outside India.</span></span></div>
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<span style="font-family: Verdana, sans-serif;">10. Advance received and forfeited in relation to a transfer of capital asset now taxable immediately under the head ‘income from other sources’ and not to be reduced from the cost or written down value or the fair market value, as the case may be, in computing the cost of acquisition of such asset. Read- Budget 2014 – Advance forfeited against transfer of Capital Assets taxable as other Income as Income from other sources </span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">11. Presumptive income in respect of taxpayers engaged in the business of plying, hiring or leasing goods carriages increased to a uniform amount of INR 7,500 per month for all types of goods carriages. Read- Budget 2014- Presumptive income amount increased to Rs. 7500 for Business of Plying, Hiring or Leasing Goods Carriages </span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">12. Employer’s contribution to NPS by non-Central Government employers eligible for deduction up to ten per cent of salary in a financial year, irrespective of the employees’ date of joining of employment and without any limit. The deduction in respect of employee’s contribution is restricted to INR 100,000 within the overall limit of Section 80CCD. </span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">13. Aggregate payments of INR 100,000 or more under life insurance policy not exempt under Section 10(10D) liable to withholding tax at two per cent. </span></span></div>
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<span style="background-color: #cfe2f3;"><span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">14. Transfer of government <span class="IL_AD" id="IL_AD2" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">security</span>, carrying a periodic payment of interest, by a non-resident to another non-resident and made outside India through an intermediary dealing in settlement of securities not to be regarded as transfer and accordingly not liable to capital gains tax. </span></span><br />
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<span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">15. Trading in commodity derivatives carried out through a recognised association and which is chargeable to commodities transaction tax will not be treated as a speculative transaction. <strong style="color: #105592; margin: 0px; padding: 0px; text-decoration: none;">Trading in commodity derivatives not to be considered as a speculative transaction</strong></span><br />
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<em style="margin: 0px; padding: 0px;"><span style="background-color: #cfe2f3; font-family: Verdana, sans-serif;">(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)</span></em></div>
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<span style="background-color: #cfe2f3; color: #5e5e5e; font-family: Verdana, sans-serif; font-size: 13px; line-height: 19.5px;">- See more at: http://taxguru.in/</span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-22792610756710783072015-04-16T03:59:00.001-07:002015-04-17T00:45:11.068-07:00New Partner for Kanjirapally<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #002060; font-size: 11.0pt; mso-bidi-font-size: 10.0pt;">CA. Teny Joy Sebastian B Com, MFT, ACA (220631), ACPA
(Bots)<o:p></o:p></span></div>
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<div class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; text-align: justify;">
<b><span style="font-family: "Trebuchet MS","sans-serif";">Mr.Teny Joy
Sebastian, </span></b><span style="font-family: "Trebuchet MS","sans-serif";">was enrolled as a member of the <b>Institute of
Chartered Accountants of India </b>on 27/02/2008<b> </b>and has an experience
in almost every facet of the accounting, auditing and consulting profession in
the Middle East and Africa. He has also
served as a Senior Analyst to US and Canadian companies in the Middle East. He
did his graduation in Commerce from St. Berchmans’ College Changanacherry and
Chartered Accountancy with M/s. R B Pai & Associates Kottayam. <o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS","sans-serif";">Thomas & Associates welcomes him on board..</span><br />
<span style="font-family: "Trebuchet MS","sans-serif";"><br /></span>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-1232628137296026632015-04-16T03:48:00.001-07:002015-04-17T00:42:56.357-07:00Pros and Cons of Incorporation of One Person Company (OPC)<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">With the enactment of Companies Act, 2013 w.e.f. April 1, 2014, a new concept called “ONE PERSON COMPANY (OPC)” also came into existence. The legislature were of the view that OPC shall have an edge over the other companies in relation to the benefits being earned w.r.t. holding of Board Meetings/ General Meetings/ Preparation of accounts and many more. Although there are a no. of benefits available to OPC but the progress of incorporation of such companies is comparatively too less in as compared to private limited companies. In The Last One Year I.E. April 1, 2014 to March 31, 2014, a total of 2026 companies have been registered (This <span class="IL_AD" id="IL_AD7" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">calculation</span> is based on searching of name of companies with the end <span class="IL_AD" id="IL_AD2" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">word</span>” OPC Private Limited” on MCA Portal) whereas a total of 68, 000 private/ public limited companies have been incorporated during 2013-14. The <strong style="margin: 0px; padding: 0px;">concept of OPC</strong> was being generated by J. J. Irani Committee was with an<strong style="margin: 0px; padding: 0px;"> intention:</strong><span id="more-66610" style="margin: 0px; padding: 0px;"></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1. To enable growth and most business friendly corporate <span class="IL_AD" id="IL_AD11" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">regulation</span> in India.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">2. To encourage the individuals/ small Proprietors who used to carry their business on individual basis on small scale in small towns even, could convert themselves into the corporate.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">3. To give the young businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc. all in <span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">the name</span> of a separate legal entity.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">4. To bring more and more business under the MCA that could make enable the government to <span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">check</span> over such business in a transparent way.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">5. For those persons who want to venture alone, the only option was proprietorship, an onerous task since it is not legally recognized as a separate entity. Hence, the concept of OPC has opened the doors for the entrepreneur looking to set up a company all by himself.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">6. OPC will give the businessman all benefits of a private limited company which categorically means they will have access to credits, bank loans, limited liability, legal protection for business, access to market etc all in the name of a separate legal entity.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">7. Complete Control of the company with the single owner</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">8. Legal Status And Social Recognition For the Business</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">9. Limited Liability Protection To Directors and Shareholder</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">10. This has benefitted for those persons who wanted to do business under corporate culture alone but because of the condition of two persons as members, they face difficulties and have to induce some other into the business. This has given an option to such persons for <span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">carrying</span> their business in a corporate way without inducing any other person as owner of the business.</i></span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">BENEFITS TO OPC UNDER THE ACT</i></span></strong></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">Even, the ACT has provided a no. of benefits to the OPC under the law. These are as follows:</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1. The financial statements of a one person company can be signed by one director alone.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">2. Cash Flow <span class="IL_AD" id="IL_AD12" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">Statement</span> is not a mandatory part of financial statements for a One Person Company [Section 2(40)].</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">3. Board Report to be annexed to financial statements may only contain explanations or comments by the board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">4. OPC should file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be <span class="IL_AD" id="IL_AD9" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">attached</span> to such financial statements, within one hundred and eighty days from the closure of the <span class="IL_AD" id="IL_AD10" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">financial year</span>.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">5. As per Section 96(1) of the Companies Act 2013, the provision relating to holding of AGM is not mandatory for OPC.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">6. For the purposes of holding board meetings, in case of one person company which has only one director, it shall be sufficient compliance if all resolutions to be passed by such a company at a board meeting, are <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">entered</span> in the minutes book required to be maintained under section 118 and signed & dated by the member and such date shall be deemed to be the date of the board meeting for all the purposes under this act. If OPC has only one director, it is exempted from holding Board meetings.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">7. Provision for compulsory rotation of auditor in section 139(2) are not <span class="IL_AD" id="IL_AD4" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">applicable</span> to OPC</i></span></div>
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<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">WHY OPC NOT ATTRACTING THE PUBLIC AT LARGE</i></span></strong></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(The reason for not attracting the public at large for OPC has been drawn on basis of Practical Experience of my clients which may differ from Person to Person)</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">1. The cost of incorporation of an OPC with 1 lakh capital is same as that of incorporation of a Private Limited Company. No cost benefit has been given to the OPC. Hence, Businessman prefers to have Private Limited Company only</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">2. Using the word “OPC Private Limited” seems odd to a no. of people instead of Private Limited Company. Hence, there is no craze for OPC among them.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">3. A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company. This restricts them to carry more than one business where as being just a non-corporate businessman, they can carry any no. of activities with single name.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">4. The concept says that that the member will have to nominate any person. But restriction has been imposed with regard to Minor i.e. Minor cannot become member or nominee of the One Person Company or can hold share with beneficial interest. This restricts those non-corporate businessman who does not have any nominee other than their legal representatives as minor.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">5. Moreover nominating someone again look like intervention/ involvement of third person into the company.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">6. In case the company needs funds, it cannot raise through money through issue of shares because of condition of only one person as members and compulsory will have to convert itself into private limited company. Even if the person thinks of converting itself into the Private limited company, law impose a restriction that no OPC can be converted into private limited company unless two years have been expired from the date of incorporation or specified limit has been achieved by the OPC.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">7. In some of the business, the product value is as high that the target of sales more than 2 crores can be achieved in couple of months. In such a case, incorporating an OPC will not at all benefit to the NON-Corporate as they compulsorily will have to convert themselves into Private or Public Limited Companies within a short span of time.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">8. This concept was brought specifically for non-corporate business men. But these Non-Corporate Businessmen has thinking that incorporating a company will bring them under <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">preview</span> of one more department i.e. Registrar of Companies un-necessarily. Hence, they hesitate to do business under corporate culture. Moreover, after the enactment of Companies act, 2013, which has brought down strict provisions, penalties for non-compliance, the Professionals even are not suggesting their clients for incorporating the companies.</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;"><strong style="margin: 0px; padding: 0px;">Conclusion:</strong> Hence, the above is my own interpretation on Pros and Cons of Incorporation of OPC which may differ from person to person. But public at large/ Non-Corporate must be encouraged by Professionals to opt for OPC incorporation because it on one hand bring the corporate culture in country among businessman and on the other hand will bring the transparency in the business houses which will ultimately helpful for the economy of the country.</i></span></div>
<span style="color: #5e5e5e; font-family: Times, Times New Roman, serif; line-height: 19.5px;"><i style="background-color: #cfe2f3;">- See more at: http://taxguru.in</i></span></div>
CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0tag:blogger.com,1999:blog-3772909923174430889.post-24786957984891618362015-04-16T03:46:00.002-07:002015-04-17T00:43:09.468-07:00‘Proof of date of birth’ for PAN Application<div dir="ltr" style="text-align: left;" trbidi="on">
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<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">CBDT prescribes 4 more documents acceptable as ‘Proof of date of birth’ for PAN Application</i></span></strong><br />
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">CBDT has vide <a href="http://taxguru.in/income-tax/pan-tan-company-apply-form-inc7-separate-application-required.html" style="margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><strong style="margin: 0px; padding: 0px;">N</strong></a><a href="http://taxguru.in/income-tax/pan-tan-company-apply-form-inc7-separate-application-required.html" style="margin: 0px; padding: 0px; text-decoration: none;" target="_blank"><strong style="margin: 0px; padding: 0px;">otification No. 38/2015, Dated: April 10, 2015</strong></a> added the following additional documents as proof of Date of Birth <span class="IL_AD" id="IL_AD9" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">for applying</span> for a <strong style="margin: 0px; padding: 0px;">PAN card.</strong></i></span><br />
<span style="font-family: Times, Times New Roman, serif;"><i><strong style="background-color: #cfe2f3; margin: 0px; padding: 0px;"><br /></strong></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(i) <span class="IL_AD" id="IL_AD4" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">aadhar card</span> issued by the Unique Identification Authority of India</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(ii) elector’s <span class="IL_AD" id="IL_AD6" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">photo</span> <span class="IL_AD" id="IL_AD2" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">identity</span> card</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(iii) photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking<span id="more-66607" style="margin: 0px; padding: 0px;"></span></i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(iv) Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card.</i></span></div>
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<span style="background-color: #cfe2f3;"><strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i><br /></i></span></strong>
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;"><i>So now copy of the following documents if they bear <span class="IL_AD" id="IL_AD3" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">the name</span>, date, month and year of birth of the PAN applicant will be accepted Proof of date of birth-<span style="margin: 0px; padding: 0px;"><br style="margin: 0px; padding: 0px;" /></span></i></span></strong></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(a) birth certificate issued by the municipal authority or any office authorised to issue birth and <span class="IL_AD" id="IL_AD7" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">death certificate</span> by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of subsection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(b) pension payment order; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(c) <span class="IL_AD" id="IL_AD5" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">marriage certificate</span> issued by the Registrar of Marriages; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(d) matriculation certificate or mark <span class="IL_AD" id="IL_AD8" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">sheet of</span> recognised board; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(e) passport; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(f) <span class="IL_AD" id="IL_AD1" style="background-attachment: scroll !important; background-clip: initial !important; background-color: transparent !important; background-image: none !important; background-origin: initial !important; background-position: 0% 50%; background-repeat: repeat !important; background-size: initial !important; border-bottom-color: rgb(27, 142, 222) !important; border-bottom-style: solid !important; border-bottom-width: 1px !important; color: rgb(27, 142, 222) !important; cursor: pointer !important; display: inline !important; float: none !important; margin: 0px; padding: 0px 0px 1px !important; position: static; text-decoration: underline !important;">driving licence</span>; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(g) domicile certificate issued by the Government; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(h) aadhar card issued by the Unique Identification Authority of India; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(i) elector’s photo identity card; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(j) photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(k) Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card; or</i></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><i style="background-color: #cfe2f3;">(l) affidavit sworn before a magistrate stating the date of birth.”;</i></span></div>
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CA Prem Sebastian Antonyhttp://www.blogger.com/profile/10495092794519107824noreply@blogger.com0