Additional fee in case of delays in filing of applications with the CG U/s 233B(2) of the Companies Act, 1956

Companies (Fees on Applications) Rules, 1999 – Amendment in Notification No. GSR 501(E), dated 6-7-1999

NOTIFICATION no. G.S.R. 617(E), dated 7-8-2012

In exercise of the powers conferred by sub-section (1) of section 642, read with sub-section (2) of section 637A of the Companies Act, 1956 (1 of 1956), the Central Government hereby amends the notification of the Government of India in the erstwhile Ministry of Law, Justice and Company Affairs (Department of Company Affairs) number G.S.R. 501(E), dated the 6th July, 1999 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 6th July, 1999, namely:-

2. In the said notification, after sub-rule (3), and Table-III, the following sub-rule (4) and Table-IV shall be inserted, namely:-

“(4) In case of delays in filing applications with the Central Government under sub-section (2) of section 233B of the said Act, the fee as specified in the Table-IV below shall be applicable:

TABLE – IV

	Period of Delay	Fee Payable with the Application
	Upto 30 days	Two times of normal fee
	More than 30 days and upto 60 days	Four times of normal fee
	More than 60 days and upto 90 days	Six times of normal fee
	More than 90 days	Nine times of normal fee

Note: Normal fee means the fee as given in the Table-I above.”

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Company liable to pay service tax on services received from its Directors

Company liable to pay service tax on services received from its directors & Recipients of security services to discharge 75% of service tax liability

Company receiving services from the directors are being brought into tax net as new Notification No.  45/2012-ST, dated 7-8-2012 has clarified that in respect of services provided by the directors to company, liability to pay service tax would be on the company under reverse charge. Companies would be required to pay service tax on gross amount paid to directors. However, question arises whether all payments made by the company to directors would be covered by above reverse charge provisions.

In our view, services provided by directors as employee in the course of employer- employee relationship would not be covered by the said provision as employer-employee relationship activities are already excluded from the definition of service itself under section 65B (44) of the Finance Act.

Notification No. 45/2012-ST, dated 7-8-2012

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 30/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II , Section 3, Sub-section (i), vide number G.S.R. 472 (E), dated the 20th June, 2012, namely:-

In the said notification,-

(a)  in para I, in clause (A),-

  (i)  after the sub-clause (iv), the following sub-clause shall be inserted, namely :-

“(iva) provided or agreed to be provided by a director of a company to the said company;”;

 (ii)  in sub-clause (v), after the words “manpower for any purpose”, the words ” or security services” shall be inserted.

(b)  in para II, in the Table,-

  (i)  after Sl. No. 5, the following S. No. and entries shall be inserted, namely:-

“5A

in respect of services provided or agreed to be provided by a director of a company to the said company

Nil

100%”

(ii)  in Sl. No. 8, in the entries under the heading ‘Description of a service’, after the words “manpower for any purpose”, the words “or security services” shall be inserted.

Master Circular on Direct Investment by Residents in Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) Abroad

Direct investments by residents in Joint Venture (JV) and Wholly Owned Subsidiary (WOS) abroad are being allowed, in terms of clause (a) of sub-section (3) of section 6 of the Foreign Exchange Management Act, 1999, (42 of 1999) read with Notification No. FEMA 120/RB-2004 dated July 7, 2004, (GSR 757 (E) dated November 19, 2004), viz. Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, as amended from time to time.

This Master Circular consolidates the existing instructions on the subject of “Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad" at one place. The list of underlying circulars / notifications is furnished in the Appendix.

This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2013 and be replaced by an updated Master Circular on the subject.

Click here to download the MASTER CIRCULAR