final

GST-Advance Rulings

11/2017-Central Tax (Rate) dated 28th June 2017 and
the rate of tax 18% having Description of service as
“Rental services of transport vehicles with or without
operators, other than (i) above.”

9. Sandvik Asia AAR No. Classification Query :

Pvt. Ltd. RAJ/AAR/ 1. Whether on facts and circumstances of the case,

2018-19/21 the maintenance services rendered on customers’

Dt. 12.10.18 - equipment under the two agreements i.e.

Rajasthan comprehensive maintenance services agreement

and supply of parts and services agreement which

also includes supply and replacement of spare parts

should be classified as ‘composite supply’?

2. In case the said agreements are considered as
composite supply, what is the principal supply
between goods and services?

3. In case services are considered as the principal
supply, what tax rate should be applicable?

4. In respect of the said agreements, what shall be
the relevant place of supply and type of tax which
needs to be discharged? (i.e. CGST & SGST or
IGST).

Ruling :

1. The activities performed under the ‘Comprehensive
Maintenance Contract’ are to be treated as a
composite supply of services and the activities
performed under ‘Equipment Parts Supply and
Services Agreement’ are to be treated as Mixed
Supply.

2. In respect of the activities performed under
‘Comprehensive Maintenance Contract’, the
supply of Operation & Maintenance services is the
principal supply and the supply of other services
are ancillary to such principal supply.

3. The service code for Maintenance and repair
services of commercial and industrial machinery
is 9987171 and the prescribed rate of GST is 18%
of the taxable value. For the supply of mixed
services, the applicant is liable to pay the highest
rate of tax as per Section 8(b) of the CGST Act,
2017.

Ahmedabad Chartered Accountants Journal November, 2018 contd. on page no. 500
497

GST & VAT CA. Bihari B. Shah
Judgments and [email protected]
Updates
2013-2014, the department suddenly took a
Important Judgments of Hon. Gujarat High different stand. After carrying out the provisional
Court: assessment, the respondent No. 2 – Assessing
Officer passed the impugned order of assessment
In the matter of classification in case of Godrej holding that the product in question is marketed in
Consumer Product Ltd. the Hon. Gujarat High four different colours which is used not for applying
Court has decided that the department cannot on hands and feet, but is used as hair dye or as a
change the determination given u/s. 80 which was hair-tonic. He, therefore, classified the product
accepted by the department and hence not revised under the residuary clause and taxed it accordingly.
by the department.
The petitioners have challenged this order of
Facts of the Case: assessment directly in this writ petition, though
statutory appeal remedy is available. According to
The company was selling ‘Godrej Nupur Mehendi’ the petitioners, the assessment order was without
without charging the Vat Tax because according to jurisdiction. The petitioners would rely on a
the determination it is fallen under the Entry No. determination order passed of the Commissioner
34 of Schedule-I which is Tax Free and the Deputy of Sales Tax on 31st December, 2013 in case of
Commissioner of Commercial Tax has taxed the one JK Sales in whose case, this very product came
same under residuary Entry No. 87 of Schedule – up for consideration. The view of the Commissioner
II which was set aside by the Hon. High Court and was that it was classifiable under Entry 34 of
the Petition is allowed. Schedule I. The petitioners would point that the
said JK Sales is a distributor of the petitioner No. 1
Held: company. Counsel for the petitioners submitted that
the department cannot ignore decision of the
The Petitioners are engaged in manufacturing and Commissioner in such determination order; more
selling of various products, including Godrej Nupur so when the department had not disputed such
Mehendi, which according to the petitioners is determination either by filing appeal or taking the
predominantly ‘Mehendi’ powder mixed with small order in revision. He further submitted that there
quantities of other ingredients to enhance its cannot be two different classifications of the same
function as mehendi. Majority of these ingredients product in the hands of manufacturer vis-à-vis the
are natural products like amla, jaswant, bringraj etc. distributors.
The popular use of these products are application
on hair, hands and legs.According to the petitioners, The Ld. AGP on the other hand opposed the petition
therefore, the product would fall within description contending that the determination order was not
of Entry 34 of Sch. I to the Vat Act pertaining to passed in case of these petitioners. The Assessing
Henna powder/Mehendi which invites no duty. Officer has recorded proper reasons to distinguish
such order. The Ld. AGP noted that in the
Petitioners also pointed out that for years together, determination order, the focus was on the use of
theVat authorities accepted petitioners’classification the product as ‘Henna’ to be applied on hands and
of the product under the said entry under the Vat
Act and previously under the corresponding entry
under the Sales Tax Act. However, for the year

498 Ahmedabad Chartered Accountants Journal November, 2018

feet. The Assessing Officer has recorded that the GST & VAT Judgments and Updates
product comes in four different colours; is used
predominantly on hair and it is more in the nature taken a different view unless there had been any
of hair-dye or hair-tonic. material change.

During the course of assessment, the petitioners In the present case, one more additional feature is
relied on such determination order. The Assessing that the very same product in the hands of distributor
Officer; as noted, distinguished it by recording that would be classified as ‘Mehendi’ under Entry 34
the petitioners’ product is used more as a hair-dye of Schedule – I; as per the determination order. If
or as a hair-tonic, and whereas, consideration before we accept the order of assessment passed in the
the Commissioner of the product, it is stated to be present case, in the hands of the manufacturer, the
used as Mehendi on hands and feet. In our opinion, product would be classified under ‘residuary entry’
the Assessing Officer committed serious error in inviting higher tax. Quite apart from
discarding the determination order passed by the impermissibility of such an incongruent situation,
Commissioner. Section 80 of the Vat Act pertains perhaps, the entire mechanism of providing and
to determination of disputed questions. Sub-section passing of tax credit upon successive sales break
(1) of Section 80 authorizes the Commissioner to down in such a situation. Under the circumstances,
pass an order determining the question inter alia as the impugned order dated 31st March 2018 is set
to whether any tax ia payable in respect of any aside. Petition is allowed and disposed of
particular sale or purchase or if tax is payable, the accordingly.
rate thereof. Once such a determination order is
passed by the Commissioner, it would bind the Gist of Advance Rulings given by the Authority
parties before the Commissioner, which would of Gujarat under the GST Act:
include the assessee who might have urged the
Commissioner to make the determination and [i] Teachers Slate and Students Slate are designed
necessarily the department; unless of course either to be used for writing or drawing with slate
side has chosen to dispute such order in terms of pen and chalk and are classifiable under Tariff
appeal or revision provisions made under the Act. Heading 96.10 [Raja Slates (P) Ltd. July 30,
The Courts have held that in so far as assessee is 2018].
concerned, the said order can bind only the parties
before the Commissioner. In other words, in relation [ii] Activity provided by UCMAS (child
to the same product, if some other dealer or development programme to boost brainpower)
manufacturer wishes to dispute the classification, using abacus does not merit classification under
the Department cannot cite the determination order Sl. No. 80 of Notification No. 12/2017-Central
in case of some other assessee. However, unless Tax (Rate) which exempts services by way of
the department has questioned the order of training or coaching in recreational activities
determination passed by the Commissioner, it would relating to arts or culture or sports. The words
bind the Department in relation to other assessees ‘recreational activities’ and ‘arts’ have not been
also. defined in the GST law. As per dictionary
meaning, ‘art’ is the expression or application
The Division Bench of this Court, in the case of of human creative skill and imagination,
West Coast Waterbase Private Limited and Anr. typically in a visual form such as painting or
Vs. State of Gujarat and Anr. Reported in [2016] sculpture, producing works to be appreciated
95 VST 370 (GUJ), after referring to various primarily for their beauty or emotional power,
judgments, held that the Assessing Officer was Improvement of speed and accuracy of
bound by the order of determination passed by calculations or development of mental
the Deputy Commissioner and could not have capabilities, such as, concentration,
observation, visualization, imagination and
memory cannot be said to fall within the
meaning of ‘art’, therefore the exemption
provided vide Sl. No. 80 of Notification No.

Ahmedabad Chartered Accountants Journal November, 2018 499

GST & VAT Judgments and Updates assessee carries out blasting work with the said
of explosives. Thus, there was deemed supply
12/2017-Central Tax (Rate) dated 28.06.2017 of explosives as well as the supply of service
and corresponding Notification Sl. No. 83 of in the form of the blasting work. Therefore,
Notification No. 9/2017-Integrated Tax (Rate) the situation as narrated by the assessee was a
issued under IGST Act, 2017 is not admissible. composite supply of goods and services and
[Omnisoft Technologies (P) Ltd. July 30, 2018] would be covered by Section 2(30) and Section
8(a) of the CGST Act, 2017 and the GGST
[iii] Blasting activity carried out by assessee is a Act, 2017. [Khedut Hat, August 27, 2018].
‘composite supply’ of goods and services and
shall be covered by Section 2(30) and Section hhh
8(a) of the CGST Act, 2017 and the Gujarat
Goods and Service Tax Act, 2017.

In the present case assessee uses explosives in
the blasting activity at their client’s site. Thus,
it would be evident that blasting activity was
carried out by the assessee for their client for
which the assessee uses explosives. The

contd. from page 497 GST-Advance Rulings

4. As the query raised by the applicant does not fall
in the categories mentioned under Section 97 (2)
of CGST Act, 2017, hence the same is accordingly
disposed off.

10. Modern AAR No. Classification Query :
Food
Enterprises KER/23/ Classic Malabar Parota - Whole Wheat Malabar Parota
Pvt. Ltd.
2018 Dt. - whether classified as bread classifiable under Heading

12.10.2018 – 1905 and eligible for GST exemption or not -

Kerala exemption from GST vide Notification No. 2/2017 -

Central Tax

Ruling :

- Classic Malabar Parota’ and ‘Whole Wheat
Malabar Parota’ classified under Schedule III of
GST Laws, vide Heading 2106 ‘Food preparations
not elsewhere specified or included’and is taxable
@18% GST.

- Eligibility of exemption from GST vide
Notification No.2/2017 - Central Tax is applicable
only for specific commodity ‘Bread branded or
otherwise’ covered under HSN 1905.

hhh

500 Ahmedabad Chartered Accountants Journal November, 2018

Corporate
Law Update

CA. Naveen Mandovara
[email protected]

MCA Updates:

1. Companies (Registered Valuers and Valuation) Fourth Amendment Rules:

Following changes have been made vide the Companies (Registered Valuers and Valuation) Fourth
Amendment Rules, 2018:

Rule No. of the Effect of the amendment
Principal Rules

Rule 1 For the marginal heading, the following marginal heading shall be
substituted, namely:- “Short title, commencement and application”

Sub rule (3) After sub-rule (2), the following sub-rule shall be inserted, namely:-
“(3) These rules shall apply for valuation in respect of any property,
stocks, shares, debentures, securities or goodwill or any other assets
or net worth of a company or its liabilities under the provision of the
Act or these rules.

Explanation.- It is hereby clarified that conduct of valuation under
any other law other than the Act or these rules by any person shall not
be affected by virtue of coming into effect of these rules.”

Sub-rule (2) in rule 3 In clause (a), the word “not” shall be omittedIn clause (c), after the
brackets and letter “(e)”, the brackets and letter “(f),” shall be inserted

Rule 4 In clause (c), the words, brackets and letters “and having qualification
mentioned at clause (a) or (b)” shall be omitted.

In Explanation II, the words “and examination or training” shall be
omitted.after Explanation II, the following Explanation shall be inserted,
namely :-”

Explanation III. For the purposes of this rule and Annexure IV,
‘equivalent’shall mean professional and technical qualifications which
are recognised by the Ministry of Human Resources and Development
as equivalent to professional and technical degree.”

Rule 10 The words “and he may conduct valuation as per these rules if required
under any other law or by any other regulatory authority” shall be
omitted.

Rule 11 The Explanation shall be omitted.

Rule 12 In sub-rule(1), in clause (ii), for the words “a professional institute”,
the words “it is a professional institute” shall be substituted.

Ahmedabad Chartered Accountants Journal November, 2018 501

Corporate Law Update

Annexure IV The following Annexure shall be substituted, namely:

“Annexure IV”
Eligibility Qualification and Experience for Registration as Valuer

(See Explanation II to rule 4)

Asset Class Eligibility Experience in
Qualifications specified discipline

Plant and Machinery (i) Graduate in Mechanical, Electrical, (i) Five years
Electronic and Communication,
Electronic and Instrumentation,
Production, Chemical, Textiles, Leather,
Metallurgy or Aeronautical Engineering,
or Graduate in Valuation of Plant and
Machinery or equivalent;

(ii) Post Graduate on above courses. (ii) Three years

Land and Building (i) Graduate in Civil Engineering, (i) Five years
Architecture, or Town Planning or
equivalent;

(ii) (Post Graduate on above Courses and (ii) Three years
also in valuation of land and building or
Real Estate Valuation (a two-year full time
post-graduation course).

Securities or Financial Assets i) Member of Institute of Chartered Three years
Accountants of India, Member of Institute
of Company Secretaries ofIndia, Member
of the Institute of Cost Accountants of
India, Master of Business Administration
or PostGraduate Diploma in Business
Management (specialisation in finance).

(ii) Post Graduate in Finance

Any other asset class along with corresponding qualifications and experience in accordance with rule 4 as
may be specified by the Central Government.

Note.- The eligibility qualification means qualification obtained from a recognised Indian University or
equivalent Institute whether in India or abroad.”.

[F. No. 1/27/2013-CL-V (part) dated 13.11.2018]

2. National Financial Reporting Authority Rules (NFRA):-

The MCA has notified the National Financial Reporting Authority Rules, 2018, major provisions of
which are under:

Companies and bodies (1) The Authority shall have power to monitor and enforce compliance
corporate governed by with accounting standards and auditing standards, oversee the
the Authority quality of service under sub-section (2) of section 132 or undertake
investigation under sub-section (4) of such section of the auditors

502 Ahmedabad Chartered Accountants Journal November, 2018

Corporate Law Update

of the following class of companies and bodies corporate, namely:-

(a) companies whose securities are listed on any stock exchange
in India or outside India;

(b) unlisted public companies having paid-up capital of not less
than rupees five hundred crores or having annual turnover of
not less than rupees one thousand crores or having, in aggregate,
outstanding loans, debentures and deposits of not less than
rupees five hundred crores as on the 31st March of immediately
preceding financial year;

(c) insurance companies, banking companies, companies engaged
in the generation or supply of electricity, companies governed
by any special Act for the time being in force or bodies corporate
incorporated by an Act in accordance with clauses (b), (c), (d),
(e) and (f) of sub-section (4) of section 1 of the Act;

(d) any body corporate or company or person, or any class of bodies
corporate or companies or persons, on a reference made to the
Authority by the Central Government in public interest; and

(e) a body corporate incorporated or registered outside India, which
is a subsidiary or associate company of any company or body
corporate incorporated or registered in India as referred to in
clauses (a) to (d), if the income or networth of such subsidiary
or associate company exceeds twenty per cent. of the
consolidated income or consolidated networth of such
company or the body corporate, as the case may be, referred to
in clauses (a) to (d).

(2) Every existing body corporate other than a company governed by
these rules, shall inform the Authority within thirty days of the
commencement of these rules, in Form NFRA-1, the particulars
of the auditor as on the date of commencement of these rules.

(3) Every body corporate, other than a company as defined in clause
(20) of section 2, formed in India and governed under this rule
shall, within fifteen days of appointment of an auditor under sub-
section (1) of section 139, inform the Authority in Form NFRA-1,
the particulars of the auditor appointed by such body corporate:

Provided that a body corporate governed under clause (e) of sub-
rule (1) shall provide details of appointment of its auditor in Form
NFRA-1.

(4) A company or a body corporate other than a company governed
under this rule shall continue to be governed by the Authority for a
period of three years after it ceases to be listed or its paid-up capital
or turnover or aggregate of loans, debentures and deposits falls
below the limit stated therein.

Ahmedabad Chartered Accountants Journal November, 2018 503

Corporate Law Update

Functions and duties The Authority shall:
of the Authority (a) maintain details of particulars of auditors appointed in the companies

Filing of Annual and bodies corporate specified in rule 3;
return by Auditors
Power to investigate (b) recommend accounting standards and auditing standards for
approval by the Central Government;

(c) monitor and enforce compliance with accounting standards and
auditing standards;

(d) oversee the quality of service of the professions associated with
ensuring compliance with such standards and suggest measures
for improvement in the quality of service;

(e) promote awareness in relation to the compliance of accounting
standards and auditing standards;

(f) co-operate with national and international organisations of
independent audit regulators in establishing and overseeing
adherence to accounting standards and auditing standards; and

(g) perform such other functions and duties as may be necessary or
incidental to the aforesaid functions and duties.

Every auditor referred to in rule 3 shall file a return with the Authority
on or before 30th April every year in such form as may be specified by
the Central Government.

(1) Where the Authority has-

(a) received any reference from the Central Government for
investigation into any matter of professional or other misconduct
under sub-section (4) of section 132 of the Act;

(b) decided to undertake investigation into any matter on the basis
of its compliance or oversight activities; or

(c) decided to undertake suo motu investigation into any matter of
professional or other misconduct, after recording reasons in
writing for this purpose,

it shall forward the matter to its Division dealing with enforcement for
carrying out investigation and other action.

For detailed text, please refer http://www.mca.gov.in/Ministry/pdf/NFRARules2018_13112018.pdf
[F. No. 1/4/2016-CL-I, Part-I dated 13.11.2018]

504 Ahmedabad Chartered Accountants Journal November, 2018

Corporate Law Update

3. The Companies (Amendment) Ordinance 2018:

The Companies (Amendment) Ordinance, 2018 was promulgated on November 2, 2018. Summary of
the changes effected through this Ordinance are as mentioned hereunder:

Section Effect of the Ordinance

Substitution of First In case of Indian company having Holding/ Subsidiary/ Associate
proviso to section 2(41) Company situated outside India, it is allowed the change the financial
year as per such company with the approval of Central Government.
Powers have been shifted to the Central Government instead of the
Tribunal.

Insertion of Section 10A Filing a declaration with the Registrar of Companies by a company
having share capital before it commences its business or exercises
borrowing power has been made mandatory. In case of non filing of
such declaration within 180 days, Registrar of Companies may initiate
action for removal of name of Company. The Company is also required
to file a verification of its registered office.

Insertion of Section 12(9) If the Registrar of Companies has reasonable cause to believe that the
Company is not carrying on any business or operation, he may cause
a physical verification of the Registered Office of the Company and
in case of default, he may initiate action for removal of name of
Company.

Substitution of Second In case of Conversion of a Public Company into Private Limited
proviso to section 14(1) Company, the power to approve is shifted from Tribunal to Central
Government.

Substitution of Section 53(3) In case of non-compliance of Section 53, which is relating to Prohibition
of issue of shares at a discount, the company and every officer in
default shall be liable to a penalty of Rs. 5 lakhs or amount raised
through issue of shares at discount, whichever is less.

Substitution of Section 64(2) In case of failure or delay in filing notice for alteration of share capital,
the company and every officer in default shall be liable to a penalty of
Rs. 1,000/- for each day of default or Rs. 5 lakhs, whichever is less.

Substitution of first and Registration of charges is now permitted: (i) within 300 days, if the
Second proviso to charge is created before the Ordinance, or (ii) within 60 days, if the
section 77(1) charge is created after the Ordinance. If the charge under the first
category is not registered within 300 days, it must be completed within
six months from the date of the Ordinance. If the charge under the
second category is not registered within 60 days, the Registrar may
grant another 60 days for registration.

Insertion of Section 86(2) If a person wilfully furnishes false or incorrect information, or
suppresses material information which is required to be registered under
the provisions of section 77, he shall be liable for action under section
447.

Ahmedabad Chartered Accountants Journal November, 2018 505

Corporate Law Update

Section Effect of the Ordinance

Substitution of Section 87 If the omission to give intimation to the Registrar of the payment or
satisfaction of a charge within the required time or the omission or
misstatement of any particulars with respect to any such charge or
modification or satisfaction was accidental or due to inadvertence, the
Central Government may extend the time or allow to rectify the
omission or misstatement.

Substitution of Section 90(9) In the matter pertaining to beneficial ownership, the Company or person
aggrieved by the order of the Tribunal may apply within one year
from the date of such order to the Tribunal for relaxation. If he/it does
not file such application within one year, such shares shall be transferred
to the Authority constituted for IEPF.

Substitution of Section 90(10) In case of failure to submit a declaration by any person required under
section 90(1), he shall be punishable with imprisonment for a term
which may extend to one year or with fine up to Rs. 10 lakhs or both.

Substitution of Section 92(5) In case of failure or delay in filing annual return before the expiry of
the specified period, the company and every officer in default shall be
liable to a penalty of Rs. 50,000/-for each day of default subject to a
maximum of Rs. 5 lakhs.

Substitution of Section 102(5) In case of non compliance of the provisions relating to statement to be
annexed to notice calling for general meeting, every promoter, director/
KMP who is in default shall be liable to a penalty of Rs. 50,000/- or 5
times of the benefit accruing to the promoter, director/KMP or manager,
whichever is higher.

Substitution of Section 105(3) In case of default in providing a declaration regarding appointment of
proxy in a notice calling for general meeting, every officer in default
shall be liable to a penalty of Rs. 5,000/-.

Substitution of Section 117(2) In case of failure or delay in filing certain resolutions or agreements
which are required to be filed before the expiry of specified period,
the company shall be liable to a penalty of Rs. One Lakh and Rs. 500/
-for each day of default subject to a maximum of Rs. 25 lakhs.

Substitution of Section 121(3) In case of failure or delay in filing Report on AGM by public listed
company, which is required to be filed before the expiry of specified
period, the company shall be liable to a penalty of Rs. One Lakh and
Rs. 500/- for each day of default subject to a maximum of Rs. 5 lakhs
and every officer in default shall be liable to a penalty not less than Rs.
25000/- and Rs. 500/- for each day of default subject to a maximum of
Rs. One lakh.

Substitution of Section 137(3) In case of failure or delay in filing a copy of financial statement to be
filed with Registrar, which is required to be filed before the expiry of
specified period, the company shall be liable to a penalty of Rs. One
Thousand for each day of default subject to a maximum of Rs. 10

506 Ahmedabad Chartered Accountants Journal November, 2018

Corporate Law Update

Section Effect of the Ordinance

lakhs and its Managing Director and CFO shall be to a penalty of Rs.
One Lakh and Rs. 100/-for each day of default subject to a maximum
of Rs. Five lakhs.

Substitution of Section 140(3) In case of failure or delay in filing the statement by auditor after
resignation, he or it shall be liable to a penalty of Rs. 50,000/- and Rs.
500/- for each day of default subject to a maximum of Rs. Five lakhs.

Substitution of Section 157(2) In case of failure or delay by Company to inform Director Identification
Number to Registrar, the company shall be liable to a penalty of Rs.
25,000/- and Rs. 100/-for each day of default subject to a maximum
of Rs. One lakh and every officer in default shall be liable to a penalty
not less than Rs. 25,000/- and Rs. 100/-for each day of default subject
to a maximum of Rs. One lakh.

Substitution of Section 159 In case of contraventions related to DIN under section 152, 155 and
156 , such individual or director shall be liable to a penalty which may
extend to Rs. 50,000/- and Rs. 500/-for each day of default.

Insertion of Section 164(1)(i) If a person has not complied with the provisions of section 165(1), i.e.
Holds directorships in more than the prescribed no. of companies,
then also he shall be disqualified for appointment of director.

Substitution of Section 165(6) If a person accepts an appointment as a director in excess of the
prescribed no. of directorships, he shall be liable to a penalty of Rs.
5,000/- for each day of default.

Substitution of Section 191(5) If a payment to Director for Loss of Office, etc., in connection with
transfer of undertaking, property or shares is made in contravention of
provisions of section 191, such director shall be liable to a penalty of
Rs. One Lakh.

Section 197(7) Conditions relating to independent directors are omitted.

Substitution of Section If a person has not complied with the provisions of section 197, he
197(15) shall be liable to a penalty which of Rs. One Lakh and if the default is
made by the Company, the Company shall be liable to a penalty of
Rs. Five Lakhs.

Substitution of Section 203(5) In case of default of provisions relating to the Appointment of KMPs
in certain class of Companies, the company shall be liable to a penalty
of Rs. Five Lakhs and every Director or KMP in default shall be liable
to a penalty of Rs. 50,000/- and Rs. 1,000/-for each day of default
subject to a maximum of Rs. Five lakhs.

Substitution of Section 238(3) In case of registration of offer of schemes involving transfer of shares,
a director who issues a circular which has not been presented for
registration and registered, he shall be liable to a penalty of Rs. One
Lakh.

Ahmedabad Chartered Accountants Journal November, 2018 507

Corporate Law Update

Section Effect of the Ordinance

Substitution of Section For the words and figures “section 455”, for the words and figures
248(1)(c) “section 455; or” shall be substituted.

Insertion of Section (d) The subscribers to the Memorandum have not paid the subscription
248(1)(d) & (e) which they had undertaken to pay at the time of incorporation of a
company and a declaration to this effect has not been filed within 180
days of its incorporation under section 10A(1) or.

(e) The Company is not carrying on any business or operations, as
revealed after physical verification carried out under section 12(9).

Substitution of Section Compounding of Certain Offences, where the maximum amount of
441(1)(b) fine which may be imposed for such offence does not exceed twenty
five lakh rupees, such offences shall be compounded by the Regional
Director or any officer authorised by the Central Government.

Substitution of Section 441(6) Section 441(6)(a), which required the permission of the Special Court
for compounding of offences, being redundant, has been omitted.

Substitution of Section 446B In the provision relating to the penalties for One Person Companies or
small companies, the portion beginning with “punishable with fine”
and ending with “specified in such sections”, the words “liable to a
penalty which shall not be more than one half of the penalty specified
in such sections” shall be substituted.

Substitution of Second For the words “Twenty Lakh Rupees”, the words “fifty lakh rupees”
Proviso to section 447 shall be substituted.

Substitution of Section 454(3) The adjudicating officer may impose the penalty and also give the
direction to rectify the default.

Substitution of Section Default would occur when the company or the officer in default would
454(8)(i) & (ii) fail to comply with the order of the adjudicating officer or the Regional
Director.

Insertion of Section 454A This new section provides that where a penalty in relation to a default
has been imposed on a person under the provisions of CA 2013, and
the person commits the same default within a period of three years
from the date of order imposing such penalty, passed by the adjudicating
officer or Regional Director as the case may be, it or he shall be liable
for the second and every subsequent defaults for an amount equal to
twice the amount provided for such default under the relevant provision
of Companies Act, 2013.

hhh

508 Ahmedabad Chartered Accountants Journal November, 2018

Allied Laws Adv. Ankit Talsania
Corner [email protected]

Insolvency and Bankruptcy Code, 2016 3. Pursuant to the aforesaid, the Financial Creditor
disbursed the amount of Rs. 5,00,00,000/- on
Application to CIRP must be admitted where the 05.03.2010 through RTGS from its account
cheuqes issued by the Corporate Debtors are maintained with Axis Bank at Vapi.
dishonored on several occasions.
4. The Corporate Debtor, in order to liquidate
Arete Services (P.) Ltd. vs. Soma Network its liability, issued three cheques each for Rs.
Engineering (P.) Ltd. 99 taxmann.com 67 5 crores each along with three cheques
(NCLT – New Delhi) towards interest on 01.08.2010, 01.03.2011
& 15.10.2011 respectively, from its account
A. Facts of the Case : maintained with Bank of America.
However, the request was made, every time
1. An amount of Rs. 5,00,00,000/- was lent by after issuance of the cheques, by the
the Financial Creditor to the Corporate Debtor, Corporate Debtor not to present the cheques
under a Bridge Loan Agreement dated for clearance and more time was asked by
27.02.2010, executed between the Financial the Corporate Debtor to repay.
Creditor and the Corporate Debtor. The loan
was to be repaid by 31.07.2010 with interest 5. The Corporate Debtor issued an
@ 10% per annum. The parent of the Corporate undertaking in favour of the Financial
Debtor, namely, Soma Networks, Inc, a Creditor on 30.12.2011, accepting the
corporation incorporated under the laws of the outstanding due amount and promising to
State of California and having its registered pay the same on or before 15.01.2012. The
office at 650 Townsend Street, Suite 304, San Corporate Debtor again repeated his act of
Francisco, California, stood guarantor for requesting not to deposit the cheques.
repayment of the amount of loan advanced to Thereafter on 23.03.2012, it issued replaced
the Corporate Debtor. The said parent of the cheques with the earlier one dated
Corporate Debtor was also party to the said 31.05.2012 from its Punjab National Bank
Bridge Loan Agreement. Account, requesting to deposit the said
cheques on 01.06.2012. Again, it defaulted
2. A promissory note dated 27.02.2010 was in adhering to the time-limit and further
executed by the Corporate Debtor in favour of issued replaced cheques dated 30.08.2012
the Financial Creditor for securing the aforesaid which were also requested not to be
loan. The promissory note was payable on deposited. Thereafter the Corporate Debtor
demand at any time after 05.09.2010. In the issued fresh cheques dated 30.11.2012
light of the terms and conditions stated in the which was presented for clearance on
aforesaid loan agreement it was also settled 25.02.2013. The said cheque was
between the parties that an additional late fee dishonoured with a remark of ‘insufficient
of 2% of the due amount was payable by the funds’.
Corporate Debtor if there was failure to pay
the due amount.

Ahmedabad Chartered Accountants Journal November, 2018 509

Allied Laws Corner filing reply and ordered listing of the matter on
10.07.2018. However, again time was sought
6. Feeling aggrieved from the aforesaid act of the on 10.07.2018 and the NCLT had granted one
Corporate Debtor, a complaint under Section last opportunity to file reply and fixed the matter
138 read with Section 142 of the Negotiable on 31.07.2018. On 31.07.2017 the NCLT had
Instrument Act bearing Criminal Case No. 714/ saddled the respondent with cost of Rs. 20000/
2016 was filed by the Financial Creditor against - on account of non-filing of reply, further
Mr. Yatish Pathak, Director of the Corporate granted a week time for the said purpose and
Debtor, the Corporate Debtor and Soma ordered for listing the matter on 28.08.2018.
Networks Inc. In addition to the recourse under On 28.08.2018 the position remained the same,
Negotiable Instrument Act, a recovery however, in the interest of justice, the NCLT
proceedings under Order XXXVII of Civil had again granted one week time to the
Procedure Code were also initiated by the respondent for filing reply subject to payment
Financial Creditor-Plaintiff before the of Rs. 20,000/- as cost. In the said order the
Commercial Court at Vadodara by filing NCLT had further made it clear that if the reply
Commercial Suit bearing Civil Suit No. 239/ is not filed within one week and/or cost is not
2016. In the said recovery proceeding a decree paid then the defenceof the respondent was to
dated 04.09.2017 was passed by the learned be struck off and no reply was to be taken on
Commercial Court. The operative portion of record.
the said decree dated 04.09.2017, which reads
as under:— 2. Thereafter on 26.09.2018 neither the cost was
paid nor any reply was filed by the Corporate
“The plaintiff do recover a sum of Rs. Debtor inspite of direction issued by the NCLT
7,44,45,205/- (Rupees Seven Crores Forty-four on various occasions.
Lacs Forty-five Thousand Two Hundred five
only) from the defendants jointly and severally 3. Mr. J.K. Chaudhary, learned Counsel for the
along with interest @ 9% p.a. from the date of petitioner has argued that all requirements of
filing the suit till realization of the amount. Section 7 of the Code for initiation of Corporate
Insolvency Resolution Process by a Financial
The defendants shall pay the cost of this Creditor stand fulfilled. In that regard, he has
litigation to the plaintiff.” submitted that the application is complete as
per the requirements of Section 7 (2) of the
7. In column 2 of part IV the amount claimed to Code and other conditions prescribed by Rule
be in default and the date on which the default 4 (1) of the Insolvency and Bankruptcy
had occurred, have been detailed. According (Application to Adjudicating Authority) Rules,
to the averments made by the Financial 2016. He has further submitted that the details
Creditor-Arete Services Private Limited the of default along with its dates have been clearly
aforesaid facility availed by the Corporate stated in part IV along with all the minute
Debtor are overdue and total amount in default details. There is overwhelming evidence to
on the day of filing the present application is prove default and name of the resolution
Rs. 9,41,51,289 (Rupees Nine Crores Forty professional has also been clearly specified.
One Lakhs Fifty One Thousand Two Hundred
and Eighty Nine). 4. Learned counsel for the Corporate Debtor was
given opportunity to address argument on the
B. Findings of the Hon’ble National Company basis of material on record. However, he made
Law Tribunal : an attempt to address arguments on the basis
of some material which is not on record but
1. After service of notice when the matter came has been kept in his brief. Such a course is not
up for consideration on 06.06.2018 learned
counsel for the respondent sought time to file
reply. They were granted two weeks’ time for

510 Ahmedabad Chartered Accountants Journal November, 2018

available in view of the order dated 28.08.2018 Allied Laws Corner
passed by us whereby direction was issued that
in case reply was not filed then the defence of days as clarified by Explanation to Regulation
the respondent was to be struck off and no reply 6 (1) of the IBBI (Insolvency Resolution
was to be taken on record, and, inspite of said Process for Corporate Persons) Regulations,
specific direction no reply has been filed. He 2016.
could not successfully dispute the amount
disbursed, default and the date when the default 9. The NCLT also declare moratorium in terms
occurred. of Section 14 of the Code. A necessary
consequence of the moratorium flows from the
5. After hearing learned counsel the NCLT may provisions of Section 14 (1) (a), (b), (c) & (d)
first examine the provisions of Section 7 (2) and thus the following prohibitions are imposed
and Section 7 (5) of IBC which read as under:— which must be followed by all and sundry:

xxx…. xxx….

6. A conjoint reading of the aforesaid provision 10. It is made clear that the provisions of
would show that form and manner of the moratorium shall not apply to (a) such
application has to be the one as prescribed. transactions which might be notified by the
It is evident from the record that the Central Government in consultation with any
application has been filed on the proforma financial regulator; (b) a surety in a contract of
prescribed under Rule 4 (2) of the guarantor to a Corporate Debtor. Additionally,
Insolvency and Bankruptcy (Application to the supply of essential goods or services to the
Adjudicating Authority) Rules, 2016 read Corporate Debtor as may be specified is not to
with Section 7 of the Code. The NCLT was be terminated or suspended or interrupted
satisfied that a default amounting to lacs of during the moratorium period. These would
rupees has occurred within the meaning of include supply of water, electricity and similar
Section 4 of the Code and the application other services or supplies as provided by
under sub section 2 of Section 7 is complete; Regulation 32 of IBBI (Insolvency Resolution
and no disciplinary proceedings are pending Process for Corporate Persons) Regulations,
against the proposed Interim Resolution 2016.
Professional. Thus, the application warrant
admission as it is complete in all respects. 11. The Interim Resolution Professional shall
perform all his functions religiously and strictly
7. As a sequel to the above discussion, this petition which are contemplated, interalia, by Sections
is admitted and Mr. Alok Chandra Singh, G- 15, 17, 18, 19, 20 &21 of the Code. He must
10, Express Apartments, Sector 4, Vaishali, follow best practices and principles of fairness
Ghaziabad, Uttar Pradesh-201010, email id - which are to apply at various stages of
[email protected], Registration No. Corporate Insolvency Resolution Process. His
IBBI/IPA-002/IP-N00381/2017-18/11124 is conduct should be above board & independent;
appointed as an Interim Resolution and he should work with utmost integrity and
Professional. honesty. It is further made clear that all the
personnel connected with the Corporate Debtor,
8. In pursuance of Section 13 (2) of the Code, we erstwhile directors, promoters or any other
direct that Interim Insolvency Resolution person associated with the Management of the
Professional to make public announcement Corporate Debtor are under legal obligation
immediately with regard to admission of this under Section 19 of the Code to extend every
application under Section 7 of the Code. The assistance and cooperation to the Interim
expression ‘immediately’ means within three Resolution Professional as may be required by
him in managing the affairs of the Corporate
Debtor. In case there is any violation committed

Ahmedabad Chartered Accountants Journal November, 2018 511

Allied Laws Corner “Despite the time of two weeks granted on
6.6.2018 reply has not been filed. A request
by the ex-management or any tainted/illegal has been made for further time. One last
transaction by ex-directors or anyone else the opportunity is granted to file reply within a
Interim Resolution Professional/Resolution week with a copy in advance to the counsel
Professional would be at liberty to make for the petitioner.”
appropriate application to this Tribunal with a
prayer for passing an appropriate order. The A perusal of the order shows the time was first
Interim Resolution Professional/Resolution granted on 06.06.02018 to the respondent to
Professional shall be under a duty to protect file reply and thereafter one last opportunity was
and preserve the value of the property of the granted on 10.07.2018. However, no reply has
‘Corporate Debtor’ as a part of its obligation been filed and request for further time has been
imposed by Section 20 of the Code and perform made. Let the reply be now filed within a week
all his functions strictly in accordance with the with a copy in advance to the counsel for the
provisions of the Code. applicant and, the same shall be subject to
payment of Rs. 20,000/-as a cost.
12. Before parting we wish to observe about the
approach adopted by the Corporate Debtor- Rejoinder, if any, be filed within a week
Respondent. In that regard it would be thereafter.
appropriate to refer to the orders granting time
to the Corporate Debtor-Respondent for filing List for arguments on 28.08.2018.
reply. The aforesaid position would become
evident from a series of orders dated Order dated 28.08.2018
06.06.2018, 10.07.2018, 31.07.2018 &
28.08.2018 which are set out below:— On 31.07.2018 we have saddled the respondent
with cost of Rs. 20,000/- on account of non-
Order dated 06.06.2018 filing of reply despite granting last opportunity
on 10.07.2018. The cost has not been paid and
‘Learned counsel for respondents seeks and is again a request has been made for further time
granted two weeks’time to file reply. Let reply to file reply. The CIR Process is a time bound
be now filed within two weeks with a copy in process under IBC and delay of this nature
advance to the counsel for the appellant. cannot be accepted. However, in the interest
of justice, we grant one-week time to the
Rejoinder, if any, be filed within a week respondent to file reply which shall be subject
thereafter with a copy in advance to the counsel to payment of a further cost of Rs. 20,000/- in
opposite. addition to cost of Rs. 20,000/- already
imposed. We make it clear that if the reply is
List for arguments on 10th July, 2018. not filed within one week and/or cost is not
paid then the defence of the respondent shall
Order dated 10.07.2018 be deemed to be struck off and no reply shall
be taken on record.
Despite the time of two weeks granted on
6.6.2018 reply has not been filed. A request Rejoinder, if any, be filed within one week
has been made for further time. One last thereafter.
opportunity is granted to file reply within a
week with a copy in advance to the counsel List for arguments on 26.09.2018.’
for the petitioner.
13. The aforesaid details concerning the conduct
Rejoinder if any be filed within a week of the Corporate Debtor-Respondent would
thereafter. List for arguments on 31.7.2018. reveal that a design effort has been made to

Order dated 31.07.2018 contd. on page no. 515

On the last date of hearing time was granted to
file reply and the following order was passed:-

512 Ahmedabad Chartered Accountants Journal November, 2018

From CA. Pamil H. Shah
Published [email protected]
Accounts
13.3 Grant related to Income (Revenue Grants)
Annual Report 2017-18
Government Grants Revenue Grants are recognised in the
Statement of Profit and loss on a systematic
Indian Terrain Fashions Limited basis over the periods in which the entity
recognises as expenses the related costs for
1.23 Government grants which the grants are intended to compensate.

Grants from Government are recognised at Subsidy and budgetary support towards
their fair value where there is a reasonable under recoveries are reckoned in “Revenue
assurance that the grant will be received and from operations” as per schemes notified by
the Company will comply with all attached Government from time to time, subject to final
condition. adjustments, wherever applicable.

Government grants relating to income are Company has treated waiver of duty under
recognised in the profit or loss over the period EPCG Scheme as revenue grant as the
necessary to match them with the costs. condition of meeting the export obligations
is a primary condition of availing the grant as
Government grants relating to the purchase per the EPCG Scheme. The above grant is
of property, plant and equipment are included set up by recording the assets at gross value
in non-current liabilities as deferred income and corresponding grant amount as deferred
are credited to profit or loss on a straight-line income. Such grant is recognised in “Other
basis over the expected lives of the related Operating Revenues” in proportion of export
assets and presented within other income. obligations actually fulfilled during the
accounting period.
Indian Oil
Revenue grants are generally recorded under
13) Grants “Other Operating Revenues” except grant in
respect of north east excise duty and entry
13.1 Government grants are recognised where tax exemption, which are netted off with the
there is reasonable assurance that the grant related expense.
will be received and all attached conditions
will be complied with. 13.4 When loans or similar assistance are provided
by governments or related institutions, with
13.2 Grant relating to assets (Capital Grants) an interest rate below the current applicable
market rate or NIL interest rate, the effect of
In case of grants relating to depreciable assets, this favourable interest is regarded as a
the cost of the asset is shown at gross value government grant. The loan or assistance is
and the grant thereon is treated as Capital initially recognised and measured at fair value
Grants which are recognized as income in the and the government grant is measured as the
Statement of Profit and Loss over the period difference between the initial carrying value
and in the proportion in which depreciation
is charged.

Ahmedabad Chartered Accountants Journal November, 2018 513

From Published Accounts necessary to match them with the costs that
they are intended to compensate and
of the loan and the proceeds received. The presented within other income. Government
loan is subsequently measured as per the grants are recognised in profit or loss on a
accounting policy applicable to financial systematic basis over the periods in which the
liabilities. Classification of the grant is made entity recognises as expenses the related costs
considering the terms and condition of the for which the grants are intended to
grant i.e. whether grants relates to assets or compensate.
otherwise.
HP Cotton Textile Mills Limited
Bharat Dynamic Limited
X. Government Grants
4 Government Grants
The Government grants are recognised only
4.1 Grants from the government are recognised when there is reasonable assurance that the
at their fair value where there is reasonable conditions attached to them shall be complied
assurance that grant will be received and the with, and the grants will be received.
Company will comply with all attached Government grants related to assets are
condition. treated as deferred income and are recognized
in the statement of profit and loss on a
4.2 Government grants relating to income are systematic and rational basis over the useful
deferred and recognized in the profit and loss life of the asset. Government grants related
over the period necessary to match them with to revenue are recognized on a systematic
the costs that they are intended to compensate basis in the statement of profit and loss over
and presented within other income. the periods necessary to match them with the
related costs which they are intended to
4.3 Grants related to non-depreciable assets may compensate. Government grant receivable as
also require the fulfilment of crtain compensation for expenses or losses already
obligations and would then be recognised in incurred with no future related cost are
profit or loss over the periods that bear the recognized in profit or loss of the period in
cost of meeting the obligations. which it becomes receivable.

4.4 Government Grants received either as subsidy Manaksia Coated Metals & Industries Ltd
or otherwise for acquisition of depreciable
assets are accounted as deferred income. If XVI) Government Grants
the grant\subsidy is absolute, amount
corresponding to the depreciation is treated The Group recognizes government grants
as income over the life of the asset. If the only when there is reasonable assurance that
grant\subsidy is attached with any conditions, the conditions attached to them shall be
such as repayment, income is accounted as complied with and the grants will be received.
per the terms of the grant\subsidy. Grants related to assets are treated as deferred
income and are recognized as other income
The Shipping Corporation of India Ltd. in the Statement of profit & loss on a
systematic and rational basis over the useful
1.26 Government Grants life of the asset. Grants related to income are
recognized on a systematic basis over the
Grants from the government are recognised periods necessary to match them with the
at their fair value where there is a reasonable related costs which they are intended to
assurance that the grant will be received and compensate and are deducted from the
the group will comply with all attached expense in the statement of profit & loss.
conditions. Government grants relating to
duty scrip on export of services (Served from
India Scheme) are related to income and are
recognised in the profit or loss over the period

514 Ahmedabad Chartered Accountants Journal November, 2018

NHPC Limited From Published Accounts

13.0 Government Grants b) Monetary grants from the government for
creation of assets are initially recognised as
a) The benefits of a government loan at a below deferred income when there is reasonable
market rate of interest is treated as assurance that the grant will be received and
Government Grant. The loan is initially the group will comply with the conditions
recognized and measured at fair value and associated with the grant. The deferred
the government grant is measured as the income so recognised is subsequently
difference between the initially recognized amortised in the Statement of Profit & Loss
amount of the loan and the proceeds received. over the useful life of the related assets.
The loan is subsequently measured as per the
accounting policy applicable to financial c) Government grant related to income is
liabilities and government grant is recognized recognised in the Statement of Profit & Loss
initially as deferred income and subsequently on a systematic basis over the periods in
in the Statement of Profit & Loss on a which the entity recognises as expenses the
systematic basis over the useful life of the related costs for which the grants are intended
asset. to compensate.

hhh

contd. from page 512 Allied Laws Corner

impede the insolvency proceedings by seeking 14. The office is directed to communicate a copy
time over and over again for filing reply. The of the order to the Financial Creditor, the
leniency shown by the Bench has been misused Corporate Debtor, the Interim Resolution
to the hilt. It was therefore, in these Professional and the Registrar of Companies,
circumstances that the order dated 28.08.2018 NCR, New Delhi at the earliest but not later
was passed whereby direction was issued that than seven days from today. The Registrar of
in case reply was not filed then the defence of Companies shall update his website by
the respondent was to be struck off and no reply updating the status of ‘Corporate Debtor’ and
was to be taken on record, and, inspite of said specific mention regarding admission of this
specific direction no reply has been filed. The petition must be notified to the public at large.
NCLT constrained to observe that in some of
the cases the Corporate Debtor-Respondent hhh
deliberately delayed the proceeding so as to
avoid the initiation of Corporate Insolvency
Resolution Process. This case thus is a classic
example of such a conduct. We say no more
on this issue.

Ahmedabad Chartered Accountants Journal November, 2018 515

516 Ahmedabad Chartered Accountants Journal November, 2018

From the

Government

CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]

Goods and Service Tax till 31st January, 2019. (Persons required to
deduct TDS)
1) Order No. 1/2018 – Central Tax :
3) Notification No. 61/2018 – Central Tax
In pursuance of section 44(1) , Central Goods dated 05/11/2018 : Seeks to exempt supply
and Services Tax Act, 2017 provides that every from PSU to PSU from applicability of
registered person, other than an Input Service provisions relating to TDS.
Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a TDS provision shall not apply to the supply of
non-resident taxable person, shall furnish an goods or services or both from a public sector
annual return for every financial year undertaking to another public sector
electronically in such form and manner as may undertaking, whether or not a distinct person.
be prescribed on or before the thirty-first day This shall come into effect form 1st October,
of December following the end of such 2018.
financial year.
4) Major Changes in the e-way bill system
The Ministry of Finance (Department of applicable from 16.11.2018
Revenue) vide Order No.1/2018 – Central Tax
dated 11/12/2018 has extended the due date 1. Checking of duplicate generation of e-way
for filing the annual return for the period bills based on same invoice number : The
July,2017 to March 2018 on or before 31st e-way bill system is enabled not to allow
March,2019. The annual returns are at the the consignor/supplier to generate the
advanced stage and are likely to be made duplicate e-way bills based on his one
operational by the 31st January, 2019. document. The system checks for duplicate
based on the consignor GSTIN, document
Section 44 of the Central Goods and Services type and document number. Similarly, if
Tax Act, 2017 has been amended, inserting the the transporter or consignee has generated
following Explanation after sub-section (2), one e-way bill on the consignor’s invoice,
namely :- then any other party (consignor, transporter
or consignee) tries to generate the e-way
“Explanation.—For the purposes of this bill, the system will alert that there is
section, it is hereby declared that the annual already one e-way bill for that invoice, and
return for the period from the 1st July, 2017 to further it allows him to continue, if he
the 31st March, 2018 shall be furnished on or wants.
before the 31st March, 2019.”.

2) Notification No. 66/2018 – Central Tax 2. CKD/SKD/Lots for movement of Export/
dated 30/11/2018 : Import consignment : CKD/SKD/Lots
supply type can be used for movement of
Due date for filing GSTR 7 for the months of the big consignment in batches. When One
October, 2018 to December, 2018 is extended

Ahmedabad Chartered Accountants Journal November, 2018 517

From the Government Clause (v) : In case of a Resident person,
other than Individual, who enters into an
‘Tax Invoice’ or ‘Bill of Entry’is there, but financial transaction of an amount
the goods are moved in batches from aggregating to Rs. 2,50,000 or more in a
supplier to recipient with the ‘Delivery financial year and such person has not been
Challan’, then this option can be used. allotted any PAN, on or before 31st day of
May immediately following such financial
3. Shipping address in case of export supply year, shall be liable to apply for PAN.
type : For Export supply type, the ‘Bill To’
Party will be URP or GSTIN of SEZ Unit Clause (vi) : In the case of a person, who is
with state as ‘Other Country’and shipping the managing director, director, partner,
address and PIN code will be of the trustee, author, founder, karta, chief executive
location (airport/shipping yard/border officer, principal officer or office bearer of
check post) from where the consignment the person referred to in clause (v) or any
is moving out from the country. person competent to act on behalf of the
person referred to in clause (v) and who has
4. Dispatching address in case of import not been allotted any PAN, on or before the
supply type : For Import supply, the ‘Bill 31st day of May immediately following the
From’ Party will be URP or GSTIN of financial year in which the person referred
SEZ Unit with state as ‘Other Country’and to in clause (v) enters into financial
dispatching address and PIN code will be transaction specified therein, shall be liable
of the location (airport/shipping yard/ to apply for PAN.
border check post) from where the
consignment is entered the country. The new requirement mentioned above shall
come into force from 5th December, 2018.
5. ‘Bill To – Ship To’transactions : There are
four types of ‘Bill To – Ship To’ Changes made in form 49A and 49AA :
transactions. These types depend upon the quoting of father’s name in PAN application
number of parties involved in the billing forms will not be mandatory in cases where
and movement of the goods. mother of the applicant is a single parent.
The application forms would give an option
6. Changes in Bulk Generation Tool : New to the applicant as to whether mother is a
columns have been added in the Bulk single parent and the applicant wishes to
Generation Tool. furnish the name of mother only. Currently,
furnishing father’s name is mandatory for the
Income Tax allotment of PAN.

1) Notification No. 82/2018 [F.No.370142/40/ hhh
2018-TPL (Part 1)] / GSR 1128(E)
: Requirement for PAN card – Rule 114 of
Income-tax.

The Central Board of Direct Taxes hereby
amends Rule 114(3) by adding Clause (v) and
(vi) which are as under :

518 Ahmedabad Chartered Accountants Journal November, 2018

Association

News CA. Maulik S. Desai CA. Shivang R. Chokshi
Hon. Secretary Hon. Secretary
Forthcoming Programmes

Date/Day Time Programmes Speaker Venue

29-12-2018 8.30 a.m. Cricket Match Sardar Patel Stadium,
Navrangpura,
Onwards C. A. AssociationVs Ahmedabad

Income Tax Bar Association

05-01-2019 8.30 a.m. Cricket Match H. L. College of
Onwards C. A. AssociationVs Commerce, Cricket
Rajkot Branch of WIRC Ground, Navrangpura,

of ICAI Ahmedabad

10-01-2019 46th RRC at Udaipur Adv.Saurabh Soparkar, Club Mahindra
to
12-01-2019 Cricket Match Ahmedabad Udaipur
C. A. Association Vs
16-02-2019 CA. Jatin Harjai, NH-8, Balicha,
Baroda Branch of
WIRC of ICAI Jaipur, (Near Indo

CA. Dhinal Shah, American school),

Ahmedabad Udaipur

CA. Ashish Chaudhry,

New Delhi

H. L. College of

Commerce, Cricket

Ground, Navrangpura,

Ahmedabad

Glimpses

Diwali Get Together on 17th November, 2018

Cricket Match - President XI vs Secretary XI 3rd Brain Trust Meeting
on 24th November, 2018 on 4th November, 2018

Ahmedabad Chartered Accountants Journal November, 2018 519

ACAJ Crossword Contest # 55

Across Cardholder under section 7(A) of the
1. As per GST Advance Rulings in case of Takko Citizenship Act, 1955.

Holding GmbH, it was held that _________ Down
activities being undertaken by the person when 4. The 44th RRC of CA Association is to be held
strictly in line with the condition specified by
RBI, permission letter do not amount to supply at ________ .
under GST. 5. A statute is the expression of the collective
2. When the Vedas refer to darkness and light, they
mean ignorance and _________, respectively. _________ of the legislature as a whole.
3. An OCI is a person resident outside India who 6. Where the GST registration of registered person
is registered as an __________ Citizen of India
is cancelled by a proper officer on or before
4 30th Sept, 2018 then he shall furnish _____
return in form GSTR-10 by 31st Dec 2018.

6

15

2

3

Notes:

1. The Crossword puzzle is based on previous Winners of ACAJ Crossword Contest # 54
issue of ACA Journal.

2. Two lucky winners on the basis of a draw will 1. CA. Rajni Shah
be awarded prizes. 2. CA. Rakesh Gupta

3. The contest is open only for the members of

Chartered Accountants Association and no
member is allowed to submit more than one

entry. ACAJ Crossword Contest # 54- Solution

4. Members may submit their reply either Across 2. Shareholder
physically at the office of the Association or 1. Three
by email at [email protected] on or 3. Sine Qua Non

before 31/12/2018. Down 5. Attitude
4. Transaction
5. The decision of Journal Committee shall be final 6. Override
and binding.

hhh

520 Ahmedabad Chartered Accountants Journal November, 2018