JULY 2017 Y E A PROGRESSIVE R S AN ISO 9001:2008 ... Amardeep Singh Bhatia l Ashish C. Doshi l Ashish Garg l Atul H Mehta l Gopalakrishna Hegde l Gopal Krishan Agarwal l Mahavir Lunawat

Regn. No. 21778/71 Delhi Postal Regn. No. DL(S)-17/3197/2015-2017Posting Date : 10/11-07-2017 Licenced to post without prepayment at Lodi Road P.O.Date of Publication : 05-07-2017 Licence No. U-(C)-80/2015-2017

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VOL 47 I NO. : 07 I Pg. 1-128 I JULY 2017 I `100/- (Single Copy)

“Speak the truth abide by the law”

3CHARTERED SECRETARY I JULY 2017

4 JULY 2017 I CHARTERED SECRETARY


www.icsi.edu http://www.facebook.com/ICSI/ http://www.twitter.com/ICSI_CS http://www.linkedin.com/in/the-institute-of-company-secretaries-of-india-icsi-a5899a102/

COMPANY SECRETARIES BENEVOLENT FUND

The Company Secretaries Benevolent Fund (CSBF) provides safety net to Company Secretaries who are members of the Fund and their family members in distress.

CSBF• RegisteredundertheSocietiesRegistrationAct,1860• RecognisedunderSection12AoftheIncomeTaxAct,1961• Subscription/ContributiontoFundqualifiesforthedeductionundersection80GoftheIncomeTaxAct,1961• Hasamembershipofover12,000

EligibilityAmemberoftheInstituteofCompanySecretariesofIndiaiseligibleforthemembershipoftheCSBF.

How to join• By making an application in Form A (available at www.icsi.edu/csbf) along with one time subscription of

`10,000/-.• OnecansubmitFormAandalsothesubscriptionamountof`10,000/-ONLINEthroughInstitute’sweb

portal:www.icsi.edu.Alternatively,hecansubmitFormA,alongwithaDemandDraftorChequefor`10,000/-drawn in favourof ‘CompanySecretariesBenevolentFund’,atanyof theOfficesof the Institute/RegionalOffices/Chapters.

Benefits• `7,50,000intheeventofdeathofamemberundertheageof60years• Upto`3,00,000intheeventofdeathofamemberabovetheageof60years• Upto`40,000perchild(uptotwochildren)foreducationofminorchildrenofadeceasedmemberindeserving

cases• Upto`60,000formedicalexpensesindeservingcases• LimitedbenefitsforCompanySecretarieswhoarenotmembersoftheCSBF

ContactFor further information/clarification, please write at email id [email protected] or contact Mr. Saurabh Bansal,Executiveontelephoneno.011-45341088.

For more details please visit www.icsi.edu/csbf

Saathi Haath BadhanaâæÍè ãUæÍ ÕÉ¸UæÙæ

Safeguarding and caring for your well being

Company Secretaries Benevolent Fund


The Council

Editorial Advisory Board

C O N T E N T S CHARTERED SECRETARY

[ Registered under Trade Marks Act, 1999 ]

Vol. : XLVII n No. 07 n Pg 1-128 n July-2017

Inland : Rs. 1000 (Rs. 500 for Students of the ICSI)Foreign : $100; £60 (surface mail) Single Copy : Rs. 100

‘Chartered Secretary’ is normally published in the first week of every month. n Non-receipt of any issue should be notified within that month. � n Articles on subjects of interest to company secretaries are welcome. n Views expressed by contributors are their own and the Institute does not accept any responsibility. n The Institute is not in any way responsible for the result of any action taken on the basis of the advertisements published in the journal. n All rights reserved. n No part of the journal may be reproduced or copied in any form by any means without the written permission of the Institute. n The write ups of this issue are also available on the website of the Institute.

Edited, Printed & Published byDr. S.K.Dixit for The Institute of Company Secretaries of India, ‘ICSI House’, 22, Institutional Area, Lodi Road, New Delhi- 110 003. Phones : 41504444, 45341000, Grams : ’COMPSEC’ Fax : 91-11-24626727 E-Mail : [email protected] Website : http://www.icsi.edu

Design & Printed at M. P. PrintersB-220, Phase II, Noida-201305Gautam Budh Nagar, U. P. - Indiawww.mpprinters.co.in

Mode of Citation: CSJ (2017)(07/--- (Page No.)

Annual Subscription

QR Code/Weblink of Chartered Secretary Journalhttps://www.icsi.edu/JournalsBulletins/CharteredSecretary.aspx

From the President 11

CS Women : Empowered and Empowering...!!! 22

Articles 29

Legal World 77

From the Government 85

News From the Institute 103

ISSN 0972-1983 ®

Chairmanl S K Agrawala

Members (in alphabetical order)

l Atma Ram Guptal D.K. Jain (Dr.)l G. R. Bhatial Gopal Jiwarajka l H. M. Chorarial J.K. Mittall K Narayana Swamyl N.K. Jainl Nirmala Rawat (Ms.)l P.K. Mittall Prithvi Haldeal R. C. Guptal Udai Parnamil Vinod K. Singhania (Dr.)

Editor & Publisherl S.K. Dixit (Dr.)

Legal Correspondentl T. K. A. Padmanabhan

07

President�l Shyam Agrawal (Dr.)

Vice President�l Makarand Lele

Members (in alphabetical order)

l Ahalada Rao V.l Amardeep Singh Bhatial Ashish C. Doshil Ashish Gargl Atul H Mehtal Gopalakrishna Hegdel Gopal Krishan Agarwall Mahavir Lunawatl Mamta Binanil Rajesh Sharmal Rajiv Bajajl Ramasubramaniam C.l Ranjeet Kumar Pandeyl S. K. Agrawalal Satwinder Singhl Vijay Kumar Jhalanil Vineet K. Chaudharyl Yamal Ashwinkumar Vyas

Secretaryl Dinesh C. Arora


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081.MeetingofICSIdelegationwithKKJalan(Secretary,MinistryofMicro,Small&MediumEnterprises)–SittingclockwisefromLeft:KKJalan,CSSoniaBaijal,CS(Dr.)ShyamAgrawalandCSMahavirLunawat.2.MeetingofICSIdelegationwithDr.MadhukarGupta(AdditionalSecretary,DepartmentofPublicEnterprises)–SittingclockwisefromLeft:Dr.MadhukarGupta,CS(Dr.)ShyamAgrawalandCSMahavirLunawat.3.MeetingofICSIdelegationwithR.Romawia(CabinetMinisterforHigher&TechnicalEducation,Mizoram)-StandingamongotherfromLeft:AnkurYadav,CS(Dr.)ShyamAgrawalandR.Romawia.4.MeetingofICSIdelegationwithConsulGeneralofIndia,St.Petersburg,Russia–StandingfromLeft:CSAtulHMehta,ArunKumarSharma(ConsulGeneralofIndia,St.Petersburg,Russia),CS(Dr.)ShyamAgrawal,CSRajeevBhambriandCSSuryaNarayanMishra.

5.MeetingwithAlexanderKamenskiy(HeadofCorporateGovernanceDept.,MoscowExchange)andSemenovAlexander(ED,NationalAssociationofCorporateSecretaries)-CS(Dr.)ShyamAgrawalpresentingSS1andSS2toSemenovAlexander.StandingamongothersfromRight:CSRajeevBhambri,CSSNMishraandCSAtulHMehta.

6.MeetingofICSIdelegationwithKDDewal,FirstSecretary(HOC&Commercial)HeadofChancery’sOffice,IndianEmbassy,Moscow,Russia–SittingfromLeft:CSSNMishra,CSRajeevBhambri,CSAtulHMehta,CS(Dr.)ShyamAgrawalandKDDewal.

7.TwelfthInternationalConferenceofICSIonStrategicLeadershipandBoardResponsibilitiesheldatMoscow,Russia–CSAshokTyagiaddressing.OtherssittingfromLeft:CSBNarasimhan,CSIlamCKamboj,CS(Dr.)ShyamAgrawal,CSNKJainandCSShalini.

8.TwelfthInternationalConferenceofICSIonStrategicLeadershipandBoardResponsibilitiesheldatMoscow,Russia-Groupphotoofparticipants.

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189. PCSDayCelebration–CSVirendraBhataddressing.OthersstandingfromLeft:CSNKJain,CSRajeevBhambriandCS(Dr.)ShyamAgrawal.10. FirstmeetingofICSItaskForceonAudit/DueDiligence/ComplianceofSEBILaws-StandingfromLeft:Dr.GargiRajvanshi,CSMahavirLunawat,Dr.VRNarasimhan(ChiefRegulations,NSEofIndiaLtd.),CSNileshShah,JN

Gupta(FormerED,SEBIandFounderandMD,StakeholdersEmpowermentServicesPrivateLtd.),RobertPavrey(RobertPavreyandAssociates),BRenganathan(Ex.VPandGroupCS,EdelweissFinancialServicesLtd.),NikhinJain,CSJanakCPandya,KCKaushikandAshwinKhargar.

11&12.Aviewofthe2ndICSIGSTCoreAdvisoryGroupmeetinginprogressundertheChairmanshipofDr.GirishAhuja.13. AglimpseoftheICSIMegaCareerAwarenessProgrammeheldinAssociationwithPachhungaUniversityCollege,Aizawl.14. openingofICSIAizawlStudyCentre.15&16.InternationalYogaDay,2017–TeamICSIperformingyogaandGroupphotoofSecretaryandHoDswithyogainstructressPoojaSharma.17&18.CS(Dr.)ShyamAgrawalawardingsomeofthewinnersoftheFirstInternationalCompanySecretariesOlympiadatIndiaHabitatCentre,NewDelhi.


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2919. 18thNationalConferenceofPractisingCompanySecretariesonEnterprisingIndia–RoleofProfessionalsinNewAgeIndia–CSSKAgrawalaaddressing.OtherssittingfromLeft:CSDineshCArora,CS(Dr.)ShyamAgrawal,

Hon’bleJusticeDineshMaheshwari(ChiefJustice,MeghalayaHighCourt),CSMakarandLele,CSAshishCDoshi,CSSiddharthaMurarkaandCSAmitPareek.20-22.AddressbyHon’bleJusticeDineshMaheshwari(ChiefJustice,MeghalayaHighCourt),CS(Dr.)ShyamAgrawalandCSMakarandLele.23-26.ReleaseofNationalConferenceSouvenircumBackgrounder,ICSIpublicationtitledBeginnersGuideonGST,launchofFeewaiverSchemeandCorporateLeadershipDevelopmentProgramme.27-28SpeakersoftheSecondsessionoftheConference–SittingonthedaisfromLeft:VijayMBatra(CorporateTrainer),CSMaheshShahandCSNesarAhmad.29. 18thNationalConferenceofPractisingCompanySecretariesonEnterprisingIndia–RoleofProfessionalsinNewAgeIndia-GroupPhoto-SpeakersofseconddayoftheprogrammeSittingonthedaisfromLeft:AnilSaraf(Advisor

toDepartmentofIndustries&Commerce,GovernmentofAssam),GautamChintey{Adviser(Banking,Industries&Tourism),NEC,MinistryofDevelopmentofNorthEasternRegion,GovernmentofIndia},ShehlaRehman(Secretary,DepartmentofIndustries&Commerce,GovernmentofAssam)seenwithPresident,VicePresident,CouncilMembers,SecretaryICSIandsomeoftheparticipants.

18th National Conference of Practising Company Secretaries, Shillong, Meghalaya

10 JULY 2017 I CHARTERED SECRETARY 11CHARTERED SECRETARY I JULY 201710 JULY 2017 I CHARTERED SECRETARY 11CHARTERED SECRETARY I JULY 2017

MyValuedColleagues

W hileaddressingthenationattheCentralHallofParliamenton launchofGST,Hon’blePrimeMinisterNarendraModihadcited“Today,the

GSTCouncilhadits18thmeeting.It isacoincidencethattheBhagavadGitaalsohas18chapters”.Listeningtothisaddress,followingShalokas’fromKathopanishadandBhagvadGitastressingimmortalityofsoulradiatedin my mind:

Ù ÁæØÌð ç×ýØÌð ßæ çßÂçà¿‹‹ææØ¢ ·é¤Ìçà¿‹‹æ ÕÖêß ·¤çà¿žæ÷Ð¥Áæð çÙˆØÑ àææàßÌæðùØ¢ ÂéÚUæ‡ææð Ù ãU‹ØÌð ãU‹Ø×æÙð àæÚUèÚÔUÐÐ18ÐÐ

na jāyate mriyate vā vipaśhchin nāyaṁ kutaśhchin na babhūva kaśhchit

ajo nityaḥ śhāśhvato ’yaṁ purāṇo na hanyate hanyamāne śharīre (1.2.18) [v25]

- Kathopanishad

“The soul is not born, nor does it die; it did not spring from something, and nothing sprang from it. It is unborn, eternal, immortal, and ageless. It is not destroyed when the body is destroyed.”

Ù ÁæØÌð ç×ýØÌð ßæ ·¤Îæç¿ÙæØ¢ Öêˆ¿æ¢ ÖçßÌæ ßæ Ù ÖêØÑÐ¥Áæð çÙˆØÑ àææàßÌæðùØ¢ ÂéÚUæ‡ææð Ù ãU‹ØÌð ãU‹Ø×æÙð àæÚUèÚÔUÐÐ20ÐÐ

na jāyate mriyate vā kadāchin nāyaṁ bhūtvā bhavitā vā na bhūyaḥ

ajo nityaḥ śhāśhvato ’yaṁ purāṇo na hanyate hanyamāne śharīre

BG 2.20: The soul is neither born, nor does it ever die; nor having once existed, does it ever cease to be. The soul is without birth, eternal, immortal, and ageless. It is not destroyed when the body is destroyed. - Bhagvad Gita

Therefore, both Shalokas from our ancient literatureseemtobesoaptinthecontextofthishistoricalchangeastheold‘body’ofthesemulti-layeredtaxstructureinIndiaconsistingof17taxesand23cesseshaschangeditsformtotakeformofanew‘body’whichbeautifullyunleashed the concept of ‘One Tax, One Nation:GST’.Thiswasparamounttostreamlinethecountry’s$2-trillion economy and 1.3 billion people into a common market to give a push to ease of doing business inIndia. The entire fraternity of Company Secretaries standsunitedandprepared toextend its contributiontowards ensuring successful transition towards GST.TosupporttheGovernmentinthisneotericreform,wehavetakenmanyinitiativeshighlightedinthisissueofChartered Secretary besides dedicating this issue toGSTexclusively.

Movingforward,theyear2017,alandmarkyear,whenICSI is going to celebrate itsGolden Jubilee, is alsoa year, when along with celebrating the 50 gloriousyears of our profession, along with feeling fortunatetobe the torchbearerof ICSI in thishistoricalyear, Ialso have a complete sense of trust placed on us by thestakeholders.Inthecontemporarycontext,weareexploringallavenuestonurtureexcellentgovernanceprofessionalsandaremaking360degreeeffortsinthisdirection.

Tostartwith,weareworkingtowardssketchinga‘Vision2022’documenttofindouttheroadmap ICSI should adopt in future for the Company Secretaryship course for its students so as to Groom World Class Governance Professionals. We have invited your participation in deciding this roadmap in this issue, Itrust that all of you would come forward to sketch this VisionandshapeaNewICSI.

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Further, we have also formally adopted theMotto ofICSI as “Satyam Vada, Dharmam Chara - Speak the Truth, Abide by the Law” the quote which ICSIprofessionalshavebeenbelievingandlivingwithsinceinception of this profession.

It is our core objective to make our profession abenchmarkforglobalgovernanceinstitutes,therefore,endeavours have been made for a complete refurbishmenttoshapeourNewICSI.Abriefaccountof such endeavours is as under:• Revisiting Curriculum Mapping: A curriculum is

considered the “heart” of any learning institution.Curriculum reform has a greater role to playas it instils life-long learning competencies in alearner.Keepingthisinmind,theInstituteisintheprocess of revamping the curriculum to keep ourfuture professionals abreast of the contemporary developments. In theyear2017,wehavealreadyintroduced new syllabus for Foundation level while curriculum development for Executive andProfessionallevelsisinpipeline.

• Creating a Holistic Learning Pedagogy: Excellent content developed through curriculummapping needs support of outstanding pedagogy.Therefore, ICSI has come up with commendablee-learning mechanism for students on Pan Indiabasis.Notonlythis,ifthestudentswhoarenotableto use e-learningmechanism due to any reason,anadditionalfacilityof‘AcademicHelpline’tohelpthem understand concepts over phone at flexiblehours has been provided. Besides, to enablethe students to network virtually to discuss study relatedmatters,aVirtualLearningthroughSMASHhas been provided.

• Strengthening Infrastructure: The Institute is growing by leaps and bounds on infrastructuraldevelopment end. Whereas the construction of new building of Udaipur and Guwahati Chaptershave been almost completed, the new BuildingProjectforCentreofExcellence,Hyderabadisnearcompletion.Further,theInstitutehassecuredaplotforRaipurandGurgaonChapter.

• Revamping Examination System: Any learningprogram must provide a balanced and fairevaluationofeachstudent.Therefore,examinationsystemofeverylearninginstitutionmustbecapableofdefining theactualdegreeof intelligenceof thelearner.Keepingthisinmind,differentalternativesof assessing credibility of the students by way ofexaminationarebeingexplored.Also,examinationenrolment system has been digitized throughSMASHregisteringonelakhstudentsforJune2017exams.

• Inculcating Requisite Skills for Future Members: Concrete leadership and professional skills are mustbeforesteppingintostartacareer.Tobridgetheskillgapinherent indistancelearningmodeoflearning, ICSI has comeupwith a novel 90 daysCorporate Leadership Development Program.As thecostof this leadershipprogramshouldnot

become a hassle for the students keen to pursue this the program will be highly subsidized. Ona pilot basis, a 45 days residential program forprofessional pass out students has been launched toshapeaccomplishedandsanguinefutureKMPs.

• Stepping Stone for Placements: For providinginitialsupporttotheyoungmembersoftheInstitutetosteer thedirectionof theircareers, the InstituteorganizedaMegaPlacementDriveinallitsregionsPANIndiainthemonthofMay2017.Thisdrivehasbeen taken well by the corporate and ICSI will be launchingsimilardrivesinthemonthstocome.

All these initiatives are an attempt to provide everysupport to our students to become a ‘World Class GovernanceProfessional’andtoshapeNewICSI.

Extending Support to Our Professional Fraternity With the continuous developments in the externalenvironment, the role of professionals needs to beredefined continuously to avail the opportunitiesemerging in this environment. A host of steps havebeen taken for our members so that they can strive towardsprofessionalexcellencesuchas:• Opening International Avenues for Our

Fraternity: WearemakingbesteffortstoputICSIon world map by exploring novel opportunitiesand gaining international recognitions for ourmembers.Forthis,aclearunderstandinghasbeenarrived at with the ICSA-UK to the effect that anICSI member having secured the membership ofICSA-UKdesires toshiftbase toanotherdivision,isnoweligibletodoso.Notonlythis,adelegationledbymemetwithH.E.Mrs.SuchitraDurai,HighCommission of India, Nairobi, Kenya during ourKenyavisitandasaresult,thelinkofICSIwebsitehasbeensuccessfullyplacedatHighCommission’swebsite for reference of investors keen to invest in India.Deliberationswithvariousotherorganisationsof International repute are also ongoing so as tocreate opportunities for our CS professionals when suchforeigninvestorsbecomeattractedtoinvestinIndia.

• Knowledge Building Initiatives for Members: Theinitiativestakeninthisyeartoprovideefficientservices to our members include: Exploring Joint Programs with IIMs: For skill

enhancementofthemembers,ICSIisexploringpossibility of conducting joint programs withInstitutesofreputesuchasIIMs.Thisisastepto ensure edifying world class governancepractices to our members.

Companies Act, 2013 “Enable, Evaluate, Excel”: The Institute is organising aweekendwebinar series “Enable, Evaluate, Excel” onthe Companies Act, 2013 specially for theyoung members who have been admittedduring the transitionperiodsbeforenotificationoftheCompaniesAct,2013.Thisspecialdrivefor such members has been well received by the members to revive, refresh and sharpen

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their knowledge on theCompaniesAct, 2013.Further,inordertoenablememberstoevaluatetheir knowledge on the subject, The ICSI, oncompletion of webinar series, provides anopportunity of online self-evaluation.

Quest Assist: Quest Assist is a platform toreply the queries and difficulties of memberspertaining to the Companies Act, 2013 andRulesandNotifications issued thereunderandissuesrelatedtoE-filing.

GST Point: To serveas a facilitating platformtoresolvethequeries,inquiriesandchallengesfaced by consumers, manufacturers, traders,MSMEs, professionals, public at large, etc. inunderstandingandimplementingtheprovisionsofLaw(s)onGoodsandServicesTax.

Goods and Services Tax Newsletter: To cover recentupdatesandnewsunderGST,glimpseofeventsorganisedbyICSIonGSTandalistofupcomingeventsalongwitharticles,FAQsandother related material.

Amrut Dhara: Perspective understanding ofgovernance and management from AncientIndiaandIndianEpics.

Gyan Jyoti:Aseriesof researchwrite-upsonvarious contemporary issues and topics.

InfoCapsules:Forproviding informationonalltherecentdevelopmentsandissuesconcerningnot only the profession but the economy as a whole.

ICSI FinanCS: Publishesopportunitiesandkeydevelopments in Financial Services space.

Student Professionals Today: A journal forsupplementing knowledge of CS students invarious spheres.

ICSI-CCGRT Geeta Saar: A Brief Premier onCompanyLaw

ICSI-CCGRT E-Bulletin Chintanam Gyan Moti: A daily quote on ICSI homepage

extractedoutofrichancientIndianliterature.

Further,ICSIhasalsoendeavouredtoprovidevariouspublicationsoftheInstitutefreeofcosttoourmembers,the soft copy of which is available and downloable at the link. The link for the publications is http://www.icsi.edu/PCS_Pub.aspx.Iurgeallofyoutotakemaximumbenefitoutofthesame.

• Strengthening Disciplinary Mechanism: The Institute is in the process of streamlining andstrengtheningitsDisciplinaryMechanismbyfurtherenhancing Good Governance practices, in tunewiththeGovernmentofIndia’sendeavourtofurtherstrengthen the Disciplinary Mechanism across allthe three professional Institutes and a Nationalefforttostreamlinethecorporategovernance.

• Towards a Digital ICSI : With a view to pace up the Institute’sservicesundertherealmofDigital Indiaand cutting edge information and communicationtechnology, ICSI has taken various strides andfollowingelectronicserviceshasbeenintroduced:

RevampinghomepageofICSIwebsite ConvertingCharteredSecretary in toa reader

friendlye-magazineform OptiontobuypublicationsofICSIonlinethrough

our website Launch of website of ICSI-Insolvency

ProfessionalAgency ICSI Financial Services e-helpdesk Option to view credit hours online by the

members Online payment of membership fees without

login LaunchofGSTapp Online Certificate Course on Goods and

ServicesTaxjointlywithNIFM• Recognitions to Company Secretaries in

Practice: Arraysofrecognitionsarebeingaccordedto Company Secretaries under various central and state laws. In this context, the Institute broughtout the publication titled ‘Areas of Recognitionsto Company Secretary in Practice under VariousLaws’toapprisethemembersaboutthevastworldofrecognitionsundervariouslawsofthecountry.

• Core Group/Task forces : For capacity buildingand deciding way forward for profession, theInstitute has constituted following Core Groups/Task force in areas related to profession: ICSIGSTCoreAdvisoryGroup CoreGrouponLabourLaws CoreGrouponNCLT CoreGrouponIntellectualPropertyRights TaskForceonCompanyLawforallfourregions TaskForceforDiligenceReport TaskForceonAudit/DueDiligence/Compliance

ofSEBILaws

• Increasing Virtual Presence of ICSI through Social Media: The Institute is making everyendeavour to communicate initiatives taken by us through social media such as Twitter, FacebookandLinkedin.Theresponsetothisrealtimemediahasbeenhugeand thishasbeenappreciatedbystakeholdersatlarge.

• Exploring opportunity for members in the sphere of ‘Insurance Industry’:Withtheobjectiveofexpandingtheexpertiseoftheprofessionalsandto create cadre of professionals in the insurance industrywellversedinriskmanagement,governanceand regulatory compliancesof insurance industry,the Institute entered in to a Memorandum ofAssociation with Insurance Institute of India tojointly offer a “Certificate Course on Compliance,GovernanceandRiskManagementinInsurance”.

• Capacity building in areas of Valuation and Internal Audit: The Institute in collaboration with NationalInstituteofFinancialManagement(NIFM)haslaunchedOnlineCertificateCourseinValuationandDiploma in InternalAudit toofferan intensiveinstruction and training to augment the skills ofCompanySecretariesrelevant in today’sbusiness

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environment.• Empowering CS Women Members: ICSI firmly

believes that its women members are makingan important contribution to the profession and are bringing ‘heart’ with ‘mind’ in this profession.Therefore,torecognisethejourneyofsuchwomenand to inspire future women members, a regularcolumn has been dedicated to the women CS in our esteemedjournalCharteredSecretary.

Extending Our Contribution towards Nation BuildingBesides, taking above initiatives to become a globalleader in promoting good corporate governance, theInstituteisalsoextendingitscontributiontowardsNewIndia.Wearetakingstepsto:• Promoting Nationalism through adoption of

Khadi: For the first time in the history of ICSI,ICSIhasdoneawaywithBritishHangoverduringits Convocations and the newly inducted members received their membership in traditional Indian attires of Kurta Pyjamas (boys) and Sarees/Suits(girls)alongwithTri-colorUttariya/stolesratherthantheBritisherablackgownsandheadgear.

• PromoteusageofournationallanguageHindiinthefunctioningofICSIPanIndia.

• Swachh Bharat Abhiyan:WeareextendingwholeheartedcontributiontotheSwachhBharatAbhiyanofGovernmentofIndia.

• Promoting Yoga: In furtherance to the Institute’seffort in keeping pace with the flagship initiativesof the Government, the Institute celebrated 3rdInternational Yoga Day on June 21, 2017 PANIndia.

• Encouraging MSME Entrepreneurs: Institute is takingvariousmeasures toemphasize the roleofMSMEs in the National progress, insight into theregistrationprocessofMSMEs,raisingoffinancesas well as compliances with various regulatoryobligations to help MSME Entrepreneurs inmanagementandadministrationoftheirbusinessesin a sustainable manner.

• A Guide to Ease of Doing Business in North Eastern Region: In view of attainment of the objective of ‘Balanced Regional Growth’, itis imperative to create a congenial businessenvironment in North-East thereby facilitatinggrowth of business. In this backdrop, the booktitled,“EaseofDoingBusiness”hasbeenpublishedto delve into various key facets pertaining to thebusinessenvironmentinNorthEast.

• Equal Opportunities for Students of Jammu & Kashmir and North-East India: Lately,Government of India is placing special emphasisondevelopmentof statesof JammuandKashmirandNorth-East(Ashtalakshmi)andhasannouncedspecial packages for these states. ICSI has alsofollowed the lead and has come out with a special ‘FeeWaiverScheme’toreachouttheyouthofNorthEastandJammu&Kashmir,fortheFoundationandExecutiveProgrammeStages. Notonly this,The

Institute has also opened nine Study Centres in the NorthEasternRegionatShillong,Jorhat,Tinsukia,Kharupetia, Gangtok, Dimapur, Itanagar, Agartalaand Aizwal. Alongwith, The Institute recentlyorganised one of its prestigious national levelprogramme i.e.NationalPCSConference2017 inShillonginthemonthofJune.

• ICSI Giri Sagar Vidhyarthi Vikas Yojana: To reach out to the student community and schools/colleges in the coastal areas/hilly regions on panIndia basis in around 300 cities.

• Envisioning Local to Global (L2G) Governance: ThechangingscenariointhesphereofGovernancerequires connecting the dots between ‘Local toGlobal(L2G)’aspectsofgovernance.FatheroftheNationMahatmaGandhiwasalsoastrongbelieverof strengthening local self-government systemand believed that every village must be stronglyempoweredtodealwithlocalissues.Similarly,thereis a need to pave the way for having universallyaccepted corporate governance norms. Keepingthisinview,thereisaneedtoexpandthehorizonof ICSI i.e. along with Corporate Governance toCitizen-centric approach where governance anddevelopment is activated at the grass root level.Along with, the need of the hour is to taking thecause of global governance to the new heights.Therefore, ICSI is coming up with two codesnamely “ModelGovernanceCode forMeetingsofGramPanchayats”andthe“InternationalCorporateGovernanceCode-ICGC”. Itstrives tosupplementsuch laws for promoting better governance in thefunctioningofGramPanchayat.

Taking Care of Our Social Responsibility • Earth Day:Practiceofgiftingplantersthanflowers

towelcomeguesthasbeen initiatedatalloffices/chaptersofICSItomarkEarthDaycelebrations.

• World Environment Day:Tobuildtheindulgenceof themembers, students and other stakeholderson“ConnectingwithNature”andtourgethemtogetoutdoorsand intonature, toappreciate its beautyand to think about how we are part of nature and how intimatelywedependonit,theInstitutecelebratedWorldEnvironmentDayonJune5,2017.

Supporting One Tax, One Nation: GST• GST POINT: GST POINT is a platform to reply

to the queries, difficulties and challenges facedby consumers, manufacturers, traders, MSMEs,publicatlarge,professionals,etc.inunderstandingand implementation of the Goods and ServicesTax Laws. The queries are being received andreplied over phone on the issues and challengesfacedbystakeholders indaytodayworkingwhileimplementingtheGST.Thehelplineisopenfortwohours,twiceaweekandthequeriesareaddressedby subject experts. Thequeriesmaybe raisedat011-45341095. In addition, Regional Councils/Chapters are also in the process of setting upphysicalcountersofGSTPointon thedesignated

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days.• Beginners Guide to GST:ABeginnersGuideon

GSThasbeenreleasedinthePCSConferenceforcirculationamongstpublicatlarge.

• GST E-Book:ICSIiscomingoutwithanE-BookonGoods&ServicesTaxtobereleasedsoon.

• GST App: The Institute has launched ICSI GSTAppforpublicatlargetoenableuserstogetlatestnews,articles,regulationsandvariouspublicationsonGSTbyICSI.Aneventlisttabwillkeeptheusersupdated about the events on GST organised byICSIacross India.DiscussionForum,a feature intheAppwillbeupdatedsoonwhereonewillbeabletodiscusshisqueriesrelatingtoGSTwithexpertsof the Institute.TheApp is presently available onandroidplatformandcanbedownloadedfromPlayStore.

• Certificate Course in GST:Withaview toequipCompany Secretaries with the skills and develop competencyintheareaofGST,ICSIhaslaunchedanOnlineCertificateCourseonGSTforitsmembers.ThecoursegivesacomprehensiveinsightintotheprinciplesofGSTaswellasothernuancesof thenew indirect tax regime. The registration for thiscourseonGSTcanbedoneatwww.icsi.edu.

• GST Master Classes: ICSI is organizing MasterClasses on Goods & Services Tax through itsvariousChaptersandRegionalOfficescontinually,makingawidecoverageofthenovellaw.

• GST Resource Persons: With a view to support the smoothimplementationofGSTinIndia,ICSIisintheprocess of empanelling resource persons inGSTwhowouldfurthercontributeincreatingawarenessand understanding about the facts, opportunities,challengesandwayforwardintheGSTregimeandpromote capacity building initiatives in the variedareasofthenewtaxonomy.

• GST Newsletter: The Institute as part of its capacity buildinginitiativeunderthenewindirecttaxregimeandupholdingthe“OneTaxOneNation”mottooftheGovernmentofIndia,hasbroughtoutamonthlynewsletterdedicatedtotheGoods&ServicesTax(GST).TheGSTNewsletterbroadlyaimstocoverrecent updates and news under GST, a glimpseofeventsorganisedby ICSIonGSTanda listofupcoming events along with articles, FAQs andother related material.

• GST Educational Series: The Institute has also launched a daily Educational Series on Goods &ServicesTax(GST)forthemembersandstudentstoenhanceknowledgeofGSTlaws.

• Formulation of a Core Advisory Group on GST: A core group was constituted to deliberateon the intricaciesof thenovel lawand formakingsubmissionstoGovernmentbybringingexpertsonboard.

• Webinar Series:Acontinuousseriesofwebinarswasconductedfordisseminatingunderstandingofthe novel law.

• Programmes on GST: Various programmes areregularlybeingconductedat regionalandchapter

levels as a part of capacity building initiatives oftheICSIandequippingprofessionalsandstudentsabouttheGSTLaw.

• Representations: The Core Group deliberateson issues relating to GST Law and therbyrepresentationsaremadetotheMinistryofFinanceand other appropriate forums for the benefit ofprofession and industry.

Epilogue WithsharingastockoftheseinitiativestakenbyICSIin the year 2017, I seek active participation of allstakeholdersincarryingoutthissagaofgrowthforthemonthsandyearstocomebecause“TeamworkmakestheDreamwork”.Astorywillillustrateitmoreclearly:Whenyouseegeeseflyingalongin“V”formation,youmightconsiderwhatsciencehasdiscoveredastowhytheyflythatway.Aseachbirdflapsitswings,itcreatesanupliftforthebirdimmediatelyfollowing.Byflyingin“V”formation,thewholeflockaddsatleast71percentgreaterflying range than ifeachbirdflewon itsown.Peoplewho share a common direction and sense ofcommunitycangetwheretheyaregoingmorequicklyandeasilybecausetheyaretravelingonthethrustofone another.

Whenagoosefallsoutofformation, itsuddenlyfeelsthe drag and resistance of trying to go it alone andquickly gets back into formation to take advantageof the liftingpowerof thebird in front. Ifwehaveasmuchsenseasagoose,wewillstayinformationwiththose people who are headed the same way as we are.Whentheheadgoosegetstired,itrotatesbackinthewingandanothergoosefliespoint.Itissensibletotaketurnsdoingdemandingjobs,whetherwithpeopleorwithgeeseflyingsouth.Geesehonkfrombehindtoencouragethoseupfronttokeepuptheirspeed.

What messages do we give when we honk frombehind? Finally — and this is important — when a goosegetssickoriswoundedbygunshot,andfallsoutof formation, twoothergeese falloutwith thatgooseand follow it down to lend help and protection. They staywiththefallengooseuntilitisabletoflyoruntilitdies,andonlythendotheylaunchoutontheirown,orwithanotherformationtocatchupwiththeirgroup.

Ifwehavethesenseofagoose,wewillstandbyeachother like that. Let us all build a ‘New India” a “NewICSI”.Happyreading.

Best wishes

Yourssincerely

July14,2017NewDelhi âè °â (ÇUæò.) àØæ× ¥»ýßæÜ

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Infurtherancetoourearliercommunications,wearepleasedtosharethefollowinginitiativestakenbytheInstituteduringthemonthofJune,2017:

1. Meeting with Dignitaries Taking forward our pursuit for exploring opportunities

for the profession and also for joint participation inflagship government initiatives, the Institute met thefollowingdignitaries:

• Shri R. Romawia, Cabinet Minister for Higher andTechnicalEducation,Mizoram.

• ShriK.K.Jalan,Secretary,MinistryofMicro,SmallandMediumEnterprises.

• Dr. Madhukar Gupta, Additional Secretary,DepartmentofPublicEnterprises.

• Professor A Damodaran, Vice Chancellor, ShriVenkateshwaraUniversity,Tirupati.

2. 18th National Conference of Practicing Company Secretaries

As you are aware that National Conference of thePracticing Company Secretaries is one of the megaannualcongregationsofthemembersoftheInstitutetobuild capacity of its members through an annualsymposium conducted on the cutting edge andcontemporary trends in the related fieldof knowledgeandpractice.Thisyear, the18thNationalConferenceof Practicing Company Secretaries wasmagnificentlyinauguratedwith thegraceful presenceofMr. JusticeDineshMaheshwari,Hon’bleChiefJustice,HighCourtofMeghalayaasaChiefGuestof theevent,atStateConvention Centre, Shillong, Meghalaya during June24-25, 2017. This two days conference witnessedsuccessful deliberations on the integral role of theprofessionals in Enterprising India aligning their roleand contributions towards smoothly achieving thevision‘NewAgeIndia’.

3. PCS Day, 2017 With a view to celebrate the historic day for the

professionofCompanySecretariesforpavingthewaytowards real admiration, recognition and credit ofprofessionalexcellenceincomplianceandgovernance,the Institute celebrated PCS Day on June 15, 2017throughoutthecountry,byorganizingvariousinteractivemeets,lectures,learningprogramsdeliberatingtowardsawareness on the existing recognition for PCS alongwiththeemergingareasofpractice.It isindeedworthto note that members PAN India participated in theeventwithpronouncedzeal.

4. International Yoga Day “Yoga isaJourneyofSelf;ThroughSelf,ToSelf”. In

furtherancetotheInstitutes’effortinkeepingpacewiththeflagship initiativesoftheGovernment,theInstitutecelebrated 3rd International Yoga Day on June 21,

2017byorganizingvariousyogasessionsPANIndia.

5. World Environment Day Tobuildtheindulgenceofthemembers,studentsand

otherstakeholderson “ConnectingwithNature”andto urge them to get outdoors and into nature, toappreciate its beauty and to think about how we are partofnatureandhowintimatelywedependonit,theInstitutecelebratedWorldEnvironmentDayonJune5,2017.Amessagefromthedeskof thePresident,ICSI addressing members and students has beenissued in bidding them to take a pledge to plant atleastonesaplingandnurtureit.

6. International Company Secretaries Olympiad

In continuation to the successful conduct and accomplishment of the 1st International Company Secretaries Olympiad, the Institute has announcedthe2ndInternationalCompanySecretariesOlympiadfor Academic Year 2017-2018, scheduled to beconducted on January 23 & January 30, 2018respectively. We are contended that the students whileregisteringthehighestparticipation,wouldavailthisuniqueopportunityforenhancingtheirreasoningandanalyticalskillsalongwithwinningattractiveprizeand awards.

Formoredetails,kindlyvisitathttp://www.csolympiad.infoorcallat011-33132333/66204999

7. ICSI GST App With a view to enable users to get latest news,

articles,regulationsandvariouspublicationsonGSTreleasedbyICSI,theInstitutehaslaunchedanICSIGSTAppforpublicatlarge.AneventlisttabwillkeeptheusersupdatedabouttheeventsonGSTorganisedbyICSIacrossIndia.DiscussionForum,afeatureintheAppwillbeupdatedsoonwheretheuserswillbeable to discuss their queries relating to GST withexperts of the Institute of Company Secretaries ofIndia. The App is presently available on androidplatformandcanbedownloadedfromPlayStore.

8. GST Point In furtherance to the Institute’s various initiatives in

ensuringtheeffectiveimplementationofGSTthrougheducatingandapprisingthepublicatlargeaboutthediversefactsandfacetsofGoodsandServicesTax(GST), another feather has been added to theInstitutes’capwiththelaunchofGSTPoint.

ThisGSTPointwouldserveasafacilitatingplatformtoresolvethequeries,inquiriesandchallengesfacedby consumers, manufacturers, traders, MSMEs,professionals public at large, etc. in understanding,implementingandapplyingtheprovisionsoftheLawonGoodsandServicesTax.

RECENT INITIATIVES TAKEN BY ICSI

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Goods and Services Tax Withanobjective toequip theprofessionalswith the

skills and develop competency in the area of GST,InstitutejoinedhandswithNationalInstituteofFinancialManagement (NIFM), Faridabad to offer an OnlineCertificatecourseinGSTforitsmembers.Thecourseis aimed at giving the comprehensive insight aboutprinciplesofGSTaswellasothernuancesofthenewindirecttaxregime.Itencouragesthecandidatetogainanunderstandingabout relevancyofGST inclusivelyas well as ensures their preparedness towards the challenges ahead. Interested members may registerforthiscourseonGSTonInstitute’swebsiteatwww.icsi.edu.

10. ICSI Task Force on Audit/Due Diligence/Compliance of SEBI Laws

WithanobjectivetoensurecomprehensivecheckandbalancesofcompliancesunderSEBI law,periodicallywith the duly supported observations on compliance levelandthereasonsfor lapses, ifanyalongwiththeactionplantopreventrecurrenceoflapses,theInstituteconstituted an Expert Task Force on Audit/ DueDiligence/ComplianceofSEBILaws.ThisTaskForceconsistsoftheeminentexpertsintherelatedfield.

11. Model Governance Code for Meetings of Gram Panchayat Asyouareawarethatwhenthegovernanceisplaying

a prominent role to settle down the state of most acclaimed rights and duties for all in an equitablesphere with equality, on the same end, Institute isglobally known being a pioneer in setting down thestandardsofgovernanceallthroughthecountryateachandevery tierofgovernance. Inpursuanceof this, tostrengthentheperspectiveofgovernanceatthegrassrootlevelofvillagepanchayats,theInstituteiscomingup with a “Model Governance Code for Meetings ofGramPanchayats” which seeks to prescribe a set ofprinciples for convening and conducting Meetings ofGramPanchayatsandmattersrelatedthereto.Withaview tomake thematparwith the levelofexcellenceand brilliance, comments and suggestions from themembers,professionalsandrelatedstakeholdersweredulysolicitedlatestbyJune30,2017.

12. International Corporate Governance Code

Our Institute is acclaimed for promotingexcellence inCorporateGovernance through its variouseffortsandmeasures being taken for the advancement of thegovernance in corporateworld, alsomarks theglobalpresence of its effective and efficient work to set down thestandardsofcorporategovernanceatparwiththecontemporary world. In pursuance to our professional excellence in governance, the Institute initiated toconceptualize theInternationalCorporateGovernanceCode for the first time in the world when no one has

everthoughtofhavingauniversallyacceptedCorporateGovernancenorms.Inordertosetthiscode,aworkofdistinctionandmerit,theInstituteinvitesthesuggestionsfrom its members and related stakeholders latest by August16,2017.

13. Revised Criterion for Empanelment of Quality Reviewers The Ministry of Corporate Affairs, has constituted a

Quality Review Board of the Institute to makerecommendationswithregardtothequalityofservicesprovidedbythemembersoftheInstitute;toreviewthequality of services provided by the members of theInstituteincludingsecretarialservices;andtoguidethemembers of the Institute to improve the quality ofservices and adherence with various statutory and other regulatory requirements. In continuation to this,revisedeligibilitycriteriaisbeingformedfortheQualityReviewers. Therefore, members fulfilling the revisedcriteria,andinterestedtojoinasQualityReviewers,arerequestedtoapplyforbeingempaneledwiththeQualityReviewBoardoftheInstitute.

14. ICSI-Gennext Counsel Congress and Awards, 2017 TheInstitutejoinedhandsasaSupportingPartnerwith

Legal Era in organising the 6th Edition of GennextCounselCongress,2017,atwodayconferenceonthethemeof ‘CorporateGovernance in the21stCentury’held on June23-24, 2017atMumbai.President ICSI(Dr.)ShyamAgrawalrepresentedtheInstitutethroughhis address in the Opening Plenary, graced by ShriArjunRamMeghwal,Hon’bleUnionMinister of StateforFinanceandCorporateAffairsasaChiefGuestoftheEvent.

15. 6th National Summit on Mergers and Acquisitions WithaviewtomaketheIndianM&Aecosystemmore

conducive and robust, Institute associated withASSOCHAM as an Institutional partner in organizingthe6thNationalSummitonMergersandAcquisitions“Issues and Challenges under present RegulatoryFramework”onJuly15,2017inNewDelhi.

16. Corporate Leadership Development Program

In today’s fast paced competitive workplaceenvironment,timeandresourcesareatapremiumforeveryone,especiallythosewhowanttospearheadtheircareers while being engaged in leading-edgeprofessions. Henceforth, the Institute is proposing toinitiateaCorporateLeadershipDevelopmentProgramto create a comprehensive, streamlined, skill basedfacilitative training experience which would preparemembers to enhance their career opportunities and vigortoentailtheopeningsinorganizations.

This Corporate Leadership Development Programwouldbethreemonthscompulsoryresidentialtrainingprogram for the professional programme pass outstudentsbeforegetting theirmembership. In the first


phase the Institute is launching 45 days residentialCorporate Leadership Development program on pilotbasisstartingfromAugust1,2017.

Theprogramiswelldesignedwithseekinginputsfromexpert faculties, feedback from students and advicefromtheexperttrainingfacilitationcommitteecomprisingofindustryexpertsandseniormembers.Theparticipantssuccessfullycompletingtheprogramwillbeawardeda“CertificateofParticipation”intheCorporateLeadershipDevelopment Program which will include MSOPcertification to make them eligible for applying ACSmembership.

17. My ICSI Virtual Platform Inordertocreateacomprehensivedigitalplatformfor

themembers,studentsandotherstakeholders,whereinthe varied services and facilities of the Institute could be availedwitheaseandefficacy, theInstitutewitnessedthelaunchofMYICSIVirtualPlatformthroughgracioushands of Justice Dinesh Maheshwari, Hon’ble ChiefJustice,HighCourtofMeghalayaandCS(Dr.)ShyamAgarwal,President,ICSIonJune24,2017.Alongwithproviding a one stop solution for all the services andfacilitiesoftheInstitute,thevirtualplatformalsoaimstoencourage the hassle-free interface among thestudents,membersandrelatedstakeholders.

18. Student Month With a view to provide a platform for the students to

register their all-round development and to enhancetheir professional interface – inter as well as intracommune,theInstituteiscelebratingJuly,2017asthe“Student Month”. Various activities for the studentshavebeenplannedduring themonthofJuly2017onPANIndiabasisthroughRegionalOfficesandChaptersof the Institute.

Along with organizing the events based on the coreactivities pertaining to the profession, the Institute isalso taking up relevant social issues to inculcatecollectivevaluesintheprosperingprofessionals,whichincludePlantationofTrees,BloodDonationCamponDoctor’s day, Swachh Bharat Abhiyan, DeclamationCompetitiononWorldNatureConservationDay,EssayWriting Competition on Kargil Victory Day. It is anopportunity for the students to participate in these programmesandcompetitionsasthesameshallgroomthemindevelopingtheiroverallpersonality.

To further strengthen the objective and vibrantawarenessfortheStudentMonth,adedicatedwebpagehas also been exclusively developed for the StudentMonth containing the exhaustive details of relatedactivities,whichwouldbeupdatedondaytodaybasis.Studentscanvisit thewebpageon thewebsiteof theInstitute at www.icsi.edu.

19. Study Centre Scheme Asyouawarethat theInstitutehas initiatedtheStudy

CentreSchemewithanobjectivetobreakthedistancebarrier for students belonging to cities/ locations in

which the representative offices of the Institute are not in existence. Under that scheme, so far, 43 StudyCenters have been established in collaboration with reputedcollegesindiverselocations.

InthemonthofJune2017,thefollowingstudycentershave been established.

• IsmailsahebMullaLawCollege,KarmaveerSamadhiParisar,Satara,Maharashtra.

• Janata ShikshanMandal’s Sau. Janakibai DhondoKunte Commerce College (JSM College), Alibagh,RaigadDistrict,Maharastra.

• Pachhunga University College, College Veng,Aizwal,Mizoram.

20. ICSI Signature Award Scheme Asyouareaware that inJanuary,2016, Institutehas

initiated ICSI Signature Award Scheme, under whichtop rank holders in B.Com. Final Examinations ofreputeduniversitiesandalsospecialisedprogrammes/papersofIITs/IIMsareawardedaGoldMedalandaCertificate.

Infurtherancetovariouscertificatesandawardssofar,in the recent months, Two (2) more MOUs on ICSISignatureAwardhavebeensignedwith the followingUniversities

1.UniversityofKalyani,WestBengal2. SriDevSumanUttarakhandUniversity,Uttarakhand

21. Fees Waiver Scheme for Students of State of Jammu & Kashmir and North-Eastern States

As you are aware that the Institute has recentlylaunchedaFeeWaiverSchemeforstudentsofJammu&KashmirandNorthEasternStatesofIndiatoprovidean opportunity to the youth of these States to come to the mainstream. The fee waiver scheme includes waiving theFee for the respective students tillMarch31,2018.Inpursuancetothisinitiative,itisgratifyingto note that such humble contribution of the Institute towardsnationbuildinghasbeenacknowledgedbytheGovernmentofrespectiveStateswhichwasdulyvisibleduringtheInstitute’sinteractionwithsomeoftheChiefMinisters, Education Ministers and Secretary(Education) of such States. The students from thoseStates have already started registering for the CScoursealongwiththebenefitoftheScheme.

22. Development of IT Services AsyouareawarethatInstituteisaheadinservingthe

interest of its stakeholders in the most opportune,advanced and simplest way, and therefore, time andagain Institute keeps launching newly fangled ITservicestoensurethequickestandeasiestaccesstothe Institute’s initiative for itsstakeholders.Continuingwith the advancement of the previousmonths, in themonth of June, 2017, Institute has come upwith thefollowing advancement in its Information technology

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• LaunchofChildPortalforFeeWaiverScheme• RevampofCreditHourModuleforNewBlockYear• LaunchofQuestEAssistWebApplication• LaunchofeMSOP• LaunchofMockTestWebApplicationforICSI-IPA• New MPLS Link Implementation at old and New

BuildingsofNoida• LaunchofeMagazineforCharteredSecretary• Launch of Child Portal for International Facilitation

Centre• LaunchofChildPortalforInternationalProspective• Upgradation of home page of ICSI website with

embedded sound.• RolloutoffollowingmodulesunderSMASH:• MyICSIVirtualPlatform(blog/discussionforum)• eSurveymodule• Chartered Secretary Subscription module (for

students)• Launch of Online form for admission to 45 days

residential Corporate Leadership DevelopmentProgramme(CLDP)

23. Convocation 2017 The Institute has adopted the Indian attire for

convocationandaccordingly, theexistingattire (gownand cap) has now been done away with. The first convocation under the new dress code has been successfullyheldon2ndJuly,2017atChennai.About200CompanySecretarieshailingfromsouthernregionwereconferredwiththeCertificateofMembership.

The dress code of ICSI Convocations is as under-

(i)Male members shall wear white/cream coloured‘kurta’andwhite/creamcoloured‘pyjama’withblack/brown sandals or shoes.

(ii) Female members shall wear white/cream coloured sarees with any colour border or white/cream coloured ‘kameej’ with white/cream coloured‘salwar’,white/cream coloured ‘dupatta’with black/brown shoes or sandals.

(iii)Thereshallnotbeanyheadgear(excludingSikhs). An ‘Angvastram’ ‘Stole/Uttariya’made of Khadi is

issued to the members permanently at the time of registration,whichtheyadornaroundtheirneckandshoulders.

24. Meetings of the Task Force on Diligence Report for Banks

TheTaskForceonDiligenceReportforBankshaditssecond meeting at Mumbai on June 20, 2017 anddeliberatedat lengthupon revamping the structureoftheDiligenceReportandfurthervalueadditiontherein.

25. Release of Publications(i)FAQsonCompaniesAct,2013

Revised edition of ‘Frequently Asked Questions orFAQs on the Companies Act, 2013” contains the

practical issues being faced by the professionals ashave been brought before the Institute in the form ofqueries throughdedicatede-mail/ through ICSIQuest– Assist (call -in platform) for the purpose. We arehopeful that this publication will be of practical value to not only practitioners and students but other stakeholders as well.

(ii)AGuidetoBoardEvaluation To facilitate the board performance evaluation, the

Institute has brought out this revised publication ‘AGuidetoBoardEvaluation’.Thispublicationdiscussesthe need and importance of board evaluation,international trends, legal framework in India,methodologies, steps involved and post-evaluationactivities.ItalsocontainstheParametersandSamplemodels for evaluation of Chairperson, ManagingDirector, Executive Director, Non-executive director,Independent Director, Board as whole and theCommittees and also provides guidance on how toconduct evaluation of Board. It also contains Current Trends in India with respect to board evaluation and analysisofAnnualReportsoftop100companieslistedonBombayStockExchange.

(iii)ReadyReckonerforPrivatecompanies Governanceisat thecoreofanybusinessenterprise.

Thecompanieswhicharecomplyingwiththeapplicableprovisionsaretermedaswellgovernedcompanies.

Withanumberofprovisionsbeingapplicabletoprivatecompaniesandanybreachthereofattractingpenalty,itbecomes imperative to bring out a comprehensivedocument which acts as ready reckoner and aids in makingregulatorysmoother,therebygivingthemuchneeded focus on Private companies. This ReadyReckoneraimstogiveaneasytofollowapproachvis-à-vis the procedures and compliances to be observed byaprivatecompanyundertheCompaniesAct,2013.TheReckonerhassomeofthechecklists,chapter-wisecompliancestobeobserved,andexemptionsavailableetc. to the private companies.

(iv)BeginnersGuideonGoodsandServicesTax ToprovideabasicunderstandingaboutGSTtopublic

at large and to make them aware of the variousimportantconceptsinGST.(v)HandbookforMSMEEntrepreneurs

It emphasizes on the role of MSMEs in the Nationalprogress. Insight into the registration process ofMSMEs, raising of finances, as well as complianceswith various regulatory obligations would helpMSMEEntrepreneurs in management and administration oftheir businesses in a sustainable manner.

(vi)TDSReadyReckoner To objectify capacity building of our members and

advance theirunderstanding ineffectivelydischargingtheir professional accountabilities under TDS, theInstitute has brought out the publication titled “ TDSReadyReckoner ”.ThisReadyReckoner containsallaspects of Tax Deduction at Source, the detailedscheme of TDS, various deductions under TDS ,

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procedural compliances as well as consequences fornon-compliance.

(vii)RecognitionstoCompanySecretaryinPractice ArraysofrecognitionsarebeingaccordedtoCompany

Secretaries under various central and state laws. In this context, the Institute brought out the publication titled‘Areas of Recognitions to Company Secretary inPracticeunderVariousLaws’ toapprisethemembersaboutthevastworldofrecognitionsinvariouslawsofthe country.

(viii)WestBengal-EaseofDoingBusiness forMSMESector

Intheentrepreneurialecosystemthejourneyofanentrepreneur begins from conceiving an idea to developing it into a projectproposal forstartingabusiness. This publication covers basics of Micro, SmallandMediumEnterprisesAct,EntrepreneurshipDevelopment and the MSME Sector in West Bengal,WestBengalMSMEPolicy2013-18,udyogAadhaar Memorandum, Corporatisation of MSME,and the Role of Company Secretaries in MSMESector.

(ix)AGuidetoEaseofDoingBusinessinNorthEastern Region

Inviewoftheattainmentoftheobjectiveof ‘BalancedRegionalGrowth’,itisimperativetocreateacongenialbusinessenvironmentinNorth-Easttherebyfacilitatinggrowth of business. In this backdrop, the book titled,“EaseofDoingBusiness”isanendeavortodelveintothe various key facets pertaining to the businessenvironmentinNorthEast.

(x)Serendipity ofNBFCs in India –TheSustainability

Dimension:AstudyofSelectedNBFCs

In light of the fact that NBFCs constitute an integralelementoftheIndianFinancialSystem,andthecrucialroletheyplayinnationbuildingandfinancialinclusionby complementing the banking sector in extendingcredittotheunbankedsegmentsofthepopulation,theresearchpapergeneratesparamountresearchinteresttocomprehendthesustainabilityofNBFCsinIndia.

(xi)Espousing Corporate Governance throughShareholdersWealthMaximisationTrajectory

With the rise of shareholders activism, wealthmaximization of shareholders have gained steam.Sinceequityshareholdersarerealownersofacompanyand embrace highest degree of risk, this researchpaper attempts to delve into wealth maximizationscenarioofselectedIndianbanking

companies.

26. Launching of e- Quest Assist ICSI As a knowledgebuilding initiative, ICSI has launched

‘ICSI Quest-eAssist’ at 18th National Conference ofPractisingCompanySecretariesatShillong,Meghalayaon 24-25 June 2017, which is an online platform formembers of ICSI where they can seek responses on thequeriesanddifficultiespertainingtotheCompaniesAct, 2013 and Rules and Notifications thereunder aswellasissuesrelatedtoe-filing.

It would initially focus on the queries relating to theCompanies Act, 2013 and Rules and Notificationsmade thereunder and subsequently it would beextendedtootherlawslikeSecuritieslaws,InsolvencyandBankruptcyandGSTetc.TheLinkforraisingthequeriesis:http://www.icsi.in/QAS/MemberLogin.aspx

Message

IntroductionofGSTisarevolutionarymoveandadeterminedeffortisbeingmadebytheICSItoprovidecorrectguidanceandaccurateinformationonvariousprovisionsrelatingtoimplementationandcomplianceunderthisnoveltaxregime.

Goods and Services Tax (GST) is a flawless taxation systemwhich would enhancetransparencyand timely compliances in the taxation structure. The successofGSTdependsuponitsproperimplementationandIbelieveiftheappreciationsamongpeopleareconquered,wecanmakeaquantumleaptowardsabrightfuture.

IcongratulateICSIforbringingoutaninformationalissueofCharteredSecretaryentirelydedicatedtoGST.

(Dr. Girish Ahuja)Chairman

ICSI-GSTCoreAdvisoryGroup


PD, PP&S/BM/19 June 19, 2017

Dear Professional Colleagues,

Greetings !

Sub. : ICSI Constituted Task Force on Audit/ Due Diligence/Compliance of SEBI Laws

Dear friends, ICSI have been actively engaged in promoting good corporate governance in the interest of society at large. ICSI members have been authorised by Govt., RBI, SEBI, IRDA and Stock Exchanges to issue various certifications and undertake audit of various market intermediaries. The Institute has constituted Financial Services Committee to look after financial services as dedicated area of focus and amongst others, to formulate views / suggestions on various financial services related matters. Based on the recommendations of Financial Services Committee, a need is felt that, SEBI law compliances need to be independently checked and verified, in detail, periodically with observations on compliance level with reasons for lapses, if any and action plan to prevent recurrence of lapses. In this direction, ICSI has constituted an Expert Task Force on Audit/ Due Diligence/Compliance of SEBI Laws. We are pleased to share with you the details of eminent experts of the Task Force, viz.:

While the Task Force is in process to study in detail proposition of an exhaustive compliance audit / due diligence mechanism on SEBI law applicable to listed entities and work out the modalities for such audit/diligence and lay down a reporting format, may we request you to send your suggestions/comments at [email protected] so that we can consolidate the suggestions and put up the same before Task Force for consideration. With thanks and regards, CS (Dr.) Shyam Agrawal CS Mahavir Lunawat President ICSI Central Council Member, ICSI &

Chairman, Financial Services Committee, ICSI

S/Shri Chairman/Member

J N Gupta, Former Executive Director, SEBI and Founder and Managing Director, Stakeholders Empowerment Services Private Limited

Chairman

B. Renganathan, Executive Vice president & Group Company Secretary, Edelweiss Financial Services Limited

Member

Janak C. Pandya, Practising Company Secretary Member Mahavir Lunawat, Council Member, ICSI and Chairman, Financial Services Committee, ICSI

Member and convener

Nehal Vora, Chief Regulatory Officer, BSE Limited Member Nilesh Shah, Practising Company Secretary Member Robert Pavrey, Robert Pavrey & Associates Member V. R. Narasimhan, Chief Regulations, National Stock Exchange of India Ltd. Member

AFellow Member of the Institute of CompanySecretariesofIndia,CS(Dr.)SarojHirawathasthedistinctive feather in her cap of being ‘The First

WomanChairperson’oftheJaipurChapterofICSIandcarvedher own niche to reach the zenith of success due to herdiligenceandtenacityforexcellence.SheisreveredasoneofthefirstladiestocommenceWholeTimePracticeofCompanySecretaries inaTier- II city i.e. Jaipur during theearly dayswhen people had very little knowledge of this profession.However, she never gave up and expanded horizons of theprofessionbyapprisingpeopleofhowaCompanySecretarycan facilitate them in their business and take care of compliancesandregulationsrequiredtorunabusiness.

Currently, she is in active practice as aCompanySecretaryhavingdistinctiveexperienceofandhasaflourishedpracticeandhas risen to the levelofa regulatorandasanexcellentcorporate personality. Her contribution to this profession isintroducing undeniable role of a Company Secretary in thebankingsectorparticularly.

HervitalareaofpracticeisCompaniesActtherebyrenderingsubstantialservicestothebanksforfurnishingSearchReports,registrationofcharges,advisingondraftingofvariouschargedocuments, acting as a scrutinizer for postal ballot processprovidingduediligencecertificatetobanks,secretarialauditof

listed companies etc. She is sought after faculty in theseminarsandstudycirclemeetingsandaregularspeakeratvarious Professional, Management & Educational bodies onvarious topics. She earned her Doctorate and also she hasmanypublicationstohercreditinnationaljournals.Sheisalsoactivememberofmanagementcommitteesofmanyrenownedinstitutes.Shefirmlyuttersthisquoteforherownself:

“Do not judge me by my successes, judge me by how many times I fell down and got back up again.” -

Nelson Mandela

In her own words: I can totally resonatewith the above quote as the ship ofmyprofessional life has ventured into the deep corners of the sea which were not tried and tested waters for me. But I came back on the surface every single time throughmy positive attitude,determination and hard work.Now I’m not afraid of challenges and unknown territories as Ihave learnta lot throughmyexperienceandI’mconfident thatI’lltakethestrideforwardandaccomplishanytaskgiventome.

Dawn of My JourneyIwasasmalltowngirlfromIslampur(WestBengal),whohadbigdreamsinherheartandworkedextremelyhardtopursuethoselargerthanlifeambitions.Idecidedtodefinesuccessonmyownterms,achieveitbymyownrulesandleadalifethatshallmakemeextremelyproud.Right frommychildhood, Ichallenged thestatus-quoandwasquite unorthodox in my approach. I went to a co-educationcollege,whichwasabigtaboointhosetimes.Abrightstudentwhoalwaysrankedfirstinacademics,bothinschoolandcollege.Oneoftherarefewgirlswhonotonlyparticipatedindebating,extemporary speech and sports but also aced them receivinggoldmedalsinallformats.Apartfromacademicsandextra-curricularactivities,Ihadkeeninterest in leadership roles and wanted to make an impactful differencetomycollegeandthestudentcommunityatlarge.Myfellowstudents sawandappreciated this zeal andelectedmeas the Secretary ofmy college. Iwas extremely proud ofmyachievementandensured that Ideliveron theexpectationsofmultiplestudentgroups.Needlesstosay,awomenSecretarywascompletelyunheardofatthattimeasitwasastronglymaledominatedsociety.I continued to pursue my interest in academic studies and I am quite grateful to my parents who always supported mewhile travelling beyond the boundaries of my hometown forrequirementsofmyassignmentsandalsotocompletemypost-graduationandPh.D.Further,Ialwayshadaninclinationtowardsprofessionalstudies.IenrolledfortheCompanySecretaryshipcourseandqualifiedasaCompanySecretaryintheyear1996.

CS WOMENEMPOWERED AND EMPOWERING...!!!

n CS(DR.)SAROJHIRAWAT


Overcoming Thorny and Blistering TimesIt was all perfectly comfortable and rosy until then wherein I had performed notably better (both academically and professionally) thanwhatwasexpectedoutof‘awoman’ofthattime.However,lifeneverremainsthesame.Theonlyconstantis‘change’.Itisnotabedofrosesanddefinitelynotsoforawomanlookingtomake her mark in a male dominated professional world.Lifestartedshowing its toughtimes.WhenIstartedmycareerin thecorporateworldasaCompanySecretary, Iapproachedvarious corporate houses and banks with an aspiration to provide them professional services.However, tomy bewilderment, atthat time, thecorporateandbankswerenot thatawareof thegamutofservicesthataprofessionalcalled‘CompanySecretary’could offer. Not only this, in a tier-II city not having scope forlargecorporatehousesatthattime,theprofilewasdeemedtobeakin to the word “Secretary”whojustcanbeahelpinghandinoddjobssuchastypingorstenography.Further,theirgesturesclearly reflected that they did not considerCS profession in agreatlight,definitelynotsoasanoble,knowledgeableandvalueaddingprofession.Onthefaceofit,thisscenariomightlooklikealosingpropositionforwomenintendingtostartherpracticeinasmallcity,butIfirmlybelievedandbelieveeventodaythatevery cloud has a silver lining. So, instead of giving up, I stayedmotivatedbythischallengeanddesiredofcreating‘anoasisinanaridzone’.Itookthisasanopportunitytoeducatethemarketabout the professional services that I as a CS could provide alongwith thestrategicbenefits thatsuchexpertisewouldaddtotheirbusinesses.Itistruethatpositivemindfindsopportunityineverythingandanegativemindfindsfaultsineverything.Likethey say - Hardships often prepare ordinary people for an extraordinary destiny.

Setting the Agenda as a Practicing Company SecretaryWhile continuing the constant brand building and educatingpeopleaboutthestrongvaluethataCScanbringtothetable,IalsodecidedtodevelopanichemarketformyselfandupcomingCS professionals and decided my approach. I approached various banks (bothpublic andprivate) andheldmeetingswith senior

professionalsofthebankingindustryinRajasthan.Iintroduced‘Search Reports’ and ‘Charge Registration’ by educating andconvincingbankersoftheirimportanceintheloansandadvancesparlanceandtheconsequentrisksthatabankmightbeexposedto if they are not done properly. The results were convincing,thebankers not only bought the ideabutwerealsoextremelyappreciative of how my professional services as a CS may help them to reduce riskandmake their loans sanctioningprocessmore robust.Inthisway,I became the change agent who recognized the opportunity for change, identified the best approach to drive that and made that change happen on ground. Havingsaid that, theroadtosuccesswasstillnot thatstraightandsimple inapatriarchicsociety. Itwasdifficult forpeopletotrust in the competencies of a female professional and most counterparts initially looked atmewith skepticism.However, I am not the kind of person who would take no for an answer. Despite initial repudiation, I continued to have faith in mycapabilities and backed that up with the power of my professional knowledgeandstrongbusinessacumen.Myzeal to learnnewthingsandconstantlyupdatemyknowledgehasalwayskeptmeon my toes.Iputinlonghours(sometimesuptoweehoursinthenightonmultipleoccasions) tobuildmypractice fromscratch.Runningconstantlyfromonebanktoanotherforpitchingclientswithmyservicesaswellasbuildingastrongclientbasebyrenderinghighquality services.Thehours translated intoweeks,monthsandyearsandgaverise toS.Hirawat&Associatesasawell-bredcompanysecretary’sfirm.Ourpersistence,diligenceandwillingness togo theextramilehelpedusfulfillourdreams.Someonehastrulysaid–“A dream does not become reality through magic. It takes sweat, resoluteness, vision and hard work.”

On the RadarToday, S. Hirawat & Associates, has reached commendableheightsandcanboastofastrongfootholdinNorthIndia.Whileat the same time it commands reasonable amount of work from

CS WOMEN: EMPOWERED AND EMPOWERING...!!!

n CS(DR.)SAROJHIRAWATADDRESSINGATASEMINAR


thefinancialcapitalofthiscountry,Mumbai.

Ifirmlybelievethat-“If you are different, you will stand out.”Thezealforlearningshouldalwaysbethere.Inthisdynamicera,Iammoreinspiredwithmultifacetedworkskillsthaneverbefore,butIamstilllearning.

Winning Laurels: First Woman President of ICSI Jaipur ChapterAkeyaccomplishment in themidstofall thishustlingwasmyelectionas‘TheFirstWomanPresident”oftheJaipurChapterofICSI.Iwashumbledbythisachievementandextremelyproudtohave received the vote and reverence of so many of my peers.

My Rule BookPeople’s memory is short-lived. One should be a doer and not just a thinker. We should work with utmost sincerity and devotionsothatwecanleavelonglastingimprintsonaperson’smindandnotjustcreateatransitoryimpression.Ifweworkwithpassionandenjoywhatwearepursuing,wewillfindapurposein life.Mymantratobecalm,composedandcontentinmylifeis-Never let success or the impressions of it get to your head. Find solutions to the challenges that life throws your way and always strive to be a better version of your own self.

AsI lookbackatmy journey, Ifirmlybelieve that therearenoshortcutsorquickfixestosuccess.Youhavetoworkextremelyhard, face challenging circumstances on each step and havethe never say die attitude to continue working towards theaccomplishmentofyourgoals.

I consider my initial struggles as great teachers, which havemademe strong and played ameaningful part in shaping theprofessional that I am today.

As someone truly said, “A bird sitting on a tree is never afraid of the branch breaking because its trust is not on the branch, but on its own wings.” So,alwayshave faith inyourself,continuerefiningyourskillsandalwaysbeinthepursuit

ofexcellence.Rapid Fire Round with ICSI

Dr. Harpreet: What motivated you to become a Company Secretary Professional?CS (Dr.) Saroj Hirawat:After completingmydoctoral degree,severalgoldenopportunitieswereawaitingme toaddvalue tomyacademiccareer,Iexploredtheseopportunities,however,Ifoundthatmanyotherwomenwerealreadyinthesamequeue.Sincemychildhooditself,Iwantedtododifferentthingsinlifeand stand out in the crowd. When I heard about CS profession and found that there was hardly any Woman Company Secretary in thestateofRajasthan. Iam thekindofpersonwhoalwayswanted to step into some innovative field and pick up line ofactionwhichhasnot been takenbyanyoneelse.At that timeI foresighted that this profession will become an eminent andbuoyantprofessioninthenearfutureandwouldfulfilmydreamofstandingoutasanexcellentcorporatefacilitator.

Dr. Harpreet: What is your advice to young women members?CS (Dr.) Saroj Hirawat: • First rule is to work extremely hard and go the extra mile: Alwaysrememberthattherearenoshortcutstosuccessand

nothinginthisworldcomeseasily.Inordertobesuccessful,you need towork extremely hard andwalk that extramilewhere your competitors stop.

• Believe in yourself:Alwayshavefaithinyourselfandyourcapabilities. Ups and downs are a part and parcel of life.Youshouldalwayskeepchallengingyourselfaswitheverychallengecomesanequalopportunityofself-developmentsandthefulfilmentofhavingoutdoneyourownself.Youmaycommitmistakesatanearlierstageofyourcareerbutyoushould endeavour to learn from your mistakes. They are the bestteachers.Continuetobesincere,committedandtruetoyourgoals.

• Always have a hunger for learning and keep yourselfupdated on the latest amendments in company law and other professional matters.

• Communicationmaybewrittenorvocal.Itmustbeimpressive.• We expect our young fraternity to come forward with

innovative suggestions and ideas for improvement andfurther empowerment of our profession.

• Young friends, it’s your choice. Either you can followsomeoneelse’sscriptoryouwriteyourownstory.

Dr. Harpreet: What is the definition of a ‘woman’ in your words?CS (Dr.) Saroj Hirawat:Inmyopinion,thewordwomanstandsfor:W- WillingnesstoachievegoalsO- OptimisticineveryphaseoflifeM- MagnificentineveryfieldA- ActiveinbothpersonalandprofessionallifeN- NourishingeveryonearoundherSomeone has truly said-“You educate a man; you educate only that one man. But if you educate a woman; you educate an entire generation.” Women are the incarnation of righteousness,tranquillityandforbearance.“A woman is like a tea bag, you cannot tell how strong she is until you put her in hot water.”Theyarecapableenoughto confront every adversity in life. They are adept at makingcircumstancesfavourableagainstallodds.Theyaretheepitomeofdrudgeryandprofoundbenignity.


n FELICITATIONOFCS(DR.)SAROJHIRAWATDURINGICSISEMINARONINTERNATIONALWOMEN’SDAY2017


Instances can be taken up from every domain of the economy wherein women are chartering unknown territories fearlessly.Be it ineducation, investing, fashion,fitnessandanythingandeverythingunder thesun– theyareproceedingwithgumptionand unbridled enthusiasm to change the world around them.They endeavour to make a difference with their ideas, seeksolutionsthathaveneverbeensoughtbefore.Someexamplesthat we can look up to:

Shikha Sharma,MD&CEO,AxisBankChanda Kocchar, MD&CEO,ICICIBankIndra Nooyi, CEO,PepsiCo.Eachofthemisscriptingherownstoryintoday’snewageworld.

Dr. Harpreet: How should women strike a work and family balance?CS (Dr.) Saroj Hirawat:Strikingabalancebetweenyourworkandpersonallifeisnotaneasytaskforaworkingwoman.Shehastoconstantlyjugglebetweenmeetingprofessionaldeadlines,completing household chores, raising her kids and the list isendless.However, today’s professional women are multi-tasking andconstantlywearingmultiplehatsonanygiven timeof theday.They aspire to not only be looked up to by their children but also beequallyrespectedbytheirprofessionalcolleaguesandclients.Takingmypersonalexample,strikingabalancebetweenfamilyandworklifewasquitedifficultformeintheinitialstageofmycareer as my child was only two years old. In order to establish andexpandmyprofessionalnetwork,Ihadtotraveltonumerouscitiesand takemychildalongwithme.During theday time, IusedtovisitbanksandCAsformyofficework.Intheevening,Iusedtospendqualitytimewithmychild.

Dr. Harpreet: Do you think that women bring their ‘heart’ along with their ‘mind’ in the boardrooms?CS (Dr.) Saroj Hirawat:Ifirmlyagreewiththisasarealleaderneeds tohaveboth thesequalities.Oneof theheadand theother of the heart - Sensibility and Sensitivity. Intellect has its uniqueplace,andsodoouremotions.We need that softness of a female in every leader, and thestrengthandperseveranceofamaleineverywoman.Thenonlyyou can lead any organization successfully. Even I managedmywork,myclients,myemployeeswithmyheart, taking intoconsideration their problems and at the same time managingthemeffectivelybytakingfirmdecisionstopursuemybusinessgoals.

Dr.Harpreet:Whatshouldbe the importanceofgoals inone’slife?CS (Dr.) Saroj Hirawat: Goals are something that transforminsurmountable mountains into walkable hills. They propel us to move forward in our lives. They are the constant reminder of what we need to accomplish. They control our lives and create accountability.Inaway,theyareoxygentoourdreams.I had set my goal to make an impactful difference to the CSprofession and establish women on the professional radar. I representedthemandgotelectedasthefirstwomanpresidentofICSIJaipurchapter.

Dr. Harpreet: As per you, what are the five most important insights into a CS role?CS (Dr.) Saroj Hirawat: In today’s changing business

environment,aCompanySecretaryisexpectedtoperformmoreresponsibilities than ever before:1) Company Secretaries are an important link between the

boardofanorganizationandthevariousotherstakeholders.2) They should be well versed with the latest amendments with

respecttotheCompaniesAct,SEBI,FEMA,LabourLaws,Taxes,etc.

3) A Company Secretary is one of the most importantprofessionals in an organization as the importance ofcorporate governance is increasing day by day. Theresponsibility for developing and implementing goodcorporategovernancelieswiththeCS.

4) Theyhavetocommunicatewithvariousdepartments,banks,etc.Hence they should have the requisite knowledgeandstrongcommunicationskillstoconveythemattereffectively.

5) They should develop these qualities and should provideactionablesolutionsonbusinessissueswithefficientservicedelivery.

Dr. Harpreet: What is your Formula for Success?CS (Dr.) Saroj Hirawat: Hard-work, Conviction, Self-belief,Professionaldevelopmentofothersandself,valuefortimeandthe never say die attitude. These values drive and sustain me.

Dr. Harpreet: What steps ICSI should take to emerge as a global leader in Corporate Governance?CS (Dr.) Saroj Hirawat: Business environment over the world has undergone sea changes. In an ever changing hypercompetitive business environment, there are lot of challengesbeforecorporatepractitioner.ItisimportantforCSprofessionals,not only overcome the challenges but also be able to take apledge to work with excellence, high level of confidence andparticipationincorporateactivitywerequirecontinuousupdation,acquire different skills and alertness of eagle’s eye. We arewitnessinganerawhereinnovationisthekey.Fortunately,ourpresentPresidentCS(Dr.)ShyamAgrawalishavingavisionandprofessional proficiency has proved his exceptional leadershipqualities in taking up the CS profession on a sky-scrapingpedestalofgovernanceglobally.

EpilogueCS Hirawat is really a motivating personality, full of zeal and‘neversaydie’spirit.Herstory indeedrevealed thatplaceandgendercanneverbearestrictiontothosewhowanttoexploretheunexplored.Yes,sheoptedfora‘Practice’andtocreatetheopportunities as a professional at a place where the sphere of professionwasnotknownthen,andtoday,shestandstallandis proudof being aCompanySecretary.And ICSI is proudofwoman CS like her.Letussaluteandcelebrateourspiritofwomanhood365daysa year.

Happyreading....!!

Dr. Harpreet Raman BahlOfficeofthePresident,[email protected]




benefit.ThisisanewconceptbeingintroducedforthefirsttimeinanytaxlawinIndiaandismandatoryinnature.CentralGovernmentshallconstituteanAnti-ProfiteeringAuthorityunderAnti-ProfiteeringRules,2017whowillhavefarreachingpowersincludinglevyofpenalty,recoveryofbenefitnotpassedandevencancellationofregistration.However,suchaprovisioncomeswitha two years sunset clause. It is desirable that anti-profiteering provision isenforcedinrarecasesasanexception,ratherthanasaruleandshouldnotbecomeahindranceinfreebusinessenvironmentwhereeverythinggoesonin a reasonable manner.

Analysis of Registration Provisions and Transitional Provisions Under GSTDivesh Goyal

O neofthebigconcernsofalmostallthetaxpayersthesedaysiswhetherthey are required to get registration in aState orNot. TheGST lawprovidesforregistrationrequirementineachStatefromwherethetaxpayerisprovidingthetaxablesupply.So,theplacefromwherethetaxablesupplyismade,isveryimportanttodetermine.Withthecompilationofprovisionsoflaw,wewillseehowreadyweare in termsofregistrationunderGST.Thetransitionalphaseisgoingtobeverychallengingforbothexistingtaxpayersaswellasunregisteredtaxpayers.Thelawprovidesfortheprovisionswhichdealwiththechallenges(butnotallthechallenges).Itislatebuthightimetodiscuss such provisions so as to overcome the issues.

Composition Levy Under GST- A Boon or BaneKuldeep Bengani

G STislikelytochangethewayIndiadoesbusiness.GoodsandServicesTaxLawhasintroducedanewsystemofIndirecttaxinIndiaandisgoingtobring innewbusinesscompliancesystemwhichappears tobecomplexand burdensome for many startups and Small and Medium Enterprises(SMEs). Small supplier may struggle to comply with regular compliancesunder GST. To provide relief to small businesses, the government hasintroducedCompositionSchemeunderGST.UndercompositionschemeanytaxpayerwhoseturnoverisbelowRs75lakhscanchoosetogetregisteredasa taxpayerundercompositionschemeandpay taxesonhissuppliesata nominal rate of 1%, 2%and 5% (CGST+ IGST) of aggregate turnover.However, he shall not be eligible to issue a tax invoice and cannot utilizethecreditofinputtaxpaidasaresultthereof.Section10ofCGSTAct,readwith composition rules deals with composition scheme law and procedures. Composition scheme has its own pros and cons and should be opted only after careful feasibility analysis.

Reverse Charge Mechanism – Major Change Under GSTManish Jain

G STisallsettobeimplementedfrom01.07.2017anditwillchangetheway of doing business. The most important and concerned topic inGSTAct is “ReverseChargeMechanism” (RCM).ReverseChargemeansthe liability to pay tax by the recipient of goods/services instead of thesupplier.TheGovernmentwantstocollecttaxontransactionsofanytaxablegoods/services.SotheprovisionofRCMhasbeenintroducedinGST.Theconcept of RCM is not a new one; it is already applicable in services taxlawonprescribedservices.ButRCMunderGSTisonestepaheadanditscoverage is alsomuchwider thanunderServiceTax.UnderGSTRCM isapplicabletobothgoodsandservices.RCMwillhelpGovernmenttocollecttaxonevery transactionof taxablegoods/servicesunderGSTwhether thesupplier is registered or not. The present article discusses all the relevantprovisions, challenges and opportunities for professionals under ReverseChargeMechanism(RCM).

Impact of GST on Tourism and Hospitality SectorNiharika Gupta

G SThasbeenoneofthemostawaitedtaxreformsforIndia.HighGSTratesonhospitalitymayprovetobedetrimentalforthesector.ThehighincidenceoftaxesmaymakeIndialesscompetitivewhenitcomestotourism

GST on Financial TransactionsVinod Kothari

F inancial transactions are catalysts for economic activity and are,globally,exemptfromgoodsandservicestaxes.However,GSTinIndia

grantsanarrowexemptiontolendingtransaction–totheextentofinterestonloansandadvances.Consequently,allotherchargesonlendingtransactionsare chargeable toGST. Yet, registration requirements are based on “totalturnover”,whichincludesexemptincomestoo–therefore,lendersmayhavetoseekregistrationsinStateswheretheyhavefixedestablishment.Inasituationofpartlyexemptsuppliesandpartlytaxablesupplies,financialservicesfirmsmayhavetomakeatrickychoiceofoptionforthesegment-wisecomputationofinputtaxesaspersection17(2)oftheCGSTAct,oroptfora50%set-offaspersection17(4),orseekregistrationofthetaxablesegmentasabusinessvertical.Thechoicehasmultiplerepercussions.Anintriguingpartofthetaxonfinancialservices is taxonsaleof repossessedgoods.Whileaspecificprovisionismadeforrepossessionsfromunregisteredsuppliers,thereisnospecific provision for repossession from registered suppliers, even thoughmostofthemajorNPAsinthecountryinvolveregisteredsuppliers.Thismayresultintocascadingtax,asthevalueofrepossessedgoodsmayincludethetaxoriginallypaid.Sincethedefaultingborrowermayhaveavailedcreditofsuchtax,lenderswillhavetoevolveafewpracticeofkeepingtheirloan-to-valueratioslimitedtothebasicpriceofgoods.Additionally,thetransactionsdealinginreceivablesoffinancialassets–includingsecuritization,factoring,directassignmentsorsaleofnon-performingloans–willhavetobearinmindthe taxconsequences.Whilesaleof receivables itself isnot liable toGST,charges such as servicing fees,management fees, etc.will become liabletobetaxed,andthistaxmaybeasunkcostsincethevehiclesholdingthereceivables may not be able to pass the cost further.

Dis-Allowance of Input Tax Credit on Construction of Immoveable Property How Far Justiciable?Pradeep K Mittal

T hepresentarticlediscusseswhether“building”,“premises”,“structure”,“roads within the airport or factory”, would squarely fall within the

meaningof“plantandmachinery”andhence,shallbeentitledto“InputTaxCredit”notwithstandingthebarlaiddowninClauses(c)and(d)ofSub-Section(5)ofSection17CGSTAct.

Composition Scheme Under the Central Goods And Services Tax (CGST) LegislationT.N. Pandey

T heGSTenactments have come into force from themidnight of 30thJune, 2017 with great fanfare. However, lower and middle level

businessmenarejitteryaboutthecomplianceaspectsrequiredunderthenewregime.Fortheircare,theCGSTcontainsanoptionalcompositionscheme,which can be availed by them with lesser botherations. The scheme can be availedbypersonswithturnoveruptoRs.50lacs[ormaybeuptoRs.75lacs].Theratesoftaxarelowvaryingfrom0.5%to2.5%.Theschemeappliesonlyinregardtogoods–notservices.Allrelevantaspectsconcerningthelawandrulesregarding thecompositionschemehavebeendiscussed in thearticleonthesubject.

Anti Profiteering Measures in GST LawDr. Sanjiv Agarwal

T heGSTlawcontainsprovisiononanti-profiteeringmeasuressoastoensurethatbenefitsaccruingtobusinessesinGSTregimeduetolower

costandincreasedinputtaxcreditispassedontotheconsumers,tocontaininflationandalsocurbundueprofitadvantagewhichbusinessesmay take.Anti-profiteeringmeasures,ascontainedinsection171oftheCGSTAct,2017willhelpcheckpriceriseandputalegalobligationonbusinesstopassonthe

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as international tourists may skip the destination. The government shouldappreciatethatcountrieslikeMyanmar,Thailand,Singapore,Indonesiaandotherslevytaxesrangingfrom5to10percent.IndiacannotaffordtohavethesekindofcomplexandhighGST.Alowertaxrateforbudgethotelssectorwill ensure that the industry’s quality upgrade continues while deliveringstandardized accommodation to millions of middle-class-travellers. Peoplelikeconsolidationof taxesas it leads togreater transparencyandwill helpguestsandbuyerstounderstandtheoverallcosts.

GST and its impact on Salaried EmployeesGarima Garg

F liparoundanynewspaperorbusinessmagazineandnewsonGSTfindsithome.Itwouldn’tbeostentatioustoreferGoods&ServicesTaxas

theSanjeevanioftheIndianeconomy.GST,alsocoinedasGoodandSimpleTaxbytheHon’blePrimeMinisterduringtheGSTlaunchsessionisexpectedtoreformthewayofdoingbusiness.GSTisrelevantmoreforbusinessesandnotsomuchforsalariedpeople.Thepeopleearningsalarieswillcontinuetopayincometaxontheirsalaryanditwillcontinuetobedeductedfromtheirmonthlypay.GSTisanindirecttaxandassuchhasnothingtodowithincometaxorTDS.Havingsaidthat,GSTwillberelevantforsalariedpeopleasthisnewbuzzwordwillcontinuetoimpacteverycorneroftheirlife.GSTonalmostall theirexpenses-restaurants,movies,shopping,consulting,construction,virtuallyeverything.DependingontherateofGST,theexpenditureontheseproducts may rise or fall. The article discusses the areas of salary which will directly be impacted upon and others which will have impact indirectly as the expenditureofsalariedemployeesbeimpactedintheGSTregimedifferentlythan the previous scenario.

GST implications on : Works Contract & Construction SectorBhatt Bhadresh A.

I fthetaxclauseinWorkOrderisnotstructuredcorrectly,thecontractormayenduppayingmoretaxesthanthemarginstheymake.Thereare4

typesofconstructionrelatedtransactionsinGST-Workscontract,CompositeSupply,MixedSupplyandJobwork.EachoftheseisclearlydefinedinGSTLaw.Understandinginwhatcategoryatransactionfalls,helpsinstructuringthe tax clauses effectively. The Modal GST law has defined exemptedservices, situations where ITC is disallowed, place of supply in relation toworks Contract, tax effect on on-going works contracts and on periodicsupplies.Theimplicationsofincludingfreesuppliesaspartoftaxablevalueisdiscussedindetailwithanexampletoexplainthepracticalchallengesthata contractormight face and the need to revisit section 15(2)(b) needs foramendments.

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n LMJ 21:07:2017 When an ex-employee refuses to vacate thepremises,his familymemberscannotbeprosecutedunder section630oftheActaslongastheemployeeisalive.[SC]

n LW 48:07:2017 Administrative circular issued by SEBI is not anappealableorderundersection15T.[SC]

n LW 49:07:2017 CCI penalises Hyundi Motors for resale price

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• MembersAdmitted/Restored• CertificateofPracticeIssued/cancelled• LicentiateICSIAdmitted• Ethics&SustainabilityCorner• GSTCorner• CGCorner• Releasesat18thPCSConference• ICSIInitiativesunderGST

n Companies(AuditandAuditors)SecondAmendmentRules2017n ExemptionstoSection8CompaniesundertheCompanies

Act,2013n ExemptionstoPrivateCompaniesn ExemptionstoGovernmentCompaniesn ClarificationregardingtransmissionofSecuritiesby

OperationofLaw-Reg.n ClarificationregardingduedateoftransferofsharestoIEPF

Authorityn ClarificationtoEnhancedSupervisionCircularn ParticipationofCategoryIIIAlternativeInvestmentFunds(AIFs)

in the commodity derivatives marketn Continuous disclosures and compliances by issuers under

SEBI(IssueandListingofDebtSecuritiesbyMunicipalities)Regulations,2015

n InterestandDividendinformationreportingincaseofCustodialAccounts-Rule114G(1)(e)oftheIncomeTaxRules,1962

n Non-compliancewithcertainprovisionsofSEBI(IssueofCapitalandDisclosureRequirements)Regulations,2009(“ICDRRegulations”)

n RecordingofNonDisposalUndertaking(NDU)inthe DepositorySystem

n ComprehensiveReviewofMarginTradingFacilityn OptionsonCommodityFutures-ProductDesignandRisk

ManagementFrameworkn ComprehensiveguidelinesforInvestorProtectionFund,Investor

ServiceFundanditsrelatedmattersatNationalCommodityDerivativesExchanges

n OnlineRegistrationMechanismforMutualFundsn DisclosureRequirementsforIssuanceandListingofGreen DebtSecurities

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ICSI -CCGRT Invites Research Papers on National Company Law Tribunal (NCLT) Orders- Emergence of Law

ICSI – CCGRT ANNOUNCES Unique Critical Research Analysis of Indian Companies Act, 2013

maintenancethroughdiscountcontrolmechanismandissuesceaseand desist order.

n LW 50:07:2017Mereinvestmentscannotberegardedasleverageofdominantposition,particularlywhenOP-1itselfisnotengagedinbusiness of providing telecom services or any activities incidentalthereto.[CCI]

n LW 51:07:2017 The Court was clearly vested with the power to grantinterimmeasurespriortotheawardbecomingadeemeddecreeunderSection36oftheAct.[Del]

n LW 52:07:2017DelhiHighCourtrefusestoissueinjunctionagainstencashingbankguarantees.

n LW 53:07:2017When thepartnersand thosewhoclaim throughpartnersagreedtogetthedisputesettledbyarbitration,itisnotopenfor the appellants to contend that partnership being unregisteredpartnership,thedisputecannotbereferred.[SC]

n LW 54:07:2017Useoffacilitydoesnotamounttotechnicalservices,astechnicalservicesdenoteservicescateringtothespecialneedsofthepersonusingthemandnotafacilityprovidedtoall.[SC]

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CCI NATIONAL LEVEL ESSAY COMPETITION, 2017-18

The Competition Commission of India (CCI) is pleased to announce a National Level Essay Competition for students pursuing Under-Graduate courses – including students in first 3 years of an Integrated PG course including CA/CS/CMA (Category I) or Post-Graduate degrees (Category II) including PG Diploma/M.Phil./Ph.D./CA/CS/CMA/MBA.

TOPIC FOR THE ESSAY

Growth of Digital Economy – A Challenge for Competition Regulators

OR

Eight Years of Competition Law

Enforcement in India

Winners stand a chance to secure

attractive cash prizes.

Participants can submit their entries by e-mail to [email protected] latest by

31st October, 2017

duly forwarded by their respective educational institutions

For further details, please visit CCI’s website (http://www.cci.gov.in)

n GSTONFINANCIALTRANSACTIONSn DIS-ALLOWANCEOFINPUTTAxCREDITON CONSTRUCTIONOFIMMOVEABLEPROPERTYHOWFARJUSTICIABLE?n COMPOSITIONSCHEMEUNDERTHECENTRALGOODSANDSERVICESTAx(CGST)LEGISLATIONn ANTIPROFITEERINGMEASURESINGSTLAWn ANALYSISOFREGISTRATIONPROVISIONSANDTRANSITIONALPROVISIONSUNDERGSTn COMPOSITIONLEVYUNDERGST-ABOONORBANEn REVERSECHARGEMECHANISM–MAJORCHANGEUNDERGSTn IMPACTOFGSTONTOURISMANDHOSPITALITYSECTORn GSTANDITSIMPACTONSALARIEDEMPLOYEESn GSTIMPLICATIONSON:WORKSCONTRACT&CONSTRUCTIONSECTOR

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VinodKothari,FCSManagingPartnerVinodKothari&CompanyCompany [email protected]

GST on Financial TransactionsF inancial transactions are at the very center of economic activity as investment in

assets,goodsandproductiveactivityisfundedbyfinancialtransactions.Thesetransactionstakevariousforms–fromequity,toloans,toinvestmentinvarioustypesofsecurities.Besidesprimary financing transactions, therearenumeroussecondarymarket transactions– including trades insecurities,assignmentandsecuritizationof

loans,etc.The introduction of Goods and Services Tax (GST) is, admittedly, one of themostoutstanding tax reforms since Independence, and therefore, it is very important tounraveltheimplicationsofGSTonfinancialtransactions.ThisarticleislimitedtoGSTonbasicfinancialtransactionsexcludinginsurance,stockbrokingservices,etc.

GST ON LENDING TRANSACTIONSOneoftheprimaryfactsoneshouldnotewhileevaluatingtheapplicabilityofGSTisthenearly-all-pervasivenatureofthelevy.Thechargingsection[Sec9oftheCGSTAct]imposesthetaxonany“supply”.Exclusionsare itemslikenon-taxablesupplies[forexample,alcoholforhumanconsumption],orexemptsupplies,orsupplieswhicharezero-rated.Hence,thefocusshiftstotheambitoftheword“supply”,whichconsistsofall formsofsupplyofgoodsandservices[sec7(1)ofCGSTAct].Sincethewordisintrinsicallyconnectedwiththewords“goods”and“services”,oneneedstoexaminethemeaningofthoseterms.

“Goods”aredefinedinsec.2(52)toincludeanymovableproperty,otherthanmoneyand securities. “Services” are defined in sec. 2 (102) tomean “anything other thangoods,moneyandsecuritiesbutincludesactivitiesrelatingtotheuseofmoneyoritsconversionbycashorbyanyothermode,fromoneform,currencyordenomination,toanotherform,currencyordenominationforwhichaseparateconsiderationischarged.”

Meremoneyisexcludedfromboth“goods”aswellas“services”.Whenreadwiththeword“supply”,supplyofmoneyisneitherasupplyofgoods,norasupplyofservices.However,sec.2(102)includes,inthedefinitionof“service”,anyactivityrelatingtouseofmoney,eventhoughsupplyofmoneyitselfisnotaservice.Meresupplyofmoneycouldbesettlementofatransaction–forinstance,makingapaymentforgoodsandservices.Itcouldnothavebeenarguedthatthepersonmakingthepayment itself ismaking a supply. Therefore, the intent of the law excluding supply of money, butincluding any activity pertaining to the use of money becomes intriguing. ThisconundrumwasfacedbytheDelhiHighCourtinDelhiChitFundAssociationvsUnionof India1whileinterpretingsimilarexpressionusedinsec65B(44)oftheFinanceAct,1994–theHighcourtexpresseditsperplexityinthefollowingwords:“TheExplanation,therefore,seemstoofferacluetotheproblemwhichappearstoustobeacreationofthe very confoundingmanner inwhich the definition is found to have been drafted.However,wehavetomakesenseofwhatwehave”.

Can it, therefore,beargued that lendingofmoney isanactivitypertaining touseofmoney? If the settlement of a supply in form of a monetary payment cannot itself be takentobeasupply,then,whatelsecouldbetheexclusionofmonetarytransactions1 https://indiankanoon.org/doc/110893075/.AnSLPagainstthedecisionwasrejectedbytheSupreme

Court–therefore,therulinghastheauthorityoftheApexcourt.

The introduction of Goods and Services Tax (GST) is, admittedly, one of the most outstanding tax reforms since Independence, and therefore, it is very important to unravel the implications of GST on financial transactions. This article is limited to GST on basic financial transactions excluding insurance, stock broking services, etc.

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inboththedefinitionof“goods”aswellas“services”,exceptlendingordepositofmoney?The discussion may seem academic because the list of exempted services [item 8- extending deposits, loans oradvances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit cardservices)].That is tosay, there isaclearexemption forextending of deposits, loans or advances, insofar as theconsideration is interest or discount. Therefore, it does notpractically matter whether lending of money is a supply ofservicesornot.However, thequestionbecomescrucial fromat least 2 viewpoints:

• Lendingofmoney isasupplyof service,butanexemptserviceintermsofItem8ofExemptionlist;

• Interest involved in credit cards is not a fully exemptservice

TheessenceoftheDelhiHighcourtrulinginDelhiChitFundAssociationwasthatexemptingsomethingthatwasnotevenincludedintheambitofthelawdoesnothavemuchmeaning.However,thequestionwhethermoneylendingisitselfasupplyofserviceatall,willcontinuetoengagecourtsforsometimeto come.

The exemption for financial transactions in India is quitenarrow – it is only the interest/discount earned or paid forloans, deposits or advances2. Therefore, if the transactiondeviatesfromaplainvanillastructureandtherefore, fails thetestofbeinga“loan”,“deposit”or“advance”,ortheconsiderationisnotaninterestordiscount,theexemptionislost.Asaresult:

• Allearningsandchargesother than interestordiscount3 will be chargeable toGST. This includes any upfront orregularchargessuchasprocessing fees,documentationcharges, service charges, collection charges, inspectioncharges,repossessioncharges,foreclosureorprepaymentcharges4,andsoon.

• If the transactiondoesnot fit into themeaningof “loan”,“deposit”or“advance”,evenifthetransactionisintrinsically

2 Thismaybecomparedtoglobalpractices.SingaporeGSTActexemptsawholerangeoffinancialtransactions–FourthScheduletoGSTAct.Aus-tralianlawalsoexempts“financialsupplies”,whichtermsincludesarangeoffinancialtransactions.ThesameisthepositioninNewZealand.

3 Theexpression“discount”willberelevanttotransactionssuchasdis-countingofbills,commercialpaper,etc.

4 SeerulingofCESTATinthecaseofHDFCLimited:http://www.cbec.gov.in/resources//htdocs-servicetax/ecs-st/exemption/2013-1-158-triahm.pd

afinancialtransaction,itdoesnotseemthatthesupplywillbe exempt from GST. Thus, if an inventory repurchasetransaction or a financial lease transaction may have the substanceofafinancialtransaction,butitwillbedifficulttocontendthattheyavailtheexemptiongiveninItem8oftheExemptionlist.

• Nevertheless,ifthetransactionisaloantransaction,thereisnoquestionofGSTontherecoveryofprincipallent,asthe tax can only be on the consideration, and not forprincipal recovery.

REGISTRATION REQUIREMENTSLoantransactionsarecurrentlyoriginated,besidesbanks,bythousands of non-banking financial entities, thousands ofmoney-lenders and entities occasionally engaged in lendingactivities. Therefore, a pertinent question is, is registrationunderGST law relevant foranentity,even though theentitymaybeearningincomebywayofinterest.Notably, interest on loans is exempt as per the exemptiondiscussed above; however, the registration requirement isbasedon(a)aggregateturnoverinafinancialyearexceedingRs20lacs;and(b)thesuppliermakingataxablesupply.Theterm “aggregate turnover” as defined in sec. 2 (6) includesvalueofall exemptsuppliesaswell.Thus,while there isnoGSToninterestonloans,butthesameisstillcapturedinwhilecomputingaggregateturnover.Thus:• If theaggregateamountof turnover (note that this isall-

Indiaturnover),includinginterest,inayearexceedsRs20lacs;AND

• The entity has received any consideration other than interest (any amount whatsoever) or made any other taxable supply (for example, even sale of scrap in theoffice),theentitywillrequireregistration.

Asmaybewell-known,GSTlawrequiresregistrationineverystatewhereataxablesupplyisbeingofferedfrom.Incontextoflendingactivities,apertinentquestionis–whatistheplacefromwherethesupplierisrenderingtheservice?Thereisanelaboratedefinitionof“locationofsupplierofservices”insec.2(71)oftheCGSTAct,butthedefinitiondoesnotaddressthe

There is an elaborate definition of “location of supplier of services” in sec. 2 (71) of the CGST Act, but the definition does not address the crucial question of the place from where the supply is being made. The determination of the place at which the supply is made, that place of supply, is done as per principles laid in the IGST Act, that Act does not provide guidance in fixing the place of the supplier.

GST ON FINANCIAL TRANSACTIONS

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crucial questionof theplace fromwhere thesupply isbeingmade. The determination of the place at which the supply is made,thatplaceofsupply,isdoneasperprincipleslaidintheIGSTAct,thatActdoesnotprovideguidanceinfixingtheplaceof the supplier.

Section 2 (71) refers to a fixed establishment, or theestablishment most directly concerned with the provision of the supply. In case of a lending transaction, there are variousfacets – sourcing of the loan, servicing of the loan, legaldocumentation,refinancingoftheloan,etc.Eachofthesemaybedonefromdifferentplaces–therefore,lenderswillcontinuetoaskwhichistheplacefromwherethelendingserviceisbeingprovided.

Onewonderswhydid the law leave sucha crucial questionopentointerpretation?Onepotentialansweristhateventually,GSTlawisdestination-based,andtherefore,thebenefitofthelevy will anyway travel to the state where the recipient of the serviceisregistered.However,itwillbetoooptimistictoexpectthat the States will care about whether the eventual benefit has been passed on to the state by way of inter-state transfer of credits,ifthetransactionotherwisefallsintheirprimarytaxingjurisdiction.In terms of practical advice, if the lender has a “fixedestablishment” [defined in sec. 2 (50) with reference to“sufficient degree of permanence and suitable structure intermsofhumanandtechnicalresourcestosupplyservices”],itshouldgenerallybeadvisableforthelendertogetregistrationinthatstate.Notably,thedraftofthelawisinspired,toquiteanextent,by theEUVAT regime,and the rulingsunderEUVATDirectiveseemtofavourtheaboveinterpretation.

AVAILING INPUT TAX CREDITSOneofthemostcriticalissuesforlenderswillbethemannerof seeking input tax credits.Asageneral rule, the credit forinputservicesisallowed,ifsuchinputsareusedincourseofor in furtherance of the business of the supplier [sec 16 ofCGST Act]. Sec. 17 (1) puts a restriction to the aforesaidgeneral rule, stating that if the inputs are used partly for

business purposes, and partly for other purposes, then theinput credit will be restricted to so much input tax as isattributable to business purpose. Sec. 17 (2) makes a similar rule for use of inputs formaking exempt supplies, providingthattheclaimsforinputtaxcreditwillberestrictedtosomuchof the input taxas itused formaking taxableandzero-ratedsupplies.

Incaseofbanksandfinancialinstitutions,theoutputismostlyinformofloans,whichisexempt.So,therewillonlybeasmallfractionoftaxableoutput.Asregardsinputs,onceagain,largepartoftheinputsareintheformofinterest,ormanpowercost–mostofwhicharenon-taxable.Hence,thereisanoption,insec.17(4),tobanks,financialinstitutionsandNBFCs,totakeathumbruleof50%set-off–thatis,onamonthlybasis,50%oftheavailableinputtaxcreditsareset-offagainstoutputtaxliability.

Many lenders often have activities or business segmentswhich have distinctly taxable outputs. For example, agencyfunctions, brokerages, leasing, etc have taxable outputs.Therefore,alendermayliketoevaluatewhethertoputforthesegmentorbusiness-silo computation,or toopt for the50%set off. In case of the former option,Rule 42 of theCentralGoods and Services Tax Rules, 2017 provides the detailedmanner of apportionment of inputs to the respective silos. The inputsexplicitlyattributabletothetaxableoutputsaretakenoff,afterdeductingtheexplicitlydisallowableinputs[thosefornon-businessuse,thosespecificallyattributabletoexemptturnover,andthosewhichareblockedcreditsundersec.17(5)],andtheremaining credits are apportioned on the basis of thecontributionofexemptturnovertototalturnover.

Ifalenderhasabusinesssegmentwhichcanberegardedasa“businessvertical” in termsof thedefinitiongiven insec.2(18), on considerations of risks and returns, the lendermayalso elect to register the business vertical as a “distinctperson”,thatis,aseparateGSTentity,thoughwithinthesamelegalandincome-taxentity.Therefore,thereareasmanyas4optionswithlenders:(a)optfor50%set-offundersec.17(4);(b) make a segment-wise computation by identifying inputsexplicitly attributable to exempt and taxable turnoverrespectively and appropriating the rest of the inputs inproportion of turnover; (c) opting for a separate verticalregistration for the taxable activity, though within the samelegalentity; and (d)option fora separate legalentity for thetaxableactivity.

Table 1: Input tax credit options for lendersSec.17(2)–silo-wise com-putation

Sec.17(4)–50% set-off

Separate busi-ness vertical

Separatelegalentity

Extentofset-off available

Inputs directly attributable to taxableoutputto be allowed fully;remaininginputs to be split proportionately based on turno-ver

50% of the inputs on a monthly basis

Inputs used in thetaxablever-tical to be allowedfully;inputs used for the other verti-cal may be sub-jectto50%set-off u/s 17 (4)

Two separate entities–hence,same as for separate verti-cal


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GSTreg-istrations

Oneforeachrelevant state

Oneforeachrelevant state

Two for each relevant state where separate vertical option exercised

Two for each relevant state

Legaland income-taxenti-ties

One One One Two

Cross-offset of excessofinput taxesover out-puttaxesbetween different silos

Possible,afterrestrictingandapportioningtheinputs

Question does not arise

Notpossible Notpossible

Complia-nce bur-den

+,sinceseg-ment-wise attri-bution of input taxestobedone

Minimal ++,notonlysegment-wiseattribution,buttwo distinct per-sonsforGSTpurposes

+++,twosepa-rate corporate entities–lead-ingtoduplica-tion of all corpo-rate,legalandGSTcomplianc-es

Flexibilityof the option

Optionoptedonce will be valid for the financial year

Optionoptedonce will be valid for the financial year

Optingoutwillamount to de-registrationforGSTpurposes

Optingoutwillrequirecorpo-ratemergerfor-malities as well

The election of one out of the 4 options above is a tricky choice,astherearenumerousfactorstobeconsidered.Table1comparesthe4options.Inpractice,thechoiceisbasedonamixofquantitative factors (numerical impactbasedon thesizeofthetaxableactivity),aswellasqualitativefactors.

TAX ON SALE OF REPOSSESSED ASSETSIn sales-tax and VAT regime, there has been inconclusivelitigationonwhethersaleofrepossessedgoodsbylendersisliable tobe taxed in thehandsofbanks/financial institutions,who are not otherwise engaged in the business of buying/selling goods. One of the early rulings in this regard is therulingofFederalBankLtdvsStateofKerala(2007)6VST736(SC);[2007]4SCC188.However,sincetherulingdependedon the textof the law in theState, therehavebeenmultiplecasesonthisissue.CalcuttaHighcourtrulinginTataMotorsFinance vs Asst Commissioner of Sales tax5 is presently pendingbeforetheSupremeCourt.However,inthemeantime,several courts have ruled in favour of taxability of sale ofrepossessedgoods:MadrasHighcourtinHDFCBankLtdvsStateofTamilNadu[2016]60NTNDx62holdingthatlackoftitlewiththesellerdoesnotaffecttaxliabilityincaseofsaleofrepossessedgoods;DelhiHighcourt inCitibankvsCommissionerofSales tax6 - Delhi High court relying on theCalcutta andMadras rulingsabove.Inaddition,theSupremecourthasruledinKarnataka

5 https://indiankanoon.org/doc/40291817/6 http://lobis.nic.in/ddir/dhc/SMD/judgement/14-12-2015/SMD-

14122015STR12003.pdf

PawnBrokersvsStateofKarnataka7thatexistenceoftitlewiththe lender is not necessary for taxability for sales-tax/VATpurposes.

UnderGSTlaw,theambitoftaxabilityexpandssubstantially,aswemovefrom“sale”to“supply”.Whileonemayawaittheanswer from theSupremecourton taxabilityof repossessedgoodsasa“sale”,buttheword“supply”usedinGSTlaw, inrelation to goods, includes sale, transfer, barter, exchange,license, rental, leaseordisposal, leaving littledoubt that thedispositionof repossessedgoodsby lenderswillbe liable toGST.

Therealissue,insaleofrepossessedgoods,isthepotentialfor cascading tax. Assume a bank repossesses a car for adefaultedloan.ThecarhasanelementofGSTinitsprice(astheborrowerboughtthecarwithGST).Onrepossession,thebankdoesnotgetbenefitofGST,andthepricechargedbythebank on sale will be subject to GST, thus leading to aduplicationofGST.

ThisproblemissoughttoberesolvedbyprovisotoRule32(5)oftheCentralGoodsandServicesTaxRule,2017whichsaysthat in caseof sale of repossessedgoods froma defaultingborrower,whoisnotregistered,thevalueoftheoutputwillbethedifferencebetween(a)actualsaleprice;or(b)depreciatedpurchaseprice,takingadepreciationof5%perquarterorpartthereof,fromthedateofpurchasetilldisposal.Thevalueoftheoutputwillbetakenasnil,if(a)islessthan(b).

Therealproblemarisesincaseofrepossessionofgoodsfromregistereddealers–admittedly,mostofthedefaultedloansinthe country are accounted for by registered dealers, ratherthanunregisteredones,andpost-GSTimplementation,inanycase, there will be a strong demotivation for businesses toremainunregistered.Therefore, thereliefgivenbyprovisotoRule 32 (5) is only in case of retail lending, which is just afractionofthemammothNPAprobleminthecountry.So,ifthebank, or for that matter, an asset reconstruction company,usesitspowersundertheSARFAESIActorsimilar law,andrepossessesandsellsmovableproperty, is it tochargeGSTontheentiresaleprice,eventhoughtheprice includesGSTpaidoriginallyonthepurchase?

7 https://indiankanoon.org/doc/369962/

Under GST law, the ambit of taxability expands substantially, as we move from “sale” to “supply”. While one may await the answer from the Supreme court on taxability of repossessed goods as a “sale”, but the word “supply” used in GST law, in relation to goods, includes sale, transfer, barter, exchange, license, rental, lease or disposal, leaving little doubt that the disposition of repossessed goods by lenders will be liable to GST.


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What could have been the motivation of the law-maker in restrictingthebenefitofRule32(5)onlytorepossessionsfromunregistereddealers?Theremaybetwopotentialanswers:

• Going forward, in case of credit facilities to registeredsuppliers, lenders may like to keep their loan-to-value(LTV) ratio limited to thepre-GSTvalueof theasset,astheGSTissomethingwhichtheborroweravailsasacreditfrom the government. In such a case, if repossessionhappens,thelenderwillcreditonlyforthepre-GSTvalueoftheasset,andpayGSTtothegovernment.

• Alternatively,alegalissuethatarisesis–isrepossessionitselfacaseof“supply”bytheborrower,andtherefore,onrepossession,aregistereddealershouldreversehisowninput tax credit in favour of the lender? Note that thedefinitionof“supply”includesseveralelements–includingbroadly-construedwordssuchas“transfer”and“disposal”.Theword“disposal”hasbeeninterpretedbytheSupremeCourt inDeputyCommissioner of Sales-tax vs. ThomasStephen&Co . Ltd 1988AIR997as follows: “Disposalmeans transferof title in thegoods toanyotherperson.Theexpression“dispose”meanstotransferoralienate.Itwas formerly an essential word in any conveyance of land. (See Jowitt “The Dictionary of English Law” and alsoWebster Comprehensive Dictionary (International Edn.)-Vol.1,page368).Thereisnotransferoftitleasbetweentheborrowerand lender,but theresurely isa transferoftitlebythelendertothebuyer.Inmanycases,thelendermayretaintheassethimself,andusethesameforhiring.Hence, whether the repossession is merely a pro-temmeasure amounting to protection of the asset, or itamounts to transfer of proprietary interest to the lender,depends on the terms of the security document.

It would take quite some time of the law to get settled onrepossessions from registereddealers;however, lendersarestrongly advised to realign their lending policies to restrictlendingtothepre-GSTpriceoftheasset.

IMPLICATION FOR TRANSFER OF RECEIVABLES AND SECURITIZATIONInlendingbusiness,transferofreceivablesarisingoutofloantransactions happens quite commonly. This may happen inmultiplescenarios,inclusively:• Saleofloanportfoliosonexitfromabusiness• Assignment of loan portfolios among lenders (so-called

directassignments)• SecuritizationofreceivablesthroughSPVs• Purchaseandsaleofnon-performingloans• Factoringofreceivables,etc

TheGSTimplicationsonsaleofreceivablesbecomeintriguingbecauseofthedefinitionof“goods”,whichismadetoincludeallmovableproperty includingactionableclaims,butexcludeactionableclaimsbywayofScheduleIII.Areceivableisalsoan actionable claim, and hence the question. The GST lawimports themeaningof theterm“actionableclaims” fromtheTransfer of Property Act. Under the definition of Transfer ofPropertyAct,receivablesbackedbymortgages,hypothecationsandpledgesareexcluded.Thiswould,primafacie,giverisetoan impression that the GST law excludes only unsecured

receivables, since secured receivables, being movableproperty, are not a part of the exclusion referencing theTransferofPropertyAct.

However, the proper view to take in this regard is that anactionable claim representing a claimonmoney is excludedfromthepurviewofboth“goods”and“services”,asmoneyisneither.Ifanactionableclaimisnothingbutarighttoreceivemoney,thenitismoneyitself,andtherefore,excludedfromtheGSTlaw.Thepositionwouldnotchangeifthereceivablewasbacked by any tangible or intangible property, because thepropertyisjustacollateraltobackupamonetaryclaim.Thelender’sprimaryrightisonmoney–ifthemoneyisnotpaid,thelendermayenforcetheclaimontheunderlyingasset.Theloanitselfisnotaclaimontheasset–hence,thereceivablestill remains a monetary asset.

Hence, the primary sale of the receivables, in any of thetransactionsmentionedabove,willnotitselfbeliabletoGST.

Inmanytransactions,thetransferofreceivablesisfollowedbyservicing –for example, in case of direct assignments andsecuritization,thesellertypicallyactsastheservicer.Incaseof transfer of non-performing loans, the ARC chargesmanagementfeesformanagingthepooloftheloans.EachoftheseservicingormanagementfeesbecomesubjecttoGST,at the residual rate of 18%.

Securitisation and ARC transactions are worst-affected,becausehere, the feesarecharged to theSPVor the trust,whichisnotanentityregisteredforGSTpurposes.Hence,theGSTlevyreachesitsdead-end,andbecomesaburdenonthetransaction.

Transaction structures in future may also have to bear in mind that sweep out of residual profits also has to be structured eitheras interest,orasservicingofa “security”–otherwise,thismaywellcomeintothewidesweepoftheGSTlaw.

CONCLUSIONGST law marks a major change. Financial transactions arecatalysts foreconomicactivityandtheexemption in India forfinancial transactions is very narrow– interest on loans andpurchase/sale and servicing of securities. It is, therefore,imperative that transactions are structured carefully to avoid unhappy results. CS


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PradeepKMittal*,FCSAdvocate,[email protected]

Dis-Allowance of Input Tax Credit onConstruction of Immoveable PropertyHow Far Justiciable?

S ection16ofCGSTAct,2017(hereinaftercalledtheAct)speaksoftakingofInputTax Credit (hereinafter called ITC) upon receipt of supply of either goods or

services or both of them, which are used or intended to be used in the course orfurtherance of his business and the said amount shall be credited to the electronic credit ledgerofsuchperson.Inotherwords,the“RegisteredPerson”shallbeentitledtoITCof tax paid in respect of either “goods” or “services” but, however, theword “capitalgoods” isblissfullymissing. Nowonder, in future, theDepartment, in their quest forhighly ingenuine interpretation, may come up with the argument that the registeredpersonshallnotbeentitledtoITConcapitalgoods.

……………………………………………………………

Sub-Section (5)ofSection17of theAct, inter-alia,prohibits the takingof ITC inrespect of certain items:-(a) ………………………………………….(b) ………………………………………….(c) works contract service when supplied for construction of an immoveable

property (other than plant and machinery) except where it is an input serviceforfurthersupplyofworkscontractservice;

(d) goodsorserviceorboth receivedbya taxableperson forconstructionofanimmoveable property (other than plant and machinery) on his own account including when such goods or services or both are used in the course orfurtherance of business.

From the perusal of the above, a very interesting question arises as towhetherduring a construction of a building (which obviously is an immoveable propertywithin themeaning of Transfer of Property Act), if an input or input services orcapital goods, is used for further construction/erection/installation of building (animmoveablepropertywhich isusedasaplantandmachineryby theassessee),InputTaxCreditshallbeallowableornot?.

However,inmyview,incase,thebuildingorpremiseshadbeenusedasaplantorpartofplant,thenInputTaxCreditshallbeallowable.Intheevent,thebuildingorpremiseshadbeenusedinanyothermanner,(otherthanplantandmachinery)nosuchInputTaxCreditshallbeavailabletotheassessee.Ordinarily,itisunderstoodinthetradeandindustrycircleplantandmachineryonlyinclude“somestructureofsteel, aluminium, metal or similar items used/applied for fabrication/assembly/installationofan“object”whichisusedformanufactureorproductionofgoods”.

Therefore,insubsequentparas,oneneedtounderstandthemeaning,scopeandintentof“words”“plantandmachinery”andmoreparticularlythesewordsincludewithin its sweep, the building/premises/structure/immoveable property within themeaningof“TransferofPropertyAct”.

In CIT v. Kanodia Warehousing Corporation MANU/UP/0711/19790:[1980]121ITR996(All) , the Division Bench of the Allahabad High Court hasconsideredthemeaningof“plant”andheldthatinordertofindoutifabuildingor

The present article discusses whether “building”, “premises”, “structure”, “roads within the airport or factory”, would squarely fall within the meaning of “plant and machinery” and hence, shall be entitled to “Input Tax Credit” notwithstanding the bar laid down in Clauses (c) and (d) of Sub-Section (5) of Section 17 CGST Act.

* PastCentralCouncilMember,theInstituteofCompany Secretaries of India

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structureorpart thereofconstitutes “plant”, the functionaltestmustbeapplied.Itmustbeseenwhetherbuildingorstructureorpartthereof,constitutesanapparatusoratoolofthetaxpayerorwhetheritismerelyaspacewherethetaxpayercarriesonhisbusiness.Ifthebuildingorstructureor part thereof is something by means of which thebusiness activities are carried on, it would amount to aplantbutwherethestructureplaysnopartinthecarryingon of those activities but merely constitutes a place within whichtheyarecarriedon,itcannotberegardedasaplant.

In R.C. Chemical Industries v. CIT MANU/DE/0141/1981 [1982]134ITR330(Delhi) , the DelhiHighCourthasconsideredthemeaningof“plant”withreferencetoSection43(3)oftheIncomeTaxActandlaiddownthefollowingprinciples.

Thedefinitionofplant inSection43(3)shouldbegivenawidemeaningasitisaninclusivedefinition.Inorderforabuildingorconcretestructuretoqualifyforinclusionintheterm‘plant’,itmustbeestablishedthatitisimpossibleforthe equipment to function without the particular type ofstructure.

Thequestionwhether the roadswould includewithin themeaningoftheword“buildings”wasconsideredbyvariousHighCourts.The leadingdecision isof theBombayHighCourtinC.I.T.v.ColourChemLtd.MANU/MH/0032/1974:[1977] 106 ITR 323. While negating the contention thatroadsarepart of theplant, theBombayHighCourt heldthat the roads within the factory premises are used for the purpose of carrying rawmaterials, finished products and

workers. Therefore, it must be regarded as building orbuildings within the meaning of sub-clause (iv) ofsection10(2)of1992Act.Itwasalsoheldthatdictionarymeaning of the word “building” cannot be confined to astructure or superstructure havingwalls and roof over it.Theroadsandroadwaysareadjunctsofthebuildingslyingwithinthefactoryarealinkingthemtogetherandarebeingused for carrying on its business by the assessee.Therefore, theymust be regarded as forming part of thefactorybuilding.

TheSupremeCourt in thecaseofScientificEngineeringHouse Pvt. Ltd. Vs. Commissioner of Income Tax,1986(157) ITR 0086 SC relied upon certain followingforeigndecisionswhiledealingwith theexplanationPlantandgaveitawidemeaningundertheprovisionsofIncomeTaxlawinthefollowingmanner:

“Theclassicdefinitionof‘plant’wasgivenbyLindley,L.J.in Yarmouth v. France, [1887] 19Q.B.D. 647, a case inwhich it was decided that a cart-horse was plant within the meaningofsection1(1)ofEmployers’LiabilityAct,1880.Therelevantpassageoccurringatpage658oftheReportruns thus:-

“ThereisnodefinitionofplantintheAct:but,initsordinarysense, it includes whatever apparatus is used by abusinessmanforcarryingonhisbusiness,-nothisstock-in-tradewhichhebuysormakesforsale;butallgoodsandchattels,fixedormovable,liveordead,whichhekeepsforpermanentemploymentinhisbusiness.”

Inotherwords,plantwouldincludeanyarticleorobjectfixedormovable, liveordead,usedbybusinessmanfor carryingonhisbusinessand it isnotnecessarilyconfined to an apparatus which is used for mechanical operations or processes or is employed in mechanical or industrialbusiness. Inorder toqualifyasplant thearticlemusthavesomedegreeofdurability. InC.I.T.Andhra Pradesh v. Taj Mahal Hotel, MANU/SC/0239/1971:82I.T.R.44,therespondent,whichranahotel,installedsanitaryandpipelinefittingsinoneofits branches in respect whereof it claimed development rebateandthequestionwaswhetherthesanitaryandpipe-line fittings installed fell within the definition of“Plant”giveninSec.10(5)ofthe1922ActwhichwassimilartothedefinitiongiveninSec.43(3)ofthe1961Act and this Court held that sanitary and pipe-linefittingsfellwithinthedefinitionofplant.

TheBombayHighCourt in thecaseofCITv.MazagaonDock Ltd. MANU/MH/0278/1991u: (1991) 191 ITR460(Bom)hasheldthatdrydockandwetdockcreatedforshipsaretobetreatedasplantandnotbuilding.

The Apex Court in the case of CIT v. Dr. B. VenkataRao MANU/SC/1284/1999: (2000) 243 ITR 81(SC) hasheld that in the case of an “Operation Theatre” in thehospital,ithasbeenheldtobeapartofplantandnotapartof building. The Court further held that the operationtheatre in an hospital building is not simply a concretestructurebutnecessarilyapartforrunningofthehospital

If the building or structure or part thereof is something by means of which the business activities are carried on, it would amount to a plant but where the structure plays no part in the carrying on of those activities but merely constitutes a place within which they are carried on, it cannot be regarded as a plant.

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oncoldstoragebuildingbyconsideringthesameasplantwhich was allowed by the Learned AssessingOfficer@10% by treating the same as building relying on thedecision of Supreme Court in the case of AnandTheaters MANU/SC/0409/2000: 244 ITR 192. In appeal,the Learned Commissioner of Income Tax (Appeals)allowedtheclaimoftheAssessedfollowingthedecisionofthe Calcutta High Court in the case of CIT v. ShreeGopikishan Industries (Cal) MANU/WB/0061/2003: 262ITR568and thedecisionof theAllahabadHighCourt inthe case of CIT v. Kanodia cold Storage MANU/UP/0175/1974:100ITR155byobservingasunder:

TheAppellant,duringthecourseofappellateproceedings,has submitted that the cold storage is required to beconstructed and maintained as to be damp proof, heatproof and protected against entry of or damage to thestored agriculture and other produce by pests, noxiousinsects,ratsandotherrodents.Thesameistobeprovidedwithinsulationofthefloors,roofsanddoorsandinsulationand water proofing treatment is to be done in a propermanner in accordance with cold temperature to be maintainedbelowor above freezingpoint. TheAppellanthasthereforesubmittedthatthestorageorchamberitselfis an apparatus and tool of the trade through which thebusiness is carried on and the insulation without the buildingcannotproducetheresultandthebuildingwithoutthe insulation also equally disastrous for the purpose.Therefore, itwascontendedthatthecoldstorageplantisdifferent from the other normal building because withoutthe cold storage plant it is not possible to carry on thebusinessofcoldstorage.Insupportofitscontentions,theAppellantplacedseveralcourtdecisions,suchas1001TR155-C1T v. Kanodia Cold Storage (All); MANU/WB/0061/2003: 262ITR 568- CIT v. Shree GopikishanIndustries (Cal.) etc. ThePunjabandHaryanaHighCourtinthecaseofCIT

v.YamunaColdStorageMANU/PH/0244/1981:[1981]129ITR728(P&H),hasheldthatthecoldstorageisafactorybuildingentitledto10percent.

TheSupremeCourtinCITV.Dr.B.VenkataRaoMANU/SC/1284/1999: 243 ITR 81, dealt with a question as towhether a building of “Nursing Home” is plant andmachinery. In that case, the ITAT has held that thenursinghometobeaplantandthesamewasaffirmedbytheHighCourt.Intheappeal,theSupremeCourtheldthatsince the nursing home is equipped to enable thesterilization of surgical instruments and bandages to becarriedonand itwas reasonable toassume thatnursinghomewasequippedwithoperationtheaterand,therefore,held to be plant and machinery.

From thecarefulexaminationof thecatenaof judgmentscited in the preceding paras, it could be said that the“building”, “premises”, “structure” “roadswithin theairportorfactory”,wouldsquarelyfallwithinthemeaningof“plantandmachinery”andhence,shallbeentitledto“InputTaxCreditnotwithstandingthebarlaiddowninClause(c)and(d)ofSub-Section(5)ofSection17CGSTAct–ofcourse,in various situations explained in the judgments citedabove. CS

and the assessee is entitled to claim depreciation as applicable to plant and machinery.

In another decision reported in CIT v. Karnataka PowerCorporation MANU/SC/0585/2000: [2001] 247 ITR 268(SC),theSupremeCourtheldasfollows(headnote):

Thequestionwhetherabuildingcanbe treatedasplant,basically, isaquestionof factandwhere it is foundasafact thatabuildinghasbeensoplannedandconstructedastoserveanassessee’sspecialtechnicalrequirements,itwillqualifytobetreatedasa“Plant”forthepurposesofinvestmentallowance.Heldaccordingly, that therewasafinding by the fact-finding authority that the assessee’sgeneratingstationbuildingwassoconstructedastobeanintegralpartofitsgeneratingsystem.Itwas“plant”entitledtoinvestmentallowance.’

TheITAT,inanappealITANo.7111/Mum/2011,videorderdated14.3.2014,madeveryinterestingobservations.

If we apply the above decisions to the facts of the case beforeus,weareoftheconsideredviewthattaxiwaysandaprons,parkingbayscannotbesaidtobemerelyconcretestructuresbutarenecessary tools foroperating/usingtheAirport.Hence, thesameare tobeconsideredaspartofplantandmachinery.Therefore,weholdthatassesseeisentitled for depreciation at the rate as applicable on plant andmachineryinrespectoftaxiways,aprons,parkingbaysetc.

The assessee claimed depreciation @ 25%

“The classic definition of ‘plant’ was given by Lindley, L.J. in Yarmouth v. France, [1887] 19 Q.B.D. 647, a case in which it was decided that a cart-horse was plant within the meaning of section 1(1) of Employers’ Liability Act, 1880.

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T.N.Pandey*Advocate,[email protected]

Composition Scheme Under the Central Goods And Services Tax (CGST) Legislation

I tisaxiomaticthatwhenanewtaxlaw,inter-alia,concerningtrade,commerceandbusi-ness is enacted, the implementational problems aremostly felt by lower andmiddle

incomegroup taxpayersbecauseof their inability toafford theservicesof taxexperts formakingcompliancetonewlaws.Thissituationislikelytobefacedwhenthenewdestinationbasedlaw,CGSTandSGST,comeintoforcefrom1stJuly,2017.ItisgoodtofindthatthepolicymakersofGSTlawshavekeptthisprobleminviewwhiledesigninglawsconcerningGSTbyincorporatinginsuchlawscompositionfeeschemeforsuchcategoryoftaxpayers.Thecompositionschemeisexaminedinfourpartsi.e.A,B,CandDasunder:-

PART-A – THE LAWSection10oftheCGSTprovidesforcompositionschemefortaxpayerswithaggregateturn-overofRs.50lakhinayear.However,provisotosection10(1)providesthattheGovt.may,bynotification,increasethelimitofRs.50lakhtosuchhigheramount,notexceedingRs.1crore, as may be recommended by the GST Council. In terms of this proviso, the GSTCouncil,initsmeetingheldon11thJune,2017,hasrecommendedincreaseintheaforesaidturnoverlimitforcompositionlevyforCGSTandSGSTfromRs.50lakhtoRs.75lakhevenbefore theGSTlawcameinto force.TheGSTCouncilhasstill togive itsview–whetherincreasedturnoverlimitshouldapplyincaseofspecialcategoryStates. Salient aspects of composition scheme

[i] Itisoptionalfortaxpayers.Theyhavetheoptiontooptforitornot;[ii] Itappliesonlytogoods–nottoservices.Thismeansthataserviceoperatorcannotoptforcompositionfeeexceptsmallrestau-rants.[iii] therateoftaxvariesfrom0.5%to2.5%(amplifiedlater].

Persons,whocannotavailthescheme[i] Incases,wheretax ispayableunderreversechargemechanism.[ii] Inthecaseofpersons,makinginterStatesupplies;[iii] Persons,whoarenottaxableunderGSTlaw;[iv] Anelectroniccommerceoperator,whoisrequiredtocollecttaxatsource;[v] Manufacturersofnotifiedgoods;[vi] Incases,whereturnoverexceedstheprescribedlimit,thenfortheturnoverexceed-

ingsuchlimit–thisoptionwillnotbeavailable. Denialofinputtaxcredit

Thepersons,availingofbenefitofpayingtaxesundercompositionscheme,willnotbeeligibletoavailofinputtaxcredits.

NocollectionoftaxfromrecipientsofsuppliesmadeAtaxableperson,towhomtheprovisionsofsub-section(1)ofsection10apply,shallnotcollectanytaxfromrecipientsofsuppliesmadebyhim.

PAN(issuedbytheI.T.Dept.)requirementforavailingthecompositionschemeThethresholdlimitofRs.50lakhwouldbeapplicabletopersons,whosatisfythefollow-ingconditionsconcerningPermanentAccountNumber(PAN)issuedbytheIncomeTaxDept.:[i] All taxablepersons,coveredby thesamePAN,shallavailof theschemeacross

India.

The policymakers of GST laws, it is good to find, have kept the implementational problem mostly felt by lower and middle income group taxpayers in view while designing laws concerning GST by incorporating in such laws composition fee scheme for such category of taxpayers. The present article discusses the composition scheme under the Central Goods and Services Tax Legislation.

*FormerChairman,CBDTandSpecialSecretary,MinistryofFinance.

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Forthis,thevalueofgoodssuppliedbyaperson,whicharesubjecttotaxonreversechargebasis,willnotbeincludibleincomputing the figureofRs.50 lakh(orRs.75 lakh if the limitgetsincreasedtothisfigure).[ii] TheturnoverfigureofRs.50/75lakhwillincludeallcate-

gories of goods, which are taxable as ‘supply(ies) ofgoods’;

[iii] The limit will include value of supplies of all businessverticalsrelatingtosametaxableperson.

PART-B – RULESRules have been notified for the operation of composition feescheme.Theseareconsideredinlaterparagraphs.[1] Rule(1)–IntimationforcompositionlevyThisRule is self-explanatory and is reproduced below for readyreference:-[1] Any person, who has been granted registration on a provi-

sional basis under sub-rule (1) of rule (Registration) 16 and who opts to pay tax u/s 10 (taxable person), shall electroni-cally file an intimation in Form GST CMP-01, duly signed, on the common portal, either directly or through a Facilitation Centre (notified by the Commissioner), prior to the appointed day, but not later than 30 days after the said day, or such further period as may be extended by the Commissioner in this behalf:

Provided that where the intimation in Form GST CMP-01 is filed after the appointed day, the registered person shall not collect any tax from the appointed day but shall issue bill of supply for supplies made after the said day.

[2] Any person, who applies for registration under rule (Registration) 1, may give an option to pay tax u/s 10 in Part-B of Form GST REG-01, which shall be considered as an intima-tion to pay tax under the said section.

[3] Any registered person, who opts to pay tax u/s 10, shall elec-tronically file an intimation in Form GST CMP-02, duly signed, on the common portal, either directly or through a Facilitation Centre (notified by the Commissioner) prior to the commence-ment of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the state-ment in Form GST ITC-3 in accordance with the provisions of

sub-rule (4) of rule (ITC) 9 within 60 days from the commence-ment of the relevant financial year.

[4] Any person, who files an intimation under sub-rule (1) to pay tax u/s 10 shall furnish the details of stock (including the inward supply of goods received from unregistered persons) held by him on the day preceding the date from which he opts to pay tax under the said section, electronically, in Form GST CMP-03, on the common portal, either directly or through a Facilitation Centre (notified by the Commissioner), within 60 days of the date from which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf.

[5] Any intimation under sub-rule (1) or sub-rule (3) (infra) in respect of any place of business in any State or Union Territory, shall be deemed to be an intimation in respect of all other places of business registered on the same PAN.

Theform,tobefiledforthispurpose,isGSTCOMP-01.

[2] Rule(2)–Effectivedateforcompositionlevy

ThisRulehastwosub-rules,whichreadasunder:-“[1] Theoptiontopaytaxu/s10shallbeeffectivefromthebegin-

ningof the financialyear,where the intimation is filedundersub-rule(3)ofrule1andtheappointeddate,whereintimationis filed under sub-rule (1) of the said rule.

[2] Theintimationundersub-rule(2)ofrule1shallbeconsideredonlyaftergrantofregistrationtotheapplicantandhisoptiontopaytaxu/s10shallbeeffectivefromthedatefixedundersub-rule(2)or(3)ofrule(Registration)3”.

ThisRulecaters to3situationsnamely(i)wherea taxpayermigratestoGSTregimefromoldregime;(ii)seeksregistrationforthefirsttime;or(iii)isalreadyaregisteredtaxpayer,payingtaxatnormalrate.Inthefirstcase,theintimationistobegivenon‘appointeddate’,inthe2ndsituationfromthedateofreg-istration,and in the thirdcase, from thedateofcommence-ment of financial year.

[3] Rule(3)–Conditionsandrestrictionsforcompositionlevy Theconditionsand restrictionsprovidedby thisRule,which

the person, exercising the option, has to comply with, asstated in sub-rule (1) are:-

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[a] Theperson,exercisingtheoption,isneitheracasualtax-ablepersonnoranonresidenttaxableperson;

[b] The goods held in stock by him on the appointed dayhave not been purchased in the course of inter State trade or commerce or imported from a place outside India or received from his branch situated outside the State or fromhisagentorprincipaloutside theState,where theoptionisexercisedundersub-rule(1)ofrule1;

[c] Thegoodsheldinstockbyhimhavenotbeenpurchasedfrom an unregistered person andwhere purchased, hepaysthetaxundersub-section(4)ofsection9;

[d] Heshallpaytaxundersub-section(3)orsub-section(4)ofsection9oninwardsupplyofgoodsorservicesorbothreceivedfromunregisteredpersons;

[e] Hewasnotengagedinthemanufactureofgoodsasnoti-fied under clause (e) of sub-section (2) of section 10,duringtheprecedingfinancialyear;

[f] Heshallmentionthewords‘compositiontaxableperson,noteligibletocollecttaxonsupplies’atthetopofthebillofsupplyissuedbyhim;and

[g] Heshallmentionthewords‘compositiontaxableperson’on every notice or signboard displayed at a prominentplace at his principal place of business and at every addi-tional place or places of business.

Sub-rule(2)ofRule3

This sub-rule provides that option for composition fee is to be filed once only and reads thus:-“(2)Theregisteredperson,payingtaxu/s10,maynotfileafreshintimationeveryyearandhemaycontinue topay taxunder thesaidsection,subjecttotheprovisionsoftheActandtheserules”.

Rule4Thisisalongruleandprovidesasunder:-[1] Theoptionexercisedbyaregisteredpersontopaytaxu/s10

shall remain valid so long as he satisfies all the conditionsmentioned in the said section and these rules.

[2] Theperson,referredto insub-rule(1),shallbe liabletopaytaxundersub-section(1)ofsection9fromthedayheceasesto satisfy any of the conditions mentioned in section 10 or theserulesandshallissuetaxinvoiceforeverytaxablesupplymade thereafter and he shall also file an intimation for with-drawal fromthescheme inFormGSTCMP-04withinsevendays of occurrence of such event.

[3] Theregisteredperson,whointendstowithdrawfromthecom-positionschemeshall,beforethedateofsuchwithdrawal,fileanapplication inFormGSTCMP-04,dulysigned,electroni-cally on the common portal.

[4] Wheretheproperofficerhasreasonstobelievethatthereg-isteredpersonwasnoteligibletopaytaxu/s10orhascontra-venedtheprovisionsoftheActortheserules,hemayissueanotice tosuchperson inFormGSTCMP-05 toshowcausewithin 15 days of the receipt of such notice as to why option to paytaxu/s10shouldnotbedenied.

[5] Uponreceiptofreplytotheshowcausenoticeissuedundersub-rule(4)fromtheregisteredpersoninFormGSTCMP-06,theproperofficershall issueanorderinFormGSTCMP-07within30daysofreceiptofsuchreply,eitheracceptingthereplyordenyingtheoptiontopaytaxu/s10fromthedateofoptionorfromthedateoftheeventconcerningsuchcontra-vention,asthecasemaybe.

[6] Everyperson,whohasfurnishedanintimationundersub-rule(2) or filed an application for withdrawal under sub-rule (3) or a person in respect of whom an order of withdrawal of option hasbeenpassed inFormGSTCMP-07under sub-rule (5),mayelectronicallyfurnishatthecommonportal,eitherdirectlyorthroughaFacilitationCentre(notifiedbytheCommissioner),a statement in Form GST ITC-01 containing details of thestock of inputs and inputs contained in semi-finished or fin-ishedgoodsheld in stockbyhimon thedate onwhich theoption iswithdrawnordenied,within30days, fromthedatefrom which the option is withdrawn or from the date of order passedinFormGSTCMP-07,asthecasemaybe.

[7] Any intimation for withdrawal under sub-rule (2) or (3) ordenial of the option under sub-rule (5) in respect of any place ofbusinessinanyStateorUnionTerritory,shallbedeemedto be an intimation in respect of all other places of business registeredonthesamePAN.

Forms,tobefiledinthecontextofrule4

Contingencies FormNo.

[a] Forvoluntarywithdrawalfromthescheme GSTCMP-04[b] Situation,whereapersonceasestosatisfy anyoftheconditionsofcompositionlevy GSTCMP-05[c] Whenaproperofficerwithdrawsbenefitof scheme if he has reason to believe that the registeredpersonwasnoteligibletopaytax under composition or has contravened any suchprovisions GSTCMP-06

Wherethebenefitofthecompositionschemeistobewithdrawn,the proper officer shall issue order within 30 days of the receipt of replytoshowcausenoticeinformGSTCOMP-06(supra).

PART-C – RULESRule5Thisruleprescribesthatthecategoryofregisteredpersons,eligi-bleforcompositionlevyu/s10andtheserules,specifiedincolumn(2)oftheTablebelowshallpaytaxu/s10attheratespecifiedincolumn (3) of the Table.

[1] [2] [3]

Sl. No.

Category of registered person Rate of tax

1 Manufacturers, other than manufacturers ofsuchgoods,asmaybenotifiedbytheGovt.

1%

2 Suppliers, making supplies referred to inclause(b)ofparagraph6ofScheduleII

2.50%

3 Any other supplier eligible for compositionlevy u/s 10 and these rules

0.50%

PART-DCONCLUSION The composition scheme is meant to facilitate the lower and mid-dleleveltaxpayers,whocanavailofthesametohaveasimplifiedcompliancetothenewGSTlaw.HowitworkscanbeknownonlyaftertheGSTlawcomesintoforceattheCentralandStatelevels.Refinementstotheschemecanbemadeafteritisinoperationatleast for one year. CS

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Dr.SanjivAgarwal,*FCSManagingPartnerAgarwalSanjivandCompany,[email protected]

Anti Profiteering Measures in GST Law

T heGSTlawcontainsauniqueprovisiononanti-profiteeringmeasureasadeterrentfortrade and industry to enjoy unjust enrichment in terms of profit arising out of

implementation of Goods and Services Tax in India, i.e., anti-profiteering measure wouldobligatethebusinessestopassonthecostbenefitarisingoutofGSTimplementationtotheircustomers.

TheprovisionsarecontainedintheGSTlawasperfollowingprovisions:

CGSTAct,2017 Section171onAnti-profiteeringmeasures

IGSTAct,2017 Section 20which stipulate that provisions of CGSTAct, 2017 shallapply mutatis mutandistoIGSTAct

UTGSTAct,2017 Section 21which stipulate that provisions of CGSTAct, 2017 shallapplymutatismutandistoUTGSTAct

SGSTAct,2017 Section171onAnti-profiteeringmeasures

STATUTORY PROVISIONS OF ANTI-PROFITEERING MEASURE (SECTION 171) Thefollowingisthetextofsection171oftheCGSTAct,2017:“1. Anyreductioninrateoftaxonanysupplyofgoodsorservicesorthebenefitofinputtax

credit shall be passed on to the recipient by way of commensurate reduction in prices.2. The Central Government may, on recommendations of the Council, by notification,

constituteanAuthority,orempoweranexistingAuthorityconstitutedunderanylawforthetimebeinginforce,toexaminewhetherinputtaxcreditsavailedbyanyregisteredpersonorthereductioninthetaxratehaveactuallyresultedinacommensuratereductioninthepriceofthegoodsorservicesorbothsuppliedbyhim.”

OBJECTIVE OF ANTI-PROFITEERING MEASURE Section171providesthatitismandatorytopassonthebenefitduetoreductioninrateoftaxorfrominputtaxcredittotheconsumerbywayofcommensuratereductioninprices.

CONCEPT OF ANTI PROFITEERING MEASURE While every business would like to earn more and more profits from business, given anopportunity,itisafactthatGSTisanewconceptbeingintroducedinIndiaforfirsttimeandclaimedasamajor taxreformandthatexperiencesuggests thatGSTmaybring ingeneralinflationintheintroductoryphase.TheGovernmentwantsthatGSTshouldnotleadtogeneralinflation and for this, it becomes necessary to ensure that benefits arising out of GSTimplementationbetransferredtocustomerssothat itmaynot leadto inflation.Forthis,antiprofiteeringmeasureswillhelpcheckpriceriseandalsoputalegalobligationonbusinessestopassonthebenefit.Thiswillalsohelpininstillingconfidenceincitizens.

ANALYSIS OF ANTI-PROFITEERING MEASURE This isanewconceptbeing triedout for the first time.The intention is tomake itsure thatwhatevertaxbenefitsareallowed,thebenefitofthatreachestotheultimatecustomersandisnot pocketed by trade. ThepowerhasbeengiventoCentralGovernmenttoconstituteanauthoritytooverseewhetherthecommensuratebenefitofallowanceofinputtaxcreditorreductioninthetaxrateshavebeen passed on to the final customer.

The present article discusses the anti-profiteering measure in GST Law which would obligate the businesses to pass on the cost benefit arising out of GST implementation to their customers.

* AlsoACIS(UK). FormerChairman,NIRCofICSI.

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Sub-section(2)ofsection171oftheActprovidesforestablishmentofanauthorityforananti-profiteeringclauseinordertoensurethatbusinesspassesonthebenefitofreducedtaxincidenceongoodsor services or both to the consumers.

TheauthorityconstitutedbyCentralGovernmentwillhavepowerstoimposeapenaltyincaseitfindsthatthepricebeingchargedhasnotbeenreducedconsequenttoreductioninrateoftaxorallowanceofinputtaxcredit.

HIGHLIGHTS OF ANTI – PROFITEERING MEASURE (SECTION 171) • TobeadministeredbyCentralGovernment• Bynew/existingauthority• Commensurate reduction in prices

* DuetoInputTaxCredit(ITC)* Duetoreductionincost

• Mayimposepenaltyfornotpassingbenefittocustomers• Penaltiestobeprescribed

AUTHORITY FOR CHECKING ANTI-PROFITEERING ACTIVITIESTheGovernmenthasnotifiedanti-profiteeringauthority(APA)whichwill check any undue increase in prices of products of companies under GST. The APA will work to check any undue increase inpricesofproductsbytaxpayercompaniesundertheGSTregime.

Itwillworkinathree-tierstructure-aStandingCommitteeonAnti-profiteering as well as State-level Screening Committees. TheNationalAnti-ProfiteeringAuthoritywouldconsistof fivemembers,includingaChairman.

ItwillalsoconstituteState-levelScreeningCommittees,whichwillhaveoneofficeroftheStateGovernment,tobenominatedbytheCommissioner, and one officer of the Central Government, to benominated by the Chief Commissioner. The Additional Director

GeneralofSafeguardswillbetheSecretarytotheAuthority.

Salient features of Anti-Profiteering Authority (APA)• TobesetupunderAnti-ProfiteeringRules,2017• DoesnotcoverStateofJ&K• DirectorGeneralofSafeguards• Todeterminemethodology&procedure• Cooperationwithotheragencies (income tax,police, revenue

intelligenceetc)• Powertosummon• OrdermonitoringbyIGST/SGST/CGSTauthority• Tenure of 2 years.

FUNCTIONS OF AUTHORITY TheAuthorityundersection171shallhavethefollowingmonitoringfunctions : A. Input tax credit availed by taxpayer have actually resulted in

commensuratereductioninpriceofgoods/servicesB. The reduction in prices on account of reduction in tax rates

have actually resulted in a commensurate reduction in price of goods/services.

DUTIES OF APAAsperRule8,APAshallbedutybound:• todeterminewhetheranyreductioninrateoftaxonanysupply

The orders passed by the APA shall follow the principles of natural justice and as such, opportunity of being heard shall be provided. The rules are silent on further appeal against orders of APA. Nor does it stipulate that such orders shall be final. It provides that orders passed by APA have to be complied with immediately by the registered person.

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ofgoodsorservicesor thebenefitof the input taxcredithasbeen passed on to the recipient by way of commensurate reduction in prices.

• to identify the registered personwho has not passed on thebenefitofreductioninrateoftaxonsupplyofgoodsorservicesor the benefit of input tax credit to the recipient by way ofcommensurate reduction in prices.

The powers to take action are also listed as duties whereby it can order price reduction, refund of profit, recovery, penalty or evencancellationofGSTregistration.

IMPLEMENTATION OF PROVISION AND PROCEDURE Therewillberulesorguidelinesforimplementationofthisprovisionin relation to who will implement this provision, constitution andbusinessrulesforauthoritytomonitor,possiblecostauditmonitoring,from when this provision will be implemented and how authority will check and implement.

TheAuthoritymay determine themethodology and procedure fordeterminationastowhetherthereductioninrateoftaxonthesupplyof goods or services or the benefit of input tax credit has beenpassed on by the registered person to the recipient by way ofcommensurate reduction in prices.

Within two months of receiving an application, the StandingCommittee would examine it and send it to the State LevelScreeningCommittee.Basedonitsrecommendations,theDirectorGeneral of Safeguards would investigate the complaint with in aperiod of three months.

The authority will have a chairman of the rank of a secretary and four nominated members who have been commissioners of central or state taxes. TheGSTCouncilwill have the power to constitute aStanding Committee on Anti-profiteering, which will consist ofofficersofstategovernmentsandthecentralgovernment.

Iffoundtohavemerit,thecomplaintwouldthenbeforwardedtotheauthority.Itwouldpassitsorderwithinthreemonths.“AnopportunityofhearingshallbegrantedtotheinterestedpartiesbytheAuthoritywhere any request is received in writing from such interestedparties.It will be up to the authority to determine whether the reduction in the rateoftaxongoodsorservicesorthebenefitofinputtaxcredithasbeen passed on by companies and dealers to customers.

Thestandingcommitteewill,withintwomonthsfromthereceiptofawritten application from a complainant, establishwhether there isevidencetosupporttheclaim.Allapplicationswillfirstbeexaminedbystate level screeningcommittees,whichwill forward themwiththeirrecommendationstothestandingcommittee.

TheorderspassedbytheAPAshallfollowtheprinciplesofnaturaljusticeandassuch,opportunityofbeingheardshallbeprovided.The rulesaresilenton furtherappealagainstordersofAPA.Nordoes it stipulate that such orders shall be final. It provides that orderspassedbyAPAhavetobecompliedwithimmediatelybytheregisteredperson.

Orders issued by APA• Within3monthsofreportofDGS• Opportunityofbeingheard

• Bymajorityincaseofdifferenceofopinion• Compliancebyregisteredpersonimmediately• Noclarityonwhetherorderappealableornot

POWER TO CANCEL REGISTRATION OF ASSESSEEAnti-Profiteering Authority (APA) shall act as monitoring andregulatoryauthoritytocurbanti-profiteeringpracticesoftaxpayersunderGSTregime.TheAPAshallbedutyboundto:• Makecompanyreducetheprices• Make company refund themoney to the consumeralongwith

interest@18%p.a.• OrdercompanytodeposittherefundamountintheConsumer

Welfare Fund (in case the buyer is not identifiable) • Impose monetary penalty equivalent to amount involved in

undueprofiteering• Cancelregistrationoftheassessee

However,suchactionwouldbebasedontherecommendationsoftheDirectorateGeneralofSafeguards.Alsosuchpowerswouldbeusedinextremecases.

The power to deregister or cancel the registration, if invokedfrequently and too lightlymay hamper business environment andinstillfearanddistrustamongsttaxpayers.Thepowertolevypenaltymaybejustifiedbuttakingawaytherighttodobusinessmaybetooharsh and even unconstitutional. There could also be disputes on undueprofiteeringwhichmaynotactuallybesoastherewouldbeothercosts/overheadswhichmaysetofftheprofit,ifany,accruingfromGSTefficiency.Itwillalsoaddtodisputesandlitigation.

In fact instead of having power to cancel registration (whichtantamounttotakingawayrighttodobusinessitselfasregistrationismandatory),itcouldhavebeenbetterifacostauditisdirectedinsuchcasesand thenanappropriateaction taken, ifneeded,onacase to case basis.

Indirectly, itmay imply thatGovernmentwillnowdecideordictatethebusinessmenonhowtodobusinessorwhatgrossprofit ratiotheyshouldhaveormaintain.Thiswillalsoquestion thebusinessacumen of enterprises and entrepreneurs. In fact one of the penal actionswhichcouldbethoughtofisalsotosubstantiallydowngradetheGSTcomplianceratinginsuchcases.

Why Companies are fretting against Anti-profiteering law • Noclearcutmechanismfordetermininganti-profiteering• Rulesonlyoutlinetheproceduretobefollowedforinvestigation

andenquiry• Discretionary powers to arrive at commensurate reduction

undertheCentralGSTAct• Vulnerabletolegalchallengequestioning‘excessivedelegation’

byParliament• No clarity on whether de-registered firms can re-commence

business

ANTI-PROFITEERING RULES TheGSTCouncil initsmeetingon18thJune,2017approvedandthe Government has released the Anti-Profiteering Rules, 2017which extend to whole of India except to State of Jammu andKashmir.Thesecontainrulesinteralia,inrelationto-1. Shorttitle,extentandcommencement2. DefinitionsofCommittee,Authorityandinterestedparty


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3. ConstitutionoftheAuthority4. Constitution of the Standing Committee and Screening

Committees5. Appointment,salary,allowancesandothertermsandconditions

ofserviceoftheChairmanandMembersoftheAuthority6. SecretarytotheAuthority7. Powertodeterminethemethodologyandprocedure8. DutiesoftheAuthority9. Examination of application by the Standing Committee and

ScreeningCommittee10. Initiationandconductofproceedings11. Confidentiality of information12. Cooperationwithotheragenciesorstatutoryauthorities13. Power to summon persons to give evidence and produce

documents14. OrderoftheAuthority15. Decisiontobetakenbythemajority16. Compliancebytheregisteredperson17. Monitoringoftheorder18. TenureofAuthority

TIME PERIOD OF PROVISIONSection17onanti-profiteeringmeans,shallhaveasunsetclause.The rules framed for anti-profiteering as approved by the GSTCouncil indicate that it would operate for a period of only two years. Thus,itwouldceasetoexistaftertwoyearsofbeinginforce.

ANTI PROFITEERING MEASURES ABROAD Globalexperiencesuggestthatanti-profiteeringprovisionsareonlyeffective if there is a significant lead-in time to allow the relevantauthority to educate consumers and businesses as to their respective rightsandobligations.Theconceptofanti-profiteeringprovisionhasbeenperhapsborrowedfromAustraliawhichwasthefirstcountrytoenactsimilarprovisionswhenitreplacedaseriesofinefficienttaxeswithaGSTinJuly,2000.TheAustralianCompetitionandConsumerCommission (ACCC) was charged with the responsibility ofmonitoring prices 12 months before the commencement of GST.TheACCC’s focuswasoneducatingconsumersandbusinesses.This included thepublicationof pricingguidelines, communicationstrategiesfordifferentmarketsegmentsand‘hotlines’forconsumersand businesses to get advice. Education was supported byextensiveandsophisticatedmonitoringofprices leadingup to theintroductionofGSTandinthemonthsimmediatelyfollowing.

Malaysia also introducedananti-profiteering provision, alongwiththe introduction of GST in April, 2015 but it led to widespreadlitigationandwasfoundtobeadministrativelydifficulttoimplement.

InMalaysia,thepricecontrolmechanismonaccountofGSTdoesnotfallunderthepurviewoftheGSTAct,butundertheMinistryofDomesticTradeandConsumerAffairs.ThePriceControlandAnti-profiteeringAct,2011hadbeenenacted tocontrolpriceofgoods

andchargeforservicesandtoprohibitunreasonablyhighprofiteeringbysuppliers.ThemechanismtoidentifyunreasonablyhighprofitisgovernedbytheamendmentsbroughtabouttotheActin2014,readwiththePriceControlandAnti-Profiteering(MechanismtoDetermineUnreasonably High Profit) (Net Profit Margin) Regulations, 2014.CountrieslikeCanadaandNewZealandalsohavesimilarprovisions.

CONCLUSION Penalties,tobedeterrentwillalsohavetobedeterminedininterestof customers as well as businesses. It will also have to be ensured thatthereisnohardship,harassmentorundueinterferencebytheAuthority.Atthesametime,businessesareexpectedtobefairandreasonable as otherwise, market forces would lead to fair pricedeterminationinabsenceofanycartelizationorunfairtradepractice.

Itmaybenotedthatanti-profiteeringmeasureinGSTlawismeanttobeadeterrentandisanenablingclausesothatreductionintaxincidenceduetotheGSTispassedontotheconsumers.Thisisacontentious provisionwhich should be triggered only if there is acredible complaint. Both, centre and states in due course, shallprescribe the procedure for filing the complaints where thecomplainanthastoestablishthefactsthatthebenefitoftaxcuthasnotbeenpassedontohimaswellasthequantumofpenaltytobeimposed.Therearemanyaspectsthatarecurrentlyopenended.Anauthority is tobeempowered toexamine this.The finer rulesandregulations and penalties are not yet known. The yardstick thatwould be deployed for such measurement also needs to be spelled out. Toconclude,itcanbesaidthattheantiprofiteeringprovisionshouldbeenforcedinrarecaseasanexception,ratherthanasaruleandshould not become a hindrance in free business environment and as a tool to invite corruption.

AntiprofiteeringmustequallyapplytotheexchequerasGSTshouldalso not result in undue tax collection (i.e., extra ordinary taxrevenuegrowth)which ismuchabove theGDPgrowth itself.Canthatbethoughtofandexplored!Lettherebelevelplayingfieldforeveryone-thetaxcollectorandtaxpayer.Thetaxpaidisalsoacosttoberecoveredfromcustomerasafterallitisanindirecttax. CS


Global experience suggest that anti-profiteering provisions are only effective if there is a significant lead-in time to allow the relevant authority to educate consumers and businesses as to their respective rights and obligations.

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DiveshGoyal,ACSPractisingCompanySecretaryGoyalDivesh&[email protected]

Analysis of Registration Provisions and Transitional Provisions Under GST

1. REGISTRATION REQUIREMENTS UNDER GST LAW1.1 Thelawisveryclearonitspartthatapersonisrequiredtogetregisteredineach

Statefromwherehemakesthetaxablesupply.Further,itprovidesforathresholdofRs.20LakhsorRs.10Lakhsasthecasemaybe,forregistration.ThislimitshallbecalculatedonPANIndiabasisofsuchpersonincludingexemptedsupply,exportsupplyandnon-taxablesupply.

1.2 Thelawalsoprovidesalistof15personswhoarerequiredtogettheregistrationunderGSTirrespectiveofthevalueofturnoveri.e.suchpersonsarerequiredtogetregistrationeveniftheyarenothavinganyoutwardsupply.Listofsuchpersonsaresummarizedasbelow:1.2.1 personsmakinganyinter-Statetaxablesupply,1.2.2 personswhoarerequiredtopaytaxunderreversecharge,1.2.3 personswhomaketaxablesupplyofgoodsorservicesorbothonbehalf ofothertaxablepersonswhetherasanagentorotherwise,1.2.4 InputServiceDistributor,whetherornotseparatelyregisteredunder thisAct;1.2.5 personswhosupplygoodsorservicesorboth,otherthansupplies specifiedundersub-section(5)ofsection9,throughsuchelectronic commerceoperatorwhoisrequiredtocollecttaxatsourceunder section52;

2. EXEMPTION FROM GETTING REGISTRATION UNDER GST2.1 Thereareonlytwosituationswhereapersonwillnotberequiredtogetregistered

underGSTlaw.Thesameisprovidedundersection23ofCGSTAct,2017.2.1.1 Aspersection23ofCGSTAct,2017,anypersonengagedexclusivelyin

thebusinessofsupplyinggoodsorservicesorboththatarenotliableto taxi.e.Non-taxablesupplyorwhollyexemptfromtaxunderthisActor undertheIntegratedGoodsandServicesTaxAct,isnotrequiredtoget registeredunderGST.2.1.2 Also,itprovidesthatanagriculturist,totheextentofsupplyofproduceout ofcultivationofland,isalsonotliabletogetregistration.

2.2 If aperson isengagedexclusively in thebusinessofabovementionedsupplies,thenheisnotrequiredtogetregistered.

3. WHAT CONSTITUTES PLACE FROM WHERE THE PERSON IS MAKING THE SUPPLY WHICH IS REQUIRED TO BE REGISTERED?

3.1 It isnotprovidedinthelaw,thedefinitionorexplanationontheplacefromwherethepersonismakingsupplyandsuchplaceisrequiredtoberegistered.

3.2 The law provides that if the location of supplier and place of supply is in one State thensuchtransactionshallbeIntra-StateSupplyotherwiseInter-StateSupply;

3.3 Todeterminethecategoryofsupply,weshouldknowthelocationofsupplier;3.4 Therefore, the law provides the definition of location of supplier. The location of

suppliermeans,

The author presents an analysis of provisions of GST with respect to the requirement to get the registration under GST law. Now a days the most important question in everyone’s mind is to set forth the principles to decide the requirements to get a place registered or not.

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3.4.1 Theplaceofbusinesswhichisregisteredunder GSTAct,2017;3.4.2 The fixed establishment, which is not registered

underGSTAct,2017;3.4.3 Usualplaceofresidence;

3.5 If the person is providingservicesorgoods or both fromfixed establishmentwhich is not registered, thensuch establishment is required to beregistered andcharge GSTaccordingly. If thepersondoesnotregistersuchfixedestablishment, thenheshallbe required todeposit the tax liable tobepaidfromsuchestablishmentalongwithinterestandpenalty.

3.6 Apartfromtheplaceofbusiness,thetaxablepersonistoeffectsupplyfromaplacewhichhas,(a) Sufficientdegreeofpermanence,and(b) Humanandtechnicalresources.

If these two elements are not present then such place will not bea fixedestablishment. Itwill alsonot bea fixedestablishmentifeventheseelementsarepartiallymissing

4. FACTORS DETERMINING FIXED ESTABLISHMENTS4.1 Wehaveanalyzedandsummarizedthefollowingfactors

whichwoulddeterminethefixedestablishment. Ifsomeof the following factors are positive then it can beconcluded that such establishment shall be required togetregistered:-4.1.1 Whether any premise is taken on rent ? Ifyes,periodofleaseagreement?4.1.2 Whether any sub consultant service or any other

cenvatable service is received for that project inthat State ?

4.1.3 Whetheranyfixedassets ispurchasedinrelationtotheprojectanddeployedinthatState?

4.1.4 No.ofemployeesworkingatsuchotherlocation?4.1.5 Location from where the billing is done to the

client?4.1.6 WhetheranyotherregistrationinaState?4.1.7 Placefromwheretheservicesarerendered?

5. ILLUSTRATIONS5.1 ABC firmofCharteredAccountants, registered inDelhi

conductsstatutoryauditofacompanyxYZLtd.locatedinMaharashtra.Theemployeesofthefirmresidesintheguesthouseofthecompanyfor2monthstocompletetheaudit process in Maharashtra. Whether ABC firm isrequiredtogetregistrationinMaharashtra?

No, since such guest house do not constitute fixedestablishment of the firm.

5.2 ALtd.HavingheadofficeinHaryanaandprojectofficeinBihar.TheclientisalsolocatedinBihar.ALtd.rendersengineeringserviceswithrespecttoaprojectthroughitsteamofemployeesdedicatedtosuchprojectoffice.Thecompany also receives services at such project office.

WhetherALtdisrequiredtogetregistrationinBihar? Since, the company is providing services from project

office located in Bihar through the dedicated team ofemployeesavailable thereonlyandavailingservicesorgoodsatsuchprojectoffice,thenitshouldgetregisteredin Bihar.

TRANSITIONAL PROVISIONS UNDER GST The restoring provisions:-1. Overview:

Theday,01-07-2017,shallberememberedasGSTdayinthehistoryof Indian financial transformation.GST isa lawwhichsubsumesmultipleindirecttaxesleviedbyCentralGovernmentandStateGovernment.This law is internationallyadoptedbymany developed countries. The implementation of the law will beateethingproblemforalltheindustries,traders,etc.To give a better transformation toGST, the law provides fortransitional provisions which deals with multiple issues of existing taxpayers. Let us discuss in brief the major issueswhich are provided in such provisions.

2. Necessary solutions to situations faced by Manufacturers, Traders or Service providers:2.1 Registration under GST for existing taxpayers:

2.1.1 AspertheAct,everyentityregisteredunderanyofthe earlier laws shall be issued a certificate of registrationonaprovisionalbasisunder formREG25 for each state. This certificate will be valid for a periodof3monthswithinwhicharegisteredtaxpayermayhavetofurnishtherequiredinformationforfinalregistration.

2.1.2 The enrollment process has been re-opened from 27-06-2017.

2.2 Cenvat credit or VAT credit(and entry tax) claimed in return filed under earlier law:2.2.1 It is well provided in the law that cenvat credit and

VATcreditrelatingtoearliertaxlawshallbeallowedon thebasis of credit appearing in last return filedunderearlierlaw.Thereareconditionstoavailthis,credit should be admissible under this Act, returnshould have been filed for a period of six monthsprior to 01-07-2017 and credit should not be related

Fixed establishment: -means a place (other than the registered place of business) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;

ANALYSIS OF REGISTRATION PROVISIONS AND TRANSITIONAL PROVISIONS UNDER GST

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tosupplyofexemptedgoods. Itmaybenoted thatlastdateforfilingofservicetaxreturnforApril17toJune17periodis15-08-2017.

2.2.2 Further,thereisprovisionforstateVATdealersthatForm C, F, H, I should be taken from the clients/customers to avail the credit relatable to such supply. Ifnotcollected, thesamemayberefundedasperCSTRules,1957.Thisisacaseofinter-statesalewhere taxeswerepaidwithconcessional rate(eg.CST@2%).

2.3 What about un-availed Cenvat credit or input tax of Capital goods:2.3.1 It will be allowed to carry forward in the electronic

credit ledgerafter filingofFormTRAN1within90days from the appointed day.

2.4 A Person Who Was Not Availing Cenvat Credit or Input Tax Since not Liable to be Registered, Engaged in Supply of Exempted Goods, FSD/SSD, Registered Importer, Depot of Manufacturer but Liable To Tax Under This Act, Whether Eligible To Get Cenvat Credit Or Input Tax on Closing Stock Available As On 30-06-20172.4.1 SuchpersonshallbeeligibletogettheCenvatcredit

orinputcreditonrawmaterialinstock,rawmaterialinsemi-finishedgoodsandfinishedgoodssubjecttofulfillmentofsomeconditions;

2.4.2 Thereshouldbeaduty/taxpayingdocument;2.4.3 Such document should not be of 12 months older

purchaseofrawmaterial;2.4.4 Suchinputsshallbeusedintaxablesupplies;2.4.5 InputtaxcreditshouldbeallowableunderGST;However,if2.4.2conditionisnotsatisfiedthenVATdealeri.e. trader may opt for cash incentive scheme of 40% or 60% of rate of tax under GST. This can be availed byfollowingtherulesprescribed.

2.5 What about the Cenvat credit as per return of a service provider who has taken centralized registration but in GST, having different registration?2.5.1 Suchtaxablepersoniseligibletotransferthecenvat

credit toanyof the registeredpersonhavingsamePAN. There is no specific method prescribed for

distributionhencethetaxpayermaydistributeasperhischoice.ThisshallbecarriedoverasCGST.

2.6 Whether cenvat credit reversed under service tax against non-payment to creditors appearing as on 30-06-2017 can be reavailed under GST?2.6.1 Yes. Under GST the government has provided 3

months’ time period from 01-07-2017 i.e. 30-09-2017 for payment to the vendor and re-avail the unclaimed cenvat credit.

2.7 Taxability of inputs sent to job worker under earlier law:2.7.1 Ifreturnedwithin6monthsfrom01-07-2017thenno

taxshallbepayable.IfnotreturnedthenITCshallberecovered;

2.7.2 Thesaidperiodof6monthsmaybeextendedbythecommissionerforfurther2months;

2.7.3 The inputsorgoodsmaybesent to jobworker forfurtherprocessing,manufacturing,testing,etc;

2.7.4 The detail of such stock lying as on 30-06-2017 is required to be reported under Form TRAN 1 to avail the benefit of above mentioned provisions;

2.8 Input tax credit of Goods in transit2.8.1 The taxpayer should account for such inputs or

serviceswhicharereceivedafter30-06-2017,inthebooksofaccountswithin1monthfrom30-06-2017;

2.9 What about the cases of sales return sold in earlier tax period and returned after 30-06-20172.9.1 The tax paid earlier shall be availed as input tax

creditbythetaxpayer,iftheclientorcustomerwasun-registered. But if sales return from registeredperson then it shall be deemed to be a supply from suchpersontotaxpayer;

2.9.2 Thegoodsshouldhavebeenpurchasednotearlierthan6months;

2.9.3 The goods should not be returned after 6monthsfrom30-06-2017;

Pleasenotethatrevisedreturnshallbeconsideredonlyifitisfiled within 3 months from the appointed date and if there is an increaseincenvatcreditamountclaimedintheoriginalreturn,such increase shall be claimed as refund under earlier law only.

Further,thetaxpayerisalsorequiredtofiletheFormTRAN1within 90 days from 01-07-2017.

PREPAREDNESSInordertoavoidlitigationsonaccountoftransitionalissuesandanyfinancial loss, taxpayer should evaluate transitional requirementsand list down eligible credits, stock details along with status todeterminetheimpactandtransitionalcompliancesrequired.

Wehavehighlighted the key transition issueswhichwhouldhavepractical implications.Therefore, it isvery important toprepareforenabled and efficient processes to meet the peculiar needs of this emerginglaw.

CONCLUSIONWith the above provisions and analysis it is highly advisable toanalyze thecurrentcontractsandcomparewith theprovisions forcorrect compliance of the law. Further, any delay or incorrectdecisioncouldcauseabigfinanciallosstoataxpayer. CS

KuldeepBengani,FCSkuldeepBengani&AssociatesLLPCompany [email protected]

ANALYSIS OF REGISTRATION PROVISIONS AND TRANSITIONAL PROVISIONS UNDER GST

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Composition Levy Under GST- A Boon or BaneINTRODUCTION

T heappointeddateforGoodsandServicesTaxLaw(GSTLaworGST)roleoutis1stofJuly,2017.GSTLawwillaffect,directlyandindirectly,eachandeverysectorandperson.Asoftoday,itappearsthatcomplianceburdenunderGSTLawistoincreasesignificantlyandmoreparticularly,itwillbedifficultforthesmalltraderstocomplywithcomplexGSTLawcompliancesintimeboundmanner.Therefore,torelaxtheburdenofcompliance for small businesses especially small retailers or traders, a compositionschemehasbeenintroducedunderGSTLaw,wheretheassesseeshavetopaytaxataminimumratebasedontheirturnover.ThisismostlysimilartotheprovisionsinVATlaws of States.

WHAT IS A COMPOSITION SCHEME?AcompositionschemeunderGSTLawisaschemewhichisoptionalinnatureandisprovidedforsmallsuppliersandmanufacturers topayfixedamount inprescribedper-cent,inlieuoftaxpayableinnormallevy.Section10oftheCentralGoodsandServiceTaxAct,2017(CGST)readwithCompositionrulescontainstheprovisionwithrespecttoregistration,levy,rates,etc.undercompositionscheme.

ADVANTAGES OF COMPOSITION SCHEMEBelow are important advantages under the composition scheme:1. LesserCompliance: UnderGSTLawanormal registeredpersonhas to filemini-

mum 3 returns monthly and one annual return. It is difficult for small traders and manufacturers to maintain detailed books of accounts on a daily basis and record every transaction with supporting documents. On the other hand, in compositionscheme,onlyaquarterlyreturnistobeuploadedinFormGSTR-4.Thiswillreducethe compliance burden for small traders andmanufacturers, and they can focusmoreontheirbusinessactivitiesratherthangettingoccupiedincompliancemanage-ment.

2. LimitedTaxLiability:Underthecompositionscheme,thetaxratefortaxpayerwhohasopted forcompositionscheme isonly2%,5%and1%(CGST+SGST)of theaggregate turnover for manufacturers, restaurant service providers and othersrespectively.SmallsuppliersespeciallyB2Csupplierscangetgoodbenefitundercomposition scheme.

3. More Liquidity: In case of normal registered taxpayers, working capital will getblockedinInputTaxcreditbecausehecanavail theinputonlyif,hissupplierhasfiledthereturn.Soworkingcapitalrequirementsofnormalregisteredtaxpayersmayincrease.Whereas in composition levy scheme, dealer need notworry about hissuppliersfilingreturnashecannottakeanyinputtaxcreditandhewillpaytaxatanominal rate.

4. LevelPlayingField:Sincetherateoftaxundercompositionschemeisverylowandminimumcompliances to bemade, the profitmargin of a supplier in compositionschememay bemore than a large normal taxpayer. Thus, the supplierwho has

GST Law will affect, directly and indirectly, each and every sector and person. It appears that compliance burden under GST Law is to increase significantly and more particularly, it will be difficult for the small traders to comply with complex GST Law in time bound manner. To relax the burden of compliance for small businesses especially small retailers or traders, a composition scheme has been introduced under GST Law, where the assessees have to pay tax at a minimum rate based on their turnover, mostly similar to the provisions under VAT laws of States.

KuldeepBengani,FCSkuldeepBengani&AssociatesLLPCompany [email protected]

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opted for composition scheme may outplay the economies ofscaleoflargeenterprisesbyofferingcompetitiveprices.

DRAWBACKS OF COMPOSITION SCHEMEDrawbacks of Composition Scheme are:1. Restricted place for Business: A taxpayer registered

under the composition scheme cannot carry:ainter-statetransactions;

a import-exportofgoodsandservicesorboth. Therefore,heisforcedtocarryoutonlyintra-statetransac-

tions and this limits the territory of his business and his growthprospects.

2. No Credit of Input Tax: Any dealer registered underComposition Scheme cannot avail the benefit of takingcredit of input tax credit on inward supplies (purchases).Also, thebuyer including registeredbuyerof thosegoodswillnotgettheinputtaxcreditonhispurchases.Eventually,suchbuyersmightavoidpurchases fromasupplier regis-tered under composition scheme.

3. Pay tax from own pocket:Thoughtherateofcompositiontaxiskeptverylowat1%,2%or5%(CGST+SGST),buta taxpayer under composition scheme is not allowed torecover such tax fromhisbuyerandhe is not allowed toraiseataxinvoice.Consequently,theburdenofsuchtaxiskeptonthetaxpayerhimselfandthishastobepaidoutofhis own pocket.

4. Strict Penal provisions:UtmostcarehastobetakenwhiletakingbenefitofcompositionlevyunderGSTLawbecausethepenalprovisionsareverysevere.Ifbyanychance,itisestablished that theassessee iswrongly registeredundercompositionscheme,not fulfilling therequiredcriteriaandtherebyavoidingtaxesmayleadtoadverseconsequences.The defaulter will be then asked to pay taxes alongwithpenalty,which isequal to100%of taxesputonhim.Thepenaltywillnotbeleviedwithoutgivingashowcausenoticeto the dealer.

ELIGIBLE PERSONS FOR COMPOSITION SCHEME UNDER GST (SECTION 10(1) OF CGST)1. A registeredperson,whoseaggregate turnover in thepre-

cedingfinancialyeardidnotexceed75lakhrupees,mayopttopay, in lieuof the taxpayablebyhim,anamountcalcu-latedatsuchrateasmaybeprescribed(bywayofRules).

2. TheGovernmentmay,bynotification,increasethesaidlimituptoonecrorerupees,asmayberecommendedbytheCouncil.

Important pointsi. Section10(1)ofCGSTissubjecttotheprovisionsofsub-

sections (3) and (4) of section 9 relating to levy under

reversechargemechanism.ii. Getting registered under composition scheme is optional

and voluntary.iii. ForspecialcategorystatesexceptUttarakhand, this turn-

over limit has been reduced to fifty lakh (50 lakhs) rupees. Special Category States where limit is Rs. 50 Lakhs areAssam,ArunachalPradesh,Manipur,Meghalaya,Mizoram,Nagaland,Tripura,SikkimandHimachalPradesh.

iv. Registered person: As per section 2 (94) ofCGSTAct,“registered person” means a person who is registeredunder section25butdoesnot includeapersonhavingaUniqueIdentityNumber;

v. Aggregate turnover: As per section 2 (6) of CGST Act“aggregateturnover”meanstheaggregatevalueofalltax-able supplies (excluding the value of inward supplies onwhichtaxispayablebyapersononreversechargebasis),exemptsupplies,exportsofgoodsorservicesorbothandinter-StatesuppliesofpersonshavingthesamePermanentAccount Number, to be computed on all India basis butexcludes central tax, State tax, Union territory tax, inte-gratedtaxandcess.

vi. Financial year:“Financialyear”shallmeantheyearcom-mencingonthefirstdayofApril.

DISQUALIFICATION FOR COMPOSITIONSCHEME (SECTION 10 (2) OF CGST)1. Theregisteredpersonshallbeeligible tooptcomposition

scheme,if:—(a) heisnotengagedinthesupplyofservices-otherthan

supplies referred to in clause (b) of paragraph 6 ofScheduleII;

(b) heisnotengagedinmakinganysupplyofgoodswhicharenotleviabletotaxunderCGSTAct;

(c) he is not engaged inmakingany inter-Stateoutwardsuppliesofgoods;

(d) he is not engaged in making any supply of goodsthrough an electronic commerce operator who isrequired to collect tax at source under section 52 ofCGSTAct;and

(e) heisnotamanufacturerofsuchgoodsasmaybenoti-fiedbytheGovernmentontherecommendationsoftheCouncil.

(f) The composition scheme is not available for manufac-turers of tobacco and manufactured tobacco substi-tutes,pan-masalaandice-creamandotheredibleice,whetherornotcontainingcocoa.

2. WheremorethanoneregisteredpersonishavingthesamePermanent Account Number, the registered person shallnot be eligible to opt for the scheme under CompositionSchemeunlessallsuchregisteredpersonsopttopaytaxunder Composition Scheme.

Important points:i. asperclause (b)ofparagraph6ofSchedule IIofCGST

Act,compositesuppliesbywayoforaspartofanyserviceorinanyothermannerwhatsoever,ofgoods,beingfoodorany other article for human consumption or any drink (other thanalcoholic liquorforhumanconsumption),wheresuchsupply or service is for cash, deferred payment or othervaluable consideration shall be treated as supply of servic-es.Exceptaboveservicenootherserviceprovidercanoptfor composition scheme.

ii. Alcoholforhumanconsumptionandpetrolandpetroleumprod-

COMPOSITION LEVY UNDER GST- A BOON OR BANE

If the proper officer has reasons to believe that a taxable person has paid tax under composition scheme despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of tax and penalty.

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uctsareGoodswhicharenotliabletotaxunderCGSTAct.

CONDITION AND RESTRICTIONS FOR COMPOSITION SCHEME (SECTION 10 (4) OF CGST ACT READ WITH RULE 3 OF COMPOSITION RULES) (i) A taxable person to whom the provisions of composition

schemeapplyshallnotcollectanytaxfromtherecipientonsupplies made by him nor shall he be entitled to any credit ofinputtax.(Section10(4)ofCGSTAct)

(ii) Thepersonexercisingtheoptiontopaytaxundersection10 (Composition scheme) shall complywith the followingconditions(rule3ofCompositionRules):(a) he isneitheracasual taxablepersonnoranon-resi-

denttaxableperson;(b) thegoodsheld instockbyhimon theappointedday

have not been (i) purchased in the course of inter-State trade or commerce or (ii) imported from a place outside India or (iii) received from his branch situated outside the State or from his agent or principal outside theState,wheretheoptionofcompositionschemeisexer-cisedbywayofintimationbypersonsregisteredundertheexistinglawmigratingontheappointedday.

(c) the goods held in stock by him have not been pur-chasedfromanunregisteredsupplierandwherepur-chased from unregistered supplier, he pays the taxunder section 9(4) of CGST (Reverse ChargeMechanism).CompositionsuppliershallpaytaxunderReverse Charge Mechanism at normal rate of taxapplicable to such supply and not at the rate applicable forhis/her category. It is clarifiedby theGovernmentthatthetransactionofRs.5000/-perdayexemptionwillbegiveninrespectofsuppliesreceivedfromunregis-tered person for the supplies above this amount, amonthly consolidated bill can be raised.

(d)heshallpay taxundersub-section (3)orsub-section(4)ofsection9ofCGST(ReverseChargeMechanism)oninwardsupplyofgoodsorservicesorboth;

(e) hewasnot engaged in themanufactureof goodsasnotified under clause (e) of subsection (2) of section 10 ofCGST,duringtheprecedingfinancialyear;

(f) heshallmention thewords “composition taxableper-son,noteligibletocollecttaxonsupplies”atthetopofthebillofsupplyissuedbyhim;and

(g) heshallmention thewords “composition taxableper-son” on every notice or signboard displayed at aprominent place at his principal place of business and at every additional place or places of business.

(2)The registered person paying tax under section 10(Composition scheme) may not file a fresh intimation every yearandhemaycontinuetopaytaxunderthesaidsectionsubjecttotheprovisionsoftheActandtheserules.

Important points:i. Casualtaxableperson:AsperSection2(20)ofCGSTAct,

“casualtaxableperson”meansapersonwhooccasionallyundertakes transactions involvingsupplyof goodsor ser-vices or both in the course or furtherance of business,whether as principal, agent or in any other capacity, in aStateoraUnion territorywherehehasno fixedplaceofbusiness;

ii. Non-resident taxable person: As per Section 2 (77) ofCGSTAct, “non-resident taxableperson”meansanyper-son who occasionally undertakes transactions involvingsupplyofgoodsorservicesorboth,whetherasprincipaloragentorinanyothercapacity,butwhohasnofixedplaceofbusinessorresidenceinIndia;

LAPSE OF COMPOSITION SCHEME (SECTION 10 (3) OF CGST ACT)Theoptionavailedofbyaregisteredpersonundercompositionschemeshalllapsewitheffectfromthedayonwhichhisaggre-gateturnoverduringafinancialyearexceedsthespecifiedlimitsi.e. 75 lakhs or 50 lakhs (for special states).

PENALTY (SECTION 10 (5) OF CGST)Iftheproperofficerhasreasonstobelievethatataxablepersonhaspaid taxundercompositionschemedespitenotbeingeli-gible,suchpersonshall,inadditiontoanytaxthatmaybepay-ablebyhimunderanyotherprovisionsofthisAct,beliabletoapenalty and the provisions of section 73 or section 74 shall,mutatismutandis,applyfordeterminationoftaxandpenalty.

RATE OF TAX OF THE COMPOSITION LEVYThecategoryof registeredpersonsspecified in column (2)oftheTablebelowshallpaytaxattheratespecifiedincolumn(3)oftheTablegivenbelow:SN Category of registered

personsRate of tax

(1) (2) (3)A Manufacturers,otherthan

manufacturers of suchgoodsasmaybenotifiedbytheGovernment

2%(1%SGST+1%CGST)

B Suppliersmakingsuppliesreferred to in clause (b)ofparagraph6ofScheduleII

5%(2.5%SGST+2.5%CGST)

C Anyothersuppliereligiblefor composition levy

1%(0.5%SGST+0.5%CGST)

Important points:i. Manufacture:Aspersection2(72)ofCGSTAct,“manufac-

ture” means processing of raw material or inputs in anymannerthatresultsinemergenceofanewproducthavingadistinctname,characteranduseandtheterm“manufac-


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turer”shallbeconstruedaccordingly.

INTIMATION FOR COMPOSITION LEVY (RULE 1 COMPOSITION RULES)Any person willing to opt for composition scheme has to fileIntimationdulysignedorverifiedthroughelectronicverificationcode(EVC),ontheCommonPortal.Rule1ofthecompositionRulesdealswith theprocedure.UndercompositionRules inti-mationcanbeclassifiedunderfollowingthreeheads:1. persons registered under the existing law migrating on

the appointed day: a. Any person who has been granted registration on a

provisionalbasisandwhooptstopaytaxundersection10 (Composition Scheme), shall electronically file anintimationinFORMGSTCMP-01,priortotheappoint-edday,butnotlaterthanthirtydaysaftertheappointedday,orsuchfurtherperiodasmaybeextendedbytheCommissioner in this behalf.

b. where the intimation in FORM GST CMP-01 is filedaftertheappointedday,theregisteredpersonshallnotcollectanytaxfromtheappointeddaybutshall issuebill of supply for supplies made after the said day.

c. Anyprovisionally registeredpersonwho filesan inti-mation to pay tax under section 10 (CompositionScheme)shallfurnishthedetailsofstock,includingtheinward supply of goods received from unregisteredpersons, held by him on the day preceding the datefromwhichheoptstopaytaxunderthesaidsection,electronically,inFORMGSTCMP-03,ontheCommonPortalwithin60daysofthedatefromwhichtheoptionforcompositionlevyisexercisedorwithinsuchfurtherperiodasmaybeextendedbytheCommissionerinthisbehalf.

2. Persons newly registering under the ActAny person who applies for registration for the first timemaygiveanoptiontopaytaxundersection10(CompositionScheme)inPartBofFORMGSTREG-01(GSTRegistrationForm),whichshallbeconsideredasanintimationtopaytaxunder composition scheme.

3. A persons registered under the ActAnyregisteredpersonwhooptstopaytaxundersection10(Composition Scheme) shall electronically file an intimation inFORMGSTCMP-02priortothecommencementofthefinancial year for which the option to pay tax under theaforesaid section isexercisedandshall furnish the state-mentinFORMGSTITC-3withinsixtydaysfromthecom-mencement of the relevant financial year.

EFFECTIVE DATE FOR COMPOSITION LEVY (RULE 2 COMPOSITION RULES)(1) The option to pay tax under section 10 (Composition

Scheme)shallbeeffectivefromthebeginningofthefinan-cialyear,wheretheintimationisfiledundersub-rule(3)ofrule 1 of composition rule and the appointed day where intimation is filed under sub-rule (1) of the rule 1 of compo-sition rule.

(2) The intimation under sub-rule (2) of rule 1 of composition rule shall be consideredonly after grant of registration tothe applicant and his option to pay tax under section 10(CompositionScheme)shallbeeffectivefromthedatefixedunder sub-rule (2) or (3) of rule.

Tabular presentation for effective date for composition levy

for ease of understanding:Theoptiontopaytaxunderthisschemeshallbeeffectivefromthedatebaseduponthetimingoffilingofintimationsbasedoncategoryofperson:Rule Category of person Effective Date to pay tax under

composition scheme

Rule1(1)

Intimation is filed by personsregisteredundertheexistinglawmigratesto composition levy

Appointedday

Rule1(3)

Intimation is filed by registeredpersonsandOptforCompositioninfuture

BeginningofFinancialYear

Rule1(2)

Intimation is filed by a personnewlyregisteringunderGSTLaw

a. The intimation shall be consideredonlyafterregistrationb.effectivefromtheDateonwhich the person becomes liable toregistrationwheretheapplicationforregistrationsubmittedwithin30days,ifnot,thendateofgrantofregistration.

VALIDITY OF COMPOSITION LEVY (RULE 4 COMPOSITION RULES)(1) The option exercised by a registered person to pay tax

underCompositionSchemeshall remainvalidso longashe satisfies all the conditions mentioned in the said section and related composition rules.

(2) Registered person who opted for Composition Schemeshallbe liable topay taxundersection9(1)ofCGSTActfrom the day he ceases to satisfy any of the conditions mentioned in section 10 or related composition rules and shallissuetaxinvoiceforeverytaxablesupplymadethere-after and he shall also file an intimation for withdrawal from thescheme inFORMGSTCMP-04within sevendaysofoccurrence of such event.

WITHDRAWAL FROM COMPOSITION SCHEMETheregisteredpersonwhointendstowithdrawfromthecompo-sitionschemeshall,beforethedateofsuchwithdrawal,fileanapplication in FORM GST CMP-04, duly signed or verifiedthroughEVC,electronicallyontheCommonPortal.

DENIAL OF COMPOSITION SCHEME1. Where the proper officer has reasons to believe that the

registeredpersonwasnoteligibletopaytaxundersection10or has contravened theprovisionsof theAct or theserules,hemayissueanoticetosuchpersoninFORMGSTCMP-05toshowcausewithinfifteendaysofthereceiptofsuchnoticeas towhyoption topay taxundersection10should not be denied.

2. Upon receipt of reply to the show cause notice from theregisteredpersoninFORMGSTCMP-06,theproperofficershall issue an order in FORMGST CMP-07 within thirtydaysofreceiptofsuchreply,eitheracceptingthereply,ordenyingtheoptiontopaytaxundersection10fromthedateof option or from the date of the event concerning suchcontravention,asthecasemaybe.

Note:


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i. Everypersonwhohasfurnishedanintimationofwithdrawalor filed an application for withdrawal or a person in respect of whom an order of withdrawal of option has been passed in FORMGSTCMP-07,may electronically furnish at theCommonPortal,astatementinFORMGSTITC-01contain-ing details of the stock of inputs and inputs contained insemi-finishedorfinishedgoodsheldinstockbyhimonthedateonwhichtheoptioniswithdrawnordenied,within30days,fromthedatefromwhichtheoptioniswithdrawnorfromthedateoforderpassedinFORMGSTCMP-07,asthe case may be.

RETURNS UNDER COMPOSITION SCHEME • Quarterlyreturn[GSTR-4]isrequiredtobefiledbycompo-

sition supplier till 18th of the month succeeding quarter.Composition supplier shall also be required to file annualreturninFormGSTR-9A.

• Invoice wise details are not necessary, bill of supply willsuffice.

• CompositiondealersarenotrequiredtogiveHSNcodeintheir returns and they need not mention HSN Code inInvoice, but description of goods is required to be men-tioned in the Invoice.

GST COMPOSITION SCHEME FORMATSFormNo. DescriptionGST CMP-01 Intimationtopaytaxundersection10(composition

levy)(Onlyforpersonsregisteredundertheexistinglawmigratingontheappointedday)

GST CMP-02 Intimationtopaytaxundersection10(compositionlevy)(ForpersonsregisteredundertheAct)

GST CMP-03 Intimation of details of stock on date of opting forcompositionlevy(Onlyforpersonsregisteredundertheexistinglawmigratingontheappointedday)

GST CMP-04 Intimation/Application for withdrawal fromcompositionLevy

GST CMP-05 Noticefordenialofoptiontopaytaxundersection10

GST CMP-06 ReplytothenoticetoshowcauseGST CMP-07 Order for acceptance / rejection of reply to show

cause notice

TRANSITIONAL PROVISIONSAnytaxpayerwhoisinCompositeSchemeundercurrentregimeand transits toRegularTaxationunderGSTwillbeallowed totakethecreditofInput,semi-finishedgoodsandfinishedgoodsonthedayimmediatelyprecedingthedatefromwhichtheyopttobetaxedasaregulartaxpayer.Theinputscanonlybeavailedsubjecttofewconditionssuchas;a. Those inputsorgoodsaremeant formaking taxableout-

wardsuppliesunderGSTprovisions.b. The dealer taking the InputCredit was eligible under the

previousregimebutcouldnotclaimduetoregisteredunderComposition Scheme.

c. ThetaxpayerclaimingInputcreditongoods, thosegoodsshouldbeeligibleforsuchcreditunderGSTregime.

d. Thetaxpayermusthaveavalidlegaldocumentofinputtaxcrediti.e.hemustpossessaninvoiceevidencingthattaxesor duties have been paid.

e. Those invoices or documents should not be older than 12 months before the appointed date.

f. GSTTRAN-1tobefiledwithin90daysfromappointeddaytoclaimtheinputtaxcreditlyingwithstockason30thJune,2017.

Whenataxpayerisshiftingfromanormalschemetocomposi-tionscheme,thetaxpayerhastopayanamountwhichshallbeequaltothecreditofinputtaxinrespecttothoseinputswhichareheldasstockon the immediatelyprecedingdate fromthedateofsuchswitchover.AnybalancewhichisleftinInputTaxCreditaccountaftersuchpayment,thenthatbalancewilllapseand not usable.

CONCLUSIONCompositionschemehasitsownmeritsanddemerits,depend-ingupontypeofbusiness,typeoftransaction,etc.Thebiggestconfusion is for small dealers,whether to opt for compositionscheme or not?1. BusinesstoBusiness(B2B):Ifataxablepersoniscarrying

outbusinessonB2Bmodel,itistoughcallforhimtooptfortheregistrationasacompositiondealer.Ifheoptsforcom-positionScheme,suchapersoncannotavailtheinputtaxcredit.Furtherthebuyerofgoodsformcompositiondealercannot get any input tax credit, whichmay result in costincreaseduetocascadingeffect.Thismayresultinalossofbusinessforabuyerregisteredasanormaltaxpayerandwho buys from a person registered under compositionscheme. Eventually, such buyers might avoid purchasesfromataxpayerundercompositionlevy.

2. BusinesstoConsumer(B2C):Ifataxablepersoniscarry-ingoutbusinessonB2Cmodel,itmaybeadvantageousforhim to opt for composition scheme. If the composition rate islowandthenetmarginsarehigher,compositionschememay turn out to be a profitable option for the small B2C trader or manufacturer.

Therefore, it isadvisable to thesupplierswhoareplanning toopt for composition scheme that they should always do proper cost benefit analysis before taking the decision to register ascomposition dealer. CS

Where the proper officer has reasons to believe that the registered person was not eligible to pay tax under section 10 or has contravened the provisions of the Act or these rules, he may issue a notice to such person in Form GST CMP-05 to show cause within fifteen days of the receipt of such notice as to why option to pay tax under section 10 should not be denied.


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ManishJain,ACSManagingPartnerJainM&Associates,[email protected]

Reverse Charge Mechanism – Major Change Under GST

GOODS AND SERVICES TAX (GST) - MEANINGInsimpletermsGSTisadestinationbasedconsumptiontaxmeaningtherebythatGSTwillbeleviedongoods/servicesintheStateinwhichitisconsumed.GSTabiggest indirect tax reformof Indiawillchange themannerofdoingbusiness.AfterimplementationofGSTvariousindirecttaxeswillbesubsumedunderGST:-1. CentralExciseDuty.2. DutiesofExcise(MedicinalandToiletPreparations).3. AdditionalDutiesofExcise(GoodsofSpecialImportance).

4. AdditionalDutiesofCustoms.5. SpecialAdditionalDutyofCustoms.6. ServiceTax.7. CentralSurchargesandCessessofarastheyrelatetosupplyofgoodsandservices.8. StateVAT.9. CentralSalesTax.10. LuxuryTax.11. Entrytax.12. EntertainmentandAmusementTax(exceptwhenleviedbythelocalbodies).13. TaxesonAdvertisements.14.PurchaseTax.15. Taxesonlotteries,bettingandgambling.16. StateSurchargesandcessessofarastheyrelatetosupplyofgoodsandservices.

GSTisadualtaxstructurebasedtaxinwhichbothCentreandStatehasauthoritytolevyandcollecttaxandisasingleratetaxmeaningtherebythataparticularGSTrateonaproduct/service is same in the whole India.Till date Government has finalised different rates fordifferentGoods/Services3%,5%,12%,18%and28%andexportwillbezerorated.

GSTisleviableonsupplyofgoods/servicesbetweentaxablepersonsatsuchrateasmaybenotifiedbyGovernmentandcollectedinthemannerprescribed.ItisclearthatGSTwouldbeapplicableon“SUPPLY”ofgoodsorservicesasagainst thepresentconceptof taxonthemanufactureofgoodsoronsaleofgoodsoronprovisionofservices.

BENEFITS OF GST(a) Simplertaxregimewithfewerexemptions.(b) Reductions in the multiplicity of taxes that are at present governing our indirect tax

systemleadingtosimplificationanduniformity.(c) Reduction incompliancecosts -Nomultiple recordkeeping foravarietyof taxes-so

lesserinvestmentofresourcesandmanpowerinmaintainingrecords.(d) Simplifiedandautomatedproceduresforvariousprocessessuchasregistration,returns,

Reverse Charge Mechanism (RCM) as introduced in GST will totally change the way business is done. it is introduced to increase tax compliance and tax revenues and to make organised economy which will ultimately help in nation building. Hence it is important to understand the provisions of RCM not only for professionals but also for the business, traders and others who are required to comply with RCM provisions under GST.

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REVERSE CHARGE MECHAISM – MAJOR CHANGE UNDER GST

refunds,taxpayments,etc.(e) AllinteractiontobethroughthecommonGSTNportal-soless

publicinterfacebetweenthetaxpayerandthetaxadministration.(f) Will improve environment of compliance as all returns to be

filedonline,inputcreditstobeverifiedonline.(g) Finalpriceofgoodsisexpectedtobelowerduetoseamless

flowofinputtaxcreditbetweenthemanufacturer,retailerandservice supplier.

(h) Refund procedures under GST are convenient and timebound.

(i) SingleTaxStructureacrossCountrywillmakeboundarylessbusiness comfortable.

(j) GSTwillmakeIndianEconomyfromunorganizedtoorganizedeconomywhichwillhelpinoverallDevelopmentofCountry.

REVERSE CHARGE MECHANISM (RCM)GSTwill be collected by the supplier of goods/services from theperson/entity to whom the taxable supply of Goods or ServicesmadeanddeposittoGovernmentaccount.ThisistheGeneralRuleofBusiness.Butiftheliabilityoftaxdepositlieswiththerecipientof goods/services then this mechanism is called “REVERSECHARGE MECHANISM”. All of us are already familiar with thismechanism under Service Tax. Services covered under reversechargeinoldregimeare:(1) Services by an insurance agent to any person carrying on

insurance business.(2) Services by a recovery agent to a banking company or a

financialinstitutionoranon-bankingfinancialcompany.(3) Services by a goods transport agency in respect

oftransportationofgoodsbyroad.(4) Services by way of sponsorship and. (5) others.NowunderGSTregimeReverseChargewillbeapplicabletobothGoodsandServices.As per Section 9(3) of IGST, the Government may, on therecommendationsoftheCouncil,bynotification,specifycategoriesofsupplyofgoodsorservicesorboth, the taxonwhichshallbepaid on reverse charge basis by the recipient of such goods orservicesorbothandalltheprovisionsofthisActshallapplytosuchrecipientasifheisthepersonliableforpayingthetaxinrelationtothesupplyofsuchgoodsorservicesorboth.The major change is that reverse charge mechanism applies togoods also. The goods and services on which reverse chargemechanismapplieswillbenotifiedbytheGSTCouncil.TilldatenoGoods are notified but 12 services are notified in GST Councilmeetingon19.05.2017onwhichreverseChargeapplies.

ServicesunderReverseChargeasApprovedbyGSTCouncilare:-S. No

Service Provider of Service

Percentage of GST payable by service provider

Recipient of Service Percentage of GST payable by any person other than the service provider

1. Taxableservicesprovidedoragreedto be provided by any person who is located in a non-taxableterritoryand received by any person located inthetaxableterritory other than non-assessee online recipient (OIDAR)

Anyperson who is located in a non taxableterritory

NIL Anypersonlocatedinthetaxableterritoryotherthannon-assessee online recipient (BusinessRecipient)

100%

2. Services provided oragreedtobeprovided by a goodstransportagency(GTA)inrespect of transportation of goodsbyroad

GoodsTransport Agency(GTA)

NIL (a) anyfactoryregisteredunderorgovernedbytheFactoriesAct,1948;

(b) anysocietyregisteredundertheSocietiesReg-istrationAct,1860orunder any other law for thetimebeinginforceinanypartofIndia;

(c) any co-operative society established by or under anylaw;

(d) anypersonregisteredunderCGST/SGST/UTGSTAct;

(e) any body corporate estab-lished,byorunderanylaw;or

(f) any partnership firm whetherregisteredornotunderanylawincludingassociation of persons.

(g)Casualtaxableperson

100%

3. Services provided oragreedtobeprovided by an individual advocate or firm of advocates bywayoflegalservices,directlyorindirectly

Anindividual advocate or firm of advocates

NIL Anybusinessentity. 100%

4. Services provided oragreedtobeprovided by an arbitral tribunal

Anarbitraltribunal


5. Sponsorship services

Anyperson

NIL Anybodycorporateorpartnership firm

100%

6. Services provided oragreedtobeprovided by Governmentorlocal authority excluding,-(1)rentingofimmovable property,and(2) services specified below- (i) services by the DepartmentofPostsbywayofspeedpost,expressparcelpost,lifeinsurance,andagencyservices provided to a person other thanGovernment;(ii) services in relation to an aircraftoravessel,inside or outside the precincts of a portoranairport;(iii) transport of goodsorpassengers

Governmentor local authority


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7. Services provided oragreedtobeprovided by a director of a company or a body corporate to the said company or thebodycorporate;

Adirectorof a company or a body corporate

NIL Acompanyorabodycorporate.

100%

8. Services provided oragreedtobeprovided by an insuranceagenttoanypersoncarryingon insurance business

Arecovery agent

NIL Abankingcompanyorafinancial institution or a nonbankingfinancialcompany.

100%

9. Services provided oragreedtobeprovided by a recoveryagenttoabankingcompanyor a financial institution or a non-bankingfinancialcompany

Arecovery agent

NIL Abankingcompanyorafinancial institution or a nonbankingfinancialcompany.

100%

10. Services by way of transportation of goodsbyavesselfrom a place outside India up to the customs station of clearance in India

Apersonlocated in non-taxableterritory to a person located in non-taxableterritory

NIL Importer as defined under clause(26)ofsection2oftheCustomsAct,1962.

100%

11. Transfer or permittingtheuseorenjoymentofacopyrightcoveredunder clause (a) of sub-section (1) of section 13 of the CopyrightAct,1957relatingtooriginalliterary,dramatic,musical or artistic works

Authorormusic compos-er,pho-tographer,artist,etc

NIL Publisher,Musiccompany,Producer

100%

12. RadiotaxiorPassengerTransport Services providedthroughelectronic commerce operator

TaxidriverorRentacab operator

NIL Anyperson 100% by ElectronicCommerce Operator

It is very much clear that there is no concept of partial reverse chargeunderGSTlawwhichispresentinServiceTaxLaw.

REVERSE CHARGE – UNREGISTERED TO REGISTERED NowthemostimportantprovisionofreversechargeunderGSTisSection9(4).ItsaysthattheGSTinrespectofthesupplyoftaxable goods or services or both by a supplier, who is notregistered,toaregisteredpersonshallbepaidbysuchpersononreversechargebasisastherecipientandalltheprovisionsof thisAct shall apply tosuch recipientas if he is thepersonliableforpayingthetaxinrelationtothesupplyofsuchgoodsor services or both.Itimpliesthatanyregisteredpersonifhereceivesanytaxablegoods or services from an unregistered person then therecipientwillbeliabletopaytaxonsuchgoods/servicestoGovtaccount.This section will hurt many dealers and service providers as this will increase there compliance burden and also block theirworkingcapital.Letusunderstandthisprovisionwiththehelpofanexample:-AGST registered Company takes services of an unregisteredComputerengineerforrepairofofficeLaptopthenaregisteredcompany has to pay GST on the services received from anunregistered computer engineer as a recipient and deposit toGovernmentAccount.This provision is going to be a crucial provision as manyregistered service provider and dealers purchase goods or

takesservicesfromunregisteredsuppliers/serviceproviders.Sotheir compliance burden will be increased.

REVERSE CHARGE FOR E COMMERCE OPERATOR FOR SERVICESSection9(5)of IGSTAct,2017provides that theGovernmentmay, on the recommendations of theCouncil, by notification,specifycategoriesofservicesthetaxonintra-Statesuppliesofwhich shall be paid by the electronic commerce operator if such servicesaresuppliedthroughit,andalltheprovisionsofthisActshall apply to such electronic commerce operator as if he is the supplier liable for paying tax in relation to the supply of suchservices: Providedthatwhereanelectroniccommerceoperatordoesnothave a physical presence in the taxable territory, any personrepresentingsuchelectroniccommerceoperatorforanypurposeinthetaxableterritoryshallbeliabletopaytax:Provided further that where an electronic commerce operatordoesnothaveaphysicalpresenceinthetaxableterritoryandalsohedoesnothavearepresentativeinthesaidterritory,suchelectronic commerce operator shall appoint a person in the taxableterritoryforthepurposeofpayingtaxandsuchpersonshallbeliabletopaytax.Letusunderstandwithexample-xyz.comprovidesservicesofhelpers. xyz.com is liable to payGST and collect it from thecustomersinsteadoftheregisteredserviceproviders.

REGISTRATION REQUIREMENT UNDER REVERSE CHARGEThepersonwhoisrequiredtopayGSTundersection9(3)aremandatorily required toget registeredasper section24(iii) oftheCGSTAct,2017.Section9(4)ofIGSTAct2017forreversechargeappliestoonlyregisteredpersons.E-Commerce Operator/representative/appointed person shallbe required to registeraspersection24(iii)of theCGSTAct,2017.SoallpersonswhoarerequiredtopaytaxunderreversechargehavetoregisterforGSTirrespectiveofthethresholdlimits.

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TIME OF SUPPLY UNDER REVERSE CHARGETimeofSupplyofgoodsincaseoftaxpayableunderreversecharge

Thetimeofsupplywillbetheearliestofthefollowingdates:a) Dateofreceiptofgoods;orb) Dateonwhichpaymentismade;orc) The date immediately following 30 days from the date of

issue of invoice by the supplier.

TimeofSupplyofserviceincaseoftaxpayableunderreversechargeThetimeofsupplywillbetheearlierofthefollowingdates:a) Dateonwhichpaymentismade;orb) Thedateimmediatelyfollowingsixtydaysfromthedateof

issue of invoice by the supplier.

INPUT TAX CREDIT ON REVERSE CHARGETaxpaidonreversechargebasiswillbeavailableforinputtaxcreditifsuchgoodsand/orservicesareused,orwillbeused,forbusiness.Thepersonwhopurchasesgoodsorservicerecipient(i.e.whopaysreversetax)canavailinputtaxcredit.

EXCEPTION TO REVERSE CHARGE The exception of reverse charge is that if exempted or nontaxablegoods/servicesreceived fromanunregisteredsupplierthen registeredpersonshall notbe required topay taxunderreversechargeandifthetransactionsarebetweenunregisteredpersonsmeaningtherebyifboththesupplierandrecipientareunregisteredthennoneedfortax.

CHALLENGES FOR PROFESSIONALS UNDER REVERSE CHARGEAs of now one understands very well the concept of reversechargeunderGST.ThemainprovisionwhichwillaffectmajorityofthepersonsistheprovisionofSection9(4)ofIGSTAct,2017in which registered person has to pay tax for the purchases/inputservicesfromanunregisteredperson.

We hereby talk mainly about professionals who are in practice and provide consultancy and other services. If they currently havenotregisteredunderservicetaxbecauseofthresholdlimitand shall also not take registration under GST then if theyprovideanyservicestoanyregisteredcompany,LLPetc.thenthat Company/LLP has to pay GST under the provision ofsection 9(4) of IGST Act, 2017 and in turn increases thecomplianceburdenoftheCompany/LLP.Let us understand with the help of an example: Suppose aconsultancy firm currently unregistered under GST providesconsultancyonCompanymatterstoM/sABCPvtLtdandraisebillofRs10000/-,thenM/sABCPvtLtdhastopayGSTonthebill of the consultancy firm of Rs 10000/- and deposit tax toGovernment. After depositing taxM/sABCPvt Ltd can claiminputofGSTpaidunderreversecharge.Inthisway,althoughthereisnomonetary/financiallosstoM/sABCPvtLtdfortakingservices fromunregisteredpersonbut the complianceburdenincreases.SoM/sABCPvtLtdmayeitherasktheconsultancyfirm to get registration or prefer some other registeredprofessional for such services.So the new professionals who currently start their practice and arenotregisteredunderGSTmighthavetofacesuchsituations.AndiftheyregisterunderGSTthentheyhavetomakeproperandfullcomplianceofeveryprovisionofGSTwhichtooktheirtime and costs which otherwise they can devote to develop their practice or business.

OPPORTUNITIES FOR PROFESSIONALS UNDER REVERSE CHARGEAsGovernmenthasmadereversechargeprovisionsofGSTinthe way that many of the service providers, dealers have toregisterunderGSTinspiteofthethresholdLimitsofRs20Lacsfor normalStatesandRs10Lacs for specifiedStates so thenumber of registered persons under GST will increase andconsequently,requireprofessionalhelpforregistration,returns,accounting,refunds,assessment,consultancyetc.SoGSTwillbeofgreatimportanceforprofessionalstoprovidevalue added services to their clients and help them to do proper complianceandhelpinNationbuildingtoo.

CONCLUSIONInmyview,alltheprofessionalsshouldgetregisteredthemselvesunderGSTtoavoidanydiscriminationbetweenregisteredandnonregistered professionals and to maintain the input creditcycle. Further by taking registration professionals can claiminputcredittaxontheirinputservices,inputsandcapitalgoodsused for business or furtherance of business. CS


The exception of reverse charge is that if exempted or non taxable goods/services received from an unregistered supplier then registered person shall not be required to pay tax under reverse charge and if the transactions are between unregistered persons meaning thereby if both the supplier and recipient are unregistered then no need for tax.

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NiharikaGupta,[email protected]

Impact of GST on Tourism and Hospitality SectorT heIndiantourismandhospitalityindustryhasemergedasoneofthekeydriversofgrowthamongtheservicessectorinIndia.TourisminIndiahassignificantpotentialconsidering the rich cultural and historical heritage, variety in ecology, terrains andplacesofnaturalbeautyspreadacrossthecountry.Tourismisalsoapotentiallylargeemploymentgeneratorbesidesbeingasignificantsourceofforeignexchangeforthecountry.Indiahasmovedup13positionsto52ndrankfrom65thinTourism&Travelcompetitive index.The tourismandhospitality industry in India recentlygotupdatedwithanewsetofGoodsandServicesTax(GST)ratesthatwillberolledoutfromJuly1.Itwillbeappliedontheirservicesbasedonthetariffsandturnovertheydraw,theGSTcouncilhasfinalised.

BeforegoingintodetailsofimpactofGSTontourismandhospitalitysector,itwouldbepertinent to make the readers understand the importance of tourism and hospitality sectorforemergingeconomylikeIndia.l Tourism in India accounts for 7.5% of theGDP and is the third largest foreign

exchangeearnerforthecountryl Thesector’s totalcontribution toGDPhas increasedtoUS$136.2billionby the

endof2016andisexpectedtofurthergrowtoUS$280.5billionby2026l Theindustryisexpectedtogenerate13.45millionjobsacrosssub-segmentssuch

asRestaurants (10.49million jobs),Hotels (2.3million jobs)andTravelAgents/TourOperators(0.66million).

Asexplainedintheabovepoints,theimportanceoftourismandhospitalitysectorforagrowingeconomylikeIndia,itwouldhavebeenupheavaltaskforthegovernmenttofixtheGSTratesforthesectorgivenitssizeandimportance.

ThesegmentsofTourismandHospitality Industrycanbe illustrated in the followingchart:

Transportation Travel Agents

Tour Operators

Segment of TourismSegment of TourismSegment of Tourismand Hospitality Industryand Hospitality Industryand Hospitality Industryand Hospitality Industryand Hospitality Industryand Hospitality Industry

Attractions Accommodation&Catering

l Attractions: Another major component of the travel and tourism industry is

GST has been one of the most awaited tax reforms for India. High GST rates on hospitality may prove to be detrimental for the sector. The high incidence of taxes may make India less competitive when it comes to tourism as international tourists may skip the destination. The government should appreciate that countries like Myanmar, Thailand, Singapore, Indonesia and others levy taxes ranging from 5 to 10 per cent. India cannot afford to have these kind of complex and high GST. A lower tax rate for budget hotels sector will ensure that the industry’s quality upgrade continues while delivering standardized accommodation to millions of middle-class-travellers. People like consolidation of taxes as it leads to greater transparency and will help guests and buyers to understand the overall costs.

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“attractions”suchas themeparksandnaturalattractionsincluding scenic locations, cultural and educationalattractions, monuments, events & medical, social orprofessional causes.

l Accommodation & Catering:Accommodationcouldbeonhotelsandmotels,apartments,camps,guesthouses,lodge, bed & breakfast establishments, house boats,resorts,cabins&hostels.Inaddition,touristalsorequirescatering facilities,which includehotels, local restaurants,cafeteriasandretailoutletsservingfoodandbeverages.

l Travel Agents: A fragmented sector with a number ofindependent travel agents & many online businesses.Theyalsosellassociatedproductssuchasinsurance,carhire & currency exchange. Business travel agenciesspecialise in making travel and accommodationarrangements for business travellers and promotingconference trades.

l Tour Operators: Tour Operators consists of customisedtours,includingtravel,accommodationandsightseeing.Onlyoutboundtoursoldtoaforeignerforvisitinganotherforeigncountryand thepayment is receivedbyconvertible foreignexchange is exempt from GST. All other tours (includinginboundtoursforforeigners)aretaxable.GSTpaidonthepurchaseoftourpackagesfromanothertouroperatorcanbeclaimedasITCandonlythedifferenceoftaxcanbepaidtotheGovernment.Atouroperatormustkeepaccuraterecordsto establish which part of the package relates to exemptsupplies,zeroratedsupplies(traveltoaplaceoutsideIndiasoldtoforeigncitizen)andtaxablesupplies.

The factors which will impact the Tourism and Hospitality sector after GST comes into picture can be explained in the following chart:

IMPACTOFGSTONTOURISM

EFFECTOF TAxES

TRANSPORTATION

IMPACTONELECTRICITYAND

ALCOHOL

RESEARCHANDDEVELOPMENT

CESS

l Letusdiscusstheabovepointsonebyone:Effect of Taxes: The tourism industry is one of the industries which are leviedwithmultiple taxes. There aremainly threetaxesinvolved:

--By State Government n VATn Luxurytax

--By Central Governmentn ServiceTax.

ThevalueofVatvariesfrom12%to14.5%accordingtostate.

The luxury tax varies from zero to 12%depending on roomtypeandstatewhereastheservicevariesaccordingtothetypeof service provided. With the implementationofGST, the cascading taxeswouldcombine.ACrestaurantsandthosewithliquorlicensewillbetaxedat18%.Restaurantswith` 50 lakhs or below turnover willgounderthe5%composition.Asperindustryfigures,thetourism sector employs nearly 37 million people directly and indirectlyandgeneratesanannualrevenueofabout`14 lakh crore.

GST ON HOTELS AND LODGES

GSTNILThroughExemptionNotification underGST

GST12%

InputTaxCreditavailable to hotels

RecipientsofthisHotelServicecanclaimITConlyiftheygetregisteredinsamestateinwhichHotelsaresituated

GSTonHotelsdependsuponthetariffrateperday

GST18%


GST28%


RoomTarifflessthanRs.1,000

HOTELSANDLODGES

RoomTariffRs.1000toRs.2,499

RoomTariffRs.2.500toRs.4,999

RoomTariffRs.5,000ormore

l Impact on electricity and alcohol:Oneoftheworriesofthe hotel industry which is an important part of tourism industryisthenon-inclusionofelectricityandalcoholtaxinGST.Therewon’tbeasingleGST for thesame.HotelsareknowntoconsumetollsofelectricityandnotcoveringitunderGSTmeansnotbeingable to fetchbenefit fromthe input credit of the two items.

l Transportation: It comprises airline companies, cruiseservices, railways, car rentals & lots more. A tourist’schoice of transport would depend on the travel budget,destination,time,purposeofthetour&conveniencetothepoint of destination. With the advent of GST, transportsector gets affected too. The supply of tour operatorserviceswillbe taxed@5%withnobenefitof input taxcredit facility.

l Research & Development Cess: The research and development cess applicable on technical know-how and franchise feesare likely tobeapart andparcel ofGSTregime.

One of the worries of the hotel industry which is an important part of tourism industry is the non-inclusion of electricity and alcohol tax in GST. There won’t be a single GST for the same. Hotels are known to consume tolls of electricity and not covering it under GST means not being able to fetch benefit from the input credit of the two items.

IMPACT OF GST ON TOURISM AND HOSPITALITY SECTOR

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So, this is how tourism industry would likely be affected orratherbeimpactedbytheGST.

TAXABILITY UNDER GSTAccording to the CGST Law which neither contains theexemptionsnortheratesoftaxation,itappearsthatmostoftheservicesinrelationtoTourismwouldbesubjecttolevyofGSTasthesameistobetreatedas‘supply’.Sincetaxableeventissupply, it is necessary to understand certain terms likeLocation of Supplier of Service, Location of Recipient ofServiceandPlaceofSupply.Tourismindustrysuppliesbundleof services and hence Composite Supply andMixed supplyalso comes into picture.

Consideranexampleofbookingofair ticketswhich involvescostofthemealtobeprovidedduringtravelwillbeacompositesupplyandtaxwillbecalculatedontheprinciplesupplywhichinthiscaseistransportationthroughflight.

HOW TRAVEL & TOURISM INDUSTRY GETS EFFECTED ?Tourism Industryand traveland touragents inparticulararefacingatoughtimeduetovariousfactorslikenocommissionby the airlines, direct marketing of airlines, higher taxation,poor tourist infrastructureetc.Theirmajorsourcesof incomeare listed below:1. Commission from Airlines, Cruise Companies, Travel

Insurance Companies and similar companies.2. SaleTourPackages,bothinboundandoutbound.3. TravelRelatedServiceslikeVisa,Passportetc.

Onehastounderstandthatanairlineoracruiseticketorthetravel insurance policy issued by insurance companies is a contract between the airline/cruise/insurance company and the passenger.Thetravelagent isonlyafacilitatorwhoreceivescommissionfromthecompanies.HenceGSTontheseticket/policywillonlybeconsumedbythepassengerandtheagentcannotusethemastheirinputcredit.However,theagenthastopayGSTonthecommissionreceivedfromtheairline/cruise/insurance companies on the reverse basis.

IftheagentcollectsServiceFeeasanadditionalchargefromthepassengerandshow it in the invoice separately, hecanaddGSTontheservicefeeintheinvoiceandcollectthesamefromthepassenger.

COMPOSITION SCHEME IN TOURISM SECTORComposition scheme can be availed in tourism sector by the supplier who is engaged in providing any service or in anyothermannerwhatsoever,ofgoods,being foodoranyotherarticle for human consumption or any drink (other than alcoholicliquorforhumanconsumption).

Person whose aggregate turnover in the preceding financialyeardidnothave50lakhrupeesandnothavinganyInterStateSupply and was neither a casual taxable person nor a non-residenttaxableperson,canavailthebenefitundercompositionscheme.RateofTaxincaseofCompositionschemeshallnotexceed2.5%ofCGSTaswellas2.5%ofSGSTtotallingto5%.

Composition scheme proposed for restaurant, cateringbusinesswhichwillexcludemanysmallplayersoutofthetax

creditchainandmayresultintoadditionalcascadingeffectincase of B2B transactions. Assessee opting for compositionschemeshallnotbeentitledtotakeanycredit.However,theyneed topayTaxunderRCM if theyhaveany inwardsupplyfrom specified person and that shall add on to their cost. Person foregoing negligible amount of input tax credit, canbenefit by opting for composition scheme since their totaloutputliabilityshallreduceto5%(2.5%CGST+2.5%SGST)asagainstcurrentliabilityof9%-10%.

DO YOU HAVE TO REGISTER UNDER GST? Travelagents/TourOperatorshavetoregisterforGSTiftheyareprovidingsupplyoftaxableservicesinthecourseoftheircommercial activities in India and the total (gross) taxablerevenue,includingoftheiragentsismorethan`20,00,000.While theydonothave to register if their taxable revenue is`20,00,000orless,theymaybeabletoregistervoluntarilytoclaimtheinputtaxcreditonservicespurchased.ThefollowingtwopersonsmustregisterforGST,eveniftheirtotaltaxablerevenueislessthan`20,00,000threshold:- Tour&Travelagentwhosold tourpackages /air-tickets

on behalf of other taxable person whether as agent orotherwise.

- Tour Operator selling inter-state tour packages toregisteredtaxableperson.

- Non-residenttour&travelagents.

CANCELLATION FEES AllcancellationfeesaresubjecttoGSTat5%.Creditnoteisallowed to be issued for cancellation of air ticket or tour package and GST must be adjusted accordingly. Anyamendment charges are subject toGST at 5% for inbound/outboundtourpackageanddomesticair tickets.AmendmentchargesforoutboundtourpackageandinternationalairticketaresubjecttoGSTat5%.Arrangingforvisaandvisafees;(theserviceor administrative fees imposed) is subject toGSTat18%.

GST IMPACT ON THE TRAVEL INDUSTRYThetaxablesuppliesforthetravelindustryareasfollows:(a) Inbound tour packages (domestic tour), whether sold to

IndianresidentorForeignresident.(b) Outboundtourpackages(internationaltour)soldtoIndian


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resident.(c) Agencyservices.(d) Passenger Transportation services (Sea, Land and Air

Transport).

SomeoftherelatedtaxablepurchasesintheTravel IndustrywhicharesubjecttoGSTareasfollows:-(a) HotelAccommodation;(b) Transportation/hireofvehicles/carhire;(c) Tourpackage;(d) Restaurantmealsanddiningplaces;(e) Ticketsforentrytoexhibitions,entertainmentvenues;(f) Hospitality(spasandresort);(g) Agencycommission;(h) BookingFees;(i) TouristGuide;(j) TourDeposit;(k) AmendmentChargesforInbound/OutboundTourPackage

andDomesticAirTicket;(l) TravelInsurance;(m)VisaServiceFees;and(n) Otherrelatedtourismservices.

TRAVEL INSURANCE Supply of travel insurance services for an inbound/outbound tour istaxedatapplicableratesandthepremiumchargedissubjecttoGSTat18%.Thearrangingoftravelinsuranceforinboundoroutbound tour is taxedatapplicable ratesand thecommissionchargedforsuchasupplyissubjecttoGSTat18%.

AIR TICKETING SERVICE FEE• Profit mark-up/service fee charged for domestic flight is

subjecttoGSTat18%• Profitmark-up/service fee charged for international flight

dis-embarkingfromIndia,issubjecttoGSTat18%• Ifanyservicefeechargedseparately,thenitissubjectto

GST@18%.• Any commission received fromairline is subject toGST@

18%.

TOUR PACKAGESSupplyofTouroperator’s servicesare taxableat the rateof5%.Noinputtaxcreditwillbeallowedwhentherateof5%ischarged.

Whensupplyismadetoaregisteredperson,GSTof5%willbe charged depending upon the location of recipient ofservices i.e.Customer.Taxable invoicewill be issuedat theCustomer’sregisteredaddressunderGST.

Whensupplyismadetoanunregisteredperson,GSTwillbechargeddependinguponthelocationofTourOperator.Billofsupply will be issued for the services rendered by Tour Operator.

The tour operator has to identify the nature of supply i.e. whetherthetourpackageservicesareintra-stateorinter-state,which in turn depends upon whether the recipient of service is registeredorun-registered.

KEY ISSUES FACING THE TOURISM SECTOR• High Multitude and Incidence of Taxes on account of

taxationatmultiplelevelsandabsenceofseamlessinputcredit flow

• Lot of business in this sector gets generated throughonlinemedium.Significantamountofclarityisrequiredinthelawtodealwithe-commerceplayersandaggregators

• Lack of Proper Infrastructure in terms of access,connectivityandservicesandmanyunorganisedplayersin the industry

• Non-availability of skilled & Semi skilled man powerrequiredfortheindustrytoattractforeigntouristaswellaspromote local tourism specially Eco Tourism & RuralTourism which lacks professional approach towards service and customer satisfaction

• Lack ofMarketing, Branding&Promotion efforts for therural,culturalandEcofriendlyremotelocationsandtheirconservations.

CONCLUSIONGSThasbeenoneof themostawaited tax reform for India.We would like to draw inference that high GST rates onhospitality may prove to be detrimental for the sector which is already reeling under the pressure of demonetisation andliquor ban on highways. However, liquor should have beenincluded in GST to ensure the seamless credit for tourismindustry.Since,players in this industrymake themostof itsconsumption.ThehighincidenceoftaxesmaymakeIndialesscompetitive when it comes to tourism as international tourists mayskip thedestination.Thegovernmentshouldappreciatethat countries likeMyanmar, Thailand, Singapore, Indonesiaand others levy taxes ranging from 5 to 10 per cent. IndiacannotaffordtohavethesekindofcomplexandhighGST.Alower tax rate for budget hotels sector will ensure that theindustry’s quality upgrade continues while deliveringstandardized accommodation to millions of middle-class-travellers. People like consolidation of taxes as it leads togreater transparency and will help guests and buyers tounderstand the overall costs.

Companies specializing in food and beverages operationscouldbethebiggestbeneficiariesofGSTwithinthehospitalitysector. Food and beverages bills havemultiple componentsand can inflate the bills by 30-35%. A single-slab tax willbenefitconsumersandshould lead tosavingsof10-15%onthe overall bill. CS

According to the CGST Law which neither contains the exemptions nor the rates of taxation, it appears that most of the services in relation to Tourism would be subject to levy of GST as the same is to be treated as ‘supply’. Since taxable event is supply, it is necessary to understand certain terms like Location of Supplier of Service, Location of Recipient of Service and Place of Supply. Tourism industry supplies bundle of services and hence Composite Supply and Mixed supply also comes into picture.


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GarimaGarg,ACSManager,[email protected]

GST and its impact on Salaried EmployeesF liparoundanynewspaperorbusinessmagazineandnewsonGSTfindsithome.

Itwouldn’tbeostentatioustoreferGoods&ServicesTaxastheSanjeevani of the Indianeconomy.GST,alsocoinedasGoodandSimpleTaxbytheHon’blePrimeMinisterduringtheGSTlaunchsessionisexpectedtoreformthewayofdoingbusiness.

GST is relevantmore for businessesandnot somuch for salariedpeople.Thepeopleearningsalarieswillcontinuetopayincometaxontheirsalaryanditwillcontinuetobedeductedfromtheirmonthlypay.GSTisanindirecttaxandassuchhasnothingtodowithincometaxorTDS.Havingsaidthat,GSTwillberelevantforsalariedpeopleasthisnewbuzz word will continue to impact every corner of their life. GST on almost all theirexpenses - restaurants,movies, shopping, consulting, construction, virtually everything.DependingontherateofGST,theexpenditureontheseproductsmayriseorfall.WhatwilldefinitelychangeforsalariedpeopleisthattheirpurchaseswillnowbesimplifiedandtheywouldonlylookforGSToneverythingthattheyspend-betterthanhavingtodealwithhundredsofothertaxesonallpurchasebills,likeentertainmenttax,luxurytax,servicetax,VATetc.Impactwillbeonspendinglikerestaurantservices,flyingetcwhichwillhaveupto18%taxcomparedtocurrent15%.AlsosomegoodslikeFMCGitemsmaycomedownaswillbesubjecttoGSTat18%versuscurrenttaxofmorethan27%.Almostallcountries where GST is implemented have been through a small phase of inflation.INFLATION,isthistheonlyreasonwhythesalariedpersongetsaffectedbytheGST?Itisnot theonly case.GSTwill call for changes in thestructuringofemployeremployeetransactions as well. In this article we will discuss upon the areas of salary which will directlybeimpacteduponandotherswhichwillhaveimpactindirectlyastheexpenditureof salaried employees be impacted in the GST regime differently than the previousscenario.

SEGMENT I: IMPACT ASSESSMENT ON TRANSACTIONS BETWEEN EMPLOYER- EMPLOYEE(A) Supply by Employee to EmployerSection7ofCentralGoodsandServicesTaxAct2017providesthat“supply”includes––(a) all forms of supply of goods or services or both such as sale, transfer, barter,

exchange, licence, rental, lease or disposal made or agreed to be made for aconsiderationbyapersoninthecourseorfurtheranceofbusiness;

(b) import of services for a consideration whether or not in the course or furtherance of business;

(c) the activities specified in Schedule I, made or agreed to be made without aconsideration;and

(d) theactivitiestobetreatedassupplyofgoodsorsupplyofservicesasreferredtoinSchedule II.

(2) Notwithstandinganythingcontainedinsub-section(1),––(a) activitiesortransactionsspecifiedinScheduleIII;or(b) such activities or transactions undertaken by the Central Government, a State

Governmentoranylocalauthorityinwhichtheyareengagedaspublicauthorities,asmaybenotifiedbytheGovernmentontherecommendationsoftheCouncil,

shallbetreatedneitherasasupplyofgoodsnorasupplyofservices.SCHEDULE III of theCGSTAct provides list of activities or transactionwhich shall betreatedneitherasasupplyofgoodsnorsupplyofservices.Thefirstiteminthisexemptionlist is the Services by an employee to the employer in the course of or in relation to his employment.

The article discusses the areas of salary which will directly be impacted upon and others which will have indirect impact as the expenditure of salaried employees be impacted in the GST regime differently than the previous scenario.

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Therefore, Supply from Employee to Employer would not be treated as supply provided the same is in the course of or in relation to the employment

(B) Supply by Employer to EmployeeB1. Gifts to employeesSchedule I of the CSGT Act, 217 talks about Activities to betreated as supply even if made without considerationSecondprovisotoClause2ofScheduleIprovidesthatgiftsnotexceedingfiftythousandrupeesinvalueinafinancialyearbyanemployertoanemployeeshallnotbetreatedassupplyofgoodsor services or both.

Thus , where ‘gift’ up to value of INR 50,000 is provided by employer to employee in a financial year, same would not qualify as ‘supply’.

It is noteworthy that the term ‘gift’ hasnot beendefined in theGSTlawB2. Other Facilities to employees - Employee Benefits Today the corporate houses provide a bundle of facilities clubbed togetherasemployeebenefitstotheirworkforceinordertoretaintherighttalent.IntheGSTregime,thereisaneedtoaccessthescopeofGSTandifsuchbenefitsaretaxable,whoaccountsfortheGST:employeeoremployer?Itisimportantthatbusinessesreview all the benefits they plan to provide in light of theGSTprovisions. Inordertoascertainthetaximplications,letusfirstpeepintothevariety of such employee benefits.Employee benefits includes any goods (food, drinks, mobilephones, computers etc.) or services (any right, privilege orfacility) provided to employees.Such benefits range from free or concessional meals, buspasses, accommodation, transport, free parking, vouchers,prizesatannualdinnersetc.Itisnoteworthythatemployeebenefitsalsocoverbenefitsgivenbyathirdpartyonbehalfoftheemployertotheemployee:e.g.asupplier provides free goods or services to an employee onbehalf of the employer.(A) Exempted Employee Benefits:

aRentfreeaccommodationprovidedtoemployeesn Thereisaspecificexemptionprovidedforservices

bywayofrentingofresidentialdwellingsforuseasresidence,aspertheMay19,2017issuedServiceTax Exemptions as decided by GST Council.Hence the said services should not be liable toGST.

n Some Companies also offer house lease facility wherein Company pays rent, security deposit,brokerage,etc.totheownerandrecoversrentpaidfromemployees throughpayroll deduction.Therewill arise no GST liability for the aforementionedexemption.

n Also,itisnoteworthythatwheresomeCompaniesprovide temporary accommodation to its employees forfewweeksofjoining,thesameisnotsubjecttoGSTassuchbenefit isextendedbyCompanyforofficial use.

aMobile/laptopandCompanyCartoemployeesn Where, the asset such asmobile, laptop etc are

provided for official use (whereby ownership,contract, etc is with the Company) and the saidasset is surrendered by the employee on the

cessation of employment, the same will not betreatedassupply.Hence,suchtransactionshouldnotbeliabletoGST.

n Companies often provide car for use to the senior managementandtopofficials.Sincesuchcarsareowned by the Company, the same will not betreatedassupply.Hence,suchtransactionshouldnotbeliabletoGST.ItisnoteworthythatthecreditofGSTpaidonpurchaseofsuchcarswillnotbeavailable to the Company.

aFreeMealsn Free meals/ tea/ coffee etc which are provided to

all employees at large and not to identifiedemployee/customerarenotbeliabletoGST.

aCreche Facilityn WiththeMaternityBenefit(AmendmentAct)2017

gettingnotifiedintheOfficialGazetteonMarch28,2017,itwillsoonbeamandateforestablishmentswith 50 or more employees to have facility of crèchebeingprovided.NoGSTliabilitywouldariseon such facility provided by the employer. The Company,couldhoweverclaiminputtaxcreditonthe goods/ services so consumed in maintainingthe crèche facility.

aOffsiteVisitsn Manycorporatesorganiseoffsitevisits/excursions

for employees. No GST liability would arise onsuch event as there is no supply per se. The Company,couldhoweverclaiminputtaxcreditonthe goods/ services so consumed (exceptprovisions of Section 17(5) where specifically input taxcredithasbeenprohibited).

aInsurance for employees and family membersn Corporates often provide insurance to employees

withoutcharginganypremiumfromthem.NoGSTliability would arise on such transaction as there is no supply. The Company would not be able to claiminputtaxcreditonthepremiumsopaidasthesame would not be in the name of the Company and the supply of service is being made to theindividual employee.

aCasual/PrivilegeandSickLeaven As there is no supply of goodsor servicesbeing

made, there arises no question of taxability andfurthertheseareforallemployeesatlarge.

aRecoveryonaccountoflossofIDcards/otherassetsn Company sometimes recovers money from

employees on account of lost ID cards, lostcompany laptop etc which will be treated as ‘liquidateddamages’andhence,shouldnotqualifyassupplyliabletoGST.

aEmployeeStockOptionPlan(ESOP)n ShareallotmentunderESOPshallnotbesubject

toGST.Theemployeescontinuetobesubject toperquisite tax on exercise of options into sharesand capital gains as and when the sale of suchshares are made.

aBenefit/concessionfromthirdpartysuchasEducationfacilitytoStaff’sChildren,MedicalfacilitytoStaff&theirFamilywillalsobeexemptfromGST.

ApplicabilityofGST:1. Supplyofservant,drivertotopexecutives-forpersonaluse,

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willbesubjecttochargeabilityofGST.2. Recoveryforclubservices,cableservices,Gymservices–

Ontheamountchargedfromtheemployee,GSTwouldbeapplicable, unless the same is specifically exempted fromGST.

3. Suppliestoemployeesatdiscount:Manycompaniesprovideemployee discount for their products so purchased by the Company.Sayforinstance,apaintcompanyprovides30%discountonthedealerprice to itsemployeesoragarmentcompany provides its separate shopping card wherein theemployee can avail 15% off on the purchases so made from its authorised showroom. In all such cases transactions wouldbeclassifiedassupplyandsubjecttoGST.

4. Sale of old assets like laptop etc to employees: Such transactiontobetreatedassupplyandaccordingly,liabletoGST.

5. MaintenanceExpenditureofVehicleforpersonalusecouldattractGSTliability.Value to be determined as per the Valuation rules asdiscussedinthesecondsegmentofthisArticle.

B3. Contributions to Provident Fund etc.Thereisalsoaspecificexemptionforanycontributionmadetoapension,providentfundorsocialsecurityfundandthatthesameshallnotbetreatedasasupplyofgoodsorservices.ServiceTaxExemptionstobecontinued inGSTasdecidedbyGSTCouncilreleaseon19May2017:ServicesbyEmployees’StateInsuranceCorporationtopersonsgoverned under the Employees’ Insurance Act, 1948 (34 of1948);Services provided by Employees Provident Fund Organisation(EPFO) to persons governed under the Employees ProvidentFundsandMiscellaneousProvisionsAct,1952(19of1952);

Therefore contributions to EPF, SOCSO and similar organisations will not be subject to GST.

Segment II: Valuation for employer-employee transactionsSection 15 of the CGST Act provides for Valuation Rules.ExplanationtoSection15providesforRelatedPersons.(a) personsshallbedeemedtobe“Relatedpersons”if––

(i) suchpersonsareofficersordirectorsofoneanother’sbusinesses;

(ii) such persons are legally recognised partners inbusiness;

(iii) suchpersonsareemployerandemployee;(iv) anypersondirectlyorindirectlyowns,controlsorholds

25%ormoreoftheoutstandingvotingstockorsharesofbothofthem;

(v) oneofthemdirectlyorindirectlycontrolstheother;(vi) both of them are directly or indirectly controlled by a third

person;(vii)togethertheydirectlyorindirectlycontrolathirdperson;

ortheyaremembersofthesamefamily;Since employer and employee have been deemed as ‘related person’ under, valuation for supplies which aretaxable under GST are to be governed in terms of theValuationRulesissuedforrelatedpartytransactions.

• Open market value: Fullvalueinmoneyforsupplyofgoodsat the same time of transaction between two unrelated parties where price is sole consideration.

• Value of supply of goods of like kind and quality: Supply of goods under similar circumstances in respect ofcharacteristics, quality, quantity, functional components,

materialsandreputationofgoods.• Cost plus basis: 110% of cost of production or manufacture

orcostofacquisitionofsuchgoodsorcostofprovisionofsuch services.

• Residual method: Reasonablemeans consistent with theprinciplesandgeneralprovisionsofSection15ofCGSTActandtheValuationrules.

Input Tax Credit to Employers on facilities providedAsperSection17(5)ofCGSTActinputtaxcredit(ITC)shallnotbeavailableinrespectofthefollowing:(a) motorvehiclesandotherconveyancesexceptwhentheyare

used––(i) formakingthefollowingtaxablesupplies,namely:—

(A) furthersupplyofsuchvehiclesorconveyances;or(B) transportationofpassengers;or(C) impartingtrainingondriving,flying,navigatingsuch

vehiclesorconveyances;

(b) thefollowingsupplyofgoodsorservicesorboth:—(i) food and beverages, outdoor catering, beauty

treatment,healthservices,cosmeticandplasticsurgeryexceptwhereaninwardsupplyofgoodsorservicesorboth of a particular category is used by a registeredperson for making an outward taxable supply of thesame category of goods or services or both or as anelementofataxablecompositeormixedsupply;

(ii) fortransportationofgoods;(iii) rent-a-cab, life insurance and health insurance

exceptwhere––(A) the Government notifies the services which are

obligatory for an employer to provide to itsemployees under any law for the time being inforce;

(iv) travelbenefitsextendedtoemployeesonvacationsuchas leave or home travel concession.

Segment III: Checklist for CorporatesCorporatehouseswillberequiredtomakeHRpractitionersandGST Teams sit together and analyse the components ofemployee benefits and may recourse the following steps andprocedures:Step1:ListallHRactivities:Preparealistofalltransactionsthataffectemployees’indirectcostanddirectcostduetoGST.(ForExample–Medicalclaimscanbeanindirectcostandtravelclaimas direct cost). Step2: IdentifyandDevelopVendorsComplianceList–ThoseregisteredasGSTsuppliersand/or thosewhoarenot.Preparedeclaration form for HR suppliers and vendors who are notregisteredstatingtheirpricequotedorinvoicedwillnotberevisedduetoGSTandanyincreasecanbereportedandactiontobetakenunderAnti-ProfiteeringAct.Step3:DevelopauserfriendlyBusinessExpensesClaimForm.EmployeesshouldbeinstructedtoprovideCompany’sGSTINtovendors.EmployeesshouldbeaskedtodiscusswithVendorstoissueinvoiceinthenameofCompanyincaseofTravelandHotelservices consumed by them for official purpose. Big corporatehouses may also come up with concept of travel portal for its employees wherein central booking may be made for allemployeesandlosinginputtaxcreditwithunregisteredvendorswill not be an issue. Company should preferably provide the employeeslistofregisteredvendorsforhotelsandaccommodationand rent a cab etc. CS

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GST implications on : Works Contract & Construction Sector

BASICS:Before we dive into the issues circling the construction industry, it is imperative tounderstand the basic difference between the possible transaction structures under the new taxationregime.This isbecause,construction isan industrywherein failure toeffectivelystructure the tax clausesof the contractsmayeasily lead to the contractorpayingmoretaxes than themargin that theymake.Thegoodnews for theon-goingcontracts is thatunderthelightoftheGSTswitch-over,thepartiestothecontractcanrevisittheirtaxclausesandmakebestuseofthelegalmachineryprovidedundertherevisedmodelGSTlaw.

Theverydefinitionof“GOODS”continuestoremainthesameevenafterGSTimplementation.Forthepurposeoftaxationonsupplyof“goods”theexplanationgiveninArticle366(29A)persistsandgoodsexcludesaleofimmovableproperties.• Underthepre-GSTIndia,workscontractincluded-

1. Workscontracts=SupplyofGOODS+SERVICES2. Works contract included provision of- ImmovablePropertyrelatedconstructionorotherservices AND Movablepropertyandservices.3. GannonDunkerley Judgment: In simplewords, the judgementelucidates that a

works contract involves transfer of goods, but there cannot be sales as theessentialelementinexecutingaworkscontractisprovisionofservices.Astherearenosales,consequentlynoVAT(SalesTax inerstwhileparlance)shouldbelevied.

4. However,thelawdefinesworkscontractasadeemedsaleactivityhenceonlythe

Construction is an industry wherein failure to effectively structure the tax clauses of the contracts may easily lead to the contractor paying more taxes than the margin that they make. The good news for the on-going contracts is that under the light of the GST switch-over, the parties to the contract can revisit their tax clauses and make best use of the legal machinery provided under the revised model GST law.

BhattBhadreshA.,ACSProprietor,B.A.Bhatt&Associates(PractisingCompanySecretary)[email protected]

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salesportionisliabletoVAT.• NowundertheGSTregime,workscontractisasunder:

1. WorksContracts=SupplyofSERVICESonly.2. Works Contract includes only: Immovable Property related construction or other

services

TYPES OF TRANSACTIONS

[A]Works

Contract

[C]MIXED

SUPPLY

[B]COMPOSITE

SUPPLY

[D]JOB

WORK

ALL CONSTRUCTON

RELATED SUPPLIES UNDER

GET

Transaction Type Meaning under GST A.WorksContract Aservicecontractwhereintransferofgoods

takes placeB. Composite Supply Twoormoregoods/servicesthatCANNOT

be separatedC.MixedSupply Twoormoregoods/servicesthatCANbe

separatedD.JobWork Servicesdoneongoodsownedbyanother.

ServiceCategory GSTRates

ConstructionofFlatsetc.WITHLAND 12%*ConstructionofFlatsetc.WITHOUTLAND 18%Works Contract 18%Anyotherconstructionrelatedservicenotcoveredabove 18%

*Full ITC available. Overflow of ITC cannot be refunded.

A] Works ContractSection2(119)definesworkscontractunderGST:

What is WORKS CONTRACT in GST?

What is NOT A WORKS CONTRACT in GST?

Wherein transferofpropertyingoodsis involved,intheexecutionofsuchcontract and includes contract for building,construction,fabrication,completion,erection,installation,fittingout,improvement,modification,repair,maintenance,renovation,alterationorcommissioningofanyimmovableproperty.

Itisnotnecessarythatthegoodsbetransferred in the same form. They may be transferred in some other form and still the contract will be works contractforGST.

Pure Supply of GOODS:Acontractthatismerelysupplyofgoods.Likesupply of material only for construction is pure supplyofgoods,whichattracts provision of supplyofgoods.Pure supply of labour:Acontractthatismerelyfor supply of labour is also not works contract underGST.

B] Composite SupplySection 2(27) of the CGST Act defines a composite supply:It means a supply comprising of two or more goods/services,which are naturally bundled and supplied with each other in the ordinary courseof business,oneofwhich isaprincipal supply.The items cannot be supplied separately.

l Conditions for composite supply-Any supply of goods or services will be treated as compositesupplyifitfulfilsBOTHthefollowingcriteria:1. Supplyof2ormoregoodsorservicestogether,AND2. It is a natural bundle, i.e., goods or services are usually

providedtogetherinnormalcourseofbusiness.Theycannotbe separated.

Example: Where goods are packed, and transported withinsurance,thesupplyofgoods,packingmaterials,transportandinsuranceisacompositesupply. Insurance,transportcannotbedoneseparatelyiftherearenogoodstosupply.Thus,thesupplyof goods is the principal supply.

l Tax liabilitywillbe the taxon theprincipalsupply i.e.,GSTrateonthegoods.

Ifthesecondconditionisnotfulfilleditbecomesamixedsupply.

C] Mixed supplyMixed supply under GST means two or more individual supplies of goods or services, or any combination, made together with each other by a taxable person for a single price. Each of these items can be supplied separately and is not dependent on any other.

It shall not be a mixed supply if these items are suppliedseparately.

Rate of tax:FortaxunderGST,amixedsupplycomprisingtwoormoresuppliesshallbetaxedatsupplyofthatitemwhichhasthehighestrateoftax.

Example:Asupplyofafoodpackageinanairlinesthatconsistsofcannedfoods,chocolates,bottledwater,aerateddrinkandfruitjuiceswhensuppliedforasinglepriceisamixedsupply.Allcanbesoldseparately.AssumingaerateddrinkhavethehighestGSTrate,aerateddrinkswillbe treatedasprincipalsupplyandGSTrateofaerateddrinkwillapplyonthesinglepricecharged.

D] Job Works1. Meaning: A process undertaken by a person on goods

ownedbyanotherregisteredtaxableperson.2. No GST is leviedonGoodssuppliedbyRegistered taxable

owner (principal) to job worker (Section 43A). Goods mayfurtherbesentfromonejobworkertoanother.Onemaynotethat43Adoesnotapplytoexemptedornon–taxablegoodsornon-registeredperson.

3. ITC of inputs sent to job worker: ITC is available if the Goods (non capital) are received back in 1 year aftercompletionofjobwork(3yearsincaseofCapitalGoodssentinJobWork)fromthedateofbeingsentout.Iftheinputsaresentoutdirectly,thedaysarecountedfromdateofreceiptofinputsbyjobworker.

GST IMPLICATIONS ON : WORkS CONTRACT & CONSTRUCTION SECTOR

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SPECIFICALLY EXEMPTED CONSTRUCTION RELATED SERVICES1. PureLabourcontractservicesofconstructionrelatedto:

• OriginalWorksofasinglehousingunitotherthanpartofhousingcomplex.

• Construction, fabrication, completion, erection,installation,fittingout,improvement,modification,repair,maintenance,renovationofacivilstructureoranyotheroriginalworkspertainingtothebeneficiaryledindividualhouseconstruction/enhancementunderhousing forallurbanmission/pradhanmantriawasyojana.

2. Servicesbygovernment/localauthoritytoabusinessentitybelowGSTregistrationlimiti.e.20lakhsturnoverisexempted.Itistaxableonlyiftheservicesrelatetorentingofimmovablepropertyorpostal,aircraftortransportservices.

3. Servicebywayofrentingofasingleresidentialdwellingforresidential use only.

4. Asworkscontractincludessupplyofgoodsandanimmovablepropertyisspecificallyexcludedfromthedefinitionofgoods,we can say that only those properties that are supplied PRIORtotheirCompletion(Basedoncompletioncertificate)willbeliabletoGST.Clause5(b)ofScheduleII[transactionstobetreatedas‘Supply’]statesthat:

“Construction of a complex, building, civil structure or a partthereof, including a complex or building intended for sale to abuyer,whollyorpartly,exceptwheretheentireconsiderationhasbeen received after issuance of completion certificate, whererequired,bythecompetentauthorityorbeforeitsfirstoccupation,whicheverisearlier.”

Meaning: If the property is fully constructed and then entire consideration has been received, no GST applies. If anyconsideration is received BEFORE completion certificate ofimmovable,GSTappliesonthat.Abriefchartonthisisasfollows:

Summary of GST on Works Contract

Input Tax Credit (ITC) Disallowances:1. ITC is not allowed for works contract services for construction

of immovable property.2. ITC is not allowed on supplies received for construction of

an immovable property on own account.3. ITC is not allowed on supplies received for construction of

an immovable property on own account for furtherance of business.

4. ITC is not allowed on construction of telecommunication towers,pipelinelaidoutsidethefactory,buildingsandothercivilstructures(excludingfoundationandstructuralsupporton which ITC is allowed.)

5. ITC is allowed if it is a works contract for immovable property beingplant&machinery

6. ITC is allowed where the works contract services supplied is an input service for further supply of works contract service.

7. ITC is allowed on supplies received for construction of an immovable property on own account being Plant andmachinery.

Abatement&CompositionunderGSTworksContractNeitherisavailableunderGST.Place of Supply in relation to work contract under GST• PlaceofSupplyhelpstodecidewhetherparticularsupplyis

inter-statesupplyorintra-statesupplytolevyIGSTorCGST&SGST/UTGSTrespectively.

• PlaceofsupplyofserviceinrelationtoImmovablePropertySection9(4)ofIGSTActdealswiththeplaceofprovisionofservice in relation to works contract of construction of immovable property which provides:

• Place of provision of service in relation to immovableproperty will be the place of provision where the immovable property is situated which includes services of:- Architects- Interior decorators- Surveyors - Engineersand- Otherrelatedexpertsorestateagents;forcarryingout

or co-ordination of construction work.• Where the immovable property is located in more than one

State,thesupplyofserviceshallbetreatedasmadeineachof the States in proportion to the value for services separatelycollectedordetermined,intermsofthecontractoragreemententeredintointhisregardor,intheabsenceof such contract or agreement, on such other reasonablebasis as may be prescribed in this behalf.

Place of supply in relation to other than Immovable Property. In the case of works contract services provided other than in relation to immovable property section 6(2) provides place ofprovision of services as follow: • Ifserviceisprovidedtoregisteredtaxableperson,placeof

provision shall be location of service recipient. • Whereservicesprovidedtopersonotherthanaregistered

person,placeofprovisionshallbe:- The location of the recipient where the address on

recordexists,and- The location of the supplier of services in other cases.

Sub contractsInmostbuildingcontractsandinotherbigcontractssomepartis



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onlysingletransferofpropertyfromsub-contractortoemployerwillbeequallyapplicabletothenewconceptofsupply?Partofworks contract executed by subcontractor will be supply ofservicetomaincontractorunderGST.

Free suppliesPerhaps this is themost controversial amendment in theGSTlaw. Section 15 (2) of the Model GST law deals with thecalculation of “transaction value” for the purposeofGST levy.Clause (b) of section 15(2) specifically seeks to include any supplies provided directly or indirectly by the recipient of the supplyfreeofchargeoratareducedcostforuseinconnectionwiththesupplyofgoods/services.This means that any free supplies made by the recipient (i.e. the Principal)intheworkscontracttransactionwillalsoformpartofthetransactionvalue.Letusunderstandtheimplicationswithanexample.

ExampleSupposeMr.xisaprincipalwhoawardsapipelineconstructioncontracttoMr.Y.Mr.xhaspurchasedcementinputstobeusedin the construction worth Rs. 100 crores. Mr. x supplies thismaterialtoMr.Yfreeofcost.Mr.Ynowconstructsthepipelineusing those cement inputs and adds his labour charges andmarginbeingRs.10croresbeforeraisingabillofRs.110croresonMr.x.As per section 15(2)(b) free supplies of Rs. 100 crores are to be added in the transaction value as rightly done by Mr. Y. However, as the point of taxation in GST is the supply of goods or service, even the Free supply worth Rs. 100 crores made by Mr. X to Mr. Y will be charged to GST. Inourexample,itmeansthatMr.Yhastofirstpay28%GSTonfree supply of Cement i.e. Rs. 28 crores even before thecompletionofworkscontract.WhenYraisesaninvoicetoMr.xforRs.110croresitwillcollectGSTat18%fromMr.xi.e.Rs.19.80croresbeing18%GSTonworkscontractsuppliesbyMr.YtoMr.x.Thepracticalissuehoweveris,inconstructionindustry,paymentsare usually made based on percentage completion basis ascertified by a Chartered Engineer. Thismeans thatMr. x willNOT pay Rs. 19.80 crores immediately but would pay it ininstalments. However, Mr. Y has to immediately Pay Rs. 28croresonthefreesuppliesthusdrasticallyblockingitsworkingcapital.Mostofthetime,thetaxclauseincludeswordslike“inclusiveofall taxes” and hence the liability gets passed on the recipient.However,thiscannotbetrueforallcontractscoveredbyGST.This is precisely the reason why the parties to the contract need tocome together to revisit the taxationclausessoas toavoidlosingtheirtargetmarginsorevenblockingtheirworkingcapital.Schedule I, Item 5 which specifies “Supply of goods and/orservicesbyataxablepersontoanothertaxableornon-taxableperson in thecourseor furtheranceofbusiness”asoneof theitems “treated asSupplywithoutConsideration” onemay alsotake a view that such Free Supply by the Contractee may also be treated as Supply and be taxable in the hands of theContractee.

GST on Long Term Construction or Works Contract (Section 186)Ifthecontract(agreementregistrationdate)isenteredintoprior

to1stJuly2017andifthesuppliesaremadeafter1stJuly2017then GST applies on such supplies of goods or services.However, if the supplies are alsomade prior to 1st July 2017thenthetaxeswouldbepayableaspertheoldlaw.Inanycase, if thecontract isentered intoafter1stJuly2017,thenGSTwillapplyonsuchcontracts.

GST on Periodic supply of goods or services (Section 187)If theconsiderationhasbeenreceived inpartor fulland taxeshavebeenpaidpriorto1stJuly2017buttheactualsuppliesofgoods or services aremade after 1st July 2017 then noGSTapplies on that consideration.However, if thesuppliesaremadeprior to1stJuly2017eventhenGSTwillnotapplyonthat.

Duties and taxes on inputs or input services during transit (Section 171) Thisprovisionapplies toCENVATcreditaswellasVAT/EntryTaxCredit.The provision applies to a scenario where Inputs/input services received after 01.07.2017 whereas the applicable duty/taxthereonhasbeenpaidbefore01.07.2017.Availmentofcreditissubjecttoconditionthatthecreditiseligibleonsuchinputsandinput services if invoice/duty payment document was recorded in books of accounts within a period of thirty days from 01.07.2017.

No tax is payable under GST when -The goods are exempted under earlier law (Central Excise,VAT)-Goodsclearedprior tosixmonths fromappointedday(goodscleared from 01.01.2017 onwards) -GoodsarereturnedtoPlaceofbusinesswithinsixmonthsfromappointedday(goodsarereturnedonorbefore31.12.2017)Itcouldbepossiblethatexistingcontractsareexemptedwhichmaybebroughtunder taxnet inGSTregime. Inorder toavailtheexemptionbenefitextendedduringpre-GSTregime,properdocumentary records must mention clearly the stage ofcompletionofcontract.Certificatefromcharteredengineerastostageofcompletioncouldalsobeobtainedespeciallyincaseoflargecontracts.Avail of credit on inputs is restricted under existing provisionswhichisnotlikelytobeinGSTregime.AllmaterialssuppliedinGSTperiodwouldbeavailableascredit.Hence,inventoryofallstockslyingasonthedateofGSTrolloutalongwithsupportingtaxpaiddocumentsmustbemaintainedsothatcreditofsamemay be claimed onceGST is introduced (subject to provisionunderGSTlaw).All purchases should bemade from registered dealers clearlyshowingdutyofexciseandVATsothatthecreditofsamecouldbe claimed under GST regime to the extent material to beincorporatedinworkscontractpostGST.Itisindeedawelcomestep,thattheGSTcouncilincreasedtheavailability of input credit limit without excise duty payingdocuments for stock held on the date of introduction from 40% to 60%, in caseofgoodsattracting18%ormoreGST.With thismove, dealers need not return their pre-GST stock as theirconcern over loss of credit mostly stands addressed.Also,allowing100%creditincaseofhighvalueitems(aboveRs25,000) based on online generation of transport challan, evenwithout actual excise duty paying document could be amajorrelief to sectors such as consumer electronics, durables andautomobiles. CS




n ICSI-CCGRTINVITESRESEARCHPAPERSON(NCLT)ORDERS

n ICSI–CCGRTANNOUNCESUNIQUECRITICALRESEARCHANALYSISOFINDIANCOMPANIESACT,2013

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ICSI -CCGRTInvites Research Papers

OnNational Company Law Tribunal (NCLT)

Orders- Emergence of Law

PrologueICSI-CCGRT invites research papers on a unique andcontemporary topic-NationalCompanyLawTribunal (NCLT)orders.

TheNationalCompanyLawTribunal(NCLT)andtheNationalCompany Law Appellate Tribunal (NCLAT) have beenconstituted by Central Government with effect from 1 June,2016.ThiswouldeffectivelydissolvetheCompanyLawBoard(CLB)asconstitutedundertheCompaniesAct,1956fromthesameday.TheNCLTstartedfunctioningwithelevenBenches–twoatNewDelhiandoneeachatAhmedabad,Allahabad,Bengaluru, Chandigarh, Chennai, Guwahati, Hyderabad,

KolkataandMumbai.ThePrincipalBenchof theNCLT isatNewDelhi.

Majority provisions of the Companies Act, 2013 (mainlypertaining to powers of the CLB) relating to powers ofTribunal havebeennotifiedby theGovernment (whichwerenot effective due to non constitution of NCLT) including theprovisionspertainingtocompromiseandarrangement,windingup etc. Further, the Insolvency and Bankruptcy code 2016alsorecognizedNCLTasAdjudicatingAuthorityforcorporateinsolvencyresolutionprocess,liquidationandwindingup.

TheordersofNCLTwereemergingasanewsourceof law

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withthoughtprovokinginterpretationsandlogicalreasons.TheprofessionalsincludingCompanySecretariesinparticularareplayingcrucialroleinappearancebeforeNCLT.

ThereisaneedtoanalyzeNCLTordersforbringingcertaintyinthelawandaddingvaluetothestakeholders.Throughthiscompetition the same was envisaged for contributing to thesocietyandhelpingtheprofessionalsfortheircapacitybuilding.

Areas to be focused in the research papers:All the areas for which NCLT is empowered to issue the orders including in particular The Companies Act 2013 and Insolvency and Bankruptcy Code 2016 ( IBC ) . Specific subjects are as under:1. OppressionandMismanagement2. MergersandAmalgamations3. Appointment/Removal of Directors/Managerial persons

andKMP4. Appointment/RemovalofAuditors5. Appointment/RemovalofInsolvencyProfessionals6. Admission/Rejectionofoperationalandfinancialcreditors

applications under IBC7. CompaniesAct2013othersectionorders

Structure of the Research PaperResearchers/Professionals need to focus on the orders ofNCLT with their analysis present the paper in the followingsuggestedstructure:k Facts of the recent NCLTOrders with the details of the

Bench that delivered the ordersk FactsofthecaseDictumk Relevant Provisions of the Law - Rules & Sections,

Decisions.k Commentary / Critical Analysis (along with various

Landmark judgments pronounced by courts or CLB orNCLT).

k CriticalViews&AnalysisofanyfactthathavebeenomittedintheDictum

k Pointoflaw.However, researcher may have a freedom to add or delete any paragraphs with suitable headings.

Research Paper / Manuscript Guidelinesn Original papers are invited fromCompanySecretaries in

employment&practice,Academicians,ResearchScholarsandotherProfessionals.

n Themanuscriptswillbesubjectedtoablindreviewprocessn Thepapermustbeaccompaniedwiththeauthor’sname(s),

affiliations(s),fullpostaladdress,emailID,andtelephone/fax number alongwith the title of the paper on the frontpage.

n FulltextofthepapershouldbesubmittedinMSWordusingTimesNewRoman, fontsize12onA4sizepaper in1.5spacing,withamaximumof5000words.

n Thetextshouldbetypeddouble-spacedonlyononeside

ofA4sizepaperinMSWord,TimesNewRoman,12fontsizewithone-inchmarginsallaround.

n Theauthor/s’nameshouldnotappearanywhereelseonthe body of the manuscript to facilitate the blind review process.Theresearchpapershouldbeinclear,coherentandconciseEnglish.

The research paper should contain the write-up on the selected Chapter,Sections/RulesandCommentaries.Thefollowingpoints to be considered:n Tables should be numbered consecutively in Arabic

numeralsandshouldbereferredtointhetextasTable1,Table 2 etc.

n All notes must be serially numbered. These should begivenatthebottomofthepageasfootnotes.

n The following should also accompany the manuscriptsonseparate sheets: (i)Anabstractof approximately150wordswithamaximumoffivekeywords,and (ii)Abriefbiographicalsketch(60-80words)oftheauthor/sdescribingcurrent designation and affiliation, specialization, numberof books and articles in refereed journals, membershipnumber of ICSI and other membership on editorial boards andcompanies,etc.

n The research papers should reach the Competition Committeeonorbefore30thAug2017by12noon(IST).

n Participants should email their research papers on thefollowingemailid:[email protected]

n Authorsneedtogiveadisclaimerattheendoftheirresearchpapers that is “Viewsexpressed in the researchpaper ispersonalandthereisnointentiontocriticizepersonallyanyHonorableMemberofNCLT”.

FurtherInformationforAuthors/Participantsn ThedecisionoftheReviewingCommitteewillbefinaland

bindingontheparticipants.n The Institute of Company Secretaries of India reserves

therighttopublishorrefertheselectedpapersforvariouspublications viz; Souvenirs, Books, Study materialspublished by the institute or in any seminar / conference / workshop / Research Programs conducted by instituteeitheronitsownorjointlywithotherorganizationsandalsoinregularcourseofactivitiesofICSI.Further,theauthorswhosepaperswillbeselectedwillreceiveanAppreciationLetterfromtheinstituteandProgramCreditHours(4PCH).

n ICSI reserves all intellectual property rights includingin particular copyright, trade mark, design and otherintellectual rights. The authors are not entitled for anyremuneration or compensation or royalty. The participants / authorsshallsubmittheDeclarationFormtotheinstituteatthe time of submission of paper.

n ICSImaypayhonorariumaspertheguidelinesforselectedpapersonpublicationintheCharteredSecretaryJournal.

n ThepaperswillbescrutinizedbyanExpertCommitteeandonlyhighqualitypaperswillbepublishedinthejournal

n Foranyquery /assistance,kindlycontactat: [email protected]/+91-22-41021515/1501

CS (Dr.) Shyam AgrawalPresident,ICSI

CS Ahalada Rao V CS Ashish GargChairman,ICSI Chairman,ICSICCGRTResearchCommittee ManagementCommittee

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ICSI – CCGRT ANNOUNCES

Unique Critical Research Analysis of Indian Companies Act, 2013

I CSI-CCGRT is pleased to announce unique CriticalResearch Analysis of Companies Act, 2013 with

an objective of creating knowledge reserve among itsMembers, both in employment and practice, studentspursuing Company Secretary and other professionalcourses, academicians, corporate professionals andother interested folk in order to make them as epitome of knowledgeandusefultocorporateworld.

The purpose of competition is to identify significantconceptsandtrytofindoutacomprehensiveanddefinitivesolutions. Since research in all disciplines and subjects,mustbeginwithaclearlydefinedgoal, thisstudy isalsodesignedkeepingthoseobjectivesinmind.

PrologueIndianCompanyLawisaprocedurallaw,emergingoutwith

CENTRE FOR CORPORATE GOVERNANCE, RESEARCH & TRAINING (CCGRT)

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various critical issues in its implementation and operation. Since01-04-2014,being thenotificationdate forvarioussections, industry professionals, corporates are facingvarious critical issues which are of utmost importance in thefieldoflawaswellasintheexecution.Further,thenewCompaniesActhaveprovided robustbase toCorporateGovernance. As it can be observed from the corporatehistory,thattherehavebeenlotoffinancialfiascoswhichhave takenplace,and in turnhavecreated theneed foreffective corporate governance. The new CompaniesAct has espoused the tenets of corporate governance,thereby,playedapivotalroleinprotectingtheinterestofstakeholders. Embracing the concepts like, IndependentDirector,WomanDirector,SecretarialAudit,InternalAudit,CSR,ClassActionSuit,RelatedPartyTransactionetc.allgoesalongwayinensuringthebestgovernancepracticesonthepartofthemanagementofcorporatehouses.

In light of this, it generates substantial interest to delvedeep into the critical angles of Indian Companies Act,2013. These critical research analyses help the members andothersforidentifyingthegapsandalsoprovidingthesolutionstotheindustryandregulatorsetc.

Objectives: a) To comprehend the implications of critical aspects

coveredunderCompaniesAct,2013.

b) To analyze the different school of thoughts on thecritical issues.

c) To find out probable solution based on National /International Practices, Principles, procedures andJudicialPronouncements.

d) To understand the probable hurdles that are beingwitnessed by corporate houses in embracing thesectionscoveredunderCompaniesAct,2013.

e) To draw a comparison with relevant international corporate laws while studying the critical aspectscoveredundertheChaptersxItoxxIx.

Please submit your views through the below given links either all questions or any no. of questions or alternative by emails at [email protected] & [email protected]

Coverage-

v CHAPTER XIII- APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL

1. IfapersonisnotfulfillingtheconditionsofSection196(3) of the Companies Act, 2013, whether aCompanycanappointhimasManagingDirector/Whole-TimeDirector/Managerwith the approvalof Central Government? Please provide youranswerwithdetailedcommentaryalongwiththerelevant case laws.

2. If a Company which was not covered under Section 269of theCompaniesAct, 1956hasappointedapersonasManagingDirector/Manager/Whole-Time Director for lifetime, whether he/she can

continue his/her employment as such or the company needs to reappoint him/her for 5 years pursuant to Section 196 of theCompanies Act,2013?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevantcaselaws.

3. WhetherapersoncanbeappointedasManagingDirector/Manager/Whole-Time Director in morethan one Company(s) which are not covered underSection203?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevantcase laws.

4. If a Private Company appoints a person on itsBoard as executive Director than whether thatCompany need to comply with the provisions of Section 196? Please provide your answer withdetailedcommentaryalongwiththerelevantcaselaws.

5. IfapersonisdisqualifiedunderPartIofScheduleVbut complywith the provisionsof theSection196, thenwhetheraGovtandPrivatecompanycan appoint that person as Managing Director/Whole-Time Director/Manager pursuant toSection 196? Please provide your answer withdetailedcommentaryalongwiththerelevantcaselaws.

6. ABCPrivateLimitedisaprivatelimitedcompanyincorporated under the Companies Act, 1956.xYZCorporationistheholdingCompanyofABCPrivateLimited,incorporatedinJapanandhavingitsregisteredofficeinJapan.xYZhasdeputeditswhole-timeemployeeMr.Oas thebranchheadintheJapanBranchofficeofABC.Japanbranchoffice(JBO)ispayingxYZfortheservicesofMr.O and no payment is being made to Mr. O byJBOdirectly.Mr.ObeingtheJapanbranchhead,is involved in theday todayworkingofJBO. Inaddition, Mr. O is also assigned as a divisionheadinoneofthedivisionsofxYZ.NowMr.OisproposedtobeappointedastheDirectorofABCPrivateLimited.WhetherhisappointedasdirectorinABCPrivateLimitedistreatedasWhole-TimeDirectorornot?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevantcaselaws.

7. WhetheraCompanycangivesitting fee toKeyManagerial Personnel? Please provide youranswerwithdetailedcommentaryalongwiththerelevant case laws.

8. Whether a Company Secretary can hold the position of Whole-Time Director/Manager/ManagingDirectorinthesameCompany?Pleaseprovide your answer with detailed commentary alongwiththerelevantcaselaws.

9. Whether a person can be appointed as Whole-TimeDirectorinmorethanoneCompany?Please

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provide your answer with detailed commentary alongwiththerelevantcaselaws.

10. Whether all Managing Director/Whole-TimeDirector/Manager/Chief Executive Officer/Company Secretary/Chief Financial Officer arede-facto Key Managerial Personnel (KMPs) orPerson(s)appointedunder203areonlyKMPs?

11. Whether a Company can appoint a person as ManagingDirector/Whole-TimeDirector/Managerfor5yearswhohasattainedtheageof68yearswithout special resolution? Please provide youranswerwithdetailedcommentaryalongwith therelevant case laws.

12. Mr.xaforeignresidentisinfulltimeemploymentofxYZLimited,nowheisappointedasAdditionalDirector of the xYZ Limited. Whether the xYZLimitedisrequiredtoobtainCentralGovernmentapproval for his appointment as AdditionalDirector? Please provide your answer withdetailedcommentaryalongwiththerelevantcaselaws.

13. Whether a Company can pay more than 5% or 10% of Net Profit subject to the overall limitof 11% to its Whole-Time Director/ManagingDirector/Managerasthecasemaybe,withouttheCentral Government Approval? Please provideyouranswerwithdetailedcommentaryalongwiththe relevant case laws.

14. Whether a Company can pay more than 1% or 3% of Net Profit to its Non-Executive Director(IncludingIndependentDirector)asthecasemaybe,withoutCentralGovernmentApproval?Pleaseprovide your answer with detailed commentary alongwiththerelevantcaselaws.

15. WhetheraCompanycanpayall the11%ofNetProfit to one Director/Managing Director/Whole-Time Director/Manager without the CentralGovernment Approval? Please provide youranswerwithdetailedcommentaryalongwith therelevant case laws.

16. Whether a Company can give monthly fixremunerationtonon-ExecutiveNon-IndependentDirector? Please provide your answer withdetailedcommentaryalongwiththerelevantcaselaws.

17. WhetheraPublicCompanycangiveremunerationto Non-Executive Director in case of Loss orInadequate Profit as per Schedule-V? Pleaseprovide your answer with detailed commentary alongwiththerelevantcaselaws.

18. Mr.AisholdingthepositionofManagingDirectorofABCLimitedandxYZLimitedandwithdrawingsalaryofRs.1CrorefromABCLimitedandRs.

1.5CrorefromxYZLimited.ProfitfortheYearforABCLimitedisRs.20CroreandforxYZLimitedisRs.30Crore.WhethertheremunerationreceivedbyMr.AiswithinthelimitasperCompaniesAct?If not how much remuneration he can take from boththeCompanies?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevantcase laws.

19. Whetherremunerationtoamanagingdirectorcanbegivenwithoutpassingshareholder’sresolutionbyacompany?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevantcaselaws.

20. IfaManagingDirectorwasappointedbyenteringinto an agreement with the Company andafter expiry of such agreement whether boardresolutionisrequiredforhisvacationoffilingwiththeRegistrarofCompanies?Pleaseprovideyouranswerwithdetailedcommentaryalongwiththerelevant case laws.

21. If a person has dual citizenship, whether hisappointment in a Public Limited Company inIndia require Central Government Approval orNot? Please provide your answer with detailedcommentaryalongwiththerelevantcaselaws.

Google Link: https://docs.google.com/forms/d/e/1FAIpQLSfHmQwuh9M8kvKmlbRw7LCccP_N6Su1UGuZreMo2AnmjbqmLA/viewform?c=0&w=1

v Chapter XVIII-REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES

1. What will be the treatment of property in case of strike offofCompanybyorderofROCu/s248(1)?

2. Whether director will be disqualify under section164(2) readwith section167evenafter strikeoff ofCompany?• StrikeoffbyorderoftheCourt• Suo motu strike off

3. After strike offwhetherROCcan issue show causenoticefornonfilingofannualforms?

4. Whether after strike off of companies, creditors canapply for IBC?

5. WhetherBankAccountcanbemaintainafterstrikeoffof Companies?

6. Whether a third party can apply for restoration ofCompany after strike off?

7. WhatistheimpactoflimitationactonRestorationofstrike off application?

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8. What are the provisions of re allocation of name of a strike off company to a new Company?

Google Link:https://docs.google.com/forms/d/e/1FAIpQLSeJNUaFDB-hy9VliEeUysBNfmhggrI8U8EyuP34N2r_SkwgnA/viewform?c=0&w=1

How to present the Significant AspectsAnswersofthecriticalissuesneedstobepresentedintheformat appended below-aS.No.a Issue (heads)a Detailsofissuewithjustificationa DifferentSchoolofThoughtsa Interpretation issuesa RelevantSectionsofIndianCompaniesAct,2013as

wellasIndianCompaniesAct,1956.a Relevant provisions of any other Indian Corporate

LawsandinternationalCorporateLaws.

Research Paper / Manuscript Guidelinesk OriginalpapersareinvitedfromCompanySecretaries

in employment & practice, Chartered Accountants,Advocates,Academicians,merchantbankers,doyensfrom industry and interested folk.

k The paper must be accompanied with the author’sname(s), affiliations(s), full postal address, email ID,and telephone/faxnumberalongwith the title of thepaper on the front page andmembership details ofprofessionalbodies,ifany.

k FulltextofthepapershouldbesubmittedinMSWordusing Times New Roman, font size 12 on A4 sizepaperin1.5spacing,withamaximumof5000words.

k ThetextshouldbetypedinMS-Word.

k Theauthor/s’nameshouldnotappearanywhereelseon the body of the manuscript to facilitate the blind review process. The research paper should be in clear,coherentandconciseEnglish.

k Tables/ExhibitsshouldbenumberedconsecutivelyinArabicnumeralsandshouldbereferredtointhetextasTable1,Table2/Exhibit1,Exhibit2etc.

k Allnotesmustbeseriallynumbered.Theseshouldbegivenatthebottomofthepageasfootnotes.

k Thefollowingshouldalsoaccompanythemanuscriptson separate sheets: (i) A brief biographical sketch

(60-80 words) of the author/s describing currentdesignation and affiliation, specialization, number ofbooksandarticles in refereed journals,membershipnumber of ICSI, if any, and other membership oneditorialboardsandcompanies,etc.

k The research papers should reach the Competition Committeeonorbefore30thofJuly2017by12noon(IST).

k Participantsshouldemailtheirresearchpapersonthefollowing email id: [email protected] & [email protected]

k Thepapermaybepresentedeitherinsinglesectionofany chapter or multiple sections after chapters.

k There is no restriction on number of entries. Oneparticipant can submit more than one entries.

Further Information for Authors / Participants k ThedecisionoftheReviewingCommitteewillbefinal

andbindingontheparticipants.

k The Institute of Company Secretaries of India reserves the right to publish or refer the selected papers forvarious publications viz; Souvenirs, Books, Studymaterials published by the institute or in any seminar / conference / workshop / Research Programsconductedbyinstituteeitheronitsownorjointlywithother organizations and also in regular course ofactivities of ICSI.

k ThepaperswillbescrutinizedbyanExpertCommittee.

k Foranyquery/assistance,kindlycontactat:[email protected]

k Participantswillberewardedwithsuitableprizes.

k Further participants who are the members of the ICSI will be conferred with credit hours of ICSI based on thecontentandqualityoftheresearchpaperandasrecommendedbyscreeningcommittee.

k ICSIreservesall intellectualpropertyrightsincludinginparticular copyright, trademark,designandotherintellectual rights. The authors are not entitled forany remuneration or compensation or royalty. The participants / authors shall submit the DeclarationForm to the institute at the time of submission of paper.

k ICSIreservealltherightsforfinalizationandselectionofpapersandawardingrewards,credithours.

CS (Dr.) Shyam AgrawalPresident,ICSI

CS Ahalada Rao V CS Ashish GargChairman,ICSI Chairman,ICSICCGRTResearchCommittee ManagementCommittee

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ICSI Invites Members To

Share their Vision to Shape New ICSI – 2022

T heyear2017,alandmarkyear,whenICSIisgoingtocelebrateitsGoldenJubilee,isalsoayear,whenalongwithcelebratingthe50gloriousyearsofourprofession,wealsoneedtomakeaprofoundintrospection.....

anintrospectionofthejourneytravelledsofar,sothatwecanpavethewayforthejourneytocomeforward.Thechallengebeforetheprofessionistomeettheexpectationsofallstakeholders;beitourstudents,members,tradeandindustry,regulatorincludingsocietyatlarge.

Aswhile unveilinghis vision2022 ‘New India’,Hon’blePrimeMinisterSh.NarendraModi expressed “I haveamilestoneof2022whenIndiacompletes75yearsofIndependence.Weallshouldtakeapledge,ofsomethinggood,that,wewanttocontributetothecountryandpromisetofulfillthatpledgebytheyear2022.Ifwearesuccessful,noonecanstopIndiafrombecomingaworldpower.”Adoptingthe“NewIndia”visionintheICSIway,wehavealsothoughtofdrawinga‘Vision2022’forICSIsothatourfraternitycanproudlybeapartof“NewIndia,NewICSI’dream by the year 2022.

The implementation of thisVision 2022will certainly ensurewholeNew ICSI, therefore, ICSI isworking in linewith‘Reform,TransformandPerform’MantraofthepolicymakersofIndia.Whiledoingthis,weinviteyouractiveparticipationto‘Reform’ICSIthroughvision2022;sothatICSIcan‘Transform’itspedagogyforthosewhohaveto‘Perform’extraordinarilymakeICSIaGlobalLeaderinCorporateGovernance,therebypavingthewayforNationalGovernancebytheyear2022.

Having a glance at the numbers, under present distance learning mode, only 4,000-5,000 new members arechurnedoutofahugestudentpoolofaround4,00,000studentsinICSI.Otherrelatedissuesbeingtrainingandexaminations.Thishasbeenopinedthatthissystemhasashadowonthequalityandhascreatedademand-supplyimbalanceintheyearsgoneby.

ThealternativetothatisaregularCScoursethroughwhichstudentsaregrilledintheboundariesofaclassroomenvironmenttosurmountthelimitationsofdistancelearningmodeandbyinductingqualitystrataofstudentsataveryinitialstageitself.Therefore,weareinvitingyourvaluableopiniontochalkouttheroadmapforfuture.TheaimistobuildaforceofWorldClassGovernanceProfessionalsofcourse.Kindlyexpressyourvaluableviewson:

Which roadmap out of the following ICSI should adopt in future for the Company Secretaryship course for its students so as to Groom World Class Governance Professionals out of the alternatives given below?

1.ShouldstatusquobemaintainedandthepresentsystemofDistanceLearningshouldcontinueinitscurrentform.Ifyes,why,ifnot,whynot?

Or

2.Should a new system of regular learning via say a ‘Three Year Full-time Classroom Course’ of CompanySecretaryship’beintroducedandthepresent‘DistanceLearningmode’bediscontinued(takingalimitednumberofmeritoriousstudentsbasedonanentrancetesttostrikeademand-supplybalance).Ifyes,why,ifnot,whynot?

Or

3.ShouldtheInstituteshouldgofora ‘DualMode’of introducingsayaThree-YearFull-timeRegularCourseofCompanySecretaryshipalongwiththepresentDistanceLearningmode.Ifyes,why,ifnot,whynot?

Or

4.Anyothermodeofconductingthecoursewhichcanbringout‘WorldClassGovernanceProfessionals’.Pleasegiveyourviewsindetail.

Please submit your response at - https://goo.gl/forms/AsSS22REgXUclNe32

The link is also available on the ICSI website: www.icsi.edu


n WHENANEx-EMPLOYEEREFUSESTOVACATETHEPREMISES,HISFAMILYMEMBERSCANNOTBEPROSECUTEDUNDERSECTION630OFTHEACTASLONGASTHEEMPLOYEEISALIVE.[SC]

n ADMINISTRATIVECIRCULARISSUEDBYSEBIISNOTANAPPEALABLEORDERUNDERSECTION15T.[SC]n CCIPENALISESHYUNDIMOTORSFORRESALEPRICEMAINTENANCETHROUGHDISCOUNTCONTROLMECHANISMANDISSUESCEASEANDDESISTORDER.n MEREINVESTMENTSCANNOTBEREGARDEDASLEVERAGEOFDOMINANTPOSITION,PARTICULARLYWHENOP-1ITSELFISNOTENGAGEDINBUSINESSOF

PROVIDINGTELECOMSERVICESORANYACTIVITIESINCIDENTALTHERETO.[CCI]n THECOURTWASCLEARLYVESTEDWITHTHEPOWERTOGRANTINTERIMMEASURESPRIORTOTHEAWARDBECOMINGADEEMEDDECREEUNDER

SECTION36OFTHEACT.[DEL]n DELHIHIGHCOURTREFUSESTOISSUEINJUNCTIONAGAINSTENCASHINGBANKGUARANTEES.n WHENTHEPARTNERSANDTHOSEWHOCLAIMTHROUGHPARTNERSAGREEDTOGETTHEDISPUTESETTLEDBYARBITRATION,ITISNOTOPENFORTHE

APPELLANTSTOCONTENDTHATPARTNERSHIPBEINGUNREGISTEREDPARTNERSHIP,THEDISPUTECANNOTBEREFERRED.[SC]n USEOFFACILITYDOESNOTAMOUNTTOTECHNICALSERVICES,ASTECHNICALSERVICESDENOTESERVICESCATERINGTOTHESPECIALNEEDSOFTHE

PERSONUSINGTHEMANDNOTAFACILITYPROVIDEDTOALL.[SC]

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CorporateLaws

LMJ 21:07:2017J.K. (BOMBAY) LTD v. BHARU MATHA MISHRA & ORS [SC]

Criminal Appeal No. 87 of 2001

K.T. Thomas & R.P. Sethi, JJ. [Decided on 18/01/2001]

Equivalent Citations: 2001 (1) SCR 439; AIR 2001 SC 649; (2001) 104 Comp Cas 424;(2001) 2 JT 36.

Companies Act, 1956- section 630- criminal proceedings against directors/employees- refusal to vacate quarters- whether family members of the defaulting officer, who is alive, could be prosecuted- Held, No.

Brief facts:Whetherthefamilymembersofanemployeeoranex-employeeofacompanycanbeproceededwithinacriminalcourt,convictedandsentencedforthecommissionofoffenceunderSection630oftheCompaniesAct?(“theAct”)isthequestionoflawtobedeterminedby us in this appeal.

RelyinguponthejudgmentofthisCourtinAbhilashVinodKumarJain(Smt.)v.Cox&Kings(India)Ltd.&Ors.,[1995]3SCC732,ithasbeenarguedonbehalfofthecompanythattheexpression“officeroremployee”appearinginSection630oftheActwouldincludeallhis family members.

OneMataHarshMishra,who is thehusbandof respondentNo.1and father of respondentNo. 2, joined theemployment of theappellant-companyasTraineeSupervisorinitsplant,HewasallottedFlatNo.8inAnilCo-operativeHousingSocietyLtd.Afterresigningfromthejob,herefusedtovacatetheflatonthepretextthatashehadnotbeenpaidhisdues,hehadarighttoremaininoccupation.CompanyfiledacomplaintunderSection630of theActagainstMishra,itsex-employeeandtherespondents1and2herein.TherecallapplicationofrespondentshereinwasrejectedbytheTrialCourt.Highcourtallowedthewritpetitionandquashedtheprocessagainst the respondents herein.Company challenged theaboveorder before the Supreme Court.

Decision: Appeal dismissed.

Reason:ThedivergenceofopinionbetweenvariousHighCourtsregardinginterpretationoftheexpression“anofficeroremployeeofacompany”appearinginSub-section(1)ofSection630oftheActwasresolvedby thisCourt inBaldevKrishnaSahi v.ShippingCorporation ofIndia, [1987] 4SCC361 holding that the expression “officer or

employee of a company” applies not only to existing officer oremployeebutalsoincludespastofficersoremployeeswheresuchofficeroremployee;either(a)wrongfullyobtainspossessionofanyproperty,or(b)wrongfullywithholdsthesameaftertheterminationof his employment.

Section630oftheActwhichmakesthewrongfulwithholdingofanypropertyofacompanybyanofficeroremployeeofthecompanyapenal offence, is typical of theeconomyof languagewhich ischaracteristicofthedraughtsmanoftheAct,TheSectionisintwoparts. Sub-s. (l) by clauses (a) and (b) creates two distinct and separate offences. First of these is the one contemplated by clause (a),namely,whereanofficeroremployeeofacompanywrongfullyobtainspossessionofanypropertyofthecompanyduringthecourseofhisemployment,towhichheisnotentitled.Normally,itisonlythepresentofficersandemployeeswhocansecurepossessionofanypropertyofacompany.It isalsopossibleforsuchanofficeror employee after termination of his employment towrongfullytake away possession of any such property. This is the function ofclause(a)andalthoughitprimarilyreferstotheexistingofficersandemployees, itmayalsotake inpastofficersandemployees.In contrast, clause (b) contemplates a casewhere an officer oremployeeofacompanyhavinganypropertyofacompanyinhispossessionwrongfullywithholdsitorknowinglyappliesittopurposesotherthanthoseexpressedordirectedinthearticlesandauthorisedbytheActItmaywellbethatanofficeroremployeemayhavelawfullyobtainedpossessionofanysuchpropertyduringthecourseofhisemploymentbutwrongfullywithholdsitaftertheterminationofhisemployment. That appears to be one of the functions of clause (b). It would be noticed that clause (b) also makes it an offence in any officeroremployeeofacompanyhavinganypropertyofthecompanyinhispossessionknowinglyappliesittopurposesotherthanthoseexpressedordirectedinthearticlesandauthorisedbytheAct.Thatwouldprimarilyapply to thepresentofficersandemployeesandmayalsoincludepastofficersandemployees.Thereisthereforenowarranttogivearestrictivemeaningtotheterm‘officeroremployee’appearinginSub-section(1)ofSection630oftheAct.It isquiteevidentthatclauses(a)and(b)areseparatedbytheword‘or’andthereforeareclearlydisjunctive.”

Again,thisCourtinAmritlalChumv.DevoprasadDuttaRoy,[1988]2SCC269;AtulMathurv.AtulKalra,[1989]4SCC514andGokakPatelVokartLtd.v.DundayyaGurushiddaishHiremath, [1991]2SCC141,interpretedthepositionoflawandapprovedthedictumofthisCourtinBaldevKrishnaSahi’scase.In Abhilash Vinod Kumar Jain’s case (supra) this Court wasconcernedwiththeprosecutionofthelegalrepresentativesofthedeceasedemployeeandinthatcontext,itheld;

“Thus,ouranswertothequestionposedintheearlierpartofthisjudgmentisintheaffirmativeandweholdthatapetitionunderS.630oftheActismaintainableagainstthelegalheirsofthedeceasedofficer/employeeforretrievaloftheCompany’spropertywrongfullywithheldbythemafterthedemiseoftheemployeeconcerned.”

StretchingfurthertheverdictoftheCourtinAbhilashVinodKumarJain’scase, the learnedcounselappearing for theappellanthassubmitted that as legal heirs of the erstwhile employee can beprosecuted, the other familymembers of such employee, livingwithhimcannotescapetheirliabilityofprosecution.Theargument,though attractive on the face of it, is devoid of any forcewhenexaminedindepthinthelightoftheconstitutionalmandateandthe

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legalprovisionsapplicable in thecase.Thepenal lawcannotbeinterpreted in a manner to cover within its ambit such persons who areleftoutbythelegislature.Thepositionofthelegalheirsofthedeceasedemployeecannotbeequatedwiththefamilymembersofanerstwhileemployeeagainstwhom,admittedly, thecriminalprosecutionislaunchedandpending.Incriminalcasesthelawwhichentailsconvictionandsentence,liberalconstruction,withtheaidofassumption,presumptionandimplicationscannotberesortedtoforthepurposeofropinginthecriminalprosecution,suchpersonswhoare otherwise not intended to be prosecuted or dealt with by criminal court.AcceptingthecontentionoftheappellantwouldamounttotheviolationoffundamentalrightofpersonallibertyasenshrinedunderArticle21of theConstitutionwhichdeclaresthatnopersonshallbedeprivedofhis lifeorpersonal libertyexceptaccordingtotheprocedureestablishedbylaw.TheparamountobjectofArticle21istopreventtheencroachmentoftherightofapersonwithrespecttohislifeandliberty,saveinaccordancewiththeprocedureestablishedbylawandinconformitywiththeprovisionsthereof.PersonallibertyenvisagedunderthisArticlemeansfreedomfromphysicalrestraintofapersonbyincarcerationorotherwise.Agreeingwiththepleaoftheappellantwouldalsobeagainstthepublicpolicy,inasmuchas under similar circumstances the companies would be authorised to resort to harassment tactics byhaving recourseof arraigningminorsandoldmembersofthefamilyofitsofficeroremployeeinofficeorevenpast.

Weareofthefirmopinionthatallthefamilymembersofanalive‘officer’or‘employee’ofacompanycannotbeproceededwithandprosecutedunderSection630oftheAct.Theorderimpugneddoesnotsufferfromanyillegality,requiringourinterference.

LW 48:07:2017NATIONAL SECURITIES DEPOSITORY LTD v. SECURITIES AND EXCHANGE BOARD OF INDIA [(2017) 5 SCC 517]

Civil Appeal No. 5173 of 2006 with Civil Appeal No. 186 of 2007.

Pinaki Chandra Ghose & R.F.Nariman, JJ. [Decided on 07/03/2017]

SEBI Act, 1992- sections 11 and 15T- appealable orders- whether administrative circular issued by SEBI is appealable before the SAT- Held, No.

Brief facts:ThepresentappealraisesaninterestingquestionastowhetheranadministrativecircularthatisissuedbySEBIunderSection11(1)oftheSecuritiesExchangeBoardofIndiaAct,1992,canbethesubjectmatterofappealunderSection15TofthesaidAct.By an administrative circular dated 9thNovember, 2005,SEBIunder the caption “review of dematerialization charges” issuedanadministrativecircularunderSection11(1)of theSEBIAct toprotect the interests of investors in securities and to promote the developmentof,andtoregulatethesecuritiesmarket.

Depositorieswereadvisedbythesaidcirculartoamendallrelevantbye-laws,rulesandregulationsinordertoseethatwitheffectfrom9thJanuary,2006,nochargesshallbeleviedbyadepositoryonDPsandconsequentlybyaDPonabeneficiaryownerwhenabeneficiaryownertransfersallsecuritieslyinginhisaccounttoanotherbranchofthesameDPortoanotherDPofthesamedepositoryoranotherdepository, provided theBOaccount at transfereeDPand thattransferorDPareidenticalinallrespects.

A preliminary objection was raised in the appeal filed by therespondentbeforetheSecuritiesAppellateTribunal.ItwasurgedthatundertheSEBIAct,SEBIhasadministrative, legislativeandquasi-judicialfunctions.AppealspreferredtotheSecuritiesAppellateTribunalcanonlybefromquasi-judicialordersandnotadministrativeandlegislativeorders.

This preliminary objectionwas turned down by the impugnedjudgmentdated29thSeptember,2006,bytheSecuritiesAppellateTribunal. According to the Tribunal, the expression “order” isextremelywide,and therebeingnothing in theAct to restrictanappealonlyagainstquasi-judicialorders,appealswouldlieagainstall three typesofordersunder theAct i.e.administrativeorders,legislativeordersaswellasquasi- judicialorders.Thiswasheldpurportedly following thedecision inClariant International Ltd.&Anr.v.Securities&ExchangeBoardofIndia[(2004)8SCC524].TheTribunal,therefore,rejectedthepreliminaryobjectionandwentintothemeritsoftheargumentsagainsttheimpugnedcircular,anddismissed the same.Crossappealshavebeenfiledbeforeus.CivilAppealNo.5173of2006hasbeenfiledbytheNationalSecuritiesDepositoriesLtd,onthemeritsofthedismissal,whereasCivilAppealNo.186of2007hasbeenfiledbytheSEBIagainsttherejectionofthepreliminaryobjectionraisedbeforetheSecuritiesAppellateTribunal.

Decision: Appeal of SEBI allowed. Appeal of NSDL dismissed.

Reason:Wewilltakeupthesecondappealfirstinasmuchasifthepreliminaryobjectionweretosucceed,itisclearthatthemeritswouldnothavetobegoneinto.

We have now to determine on a conspectus of the authorities as towhetherSection15T refersonly toquasi-judicialorders,quiteapart from the construction placed upon the Section earlier in this judgment.SEBIisanexpertbodycreatedbytheActwhich,ashasbeenstatedearlier,hasadministrative,legislativeandquasi-judicialfunctions.

Itmaybestated thatbothRulesmadeunderSection29aswellasRegulationsmadeunderSection30havetobeplacedbeforeParliamentunderSection31oftheAct.ItisclearonaconspectusoftheauthoritiesthatitisordersreferabletoSections11(4),11(b),11(d),12(3)and15-Iof theAct,beingquasi-judicialorders,andquasi-judicialordersmadeundertheRulesandRegulationsthatarethesubjectmatterofappealunderSection15T.Administrativeorderssuch as circulars issued under the present case referable to Section 11(1)oftheActareobviouslyoutsidetheappellatejurisdictionoftheTribunalforthereasonsgivenbyusabove.

CivilAppealNo.186of2007is,therefore,allowedandthepreliminaryobjectiontakenbeforetheSecuritiesAppellateTribunalissustained.ThejudgmentoftheSecuritiesAppellateTribunalis,accordingly,set aside.

In thisviewof thematter,CivilAppealNo.5173of2006beingachallengetothemeritsof the impugnedcircular,hasnecessarilytobedismissed.Wemake it clear that liberty isgranted to takeappropriatesteps in judicial reviewproceedings tochallenge theaforesaidcircularinaccordancewithlaw.CivilAppealNo.5173of2006isdisposedofaccordingly.

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Further,HMILhas contravened theprovisions ofSection 3(4) (a)readwithSection 3(1) of theAct inmandating its dealers to userecommended lubricants/oilsandpenalising themforuseofnon-recommended lubricants and oils.Accordingly,HMILisdirectedtoceaseanddesistfromindulginginconduct that has been found to be in contravention of the provisions oftheAct,asnotedabove.

Sofarasimpositionofmonetarypenaltyisconcerned,theCommissionnotes the submissionsmade on behalf ofHMIL on the issue ofquantumofpenalty.Itwasarguedthatpenaltyshouldbeproportionateto the contravention established. It was pointed out that the automobile sector currently witnesses robust competition and does not warrant intervention.Nosupra-normalprofitshavebeenmadebyHMILduringthis period. It was also canvassed that the principle of relevant turnover whilepenalisingistobeconsidered.Lastly, itwashighlightedthatHMILalreadyhasputinplaceacompetitionlawcomplianceprogramandHMILisafirsttimeoffenderwithnopreviousvalidordersagainstit.

Comingtothefactsofthepresentcase,theCommissionnotesthatthe infringinganti-competitiveconductofHMIL in the instantcaseincludedputtinginplacearrangements,whichresultedintoResalePriceMaintenancebywayofmonitoringofmaximumpermissiblediscountlevelthroughaDiscountControlMechanismandapenaltymechanism for non-compliance of the discount scheme. Such conduct pertainstoandemanatesoutofsaleofmotorvehicles.Hence,forthepurposesofdeterminingtherelevantturnoverforthisinfringement,revenue from sale of motor vehicles alone has to be taken into account.

OnacarefulconsiderationofthenatureofthecontraventionsmadeandthepointsurgedbyHMILformitigation,theCommissiondecidestoimposepenaltyonHMILattherateof0.3%ofitsaveragerelevantturnoverofthelastthreefinancialyears.Accordingly,theCommissionimposesapenaltyofRs.87croreonHMILfortheimpugnedconductincontraventionoftheprovisionsofSection3(1)readwithSection3(4)oftheAct,asdetailedintheorder.

LW 50:07:2017BHARTI AIRTEL LTD v. RELIANCE INDUSTRIES LTD & ANR [CCI]

Case No. 03 of 2017

D.K.Sikri, S. L. Bunker, Sudhir Mital, Augustine Peter, U. C. Nahta, Justice G. P. Mittal [Decided 09/06/2017]

Competition Act, 2002- section 4- abuse of dominance- providing free services for a specified period to promote sales- whether abuse of dominance-Held, No.

Brief facts:The primary concern of the Informant relates to the free services beingofferedbyOP-2sincethe inceptionof itsbusiness i.e. from5thSeptember,2016underoneofferortheother.ThisaccordingtotheInformantamountstopredatorypricing,incontraventionoftheprovisionsofSection4(2)(a)(ii)oftheAct.Further,OP-1isallegedtobeincontraventionofSection4(2)(e)oftheActasithasallegedlyuseditsfinancialstrengthinothermarketstoenterintothetelecommarketthroughOP-2.

Decision: Complaint dismissed & Case closed.

LW 49:07:2017FX ENTERPRISE SOLUTIONS INDIA PVT. LTD v. HYUNDAI MOTOR INDIA LTD [CCI]

Case Nos. 36 & 82 of 2014

D.K.Sikri, S. L. Bunker, Sudhir Mital, Augustine Peter, U. C. Nahta, Justice G. P. Mittal [Decided 14/06/2017]

Competition Act,2002- section 3- anti competition agreements- Resale price maintenance through discount control mechanism- cease and desist order passed-

penalty also imposed on HMIL.

Brief facts:TheInformantsallegedthefollowingviolationsagainstHMIL.TheOP enters into exclusive dealership arrangementswith itsdealers,anddealersarerequiredtoobtainpriorconsentoftheOPbefore takingupdealershipsofanotherbrand. It is furtherallegedthatHMIL’sdealersareboundtoprocurespareparts,accessoriesandallotherrequirements,eitherdirectlyfromOPorthroughvendorsapprovedbytheOP.ItisfurtherallegedthattheOPalsoimposesa “DiscountControlMechanism” throughwhich dealers are onlypermittedtoprovideamaximumpermissiblediscountandthedealersarenotauthorisedtogivediscountwhichisabovetherecommendedrange.This is alleged to amount to “resale pricemaintenance” incontraventionofSection3(4) (e)of theAct. It isalsoalleged thatHMILisresponsibleforpricecollusionamongstcompetitorsthroughaseriesof“hub-and-spoke”arrangements.

Informant-1 has alleged thatHMIL perpetuates hub and spokesarrangement,whereinbilateralverticalagreementsbetweensupplieranddealersandhorizontalagreementsbetweendealersthroughtheroleplayedbyacommonsupplier,resultsinpricecollusion.Finally,itisallegedthatHMILhascontroloverthesourcesofsupplyforthedealer’sproductsandtiesthepurchaseofdesiredcarstothesaleofhigh-pricedandunwantedcarstoitsdealersandHMILdesignatessourcesofsupplyforcomplementarygoodsfordealersaswellas,whichresultina“tie-in”arrangementinviolationofSection3(4)(a)oftheAct.

Decision:Cease and desist order passed. Penalty imposed.

Reason: TheCommissionisoftheconsideredviewthatHMILhascontravenedtheprovisionsofSection3(4)(e)readwithSection3(1)oftheActthrougharrangementswhichresultedintoResalePriceMaintenance.Such arrangements also includedmonitoring of themaximumpermissiblediscountlevelsthroughaDiscountControlMechanism.

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Reason:The gravamen of the allegations of the Informant concerns freeservicesprovidedbyOP-2 since the inceptionof its business i.e.from5thSeptember2016underoneofferortheother.ThishasbeenallegedascontraventionoftheprovisionsofSection4(2)(a)(ii)oftheActbyOP-2.InordertoexaminetheimpugnedfreeservicesundertheprovisionsofSection4oftheAct,itneedstobeascertainedwhetherOP-2enjoysadominantpositoninanyrelevantmarket.OnlywhensuchapositionisestablishedasbeingenjoyedbyOP-2, itwillbeimperativetoexamineastowhetheritsimpugnedconductamountsto an abuse or not.

The Commission is of the view that the relevant product market in the facts and circumstances of the present case is the market for ‘provisionofwirelesstelecommunicationservicestoendusers’andaccordingly,therelevantmarketintheinstantcaseisthemarketfor‘provision of wireless telecommunication services to end users in each ofthe22circlesinIndia’.

Coming to theassessment of dominant position, theCommissionnotesthataftertheopeningupoftelecommunicationmarkettoprivateplayers, thismarket haswitnessed entry of a number of playerscompetingwitheachotherresultingindecreaseoftariffsandconstantimprovementsinqualityandvarietyofservices.AspertheTRAIpressrelease dated 17thFebruary, 2017, thewireless subscriber baseof private telecommunication players at pan-India level constitutes 91.09%asagainst8.91%heldbypublicsectorundertakings.Themarket is led by the Informant with a market share of 23.5% followed byVodafone(18.1%),Idea(16.9%),BSNL(8.6%),Ariel(8%),RCOM(7.6%),OP-2(6.4%),Telenor(4.83%),Tata(4.70),Sistema(0.52%),MTNL (0.32%)andQuadrant (0.27%).Further, in noneof the22telecommunicationcircles, theOppositePartyhasamarketsharehigherthan7%.Asmaybeseen,themarketischaracterisedbythepresenceofseveralplayersrangingfromestablishedforeigntelecomoperatorstoprominentdomesticbusinesshouseslikeTATA.Manyof theseplayersare comparable in termsof economic resources,technical capabilitiesandaccess tocapital.Further, themarket ischaracterisedbythepresenceofseveralplayersresultinginsufficientchoice to consumers who can shift from one service provider to another and that too with ease. This implies that dependence of consumers on anysingletelecomoperatorisnotofanysignificantextent.Againstthis background, it is difficult to construedominant position beingpossessedbyOP-2with 6.4%market share,which presupposesan ability to operate independently of the market forces to affect its consumers or competitors.

TheCommission notes that financial strength is relevant but notthe sole factor to determine dominant position of an enterprise. Considering comparable investments and financial strengths ofcompetitors,thesuccessofOP-2inmanaginglargescaleinvestmentsdoes not suggest dominant position being enjoyedbyOP-2. TheCommissiondoesnotfinditappropriatetoholdOP-2dominantinascenario where its customers constitute less than 7 per cent of the totalsubscriberbaseatpan-Indialevel,variousfunctionsoftelecomserviceprovidersareregulatedandentrenchedplayershavebeeninexistenceformorethanadecadewithsoundbusinesspresence,comparablefinancialpositon, technicalcapabilitiesandreputation.Evenifoneweretoconsider4GLTEservicesastherelevantproductmarket,OP-2isnotlikelytoholddominantpositioninsuchmarketonaccountofthepresenceoftheInformant,Vodafone,Idea,etc.,whoderivecommercialandtechnicaladvantagesduetotheirsustained

and sound business presence in other telecom services. It needs to beappreciatedthatOP-2isanewentrant,whohascommenceditsbusinessrecentlyi.e.from5thSeptember,2016.

IntheabsenceofanydominantpositionbeingenjoyedbyOP-2intherelevantmarket,thequestionofexaminingtheallegedabusedoesnotarise.Notwithstandingthis,theoffersofOP-2donotappeartoraiseanycompetitionconcernatthisstage.Inviewoftheforegoingdiscussion,theCommissionisoftheconsideredviewthatnoprimafaciecaseofcontraventionofSection4(2)(a)(ii)oftheActismadeoutagainstOP-2.

The Informant has also made contradictory submissions of the impugnedfreeservicesofOP-2asbeinganoutcomeofleverageofdominantpositionbyOP-1aswellasanoutcomeofallegedanti-competitiveagreementbetweenOP-1andOP-2.TheCommissionnotesthatnoagreementofthenatureprohibitedunderSection3oftheActisdiscerniblefromthefactsandallegationslevelledbytheInformant.Asnotedearlier,theimpugnedconductofOP-2hasnotbeen found as prima facie contravening theprovisionsof theActprohibitingunfairpricingincludingpredatorypricing.Intheabsenceofanyfindingofanti-competitiveconductbyOP-2,OP-1cannotbeheldtobeincontraventionofSection4(2)(e)oftheActjustbecauseithasmadehugeinvestmentsinOP-2.Mereinvestmentscannotberegardedasleverageofdominantposition,particularlywhenOP-1itselfisnotengagedinbusinessofprovidingtelecomservicesoranyactivities incidental thereto. If one were to construe such investment asanti-competitive, thesamewoulddeterentryand/orexpansionandlimitthegrowthofmarkets.Inviewoftheabove,noprima facie caseofcontraventionofSection3(1)orSection4(2)(e)oftheActismadeoutagainsttheOppositeParties.

TheCommission,therefore,isoftheviewthatnoprima facie case of contraventionoftheprovisionsofSections3or4oftheActismadeoutagainsttheOppositeParties.Accordingly,thematterisorderedtobeclosedintermsoftheprovisionsofSection26(2)oftheAct.

General Laws

LW 51:07:2017DELHI METRO RAIL CORPORATION LTD. v. DELHI AIRPORT METRO EXPRESS PVT.LTD [DEL]

FAO (OS) (COMM) 128/2017

G.S.Sistani & Vinod Goel, JJ. [Decided on 07/06/2017]

Arbitration and conciliation Act, 1966- award in favour of respondent - single judge directs deposit of Rs.65 crores with the bank of Respondent to cover interest

charges- whether tenable- Held, Yes.

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Brief facts: Disputesarosebetweenthepartiesinrespectofthecontractrelatingtotheairportmetroline.TheArbitralTribunalhasrenderedanAwardin favourof therespondent in thesumofRs.4670crores includinginteresttill thedateoftheAward.TheappellantDMRC,movedtheHighcourtagainsttheaward.

Intheorderdated30.05.2017(hereinafterreferredtoas“theimpugnedorder”)thelearnedSingleJudgehasdirectedtherespondent/appellanthereintopayasumofRs.60croresdirectlytoAxisBankwhoisstatedtobetheleadlendingbanktothepetitioner(beforelearnedSingleJudgeandrespondentherein) toprotect therightsof theappellantherein,the respondent has been directed to furnish an unconditional bank guaranteetotheextentofRs.65croreswhichwouldcoverthefactorof interest at the rate of 12% per annum should the appellant herein succeed.TheappellantchallengedthisorderbeforetheDivisionBench.


Reason:Wehaveheardthelearnedcounselfortheparties.Wefindnoforcein the submission of learned counsel for the appellant that the present petitionunderSection9oftheActispremature.ThesubmissionofthepetitionersispremisedinthelanguageofSection36whichstipulatesthatonlyaftertheexpiryoftimeformakinganapplicationtosetasidethearbitralawardunderSection34hasexpired,theawardisdeemedto bea decreeof theCourt.According to the learned counsel fortheappellant,thereisnodecreeasondate.ThissubmissionisnotacceptableinviewoftheexpresslanguageofSection9itself.

From theaforegoing, it is clear that thepowervested in theCourtmaybeexercisedwhen theproceedings before theArbitrator areeither “contemplated”, “pending” or even “completed”. ThepresentcaseisoneunderthethirdcategoryandtheCourthasthepowertoorderinterimmeasuresafterthepassingoftheaward,butbeforeitsenforcementinaccordancewithSection36oftheAct.Hence,theCourtwasclearlyvestedwiththepowertograntinterimmeasurespriortotheawardbecomingadeemeddecreeunderSection36oftheAct.

We may notice that the order dated 30.05.2017 is only an interim order andalltheissuessoughttoberaisedbythepartieshavebeenkeptopentobeconsideredbythelearnedSingleJudgeonthenextdateofhearingasisevidentuponreadingoftheorderdated30.05.2017.

WefindnogroundstointerfereintheimpugnedorderpassedbythelearnedSingleJudge,firstly,forthereasonthatorderdated30.05.2017is an interim order by which the appellant herein has been directed to depositRs.60croresoutofanawardinfavouroftherespondentinthesumofRs.4670crores;secondly,fortheamounttobedeposited,therespondenthasbeendirectedtoprovidethebankguaranteeofRs.65croreswhichwouldcovertheinterestonRs.60crorestobedepositedbytheappellantherein;andthirdly,thisamountistobepaiddirectlytotheAxisBankkeepinginviewthelargesumsofinteresttobepaidbytherespondent(Rs.65lakhperday/Rs.20crorespermonth)andalsoforthereasonthatallthegroundssoughttobeurgedhavebeenkeptopentobedecidedbythelearnedSingleJudge.Accordingly,thepresent appeal as well as the application is dismissed.

LW 52:07:2017ESSAR PROJECTS (INDIA) LTD v. INDIAN OIL CORPORATION

LTD & ANR [DEL]

O.M.P. (I) (COMM) 232/2017

G.S. Sistani, J. [02/06/2017]

Arbitration and Conciliation Act, 1996- dispute between the parties- respondent was about to encash the bank guarantees given by petitioner- whether respondent could be restrained from encashing the guarantees-Held, No.

Brief facts:By the present petition under Section 9 of the Arbitration andConciliationAct,1996,thepetitionerinteraliapraysforrestrainingtherespondentsfromencashingbankguaranteesno.160004IBGA00036and16000IBGA00037dated28.03.2016.

Decision: Petition dismissed.

Reason: The only ground urged before thisCourt is that special equitiesexistinfavourofthepetitionerentitlingittoaninjunctionagainsttherespondentsonthegroundsthatextensionsoftimeweregrantedbytherespondentno.1,theamountduefromthepetitionerhasnotbeencomputedandthatonthecontrary,IOCowesabout900crorestothepetitioner therein.

The scope of interference by courts in the invocation of the bank guarantees is no longer res integra. It hasbeen repeatedly heldthat,especiallyincasesofunconditionalbankguarantees,thecourtshould not interfere unless the petitioner is able to establish fraud ofegregiousnatureorisabletopleadspecialequities.Ineednotburdenmyopinionwithnumerousjudicialpronouncements,sufficeit toreproducetherelevantparagraphsofajudgmentofthisveryCourtinCWHEC-HCIL(JV)v.CalcuttaHaldiaPortRoadCo.Ltd.&Ors.,ILR(2008)1Del353.

Thefirstquestionwhicharisesforconsiderationiswhetherthetwobankguaranteeswhichare identical innatureareunconditionalornot.Readingof the termsof thebankguarantee,moreparticularlytheclausesextractedinparagraph20aforegoing,leavenoroomfordoubtthatthepetitionerhadprovidedunconditionalbankguaranteesto the respondent no.1.

As regards, thesubmission that the respondentno.1hasactedasanarbiter in its own causeanddecided thequantumof damagesunilaterally, thequestion, inmy view, stands fully answered in thecaseofHindustanSteelworksConstructionLtd.v.Tarapore&Co.andAnother,(1996)5SCC34.Inthecase,theappellanthadgrantedacontractforconstructionofcivilworksinasteelplanttothecontractor,whichdespiteextensionswasunabletocompletetheprojectwithinthestipulatedtimeandtheappellantrescindedthecontract.Asperthetermsofthecontract,theappellantassessedtheloss/damagesandinvokedthebankguarantees.ThecontractorrushedbeforetheTrialCourtprayingforaninjunctionrestrainingtheappellantfrominvokingthebankguarantees to noavail and thenapproached theAndhraPradeshHighCourt alleging that since thebankguaranteesweregivenforsecuringdueperformance,thesamewouldbeencashableonly after the arbitrators decide the factum of breach as well as the damagesuffered.TheHighCourtreversedthedecisionoftheTrialCourtfindingthattheliabilitytopaydamageswouldariseonlyafterit is established that there is a breach of contract and same could be ascertainedbythearbitrator.ThisdidnotfindfavourwiththeApexCourt,whichallowedtheappealsbyobservingasunder:

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“Weare, therefore, of the opinion that the correct position oflaw is that commitment of banks must be honoured free from interferencebythecourtsanditisonlyinexceptionalcases,thatistosay,incaseoffraudorinacasewhereirretrievableinjusticewouldbedoneifbankguaranteeisallowedtobeencashed,thecourt should interfere. In this case fraud has not been pleaded and thereliefforinjunctionwassoughtbythecontractor/Respondent1onthegroundthatspecialequitiesorthespecialcircumstancesofthecaserequiredit.Thespecialcircumstancesand/orspecialequitieswhichhavebeenpleadedinthiscasearethatthereisaseriousdisputeonthequestionastowhohascommittedbreachofthecontract,thatthecontractorhasacounter-claimagainsttheappellant,thatthedisputesbetweenthepartieshavebeenreferred to the arbitrators and that no amount can be said to be due and payable by the contractor to the appellant till the arbitrators declaretheiraward.Inouropinion,thesefactorsarenotsufficienttomakethiscaseanexceptionalcasejustifyinginterferencebyrestrainingtheappellantfromenforcingthebankguarantees.TheHighCourtwas,therefore,notrightinrestrainingtheappellantfromenforcingthebankguarantees.”

Eventheothergroundsurgedbythelearnedseniorcounselforthepetitionerfailtoestablishacaseofspecialequities.Theattributionoftheguiltforthedelayandtheconsequentorotherclaimsofthepetitionercanbeadjudicatedbeforethearbitraltribunal.Further,therespondentno.1beinganinstrumentalityofthestate,thereisnodangerofthepetitionerbeingunabletorecoveranyamountsitclaimsshouldthesamebeawardedtoitinthearbitralproceedings.Imayalsonotethatsimilargroundspertainingtooutstandingbills,amountsandattributionofblamefordelayinexecutionofprojectwere raisedbefore thisCourt inCWHEC-HCIL (JV) andwererejected(paragraphs2-4,19,41and44).

Inthepresentcase,thepetitionerhasnotbeenabletoestablishanyspecialequities inclaimorcounterclaimonbehalfof thepetitioneragainstagroundtostaythebankguaranteewhichisanindependentdocument.Therefore,Ifindnogroundstostaytheinvocationofthetwobankguarantees.

LW 53:07:2017ANANTHESH BHAKTA v. NAYANA S. BHAKTA & ORS [(2017) 5 SCC 185]

Civil Appeal No.10837 of 2016 (arising out of SLP(C) No. 31179 of 2014)

R.K. Agrawal & Ashok Bhushan, JJ. [Decided on 15/11/2016]

Arbitration and Conciliation Act, 1966- disputes between partners- unregistered partnership – partnership deed as well as retirement deed provided for arbitration- whether arbitration proceedings could be refused on the ground that partnership is unregistered- Held, No.

Brief facts:Factsarecomplicatedandelaborate.Sufficetostatethatdisputesarosebetweenthepartnersofanunregisteredpartnershipfirmandasuitwasfiledtoresolvethedispute,inwhichthedefendantshavefiledanapplicationseekingtoreferthedisputetoarbitrationas the partnership deed as well as the retirement deed contained arbitration clause.


Reason:Afterconsideringthesubmissionsoflearnedcounselforthepartiesandperusingtherecords,thecourtframedthefollowingthreeissuesandansweredthemaccordingly.

(1)Whethernon-filingofeitheroriginalorcertifiedcopyofretirementdeedandpartnershipdeedalongwithapplicationI.A.No.IVdated09.05.2014 entailed dismissal of the application as per section 8(2) of1996Act.

Inthepresentcaseasnotedabove,theoriginalRetirementDeedandPartnershipDeedwerefiledbythedefendantson12thMayanditisonlyafterfilingoforiginaldeedsthatCourtproceededtodecidetheapplicationI.A.No.IV.Inthepresentcaseitisrelevantto note theRetirementDeed andPartnershipDeed have alsobeenreliedbytheplaintiffs.Hence,theargumentofplaintiffsthatdefendants’applicationI.A.No.IVwasnotaccompaniedbyoriginaldeeds,hence,liabletoberejected,cannotbeaccepted.Wearethus of the view that the appellants submission that the application ofdefendantsunderSection8was liable tobe rejected,cannotbe accepted.

(2)Whetherthefactthatallthepartiestothesuitbeingnotpartiestotheretirementdeed/partnershipdeed,theCourtwasnotentitledtomakethereferencerelyingonarbitrationagreement.

Theplaintiffsadmittedlyareparties to thearbitrationagreementas noted above. It does not lie in their mouth to contend that since one of the defendants whom they have impleaded was not party to the arbitration agreement, no reference canbemade to thearbitrator.Inthefactsofthepresentcase,itcannotbesaidthatmerelybecauseoneofthedefendantsi.e.defendantno.6wasnotpartytothearbitrationagreement,thedisputebetweenthepartieswhichessentiallyrelatestothebenefitsarisingoutofRetirementDeedandPartnershipdeedcannotbereferred.

LearnedDistrict Judge has noted that defendant no.6 has notinheritedanyshareeitherinPartnershipdeedorinthescheduleproperty andhence there is noquestionof bifurcationof eithercause of action or parties. We fully endorse the above view taken byLearnedDistrictJudge.

(3)Whetherdisputepertaining tounregisteredpartnershipdeedcannotbereferredtoanarbitrationdespitetherebeingarbitrationagreementinthedeedofretirement/partnershipdeed.

The submission by the petitioner is that partnership being anunregistered partnership, no reference can bemade to thearbitration. In the present case there is no dispute between the parties thatbothRetirementdeedandPartnershipdeedcontainanarbitrationclause.InRetirementdeedwhichhadbeensignedbyretiringpartners,continuingpartnersandconcurringpartners,followingwasstatedinclause8:

“...In case of any dispute or difference arising between theparties,regardingtheinterpretationofthecontentsofthisDeedofRetirementoranyothermatterortransactionstouchingthesaidretirement,itshallbereferredtoanarbitrationundertheprovisionsoftheArbitration&ConciliationAct,1996.”

Whenthepartnersandthosewhoclaimthroughpartnersagreedto

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to contend that partnership being unregistered partnership, thedispute cannot be referred.

The petitioners have not been able to show any statutory provision eitherin1996Actorinanyotherstatutefromwhichitcanbesaidthatdisputeconcerningunregisteredpartnershipdeedcannotbereferredtoarbitration.Wethusdonotfindanysubstance in thethird submission of the appellant.

In the result, we do not find anymerit in this appealwhich isaccordinglydismissed.

Tax Laws

LW 54:07:2017DIRECTOR OF INCOME TAX (IT) - I v. A.P. MOLLER MAERSK A S [(2017) 5 SCC 651]

Civil Appeal No. 8040 of 2015 with batch of appeals

A.K. Sikri & A.M.Sapre, JJ. [Decided on 17/02/2017]

Income tax Act,1961- section 9- foreign shipping company operating through agents in India- agents sharing the common net services of the foreign company- agents charged for using the net services- whether such charge is ‘technical

fee’ and liable to be taxed as such in India- Held, No.

Brief facts: Therespondentassesseeisaforeigncompanyengagedintheshipping business and is a tax resident ofDenmark. There isaDouble TaxationAvoidanceAgreement (hereinafter referredto as the ‘DTAA’) between India andDenmark.TheAssessingOfficer(AO)assessedtheincomeinthehandsoftheassesseeandallowedthebenefitofthesaidDTAA.However,whilemakingtheassessment,theAOobservedthattheassesseehadagentsworking for it, namely,Maersk Logistics India Limited (MLIL),Maersk IndiaPrivate Limited (MIPL), Safmarine IndiaPrivateLimited(SIPL)andMaerskInfotechServices(India)PrivateLimited(MISPL).Theseagentsbookedcargoandactedasclearingagentsfortheassessee.Inordertohelpallitsagents,acrosstheglobe,inthisbusiness,theassesseehadsetupandwasmaintainingaglobaltelecommunicationfacilitycalledMaerskNetSystemwhichisaverticallyintegratedcommunicationsystem.Theagentswerepayingforsaidsystemonpro-ratabasis.Accordingtotheassessee,itwasmerelyasystemofcostsharingandthepaymentsreceivedbytheassesseefromMIPL,MLIL,SIPLandMISPLwereinthenatureofreimbursementofexpenses.TheAOdidnotacceptthiscontentionandheldthattheamountspaidbythesethreeagentsto the assessee was consideration/fees for technical services

renderedbytheassessesand,accordingly,heldthemtobetaxableinIndiaunderArticle13(4)oftheDTAAandassessedtax@20%underSection115AoftheIncomeTaxAct,1961.

TheappealpreferredbytheassesseagainsttheAssessmentOrderbeforetheCommissionerofIncomeTax(Appeals)wasdismissed.Aggrieved by the order passed by theCIT (A), the assesseepreferredfurtherappealbeforetheIncomeTaxAppellateTribunal(ITAT),whichallowedtheappeal.AgainstthisRevenuepreferredanappealbeforetheHighcourtwhichalsodismissedtheappeal.Hencethepresentappeal.

Decision: Appeals dismissed.

Reason:It is clearly held that no technical services are provided by the assesseetotheagents.Oncetheseareaccepted,bynostretchofimagination,paymentsmadebytheagentscanbetreatedasfeefortechnical service. It is in the nature of reimbursement of cost whereby the three agents paid their proportionate share of the expensesincurredonthesesaidsystemsandformaintainingthosesystems.Itisre-emphasisedthatneithertheAOnortheCIT(A)hasstatedthattherewasanyprofitelementembedded in thepayments receivedby the assessee from its agents in India.Record shows that theassesseehadgiventhecalculationsofthetotalcostsandpro-ratadivisionthereofamongtheagentsforreimbursement.Notonlythat,theassesseehaveevensubmittedbeforetheTransferPricingOfficerthatthese payments were reimbursement in the hands of the assessee and thereimbursementwasacceptedassuchatarm’slength.Oncethecharacter of the payment is found to be in the nature of reimbursement oftheexpenses,itcannotbeincomechargeabletotax.

Pertinently,theRevenueitselfhasgiventhebenefitofIndo-DanishDTAAtotheassesseebyacceptingthatunderArticle9thereof,freightincomegeneratedbytheassesseeintheseAssessmentYears is not chargeable to tax as it arises from the operationofships in internationalwaters.Once that isacceptedand it isalsofoundthattheMaerskNetSystemisanintegralpartoftheshippingbusinessandthebusinesscannotbeconductedwithoutthe same,whichwasallowed to beusedby theagents of theassesseeaswellinordertoenablethemtodischargetheirrolemoreeffectivelyasagents,itisonlyafacilitythatwasallowedtobesharedbytheagents.Bynostretchof imaginationitcanbetreatedasanytechnicalservicesprovidedtotheagents.Insuchasituation,‘profit’fromoperationofshipsunderArticle19ofDTAAwouldnecessarilyincludeexpensesforearningthatincomeandcannotbeseparated,moreso,whenitisfoundthatthebusinesscannotberunwithouttheseexpenses.

ThisCourt inCommissionerof IncomeTax-4,Mumbaiv.KotakSecuritiesLtd,(2016)383ITR1(SC)hascategoricallyheldthatuseoffacilitydoesnotamounttotechnicalservices,astechnicalservicesdenoteservicescateringtothespecialneedsofthepersonusingthemandnotafacilityprovidedtoall.

WehavealreadymentionedinthebeginningtheissueraisedbytheRevenueitselfwhichshowsthattheonlycontentionraisedisastowhetherthepaymentinquestioncanbetreatedasfeefortechnicalservices.Havingheldthat issueagainsttheRevenue,nofurtherconsiderationisrequiredofanyotheraspectsintheseappeals.Theseappealsare,therefore,bereftofanymeritandareaccordinglydismissed.


n COMPANIES(AUDITANDAUDITORS)SECONDAMENDMENTRULES2017

n ExEMPTIONSTOSECTION8COMPANIESUNDERTHECOMPANIESACT,2013

n ExEMPTIONSTOPRIVATECOMPANIES

n ExEMPTIONSTOGOVERNMENTCOMPANIES

n CLARIFICATIONREGARDINGTRANSMISSIONOFSECURITIESBYOPERATIONOFLAW-REG.

n CLARIFICATIONREGARDINGDUEDATEOFTRANSFEROFSHARESTOIEPFAUTHORITY

n CLARIFICATIONTOENHANCEDSUPERVISIONCIRCULAR

n PARTICIPATIONOFCATEGORYIIIALTERNATIVEINVESTMENTFUNDS(AIFS)INTHECOMMODITYDERIVATIVESMARKET

n CONTINUOUSDISCLOSURESANDCOMPLIANCESBYISSUERSUNDERSEBI(ISSUEANDLISTINGOFDEBTSECURITIESBYMUNICIPALITIES)REGULATIONS,2015

n INTERESTANDDIVIDENDINFORMATIONREPORTINGINCASEOFCUSTODIALACCOUNTS-RULE114G(1)(E)OFTHEINCOMETAxRULES,1962

n NON-COMPLIANCEWITHCERTAINPROVISIONSOFSEBI(ISSUEOFCAPITALANDDISCLOSUREREQUIREMENTS)REGULATIONS,2009(“ICDRREGULATIONS”)

n RECORDINGOFNONDISPOSALUNDERTAKING(NDU)INTHEDEPOSITORYSYSTEM

n COMPREHENSIVEREVIEWOFMARGINTRADINGFACILITY

n OPTIONSONCOMMODITYFUTURES-PRODUCTDESIGNANDRISKMANAGEMENTFRAMEWORK

n COMPREHENSIVEGUIDELINESFORINVESTORPROTECTIONFUND,INVESTORSERVICEFUNDANDITSRELATEDMATTERSATNATIONALCOMMODITYDERIVATIVESExCHANGES

n ONLINEREGISTRATIONMECHANISMFORMUTUALFUNDS

n DISCLOSUREREQUIREMENTSFORISSUANCEANDLISTINGOFGREENDEBTSECURITIES

4Government

From the


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01 Companies (Audit and Auditors) Second Amendment Rules 2017

[IssuedbytheMinistryofCorporateAffairsvide[F.No.1/33/2013-CL-V(Vol.I)]dated22.06.2017.PublishedintheGazetteofIndia,Extraordinary,Part-II,Section(3)Sub-section(i)videGSR621(E)dated22.06.2017]

Inexerciseofthepowersconferredbysection139readwithsub-sections(1)and(2)ofsection469oftheCompaniesAct,2013(18of2013),theCentralGovernmentherebymakesthefollowingrulesfurthertoamendtheCompanies(AuditandAuditors)Rules,2014,namely:—

1. Short title and commencement.- (1) These rules may be called the Companies (Audit and Auditors) SecondAmendmentRules,2017.

(2) They shall come into force on the date of their publication intheOfficialGazette.

2. IntheCompanies(AuditandAuditors)Rules,2014,inrule5,inclause(b),fortheword“twenty”,theword“fifty”shallbesubstituted.

AMARDEEPSINGHBHATIAJointSecretary

02 Exemptions to Section 8 Companies under the Companies Act, 2013

[IssuedbytheMinistryofCorporateAffairsvide[F.No.1/2/2014-CL-I) dated 13.06.2017. Published in theGazette of India,Extraordinary,Part-II,Section(3)Sub-section(i)videGSR584(E)dated13.06.2017]

1. Inexerciseofthepowersconferredbyclauses(a)and(b)ofsub-section(1)ofsection462andinpursuanceofsub-section(2)ofsection462readwithsection8oftheCompaniesAct,2013(18of2013)(hereinafterreferredtoasthesaidAct),theCentralGovernment,intheinterestofpublic,herebyamendsthenotificationoftheGovernmentofIndia,intheMinistryofCorporateAffairs,videnumberG.S.R.466(E)datedthe5thJune,2015publishedintheGazetteofIndia,Extraordinary,Part-II,Section3,Sub-section(i),datedthe5thJune2015(hereinafterreferredtoastheprincipalnotification),namely:-

2. Intheprincipalnotification,intheTable,forserialnumber8andtheentriesrelatingthereto,thefollowingserialnumberandtheentriesrelatingtheretoshallbesubstituted,namely:

- (1) (2) (3)“8 Clause (b) and

firstprovisotosub-section (1) of section 149.

Shallnotapply.”

3. Intheprincipalnotification,intheTable,afterserialNo.19,

thefollowingserialnumberandtheentriesrelatingtheretoshallbeinserted,namely:-

(1) (2) (3)“19A. Sub-section (7)

ofsection186.Insub-section(7),thefollowingprovisoshallbeinserted,namely:-

Providedthatnothingcontainedinthissub-section shall apply to a company inwhichtwenty-sixpercent.ormoreof the paid-up share capital is held by theCentralGovernmentoroneormoreStateGovernmentsorboth,inrespectof loans provided by such company for funding Industrial Research andDevelopmentprojectsinfurtheranceofitsobjectsasstatedinitsmemorandumofassociation.”.

4. Intheprincipalnotification,afterparagraph2,thefollowingparagraphshallbeinserted,namely:-

“2A.Theexceptions,modificationsandadaptationsprovidedin column (3) of the aforesaid Table shall be applicable to a companycoveredundersection8ofthesaidActwhichhasnotcommittedadefaultinfilingitsfinancialstatementsundersection137orannualreturnundersection92ofthesaidActwiththeRegistrar.”.


03 Exemptions to Private Companies

[IssuedbytheMinistryofCorporateAffairsvide[F.No.1/1/2014-CL-V]) dated 13.06.2017. Published in theGazette of India,Extraordinary,Part-II,Section(3)Sub-section(i)videGSR583(E)dated13.06.2017]

1. Inexerciseofthepowersconferredbyclauses(a)and(b)ofsub-section(1)ofsection462and inpursuanceofsub-section(2)ofsection462of theCompaniesAct,2013(18of2013)(hereinafterreferredtoasthesaidAct),theCentralGovernment, in the interest of public, hereby amends thenotification of theGovernment of India, in theMinistry ofCorporateAffairs,videnumberG.S.R.464(E)datedthe5thJune,2015publishedintheGazetteofIndia,Extraordinary,Part-II,Section3,Sub-section(i),datedthe5thJune2015(hereinafterreferredtoastheprincipalnotification),namely:-

2. Intheprincipalnotification, intheTable, theexistingserialnumber 1 and the entries relating thereto shall be re-numberedasserialnumber1-A,andbeforetheserialnumber

CorporateLaws

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1Aassore-numberedandtheentriesrelatingthereto,thefollowingserialnumberandtheentriesrelatingtheretoshallbeinserted,namely:-

(1) (2) (3)“1. ChapterI,clause

(40) of section 2.Fortheproviso,thefollowingshallbesubstituted,namely:-Providedthatthefinancialstatement,withrespecttoonepersoncompany,small company, dormant companyand private company (if such private company is a start-up) may not include thecashflowstatement;Explanation. - For the purposesof this Act, the term, start-up orstart-up company means a private company incorporated under the Companies Act, 2013 (18 of 2013)or the Companies Act, 1956 (1 of1956) and recognisedas start-up inaccordancewiththenotificationissuedbytheDepartmentofIndustrialPolicyandPromotion,MinistryofCommerceandIndustry.”.

3. Intheprincipalnotification,intheTable,forserialnumber6andtheentriesrelatingthereto,thefollowingserialnumberandtheentriesrelatingtheretoshallbesubstituted,namely:-

(1) (2) (3)

“6.ChapterV,clauses (a) to (e) of sub-section (2) of section 73.

Shall not apply to a private company-(A)whichaccepts from itsmembers

monies not exceeding onehundred per cent. of aggregateofthepaidupsharecapital,freereserves and securities premium account;or

(B)whichisastart-up,forfiveyearsfromthedateofitsincorporation;or

(C)which fulfils all of the followingconditions,namely:-(a) which is not an associate or

a subsidiary company of any othercompany;

(b) if the borrowings of sucha company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees,whicheverislower;and

(c) such a company has not defaulted in the repayment of suchborrowingssubsistingatthetimeofacceptingdepositsunder this section:

Provided that the company referredto inclauses(A),(B)or(C)shallfilethe details of monies accepted to the Registrarinsuchmannerasmaybespecified.”.

4. Intheprincipalnotification,inthetable,afterserialnumber6andtheentriesrelatingthereto,thefollowingserialnumbersandtheentriesshallbeinserted,namely:-

(1) (2) (3)

“6A. Chapter VII ,c l ause (g ) o fsub-section (1) of section 92

Shall apply to private companies which aresmallcompanies,namely:-

“(g) aggregate amount of remuneration drawn by directors;”

6B. Chap te r V I I ,proviso to sub-sect ion (1) o f section 92

Fortheproviso,thefollowingprovisoshallbesubstituted,namely:-

ProvidedthatinrelationtoOnePersonCompany,smallcompanyandprivatecompany (if such private company is astart-up),theannualreturnshallbesignedbythecompanysecretary,orwhere there is no company secretary, by the director of the company.”.

5. Intheprincipalnotification,afterserialnumber9,thefollowingserialnumberandtheentriesrelatingtheretoshallbeinserted,namely:-

(1) (2) (3)“9A. Chapterx,clause

(i) of sub-section (3) of section 143.

Shall not apply to a private company:-

(i) which is a one person company or asmallcompany;or(ii) which has turnover less than rupees fifty crores as per latestauditedfinancialstatementorwhichhasaggregateborrowingsfrombanksor financial institutions or any bodycorporateatanypointoftimeduringthe financial year less than rupeestwentyfivecrore.

6. In the principal notification, after serial number 11, thefollowingserialnumbersandtheentriesrelatingtheretoshallbeinserted,namely:-

(1) (2) (3)“11A. ChapterxII,

sub-section (5) of section 173

Forsub-section (5), the followingsub-sectionshallbesubstituted,namely:-(5) A One Person Company, smallcompany, dormant company anda private company (if such private company is a start-up) shall be deemed to have complied with the provisions of thissectionifatleastonemeetingoftheBoardofDirectorshasbeenconductedin each half of a calendar year and the gapbetweenthetwomeetingsisnotlessthan ninety days:Providedthatnothingcontainedinthissub-section and in section 174 shall applytoOnePersonCompanyinwhichthere is only one director on its Board ofDirectors.

11B. ChapterxII,sub-section (3) of section 174.

Shallapplywith theexceptionthat theinterested director may also be counted towardsquorum insuchmeetingafterdisclosure of his interest pursuant to section184.”.


“2A. The exceptions, modifications and adaptations provided in column (3) of the aforesaid Table shall be applicable to a private company which has not committed a default in filing its financial statements under section 137 of the said Act or annual return under section 92 of the said Act with the

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Registrar.”.AMARDEEPSINGHBHATIA

JointSecretary

04 Exemptions to Government Companies

[IssuedbytheMinistryofCorporateAffairsvide[F.No.1/2/2014-CL-V] dated 13.06.2017. Published in theGazette of India,Extraordinary,Part-II,Section(3)Sub-section(i)VideGSR582(E)dated13.06.2017]

1. Inexerciseofthepowersconferredbyclauses(a)and(b)ofsub-section(1)ofsection462and inpursuanceofsub-section(2)ofsection462of theCompaniesAct,2013(18of2013)(hereinafterreferredtoasthesaidAct),theCentralGovernment, in the interest of public, hereby amends thenotification of theGovernment of India, in theMinistry ofCorporateAffairs,videnumberG.S.R.463(E)datedthe5thJune,2015publishedintheGazetteofIndia,Extraordinary,Part-II,Section3,Sub-section(i),datedthe5thJune2015(hereinafterreferredtoastheprincipalnotification),namely:-


(1) (2) (3)“5. ChapterVII,sub-

sect ion (2) o f section96.

Insub-section(2),forthewords“suchother place as the CentralGovernment may approve in thisbehalf”,thewords“suchotherplacewithinthecity,townorvillageinwhichtheregisteredofficeofthecompany is situate or such other place astheCentralGovernmentmayapprove in this behalf” shall besubstituted.”.


“15. ChapterxI,sub-sections(6)and(7)ofsection 152.

Shallnotapplyto–(a) aGovernment company, whichisnotalistedcompany,inwhichnotlessthanfifty-onepercent.ofpaidupshare capital is held by the CentralGovernment , or by any StateGovernmentorGovernmentsorbytheCentralGovernmentandoneormoreStateGovernments;(b) a subsidiary of a Governmentcompany,referredtoin(a)above.”.

4. Intheprincipalnotification,intheTable,afterserialnumber29,thefollowingserialnumberandtheentriesrelatingtheretoshallbeinserted,namely:-“29A. ChapterxV,

sections 230to 232.

Fortheword“Tribunal”,whereveritoccurs,thewords“CentralGovernment”shallbesubstituted.”.


“2A.Theexceptions,modificationsandadaptationsprovidedin column (3) of the aforesaid Table shall be applicable to a Governmentcompanywhichhasnotcommittedadefaultinfiling itsfinancialstatementsundersection137of thesaidActorannualreturnundersection92ofthesaidActwiththeRegistrar.”.


05 Clarification regarding transmission of Securities by Operation of Law - Reg.

[IssuedbytheMinistryofCorporateAffairsvideGeneralCircularNo.07/2017dated05.06.2017]

1. Clarity has been sought by stakeholdersw.r.t. issueof duplicate shares under Rule 6 (3)(d) of the InvestorEducationandProtectionFundAuthority(Accounting,Audit,TransferandRefund)Rules,2016.IthasbeenstatedthatsincetransferofsharestoIEPFundersection124(6)oftheCompaniesAct,2013readwithrulesreferredtoabovetakesplace on account of operation of law hence the procedure followedduringtransmissionofsharesmaybefollowedinsuch cases and duplicate shares need not be issued in such cases.ThesuggestionmadebythestakeholdershasbeenexaminedintheMinistryanditisclarifiedthattheproceduresimilar to what is followed in case of transmission of shares maybefollowedbycompanieswhiletransferringsharesto IEPFAuthority pursuant to section 124 (6) readwithapplicable rules.

2. ThisissueswiththeapprovaloftheCompetentAuthority.

MOINKAGUPTADeputyDirector

06 Clarification regarding due date of transfer of shares to IEPF Authority

[IssuedbytheMinistryofCorporateAffairsvideGeneralCircularNo.06/2017dated29.05.2017]

1. PursuanttosecondprovisotoRule6ofInvestorEducationandProtectionFundAuthority(Accounting,Audit,TransferandRefund)AmendmentRules,2017notifiedonFebruary28,2017,wherethesevenyearperiodprovidedundersub-section(5)ofsection124iscompletedduringSeptember7,2016toMay31,2017,theduedatefortransferofsuchsharesbycompaniesisMay31,2017.

2. The modalities for transfer/ transmittal of shares from companies accounts to the demat account of the IEPFAuthority are being finalizedwith the depositories. IEPFAuthorityisconsideringtoopenspecialDemataccountandtillopeningofdemataccounts,theduedatefortransferofsharesstandsextended.Inviewofthis,arevisedduedatefortransfer/transmittalofsharesshallbenotifiedsoon.

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3. Companies,areadvisedtocompleteall formalities,aslaiddownintheaforesaidRuleswithoutwaitingforthefreshdates.Companies which have already published notice in newspaper andsendnoticestotheshareholders,neednotgivethefreshnoticesagainduetothisextension.

4.ThisissueswiththeapprovalofCompetentAuthority.

MONIKAGUPTADeputyDirector

07 Clarification to Enhanced Supervision Circular

[Issued by theSecurities AndExchangeBoard of India videCircular [F.No.CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64]dated22.06.2017.]

1. SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, has issuedguidelines coveringbroadareas for enhanced supervisionbased on the recommendation of the committee constituted bySEBI.FollowingrepresentationsfromExchangesaswellasmarket participants, SEBI videCircular noSEBI/HO/MIRSD/MIRSD2/CIR/P/2016/138datedDecember20,2016madetheaforesaidCirculareffectivefromApril1,2017andaccordinglythevarioustimelinesmentionedinthecircularfordifferentactivitieswasconsequentlypostponed.

2. SEBIhasreceivedfurtherrepresentationsfromthemarketparticipants regarding certain provisions of the aforesaidcircular.Basedonthediscussionswithdifferentstakeholders,followingclarificationsaremade:a. Clause 1.2.2 and 1.2.4 stands deleted; accordingly

namingproprietary bank/demat accounts of the stockbrokeras‘StockBroker-ProprietaryAccount’isvoluntary.Itishoweverclarifiedthatbank/demataccountwhichdonotfallundertheClauses1.2.1,1.2.3,1.2.5,1.2.6and1.2.7 would be deemed to be proprietary.

b. AfterClause 2.1,Clause 2.1.1 is inserted as, “StockBrokerwhichisalsoBank,mayberequiredtoreporttotheStockExchangesonlythosebankaccountsthatareusedfortheirstockbrokingactivities”.

c. Clause2.5standmodifiedas follows: “Asperexistingnorms,astockbrokerisentitledtohavealienonclient’ssecurities to the extent of the client’s indebtednessto the stock broker and the stock brokermaypledgethosesecurities.Pledgeofsuchsecuritiesispermitted,onlyif,thesameisdonethroughDepositorysystemincompliancewithRegulation58oftheSEBI(DepositoriesandParticipants)Regulations,1996.Tostrengthen theexistingmechanism,thestockbrokersshallensurethefollowing:”

d. Clause2.6standsmodifiedas,“Stockbrokersshallnotgrantfurtherexposuretotheclientswhendebitbalancesariseoutofclient’s failure topay the requiredamountand such debit balances continues beyond the fifth tradingday,asreckonedfromdateofpay-in,except,in

accordancewiththemargintradingfacilityprovidedvideSEBIcircularCIR/MRD/DP/54/2017datedJune13,2017orasmaybeissuedfromtimetotime.”ThisclausewouldbeeffectivefromAugust1,2017.

e. Clause3.2standsclarifiedthat,StockbrokershalluploadthedataasenvisagedintheClause3.2onmonthlybasisinsteadofweeklybasistillMarch31,2018.Accordingly,tillMarch31,2018,stockbrokershallsubmit thedataasonthelasttradingdayofeverymonthtotheStockExchangesonorbeforethenexttradingday.Thereafter,theuploadingofthatdatabythestockbrokertotheStockExchangesshallbeonweeklybasisi.e.stockbrokersshallsubmitthedataasonlasttradingdayofeveryweekonorbeforethenexttradingday.

f. Further, it is also clarified that the provisions of thisenhanced supervision circular is not applicable to RegionalCommodityExchangestillfurthernotice.

3. Youareadvisedtotakenecessarystepstoensurecompliancewith the above.

4. TheStockExchanges/Depositoriesaredirectedtobringthecontents of this circular to the notice of the Stock Brokers/DepositoryParticipantsandalsodisseminate thesameontheir websites.

5. ThiscircularisissuedinexerciseofpowersconferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct,1992toprotecttheinterestsofinvestorsinsecuritiesandtopromotethedevelopmentof,andtoregulatethesecuritiesmarkets.

6. ThisCircularisavailableonSEBIwebsiteatwww.sebi.gov.inunderthecategories“LegalFramework”.

DEBASHISBANDYOPADHYAY GeneralManager

08 Participation of Category III Alternative Investment Funds (AIFs) in the commodity derivatives market

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircular[SEBI/HO/CDMRD/DMP/CIR/P/2017/61]dated21.06.2017.]

1. Atpresent,institutionalparticipantsarenotallowedtoparticipatein thecommodityderivativesmarket in India.Consequentlythe commodity derivatives markets in India lack the desired liquidityanddepthforefficientpricediscoveryandpriceriskmanagement.Inthepast,variouscommitteesincludingthoseconstitutedby theGovernmentof Indiahaverecommendedparticipation of institutional investors in the commodity derivativesmarkets,forimprovingthequalityofpricediscovery,therebyleadingtobetterpriceriskmanagement.

2. TakingcognizanceofthefactthatparticipationbyInstitutionalinvestors would be conducive for the overall development of thecommodityderivativesmarket,SEBIhasheldconsultationswith variousstakeholdersof thismarket.Further, basedontherecommendationsoftheCommodityDerivativesAdvisoryCommittee (CDAC)and feedback received from themarketparticipantsduringtheconsultativeprocess,itisnowdecided

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toallowtheCategory-IIIAlternativeInvestmentFunds(AIFs)toparticipateinthecommodityderivativesmarket,subjecttothefollowingconditions:

2.1.Category III AIFsmay participate in all commodityderivatives products that are being traded on thecommodity derivatives exchangesas ‘clients’ and shallbesubjectedtoalltherules,regulationsandinstructions,positionlimitnormsasmaybeapplicabletoclients,issuedbySEBIandExchangesfromtimetotime.

2.2.CategoryIIIAIFsshallinvestnotmorethantenpercentoftheinvestablefundsinoneunderlyingcommodity.

2.3.CategoryIIIAIFsmayengageinleverageorborrowsubjecttoconsentfromtheinvestorsinthefundandsubjecttoamaximumlimit,asspecifiedbytheBoardfromtimetotime.

2.4.Category III AIFs shall make disclosure in privateplacement memorandum issued to the investors about investmentincommodityderivatives.Consentofexistinginvestor(s)shallbetakenbyAIFsiftheyintendtoinvestincommodityderivativesandexitopportunityshouldbeprovidedtodissentinginvestor(s).

2.5.Ifapplicable,AIFshallalsocomplywithRBInotificationNo.FEMA.355/2015-RBdatedNovember16,2015andall other guidelines issued by theRBI under ForeignExchangeManagementAct,1999fromtimetotime.

2.6.Category III AIF shall be subject to the reportingrequirementsasmaybespecifiedbySEBI.

2.7.The participation ofCategory III AIF in the commodityderivativesmarketshallbesubjecttothecomplianceofthe provisions ofSEBI (Alternative Investment Funds)Regulations,2012andcircularsissuedthereunder.

3. The provisions of this circular shall come into effect from the date of the circular.

4. ThiscircularisissuedinexerciseofthepowersconferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct1992toprotecttheinterestsofinvestorsinsecuritiesandtopromotethedevelopmentof,andtoregulatethesecuritiesmarket.

5. TheExchangesareadvisedto:i. makenecessaryamendmentsto therelevantbye-laws,

rulesandregulations.ii. bringtheprovisionsofthiscirculartothenoticeofthestock

brokersoftheExchangeandalsotodisseminatethesameon their website.

iii. communicatetoSEBI,thestatusoftheimplementationofthe provisions of this circular.

6 ThiscircularisavailableonSEBIwebsiteatwww.sebi.gov.inunderthecategory“Circulars”,“InfoforCommodityDerivatives”and“InfoforAlternativeInvestmentFunds(AIFs)”.

VIKASSUKHWAL DeputyGeneralManage

09 Continuous disclosures and compliances by issuers under SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015

[Issued by theSecurities AndExchangeBoard of India videCircular[F.No.CIR/IMD/DF1/60/2017]dated19.06.2017.]

1. Regulation23oftheSEBI(IssueandListingofDebtSecuritiesbyMunicipalities)Regulations,2015(SEBIILDMRegulations)prescribedisclosurestobemadebyissuersmakingpublicissuesofdebtsecuritiesorseekinglistingofdebtsecuritiesissuedonprivateplacementbasistotheStockExchange(s).The said disclosures, inter-alia, include disclosures forfinancialaswellasnon-financialinformation.

2. Accordinglyithasbeendecidedtospecifyasunder:2.1. Disclosure of financial information: While disclosing its financial information to theStock

Exchanges,anissuerofdebtsecuritiesunderSEBIILDMRegulationsshallcomplywiththefollowing:

2.1.1.Frequency and time period for disclosures:(a) The issuer shall prepare and submit un-

auditedfinancialresultsonahalfyearlybasistothestockexchangeanddebenturetrustee,whereverapplicable, as soonas the same isavailable but not later than three months from the end of the half year.

(b) The issuer shall prepare and submit the annual auditedfinancialresultswiththestockexchangeand debenture trustee,wherever applicable,as soon as the same is available but not later thansixmonths from theendof thefinancialyear. The audited financial results shall be accompanied by the annual report of the issuer.

2.1.2. Comparative information:(a) Theannualfinancial informationshall contain

comparative information for the immediately precedingfinancialyear.

(b) The comparative information would consist of correspondingamounts (comparative figures)for all the items shown in the key financial statements (as specified in Paragraph 2.1.3below),includingnotes.

2.1.3. Key Financial statements: Thekeyfinancialstatementsshall includethe

following:(a) BalanceSheet;(b) IncomeandExpenditureStatement;(c) Statement of Cash flows (a summary of an

enterprise’s cash flowover a givenperiod oftime);

(d) Receipts andPaymentsAccount (detailedaspertheaccountheads);

(e) NotestoAccounts;and(f) FinancialPerformanceIndicators.

2.1.4. Annual report: Theannualreportshallincludethefollowing:

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(a) KeyFinancialstatements;(b) ReportoftheAuditor;(c) Municipalcommissioner’sReportontheAnnual

FinancialStatementsandthequalificationsandcommentsmade in theReportof theAuditor;and

(d) StandingCommittee’s Action TakenReporton the qualifications and commentsmade intheReportoftheAuditorandtheReportoftheMunicipalcommissioner.

2.1.5.Approval and authentication of financial information:

Before submission of the financial information to theStockExchanges,thefinancialinformationshallbetakenon recordbyStandingCommitteeorGeneralBodyorBoardofDirectorsorBoardofTrustee,asapplicableorequivalent.2.1.6. Audit of Financial Information:

Theannualfinancialinformationshallbeaudited,bytheauditorappointedbythe issuerasper theSEBI ILDMRegulations.

2.2. Other Continuous Disclosures to Stock Exchange(s) and Other Compliances:2.2.1. Listing Agreement:

(a) Anissuershallenterintoasimplifiedlistingagreement,withall theStockExchangeswhere itproposes to listdebts securities in line with the format as specified under the SEBI Circular No. CIR/CFD/CMD/6/2015 dated October 13, 2015 on ‘Format of uniform Listing Agreement’.

(b) However,withrespecttothecompliancewiththelistingconditions,an issuer shall follow theSEBI (IssueandListingofDebtSecuritiesbyMunicipalities)Regulations,2015 and circulars issued therein.

2.2.2. Intimation to/ Approval from Stock Exchange(s):(a) Intention to raise funds: The issuer shall intimate the stock exchange(s), its

intention to raise funds through debt securities or itproposestolisteitherthroughapublicissueoronprivateplacement basis, prior to issuanceof such securities:Providedthattheaboveintimationmaybegivenpriortothemeetingof theStandingCommittee/GeneralBodywherein theproposal to raise funds throughnewdebtsecurities shall be considered.

(b) Disclosure of Material and Price sensitive information: Theissuershallfirstdisclosetostockexchange(s)ofalleventsorinformationhavingbearingontheperformance/operationofthelistedentity,materialorpricesensitiveinformation or any action that shall affect payment of interest or redemption of debt securities issued under SEBIILDMRegulationsassoonasreasonablypossibleand not later than twenty four hours from the occurrence of event or information. The disclosures shall be made aspertheformatspecifiedinAnnexure I.

(c) Timely payment of interests or principal obligations or both:

Theissuershallsubmitacertificatetothestockexchangewithin fiveworkingdaysof the interest or principal orbothbecomingduethatithasmadetimelypaymentof

interestsorprincipalobligationsorbothinrespectofthedebtsecuritiesissuedunderSEBIILDMRegulations.

(d) Approval from the stock exchange(s) for any material modification:

The issuer shall notmakematerialmodification suchasthestructureofthedebtsecurityintermsofcoupon,redemption,orotherwise,withoutpriorapprovalofthestockexchange(s)wherethedebtsecuritiesissuedunderSEBIILDMRegulationsarelisted,to:

Providedthatanapplicationforapprovalfromthestockexchange(s) shall bemadeonly after approval of thedesignatedcommittee/competentauthoritiesandwiththeapprovaloftheconsentofrequisitemajorityofholdersofthat class of securities.

(e) Record Date: Theissuershallfixarecorddateforpurposesofpayment

of interest to the holder of debts securities and payment of redemption or repayment amount or for such other purposesasspecifiedbythestockexchange.Theissuershallalsogivenoticeinadvanceofatleastsevenworkingdays(excludingthedateofintimationandtherecorddate)totherecognizedstockexchange(s)oftherecorddateorofasmanydaysasthestockexchange(s)mayagreetoorrequirespecifyingthepurposeoftherecorddate.

2.3. Other conditions:2.3.1. Documents and information to holders of debt

securities: Thelistedentityshallsendthefollowingdocuments

and information to holders of debt securities issued underSEBIILDMRegulations:

(a) Soft copies of full annual reports to all the holders of thedebtsecuritieswhohaveregisteredtheiremailaddress(es)forthepurpose;

(b) Hardcopiesoffullannualreportstothoseholdersofdebtsecurities,whorequestforthesame.

2.3.2. Credit Rating: Everycreditrating,whereverrequiredtobeobtained

byanissuerasperRegulation5(2)(c)and15(1)(g)of theSEBI ILDMRegulations, shall be reviewedatleastonceayear,bytheregisteredcreditratingagency.

2.3.3. Grievance Redressal Mechanism:(a) An issuer of debt securities under SEBI ILDM

Regulations shall ensure that adequate stepsare taken for expeditious redressal of investorcomplaints.

(b) An issuer of debt securities under SEBI ILDMRegulationsshallensurethatitisregisteredontheSCORESplatformorsuchotherelectronicplatformor system of the Board as shall be mandated from timetotime,inordertohandleinvestorcomplaintselectronicallyinthemannerspecifiedbytheBoard.

(c) An issuer of debt securities under SEBI ILDMRegulations shall file with the recognized stockexchange(s),whereitssecuritiesarelisted,onhalfyearlybasis,withinthirtyworkingdaysfromtheendofeachhalfyearastatementgiving the followingdetails: l Numberof investorcomplaintspendingatthe

beginningofthehalfyear

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l Numberofinvestorcomplaintsreceivedduringthe half year

l Number of investor complaints disposed ofduringthehalfyear

l Numberof investorcomplaintspendingattheend of the half year

(d) ThestandingCommitteeorGeneralBodyorBoardof Directors or Board of Trustee, as applicableshallreviewtheaforementionedstatement,beforesubmissionofthesametotheStockExchange(s),and shall ensure that all investor complaints are redressed by the issuer in timely manner.

(e) Periodicdisclosurestobemadeonhalfyearlybasisin terms of para 2 of ScheduleV of SEBI ILDMRegulations shall be submittedwithin 30workingdays from the end of the half year.

2.4. Appointment of compliance officer: Anissuershallappointacomplianceofficerwhoshallbe

responsible for:i. ensuringconformitywith the regulatoryprovisions

applicable to the issuer in letter and spirit.ii. co-ordination with and reporting to the Board,

recognizedstockexchange(s)anddepositorieswithrespect to compliancewith rules, regulations andother directives of these authorities in manner as specifiedfromtimetotime.

iii. ensuring that the correct procedures have beenfollowed that would result in the correctness,authenticity and comprehensiveness of the information, statements and reports filed by theissuerundertheseregulations.

iv. monitoring email of grievance redressal divisionas designated by the issuer for the purpose ofregisteringcomplaintsbyinvestors.

3. TheissuerwhohaslisteditsdebtsecuritiesundertheSEBIILDM regulations shall forward to thestockexchangeanyotherinformationinthemannerandformatasspecifiedbythe Board from time to time.

4. The provisions of this circular shall be applicable with immediate effectforthedebtsecuritiesissuedinaccordancewithSEBI(Issue and Listing of Debt Securities byMunicipalities)Regulations,2015.

5. ThisCircularisissuedinexerciseofpowersconferredunderSection11(1)ofSecuritiesandExchangeBoardofIndiaAct,1992readwithRegulation29ofSEBI(IssueandListingofDebtSecuritiesbyMunicipalities)Regulations,2015.

6. ThisCircularisavailableonSEBIwebsiteatwww.sebi.gov.inunderthecategories“LegalFramework”andunderthedropdown“Circulars”.

RICHAG.AGARWAL DeputyGeneralManager

Annexure I

The issuer shall inform to the stock exchange(s) in terms ofprovisionsofPara2.2.2(b)ofthiscircularofallinformationwhichshallhavebearingonperformance/operationofthelistedentityor is price sensitive or shall affect payment of interest or of debt

securitiesissuedunderSEBIILDMRegulationsorredemptionofdebtsecuritiesincluding:(1) expecteddefaultintimelypaymentofinterests/orredemption

or repayment amount or both in respect of the debt securities issued underSEBI ILDMRegulations and also default increation of security for debentures as soon as the same becomesapparent;

(2) any attachment or prohibitory orders restraining the listedentity from transferring debt securities issuedunderSEBIILDMRegulationsfromtheaccountoftheregisteredholdersalong-with the particulars of the numbers of securities soaffected,thenamesoftheregisteredholdersandtheirdemataccountdetails;

(3) anyactionwhichshallresultintheredemption,cancellation,retirement in whole or in part of any debt securities issued underSEBIILDMRegulations;

(4) any action that shall affect adversely payment of interest on debtsecuritiesissuedunderSEBIILDMRegulationsincludingdefault by issuer to pay interest or redemption amount and failuretocreateachargeontheassets;

(5) anychangeintheformornatureofanyofitsdebtsecuritiesissuedunderSEBIILDMRegulationsthatarelistedonthestockexchange(s)orintherightsorprivilegesoftheholdersthereofandmakeanapplicationforlistingofthesecuritiesaschanged,ifthestockexchange(s)sorequire;

(6) anychangesinthegeneralcharacterornatureofbusiness/activities,disruptionofoperationdue tonatural calamity,and commencement of commercial production / commercial operations;

(7) any events such as strikes and lock outs which have a bearingontheinterestpayment/dividendpayment/principalrepaymentcapacity;

(8) detailsofanyletterorcommentsmadebydebenturetrustees,wherever applicable regarding payment/non-payment ofinterestonduedates,payment/non-paymentofprincipalontheduedatesoranyothermatterconcerningthesecurity,listed entity and /or the assets alongwith its commentsthereon,ifany;

(9) delay/ default in payment of interest or / principal amount /redemption for a period of more than three months from the duedate;

(10)failure tocreatechargeon theassetswithin thestipulatedtimeperiod;

(11) any instance(s) of default/delay in timely repayment of interests or principal obligations or both in respect of thedebt securities including, anyproposal for reschedulingorpostponementof the repaymentprogrammesof thedues/debts of the listed entity with any investor(s)/lender(s).Explanation.-Forthispurpose,thetermdefaultmeanswhereinterest and/ or principal amount has remained overdue for a


period of more than ninety days.(12)anymajorchangeincompositionofitsStandingCommittee

orGeneralBodyorBoardofDirectorsorBoardofTrustee,asapplicable.,whichmayamount tochange incontrolasdefinedinSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(13)anyrevisionintherating;

(14)thefollowingapprovalsbyStandingCommitteeorGeneralBodyorBoardofDirectorsorBoardofTrustee,asapplicable.intheirmeeting:-(a) thedecisiontopassanyinterestpayment;(b) short particulars of any increase of capital whether by

issueofbonussecuritiesthroughcapitalization,orbywayofrightsecuritiestobeofferedtothedebentureholders,orinanyotherway;

(15)all the information, report, notices, call letters, circulars,proceedings, etc concerning debt securities issued underSEBIILDMRegulations;

(16)anyotherchangethatshallaffecttherightsandobligationsof the holders debt securities issued under SEBI ILDMRegulations,anyotherinformationnotinthepublicdomainnecessary to enable the holders of the listed securities to clarify its position and to avoid the creation of a false market in suchlistedsecuritiesoranyotherinformationhavingbearingon the operation/performance of the listed entity as well as price sensitive information.

10 Interest and Dividend information reporting in case of Custodial Accounts-Rule 114G(1)(e) of the Income Tax Rules, 1962

[Issued by theSecurities AndExchangeBoard of India videCircular [F.No.CIR/HO/MIRSD/MIRSD2/CIR/P/2017/59]dated15.06.2017.]

1. ThishasreferencetoSEBICircularNo.CIR/MIRSD/2/2015datedAugust26,2015onimplementationoftheMultilateralCompetentAuthorityAgreementandForeignAccountTaxComplianceAct.

2. In termsofRule114G(1)(e)(i)of IncomeTaxRules,1962issuedunderSection285BAofIncomeTaxAct,1961followinginformationisrequiredtobereportedbyreportingfinancialinstitution in the case of reportable custodial account:-(i) thetotalgrossamountofinterest,thetotalgrossamount

ofdividends,andthetotalgrossamountofotherincomegeneratedwithrespecttotheassetsheldintheaccount,in each case paid or credited to the account (or with respecttotheaccount)duringthecalendaryear;

3. In respect of the above it has been decided in consultation withCentralBoardofDirectTaxes,DepartmentofRevenue,MinistryofFinancethat:-

a) Depositoriesshallprovideadditionalfieldinthedepository

systemtotheRTAsbyJuly15,2017wherebytheRTAscan incorporate the details of corporate action viz.dividend/interest in rupee terms per unit of the security atthetimeofsettingupofcorporateaction.DepositoriesshallmakeavailablesuchinformationtoDPstoenablethemtodonecessaryreporting.

b) Thereportingwithrespecttodividend/interestistobedonebyDPson‘entitlement’basisandnotonthebasisof actual payment received by the demat account holder.

c) Ifademataccountisidentifiedasa‘reportableaccount’duringacalendaryearby theDP, thereportingunderRule114G(1)(e)istobedoneforthedividend/interestentitlementsduringtheentirecalendaryeari.e.includingtheperiodof thecalendaryearbefore identificationofsuchaccountasa‘reportableaccount’bytheDP.

4. Youareadvisedtotakenecessarystepstoensurecompliancewith the above.

5. TheDepositoriesaredirected tobring thecontentsof thiscirculartothenoticeoftheDepositoryParticipants,RegistrartoanIssueandtransferagents/Issuersofthesecuritiesandalso disseminate the same on their websites.

6. ThisCircularisbeingissuedinexerciseofpowersconferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct,1992readwithRule114G(11)(a)oftheIncomeTaxRules,1962.

7. ThisCircular is available on theSEBIwebsite (www.sebi.gov.in)underthesectionSEBIHome>LegalFramework>Circulars.

DEBASHISBANDYOPADHYAY GeneralManager

11 Non-compliance with certain provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“ICDR Regulations”)

[Issued by theSecurities AndExchangeBoard of India videCircular[F.No.CIR/CFD/DIL/57/2017]dated15.06.2017.]

1. Regulations 111A and 111B of ICDRRegulations interalia specify liability of a listed entity or any other person for contravention and actions which can be taken by the respectivestockexchangeandtherevocationofsuchactions,inthemannerspecifiedbySEBI.

2. Stockexchangesshall imposefineson thecompanies fornon-compliancewithcertainprovisionsofICDRRegulationsas under: Regulation Violation Fine95(1) Delayin

completion of bonus issue.

`20,000perdayofnon-compliancetill the date of compliance.

If non-compliance continues for morethan15days,additionalfineof 0.01 % of paid up capital of the entity or `1crore,whicheverisless.

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Paid-upcapitalforthispurposeshall be the paid up capital as on firstdayofthefinancialyearinwhich the non-compliance occurs.

75 Companies notallottingthe shares on conversion of convertible securities within 18 months.

Same as above.

108(2) Issuer not approachingtheexchangeforlistingofequityshares within 20 days from date of allotment.

Same as above.

3. Theamountoffinerealizedaspertheabovestructureshallbecreditedtothe“InvestorProtectionFund”oftheconcernedrecognizedstockexchange.

4. The recognizedstockexchangesshalldisseminateon theirwebsite the names of non-compliant listed entities that are liable topayfinefornon-compliance,theamountoffineimposed,detailsoffinesreceived,etc.

5. Therecognizedstockexchangeshallissuenoticetothenon-compliantlistedentitytopayfinewithin15daysfromthedateof the notice.

6. If any non-compliant listed entity fails to pay the fine,the recognized stock exchangemay initiate appropriateenforcementaction,includingprosecution.

7. Inconsultationwiththestockexchanges,itisfurtherclarifiedwith respect to bonus issue delays:a) For the purpose of a bonus issue to be considered

as ‘implemented’ under Regulation 95(1) of ICDRRegulations,thedateofcommencementoftradingshallbe considered.

b) Therecognizedstockexchangeshallgrantapprovalstothebonus shares allotted to persons other than the promoter(s) intheinterestoftheinvestors,subjecttocompliancewithotherrequirements.

c) Theapprovalsfor thepromoters’bonussharesmaybegranted by theStockExchange after payment of therequisitefinebythecompany.

8. TheStockExchangesareadvisedtobringtheprovisionsofthiscircular to the notice of listed entities and also to disseminate the same on its website.

9. Thiscircularisissuedunderregulations111A,111Band112ofICDRRegulations.

10. ThiscircularisavailableonSEBIwebsiteatwww.sebi.gov.inunderthecategories“LegalFramework/Circulars”.

PRADEEPRAMAKRISHNANDeputyGeneralManager

12 Recording of Non Disposal Undertaking (NDU) in the Depository System

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircularCIR/MRD/DP/56/2017]dated14.06.2017.]

1. The depository system provides a transparent mechanism for recordingpledge transactionsenteredbetween lendersandborrowers.

2. SEBI (Substantial Acquisition of Shares and Takeovers)Regulations, 2011, requires promoters of a company todisclosedetailsoftheirencumberedsharesincludingNDUsbypromoters which are covered under the scope of disclosures of‘Encumbrances’.

3. It has been observed that some shareholders, primarilypromoters,enterintonon-disposalagreements/non-disposalundertaking(NDU)forborrowingfundsfromvariouslenders.NDUsaretypicallyundertakingsgivenbyashareholdernotto transfer or otherwise alienate the securities and are in the natureofnegativeliengiveninfavourofanotherparty,usuallya lender.

4. It is observed that currently there is no framework to capture thedetailsofNDUinthedepositorysystemasthesehappenoutside the depository system and are not captured and reflectedintherecordsofthedepositories.Therefore,inordertoenabletheshareholderstorecordtheNDUsinthedepositorysystem,ithasbeendecidedtopermitthedepositoriestoofferasystemforcapturingandrecordingtheNDUs.

5. Inthisregard,thedepositoriesareadvisedthefollowing:5.1.Depositoriesshalldevelopaseparatemodule/transaction

typeintheirsystemforrecordingNDUs.5.2.BothpartiestotheNDUshallhaveademataccountwith

thesamedepositoryandbeKYCcompliant.5.3.Pursuant to entering theNDU, the BeneficialOwner

(BO)alongwiththeotherpartyshallmakeanapplicationthroughtheparticipant(wheretheBOholdshissecurities)tothedepository,forthepurposeofrecordingtheNDUtransaction.

5.4.TheapplicationshallnecessarilyincludedetailsofBOID,PAN,email-id,signature(s),nameoftheentityinwhosefavorsuchNDUisenteredandthequantityofsecurities.Such entity inwhose favorNDU is entered shall alsoauthorizetheparticipantoftheBOholdingtheshares,toaccessthesignaturesasrecordedinthatentity’sdemataccount.

5.5.Theparticipantafterbeingsatisfiedthatthesecuritiesareavailable forNDUshall record theNDUand freeze fordebittherequisitequantityofsecuritiesunderNDUinthedepository system. .

5.6.The depositories shall make suitable provisions forcapturing thedetailsofBOIDandPANof theentity inwhose favor suchNDU is entered by the participant.The depositories shall also make available to the said participant, the details of authorized signatories asrecorded in the demat account of the entity in whose favor suchNDUisentered.

5.7.On creation of freeze in the depository system, the


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Tdepository/ participant of theBOholding shares, shallinformbothpartiesoftheNDUregardingcreationoffreezeunderNDU.

5.8.The depositories shall make suitable provisions for capturing thedetailsofcompany/promoters if theyarepartoftheNDU.

5.9.IncaseiftheparticipantdoesnotcreatetheNDU,itshallintimatethesametothepartiesoftheNDUalongwiththereasons thereof.

5.10.OncethefreezefordebitsiscreatedundertheNDUforaparticular quantityof shares, thedepository shall notfacilitate or effect any transfer, pledge, hypothecation,lending, rematerialisation or in anymanner alienate orotherwiseallowdealinginthesharesheldunderNDUtillreceipt of instructions from both parties for the cancellation ofNDU.

5.11.TheentryofNDUmadeasperpara5.5abovemaybecancelledbythedepository/participantoftheBOthroughunfreezeofspecifiedquantityifpartiestotheNDUjointlymake such application to the depository through theparticipantoftheBO.

5.12.Onunfreezeofsharesupontermination/cancellationofNDU,thedepositoryshallinformbothpartiesoftheNDUintheformandmanneragreeduponatthetimeofcreatingthefreeze.Theunfreezeshallbeeffectedinthedepositorysystemafteracoolingperiodof2clearbusinessdaysbutno later than 4 clear business days.

6. ThefreezeandunfreezeinstructionsexecutedbytheParticipantforrecordingNDUswillbesubjectto100%concurrentaudit.

7. TheDPsshallnotfacilitateorbeapartytoanyNDUoutsidethe depository system as outlined herein

8. TheDepositoriesshallimplementtheprovisionsofthiscircularwithin four months from the date of this circular.

9. TheDepositoriesareadvisedto:-i. makeamendments to the relevant bye-laws, rules and

regulationsfortheimplementationoftheabovedecision,asmaybeapplicable/necessary;

ii. tocarryoutsystemchangesifanytoimplementtheabove;iii. disseminatetheprovisionsofthiscircularontheirwebsite;iv. communicatetoSEBI,thestatusofimplementationofthe

provisionsof thiscircular in theirMonthlyDevelopmentReport.

10. ThiscircularisbeingissuedinexerciseofthepowersconferredbySection11(1)ofSecuritiesandExchangeBoardofIndiaAct, 1992 and section 19 of theDepositoriesAct, 1996 toprotect the interest of investors in securities and to promote thedevelopmentof,andtoregulatethesecuritiesmarket.

SUSANTAKUMARDASDeputyGeneralManager

13 Comprehensive Review of Margin Trading Facility

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircularCIR/MRD/DP/54/2017]dated13.06.2017.]

1. SEBI vide circularSEBI/MRD/SE/SU/Cir-15/04datedMarch19, 2004 had prescribed framework for permitting stockbrokerstoprovidemargintradingfacility totheirclients.Thesaid frameworkwas revisedvidecircularSEBI/MRD/SE/SU/Cir-16/04datedMarch31, 2004and circularMRD/DoP/SE/Cir-08/2005datedMarch04,2005.

2. Representationshavebeenreceivedfrommarketparticipantsrequestingreviewofmargintradingframeworktoenablegreaterparticipation.Thesuggestionsreceivedfrommarketparticipantswere examined and deliberated in the SecondaryMarketAdvisoryCommittee (“SMAC”). Basedon the deliberations,the revised framework forMarginTradingFacilityarestatedas under:

SecuritiesEligibleforMarginTrading

3. EquitySharesthatareclassifiedas‘GroupIsecurity’asperSEBIMastercircularNo.SEBI/HO/MRD/DP/CIR/P/2016/135datedDecember16,2016,shallbeeligibleformargintradingfacility.

MarginRequirement

4. Inordertoavailmargintradingfacility,initialmarginrequiredshallbeasunder;Category of Stock Applicable marginGroup I stocks available fortradingintheF&OSegment

VaR+3timesofapplicableELM*

Group I stocks other thanF&Ostocks

VaR+5timesofapplicableELM*

*For aforesaid purpose theapplicableVaRandELMshall beas in the cashsegmentforaparticularstock.

5. TheinitialmarginpayablebytheclienttotheStockBrokershallbeintheformofcash,cashequivalentorGroupIequityshares,withappropriatehaircutasspecifiedinSEBIMastercircularno.SEBI/HO/MRD/DP/CIR/P/2016/135datedDecember16,2016.

6. TheStockbrokersshallberequiredtocomplywiththefollowingconditions:i The stocks deposited as collateral with the stock broker for

availingmargintradingfacility(Collaterals)andthestockspurchasedunderthemargintradingfacility(Fundedstocks)shallbeidentifiableseparatelyandnocominglingshallbepermittedforthepurposeofcomputingfundingamount;

ii. Collateral and Funded stocks shall be marked to market onadailybasis;

iii. IncaseofincreaseinthevalueofCollaterals,stockbrokersmayhavetheoptionofgrantingfurtherexposuretotheirclientssubjecttoapplicablehaircuts;

iv. However, no such exposure shall be permitted on theincreased value of Funded stocks.

7. Stockbrokersshallensuremaintenanceoftheaforesaidmarginatalltimesduringtheperiodthatthemargintradingfacilityisbeingavailedbytheclient.Incaseofshortfall,stockbrokershallmakenecessarymargincalls.

8. Theexchange/stockbroker, basedon the risk assessment,shallhavethediscretiontoimpose/collecthighermarginthanthemarginspecifiedinpara-4above.

LiquidationofSecuritiesbytheStockBrokerinCaseofDefault

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by the Client

9. The stock broker shall list out situations/conditions in which thesecuritiesmaybeliquidatedandsuchsituations/conditionsshallbeincludedinthe“RightsandObligationsDocument”.Thebrokershallliquidatethesecurities,iftheclientfailstomeetthemargincalltocomplywiththeconditionsasmentionedinthiscircularorspecifiedinthe“RightsandObligationsDocument”specifiedbyexchange.

10. However,thebrokershallnotliquidateoruseinanymannerthesecurities of the client in any situation other than the conditions stipulated at para-9 above.

EligibilityRequirements forStockBrokers toProvideMarginTradingFacilitytoClients

11. OnlycorporatestockbrokerswithanetworthofatleastRs.3.00crore shall beeligible to offermargin trading facility to theirclients.

12. The“networth”forthepurposeofmargintradingfacilityshallbe as specified in SEBI (Stock Brokers andSub-Brokers)Regulations,1992.

13. Thestockbrokersshallsubmittothestockexchangeahalf-yearlycertificate,ason31stMarchand30thSeptemberofeachyear,fromanauditorconfirmingthenetworth.Suchacertificateshallbesubmittednotlaterthan30thApriland31stOctoberofevery year.

Source of Funds

14.Forthepurposeofprovidingthemargintradingfacility,astockbroker may use own funds or borrow funds from scheduled commercial banksand/orNBFCs regulatedbyRBI.A stockbroker shall not be permitted to borrow funds from any other source.

15. The stock broker shall not use the funds of any client for providing themargin trading facility toanotherclient,even ifthesameisauthorizedbythefirstclient.

LeverageandExposureLimits

16. Atanypointoftime,thetotalindebtednessofastockbrokerforthepurposeofmargintradingshallnotexceed5timesofitsnetworth,calculatedasperpara12above.

17. Themaximumallowableexposureof thebroker towardsthemargintradingfacilityshallbewithintheselfimposedprudentiallimitsandshallnot, inanycase,exceedtheborrowedfundsand50%ofhis“networth”.

18. While providing themargin trading facility, the broker shallensure that:a) exposuretoanysingleclientatanypointoftimeshallnot

exceed10%ofthebroker’smaximumallowableexposure,asspecifiedinpara17above.

b) exposuretowardsstockspurchasedundermargintradingfacility and collateral kept in the form of stocks are well diversified.Stock brokers shall have appropriateBoardapprovedpolicyinthisregard.

DisclosureRequirement

19. Thestockbrokershalldisclosetothestockexchangesdetailsongrossexposuretowardsmargintradingfacilityincludingnameoftheclient,Categoryofholding(Promoter/promotergrouporNon-promoter),clients’PermanentAccountNumber(“PAN”),name of the scrips (Collateral stocks and Funded stocks) and if thestockbrokerhasborrowedfundsforthepurposeofprovidingmargintradingfacility,nameofthelenderandamountborrowed,onorbefore12noononthefollowingtradingday.TheformatforthisdisclosurebythestockbrokertothestockexchangeisenclosedatAnnexure1.

20. Thestockexchangesshalldiscloseontheirwebsitesthescripwisegrossoutstandinginmarginaccountswithallbrokerstothemarket.Suchdisclosureregardingmargintradingdoneonanydayshallbemadeavailableafterthetradinghours,onthefollowingday,throughitswebsite.TheformatforsuchdisclosurebythestockexchangeisenclosedatAnnexure2.

21. Thestockexchangesshallputinplaceasuitablemechanismtocaptureandmaintainallrelevantdetailsincludingmember-wise,client-wise,scrip-wiseinformationregardingoutstandingpositionsinmargintradingfacilityandalsosourceoffundsofthestockbrokers,ontheexchangebothondailyaswellasoncumulative basis.

RightsandObligationsforMarginTrading

22. The stock exchanges shall frameaRights andObligationsdocumentlayingdowntherightsandobligationsofstockbrokersandclientsforthepurposeofmargintradingfacility.TheRightsandObligationsdocumentshallbemandatoryandbindingontheBroker/TradingMemberandtheclientsforexecutingtradeintheMarginTradingframework.

23. Thebroker/exchangemaymodifytheRightsandObligationsdocumentonlyforstipulatinganyadditionalormorestringentconditions,providedthatnosuchmodificationshallhavetheeffectofdilutinganyoftheconditionslaiddowninthecircularorintheRightsandObligationsdocument.

MaintenanceofRecords

24. Thestockbrokershallmaintainseparateclient-wiseledgersforfundsandsecuritiesofclientsavailingmargintradingfacility.

25. The stock broker shall maintain a separate record of details of thefundsusedandsourcesoffundsforthepurposeofmargintrading.

26. Thebooksofaccounts,maintainedbythebroker,withrespecttothemargintradingfacilityofferedbyit,shallbeauditedonahalfyearlybasis.Thestockbrokershallsubmitanauditor’scertificatetotheexchangewithinonemonthfromthedateofthehalfyearending31stMarchand30thSeptemberofayearcertifying,interalia,theextentofcompliancewiththeconditionsofmargin trading facility.Thiscertificate is inaddition to thecertificateonnetworthspecifiedinpara12above.

OtherConditions

27. Abrokershalltakeadequatecareandexerciseduediligencebeforeprovidingmargintradingfacilitytoanyclient.

28. Anydisputesarisingbetweentheclientandthestockbrokerinconnectionwiththemargintradingfacilityshallhavethesame

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treatment as normal trades and should be covered under the investorgrievanceredressalmechanism,arbitrationmechanismofthestockexchange.

29. SGFandIPFshallbeavailablefortransactionsdoneontheexchange,whether throughnormalormargin tradingfacility.However,any lossessuffered inconnectionwith themargintradingfacilityavailedbytheclientfromthestockbrokershallnotbecoveredunderIPF.

30. Thestockbrokerswishingtoextendmargintradingfacilitytotheirclientsshallberequiredtoobtainpriorpermissionfromthe exchangewhere themargin trading facility is proposedtobeoffered.Theexchangeshallhaverighttowithdrawthispermissionatalaterdate,aftergivingreasonsforthesame.

31. ThiscircularshallsupersedeearliercircularsnoSEBI/MRD/SE/SU/Cir-15/04 datedMarch19, 2004,SEBI/MRD/SE/SU/Cir-16/04datedMarch31,2004andMRD/DoP/SE/Cir-08/2005datedMarch04,2005onMarginTradingFacility.

32. TheStockExchangesareadvisedto:-a. take necessary steps and put in place necessary systems

for implementation of this circular.b. makenecessary amendments to the relevant bye-laws,

rulesandregulationsfortheimplementationoftheabovedecision.

c. bring the provisions of this circular to the notice ofthemember brokers of the stock exchange and alsodisseminate the circular on the website.

33. ThiscircularisbeingissuedinexerciseofthepowersconferredbySection11(1)ofSecuritiesandExchangeBoardofIndiaAct,1992toprotecttheinterestofinvestorsinsecuritiesandtopromotethedevelopmentof,andtoregulatethesecuritiesmarket.

SUSANTAKUMARDASDeputyGeneralManager

Annexure 1Format of the Daily Reporting by the members to the

Exchange on the amount financed by them under the Margin Trading Facility

Name of the member Clearing No.Nameof Cli-ent

CategoryofHolding(Pro-moter/PromoterGrouporNonPromoter

PAN NameofStock(Collateral or Funded Stock)

Stock Exchange

Qty Financed (Numberof shares)

AmountFi-nanced( In lakhs)

SI. NO. Particulars (Rs. in lakhs)1 Totaloutstandingonthebeginningoftheday2 Add:Freshexposuretakenduringtheday3 Less:Exposureliquidatedduringtheday4 Netoutstandingattheendoftheday

Source of Funds1 Outofnetworth2 Outofborrowedfunds3 Ifborrowed,nameoflendersandamountbor-

rowedtobespecifiedseparately

Note:Disclosureisrequiredtobemadeonorbefore12noononthefollowingtradingday.

Annexure 2Format for the dissemination of information by

the stock exchange

NameoftheStock Qty.financedbyallthemembers(Numberofshares)

Amountfinancedbyallthemembers(Rs.in lakhs)

SI. NO. Particulars (Rs. in lakhs)1 Scrip-wisetotaloutstandingonthebeginningof

the day2 Add:Freshexposuretakenduringtheday3 Less:Exposureliquidatedduringtheday4 Netscrip-wiseoutstandingattheendoftheday

Note : Disclosureisrequiredtobemadeimmediatelybeforeendofthefollowingtradingday(inrespectofpreviousday’smargintradingfacility).

14 Options on Commodity Futures- Product Design and Risk Management Framework

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCicrularSEBI/HO/CDMRD/DMP/CIR/P/2017/55]dated13.06.2017.]

1. InconsultationwithCommodityDerivativesAdvisoryCommittee(CDAC),SEBIvideCircularSEBI/HO/CDMRD/DMP/CIR/P/104datedSeptember28,2016decidedthatCommodityDerivativesExchangesshallbepermittedtointroducetradinginoptions.This circular is hereby being issued to stipulate necessaryguidelines with regard to the product design and riskmanagement framework tobeadoptedfor trading inoptionson commodity futures.

2. Theproduct designand riskmanagement frameworkwouldbeinconformitywiththeguidelinesprescribedinAnnexure 1 enclosed with this circular.

3. Eligibility criteria for selection of underlying Commodity Futures for Options:Optionswouldbepermittedfortradingonacommodityderivativesexchangeonlyonthosecommodityfuturesasunderlying,whicharetradedonitsplatformandsatisfyboththecriteriaspecifiedbelowontherespectiveexchange:a. Theunderlying ‘Futurescontracts’onthecorresponding

commodityshallbeamongstthetopfivefuturescontractsintermsoftotaltradingturnovervalueofprevioustwelvemonths;

b. Theaveragedailyturnoverofunderlyingfuturescontractsofthecorrespondingcommodityduringtheprevioustwelvemonths,shallbeatleast:I. INR 200 crore for agricultural and agri-processed

commoditiesII. INR1000croreforothercommodities.

4. Itisdecidedthatinitially,onapilotbasiseachexchangeshallbe allowed to launch options on futures of only one commodity that meets the criteria prescribed above.

5. TheCommodityderivativesexchangeswillingtostarttradingin

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optionscontractsshalltakepriorapprovalofSEBIforlaunchingsuch contracts.

6. Thecircularshallbeeffectivefromthedateofthiscircular.

7. TheExchangesareadvisedto:i. take steps to make necessary amendments to the relevant

bye-laws,rulesandregulationsfortheimplementationofthesame,

ii. bring the provisions of this circular to the notice of themembers of theExchangeandalso to disseminate thesameontheirwebsite,

iii. communicatetoSEBI,thestatusoftheimplementationofthe provisions of this circular.

8. ThiscircularisissuedinexerciseofpowersconferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct,1992,toprotecttheinterestsofinvestorsinsecuritiesandtopromotethedevelopmentof,andtoregulatethesecuritiesmarket.

9. This circular is available onSEBIwebsitewww.sebi.gov.inunder the category“Circulars” and “Info for Commodity Derivatives”.

VIKASSUKHWALDeputyGeneralManager

Annexure 1

A. Product Design for Options on Commodity Futures:

1. Underlying:Commodityfuturescontract(ofaspecifiedmonth)tradedonthecorrespondingexchange.

2. Settlement Method:Onexercise,optionpositionshalldevolveintounderlyingfuturespositionasfollows:-• long call position shall devolve into longposition in the

underlyingfuturescontract• longputpositionshalldevolve intoshortposition in the

underlyingfuturescontract• short call position shall devolve into short position in the

underlyingfuturescontract• shortputpositionshalldevolve into longposition in the

underlyingfuturescontractAllsuchdevolvedfuturespositionsshallbeopenedatthestrikepriceoftheexercisedoptions.

3. Exercise Style: To beginwithEuropeanStyle options arepermitted.

4. Minimum Strikes:Eachoptionexpiryshallhaveminimumthreestrikesavailableviz.,oneeachforIntheMoney(ITM),OutoftheMoney(OTM)andAttheMoney(ATM).

5. Exercise Mechanism: Onexpiry,followingmechanismshallbeadoptedbyExchanges

forexerciseoftheoptionscontracts:5.1.Option series having strike price closest to theDaily

SettlementPrice(DSP)ofFuturesshallbetermedasAttheMoney(ATM)optionseries.

ThisATMoptionseriesandtwooptionserieshavingstrikepricesimmediatelyabovethisATMstrikeandtwooptionseries having strikeprices immediately below thisATM

strikeshallbereferredas‘Closetothemoney’(CTM)optionseries.

In case theDSP is exactlymidwaybetween two strikeprices, then immediate two option series having strikeprices justaboveDSPand immediate twooptionserieshavingstrikeprices justbelowDSPshallbereferredas‘Closetothemoney’(CTM)optionseries.

5.2.Alloptioncontractsbelongingto‘CTM’optionseriesshallbeexercisedonlyon‘explicit instruction’ forexercisebythelongpositionholdersofsuchcontracts.

5.3.All In themoney (ITM) option contracts, except thosebelonging to ‘CTM’ option series, shall be exercisedautomatically,unless‘contraryinstruction’hasbeengivenbylongpositionholdersofsuchcontractsfornotdoingso.

5.4.AllOutofthemoney(OTM)optioncontracts,exceptthosebelongingto‘CTM’optionseries,shallexpireworthless.

5.5.All exercised contractswithin an option series shall beassignedtoshortpositionsinthatseriesinafairandnon-preferential manner.

6. Trading Hours: Trading hours shall be same as those ofcorrespondingfuturescontract.

7. Expiry Day: Expiry day of options contracts shall bedecidedbyExchangebaseduponperiodofhigh liquidityofunderlyingfuturescontractandshallbepartofoptioncontractspecifications.

8. Position Limits:8.1.SEBIvideCircularSEBI/HO/CDMRD/DMP/CIR/P/2016/96

datedSeptember27,2016prescribednormsforpositionlimitsforcommodityfutures.Positionlimitsforoptionsshallfollow the same norms as provided in the said circular for futures.

8.2.Positionlimitsofoptionswouldbeseparatefrompositionlimits of futures contracts and numerical value for client level/memberlevellimitsshallbetwiceofcorrespondingnumbers applicable for futures contracts provided in Annexure-A of theSEBI circular datedSeptember 27,2016.

8.3.Due to separate position limits for options, there isa possibility that post exercise of options i.e. afterdevolvement of options into corresponding futurespositionsopenpositionsforclients/membersmayexceedtheir permissible position limits for future contracts. For suchclients/membersExchangesmaypermitmaximumup to two tradingdayspostoptionexpiryday to reducetheirfuturespositionstobringthemwithinthepermissibleposition limits.

B. Risk Management Framework:9. Exchangesshalladoptriskmanagementframeworkcompliant

with the CPMI-IOSCO Principles for Financial MarketInfrastructures,includingthefollowing:9.1. Margining model and quantum of initial margins:

Exchanges shall adopt initial margin models andparameters that are risk-based and generatemarginrequirementssufficienttocoverpotentialfutureexposureto participants/clients in the interval between the last margincollectionandthecloseoutofpositionsfollowinga participant/client default. The model shoulda) useaconservativeestimateofthetimehorizonsfor

closeoutofthepositions(includinginstressedmarket

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conditions),b) have an appropriatemethod formeasuring credit

exposurethataccountsforrelevantriskfactorsandportfolioeffects,and

c) totheextentpracticableandprudent,limittheneedfordestabilising,pro-cyclicalchanges.

Initialmarginrequirementshallbeadequatetocover99%VaR(ValueatRisk)andMarginPeriodofRisk(MPOR)shall be at least two days. In case of portfolio based margining, this requirement applies to each portfolio’sdistributionoffutureexposure.

Accordingly,exchangesshallfixprudentpricescanrange,volatilityscanrangeand/orplausiblechangesinanyotherparametersimpactingoptionsprice.Exchangeshallimposeappropriateshortoptionminimummargin,calendarspreadchargeandextremelossmarginforoptioncontracts.

9.2. Margining at client level: Exchanges shall imposeinitialmarginsat the levelofportfolioof individualclientcomprisingofhispositionsinfuturesandoptionscontractson each commodity.

9.3. Real time computation:Though themarginingmodelsmay update various scenarios of parameter changes(underlyingprice,volatilityetc.)atdiscretetimepointseachday(atleasteverytwohours),thelatestavailablescenariosshall be applied to client portfolios on a real time basis.

9.4. Mark to market: Exchanges shallmark tomarket theoptionspositionsbydeducting/addingthecurrentmarketvalueofoptions(positiveforlongoptionsandnegativeforshortoptions) times thenumberof long/shortoptions intheportfoliofrom/tothemarginrequirement.Thus,marktomarketgainsandlosseswouldnotbesettledincashfor options positions.

9.5. Risks pertaining to options that devolve into futures on expiry:a) For handling increase inmargins on expirywhen

options devolve into futures position, specificallyfor long option positionswhich are probable to beexercised,exchangesshallstartsensitizingtheoptionholdersoftheimpendingincreaseinmargins(alongwith the estimated increase) at least few days in advance,and/or,basedontheirriskperception,mayalsoconsidergraduallycollectingincreasedmarginsduring the last few days so as to have adequatemarginstocovertheriskoffuturespositionthatwillbe created on devolvement of options into futures.

b) As per the provisions of SEBI circular SEBI/HO/CDMRD/DRMP/CIR/P/2016/80datedSeptember07,2016,penaltyisleviedonmembersforshort-collection/non-collectionoftheinitialmargins.Penaltyforsuchshort-collection/non-collection due to increase in initial margins resulting fromdevolvement of options intofuturesmaynotbeleviedbyExchangesforthefirstday.

15 Comprehensive guidelines for Investor Protection Fund, Investor Service Fund and its related matters at National Commodity Derivatives Exchanges

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircular

CIR/CDMRD/DEICE/CIR/P/2017/53]dated13.06.2017.]1. SEBI, vide its circular no SEBI/HO/CDMRD/DEICE/

CIR/P/2016/94 dated September 26, 2016, consolidatedvariousnormsandguidelines relating to InvestorProtectionFund,issuedbytheerstwhileFMC,applicabletotheNationalCommodityDerivativesExchanges(hereinafterreferredtoasExchanges).

2. With the objective to alignwith the practices in securitiesmarkets,basedontheinternaldeliberations,discussionsandfeedbackasreceivedfromtheNationalCommodityDerivativesExchanges,ithasbeendecidedtomodifycertainclausesintheaforesaid circular as under :

Constitution and management of the IPFa) Clause3.2.shallbesubstitutedthefollowing–

3.2.TheIPFTrustoftheexchangeshallhavemaximum5trustees.TheIPFTrustshallconsistofthreepublicinterest directors, one representative from investorassociationsrecognizedbySEBIandthecomplianceofficer of the exchange. Themaximum tenure ofa trustee (excluding the compliance officer of theexchange,whose trusteeshipwouldbeco-terminuswiththeservice)shallbefiveyearsorasspecifiedbySEBI.

b) Clause3.3.and3.6.shallbedeleted Contribution to the IPF

c) Clause4.1.shallbesubstitutedthefollowing-4.1.Allthepenaltiesleviedandcollectedbytheexchange,

exceptforthesettlementrelatedpenalties(includingpenalties fromdeliverydefault),shallbecreditedoftheIPF.

4.2.1%oftheturnoverfeechargedbytheexchangefromitsmembers/brokersortenlakhwhicheverishigherinafinancialyear.

Eligibility of claimsd) Clause6.2.shallbesubstitutedthefollowing-

6.2.Ifanyeligibleclaimariseswithinthreeyearsfromthedateofexpiryofthespecifiedperiod,suchclaimi. shallbeconsideredeligibleforcompensationfrom

IPF/CPFincasewherethedefaultermember’sfundsare inadequate. In such cases, IPF/CPFTrust shall satisfy itself that such claim could not havebeen filedduring the specifiedperiod forreasons beyond the control of the claimant.

ii. shallnotbeconsideredeligibleforcompensationfrom IPF/CPF incasewhere thesurplus fundsof the defaulter member is returned to the defaulter member. The same shall be borne by the exchangesafter scrutinizingand satisfyingitself thatsuchclaimcouldnothavebeenfiledduring thespecifiedperiod for reasonsbeyondthe control of the claimant.

Providedthatanyclaimreceivedafterthreeyearsfromthedateofexpiryofthespecifiedperiodmaybe dealt with as a civil dispute.

e) Clause6.3.shallbedeletedf) Clause6.4.shallbesubstitutedthefollowing-

6.4.The investor claim arising out of a default of abroker/memberoftheexchangeshallbeeligibleforcompensationfromIPF.

Determination of legitimate claimsg) Clause7.1.and7.2.shallbesubstitutedasfollowing-

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7.1.In case of claims against a defaultermember, theclaims of the claimant shall be placed before the defaulters’ committee for sanction and ratification.TheDefaulters’ Committee’s advicewith respectto legitimate claims shall be sent to IPFTrust fordisbursement of the amount.

7.2.Incasetheclaimamountismorethanthemaximumlimit for compensation under IPF or the amountsanctionedandratifiedbytheDefaultersCommitteeislessthantheclaimamount,thentheinvestormayprefer for arbitration mechanism for claim of the balance amount.

h) Clause7.3.shallbeinsertedthefollowing-7.3.In the event of default by themember, all transactions

executedon theexchangeplatformshall beeligible forsettlementfromIPFsubjecttotheappropriatenormslaiddownbythedefaulters’committee.TheIPFoftheexchangeshallbeutilizedfortheclientsofSEBIregisteredmembers.However, the said amount shall not bemore than themaximumlimitasprescribedatalltime.

Threshold limit for claimsi) Clause8.1and8.2shallbesubstitutedthefollowing:

8.1.The Exchanges are free to fix suitable compensationlimits,inconsultationwithIPFtrust.However,theamountof compensation available against a single claimof aninvestorarisingoutofdefaulterbyamemberbrokershallnotbelessthanRs1lakh.

8.2.TheexchangesinconsultationwithIPFTrust,shallreviewand progressively incase the amount of compensationavailableagainstasingleclaimfromaninvestoratleastevery three year.

j) Clause8.3shallbedeletedDisbursement of Claims from the IPFk) Clause9.2.and9.3.shallbesubstitutedthefollowing:

9.2. The compensation shall be disbursed to the investor from theIPFincasethere isashortageofdefaulterbroker’sassetsafteritsrealization.

9.3.The Exchange shall ensure that the amount realizedfrom the assets of the defaulter member is returned to the defaultermember after satisfying the claims of theexchangesandSEBIinaccordancewiththebye-lawsoftheexchange.

Provided that in case of a member broker havingmembershiponmultipleexchanges,amountrealizedfromthe assets of the defaulter member shall be returned to thesaidmemberonlyaftersatisfyingeligibleclaimsoftheconcernedexchange,SEBI,andotherexchangesasthecase may be.

Provided further that in caseswhere any litigations arependingagainstthedefaultermember,theresidualamount,ifany,mayberetainedbytheexchangeuntilsuchlitigationsareconcluded.”

3. TheIPFTrustshalldisbursethecompensationtotheinvestorsasandwhenclaimshavebeencrystallizedagainstadefaultermember.TheIPFTrustneednotwaitforrealizationofassetsofthedefaultermemberfordisbursementoftheclaims.Uponreceiptofadviceofdefaulter’scommittee,forpayment,theIPFTrust shall take necessary steps for disbursement of amount at the earliest.

4. Exchangesshallperiodically review thesourcesof fundand

eligiblecompensationamountsoastorecalibratethefundtomake suitable recommendation for enhancement.

Income earned on IPF and its Utilization:5. The exchangemay utilize incomeearned on the corpus of

IPFtowardspromotionof investoreducationandawarenessprogrammes through seminars, lectures, workshops,publications (print and electronicmedia), training programsetc. to enhance literacy and to promote participation in the commodity derivatives market or any other mandated purpose. Capitalexpenditurewouldbepermissibleonlyw.r.t.settingupofInvestorServiceCentre.However,noexpendituretobeincurredonproductpromotioninanymanner.However,incaseofnon-utilizationofthesaidincomeinthesamefinancialyearforthemandatedpurpose,thesameshallbeploughedbacktoIPF.Inadditiontoabove,theincomeearnedontheIPFcorpusmaybeutilizedinothermannerasprescribed/permittedbySEBIinthe interest of investors from time to time.

6. InordertoensureeffectiveutilizationofincomeearnedonIPF,supervisionofutilizationofinterestonIPFwillrestwiththeIPFTrustoftheexchange.

Investor Service Fund (ISF)7. Exchanges aremandated to set up InvestorService Fund

(ISF)forprovidingfollowingbasisminimumfacilitiesatvariousInvestor Service Centers (ISC).a. TheISCshallprovide4financialnewspaperswithatleast

oneintheRegionallanguage.b. The ISC shall install computer software (marketed by

some vendors) which provide information about various commodities (agri and non agri) including researchreports, general, financial& other important commodityrelated information. The information will be made available through computerswith onemaster terminal and somedummy terminals throughwhich investors could accessthisinformation.Otherfacilitieslikecopyingwillbemadeavailable to the investors at minimum cost.

c. The ISC shall provide facilities for receiving/recordinginvestor complaints. Special staff recruited/deployed by theexchangeforthispurposewillregisterthecomplaintsandprovidecounselingservicetotheinvestors.Statusofcomplaints will be maintained and updated in the computer system of the Center.

d. The ISC shall provide for other infrastructure facilities such astelephone,photocopier,furniture,sittingspace,internetconnectionhavingaccesstovariousdirections/circularsissuedbySEBIandGovernmentagenciesetc.

e. The ISC shall provide published commodity related materialsofexchangesforthebenefitoftheinvestors.Itshouldalsoprovidethepamphlets/brouchersdetailingtherightsandobligationofinvestorswhiledealingwithbrokersincommoditymarkets,FAQ’setc.

f. The ISC shall provide for dummy terminals to display the pricesofthecommoditieslistedontheexchangeonreal-timebasis,toenableinvestorswatchthepricemovementsof the commodities etc.

g. TheISCshallmaintainalibraryonrelevantlaws,financialanalysis,markettrendanalysisetc.fortheeducationoftheinvestors.

h. The ISC shall conduct various investor education and investorawarenessprogramsthroughseminars,lectures,

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workshops, publications (print and electronicmedia),training programs etc. enhance literacy and promotingparticipation in the commodity derivatives market.

Contribution to ISFa. Atinitialstage,theexchangeshallcontributeaminimum

ofRsTenLakhs towardssettingupof InvestorServiceFund(ISF).Subsequently,onwards,theExchangesshalltransferthe1%percentoftheturnoverfeeschargedbytheexchangefromitsmembersonmonthlybasistowardsISFwithin7daysoftheendofthemonth,subjecttominimumofRsTenLakhinafinancialyear.

b. TheExchangeshallalsoploughbacktheentire incomeearned on the corpus of ISF to the ISF within one month fromtheendofSeptemberandMarchofeachyear.

8. Theexchangeshallbepermittedtoutilizethecorpusof ISFfor conducting various investor education and awarenessprograms,capacitybuildingprogramsandmaintenanceofallpricetickerboardsinstalledbytherespectiveexchanges,costoftrainingofarbitratorsetc.Inadditiontoabove,thecorpusmaybeutilizedinothermannerasprescribed/permittedbySEBIinthe interest of investors from time to time.

9. In order to efficientmanagement of ISF, Investor ServiceCommittee(ISC)ofexchangeshalloverseethecontributiontoISFanditsutilization.

10. ExchangeshallmaintainseparatebankaccountformaintainingcorpusoftheIPFaswellasISFandsuchfundsshouldnotbeco-mingledwithanyotherfund(s)oftheexchangeandshallnotbe used for any other purpose than the mandated purposes as mentioned in this circular.

11. TheprovisionsofthiscircularshallcomeintoeffectfromJuly01,2017.

12 Theexchangesareadvisedto:-l makenecessaryamendmentstorelevantbye-laws,rules

andregulationsfortheimplementationofthiscircular.l bring the provisions of this circular to the notice of the

members of the exchangeandalso to disseminate thesame on their website.

l communicatetoSEBI,thestatusofimplementationoftheprovisions of this circular.

13. This circular is issued in exercise of the powers conferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct1992,readwithSection10oftheSecuritiesContracts(Regulation)Act,1956toprotecttheinterestsof investorsinsecuritiesandtopromotethedevelopmentof,andtoregulatethe securities market.

14. ThecircularisavailableonSEBIwebsiteatwww.sebi.gov.in.PRASADJAGADALE

DeputyGeneralManager

16 Online Registration Mechanism for Mutual Funds

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircular

SEBI/HO/IMD/DF3/CIR/P/2017/52]dated01.06.2017.]

1. Hon’bleMinisterofFinance,GovernmentofIndia,inhisspeechwhilepresentingtheBudgetforFY2017-18onFebruary01,2017,announcedthat theprocessof registrationoffinancialmarketintermediarieswillbemadefullyonlinebySEBI.

2. IthasnowbeendecidedtooperationalizeSEBIIntermediaryPortal(https://siportal.sebi.gov.in) for the entities to submit the mutualfundsregistrationapplicationsonline.ForregistrationofmutualfundstheSEBIIntermediaryPortalshallincludeonlineapplicationforregistration,processingofapplication,grantofin-principleapproval,grantoffinalregistrationetc.LinkforSEBIIntermediaryPortalisalsoavailableonSEBIwebsite-www.sebi.gov.in.

3. SEBI Intermediary Portal for application of registration ofMutualFundsshallbemadeoperationalfromJune01,2017.Thereafter,allapplicationsforregistrationofMutualFundshallbemadethroughSEBIIntermediaryPortalonly.

4. Theapplicantswillbeseparatelyrequiredtosubmitrelevantdocumentsviz.declarations/undertakingsrequiredasapartofapplicationformprescribedinrelevantregulations,inphysicalformonlyforrecords,withoutimpactingtheonlineprocessingofapplicationsforregistration.

5. In case of any queries and clarificationswith regard to theSEBIIntermediaryPortal,intermediariesmaycontacton022-26449364ormaywriteatportalhelp@sebi.gov.in.

6. ThiscircularisissuedinexerciseofthepowersconferredunderSection11(1)oftheSecuritiesandExchangeBoardofIndiaAct,1992,readwiththeprovisionofRegulation77ofSEBI(MutualFunds)Regulations,1996, toprotect the interestsofinvestors in securities and to promote the development of and toregulatethesecuritiesmarket.

RAJESHGUJJAR

DeputyGeneralManage

17 Disclosure Requirements for Issuance and Listing of Green Debt Securities

[IssuedbytheSecuritiesAndExchangeBoardofIndiavideCircularCIR/IMD/DF/51/2017]dated30.05.2017.]

1. SEBI (Issue and Listing of Debt Securities) Regulations,2008(“SEBIILDSRegulations”),governpublicissueofdebtsecuritiesandlistingofdebtsecurities issuedthroughpublicissueor onprivate placement basis, ona recognized stockexchange.

2. ForpublicissueandlistingofGreenDebtSecuritiesandlistingof privately placedGreenDebtSecurities, in addition to therequirementsasprescribedunderSEBIILDSRegulationsandCircularsmadethereunder,followingshallbeapplicable:2.1. Definition of Green Debt Securities :ADebtSecurityshallbeconsideredas„Green‟or„GreenDebtSecurities‟, if the funds raised through issuanceof thedebtsecuritiesaretobeutilisedforproject(s)and/orasset(s)fallingunderanyofthefollowingbroadcategories:


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a. Renewableandsustainableenergyincludingwind,solar,bioenergy, other sources of energy which use cleantechnologyetc.

b. Cleantransportationincludingmass/publictransportationetc.

c. Sustainablewatermanagement including clean and/ordrinkingwater,waterrecyclingetc

d. Climatechangeadaptatione. Energyefficiency includingefficientandgreenbuildings

etc.f. Sustainablewastemanagementincludingrecycling,waste

toenergy,efficientdisposalofwastageetc.g. Sustainable landuse including sustainable forestry and

agriculture,afforestationetc.h. Biodiversity conservationAnyothercategoryasmaybespecifiedbyBoard,fromtimeto time.2.2. Disclosures in Offer Document/ Disclosure Document

and other requirements TheissuerofaGreenDebtSecuritiesshallmakefollowing

disclosures:a. Astatementonenvironmentalobjectivesoftheissue

ofGreenDebtSecuritiesb. Brief details of decision-makingprocess issuer has

followed/would follow for determining the eligibilityofproject(s)and/orasset(s),forwhichtheproceedsare been raised through issuance ofGreenDebtSecurities.Anindicativeguidelineofthedetailstobeprovided is as under:i. processfollowed/tobefollowedfordetermining

how theproject(s)and/orasset(s)fitwithin theeligiblegreenprojectscategoriesasprovidedatpara2.1above;

ii. thecriteria,makingtheproject(s)and/orasset(s)eligible for using theGreen Debt Securitiesproceeds;and

iii. environmental sustainability objectives of theproposedgreeninvestment.

c. Issuer shall provide the details of the system/procedurestobeemployedfortrackingthedeploymentof the proceeds of the issue.

d. Detailsoftheproject(s)and/orasset(s)orareaswheretheissuer,proposestoutilisetheproceedsoftheissueofGreenDebtSecurities,includingtowardsrefinancingofexistinggreenproject(s)and/orasset(s),ifany.

e. The issuer may appoint an independent third party reviewer/certifier, for reviewing /certifying theprocessesincludingprojectevaluationandselectioncriteria, project categories eligible for financing byGreenDebtSecurities,etc.

Such appointment is optional and is at the part of issuer,howeveranysuchappointmentof reviewer/certifiershallbedisclosedintheofferdocument.

2.3. Continuous disclosure requirementsAnissuerwhohaslisteditsGreenDebtSecurities,alongwithcompliancesasunderSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”),shallprovidefollowingdisclosuresalongwithitsannualreportandfinancialresults:

a. Followingshallbeprovidedalongwiththehalfyearlyandannualfinancialresults:

i. Utilisationof theproceedsof the issue,asperthetrackingdonebytheissuerusingtheinternalprocess as disclosed in offer document/disclosure document. The utilisation of the proceeds shall beverifiedby thereportofanexternalauditor,to verify the internal trackingmethod and theallocation of funds towards the project(s) and/or asset(s), from the proceeds ofGreenDebtSecurities.

ii. Detailsofunutilizedproceedsb. Followingadditionaldisclosureshavetobeprovided

alongwithannualreport:i. Listofproject(s)and/orasset(s)towhichproceeds

oftheGreenDebtSecuritieshavebeenallocated/invested including a brief description of suchproject(s) and/or asset(s) and the amountsdisbursed. However, where confidentialityagreements limit theamount of detail that canbemadeavailableaboutspecificproject(s)and/orasset(s),informationshallbepresentedabouttheareasinwhichsuchproject(s)and/orasset(s)fall into.

ii. Qualitative performance indicators and,wherefeasible,quantitativeperformancemeasuresoftheenvironmental impactof theproject(s)and/or asset(s). If the quantitative benefits/impactcannotbeascertained,thenthesaidfactmaybeappropriatelydisclosedalongwiththereasonsfornon-ascertainmentofthebenefits/impactontheenvironment.

iii. Methods and the key underlying assumptionsused in preparation of the performance indicators andmetrics;

2.4. Responsibilities of the issuerAnissuerofGreenDebtSecuritiesshall:

a. maintainadecision-makingprocesswhichitusestodetermine the continuing eligibility of the project(s)and/or asset(s). This includes,without limitation astatement on the environmental objectives of theGreenDebtSecurities andaprocess to determinewhether the project(s) and/or asset(s) meet theeligibilityrequirements.

b. ensure that all project(s) and/or asset(s) fundedbythe proceeds ofGreenDebt Securities,meet thedocumentedobjectivesofGreenDebtSecurities.

c. utilise theproceedsonly for thestatedpurpose,asdisclosed in the offer document.

3. AnissuerofGreenDebtSecuritiesoranyagentappointedbytheissuer,iffollowsanygloballyacceptedstandard(s)fortheissuanceofGreenDebtSecuritiesincludingmeasurementoftheenvironmentalimpact,identificationoftheproject(s)and/orasset(s),utilisationofproceeds,etc.,shalldisclosethesameinthe offer document/disclosure document and/or in continuous disclosures.

4. ThisCircularisissuedinexerciseofpowersconferredunderSection11(1)ofSecuritiesandExchangeBoardofIndiaAct,1992readwithRegulation31(1)ofSEBIILDSRegulations.

5. ThisCircularisavailableonSEBIwebsiteatwww.sebi.gov.inunder thecategories“LegalFramework”andunder thedropdown“CorpDebtMarket”.

BARNALIMUKHERJEEChiefGeneralManager


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102 JULY 2017 I CHARTERED SECRETARY 103CHARTERED SECRETARY I JULY 2017102 JULY 2017 I CHARTERED SECRETARY 103CHARTERED SECRETARY I JULY 2017

n MEMBERSADMITTED/RESTORED

n CERTIFICATEOFPRACTICEISSUED/CANCELLED

n LICENTIATEICSIADMITTED

n RELEASESAT18THCONFERENCEOFPRACTICINGCOMPANYSECRETARIES

5InstituteNews from the


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*ADMITTEDDURINGTHEPERIODFROM20.05.2017TO19.06.2017 *ADMITTEDDURINGTHEPERIODFROM20.05.2017TO19.06.2017

Members AdmittedFELLOWS*

SL. NO.

NAME MEMB NO

REGN

1 SH.PRASHANTKUMARGUPTA FCS - 9218 NIRC2 SH.PANKAJGUPTA FCS - 9219 WIRC3 MS.AVANIMONARCHGANDHI FCS - 9220 WIRC4 MS.RAJMOHANNITHYA FCS - 9221 SIRC5 MRS.SHIPRAMISHRA FCS - 9222 EIRC6 MRS.SNEHATHARD FCS - 9223 EIRC7 MR.ADWAITSUNILKULKARNI FCS - 9224 WIRC8 SH.ASISHNARAYAN FCS - 9225 WIRC9 MRS.NEHASETH FCS-9226 NIRC

10 SH.NITINRAMCHANDRAPETHE FCS - 9227 WIRC11 MR.VIKASHKUMARMISRA FCS - 9228 NIRC12 MS.LABDHIHASMUKHLALSHAH FCS - 9229 WIRC13 MS.RUPALINITINABHYANKAR FCS - 9230 WIRC14 SH.RAJEEVCHAWLA FCS - 9231 NIRC15 MRS.SHILPAGAURANGPAREKH FCS - 9232 WIRC16 MR.RAMANSAPRA FCS - 9233 NIRC17 MRS.SMRITIMAHAJAN FCS - 9234 NIRC18 SHARAVINDKUMARMATTA FCS - 9235 SIRC19 SH.SANDEEPAGRAWAL FCS-9236 NIRC20 MS.RINKUGUPTA FCS - 9237 EIRC21 SH.SUNEETSINGHGROVER FCS - 9238 NIRC22 MS.SHILPIAGARWALA FCS - 9239 EIRC23 MS.REKHACHANDER FCS - 9240 NIRC24 SH.AKHANDPRATAPSINGH FCS - 9241 NIRC25 MS.MONIKAVERMA FCS - 9242 NIRC26 MS.DEEPAMAGAR FCS - 9243 EIRC27 MR.AMARKUMARNAYAK FCS - 9244 EIRC28 SH.RANGASAMYGHUNASHEKARAN FCS - 9245 SIRC29 MS.SHWETAVASANTMORE FCS-9246 WIRC30 MRS.SHIKHASARAF FCS - 9247 EIRC31 SH.DARAYUSPARVEZBAJAN FCS - 9248 WIRC32 SH.PREMASISBHAUMIK FCS - 9249 EIRC33 MR.SURYAKANTGUPTA FCS - 9250 NIRC34 MS.NIDHIHITESHVASWANI FCS - 9251 WIRC35 MR.VISHANTKUMARJAIN FCS - 9252 NIRC36 MRS.MONIKAGAURAVGUPTA FCS - 9253 WIRC37 MS.MANJULAUR FCS - 9254 NIRC38 MR.CHIKBALAPURAMNAGENDERKRANTHIKUMAR FCS - 9255 SIRC39 SH.TARUNKUMAR FCS-9256 NIRC40 SH.YOGESHKHAKRE FCS - 9257 WIRC

41 MS.MEENAKSHIGUPTA FCS - 9258 NIRC

ASSOCIATES*SL. NO

NAME MEMB NO

REGN

1 MS.ANKITADAS ACS-51317 EIRC2 MS.ANISHAJHUNJHUNWALA ACS-51318 EIRC3 MS.SHIVANIPALIWAL ACS-51319 NIRC4 MS.KRITIBAREJA ACS-51320 NIRC5 MR.PRAYASHURRIA ACS-51321 NIRC6 MR.GAURAVAGRAWAL ACS-51322 NIRC7 MS.ROMITASONI ACS-51323 NIRC8 MR.HIMANSHUVERMA ACS-51324 NIRC9 MR.ONKARJOHAR ACS-51325 NIRC10 MS.SHALINISINGH ACS-51326 NIRC11 MS.SWATICHHABRA ACS-51327 NIRC12 MR.DHIRAJKHAIRIWAL ACS-51328 NIRC13 MS.SONAMGUPTA ACS-51329 NIRC14 MS.MRINALINIARORA ACS-51330 NIRC15 MS.NEHARANI ACS-51331 NIRC16 MS.RANJANA ACS-51332 NIRC17 MS.ANUPAMAJHA ACS-51333 NIRC18 MS.SHALINIB ACS-51334 SIRC19 MS.KRUPABENKAMLESHBHAISHAH ACS-51335 WIRC20 MS.KHUSHBUSAURABHJOSHI ACS-51336 WIRC21 MS.TANVIROHANSHAH ACS-51337 WIRC22 MS.POONAMSHARMA ACS-51338 WIRC23 MR.DHARMENDRAJAGDISHBHAIMAKWANA ACS-51339 WIRC24 MR.ASHISHVIVEKANANDMISHRA ACS-51340 WIRC25 MR.SANJAYKUMARRADHESHYAMVISHWAKARMA ACS-51341 WIRC26 MR.SANTOSHKUMAROJHA ACS-51342 NIRC27 MS.SAMPADASACHINSAWANT ACS-51343 WIRC28 MR.RVENKATESH ACS-51344 SIRC29 MR.SUMITAJMERA ACS-51345 EIRC30 MR.SHASHANKSHANU ACS-51346 NIRC31 MS.SHALUVARSHNEY ACS-51347 EIRC32 MR.GURMITSINGH ACS-51348 NIRC33 MS.SHIVANISINGLA ACS-51349 NIRC34 MR.SAURABHKACKER ACS-51350 NIRC35 MS.PRERNASHARMA ACS-51351 EIRC36 MR.PAWANBISANI ACS-51352 WIRC37 MS.HIMALIDILIPMEHTA ACS-51353 WIRC38 MR.PATELBRIJESHKUMARSATISHBHAI ACS-51354 WIRC39 MS.SHRINALIMUKESHBHAIPATEL ACS-51355 WIRC40 MR.PARITHOSHRAI ACS-51356 WIRC41 MR.HIMANSHUSKGUPTA ACS-51357 WIRC42 MS.SRASHTIJAIN ACS-51358 WIRC43 MS.BHAGVANINISHABENTOLARAM ACS-51359 WIRC44 MS.AYESHADHANESHJAIN ACS-51360 WIRC45 MS.SHALINISUDIPBOSE ACS-51361 WIRC46 MS.BARKHAADLAKHA ACS-51362 NIRC47 MR.AMITKUMARDILIPKUMARMEHTA ACS-51363 WIRC48 MS.SANTOSHSHARMA ACS-51364 NIRC49 MS.NEHANAGNATHMULE ACS-51365 WIRC50 MR.BHAVESHRAMCHANDTHADANI ACS-51366 WIRC

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51 MS.SHIKHASINGH ACS-51367 WIRC52 MS.ASHITABANTHIYA ACS-51368 EIRC53 MS.SHEIKHA ACS-51369 EIRC54 MS.SHILPAGUPTA ACS-51370 EIRC55 MS.NIDHIDAMANI ACS-51371 EIRC56 MS.DEEPTIVAID ACS-51372 NIRC57 MR.AVNEETSINGH ACS-51373 NIRC58 MS.AKANSHAAGARWAL ACS-51374 NIRC59 MS.JYOTIRANAWAT ACS-51375 NIRC60 MS.SWATIJAIN ACS-51376 NIRC61 MS.CHETNABANSAL ACS-51377 NIRC62 MS.CHARIKATANDON ACS-51378 NIRC63 MR.ARPITAIRUN ACS-51379 NIRC64 MS.ADITISHARMA ACS-51380 NIRC65 MR.NIRAJTRIPATHI ACS-51381 NIRC66 MS.LUNIKALAMBA ACS-51382 NIRC67 MS.ANUBANSAL ACS-51383 NIRC68 MR.ARUNKUMARKOTHARI ACS-51384 WIRC69 MR.NISHANTTANWAR ACS-51385 NIRC70 MS.KIRTIARORA ACS-51386 NIRC71 MS.SAUMYAGUPTA ACS-51387 NIRC72 MS.KOMALGOYAL ACS-51388 NIRC73 MS.BHAVYASHREEJAIN ACS-51389 NIRC74 MS.SHIKHAGULERIA ACS-51390 WIRC75 MS.SEEMAGOEL ACS-51391 NIRC76 MR.YOGENDRAYADAV ACS-51392 NIRC77 MR.UMANGAGRAWAL ACS-51393 NIRC78 MR.RAHULGUPTA ACS-51394 NIRC79 MS.PRAGYANSHREE ACS-51395 NIRC80 MS.SHEENAMMANOCHA ACS-51396 NIRC81 MR.KAPILYADAV ACS-51397 NIRC82 MS.NAVNEET ACS-51398 NIRC83 MS.RINKIARORA ACS-51399 NIRC84 MS.RATNATIWARI ACS-51400 NIRC85 MR.SUSHILKUMARMAURYA ACS-51401 NIRC86 MS.ROSYKANAUJIA ACS-51402 NIRC87 MS.NIKITASHUKLA ACS-51403 NIRC88 MS.SHAIFALIGOYAL ACS-51404 NIRC89 MR.PREMPRASADB ACS-51405 SIRC90 MR.SREENUT ACS-51406 SIRC91 MR.JEEVASPULICKAN ACS-51407 SIRC92 MR.ANKITVIJAYAGRAWAL ACS-51408 WIRC93 MR.DHAKANHEMANGBHAGWANDAS ACS-51409 WIRC94 MR.PRAKASHDAULATGUNA ACS-51410 WIRC95 MR.KALPESHVISHWANATHHARIYAN ACS-51411 WIRC96 MS.KALYANIRAJENDRAVAZE ACS-51412 WIRC97 MS.KIRANMANOJKUMARSHARMA ACS-51413 WIRC98 MR.SANKETWAMANLONDHE ACS-51414 WIRC99 MR.KAUSTUBHSHRINIVASRAHALKAR ACS-51415 WIRC100 MS.SWATIDULICHANDKESHREE ACS-51416 WIRC101 MR.DEVANSHCHETANSARVAIYA ACS-51417 WIRC102 MS.KASHMIPRAVINSAKARIA ACS-51418 WIRC103 MR.NASIRKHAN ACS-51419 WIRC104 MR.GANGANIBHARATKUMARBECHARBHAI ACS-51420 WIRC

105 MR.SAURABHBHASKAR ACS-51421 WIRC106 MS.MAYURIBIPINBHAIRUPARELIYA ACS-51422 WIRC107 MS.DENISEJANICEPEREIRA ACS-51423 WIRC108 MR.ANISTHAERALIATTAR ACS-51424 WIRC109 MS.POOJAMAHESHGOHIL ACS-51425 WIRC110 MS.GUNJANGUPTA ACS-51426 NIRC111 MS.MAMTASHARMA ACS-51427 NIRC112 MS.DEEPIKABABBAR ACS-51428 NIRC113 MS.SHIKHASINGH ACS-51429 NIRC114 MS.NIDHIJAIN ACS-51430 NIRC115 MS.VARSHAKEJRIWAL ACS-51431 NIRC116 MS.DIVYAGUPTA ACS-51432 NIRC117 MR.RAVIGUPTA ACS-51433 NIRC118 MS.JYOTSNASHARMA ACS-51434 NIRC119 MS.NIKITAPARASKUMARMATA ACS-51435 WIRC120 MR.SUMITJAYANTKUMARMEHTA ACS-51436 WIRC121 MR.ANUJKIRANBHAIPATEL ACS-51437 WIRC122 MS.DIVYAOMPRAKASHNAI ACS-51438 WIRC123 MR.AKHILGUPTA ACS-51439 NIRC124 MR.PRASHANTSHARMA ACS-51440 NIRC125 MS.SONUAGARWAL ACS-51441 NIRC126 MS.CHHAVIDIxIT ACS-51442 NIRC127 MS.RENUKAKESWANI ACS-51443 NIRC128 MS.BARKHAJAIN ACS-51444 NIRC129 MS.RUCHIKAASHOKKONDE ACS-51445 WIRC130 MR.PRITESHKISHOREJHAVERI ACS-51446 WIRC131 MS.VAIDEHIDHARMENDRASINHCHUDASAMA ACS-51447 WIRC132 MS.FATEMAAAMIRFATEHI ACS-51448 WIRC133 MR.GOUTAMMONDAL ACS-51449 EIRC134 MR.GOPESHSHARMA ACS-51450 WIRC135 MR.DSURESH ACS-51451 SIRC136 MS.ROHINIJANARDANPIMPLE ACS-51452 WIRC137 MR.ALOYSIUSSAVIODIAS ACS-51453 WIRC138 MR.VEDANTMITTAL ACS-51454 NIRC139 MS.KIRANDEEPKAUR ACS-51455 NIRC140 MS.ANUSHREEKHUNTETA ACS-51456 NIRC141 MS.VEENAVISHALPATIL ACS-51457 WIRC142 MR.SIVAIAHPALLA ACS-51458 SIRC143 MS.CHANDNIVIKRAMSHAH ACS-51459 WIRC144 MR.ABDULSAMEESHABBIRCHHAPPRA ACS-51460 WIRC145 MS.KHUSHBOOBOTHRA ACS-51461 EIRC146 MR.PANKAJKUMARSHARMA ACS-51462 NIRC147 MS.RUMA ACS-51463 NIRC148 MR.ARPITGANGWANI ACS-51464 NIRC149 MS.NEHADILIPSHAH ACS-51465 WIRC150 MS.SHARMANIKITANARESHBHAI ACS-51466 WIRC151 MR.ISHANKIRANBHAIFICHADIA ACS-51467 WIRC152 MS.SUNITHADEVIKORLAPATI ACS-51468 SIRC153 MS.SSUDHA ACS-51469 SIRC154 MS.POOJATOMAR ACS-51470 NIRC155 MR.MANISHKUMARPANDEY ACS-51471 SIRC156 MS.POOJASINHAROY ACS-51472 EIRC157 MR.DIPAKKUMARJAIN ACS-51473 EIRC158 MS.NEHA ACS-51474 EIRC159 MR.NITINGUPTA ACS-51475 EIRC

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160 MR.HARSABARDHANBHARGABINANDANPRAHARAJ ACS-51476 EIRC161 MR.KAPILESHPURI ACS-51477 EIRC162 MS.JYOTIMALL ACS-51478 EIRC163 MR.TAPASTIRTHA ACS-51479 EIRC164 MS.SONAMPATWARI ACS-51480 EIRC165 MR.VINEETJAIN ACS-51481 EIRC166 MR.MOHITPATEL ACS-51482 EIRC167 MS.PARAMITAPAUL ACS-51483 EIRC168 MS.MAHIMA ACS-51484 NIRC169 MR.AMITGUGNANI ACS-51485 NIRC170 MS.ANKITADHABHAI ACS-51486 NIRC171 MS.JASPREETKAUR ACS-51487 NIRC172 MS.BHAGYASHREEGOYAL ACS-51488 NIRC173 MR.SOMESHMAHAJAN ACS-51489 NIRC174 MR.SUSHEELTHAKUR ACS-51490 NIRC175 MS.SWATISONI ACS-51491 NIRC176 MR.KARANVASWANI ACS-51492 NIRC177 MR.MANISH ACS-51493 NIRC178 MS.NEHACHOPRA ACS-51494 NIRC179 MR.PRABHASHPARASHAR ACS-51495 NIRC180 MS.PRATIKSHAJAIN ACS-51496 NIRC181 MS.ANJEETACHAORASIA ACS-51497 NIRC182 MR.RAJESHKUMARYADAV ACS-51498 NIRC183 MR.VIJAYKUMARTHAKUR ACS-51499 EIRC184 MS.DIVYAGOEL ACS-51500 NIRC185 MR.SUNILSHARMA ACS-51501 NIRC186 MR.TEJASPATEL ACS-51502 WIRC187 MR.GAURAVKUMAR ACS-51503 NIRC188 MS.AAKANKSHAJAIN ACS-51504 NIRC189 MR.SOURABHBAPNA ACS-51505 NIRC190 MR.JAIPRAKASH ACS-51506 NIRC191 MS.SWATISHEKHAWAT ACS-51507 NIRC192 MS.PRATIKATAMBOLI ACS-51508 NIRC193 MS.VANIBANSAL ACS-51509 NIRC194 MS.POONAMTEWANI ACS-51510 NIRC195 MS.AYUSHIJAIN ACS-51511 NIRC196 MS.RASHIKAKHANDAL ACS-51512 NIRC197 MS.BHAGYASHRIBALODIYA ACS-51513 NIRC198 MR.RAHULTANWAR ACS-51514 NIRC199 MS.JYOTI ACS-51515 NIRC200 MS.RINKIRANI ACS-51516 NIRC201 MS.AASTHADUGGAL ACS-51517 NIRC202 MR.LOKENDERSINGHSHEKHAWAT ACS-51518 NIRC203 MS.ALPANAJAIN ACS-51519 NIRC204 MR.MANANKHADRIA ACS-51520 NIRC205 MR.LOKESHKUMAR ACS-51521 NIRC206 MS.RIDDHIKHATRI ACS-51522 NIRC207 MS.PAYALAGARWAL ACS-51523 NIRC208 MR.ABHISHEKMISRA ACS-51524 NIRC209 MS.SHALINICHHONKAR ACS-51525 NIRC210 MS.UMAGAYATHRIVENKATAVEMPATA ACS-51526 SIRC211 MS.VSANTHIYA ACS-51527 SIRC212 MS.SHRUTIBHIDE ACS-51528 SIRC213 MS.PRIYANKASPAWAR ACS-51529 SIRC214 MR.ANUPASHOKMALASHETTI ACS-51530 SIRC

215 MS.AMRUTHABHASKAR ACS-51531 SIRC216 MR.RUPANIDHAVALVIRAL ACS-51532 WIRC217 MR.HARDIKJAYANTILALVADGAMA ACS-51533 WIRC218 MR.ANKUSHUTTAMRAOPATIL ACS-51534 WIRC219 MS.KIRTIARVINDBAVISKAR ACS-51535 WIRC220 MR.NIKHILDEOKINANDANJAJODIA ACS-51536 WIRC221 MS.PURNIMAVINODTRIPATHI ACS-51537 WIRC222 MR.VAIBHAVVILASDANDAWATE ACS-51538 WIRC223 MS.HIRALMADHUSUDANASHAR ACS-51539 WIRC224 MS.DIMPLESUNILGANDHI ACS-51540 WIRC225 MS.NIKITAPAWANAGRAWAL ACS-51541 WIRC226 MS.HARSHITABUTTAN ACS-51542 SIRC227 MS.LEKHARAVINDRAMAHAJAN ACS-51543 WIRC228 MS.SAYLIPRAVINDANGE ACS-51544 WIRC229 MS.PALLAVIRAJKUMARSHAMBHUWANI ACS-51545 WIRC230 MR.HRISHIKESHDEEPAKYADAV ACS-51546 WIRC231 MS.PARIBHARATVAYA ACS-51547 WIRC232 MR.AJINKYAANUPDHARANGAONKAR ACS-51548 WIRC233 MS.KAMINIPARSOTTAMBHAIPATEL ACS-51549 WIRC234 MS.SURBHIAGRAWAL ACS-51550 WIRC235 MR.VIJAYKUMARDIPAKKUMARTHAKKAR ACS-51551 WIRC236 MS.KALPITADAMODARPOOJARY ACS-51552 WIRC237 MR.DHARANANUPGUDHKA ACS-51553 WIRC238 MR.MITULSURESHBHAIBHALANI ACS-51554 WIRC239 MR.BHUMITMAHENDRADHAROD ACS-51555 WIRC240 MS.PRIYASANJAYMAHESHWARI ACS-51556 WIRC241 MS.NOORIYAHKARIMI ACS-51557 WIRC242 MS.SAYALISUBHASHDEHERKAR ACS-51558 WIRC243 MS.MEENALSURESHBARHATE ACS-51559 WIRC244 MS.SONALICHETANGOR ACS-51560 WIRC245 MS.SAPNAANILKUMARBHAGCHANDANI ACS-51561 WIRC246 MS.KOMALRAJESHSHARMA ACS-51562 WIRC247 MS.PRANJALIDIxIT ACS-51563 WIRC248 MR.DEEPESHVIRESHWARSINGH ACS-51564 WIRC249 MR.TAHAZOHARMATKAWALA ACS-51565 WIRC250 MS.KRUPAATULGANDHI ACS-51566 WIRC251 MR.JKCHAKRAVARTHY ACS-51567 SIRC252 MR.RABIRANJANROUT ACS-51568 EIRC253 MR.PRADEEPKUMARSHARDA ACS-51569 WIRC254 MS.SHEMALATHA ACS-51570 SIRC255 MR.ANIKETARUNKOKANE ACS-51571 WIRC256 MS.ANVESHADALMIA ACS-51572 NIRC257 MR.HEMANTRAJAWAT ACS-51573 NIRC258 MS.GARIMAPALIWAL ACS-51574 NIRC259 MS.BIMALPREETKAUR ACS-51575 NIRC260 MS.AGARWALNIKITARAJENDRA ACS-51576 WIRC261 MS.SHEETALRAMKISHANMUNDHRA ACS-51577 WIRC262 MS.NEHAJALAN ACS-51578 EIRC263 MS.MNITHYA ACS-51579 SIRC264 MR.LALITHGUPTA ACS-51580 EIRC265 MR.ALOKKUMAR ACS-51581 NIRC266 MR.VISHALMALHOTRA ACS-51582 EIRC267 MR.MUKUNDKUMARJHA ACS-51583 EIRC268 MR.HARSHALKUMARAGARWAL ACS-51584 NIRC269 MR.RAVITKYAL ACS-51585 EIRC

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270 MR.MOHITKHANNA ACS-51586 EIRC271 MS.KUSUMMASKARA ACS-51587 EIRC272 MR.RAJATARORA ACS-51588 EIRC273 MS.GUDDYMISHRA ACS-51589 EIRC274 MR.MOHITARORA ACS-51590 EIRC275 MS.SHALINISAHANI ACS-51591 EIRC276 MR.VIKKYKUMARJHA ACS-51592 EIRC277 MS.SRISHTISUREKA ACS-51593 EIRC278 MS.NIKITAGOEL ACS-51594 EIRC279 MS.DIMPLECHAUHAN ACS-51595 EIRC280 MR.SAURABHSHUBHAM ACS-51596 NIRC281 MR.VAIBHAVGULIANI ACS-51597 NIRC282 MR.SUNITSHARMA ACS-51598 NIRC283 MS.SANDHYARAWTANI ACS-51599 NIRC284 MR.PUJANPUNYANI ACS-51600 NIRC285 MR.VINEETBACHHAWAT ACS-51601 NIRC286 MR.ABHIJEETVERMA ACS-51602 NIRC287 MS.CHETNASHOOR ACS-51603 NIRC288 MS.PALLAVISRIVASTAVA ACS-51604 NIRC289 MS.JOITYPANT ACS-51605 NIRC290 MS.SAMEEKSHASHARMA ACS-51606 NIRC291 MR.JEETKUMAR ACS-51607 NIRC292 MS.GUNJAGARG ACS-51608 NIRC293 MR.PUSHPENDRASINGH ACS-51609 NIRC294 MR.RAJATRAJAKOTHARI ACS-51610 NIRC295 MR.PRAVEENKUMAR ACS-51611 NIRC296 MS.SIDDHIBIRANI ACS-51612 NIRC297 MR.AJAYSHARMA ACS-51613 NIRC298 MS.SUGANDHAGOYAL ACS-51614 NIRC299 MS.PARULCHAWLA ACS-51615 NIRC300 MS.DEEPALITOTAWAT ACS-51616 NIRC301 MS.KAJALGUPTA ACS-51617 NIRC302 MR.PUNEETBAJAJ ACS-51618 NIRC303 MR.RUPESHLOHIYA ACS-51619 NIRC304 MR.HARRYVERMA ACS-51620 NIRC305 MR.JITENDRAKUMARRATHI ACS-51621 NIRC306 MS.JAYASHARMA ACS-51622 NIRC307 MR.ANUJVAID ACS-51623 NIRC308 MS.RUCHIKACHANDAK ACS-51624 NIRC309 MS.LAKSHAMAMANNI ACS-51625 SIRC310 MR.CHIRAGK ACS-51626 SIRC311 MS.RADHIKAMAHESHWARI ACS-51627 SIRC312 MS.PARVANIRADHIKAJAGDISHKUMAR ACS-51628 WIRC313 MS.SNEHASHRIDAYALSONI ACS-51629 WIRC314 MR.GOVINDMUKUNDMANE ACS-51630 WIRC315 MS.SHREYAMUKUNDPATHAK ACS-51631 WIRC316 MR.ROSHANGULABRAOKALMEGH ACS-51632 WIRC317 MR.AJINKYAPRADEEPNAMJOSHI ACS-51633 WIRC318 MS.SAMINABEE ACS-51634 WIRC319 MS.RADHIKAPATKAR ACS-51635 WIRC320 MR.MOIZALI ACS-51636 WIRC321 MR.RAMRAJSINGHTHAKUR ACS-51637 WIRC322 MS.DAVEKRUPAKIRANKUMAR ACS-51638 WIRC323 MR.SSUNDARARAJAN ACS-51639 SIRC324 MR.SUBRATABHATTACHARJEE ACS-51640 EIRC

325 MS.CHAURASIAARTIAYODHYAPRASAD ACS-51641 WIRC326 MS.ANUSHREEJAIN ACS-51642 NIRC327 MS.JYOTIJHA ACS-51643 EIRC328 MR.RAGHAVGARG ACS-51644 EIRC329 MR.VAIBHAVGUPTA ACS-51645 NIRC330 MS.SHEFALIDUA ACS-51646 NIRC331 MR.DIWAKARAGRAWAL ACS-51647 NIRC332 MS.AKARSHIJAIN ACS-51648 NIRC333 MS.NISHASINGHANIA ACS-51649 NIRC334 MS.MANSIBAJAJ ACS-51650 NIRC335 MS.DIKSHASONI ACS-51651 NIRC336 MR.CHAVASAIKRISHNA ACS-51652 SIRC337 MS.ANISHASUNILATTAL ACS-51653 WIRC338 MS.MADHUBABULALMAHESHWARI ACS-51654 WIRC339 MS.POOJAJITENDRAVAKHARIA ACS-51655 WIRC340 MR.SIDDHARTHKUMAR ACS-51656 WIRC341 MS.KALPANAUDAIKUMARI ACS-51657 WIRC342 MS.NIKITAVIJAYSALPE ACS-51658 WIRC343 MS.NEETUTHAWARDASLALWANI ACS-51659 WIRC344 MS.POOJAVERMA ACS-51660 WIRC345 MR.ISHANMILINDPADHYE ACS-51661 WIRC346 MR.PRANAVSHRIPADPATHAK ACS-51662 WIRC347 MS.AVANIKARANSINGHCHAUDAHRI ACS-51663 WIRC348 MR.RAVIPRAKASH ACS-51664 EIRC349 MS.ARANITABASU ACS-51665 EIRC350 MS.ANUSRITADAWN ACS-51666 EIRC351 MR.GOURAVKUMARAGARWAL ACS-51667 EIRC352 MS.ROOPALTOSHNIWAL ACS-51668 EIRC353 MS.MINUAGARWAL ACS-51669 EIRC354 MS.POOJASAGARTIWARI ACS-51670 WIRC355 MR.ARPITJAIN ACS-51671 NIRC356 MS.MEGHABAHEL ACS-51672 NIRC357 MR.TARUNPRABHATVARSHNEYA ACS-51673 NIRC358 MR.AJAYKUMARCHOUDHARY ACS-51674 NIRC359 MR.HEMANTKUMARMANGAL ACS-51675 NIRC360 MS.DIKSHAGARG ACS-51676 NIRC361 MS.PURVAJAIN ACS-51677 NIRC362 MR.VISHALARORA ACS-51678 NIRC363 MS.SUMANGUPTA ACS-51679 NIRC364 MR.PUSHPAKHARSH ACS-51680 NIRC365 MR.SHOBHITSHARMA ACS-51681 NIRC366 MS.RITUSHARMA ACS-51682 NIRC367 MR.SACHINKESHARWANI ACS-51683 NIRC368 MR.VAIBHAVVIJH ACS-51684 NIRC369 MS.SUPREENATAGRA ACS-51685 NIRC370 MS.MEGHNAGOVIL ACS-51686 NIRC371 MS.MONIKATANK ACS-51687 NIRC372 MR.BHARAT ACS-51688 NIRC373 MS.SAMLYAGRAWAL ACS-51689 NIRC374 MR.ROHITKUMARBANSAL ACS-51690 NIRC375 MS.SALONIKHANNA ACS-51691 NIRC376 MS.RACHAITAMADANRAIKAR ACS-51692 SIRC377 MS.KAVERIAGARWAL ACS-51693 SIRC378 MR.RAGHAVENDRASHIVANANDVERNEKAR ACS-51694 SIRC379 MS.SANTOSHDHANDHANIA ACS-51695 SIRC

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*RESTOREDFROM01.05.2017TO31.05.2017

380 MR.DEEPMAHENDRASHAH ACS-51696 WIRC381 MR.ANURAGDINESHSHARMA ACS-51697 WIRC382 MS.SHRUTINARENDRAAGARWAL ACS-51698 WIRC383 HEMANTKARLEKAR ACS-51699 WIRC384 MS.KRITHIKARAGHU ACS-51700 WIRC385 MS.ANUSHREEJAIN ACS-51701 WIRC386 MS.AARTINANJIBHAIPARMAR ACS-51702 WIRC387 MR.HEMANTKISANAUTI ACS-51703 WIRC388 MR.SHRIKANTTANAJICHAVAN ACS-51704 WIRC389 MR.PALASHJAIN ACS-51705 WIRC390 MS.DEEPIKADEVJIOBHAIPATEL ACS-51706 WIRC391 MS.ZILLPANKAJSHAH ACS-51707 WIRC392 MS.KOMALRAJESHJAIN ACS-51708 WIRC393 MS.CHETALICHANDRAPRAKASHJAIN ACS-51709 WIRC394 MS.RITIKAAGRAWAL ACS-51710 WIRC395 MS.VIDULAVIJAYKULKARNI ACS-51711 WIRC396 MR.RAHULKUMARJAIN ACS-51712 WIRC397 MS.MANISHASHARMA ACS-51713 EIRC398 MS.SWEETYSINGH ACS-51714 EIRC399 MR.ANKITTYAGI ACS-51715 NIRC400 MS.PUSHPA ACS-51716 NIRC401 MS.SURBHI ACS-51717 NIRC402 MS.NEHACHATURVEDI ACS-51718 WIRC403 MR.SUNILSHARMA ACS-51719 WIRC404 MS.PRIYANKASHARMA ACS-51720 NIRC405 MS.PREETIAGRAWAL ACS-51721 NIRC406 MS.NEETANANDWANI ACS-51722 NIRC407 MS.MEENAKSHISACHDEVA ACS-51723 NIRC408 MR.AASHISHSHARMA ACS-51724 NIRC409 MR.GAURAVTHAKUR ACS-51725 NIRC410 MS.DEEPANSHIGARG ACS-51726 NIRC411 MS.HANNAPNAZIR ACS-51727 SIRC412 MR.KADAMBISREENIVASABHAGAVAN ACS-51728 SIRC413 MR.ARUNKUMARM ACS-51729 SIRC414 MR.MURALIBS ACS-51730 SIRC415 MS.NEELAMBHARDWAJ ACS-51731 WIRC416 MR.VIVEKSURYAKANTMUDHOLKAR ACS-51732 WIRC417 MS.RASHMIRAMESHBHUTADA ACS-51733 WIRC418 MS.BANSIMUKESHMEHTA ACS-51734 WIRC419 MS.PRERANARAMPRAKASHJOSHI ACS-51735 WIRC420 MS.MITALIPRAKASHPITRODA ACS-51736 WIRC421 MR.NILESHBAHETY ACS-51737 EIRC422 MR.BSNANJUNDASWAMY ACS-51738 SIRC423 MS.GITANJALIAMITTELANGE ACS-51739 WIRC424 MS.RENUYADAV ACS-51740 NIRC425 MR.AKASHHAMIRBASIA ACS-51741 EIRC426 MS.RASHMISARAF ACS-51742 EIRC427 MR.PARAMJOTSINGHVIRDI ACS-51743 EIRC428 MS.NIKITACHOURASIA ACS-51744 EIRC429 MS.PAYALSENGUPTA ACS-51745 EIRC430 MS.NEHATANWAR ACS-51746 NIRC431 MR.ANKITOBEROI ACS-51747 NIRC432 MS.RASHIMIRANI ACS-51748 NIRC433 MS.AANCHALGUPTA ACS-51749 NIRC434 MR.MOHITBHATIA ACS-51750 NIRC

435 MR.AVINASHKUMARSAINI ACS-51751 NIRC436 MS.SAROJSIDH ACS-51752 NIRC437 MS.PRAGATISHARMA ACS-51753 NIRC438 MS.HONEYDEEPKAUR ACS-51754 NIRC439 MS.GEETLAKHOTIA ACS-51755 NIRC440 MR.NAGAMALLASRICHARAN ACS-51756 SIRC441 MS.ANKITARAMESHGOKANI ACS-51757 WIRC442 MR.SANKETBHUPENDRABHAITRIVEDI ACS-51758 WIRC443 MR.MIHIRHITESHPATEL ACS-51759 WIRC444 MS.DEEPIKAUMESHAGRAWAL ACS-51760 WIRC445 MS.RADHIKADHOOLSHANKARSHRIMALI ACS-51761 WIRC446 MS.NIKITADAVE ACS-51762 WIRC447 MR.KAPILGOPLANI ACS-51763 WIRC448 MS.JYOTIRAVINDRAMULEY ACS-51764 WIRC449 MR.PRAVEENKUMARP ACS-51765 SIRC

RESTORED*SL. NO.

A/F MEM. NO.

MEM. NAME

PLACE

1 A 42316 SAKSHIJAIN NIRC2 A 28595 RAJESHCHOUDHARY NIRC3 A 23007 SOUMITHKUMARSIKINDERPURKAR SIRC4 A 30053 RATNESHKUMARPANDEY SIRC5 A 17737 RAKESHPODDAR WIRC6 F 4516 SARABJITSINGH NIRC7 A 32274 RUPANSHIDUBEY NIRC8 A 40245 SARITACHAURASIA NIRC9 A 25001 AKHLAQUEAHMAD EIRC10 A 37789 MEENALIJAIN NIRC11 A 15337 YSURENDER SIRC12 A 11716 ASHISHARVINDBHAISHAH WIRC13 A 39065 ADITYAKUMARPANDEY NIRC14 F 5780 KANIKAVERMA NIRC15 A 14520 DEEPAKBHIMRAOSHADAMBIKAR WIRC16 A 10717 NITINAGARWAL F/NIRC17 A 30960 SUGANDHATRIVEDI NIRC18 A 6960 NVENKATESWARAN SIRC19 A 15565 SUDARSHANMOHATTA WIRC20 A 9709 SANJAYMAHAJAN NIRC21 A 13390 VIJAYKANTASIJA NIRC22 A 20042 MANDVIHARISHANKARSHARMA SIRC23 A 13959 PRKANNAN SIRC24 A 31047 SANKETSRIVASTAVA NIRC25 F 2875 SANDEEPAHUJA NIRC26 A 37241 SHIKHAMAHESHWARI NIRC27 A 37202 TANISHKAGUPTA NIRC28 A 38243 PRIYACHAKRABORTI NIRC29 A 35478 SRINIVASASARMARANI SIRC30 A 16481 CRAJENDRAVARMA SIRC31 A 16384 ANILKUMARMALIK NIRC32 F 4685 BHUPESHANAND NIRC33 A 30659 SHUBHANGIMEHTA NIRC34 A 23052 SHRADHASHROFF EIRC35 A 23945 VIKASHKUMARMISRA NIRC36 A 29906 KISHOREPITCHUMANIIYER WIRC

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*ISSUEDDURINGTHEMONTHOFMAY,2017

37 A 26945 JISHAGOPAL SIRC38 F 6157 PARULDUA SIRC39 A 32272 VISHALKHERA NIRC

CERTIFICATE OF PRACTICEISSUED*

SI. NO.

NAME MEMBNO

REGN COP NO.

1 MS.NEHAKAUSHALGOENKA ACS-23323 EIRC 18442 2 MS.NISHANISHITNANDWANA ACS-49762 NIRC 18443 3 MSPOORNIMAMOOLE ACS-19990 SIRC 18444 4 MS.HEENAJAIN ACS-22738 NIRC 18445 5 MR.DHIRAJKUMARJHA ACS-29838 NIRC 184466 MR.RAGHAVR ACS-31110 SIRC 18447 7 MS.RUCHISUNILBHANDARI ACS-40214 WIRC 18448 8 MR.DIVYANSHUSAHNI ACS-42200 NIRC 18449 9 MR.DHARAMPRAFULKUMARJOSHI ACS-42717 WIRC 18450

10 MS.BHUMIKAJOGENDRASINGHRAJPUT ACS-42774 WIRC 18451 11 MS.NAMRATAJAIN ACS-43850 WIRC 18452 12 MS.POOJASONI ACS-44777 WIRC 18453 13 MR.UMESHVIDYADHARCHINCHAWADE ACS-45289 WIRC 18454 14 MR.LELECHINMAYMOHAN ACS-45864 WIRC 18455 15 MR.RAHULGIRDHARILALAGRAWAL ACS-48831 WIRC 1845616 MR.CHIRAYUNAYANKUMARSHAH ACS-49343 WIRC 18457 17 MS.BHARTIDHINGRA ACS-49854 NIRC 18458 18 MS.SHIKHAKATHURIA ACS-50496 NIRC 18459 19 MS.MADHURI ACS-50640 NIRC 1846020 MR.VINITRAMANPATIL ACS-50816 WIRC 1846121 MR.GAURAVSRIVASTAVA ACS-50828 NIRC 1846222 MR.CHIRAG ACS-50931 NIRC 1846323 SH.SVKULKARNI FCS - 4903 WIRC 1846424 SHRAMITRASTOGI FCS-6952 NIRC 1846525 MS.DIPIKAJAIN ACS-50343 EIRC 1846626 MR.JAHANGEERSHAIK ACS-50449 SIRC 1846727 MR.DIPAKKUMARMOHANLALSANGHANI ACS-50568 WIRC 1846828 MS.NAVEENAPTHAMPI ACS-50675 SIRC 1846929 SH.DEVINDERSINGHARORA FCS - 849 NIRC 18470 30 MS.MINAKSHIBAJORIA ACS-29114 EIRC 18471 31 MS.AKANKSHAKHANNA ACS-35861 NIRC 18472 32 MR.ANANDLAKHOTIA ACS-44367 EIRC 18473 33 MR.DEEPAKPATHAK ACS-48339 NIRC 18474 34 MS.TARUJAIN ACS-49813 WIRC 18475 35 MR.JEEVANKUMAR ACS-50761 NIRC 1847636 MS.SAKSHIRANI ACS-43692 NIRC 18477 37 MS.RUSHITAJAIN ACS-46357 NIRC 18478 38 MS.NISHTHAMAHESHWARI ACS-48525 NIRC 18479 39 MS.KOMALARORA ACS-50203 NIRC 18480 40 SH.SUPRIYOCHATTERJEE ACS-25127 EIRC 18481 41 SH.AMITUTTAMSURASE ACS-26485 WIRC 18482 42 MR.JIGARKANAKCHANDRATRIVEDI ACS-46488 WIRC 18483 43 MR.RAHULRUPLALSHAH ACS-48998 WIRC 18484 44 MS.PRIYANKAVIJAYKUMARSINGRODIA ACS-50300 WIRC 18485 45 MR.HEMANTNAYAK ACS-50235 NIRC 1848646 MR.RAHULKUMARBANSAL ACS-50382 NIRC 18487 47 MR.GAURAVGOYAL ACS-50420 WIRC 18488

48 MR.MURALIGR ACS-50790 SIRC 18489 49 MR.NILESHSUBHASHAWALE ACS-51009 WIRC 18490 50 MR.GANESHDATTATRAYAJOSHI ACS-51041 WIRC 18491 51 MR.ABHAYKUMAR ACS-50627 NIRC 18492 52 SH.SANDEEPAGGARWAL FCS - 3979 NIRC 18493 53 SH.MANISHGUPTA FCS - 7718 NIRC 18494 54 MR.VAIBHAVYASHWANTJACHAK FCS - 8821 WIRC 18495 55 MS.DEEPTI ACS-25442 NIRC 1849656 MS.GUNJANARORA ACS-34046 EIRC 18497 57 MR.UTTAMANURAG ACS-40683 EIRC 18498 58 MS.MOHANAPRIYAM ACS-47463 SIRC 1849959 MR.VIJAYAKUMARCHOWTISHIVANANDA ACS-47544 SIRC 18500 60 MR.DHRUVALALKESHBHAIPATEL ACS-47588 WIRC 18501 61 MR.RAJKUMARSINGH ACS-48882 NIRC 18502 62 MR.YACOBPO ACS-50329 SIRC 18503 63 MR.ROHITRAJENDRAGANDHI ACS-50427 WIRC 18504 64 MS.ARCHANAKUMARI ACS-50450 EIRC 18505 65 MS.RUGVEDASUDHIRWAGH ACS-50612 WIRC 1850666 MS.PRANITAJHAWAR ACS-50664 NIRC 18507 67 MS.BANGALORERAMESHRAKSHA ACS-50949 SIRC 18508 68 MR.SAURABHJAIN ACS-50961 EIRC 18509 69 MS.SONAMMINOCHA ACS-50989 NIRC 18510 70 MR.SUSHILKUMARRAMCHANDRAPATIL ACS-51006 WIRC 18511 71 SH.SHARVANKUMARBANSAL FCS - 5810 NIRC 18512 72 MR.PREMPYARATIWARI ACS-39449 NIRC 18513 73 MR.VIVEKASHWINMARU ACS-39559 WIRC 18514 74 MS.SULAKxIAGARWAL ACS-41771 NIRC 18515 75 MS.NISHAADWANI ACS-43786 NIRC 1851676 MS.DIKSHITABENCHITRANJANKUMARPANDIT ACS-46057 WIRC 18517 77 MS.LEKSHMINRAJ ACS-49158 SIRC 18518 78 MS.PRITHADHANDHANIA ACS-49631 EIRC 18519 79 MS.SANJANAMANAKBOHARA ACS-49785 NIRC 18520 80 MS.NIKITASAHA ACS-50145 EIRC 18521 81 MR.AKASHJAISWAL ACS-50257 NIRC 18522 82 MR.JENISHSANJAYBHAIDOSHI ACS-50447 WIRC 18523 83 MS.POOJABANSAL ACS-50458 EIRC 18524 84 MS.SAUMYAAWASTHI ACS-50497 NIRC 18525 85 MS.HIMANSHICHAUDHARY ACS-50865 NIRC 1852686 MS.TEJASWINIMANCHALA ACS-51047 SIRC 18527 87 SH.SATYENDUPATTNAIK FCS-7736 NIRC 18528 88 SH.ARJUNSURYANARAYANAMANCHI FCS - 8887 WIRC 18529 89 MSMANDVIHARISHANKARSHARMA ACS-20042 SIRC 18530 90 MR.MORLACHAITANYABABU ACS-48953 SIRC 18531 91 MS.POOJATAPANKENI ACS-50880 WIRC 18532 92 MR.ZADDUNAGIREDDY ACS-42757 SIRC 18533 93 MR.PRAKASHCHANDER FCS - 8990 NIRC 18534 94 SH.MANDARMADHAVRANADE ACS-19022 WIRC 18535 95 MS.MANASIABHAYSATHE ACS-39771 WIRC 1853696 MS.SHILPI ACS-41558 NIRC 18537 97 MR.PRASADSHAILESHDAVDA ACS-43915 WIRC 18538 98 MS.PUJANNARAYANLALRAVAL ACS-49420 WIRC 18539 99 MS.NIDHINATANI ACS-49860 NIRC 18540

100 MS.SURANYASUJITH ACS-50685 SIRC 18541 101 MR.PALASHJAIN ACS-50724 WIRC 18542 102 MR.NEERAJKUMARJAIN ACS-50863 NIRC 18543 103 MR.HARSHITRASTOGI ACS-50929 NIRC 18544 104 MR.RASBIHARISHARMA ACS-50967 NIRC 18545

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* CALCELLEDDURINGTHEMONTHOFMAY,2017

105 MR.RAHULINDERSINGHRATHORE ACS-50710 WIRC 18546106 MS.BHAVINISHAILESHKUMARRAJANI ACS-51162 WIRC 18547 107 MS.ANURADHASHASHIRUNGTA ACS-40889 WIRC 18548 108 MS.KHYATIGIRISHBHAISHAH ACS-42442 WIRC 18549 109 MS.SONALIRAWAT ACS-49695 NIRC 18550 110 MS.RACHNAARORA ACS-33734 NIRC 18551 111 MS.DEEPIKADUTT ACS-33823 NIRC 18552 112 MR.SRINIVASASARMARANI ACS-35478 SIRC 18553 113 MR.NARENDERKUMAR ACS-40099 NIRC 18554 114 MS.AMISHA ACS-49300 NIRC 18555 115 MR.VINEETRAMOOPAREEK ACS-49730 WIRC 18556116 MS.SEEMAVYAS ACS-50041 NIRC 18557 117 MR.NADEEMAHMEDSIDDIQUE ACS-50369 EIRC 18558 118 MR.RITESGOEL ACS-50530 EIRC 18559 119 MR.VHSNAGASARMAITIKALA ACS-50736 SIRC 18560120 MR.ROHITNAWAL ACS-50842 NIRC 18561121 MS.PRIYAABHISHEKTAPARIA ACS-50884 WIRC 18562122 MS.ASMITANIRAVKATHROTIA ACS-51014 WIRC 18563123 MS.YOGITADADHICH ACS-51057 EIRC 18564124 MS.SONIYAAGRAWAL ACS-51116 NIRC 18565125 MR.RAVEESHKUMAR ACS-51121 SIRC 18566126 MR.PRIYAMGUPTA ACS-51177 NIRC 18567127 MR.RAVISHANKAR ACS-40312 NIRC 18568128 MS.ROMA ACS-41936 NIRC 18569129 MS.PADMAJAPRASHANTKULKARNI ACS-45101 WIRC 18570 130 MR.THARURAJESHLAxMAN ACS-46513 WIRC 18571 131 MS.RACHANABAWASKAR ACS-50134 WIRC 18572 132 MS.PRIYANKAKHURANA ACS-50930 NIRC 18573 133 MR.THUMMARJAYESHVINUBHAI ACS-51028 WIRC 18574 134 MS.DEWANSHIBARYA ACS-51067 EIRC 18575 135 MS.MAITRIBHAT ACS-51126 SIRC 18576136 MR.AYUSHSINHA ACS-51207 NIRC 18577 137 MS.NISHITALWAR ACS-24056 NIRC 18578 138 MS.BHARTIBABULALJAIN ACS-36139 NIRC 18579 139 MS.MEGHAHARLALKA ACS-39092 EIRC 18580 140 MS.SWATISHARMA ACS-42834 WIRC 18581 141 MR.RAJKUMARCHANDULALGUPTA ACS-43015 WIRC 18582 142 MS.PREETIKHANDELWAL ACS-47320 EIRC 18583 143 MS.MEGHATAYAL ACS-49301 NIRC 18584 144 MR.ABHISHEKJAIN ACS-50249 NIRC 18585 145 MS.RIDDHIBHADRESHRAJYAGURU ACS-50303 NIRC 18586146 MR.MANOJSHARMA ACS-50537 NIRC 18587 147 MS.AALIYAHBASHIR ACS-50650 NIRC 18588 148 MR.SHRAWANKUMARJHA ACS-51080 EIRC 18589 149 MR.SUMITKUMAR ACS-51197 NIRC 18590 150 MR.SURAJBHARDWAJ ACS-51215 NIRC 18591 151 MR.AAGATSINGH ACS-51268 NIRC 18592 152 MS.KOMALHARDIKKUMARPATEL ACS-51302 WIRC 18593 153 SH.SANJAYKUMARAGGARWAL FCS - 4059 NIRC 18594 154 MS.VIBHAKUMARIRAMESHKUMARDAVE ACS-39410 WIRC 18595 155 MS.ANKITAHANSMUKHDASSETHI ACS-42466 WIRC 18596156 MS.MAHIMAAGRAWAL ACS-46564 NIRC 18597 157 MR.CHETANKUMARASHOKA ACS-47564 SIRC 18598 158 MS.BHAGYASHREELALITNAWANI ACS-48988 WIRC 18599 159 MS.SHIKHAJAGDISHBAJAJ ACS-51031 WIRC 18600160 SH.ROHITSHRIPADKARULKAR FCS - 7155 WIRC 18601161 MR.PRABHAKARTIWARI ACS-32733 SIRC 18602

162 MR.VICKEYKANAIYALALPATEL ACS-45565 WIRC 18603163 MS.PUJAAGARWAL ACS-47206 EIRC 18604164 MR.ATULRADHESHYAMJAISWAL ACS-50308 WIRC 18605165 SH.AJAYKHANDELWAL ACS-22362 NIRC 18606166 MR.SACHINVISHWASKATKAR ACS-39421 WIRC 18607167 MR.GAURAVSOMABHAIMAHYAVANSHI ACS-44895 WIRC 18608168 MR.AMITKUMARJAIN ACS-49531 NIRC 18609169 MR.RAHULSHARMA ACS-49969 NIRC 18610170 MR.MANISHKUMARSINGH ACS-50969 NIRC 18611171 MR.ADITYAKESHARWANI ACS-51208 NIRC 18612172 MS.NAVITHADEVENDRA ACS-43613 SIRC 18613173 MR.TEJASASHOKSHINGEWAR ACS-50698 WIRC 18614174 SH.VRAVIKUMAR FCS-4568 WIRC 18615175 MR.PRERAKPIYUSHKUMARTHAKKAR ACS-50940 WIRC 18616176 MR.KIRANKUMARJAGDISHKUMARVAGHELA ACS-39229 WIRC 18617177 MS.SHWETA ACS-51206 NIRC 18618178 MR.VIKASHKUMARSINGH ACS-51176 EIRC 18619179 MS.KHUSHIRAJENDRABHATT ACS-51011 WIRC 18620180 MS.JIMISHAPARTHDAWDA ACS-43853 WIRC 18621181 SH.SHRIDARVIJAYPHADKE FCS-7867 WIRC 18622182 SH.ANANTSHRIPADGUDE ACS-7219 WIRC 18623183 MRS.HIMALITEJASTRIVEDI ACS-32336 WIRC 18624184 MS.NANDITABANSAL ACS-33790 NIRC 18625185 MR.AYUSHJAIN ACS-39017 NIRC 18626186 MR.VIKASHKUMARMAHNOT ACS-39571 EIRC 18627187 MR.VIKASHJAIN ACS-48913 NIRC 18628188 MS.PATELANISHAINDRAVADANBHAI ACS-49153 WIRC 18629189 MS.SIDHIWADHWA ACS-49651 NIRC 18630190 MR.DHANANJAYSHAMKULKARNI ACS-50806 WIRC 18631191 MR.SAVALIYANILESHKUMARSHANTIBHAI ACS-51007 WIRC 18632192 MR.ASHISHSANJEEVJOSHI ACS-51139 WIRC 18633193 MS.MAYURIBIPINBHAIRUPARELIYA ACS-51422 WIRC 18634194 MS.NIKITAGANDHI ACS-31075 NIRC 18635195 MS.MSHUBANGI ACS-38160 SIRC 18636196 MS.SONAMJAIN ACS-41862 NIRC 18637197 MS.NAMRATARAHULHIREMATH ACS-43265 WIRC 18638198 MS.RITIKAKHANNA ACS-46440 NIRC 18639199 MR.PARTHPARESHBHAISHAH ACS-48591 WIRC 18640200 MS.JASSICA ACS-50973 NIRC 18641201 MR.JEEVANKUMARJHA ACS-51065 EIRC 18642202 MS.KRUPABENKAMLESHBHAISHAH ACS-51335 WIRC 18643

CANCELLED* SL.No

NAME MEMB NO

COP NO

REGN

1 MS.AARTIGOSWAMI ACS32207 11882 NIRC2 MS.NIDHISHARMA ACS25505 17442 NIRC3 MR.SANJIVVIJAYNAIDU ACS44728 16578 WIRC4 MS.TARUNAKUMARI

KHOKHAWATACS45592 16621 NIRC

5 MS.DEEPIKAKHANDELWAL ACS33178 12755 NIRC6 MS.USHAN ACS35140 13023 SIRC7 MR.YOGESHDATTARAMWAINGANKAR ACS39914 14879 WIRC8 MR.SOMASUNDARAM

SIVAGURUNATHANACS41569 15489 SIRC

9 MR.KAMALRAJ ACS35609 15478 EIRC10 MR.RISHABHARORA ACS41124 15649 NIRC

NEW

S F

RO

M T

HE IN

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*ADMITTEDDURINGTHEMONTHOFMAY,2017

EXTENSION IN THE LAST DATE FOR PAYMENT OF ANNUAL MEMBERSHIP AND CERTIFICATE OF PRACTICE FEE FOR THE YEAR 2017-18

The annual membership fee and certificate of practice fee for the year 2017-2018 has become due for payment w.e.f. 1st April, 2017. The last date for the payment of fee was 30thJune,2017whichhasnowbeenextendedupto31stAugust,2017.The membership and certificate of practice fee payable is as follows:Particulars Associate

(admitted till 31.03.2015)

Associate(admitted on or after 01.04.2015)

Fellow

AnnualMembershipfee

Rs.2500 Rs.1500 Rs.3000

Entrancefee Rs.2000 Rs.2000 Rs.2000Restorationfee Rs.250 Rs.250 Rs.250Certificate of Practicefee

Rs.2000 Rs.1500 Rs.2000

Amemberwhoisoftheageofsixtyyearsoraboveandisnotin any gainful employment or practice can claim 50%concession in the payment of Associate/Fellow AnnualMembershipfeeandamemberwhoisof theageofseventyyears or above and is not in any gainful employment orpracticecanclaim75%concessioninthepaymentofAssociate/Fellow Annual Membership fee subject to the furnishing ofdeclaration to that effect.The certificate of practice fee must be accompanied by a declaration in form D duly completed in all respects andsigned. The requisite form ‘D’ is available on thewebsite ofInstitute www.icsi.edu MODE OF REMITTANCE OF FEEThe fee can be remitted by way of:(i) Online(throughpaymentgatewayoftheInstitute’swebsite

(www.icsi.edu) (ii) Cash/Cheque at par/Demand draft/Pay order payable at

NewDelhi(indicatingonthereversenameandmembershipnumber) drawn in favour of ‘The Institute of Company Secretaries of India’ at the Institute’s Headquarter orRegional/Chapteroffices.

For queries, if any, the members may please write to Mr.Jitendra Kumar, Executive Assistant at email id [email protected]

Extension of last date of payment of the Annual Subscription for Licentiate for 2017-18

The payment of Licentiate Subscription for the year 2017-18 became due for payment w.e.f. 1st April, 2017. The last date for payment of the same was 30th June, 2017 which has now been extended upto 31st August, 2017. The annual Licentiate subscription payable is Rs.1,000/- per year.

The Licentiates who want to renew their enrollment as Licentiate are requested to remit at the Institute’s Headquarters or Regional/ Chapter offices a sum of Rs.1000/- (Rupees One thousand only) through Cash/Demand Draft payable at New Delhi drawn in favour of “The Institute of Company Secretaries of India” indicating their Name and Licentiate number on the reverse of the Cash/ Demand Draft and the details of remittance may please be intimated at email id [email protected] . The payment may please be made so as to reach the Institute on or before 31st August, 2017.In case the Licentiate subscription for 2017-18 has already been remitted, please send the particulars of the remittance at email Id [email protected] to link up the same and update the records.

For queries, if any, please write to Ms. Neeru Pandey, at email id [email protected] or contact at telephone No. 0120-4082134

11 MR.GAURAVVIJAY ACS43706 16117 EIRC12 MS.BHANUPRIYABAJAJ ACS47860 17820 NIRC13 MS.SURBHIBANSAL ACS28492 15808 NIRC14 MR.SANJAYVIJAYBATHEJA ACS17352 15807 WIRC15 MS.NAFISASULTANALICHARANIA ACS33767 17219 WIRC16 MR.PINTUKUMARBISWAL ACS45148 17105 EIRC17 MS.ANNAPOORNABEN

TARUNKUMARAGRAWALACS37597 15661 WIRC

18 MR.LAVNEESHBAREJA ACS41312 16780 NIRC19 MR.RAKESHSAIN ACS50138 18168 WIRC20 MS.HARSHADAPRADEEPRANE ACS34268 14762 WIRC21 MR.SILADITYACHOWDHURY ACS49149 18242 EIRC22 MS.KHUSBOOSETHIA ACS36230 16959 EIRC23 MS.CAUVERAMMABASAPPA

BOLLARPANDAACS46064 16906 SIRC

24 MS.PINKYSINGH ACS35663 14867 NIRC25 MR.NAVEENWISHWABANDHU FCS 7034 15400 NIRC26 MR.AMITAGARWAL ACS37843 14110 EIRC27 MR.JATINKUMAR ACS39445 15739 NIRC28 MR.ANSHULGARG ACS32301 16941 NIRC29 MS.SUKRITIMANNA ACS45394 17382 NIRC30 MS.RASHMIAGARWAL ACS42981 16115 EIRC31 MR.ASHOK ACS45403 17175 NIRC32 MR.ARPITGOYAL ACS37085 17076 NIRC33 MS.REKHAMAHAVIRPRASADSHARMA ACS31144 12136 WIRC34 MS.FARHAKHATOON ACS35553 15648 EIRC35 MS.NIDHIARORA ACS28136 14904 NIRC36 MS.REKHAANILGUPTA ACS24804 10340 WIRC

37 MR.KAMALNARAINGUPTA FCS8624 17138 NIRC

38 MR.KTGANDHI FCS3316 9777 WIRC

39 MS.HINALRONAKMEHTA ACS25618 17581 WIRC

40 MS.AARTIMAHENDRAKUMARJAIN ACS37004 17401 WIRC

41 MS.NIKITAMEHRA ACS48712 18305 NIRC

42 MS.AMITAKUMARI ACS43658 17304 NIRC

43 MR.GURPRITSINGH ACS44849 17588 NIRC

44 MR.TARANATHBINGIMALLA ACS33306 12680 SIRC

45 MR.VEERAMANIKANDANT ACS37576 17517 SIRC

46 MS.HUMASEHRISH ACS44712 17656 NIRC

47 MS.URVASHIMALHOTRA ACS34500 13262 NIRC

48 MS.PURVADUTTA ACS34165 12753 NIRC

49 MR.ROHITAGARWAL ACS41439 15558 NIRC

50 MR.JOGINDER ACS49245 17920 NIRC

51 MS.BHARTIKASHYAP 46774 17158 NIRC

LICENTIATE ICSIADMITTED*

SL.NO.

LICENTIATE NO.

NAME REGN

1 6939 MRSRINIVASANT SIRC

2 6940 MRSHRAVANKANNANDEV SIRC

3 6941 MR.CHANDRASEKARS SIRC

4 6942 MS.SHILPAKMURTHY SIRC

Releases at 18th National Conference of Practising Company Secretaries

Beginners Guide on Goods and Services Tax

It provides a basic understanding about GST to public at large and makes them aware of the various important concepts in GST.

45 Days Residential Corporate Leadership Development Programme

ICSI has introduced three month compulsory residential training programme for CS professional pass out students.

ICSI- Quest – EAssist - Web Application

The Institute has launched 'ICSI Quest-eAssist', an online platform for members of ICSI to seek responses on the queries and difficulties of members pertaining to the Companies Act, 2013 and Rules and Notifications.

My ICSI virtual Platform Blog & Discussion Board

The Institute has also launched 'ICSI virtual Platform Blog & Discussion Board' on the occasion.

ICSI Sampark

Missed Call Number Service for ICSI: The Institute has also launched missed call number service for ICSI. Now, anyone can get help on Registration Procedure by giving a Missed Call at 8824401155

Mock Test – Unlimited Insolvency Professional

With the object to constantly educate its members and to prepare them for the challenges ahead, ICSI IPA launched a Mock Test Series.

Handbook for MSME Entrepreneurs

It emphasizes on the role of MSMEs in the National progress. Insight into the registration process of MSMEs, raising of finances, as well as compliances with various regulatory obligations would h e l p M S M E E n t r e p r e n e u r s i n management and administration of their businesses in a sustainable manner.

Ready Reckoner for Private Companies- (The Companies Act, 2013 Series)

This Ready Reckoner aims to give an easy to follow approach vis-à-vis the procedures and compliances to be observed by a private company under the Companies Act, 2013. The Reckoner has some of the checklists, chapter-wise compliances to be observed, and exemptions available etc. to the private companies.

Dear Professional Colleagues,

The Institute of Company Secretaries of India (ICSI) is dedicated to professional excellence of the profession of Company Secretaries and has made 'inclusive growth' a key element in its various professional platforms. In order to achieve a professional growth process in which people from all walks of life participate and benefit, the ICSI extended its professional reach to the North Eastern part of the country, by organizing the first ever National event in Shillong - 18th National Conference of Practising Company Secretaries at State Convention Centre (Pinewood Hotel), Shillong, Meghalaya during June 24-25, 2017 on the theme 'Enterprising India – Role of Professionals in New Age India'.

The Conference witnessed launching of various new initiatives and release of Publications. The Council of the Institute has decided that soft copies of the publications be made available to the students and members free of cost. Accordingly, members and students can access pdf version of the releases on ICSI website at : www.icsi.edu/PCS_Pub.aspx

Happy Reading !!

Regards,

CS (Dr.) Shyam AgrawalPresident

Souvenir-cum-Backgrounder


TDS Ready Recknoer

To objectify capacity building of our m e m b e r s a n d a d v a n c e t h e i r understanding in effectively discharging their professional accountabilities under TDS, the Institute has brought out the p u b l i c a t i o n t i t l e d “ T D S Re a d y Reckoner ”. This Ready Reckoner contains all aspects of Tax Deduction at Source, the detailed scheme of TDS, var ious deduct ions under TDS, procedural compliances as well as consequences for non-compliance.

FAQs on Companies Act, 2013 (2nd edition) - (The Companies Act, 2013

Series)

Revised edition of 'Frequently Asked Questions or FAQs on the Companies Act, 2013’ contains the practical issues being faced by the professionals as have been brought before the Institute in the form of queries through dedicated e-mail/ through ICSI Quest – Assist (call -in platform) for the purpose.

Recognitions to Company Secretary in Practice

Arrays of recognitions are being accorded to Company Secretaries under various central and state laws. In this context, the Institute brought out the publication titled 'Areas of Recognitions to Company Secretary in Practice under Various Laws' to apprise the members about the vast world of recognitions in various laws of the country.

A Guide to Board Evaluation

This publication discusses the need and i m p o r t a n c e o f b o a r d e v a l u a t i o n , international trends, legal framework in India, methodologies, steps involved and post-evaluation activities.

West Bengal-Ease of Doing Business for MSME Sector

In the entrepreneurial ecosystem the journey of an entrepreneur begins from conceiving an idea to developing it into a project proposal for starting a business. This publication covers basics of Micro, Small and M e d i u m E n t e r p r i s e s A c t , Entrepreneurship Development and the MSME Sector in West Bengal with reference to the West Bengal MSME Policy 2013-18.

A Guide to Ease of Doing Business in North Eastern Region

In view of the attainment of the objective of 'Balanced Regional Growth', it is imperative to create a congenial business environment in North-East thereby facilitating growth of business. In this backdrop, the book titled, "Ease of Doing Business" is an endeavor to delve into the various key facets pertaining to the business environment in North East.

Serendipity of NBFCs in India- The Sustainability Dimension A Study of

Selected NBFCs

In light of the fact that NBFCs constitute an integral element of the Indian Financial System, and the crucial role they play in nation building and financial inclusion by complementing the banking sector in extending credit to the unbanked segments of the population, the research paper generates paramount research interest to comprehend the sustainability of NBFCs in India.

Espousing Corporate Governance through Shareholders Wealth Maximisation

Trajectory

With the rise of shareholders activism, wealth maximization of shareholders have gained steam. Since equity shareholders are real owners of a company and embrace highest degree of risk, this research paper attempts to delve into wealth maximization scenario of selected Indian banking companies.

Pdf ersion of the releases the v can be accessed at ICSI website : www.icsi.edu/PCS_Pub.aspxFor any query or feedback, please write to Directorate of PD, PP & Studies at or [email protected]

Releases at 18th National Conference of Practising Company Secretaries



ICSIHouse,22,InstitutionalArea,LodiRoad,NewDelhi–110003Phone:45341000Fax:91-11-24626727

E-Mail:[email protected] Website : www.icsi.edu

CAREER OPPORTUNITIES

TheICSI,apremierprofessionalbodyconstitutedunderanActofParliament,invitesapplicationsforthefollowingpostsatitsHeadquarters&ICSI-CCGRT,NaviMumbai:- Name of the Post Pay Band & Grade Pay

(Rs.)Gross Salary per Annum

(Rs. in Lakh)

Max. Age(as on

01.07.2017)

Total No. of Posts

DEAN (on Contractual basis for two years at CCGRT, Belapur, Navi Mumbai)

Compensation:Rs.17.8lakhperannumapprox. 55 years 1

Joint Secretary (Law) 37400-67000withGradePay-10000/- 17.8 45 years 1

Director (Law) 37400-67000withGradePay-8700/- 15.6 45 years 1

Director (Inernal Audit) 37400-67000withGradePay-8700/- 15.6 45 years 1

Forfurtherdetailsviz.qualification,experience,procedureforsubmissionofapplication,etc.,pleasevisitourwebsitewww.icsi.edu/career with effect from 12.07.2017. Interested candidates must apply only through electronic application form (Online). Last date for submissionofapplication(Online)is30.07.2017.Reservationpolicywillbeapplicableasadoptedbythe“ICSI” initsServiceRules.The“ICSI”reservestherighttoincrease/decreaseorevennottofillupanypostsasperitsrequirement.

Certification from a Premier Institution established by Ministry of Corpo-rate Affairs, Government of India

(September2017–February,2018)Lastdateforregistration:31st August, 2017

(Limited Seats per Batch)ThisCertificateProgrammewillenabletheparticipantsingainingasoundandcomprehensiveunderstandingoftheconceptsofcorpo-rateandalliedlawsincludingtheCompaniesAct,2013;IncorporationandStructure,CapitalMarket,SEBIand IPOs,CorporateFinance,Arbitration,CorporateSocialResponsibility(CSR),CorporateInsol-vency,Fundamentalsof IntellectualPropertyLaw,etc.Thecourseisdesignedwith inclusionof the latestdevelopmentsonCorporateLawsinIndia.

• FOR WHOM:GovernmentOfficials,Industry,Professionals,En-trepreneurs,Academicians,DirectorsandStudents.

• CoursedeliverybywayofOnline Learning Management Sys-tem (LMS) spreadover6months(120ClassHours)

Contact: Dr.PylaNarayanaRao,CourseCoordinator,

SchoolofCorporateLaw,IICAWeb:www.iica.inE-mail:[email protected]

T:0124-2640088:Mob:7042712183

Certification from a Premier Institution established by Ministry of Corporate Affairs, Government of India

Lastdateforregistration:26th August, 2017(Limited Seats per Batch)

ThisCertificateProgramme focuses upon theCorporate and IndividualInsolvencyProcessandintroducestheconceptssuchasInsolvencyandBankruptcyRegimeinIndia,AuthoritiesandEnforcementMechanisminIBC2016,Corporate InsolvencyResolutionProcess(CIRP),LiquidationProcess,InsolvencyResolution&BankruptcyforIndividuals&PartnershipFirmsandIBBIwhichwouldregulateanewgenreofInsolvencyProfes-sionalsthroughInsolvencyProfessionalAgencies.

• FORWHOM:ThiscertificatecoursewouldbeusefultoprofessionalsasCS,CA,CMA,InsolvencyProfessionals,LegalPractitioners,credi-tors,academicsandotherrelatedstakeholderswhoareinterestedinpursuingthisareaintheirprofessionallife.

• Course delivery by way of Online Learning Management Systemspreadover3months(45+ClassHours)

Contact: Dr.PylaNarayanaRaoandMs.ShefaliTeotia

CourseCoordinators,SchoolofCorporateLaw,IICAWeb:www.iica.inE-mail:[email protected]

T:0124-2640088:Mob:7042712183

APPOINTMENTS


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Dilgient-India_Ad2_23052017.indd 1 30/05/2017 13:23


n ETHICS&SUSTAINABILITYCORNER

n ICSIINITIATIVESUNDERGST

n GSTCORNER

n CGCORNER

6Corner

Miscellaneous


ETH

ICS

& S

US

TAIN

AB

ILIT

Y C

OR

NER

Administrationisbelievedtoberootofallcivilizations.Astheadministration,soisthenation.Evenifwetalkaboutasmallsystemoranorganization,theworkculture and the environment within the organization depends a lot on its

administration.Andtalkingaboutadministration,itisfurthertheadministratorwhosetsthe rule or trend of administration and hence for the system. So if the administrator is aligned to certain value system, code of conduct, belief or principles, he aligns thewholesystemtoitandtheprinciplecanbeeasilysustainedwithinthesystem.While,iftheadministratorhimselfdoesn’tfollowthem,itisdifficulttosustainthatvaluesystemor principle in the administrative system. It is by sustaining this values system andethicalbaseoftheadministrationthattheadministrationcanbeconstantlyprogressivein nature.

Inthelightoftheaboveconclusion,letusexaminecertainpowers,whichifexecutedwithtrueknowledgeaboutthem,sincereeffortsandconvictionoffulfillment,canleadto a new era of administration- ethically powerful and admired by all. FirstamongstthesepowersisthePower of Introversion.

• What is the meaning of Introversion?Ifwelookforthedefinitionofintroversion,itwillrangefromthequalityofbeingshytothequalityofbeingunsociable.Andanintrovertpersonisunderstoodassomeonewhoispredominantlyconcernedwithhisownfeelingsandthoughtsratherthanwithexternalthings.Butbeingintrovertintruesenseismuchmorethanmerelybeingshyorreticentor self-centered. It is not an inactive or dull state of the person, where one is notconcernedaboutthesurroundingsorexternalthings;beingintrovertisratheraholisticstate where one is in complete harmony with a balance between the internal and externalenvironment.

Sowhat isbeing introvert? Introvert (Latin introvertere) comes from theLatinwordsintro-‘totheinside’andvertere-‘toturn’.Thusinspiritualcontemplation,beingintrovertmeanstoturnone’sattentiononone’sthoughtsandone-self.

• When to become introvert?Each person is an administration in a sense. Whether a manager or leader in anorganization, or a homemaker in a household, or a student studying in a school orcollege- each one of them have to manage their time, tasks, thoughts, emotions,resources,etc.Sotheconceptofadministrationisnotrestrictedtoafewbutisuniversaltoall.Soatanygiventime,weallaredemonstratingouradministrationskills.

- But,thereoftencomesatimewhenwefindourselvesstuckinmiddleofanything;wherewethinkwehavereachedfarenoughnottoturnbackorescapeorClt+Alt+Deletethesituation(sometimescreatedbymyownmisunderstandingsandactionsdoneinthepast)andnorcanIproceedahead.Insuchsituations,weneedashiftinourapproachofsolvingthingsandcomingoutofsituations.Whenoldmethodsstopworking,it isanindicationoracalltodevisesomethingnew.Thisnewnesscannotbeaproductofsomethingoldandalreadyinuse.Ithastocomeoutfresh.In order to allow this fresh idea or solution to come to our mind and also to be able to‘catch’itwhenitcomes,wehavetobeobservanttowardsourthoughtssothatwedon’tmisstherightone.Infacttherightonewillstrikewhentherearenottoomanywasteone’sinourmind.

- Itisalsogoodtobeintrovertwhenyouwearetemptedtoseetheflawsinothers.Itistruethatanadministratorhastostriveforandmaintaintheexcellenciesofthesystem,andforthatitisnecessarytobeawareoftheshortcomingsofothers.Butinordertodoso,hemustbeawareoftheshortcomingsofhisownaswell.Ifhehasthechargeandpowertomakereformsforothers,healsohasaresponsibilityto transformhimself.Moreover, tobe loudandextrovert indetailingwhatwrong

If the administrator is aligned to certain value system, code of conduct, belief or principles, he aligns the whole system to it and the principle can be easily sustained within the system.

In order to allow this fresh idea or solution to come to our mind and also to be able to ‘catch’ it when it comes, we have to be observant towards our thoughts so that we don’t miss the right one. In fact the right one will strike when there are not too many waste one’s in our mind.

POWER OF INTROVERSION FOR PROGRESSIVE ADMINISTRATIONContributed by Brahma Kumaris, Om Shanti Retreat Centre, Gurugram


othersaredoing,meanstospreadnegativityintheatmosphereandinthemindsofpeoplearoundme.Insteadofthat,onehastofocusmoreonwhatwrongIamdoingandhowcanIrectifymyselfandotherspositively.

• Why should one be introvert?“Hewhoguardshismouthandtongue,Guardshissoulfromtroubles”-NewAmericanStandard Bible- By being introvert, we can give ourselves some time to think beforewe act or

respond.Wecommonlyadviseothers-‘ThinkbeforeyouSpeak’or‘ThinkbeforeyouAct’butbeingintroverttakesitonestepdeeperto-‘ThinkbeforeyouThink’.Itislikedetachingourselvesfromthestimulus,whichcantriggerasuddenreactionandspoilthesituation.Wegiveourselvesanopportunitytopause,reflectbackandaskourselves-whatwillbetheeffectofmyresponse?Inthisway,wecancheckthequalityofourthoughts,wordsandactionsandanticipatetheoutcome;aswesowathought-wereapaword,wesowaword-wereapanactionandwesowanaction-wereapourhabits,characterandultimatelyourdestiny.Hence,bybeingintrovert,wecaneasilyavoidthesituationofrepentanceafterthetaskisdoneaswearenolongercompelledbyexternalstimulusandwhateverwedosayordoareproductsofconsciousthinkingandbetterdecisionmaking.Inotherwords,bybeingintrovert,Icanbetterdesignmydestiny.

- Also,takethecaseofahugetreewhosebranchesarewidespread,whichbearsbeautiful flowersand fresh fruits,whose leavesaregreenand lively. Inorder tokeepthistreealiveandgrowing,onecanwater itseachandeverybranch, leaf,flowerandfruitonthetreedaily.Butdoesthismakethetreereallygrow?Certainlynot!All of theseeffortswill go in vainasweknow that the treedoesn’t get thenourishmentthroughitsbranches,leaves,flowersorfruits.Ifwehavetonourishthistree,wehavetowaterandnourishitsroots.Similarly,ourpresentstateoflifeislikethishugetreebearingvariousroles,responsibilities,relations,attainments,etc.Wecan continue to beworriedabout theexpansionof this treeof life andexpendallofourenergyindevelopingallofthese;butwithoutpayingdueattentionontheinnerselforsoul,whichistherootofallthis,wecannotensurethatlifewillbeflourishingthewayweexpectittodo.Beingintroverttakesustotherootsofthisdeeper self of ours.

- Justasthesurfaceoftheoceanisturbulentandnoisybuttheoceanbedisstableand silent and holds rare treasures and creatures which cannot be found on the surfaceoftheocean;ourdeeperselfisfullofvirtuesandpowers.Byjustsurfingonthesurfaceofouridentity,weremaindevoidofthesevirtuesandpowersandstart lookingforthemoutside.Eventhougheachindividualhasit intheirdeeperself,butsinceweagainjustlookattheirsurface,wethinkthatthesevirtuesarenomore relevant in the world today and even presume that it is very difficult to experiencethemintheirtrueformandevenbelievethatsuchaworld-operatingonthebasisofallthesevirtuesandpowerscannotexistorisimpractical;whileit isalreadyexistingineachoneofus.Wejusthavetopeepwithin…Thus,itispossibletoexperienceanunknown-unseenworldoftruepeace,happiness,loveandpowerif we connect to ourselves and become introvert. This leads to a sense of fulfillment in the self and arouses a feeling of contentment. That’swhy inHindi, it is said‘Antarmukhisadasukhi’whichtranslatesto‘onewhoisintrovertisalwayshappy’.

- Whenwetasteanewdish,whichwehadnevertastedbefore,eventhoughthedishisnewforus,wecanstillinferitstaste-whetheritissweetorsaltyorbitterorsour.Wecanevencommentonwhetherthequantityofsugarorsaltisappropriateornot.Howwasthispossiblewhenweweretastingthedishforthefirsttime?Thisisbecausethedishwasnewforusbuttheexperienceoftastewasnotnew,i.e.,wealreadyhavehadthisexperiencebefore.Similarly,whenwemeetapersonandjudgethathe/sheishonestorcalmorfriendly…itisbecausewemightbemeetingthe person for the first time but we already have all these qualities and theirexperiencesinstorewithinus.Italsomeansthatifwenoticeother’sweakness,itisbecausewehaveittoowithinus.Thus,‘astheMicrocosm,sotheMacrocosm’- we have within us all that we look outside in the world- whether positive or negative.Being introvertcreates forusan ‘Inner laboratory’ forall thevirtues to

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easily avoid the situation of repentance after the task is done as we are no longer compelled by external stimulus and whatever we do say or do are products of conscious thinking and better decision making. In other words, by being introvert, I can better design my destiny.

it is possible to experience an unknown- unseen world of true peace, happiness, love and power if we connect to ourselves and become introvert. This leads to a sense of fulfillment in the self and arouses a feeling of contentment. That’s why in Hindi, it is said ‘Antarmukhi sada sukhi’ which translates to ‘one who is introvert is always happy’.


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connected with ourselves and changing our perceptions about things we seeoutside in turn createsnewexperiencesoutsideand lead toanewobservationabout the samepersonor event aroundus, strengtheningour own set of innervirtues.

- Whenweareintrovert,asaresultofthisselfanalysisandexperimentation,weareabletotransformourselvesalso.Let’sseehow…Asdiscussedearlier,introversionfollowedbyintrospectionleadstoclarityofthoughtsandfeelingsandhencebetterdecisionmaking.Throughabetterdecision,wecandiscriminatebetweenwhatisrightandwhatiswrong.Andthroughknowledgeandexperienceofourinnerworldofpowerwecannowtransformourwasteandnegativethoughtsandfeelingsintopositiveandconstructiveones.So, tobe introvert isnotmerely tobesilentandinactive.Itisafurnaceinwhichweburnouroldbeliefs,behaviorsandimpressions,and create new ones.

It is said- “Wise men speak because they have something to speak, fools speak because they

have to speak something”. - Plato

Hencebeing introvertdoesn’tmeanbeingmeek.But itgivessavesourenergy fromgettingdrainedinexternalquestionsandwastefulconversations.Thissavedenergyisutilizedinstrengtheningourthoughts,wordsandactions,whichfurtherhasthepowertotransformorinfluenceothers.Thusthistransformationpower,althoughsilent,isnotincognito,asitsresultsareevidentaspowertotransformotherstoo.

• How can one practise being introvert? It iseasy to lookoutsideandget influencedby thingsaroundusasoursensesaredevelopedtosee,smell,hear,tasteandfeelwhateverisexternal.Hencetobeintrovert,the first step is to know our inner world.

Spirituality provides us an opportunity to understand our real self- that we are not these roles or tags of our name, gender, nationality, religion, color, work that we do,relationshipsthatwehold,etc.Infact,wearenoteventhisbody.Justasamachinehasmanyparametersonwhichitsfunctioningisbased,ourbodyalsohasthesevariousparametersonwhichourfunctioninginthissocietyisbased.Ifweconsiderourselvestobethisbody,withachangeintheseparameters(andtheirspeedofchangeisveryfast in this fast-paced world), our functioning, responses, moods, feelings, beliefsystems,principlesandeverythingelsechanges.Withsuchafluctuatinginnerstate,wecannot experience inner stability and peace. Thus spirituality helps us become soulconscious and not role conscious.

Onceweknowandunderstandtheworldinside,wecandevelopthepractiseofbeingintrovert through Rajyoga Meditation. Rajyoga Meditation allows us to ‘see’ whatqualitieswehave,‘smell’whatwrongnotionsorperceptionsarewecarryingandwhatopportunitydowehave ineachsituation, ‘hear’our innervoicesor intuition ineverysituation,‘taste’orexperienceinnervirtuesand‘feel’thevirtuesinotherstoo.Aswedeveloptheseinternalsenses,ourqualityofbeingintrovertedfurtherenhancesandweemergeasmorestablebeings.

Moreover,whenwearesilent,wecanhearthesilentwhispersofGod,theincorporealSupremeBeing,whohasnofaceorvoicetoexpressHislovefulfeelings,nohandstoguide us physically; yet who does all of these very subtly. In order to catch HisinspirationsandreceiveHishelp,wehaveto filteroutanywastefromourmindandsensesandfinetuneoursubtleinnerreceptorstoHisfrequency,whichisundoubtedlyveryhighandonecannotattainthatleveloffrequencyifoneisstilltrappedinthewebofourowncreationofname, fame, role.For this,weneed tobedetached fromourexternalworld,gototheinternalrealmsandexperiencetheselfandHimasitis.Andwhenwebecomesilentanddetached,Hespeakstousthatwhichisrequiredbyusatthismoment.WhenwegetconnectedtoHimatHisfrequency,weareabletoraiseourownlevelofenergy.

Being connected with ourselves and changing our perceptions about things we see outside in turn creates new experiences outside and lead to a new observation about the same person or event around us, strengthening our own set of inner virtues.

Spirituality provides us an opportunity to understand our real self- that we are not these roles or tags of our name, gender, nationality, religion, color, work that we do, relationships that we hold.


1.) GST POINT GST POINT is a platform to reply to the queries, difficulties

and challenges faced by consumers, manufacturers, traders,MSMEs, public at large, professionals, etc. in understandingandimplementationoftheGoodsandServicesTaxLaws.Thequeriesarebeingreceivedandrepliedover thephoneon theissues and challenges faced by stakeholders in day to dayworking while implementing the GST. The help line is openfortwohours,twiceaweekandthequeriesareaddressedbysubjectexperts.Thequeriesmayberaisedat011-45341095.Inaddition,fewregionalchaptersareintheprocessofsettingupphysicalcountersofGSTPointonthedesignateddays.

2.) Beginners Guide to GST A Beginners Guide on GST has been released in the PCS

Conferenceforcirculationamongstpublicatlarge.3.) GST E-Book ICSIiscomingoutwithanE-BookonGoods&ServicesTaxto

be released soon.4.) GST App TheInstituteofCompanySecretarieshaslaunchedaICSIGST

Appforpublicatlargetodaywhichwillenableuserstogetlatestnews,articles,regulationsandvariouspublicationsonGSTbyICSI.AneventlisttabwillkeepyouupdatedabouttheeventsonGSTorganisedby ICSIacross India.DiscussionForum,afeatureintheAppwillbeupdatedsoonwhereyouwillbeabletodiscussyourqueriesrelatingtoGSTwithexpertsoftheInstituteofCompanySecretariesofIndia.TheAppispresentlyavailableonandroidplatformandcanbedownloadedfromPlayStore.

5.) Certificate Course in GST Withaview toequipCompanySecretarieswith theskillsand

developcompetencyintheareaofGST,ICSIhaslaunchedanOnlineCertificateCourseonGSTforitsmembers.ThecoursegivesacomprehensiveinsightintotheprinciplesofGSTaswellasothernuancesofthenewindirecttaxregime.TheregistrationforthiscourseonGSTcanbedoneatwww.icsi.edu.

6.) GST Master Classes ICSI is organizingMasterClasses onGoods&Services Tax

throughitsvariousChaptersandRegionalOfficescontinually,coveringawidecoverageofthenovellaw.

7.) GST Resource Persons WithaviewtosupportthesmoothimplementationofGSTin

India,ICSIisintheprocessofempanellingresourcepersonsin GST who would further contribute in creating awarenessandunderstandingabout the facts,opportunities,challengesandway forward in theupcomingGST regimeandpromotecapacity building initiatives in the varied areas of the newtaxonomy.

8.) GST Educational Series TheInstituteofCompanySecretariesofIndia(ICSI),hasalso

launchedadailyEducationalSeriesonGoods&ServicesTax(GST)forthemembersandstudentstoenhanceknowledgeofGSTlaws.

9.) GST Newsletter TheInstituteofCompanySecretariesof India(ICSI),aspart

of its capacity building initiative under the new indirect taxregimeandupholdingthe“OneTaxOneNation”mottooftheGovernment of India, has brought out amonthly newsletterdedicated to the Goods & Services Tax (GST). The GSTNewsletter broadly aims to cover recent updates and newsunderGST, a glimpseof events organisedby ICSI onGSTanda listofupcomingeventsalongwitharticles,FAQsandother related material.

ICSI INITIATIVES UNDER GST

APPOINTMENTS

ANNOUNCEMENTGST@18%becomesapplicableonEntranceFee,AnnualMembershipFee,CertificateofPracticeFeeandLicentiateFee w.e.f. 1.7.2017

OBItUArIeSChartered Secretary deeply regrets to record the sad demise of the following Members:

CS S Kumar, (24.08.1951 – 15.06.2017), a Fellow Member of the Institute from New Delhi. He was member of CSBF Managing Committee and earlier served ICSI in various capacities and retired as Principal Director.CS Vishwanath Thakersid Poddar, (02.07.1937 – 07.07.2016), an Associate Member of the Institute from Mumbai.CS B Thulasi (04.01.1966 – 25.02.2017), an Associate Member of the Institute from Navi Mumbai.

May the almighty give sufficient fortitude to the bereaved family members to withstand the irreparable loss.

May the Departed souls rest in peace.




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1. GST Midnight Launch at Central Hall of Parliament The biggest fiscal reform since independence was formally

launchedbyHon’blePrimeMinisteratalaunchceremonyinCentral Hall of Parliament at midnight June 30, 2017. Theeventwasattendedbyvariouseminentindustrialists,cinestars,Ministersandthelike.

2. 17th GST Council Meeting The 17th meeting of GST Council was held on June 18,

2017whereinthefollowingwasconcluded:• RolloutofGSTfromJuly1,2017• TheGSTCouncil approved theRules relating to advance

ruling, appeals and revision, assessment and anti-profiteering

• GSTCouncilalsorelaxedthedeadlineforfilingofreturnsforthefirsttwomonthsfollowingGSTrollout

• E-Way Bill Rules could not be finalized. Shri Arun Jaitleysaidthetransientrulewouldprevailpendingafinaldecision

• TheGSTCouncilhasdecidedtoproviderelieftohotelsbyraisingthethresholdtariffforthe28%taxratetoRs.7,500fromRs.5,000proposedearlier

• State-runlotteriesaregoingtobetaxedat12%whilestate-authorisedprivatelotterieswouldfallinthetaxslabof18%

• TheGSTCouncilwillmeetagainonJune30,2017beforetheimplementationofGST

3. 16th GST Council Meet The16thmeetingoftheGSTCouncilwasheldonJune11,

2017 at New Delhi, wherein the following decisions weretaken:

• GST Council reduced tax rates of 66 items againstrepresentations received for 133 items. Few takeaways are:n GSToninsulin,agarbatti loweredto5percent,school

bagstoattracttaxof28percentn GSTonmovieticketsunderRs100hasbeenslashedto

18 per cent,while tickets priced aboveRs 100will betaxedat28percenttax

n Taxoncutlerywillcomedown from18 to12percent,while computer printers will be lowered from 28 to 18 per cent

n In order to encourage job work outsourcing in sectorslike diamond, leather, textiles, jewellery and printing,whereworkers take theworkhome, theGST ratehasbeen reduced to 5 per cent

n Packagedfoods likefoodandvegetableproductssuchas pickles, chutnies, ketchup and instant food mixes,among others, which historically were taxed at 18 percent,aregoingtobetaxedat12percentastheseareitems used by common people

n Taxratesoncashewnutshavebeencut to5percentfrom 12 per cent

• Traders,manufacturersandrestaurantswithturnoverofuptoRs75lakhscanavailthecompositionscheme,againstRs50 lakhs earlier

• GSTCouncilapprovestheAccountsandRecordsRules4. 15th Meeting of GST Council TheGoodsandServicesTaxCouncil’s 15thmeetingwas

heldatNewDelhionJune03,2017.The followingare thekeytakeawaysoftheGSTCouncilMeet:

• Traders and retailers can file declarations within 90 daysclaimingataxcredit fortransitionstockaftertheGSTrolls

outfromJuly1,2017• GST Council also decided to amend the transition rules

allowing tradersand retailers tomake the claimof 60percentagainst theCentralGST(CGST)orStateGST(SGST)dueswherethetaxrateexceeds18percent

• IncaseswheretheGSTrateisbelow18percent,only40percentdeemedcreditwillbeavailableagainstCGSTandSGSTdues

• Where IntegratedGST (IGST) ispaidon the saleof suchgoods,deemedcreditwouldbeavailableat the rateof30percentofIGSTpaidiftheIGSTrateis18percentoraboveand20percentofIGSTpaidinothercases

• The rates of tax and cess on gold, biscuits, footwear andtextilesweredecided for therolloutof thenew indirect taxregimefromJuly1.Thefollowingrateswerefinalized:n Packagedfood itemssoldunderregistered trademarks

shallbetaxableat5%n Allbiscuitstobetaxableat18%n Agriculturalmachineriesshallbetaxedat5%and12%n FootwearpricedbelowRs.500/- shall attract 5%GST

while other footwear shall attract 18%n Textiles,juteandsilkshallbesubjectto0%n Yarnshallbeputat5% (exceptman-madeyarn tobe

taxedat18%)n Fabricofallcategoriesshallbeliableto5%n ReadymadeapparelunderRs.1,000/-shallbetaxable

at5%while thoseaboveRs.1000/-wouldbe taxedat12%

n Beedi patta to be liable at 18% whereas beedis shall be taxedat28%withoutCess

n RateonGold,gems&jewelleryanddiamondstobekeptat 3%

n Rough diamonds shall be taxable at nominal rate of0.25% and

n Solarpanelstoattract5%GST5. GST registration for businesses to reopen on June

25,2017• The portal will open a third window for enrolling on June

25,2017fivedaysbeforetherolloutofthenewtax• Morethanthree-fourthsofthetotal80lakhexistingtaxpayers

under Value Added Tax, Service Tax and Central Excisehave already successfully enrolled on to the new digitalplatform in two rounds of enrolment

• The first round of enrolment was open from November8,2016tillApril30,2017

• ThesecondroundhadopenedonJune1,20176. Central Goods & Services Rules-2017 Notified, Will Be

Effective From June 22, 2017• Asmany as 18 sections relating to registration of current

central excise, service taxandVATpayerswith theGST-Network (GSTN) as well as transitional provisions werenotified

• As a precursor to GST, the Central Board of Excise andCustoms (CBEC)hasalsonotified two rules– registrationand composition levy

• AllthenotificationstobeeffectivefromJune22,20177. Ministry of Electronics and Information Technology

launches GST portal TheMinistryofElectronicsandInformationTechnologyhas


GST CORNERlaunchedadedicatedwebpagetoaddressissuesrelatedtoInformation Technology Services and Electronics.Theministry said in a statement that the webpage can beaccessedthroughMinistry’sWebPortalathttp://meity.gov.in/

8. GST Council’s Official Website Launched• ThegovernmentwentlivewithGSTCouncil’swebsitewhich

containsallthefinedetailsaboutthenewtaxregime• TheCouncil’swebsitehasallthedetailsaboutthesoon-to-

beimplementedGSTandisaonestopforalltheinformationforanindividualwhowantstoknowontaxratesunderGST,detailsoncompensation,detailsonIGST,CGST,SGSTandUTGST

• Thewebsitealsohasalinktitledas‘GSTHelp’underwhichallthedetailsabouttheconstitutionofGST,implementationcommittee, standing committees and sectoral groups forsmoothroll-outofGST

9. Hon’ble Prime Minister reviews GST roll-out preparations• Hon’ble Prime Minister took stock of various elements

involvedintheroll-outofGSTanddirectedtheofficialsthatmaximumattentionbepaidtocyber-security inITsystemslinkedtotheGST

• Hon’ble Prime Minister specifically reviewed aspects ofimplementationsuchasITreadiness,HRreadiness,trainingandsensitisationofofficers,queryhandlingmechanismandmonitoring

10. GST Council clears 3-tier ‘project management’ • GST Council has approved constitution of a three-tier

structurefor‘projectmanagement’ofGST,consistingoftheofficeofRevenueSecretaryatthetop,followedbyaProjectManagementTeamcalledGSTImplementationCommitteeandeightstandingcommittees

• Inadditiontothese,therewillbe18sectoralgroupstolookintothespecificissuesofsectorssuchastelecom,banking,miningandpharmaceuticalssectors

11. CAG will audit GSTN: Finance Minister• Comptroller and Auditor General of India will audit the

GoodsandServicesTaxNetwork(GSTN)-FinanceMinisterArunJaitley

• CEO will be appointed by the government and everydecisionwouldbewithapositive voteof thegovernment,therebygivingavetotothegovernment

• Themajorityontheboardwillbegovernmentappointees12. GST to allow companies in tax-free zones to claim

refund • TheDepartmentofIndustrialPolicyandPromotion(DIPP)is

workingonascheme thatwill replace thecurrentsystem,built on area based exemptions to allow companies withunits in tax-free zones to claim refund of GST, helpingensureasmoothtransitiontothenewregimeforbusinesseslocatedinindustriallymarginalareas

• Companieswillhavetopaytaxupfrontandapplyforrefundwhich shall be issued in 7 days

13. Commerce Ministry sets up GST facilitation cell TheCommerceMinistry has constituted aGST facilitation

cellwithaviewtoaddressissuesregardingthenewindirecttaxregimeinrespectofforeigntradepolicywhichissetupintheDirectorateGeneralofForeignTrade(DGFT)

14. Government starts Twitter handle to resolve GST related

queries Providinganavenuetoaddressindustryqueriesrelatedto

GST,therevenuedepartmentstartedanewtwitterhandle,‘@askGST_GoI’whichwill serve as a platform for tradersandtheindustrytogettheirdoubtsresolvedbyofficialsfromCentralBoardofExciseandCustoms(CBEC)

15. 160 firms apply to become GST Suvidha Providers • TheGSTNetwork (GSTN) has received asmany as 160

applications fromfirms thathaveevinced interest inactingasGSTSuvidhaProviders(GSPs)

• TheGSTN inDecember last yearhadnamed34 firmsasGSPs

• The GSPs are mandated to provide convenient ways totaxpayers and other stakeholders in interacting with GSTsystems, from registrationofentity touploadingof invoicedetailstofilingofreturnsunderthenewregime

16. Abolished various cesses via budgets to pave way for GST: Government

• The Finance Ministry has gradually abolished variouscessesongoodsandservices in the last threeBudgets intherunuptotherolloutofGST

• However,sevencesseswillcontinuetobeleviedunderGSTregimesincetheypertaintocustomsorgoodswhicharenotcovered under GST. These include Education Cess onImportedGoods,SecondaryandHigherEducationCessonImportedGoods,CessonCrudePetroleumOil,AdditionalDutyofExciseonMotorSpiritanddieseloil (RoadCess),SpecialAdditionalDutyofExciseonMotorSpiritandNCCDonTobaccoandTobaccoProductsandCrudePetroleumOil

• In the 2015-16 Budget, the government had abolishededucation cess, including secondaryandhigher educationcessontaxableservices

• In the2017-18Budget, theCentralGovernmentabolishedResearchandDevelopmentcessbyamendingtheResearchandDevelopmentCessAct,1986

• Further through the Taxation LawsAmendmentAct 2017,the13cesseswhichwereabolishedincludedcleanenergycess, swachhbharatcess, infrastructure cess,krishikalyancesscess on rubber, beedis, tea, sugar, waterconsumed by certain industries and by local authorities and thatonmanufacturedjutegoods

17. GST enablers • Taxmann,arecognisedGSTSuvidhaProvider(GSP)bythe

government,introduceditsGSTcompliancesoftware,‘OneSolution’ to help taxpayers, to create masters of all keyinformationintheGSTModuleofOneSolution

• AuditandtaxconsultingfirmEYhasintroducedanintegratedGSP-ASPsolutioncalledDigiGST,whichseeks toprovideorganisationswithend-to-endGSTcompliancesupportandishostedonMicrosoftAzurecloudplatform

• Bodhtree Consulting announced a strategic partner withInfosysasanApplicationServiceProvider‘ASP’whereintheclientsofInfosyswillhaveanoptiontoutiliseGSPplatformofBodhtreeConsultingfortheirGSTfilings

• Walmart India has launched a GST toll-free helpline toenable its kiranas and other reseller members’ transitionsmoothly into the new tax regime, to address retailers’queries,clarifydoubtsandexplainthenuancesofthenewtaxstructure.

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KENYA ENFORCES STEWARDSHIP CODE FOR INSTITUTIONAL INVESTORS

OnJune27,2017, theCapitalMarketsAuthorityofKenyanotifiedtheStewardshipCodeforInstitutionalInvestors.TheStewardshipCodeaimedatimprovingcorporategovernancepractices in listedcompaniesintheEastAfricannation.ThisframeworkissecondofitskindinanAfricanNationafterSouthAfrica.

The Stewardship Code’s primary intent is toempower Institutional investors to take up the role of stewardship as the representatives of their clients or investors to encourage continuous improvement incorporategovernancepractices in listedcompaniesand other approved products.

The Stewardship Code is applicable to institutional investors – asset owners and asset managers –investinginsecuritieslistedattheNairobiSecuritiesExchange.

There are two categories of institutional investors,firstlyassetownerswhocollectandmanagefundsbywayofinvestinginequitiesandothercapitalmarketsproductsonbehalfoftheirbeneficiariesorclients.

Institutional investorsarealsoassetmanagerswhoprovide fund management and other investmentservices on behalf of their clients.

TheenactmentoftheStewardshipCodeisastrongstatement of the Government’s support for on-going corporate governance reforms in the capitalmarkets. Itsdesign,developmentanddraftingwerespearheadedbytheCapitalMarketsAuthority(CMA)through a special industry committee appointed bytheCMABoard.

The development of the framework is the finalcomponent of the corporate governance reformsinstituted by theCapitalMarkets Authority in 2012.This included the enactment of a new Code of CorporateGovernancePracticesforpublicissuersofsecurities.

The World Bank Group and International FinanceCorporation were key partners, who providedtechnicalandfinancialassistanceforallcomponentsof the governance reform instituted by the CapitalMarketsAuthority.

TheStewardshipCodewill complement theexistingreportingandassessmenttemplatesforenforcementand oversight of sound governance practices underthe Corporate Governance Code through using theinformation reported to inform their investment and voting decisions as well as to proactively engagemanagementandtheboardsofinvesteeentities.

The Stewardship Code is available at Gazette Notice No. 6016 on link provided below:-

http://kenyalaw.org/kenya_gazette/gazette/volume/MTUwOA--/Vol.CXIX-No.81

SEBI FORMS NEW COMMITTEE ON CORPORATE GOVERNANCE

On June 2, 2017, the Securities and ExchangeBoard of India has set up a Committee on Corporate GovernancewithUdayKotak,theManagingDirectorof Kotak Mahindra Bank, as the Chairman of theCommittee.

The other members of the Committee are the representativesofcorporateIndia,stockexchanges,professional bodies, Investor groups, Chamber ofcommerce, law firms, academicians and researchprofessionals.

The Committee will be making recommendationsto SEBI with an aim to improve the standards ofcorporategovernanceofthelistedcompaniesinIndiaonthefollowingissues:-1. Ensuring independence in spirit of Independent

Directors and their active participation infunctioningofthecompany;

2. ImprovingsafeguardsanddisclosurespertainingtoRelatedPartyTransactions;

3. Issues in accounting and auditing practices bylistedcompanies;

4. Improving effectiveness of Board Evaluationpractices;

5. Addressing issues faced by investors on votingandparticipationingeneralmeetings;

6. Disclosureandtransparencyrelatedissues;7. Any other matter, as the Committee deems fit

pertainingtocorporategovernanceinIndia.

The committee shall endeavour to submit the report within a period of four months.

CORPORATE GOVERNANCE CORNER

DEVELOPMENTS – JUNE 2017


Regn. No. 21778/71 Delhi Postal Regn. No. DL(S)-17/3197/2015-2017Posting Date : 10/11-07-2017 Licenced to post without prepayment at Lodi Road P.O.Date of Publication : 05-07-2017 Licence No. U-(C)-80/2015-2017

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