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KPC Alert – Corporate Law, Income Tax and GST

March, 2018

Companies (Amendment) Act, 2017 A summary of the reporting under the draft Rules is as
Company Law

At the time of notification on January 3, 2018, the

applicability date of the Companies (Amendment) Act, 2017 Form Applicability Due Date
was not specified. Rather, sub-section (2) of section 1 of
the Amendment Act authorised the Central Government to
BEN-1 A registered owner ► within thirty
appoint different dates for applicability of different
shall file a declaration days from the
provisions of the Companies (Amendment) Act, 2017.
disclosing that he does date on which

In exercise of the powers conferred by sub-section (2) of not hold the entire his name is

section 1 of the Companies (Amendment) Act 2017, the beneficial interest in entered in the

MCA has already notified section 1 (Short title and shares with the register of

commencement) and section 4 (Memorandum) of the company members

Companies (Amendment) Act, 2017 which had come into ► within thirty

the force on January 26, 2018. days from date

of change in
The MCA appointed February 9, 20181 as the date on beneficial
which 42 provisions of the Companies (Amendment) Act, interest of
2017 shall come into force. shares

The Companies (Beneficial Interest and

BEN-2 A beneficial owner ► within thirty
Significant Beneficial Interest) Rules, 2018
shall file a declaration days after
disclosing his acquiring such
The Ministry of Corporate Affairs (MCA), in exercise of
beneficial interest in beneficial
powers conferred pursuant to Sections 89 and 90 of the
shares with the interest in the
Companies Act, 2013, issued the draft of the Companies
company shares
(Beneficial Interest and Significant Beneficial Interest)
► within thirty
Rules, 20182, which shall be notified pursuant to their
days from date
publication in the Official Gazette.
of change in
The Companies Act, 2013, contains Section 89 which beneficial
provides for declaration in respect of beneficial interest in interest of
any share. The Companies (Amendment) Act, 2017, also shares
contains minor modifications to the aforementioned
provisions. The Rules for the said provisions were not yet BEN-3 The company shall file within a period of
made and the Government has put the draft Rules for a return with the ROC thirty days from
public comments. in form BEN-3 for the date of receipt

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KPC Alert – Corporate Law, Income Tax and GST
March, 2018

The MCA has invited suggestions on the draft Rules till

Form Applicability Due Date
March 7, 2018.

declarations of of declaration by
The Companies (Registered Valuers and
beneficial ownership the company
received by it
Valuation) Amendment Rules, 20183

The Companies (Registered Valuers and Valuation) Rules,

BEN-4 Every individual, who ► within thirty
2017, provided for a transitional arrangement of up to
acting alone or days from the
March 31, 2017, for person allowed under the Companies
together, or through date of
Act, 2013, to act as registered valuer, without getting
one or more persons or commencement
registered under the Companies (Registered Valuers and
trust, including a trust of the Rules
Valuation) Rules, 2017.
and persons resident ► within thirty
outside India, holds days from date In light of the limited preparedness of the Registered Valuer
significant beneficial of change in Organisations under the Insolvency and Bankruptcy Board
interests in the significant of India, the said transitional arrangement has been
company beneficial extended up to September 30, 2018.
interest of
shares Companies (Removal of Difficulties) Order,
BEN-5 The company shall file within a period of
a return with the ROC thirty days from Re-appointment of an independent director under Section

in form BEN-5 for the date of receipt 149(10) of the Companies Act, 2013, required passage of a

declarations of of declaration by special resolution. However, removal of such a re-

significant beneficial the company appointed independent director under Section 169(1) of the

ownership received by Companies Act, 2013, required only an ordinary resolution.

it In view of the important position held by such independent

directors in the companies, a removal of difficulties’ Order,
providing that such removal shall also require a special
BEN-6 Format of register to be maintained by
resolution, is notified in the form of Companies (Removal of
Difficulties) Order, 2018.

BEN-7 Format of notice to be given by company for Centralised Communication Scheme, 2018
seeking information on beneficial interest
from shareholders The Central Board of Direct Taxes (CBDT) via Notification
No 12/2018 dated 22nd February, 2018 notifies
‘Centralised Communication Scheme, 2018’ for centralised

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KPC Alert – Corporate Law, Income Tax and GST
March, 2018

issuance of notices, in pursuance to Section 133C of the taxable. Other supplies of food by a hospital to
Income-tax Act, 1961 (Act). patients (not admitted) or their attendants or visitors
are taxable.
Under the Scheme, the notice shall be served through e-
mail, or by placing a copy in the registered account on the Simplification of the monthly GSTR-3B Return
portal followed by an intimation by SMS (Short Message
Service). The notice shall be issued under digital signature The format of filing the provisional monthly return in form
of the designated authority. GSTR 3B return has been made easier and more user
friendly. For guidance of taxpayers, an advisory to
Recent clarification on GST taxability of taxpayers on the improved GSTR-3B return filing process is
certain services available on the common portal The new
format has, inter alia, the following features:

A circular has been issued by CBEC to clarify the taxability

of various services under GST. Some of the clarifications ► Optimum utilization of input tax credit (ITC) is displayed

provided in the circular are as follows: by the system with a feature to edit it.
► The amount to be paid in cash after taking ITC into
► Hostel accommodation services provided by charitable account gets displayed.
trusts on students do not fall within the ambit of ► One-click challan preparation has been installed to
charitable activities for the purposes of GST and avoid payment of tax under wrong heads.
therefore are taxable under GST. However,
accommodation service in hostels, including such Ombudsman Scheme for Non-Banking
services by trusts, having declared tariff below one Financial Companies, 20185
thousand rupees per day is exempt.
► Fee paid by litigants in the Consumer Disputes As a pilot, the Reserve Bank of India has started the above
Redressal Commissions are not leviable to GST. Any Scheme with the object of enabling resolution of
penalty imposed or amount paid to these Commissions complaints free of cost, relating to certain aspects of
will also not attract GST. services rendered by certain categories of non-banking
► Services provided by senior doctors/consultants/ financial companies registered with the Reserve Bank, in
technicians hired by the hospitals, whether employees the cities Chennai, Kolkata, Mumbai and New Delhi, for
or not, are healthcare services which are exempt. The handling complaints from the respective zones, so as to
entire amount charged by the hospitals from the cover the entire country. The Scheme is currently
patients including the retention money and the applicable to NBFCs, which
fee/payments made to the doctors etc., is towards the
healthcare services provided by the hospitals to the ► are authorised to accept deposits; or

patients and is also exempt. Food supplied to the in- ► have customer interface, with assets size of one billion

patients as advised by the doctor/nutritionists is a part rupees or above, as on the date of the audited balance

of composite supply of healthcare and not separately sheet of the previous financial year

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This update contains general information which is provided on an “as

is” basis without warranties of any kind, express or implied and is not
5 intended to address any particular situation. The information contained
herein may not be comprehensive and should not be construed as
specific advice or opinion. This update should not be substituted for
any professional advice or service, and it should not be acted or relied
upon or used as a basis for any decision or action that may affect you
or your business. Views expressed are personal.