MCA Updates
Form FC-1 to be filed with Registrar, Central Registration Centre Regulatory Updates
Within 30 days of the establishment of its place of business in India, a foreign company was required to file with the Registrar, Form FC-1 along with required fees and other necessary documents as provided in Companies (Registration of Foreign Companies) Rules, 2014. The same shall now be filed with the Registrar, Central Registration Centre. This amendment shall come into force from September 09, 2024.
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Adjudication proceedings through the e-adjudication platform
Amendment has been made to Companies (Adjudication of Penalties) Rules, 2014 by way of insertion of Rule 3A stipulating that all proceedings (including issue of notices, filing replies or documents, evidence, holding of hearing, attendance of witnesses, passing of orders and payment of penalty) of adjudicating officer and Regional Director under these rules shall take place in electronic mode only through the e-adjudication platform developed by the Central Government for this purpose.
Notices and summons shall be issued to the concerned person’s email address. If no email address is available, it shall be sent to the last intimated address or the address available on record. If no address is available, the notices shall be placed on the e-adjudication platform. The Form ADJ (i.e., Memorandum of Appeal) has been substituted.
This amendment shall come into force from September 16, 2024.
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Companies (Indian Accounting Standards) Amendment Rules, 2024
The MCA vide notification dated August 12, 2024 notified the Companies (Indian Accounting Standards) Amendment Rules, 2024 with a special focus on the insurance sector under IND AS 117. Some of the other modifications are included under IND AS 101, IND AS 103 and the removal of IND AS 104. Regulatory Updates
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Powers conferred upon “the Centre for Processing Accelerated Corporate Exit”
Amendments have been made to Rule 37 of the Limited Liability Partnership Rules, 2009, to grant authority to the Centre for Processing Accelerated Corporate Exit in regard to striking off the names of defunct LLPs from the register. These amendments came into force on August 27, 2024.
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SEBI Updates
Review of statement of investor complaints and timeline for disclosure of statement of deviation(s) in relation to Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs)
Amendments were made to the Master Circular for Infrastructure Investment Trusts (InvITs) and Master Circular for Real Estate Investment Trusts (REITs) dated May 15, 2024. As per the amendment, the Trustee and the Board of Directors/ Governing Body of the Manager shall ensure that all investor complaints are redressed by the Manager in a timely manner. Further, the statement disclosing the complaints shall be placed, on a quarterly basis, before the Board of Directors/ Governing Body of the Manager and the Trustee for review.
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SEBI (Mutual Funds) (Second Amendment) Regulations, 2024 – “Provisions for market abuse and mechanism for identification of market abuse”
SEBI has notified the SEBI (Mutual Funds) (Second Amendment) Regulations, 2024 to amend the SEBI (Mutual funds) Regulations, 1996.
Some of the Key regulations inserted are: Regulatory Updates
- The Asset Management Company (‘AMC’) shall put in place an institutional mechanism, as may be specified by the Board, and for the identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities.
- The Chief Executive Officer or Managing Director or such other person of equivalent or analogous rank and Chief Compliance Officer of the AMC shall be responsible and accountable for the implementation of such an institutional mechanism.
- The AMC shall establish, implement and maintain a documented whistle-blower policy.
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Migration of Venture Capital Funds (‘VCF’) registered under erstwhile SEBI (VCF) Regulations, 1996 to SEBI (AIF) Regulations, 2012
SEBI amended Alternative Investment Fund (‘AIF’) Regulations on July 20, 2024 to provide flexibility to Venture Capital Funds registered under the erstwhile SEBI (VCF) Regulations, 1996 for migrating to AIF regulations.
In line with the amendment, SEBI has now notified modalities for migration of Venture Capital Funds registered under erstwhile SEBI (VCF) Regulations, 1996 to SEBI (AIF) Regulations, 2012 by way of its circular dated August 19, 2024.
The facility of migration to AIF Regulations shall be available till July 19, 2025. Regulatory Updates
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Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (Res) Regulatory Updates
SEBI has released Cybersecurity and Cyber Resilience Framework (CSCRF) on August 20, 2024. The CSCRF aims to provide standards and guidelines for strengthening cyber resilience and maintaining robust cybersecurity of SEBI Regulated Entities viz. Stock Brokers and Depository Participants, Mutual Funds (MFs)/Asset Management Companies (AMCs), KYC Registration Agencies (KRAs) etc.
This framework shall supersede existing SEBI cybersecurity circulars/ guidelines/ advisories/ letters etc. Regulatory Updates
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Income Tax Updates
Non-applicability of higher TDS/TCS rates under 206AA and 206CC of the Income-tax Act, 1961, due to the death of the deductee/collectee Regulatory Updates
The CBDT notifies that for transactions up to 31.03.2024, where higher TDS/TCS rates under 206AA/206CC apply, no liability exists if the deductee/collectee passed away on or before 31.05.2024, before PAN-Aadhaar linkage. Deductions/collections under other provisions of the Income Tax Act will still apply. Regulatory Updates Regulatory Updates
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CBDT notifies ‘Advanced Manufacturing Technology Development Centre, Chennai’ for the purpose of relief u/s 35
The Central Board of Direct Taxes notifies the approval of ‘Advanced Manufacturing Technology Development Centre, Chennai’ under the category ‘University, College or other Institution’ for scientific research under sec 35 of the Income Tax Act, where any sum paid to such Institute for carrying out scientific research be eligible to claim a deduction of the amount equivalent to the amount contributed/paid.
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Income Tax Department Sets New Record with Over 7.28 Crore ITRs Filed by July 31, 2024 Regulatory Updates
The Income-tax Department set a new record with over 7.28 crore ITRs filed by 31st July 2024, marking a 7.5% increase from the previous year. Notably, 72% of filings were under the New Tax Regime. The e-filing portal handled peak traffic seamlessly, and over 6.21 crore ITRs were e-verified. The Department appreciates taxpayers and professionals for their timely compliance. Regulatory Updates
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Clarification on Income-Tax Clearance Certificate (ITCC) Under Section 230(1A)
The CBDT clarified that only individuals involved in serious financial irregularities or with direct tax arrears exceeding Rs. 10 lakh, which are not stayed, are required to obtain an Income-Tax Clearance Certificate (ITCC). The recent amendment includes liabilities under the Black Money Act but does not alter existing ITCC requirements for all citizens. Regulatory Updates
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CBDT Launches e-Dispute Resolution Scheme (e-DRS) 2022
The CBDT introduced the e-Dispute Resolution Scheme, 2022 (e-DRS) under section 245MA of the Income-tax Act, 1961, to reduce litigation and assist eligible taxpayers. Taxpayers can electronically apply for dispute resolution via designated Dispute Resolution Committees (DRCs). The scheme covers specified orders with certain income and variation limits and aims to provide timely resolution and potential relief from penalties. Regulatory Updates
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GST Updates
New Amendments to GST Act Effective from October 2024
The CBIC has notified amendments to the CGST Act through the Finance Act (No. 8) 2024, effective from 1st October 2024 and 1st April 2025. Key changes include a revised definition of “Input Service Distributor” (ISD), updated credit distribution procedures, and a ₹1 lakh penalty for manufacturers failing to register certain machines. These updates aim to enhance GST compliance and enforcement.
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CBIC issues guidelines for Investigations in CGST Zones
The Board’s Instruction No. 01/2023-24-GST (Inv.) outlines that if a CGST investigation reveals multiple interpretations of the Act or Rules, the Zonal Chief Commissioner should refer the issue to the GST Policy or TRU before issuing a show cause notice. This aims to ensure uniformity and reduce litigation and should be applied to ongoing audits as well. Regulatory Updates
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CBIC issues guidelines for the Second Special All-India Drive against fake registrations.
The second Special All-India Drive may be launched by all Central and State Tax administrations from 16th August 2024 to 15th October 2024 to detect suspicious/ fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue. The guidelines detailing the actions to be taken and the reporting of irregularities have been issued. Regulatory Updates
