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287 / 2023



Quote of the day

"If you're betrayed, release disappointment at once. By that way, the bitterness has no time to take root."

- Toba Beta

The lush green garden laden with a variety of plants and shrubs, fruit bearing trees and flowering plants of various hues seems history now. As I sit in my drawing room overlooking the stretch that was once a soft Mexican grass lawn, I feel sad. There is rubble, brick and mortar, soil and sand, logs of wood, electrical wires, tiles and many such inanimate things spawn all around. While many pots and holders were shifted out to safer places, many others couldn’t be saved. The guava tree, chikoo tree, coconut tree and several other older and stronger ones have survived the onslaught of the ongoing construction and continue to stand tall. Braving their lives are the rexora flowers, colourful hibiscus, the wilting rose creepers and the cheerful crotons. All crying out – WE ARE DOWN BUT NOT UNDER !

In light of this, it was nothing short of a miracle when the banana plant gave us dozens of ripe fruits. Everyday we watched the helpless banana plant that was growing alongside the half-broken compound wall – neither could we bring ourselves to chop it off nor could we nourish it sufficiently. I was disturbed to see the ‘heavily pregnant’ banana plant wilt under the weight of her own fruits. But lo and behold, the plant continued to grow to its best and ‘deliver’ on time. Not to mention the large leaves that we periodically continued to pluck from her for auspicious occasions. Despite the uncooperative conditions, ‘SHE’ never gave up. She gave us what she had to.

On this side of the wall is the short, shy jasmine shrub that blooms only during the summer season. She survived the harsh, unpardoning conditions. Yet she spread her fragrance around as a bunch of 7 white jasmine flowers bloomed one fine morning amidst the construction site. Our joy was doubled as we were blessed with the flowers and fruits on the same day. The lone jasmine shrub seemed to call out – HEY, COME WHAT MAY, I AM UP AND ABOUT !

As we celebrated Earth Day in April with the theme ‘Invest in our planet’, these two humble ‘green lives’ have taught us the lessons of perseverance, patience, purpose and never to give up. Live with a sense of duty, giving and detachment.

Contrast this green, sustainable world with the harsh corporate jungle. There may be slow down in the economy and job slashes all around. But there is no abatement in the compliance requirements and action by regulators. Do refer to the Compliance Calendar drawn up by our team for section 8 companies, for-profit companies and LLPs for the FY23-24. Click here to download the same.

Expectations set, whether explicitly or otherwise must always be met. Else there is a feeling of being let down. Apologies for the delay in this issue which ideally should have reached you on 30 th April. While it was a good feeling to receive messages from certain readers reminding me that the due date has passed, it also reminded me of lowering the self-set standards.

For any previous issues of Samhita and the readers’ feedback, please visit our  website.

Happy Reading,

S.C. Sharada


Regulatory Updates

Foreign Trade Policy 2023

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr.Piyush Goyal launched the Foreign Trade Policy 2023 (“FTP 2023”) on March 31, 2023. During the Press Release Hon’ble Union Minister stated that FTP seeks to take India's exports to 2 trillion dollars by 2030. The 4 pillars of FTP 2023 are incentive to remission, export promotion through collaboration, ease of doing business and emerging areas. It contains 11 chapters. Highlights of the FTP 2023 are as follows:

Please refer to the FTP 2023 for details.

MCA Updates

Rules on strike-off of Companies – Amended

With the intention to streamline and facilitate a quick exit process for Companies, MCA vide notification dated April 17, 2023, has notified the Companies (Removal of Names of Companies from Register of Companies) Amendment Rules, 2023 (“Amendment Rules”). The Amendment Rules shall come into force on May 1, 2023. Following changes were brought about by the Amendment Rules:

Open MCA Notification No. G.S.R. 298(E) dated April 17,2023

IND AS Amendment Rules

MCA vide notification dated March 31, 2023 has notified the Companies (Indian Accounting Standards) Amendment Rules, 2023 (“IND AS Amendment Rules”). The IND AS Amendment Rules are effective from April 01, 2023.

Open MCA Notification G.S.R. 242(E) dated March 31, 2023

SEBI Updates

Formulation of price bands for the first day of trading pursuant to IPO, re-listing etc. in normal trading session

SEBI vide circular dated January 20, 2012, has prescribed the parameters to be considered for price discovery through Call Auctions and the related price bands for first day of trading post IPO and relisting.

As the Call Auction prices may vary from one Stock Exchange (SE) to another which may lead to significant variation in price bands, SEBI vide circular dated April 11, 2023 (which shall come into force within 60 days of notification), has notified the manner for determining the Common Equilibrium Price (CEP) to calculate the price band.

CEP shall be the volume weighted average price of the equilibrium prices of individual stock exchanges determined by the Call Auction. The SE shall apply the CEP to determine the price band.

Open SEBI Circular dated April 11, 2023

Guidelines for RAs and IAs

SEBI has issued various guidelines for Research Analysts (RA) and Investment Advisors (IA) vide Circulars dated April 05, 2023 and April 06, 2023. Highlights of the same are as below:

To strengthen the conduct of RAs and IAs while issuing advertisements, an Advertisement Code (“the Code”) has been released. The Code includes any and all forms of communications that may influence an investment decision as an advertisement and mandates compliance of all the requirements of the Circular. The Circular contains details under the headings:

Considering that the names of RAs and IAs registered with SEBI may be different from the name depicted in their logo or their brand / trade name, SEBI has prescribed certain guidelines to ensure transparency in usage of such logo, brand / trade name.

These norms shall also be applicable to any other investment/research/consultancy agency associated with the IA/RA concerned and issuing advertisement wherein the IA/RA has been named in the advertisement.

IT Updates

Consequences of not linking Aadhaar with PAN

The due date for linking Aadhaar with PAN stands extended to June 30, 2023. The PAN of a Person who fails to do the same shall become inoperative due to which the person shall face the following consequences:

Central Board of Direct Taxes (“CBDT”) has notified that such consequences shall take effect from July 1, 2023 and continue till the PAN becomes operative.

Open CBDT Circular dated March 28, 2023

Clarification on selection of new regime / old regime

CBDT vide Circular No. 04/2023 dated April 5, 2023 has clarified that employer shall seek information from each of its employees regarding their intended Tax Regime (Old or New under section 115BAC) for each year and deduct TDS accordingly. If intimation is not made by an employee, the default tax regime will be new Income Tax regime u/s 115BAC. CBDT further clarified that this intimation would not amount to exercising of option by employee u/s 115BAC (6). It means a person can select any regime at the time of filing ITR u/s 139(1).

Open CBDT Circular dated April 5, 2023

Cost Inflation Index for FY 2023-24

CBDT vide Notification No. 21/2023 dated April 10, 2023 has notified Cost Inflation Index for Financial Year (“FY”) 2023-24 as “348”. This indicates Cost Inflation of 5.14 % being considered over that of previous year since the index was “331” in FY 2022-23. The notification is effective from April 1, 2024 and shall apply in relation to assessment year 2024-25 and subsequent assessment years.

Open CBDT Notification dated April 10, 2023

GST Update

Time limit for reporting Invoices on the IRP Portal

Through an advisory dated April 13, 2023 it was informed by GSTN that the Government has proposed to impose a time limit for reporting old invoices on the e-invoice IRP portal for taxpayers with AATO greater than or equal to 100 crores. Taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting. It is proposed to implement the same from May 1, 2023 onwards.

Open GSTN Advisory dated April 13, 2023

DGFT Update

Amnesty Scheme for one time settlement of default in export obligation

The Central Government has notified further amendments to implement the Amnesty Scheme for one time settlement of default in export obligation by Advance and EPCG authorisation holders.

Open DGFT Notification dated April 10, 2023

RBI Update

PMLA (Maintenance of Records) Amendment Rules, 2023 and amendments to KYC Directions, 2016

The Ministry of Finance notified the Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2023 (“the Rules”) vide notification dated March 7, 2023. The Master Directions - Know Your Customer (KYC) Direction, 2016 was amended on April 28, 2023, to align it with the Rules. Highlights of the amendments are as follows:

Please read the Rules and Master Directions for details.

Open the Rules

Open the Master Directions

Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

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