E-filing of tax returns via ATM

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, Income Tax,e-Filing- Individuals, Firms, Companies | 0

The Income Tax department has launched an ATM-based validation system for filing e-ITRs by taxpayers as part of its measure to enhance the paperless regime of filing the annual IT returns.

“Now, Electronic Verification Code (EVC) can be generated by pre-validating your Automated Teller Machine (ATM) provided by the bank where a taxpayer has an account. While SBI has activated the facility beginning yesterday, other banks will follow soon,” a senior IT official said.

Last month, the department had launched the bank account based validation facility in this regard for those who have not availed internet banking facility. The new facility is available on the official e-filing portal of the department – http://incometaxindiaefiling.gov.in/ and will work by using the One Time Password verification system as activated by the department last year by using the Aadhaar number.

Source: http://www.thehindubusinessline.com/economy/policy/efiling-of-tax-returns-via-atm/article8693669.ece

Listed company’s documentation may get simpler

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The Securities and Exchange Board of India (Sebi) is learnt to be finalising a new mechanism to simplify the documentation process for listed companies wishing to issue new securities. Sources told FE that the concept of an ‘annual information memorandum’ will be introduced by the regulator, replacing the traditional offer document, if a company plans subsequent public issues via an offer for sale (OFS) or a follow-on public offering (FPO).

This memorandum is expected to provide exhaustive information about a company including financials, pending litigations and risk factors. Companies will have to file the document once a year. To incorporate the new mechanism, Sebi will amend Listing Obligations and Disclosure Requirement (LODR) regulations.

As per the current LODR regulations, a company needs to file an offer document whenever it comes up with a public offering. However, offer documents are not mandatory in the cases of private placement like preferential issue, qualified institutional placements (QIPs), etc. The documentation is also not mandatory in case of rights issue where the company plans to tap existing shareholders.

Offer documents are usually drafted by merchant bankers in coordination with legal advisers. Post introduction of annual information memorandum, a company will be able to cut on the fees paid to merchant bankers and lawyers for the issue.

“Currently, we have the concept of annual reports. The new mechanism is a step forward. Annual information memorandums would provide additional details like pending litigations, etc. The regulator would come up with a format for the memorandum soon. This will also help investors get all the information about a company at a single place,” said an investment banker who is part of the primary markets advisory committee (PMAC) of Sebi.

As per the current LODR regulations, a company needs to upload an annual report which should contain audited financial statements, cash flow statements,directors report and management discussion and analysis report. The top 500 listed entities in terms of market capitalisation should also disclose business responsibility report describing initiatives taken by them from an environmental, social and governance perspectives.

In October 2015, Sebi had introduced the concept of abridged prospectus that companies need to file for public offers. Under this mechanism, any company going for an IPO needs to file an abridged prospectus along with the regular draft red herring prospectus (DRHP). The abridged prospects would be a 10-page document which would provide all the key information to the investor about the company. The decision was taken in the interest of investors as the full DRHP of a company runs into 400-500 pages.

Source: http://www.financialexpress.com/article/industry/companies/listed-companys-documentation-may-get-simpler/273624/

Company Law Tribunal benches ‘will be fully functional’ in next few days

by | posted in: Company Incorporations, e-filing of MCA Returns, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0

All the 11 benches of the newly constituted National Company Law Tribunal (NCLT) will be fully functional in the next “couple of days”, a top Corporate Affairs Ministry (MCA) official said.

Infrastructure is ready in all the 10 cities where the NCLT benches are being set up. The human resources aspect has also been taken care of and adequate steps are being taken to start work immediately.

To begin with, NCLT will handle all pending cases before the Company Law Board and other matters not assigned to any other Court, the official said.

“There will be no transition problem for existing CLB cases,” the official added.

As on date, as many as eight members have joined NCLT, out of approved 25 members. “The remaining members are expected to join in the next few days. They will be posted in various benches,” the official said.

The MCA has also planned a 10-day colloquium in July for the NCLT members, the official added. Asked about the status of cases before High Courts (company cases), the MCA official said the High Court will be the second stage of transfer.

“We will let the CLB cases transition to stabilise for some time and then, in discussion with NCLT Chairman, decide on the High Courts related matter,” the official said.

The creation of NCLT from June 1 is expected to speed up delivery of justice in corporate cases. Sai Venkateshwaran, Partner and Head, Accounting Advisory Services, KPMG in India, hailed the MCA move to set up NCLT and NCLAT.

“We can expect to see the new Companies Act become a reality in its entirety in the coming months,” Venkateshwaran said. The time required for setting up of the NCLT and NCLAT was one of the key reasons for the Companies Act 2013 not being fully operationalised, he said.

However, with the setting up of these tribunals, the way has been paved for operationalising most of the remaining parts of the Companies Act 2013, he added. .

Meanwhile, the Company Law Board hearing in the Financial Technologies’ Board removal case did not take place on Thursday as the CLB stood dissolved on May 31 by virtue of the government move to set up NCLT from June 1.

Indications are that an NCLT bench will hear this matter in the coming days, sources said.

Source: http://www.thehindubusinessline.com/todays-paper/tp-news/company-law-tribunal-benches-will-be-fully-functional-in-next-few-days/article8688161.ece

Government lines up over Rs 17k crore to support rooftop solar projects

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The government has lined up almost $2.5 billion (about Rs 16,800 crore) for providing low cost finance to achieve the target of installing 40 GW grid-connected solar rooftop systems.

“The ministry is in negotiations with the KfW Development Bank to secure soft loans of 1 billion euro. They have already provided $100 million funding,” The Ministry of New and Renewable Energy (MNRE) Secretary Upendra Tripathy told reporters here.

The World Bank has committed a loan of $620 million, with the Asian Development Bank and the New Development Bank pledging $500 million and $250 million, respectively, he added.

“This will enable participating commercial banks such as SBI, PNB and Canara Bank to extend loan at or near base rates,” Tripathy said.

The secretary further said in the current fiscal, MNRE is trying to arrange an investment of Rs 6,000 crore for rooftop solar projects.

“The government is committed to encourage rooftop solar projects and Power and MNRE Minister Piyush Goyal will inaugurate a national workshop on Roof Top Solar Power on June 7,” he said.

This workshop will have presentations and discussions on various topics including best practices, innovative projects and major policy initiatives on projects, he added.

Besides senior government officials from the centre and states, the conference will also see participation from solar power project developers, channel partners as well as international agencies such as GIZ, KfW and USAID.

The power generated from solar rooftop plants installed even today is almost at par with the commercial tariff for consumers in many states. The cost of solar power is declining, while that of electricity from fossil fuels is rising.

Today, it is possible to generate solar power from rooftop systems at about Rs 6.5 per kilo watt hour, which is cheaper than power generated from diesel gensets and also cheaper than the cost at which most discoms make power available to industries and high-end domestic consumers.

On the issue of storage of solar power generated from rooftop systems, Tripathy said the government is working on providing some kind of subsidy for such projects.

Also there are plans for installing 15 minutes of storage in two projects in Andhra Pradesh and Madhya Pradesh.

 

Source: http://www.business-standard.com/article/economy-policy/govt-lines-up-over-rs-17k-crore-to-support-rooftop-solar-projects-116060301277_1.html

Government issues licence guidelines for virtual telecom operators

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The entry of VNOs is expected to push down cost of providing telecom services for companies and even give them room for cutting down tariffs.

The Telecom Department on Friday released licence guidelines for virtual network operators, opening the door for new class of players which will act like retailers for telecom service providers.

 

“After considering the recommendations of Trai on VNO, the government has decided to grant Unified Licence VNO (UL VNO),” DoT said in the licence guidelines.

 

The Virtual Network Operators will be entities providing telecom services like mobile landline and internet but only as retailer for full-fledged telecom operators such as BSNL, MTNL and Airtel etc.

 

The entry of VNOs is expected to push down cost of providing telecom services for companies and even give them room for cutting down tariffs.

 

“VNO shall use underutilized telecom infrastructure of national telecom operators. This will reduced cost of ownership on telecom companies to provide telecom services at more affordable rates,” internet firm Bluetown’s Country Managing Director Satya N Gupta said.

 

For obtaining UL VNO, interested companies will need to pay a one-time non-refundable entry fee for authorisation of each service they want to provide and for each service area where they wish to operate.

 

“The total amount of entry fee shall be subject to a maximum of Rs 7.5 crore,” the guidelines said.

Corporate Affairs Ministry again extends statutory filing deadline amid MCA21 woes

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Extending the deadline for the third time, Corporate Affairs Ministry has now given time till July 7 for companies to submit their statutory filings as issues related to MCA21 portal are yet to be fully resolved.

MCA21 is used for making electronic filings under the Companies Act and is managed by Infosys  for the ministry.

The upgraded system went live in the last week of March and stakeholders have been facing issues in using the portal.

The Ministry has extended the filing deadline for the third time in less than two months.

Initially, the extension was till May 10 and later the deadline was fixed for June 10.

Giving more time, the Ministry has extended the time limit for making the requisite filings under the companies law to July 10.

“…keeping in view, requests received from various stakeholders, it has been decided to extend the period for which the one time waiver of additional fees is applicable to all e-forms which are due for filing by companies between March 25 to June 30, 2016 as well as extend the last date for filing such documents and availing the benefit of waiver to July 7, 2016,” it said in a communication dated May 31.

While the communication does not mention anything about MCA21, Ministry officials expect to resolve the issues related to the portal soon.

On April 6, an Infosys spokesperson had said it was working with the Ministry to resolve the “minor teething problems” related to MCA21.

The portal is designed to fully automate all processes related to enforcement and compliance of legal requirements under the Companies Act.

Meanwhile, the Ministry has also extended the time limit for submitting Form 11 of LLP in respect of 2015-16 financial year without any additional fees to June 30.

Form 11 is for filing annual returns LLPs.

Source: http://economictimes.indiatimes.com/articleshow/52556624.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

 

Rs 3,770-cr nod for Chennai Metro project

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The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an investment of Rs 3,770 crore for development of the first phase of the Chennai Metro Rail project.

The 9.051 km corridor between Washermanpet and Wimconagar will be executed by Chennai Metro Rail Ltd (CMRL), the existing special purpose vehicle (SPV) of the centre and the state government with equal share of equity.

“The project is scheduled to be completed by March 2018. This extension will provide improved access to public transport for dense population comprising predominantly industrial workers to move towards the central business district of the city for work,” said an official statement.

The centre will have a share of Rs 713 crore in the total project cost while the state government’s share would stand at Rs 916 crore.The state’s share includes Rs 203 crore as cost of land acquisition and resettlement and rehabilitation (R&R).

The balance amount of Rs 2,141 crore for the project would be sourced as loan from domestic or multi-lateral funding agencies. The project is estimated to have a ridership of 160,000 passengers per day in the first year of operation.

Source: http://www.business-standard.com/article/economy-policy/rs-3-770-cr-nod-for-chennai-metro-project-116060101427_1.html