REGULATORY UPDATES– 26TH JULY, 2018

CBDT EXTENDS DUE DATE FOR FILING RETURN

The due date for filing of Income Tax Returns for Assessment Year 2018-19 is 31.07.2018 for certain categories of taxpayers. Upon consideration of the matter, the Central Board of Direct Taxes (CBDT) extends the ‘due date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the said categories of taxpayers.

INSOLVENCY AND BANKRUPTCY CODE SECOND AMENDMENT ACT 2018 HAS BEEN INTRODUCED IN LOK SABHA:

Insolvency and Bankruptcy Code (Second Amendment) Bill, 2018 was introduced in Lok Sabha to repeal and replace the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. Inter alia, the following are the highlights:

  • Ø an Explanation in sub-clause (f) of clause (8) to the effect that any amount raised from an allottee under a real estate project shall be deemed to an amount having the commercial effect of a debt.
  • Ø Clause 9 of the Bill seeks to insert a new section 12A to allow the withdrawal of applications admitted under section 7, 9 or 10 with the approval of ninety per cent. voting share of the committee of creditors in the manner as specified.
  • Ø Clause 25 of the Bill seeks to amend section 33 of the Code to provide a reduced threshold from seventy-five per cent to sixty-six per cent of voting share for obtaining the approval of the committee of creditors for making an application to the Adjudicating Authority to pass a liquidation order.
  • Ø Clause 34 of the Bill seeks to insert a new section 238A to provide that the provisions of the Limitation Act, 1963 shall, as far as may be, apply to the proceedings or appeals before the Adjudicating Authority or the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be.

SPLIT OF POSITION OF CHAIRPERSON AND MANAGING DIRECTORS IN LISTED COMPANIES:

The Securities and Exchange Board of India (SEBI), based on the recommendations of Kotak Committee on Corporate Governance, has amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 splitting the positions of the Chairperson and Managing Director, to start with, for top 500 listed companies on the basis of market capitalization effective from 1st April, 2020.

RESERVE BANK OF INDIA URGES SUPREME COURT TO REGULATE CRYPTO

In response, the RBI, through senior counsel Shyam Divan, told the Supreme Court that cryptocurrency left unregulated will encourage illegal transactions and also impact the international flow of funds. He said:

It has immense policy dimensions.

The RBI’s softening stance, after years of repeated public warnings against crypto currency, coincides with the timing of a final draft of regulations developed by an inter-governmental committee tasked to formulate a policy for the sector in the country.

 

RBI ADMONISHES CASH-ON-DELIVERY PRACTICE IN THE E-COMMERCE SECTOR

The Cash-on-delivery method of payment option provided by online retailers such as Flipkart and Amazon may be a regulatory grey areas as per the Reserve Bank of India’s response to a Right to Information (RTI) query.

In the RTI, a query was raised from the RBI to confirm whether the cash-on-delivery payment mode is under the Payments and Settlements Systems Act, 2007? While the Act conspicuously mentions the electronic and online payment modes, it does not explicitly mention about money received through the cash-on-delivery route.

 

MCA- KYC OF ALL DIRECTORS:

Ministry of Corporate Affairs (“MCA”) for the purpose of updating their registry will be conducting the KYC of all the Directors of all the Companies /Partners of all LLPs through a new e-form which is Form DIR-3 KYC. As per the Form DIR-3 KYC, every Director/Partner who has been allotted Director Identification Number (“DIN”) on or before 31st March, 2018 and whose status of DIN is “APPROVED” shall file the Form DIR-3 KYC on or before 31st August, 2018. The form has to be filed by “Disqualified Directors” also. The form has to be filed by every Director/Partner using their own Digital Signature Certificate (“DSC”) and thereafter the same shall be certified by a Practising professional.

Penalty for Non-Compliance:

After expiry of the due date which is 31st August, 2018 by which the Form DIR-3 KYC is to be filed, the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as ‘Deactivated’ with reason as ‘Non-filing of DIR-3 KYC’. After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.

Documents required:

  • Unique Personal Mobile Number;
  • Unique Personal Email ID;
  • DSC of the Directors;
  • Self-attested PAN card/Passport (Indian/Foreign);
  • Self-attested Aadhar Card with updated mobile number with UIDAI;
  • Self-attested Bank statement, electricity bill or Mobile bill not older than 2 months;

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