Volume
14
Issue
282 / 2022
November
2022
Quote of the day
"Children are like wet cement, whatever falls on them makes an impression."
- Haim Ginott
‘Samhita’ as a living, breathing person who is expressive and evolving. From taking baby steps way back in November, 2009 as Lexspeak, shy and unsure of herself (https://sharadasc.com/newsletter/volume-1-issue-no-12010/) to finding her feet during the tweens to completing 13 years in 2022, she has blossomed into a teenager through the 280+ issues sharing a variety of things – regulatory updates, professional articles, statutory calendar reminders, hand-picked thought for the month, jokes, legal maxims, phrases & definitions, INCOTERMS, insurance terms, tips to improve English, better business communication and of course the much-awaited insightful, Editorials. This year she has turned towards books and is recommending good reads with a short review under the “Books : Best Buddy” column. She has been reinventing to keep herself relevant to a cross section of the readers – legal and accounting professionals, entrepreneurs, teachers, students, management graduates, corporate honchos, home makers, social sector evangelists et al. The Sun continues to shine. The Clouds continue to float. The Seas continue to roar. The Rivers continue to flow. The Mountains continue to stand. The Birds continue to fly. So shall Samhita continue to share for years to come, in pursuit of its inspiration “Tamasoma Jyotirgamaya” (light of knowledge removes the darkness of ignorance) !!
Talking of growing up, I really wish we don’t. We are a child if we still retain the following attributes :
Joy| Fearlessness| Curiosity| Energy| Enthusiasm| Mischief| Adventure| Letting go| Experimenting| Being carefree |
Someone said “We are not our age. We are our energy”. This was in full display during our recent trip to Chiguru Farms https://chigurufarm.com/, a 15 acres fully functional organic farm, about 50 kms from Bangalore. Children and adults alike, all of us rediscovered the child in us as we walked around plucking fresh fruits from the 35 varieties – guavas, sapotas, bananas, yellow sapotas, lychees, butter fruits, wild berries, water apples, many more that I don’t remember – biting into them, understanding the varieties of rice and millets grown, admiring the beautiful flowers, tall trees, rows of chemical-free vegetables, throwing stones into the well-preserved lakes, lovingly nurtured ponds over the years and enjoying the simple spectre of ripples in the water. Rani, the sheep gave us company all through the 3 hour walk and was happy being cuddled as she posed for clicks. Other farm animals like cows, calves, sheep, chicks, goats welcomed us affectionately and added to the rural experience.
Raghavendra Bhat, an IT professional-turned-Chiguru Founder took us on a trip explaining everything about the farm, its produce, how chemical-free it is and the whole ecosystem of sustainable living. Food served is prepared from 80% ingredients grown naturally on the farm. His anecdotes from the experiential farm trips shamed us into realising how little we know about what we eat and how it is grown. Looking at a 5 day old calf, I believe, a teacher asked “How much milk does she give ?” Another stunner was from an innocent child who asked “Do you grow the snacks also on the farm?” This huge gap has inspired Bhat into offering curated learning trips to school children, families and communities.
Fearing the notorious Bangalore road traffic, while most of us had announced that we would wind up post a sumptuous home-made lunch, we landed up having evening tea and snacks as we huddled over board games and antyakshari. We played many old outdoor and traditional board games that some of us never knew or had long forgotten since childhood. There was so much strategy, aggression, skill and fun involved – simple yet satisfying. Oh how can I forget to mention the thrill of tree climbing, swinging on the rubber tyre hanging from the branches, enjoying the jhoola with gay abandon, sipping freshly made jaggery-cardomom-lemon drink ! Regained the child in us as we got more energetic through the day. It was a day of bonding. A trip back into childhood. All this was ironically a day before Children’s Day / Week – 14th to 20th November.
As you fast forward to adulthood, in this 283rd issue of Samhita, you can catch Anuj Magazine, Sr Director – Product Marketing, Balbix, a good friend of mine and an amazing Sketchnote Artist (https://www.linkedin.com/in/anujmagazine/) share a crisp and compelling book review of an autobiography by James Dyson. Balaji shares an insightful short story about why we must continue to do the ‘good work’ even if it is not appreciated. Perhaps this is what has kept us going for the last 13 years as Lexspeak metamorphosised into ‘Samhita’ ! In the regulatory updates section we have carried the announcements by MCA, RBI, SEBI, FCRA, GST & IT made during November, 2022.
For any previous issues of Samhita and the readers’ feedback, please visit http://www.sharadasc.com/resource-center/.
Happy Reading,
S.C. Sharada
© James Dyson
The book- 'Invention' is an autobiography that enlightens you with the stories of life and times of one of the most underrated inventors of our times- James Dyson.
Dyson describes his journey and how he came to create his own business and guided it to become one of the most innovative technological businesses in the world.
If you are-
- an engineer, read it to understand the value of perseverance. Dyson made 5127 prototypes of the cyclonic vacuum cleaner that revolutionized how the homes are cleaned.
- a parent, read it to tell your kids about how to build a legacy.
- someone looking to reinvent oneself, then his philosophy- 'Everything changes all the time, so experience is of little use' will inspire you.
Like his products, Dyson’s writing is uncomplicated, comprehensible, and riveting.
Review in one word, unputdownable.
Recommended By:
Anuj Magazine
Sr Director – Product Marketing, Balbix
Tip 1:
Effective communication - How do you say it? When you say it? How do you listen?
Prof. Sheshadri shared a beautiful story at a conference in Mysore. He spoke about a young teacher who was quite innovative. He kept trying new ways to teach his students. Many of his fellow teachers used to be sarcastic about it, passed comments like “Mr. Innovator, what is it you are doing today” and so on. One day the innovative teacher became quite frustrated because no one appreciated him for his work – neither his colleagues, nor his students. He was very disappointed. He expressed his frustration to his mother and said that he is never going to work on teaching differently anymore and would just lecture because there is recognition for his work. She told him that he had made a good decision and served him breakfast and asked him to eat. After he finished eating his breakfast, she asked him “Did you enjoy the breakfast, was it good?” and he instantly replied “Indeed. It was very delicious”. His mother told him “You have never told us even once that breakfast we make is wonderful. Did we ever stop making good food for you? Keep doing extraordinary work for the joy of it, because you love to do it!”
And his journey started again!
Reminders for Payments & Returns
To save a date into your calendar, select an event from the link and follow the optionsRegulatory Updates
MCA Updates
Companies (Registered Valuers and Valuation) Rules, 2017 - Amended
MCA vide notification dated 21 November 2022 has amended the Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules). Select amendments from the notifications are detailed below:
Rule 3 - Eligibility for Registered Valuers (RV): clause (f) added in sub-rule 2 stating that no partnership, entity or company shall be eligible to act as a RV unless it is a member of an RV organisation. Also, the proviso states that no RV shall be registered with more than 1 organisation at any given time. Already registered RVs shall have 6 months to comply with the said requirements.
Rule 7A – Intimation of change in personal details etc: RV is required to intimate any change in personal details, composition of directors or partners, modifications to MoA or partnership agreement. Fee details for the same form part of Annexure V to the Rules.
Annexure III of the Rules – Explanation inserted – the explanation inserted in Part II under sl.no X clarifies that a person who is a whole-time director in the company registered as RV shall not be considered as taking employment and the membership need not be surrendered. This clarification should have been extended to working partners in a partnership firm/LLP, also.
Ministry of Home Affairs Update
FCRA Guidelines relating to Foreign Hospitality
Vide Office Memorandum (OM) dated 21 November 2022 revised guidelines have been issued under FCRA relating to foreign hospitality. The relevant sections of FCRA, 2010 and FCRR, 2011 ( including definitions of Foreign Source, Foreign Hospitality, Legislature, person and political party) have been reproduced in the OM following which the procedure and guidelines for filing Form FC-2 have been detailed.
Brief of the relevant provisions and rules:
Restriction on acceptance of foreign hospitality - members of legislature, office bearer of political party, Judge, public servant, employee of any corporation or any other body owned or controlled by the Government are required to take permission prior to acceptance of any foreign hospitality.
However, prior permission shall not be required in case of emergent medical situations, provided the foreign hospitality so received and details of the same are intimated to the Central Government within 1 month. Such intimation shall not be required if the foreign contribution is upto INR 1 lakh.
Prior permission to be obtained ‘online’ – Form FC-2 to be filed online to procure prior permission.
Highlights of the guidelines introduced vide OM dated 21 November 2022:
Permission not required in certain cases: the guidelines contain a list of cases where prior permission in FC-2 is not required, including:
Where the entire expenditure of the foreign visit is borne by Central/State government or centre/state PSU.
Where the visit is undertaken purely for personal reasons and entire expense is borne by the said person.
Where the foreign hospitality is provided by an Indian national living in a foreign country.
Acceptance of assignment on salary, fee etc.
Visits for long term / short term training courses approved by the Ministry of Personnel, Training and Public Grievances.
Visits undertaken by Members of Indian Parliamentary delegation under bilateral exchange.
Each application should be accompanied with specific recommendations from the concerned Ministry/Department.
A copy of the offer/invitation containing details of the foreign hospitality being offered should be uploaded along with the application.
The application for grant of permission to accept foreign hospitality, complete in all respects, should be submitted online 2 weeks before the proposed date of onward journey.
Please refer the guidelines for complete details.
SEBI Updates
Amendments to LODR
The SEBI (LODR) (Sixth Amendment) Regulations, 2022 notified on 14 November 2022 has brought about certain amendments to the LODR Regulations, 2015. Highlights of the same are given below:
The above mentioned amendments shall be effective from 14 November 2022.
Open Notification No.SEBI/LAD-NRO/GN/2022/103 dtd.14 November 2022
Amendments to SEBI (AIF) Regulations
SEBI has notified the guidelines for AIFs for declaration of first close, calculation of tenure and change of sponsor/manager or change in control of sponsor/manager vide Circular dated 17 November 2022. Highlights of the Circular are as follows:
Timeline for declaration of First Close of schemes of AIFs:
First Close should not be later than 12 months from the date of communication from SEBI on taking the Private Placement Memorandum (PPM) on record.
In case of open-ended schemes of Category III AIFs, the First Close shall refer to the close of their Initial Offer Period.
Existing schemes of AIFs, who have not declared their First Close, shall declare their First Close not later than 12 months from the date of this circular.
Calculation of tenure of close-ended schemes of AIFs:
Tenure to be calculated from the date of declaration of First Close.
AIF can modify the tenure any time before declaration of First Close.
Fee for change in control of manager/sponsor or change in manager/sponsor of AIFs
Open Circular No. SEBI/HO/AFD-1/PoD/P/CIR/2022/155 dtd.17 November 2022
Applicability of SEBI (PIT) Regulations extended to Mutual Funds
Vide Notification dated 24 November 2022, the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) have been made applicable to Mutual Funds.
Earlier specific exemption was granted to Mutual Funds, vide the Notification the exemption has been omitted extending the applicability of PIT regulation to Mutual Funds as well.
Chapter IIA containing the restrictions on communication in relation to and trading by insiders in the units of Mutual Funds, has been inserted in the PIT Regulations.
Open Notification No. No. SEBI/LAD-NRO/GN/2022/108 dtd.24 November 2022
FAQs on Social Stock Exchange by BSE
BSE issued FAQs on Social Stock Exchange (SSE) on 23 November 2022. The FAQs covers various aspects including:
Registration criteria for not-for-profit organisations
How for-profit social enterprises can raise funds on SSE
Zero Coupon Zero Principal instruments
Social Auditor and Social Impact Assessment
RBI Update
Inclusion of GST Network as Financial Information Provider under Account Aggregator Framework
Vide Circular dated 23 November 2022, GST Network has been included in the list of Financial Information Providers (FIP) under Account Aggregator Framework (AA).
Financial Institutions which are part of the AA Framework can securely exchange financial information amongst them. GST Network has now been added to this framework. The financial information for this purpose shall mean the details filed in Form GSTR-1 and GSTR-3B. The Revenue Department shall be the regulator for this specific purpose.
GST Updates
Clarifications on refunds in case of inverted duty structure
CBIC vide Circular dated 10 November 2022 has clarified the following w.r.t. the inverted duty structure:
ITC and amendment to invoices – allowed till 30 November
CBIC has issued a notification dated 15 November 2022 allowing Input Tax Credit (ITC) claims and amendment of invoices till 30 November 2022. From last week, the GST portal has started allowing the amendment related to FY 2021-22 in October 2022 return period. This in line with the recent amendment in the GST Law wherein amendment can be done up to 30th Nov. of the next FY.
IT Update
Condonation of delay – Form No. 10A
CBDT condones delay in filing Form No.10A for which the extended due date was 31 March 2022.
As per the provisions of the Income-tax Act, 1961, Form 10A was required to be filed electronically by 30 June 2021, which was extended to 31 August 2021 and further extended to 31 March 2022 by Circular No. 16/2021 dated 29 August 2021. In view of the representations received by Central Board of Direct Taxes (CBDT) and with a view to avoid genuine hardship to taxpayers, the CBDT condones the delay in filing of Form 10A up to 25 November 2022 in respect of certain provisions of section 12A / section 10(23C) / section 80G / section 35 of the Income-tax Act, 1961.
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