MCA 21 Portal Crosses Milestone of 1 Lakh Filings on One Single Day

The MCA 21 portal of the Ministry of Corporate Affairs crossed a significant milestone of 1,00,000 filings on one single day on 26th October 2013, surpassing the previous best of 88,119 filings last year (on 21/11/2012). This has been made possible by the efforts of the Ministry in scaling up the server and hardware capacity of the portal so that the requirements of the peak filing period of October-November 2013 can be taken care of.

The MCA 21 portal is in the 2nd cycle of its functioning from the 17th January of this year. This second cycle is characterized by improved enhancements to the systems and functions including increase in the network bandwidth, SAP CRM &workflow, hardware with updated technology and enhanced monitoring tools.

Tax benefits for senior citizens

As per Income Tax Act one who has Completed the Age of 60 years during the previous year or in a year Prior to that is a senior Citizen and one who hasCompleted the Age of 80 years during the previous year or in a year Prior to that is a super Senior Citizen.

1) The Income Tax Act identifies a senior citizen as a person who is 60 years of age or more at any time during the previous year. It provides for special benefits for such persons.

2) As per the IT Act, senior citizens who have an income up to Rs 2.5 lakh per annum are eligible for tax exemption.

3) Senior citizens receive a higher interest (up to 50 bps) on a 5-year fixed deposit, which is eligible for deduction from the total income under Section 80C.

4) Senior citizens can claim exemption on the tax deducted at source (TDS) on interest income earned on deposits. It can be done by submitting Form 15H under Section 197 of the IT Act.

5) Under Section 80D, the limit on the premium paid for medical insurance goes up to Rs 20,000 if the person covered under the policy is a senior citizen.

6) Senior Citizens not having Business Income Exempt From Advance tax payment

7) Senior citizen above the age of 80 years are entitled to higher exemption Limit of Rs. 5,00,000 from A.Y. 2012-13.

8) No Income Tax Scrutiny of Senior Citizens and Small Tax payers Having Gross Income less then 10 Lakh
9. Higher Deduction u/s 80DDB

Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments. Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.

10. Reverse mortgage for senior citizens
Reverse mortgage’ – a concept introduced by Finance 2007 -provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him. For more details read the following article :-Reverse mortgage created under a scheme made and notified by the Central Government shall not be regarded as a transfer U/s. 2(47)

Download TDS Certificate in Form 16B?

Government has made it mandatory w.e.f 01.06.2013 on buyer of property to deduct TDS @ 1% on payment made after 01.06.2013 if Purchase Consideration ofthe Property exceeds Rs. 50 Lakh. Deductor can pay such TDS by any of the following mode :-
Either make the payment online (through e-tax payment option) immediately;
Or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com

Once the Payment is made now the dedcuctor / Buyer is required to issue TDS certificate in form 16B to the seller of the Property. Now the question is how to prepare or from where deductor can get such certificate for the purpose of issue to the seller? Answer is deductor can download such certificate from Traces website and issue to the seller.

Buyer of immovable property can download Form 16B after registering on TRACES as Tax Payer.

Procedure to Download TDS certificate in form 16B is as follows :-

1. Login to :

https://www.tdscpc.gov.in/app/tapreg1.xhtml

2. Click on Register New User and you will be asked to provide basic details such as your
PAN
Date of Birth
Last, Middle and First Name and would also be required to further validate details of either tax deducted (option 1) or tax paid by you (option 2).
3. On Validation of details, your account will be created. User ID by default would be your PAN, You would have the option of providing Pass word of your choice. A email would be automatically generated providing you an activation link with a second code being text on your mobile. Having activated your account, it is now ready to be used. Services currently available are view 26AS statement and down load Form 16B in case you are the buyer of immovable Properties. May be in near future you are able to download your Form 16 or 16A also through this window.

To download form 16B go to download, click on request for form 16B, validate details and submit your request. After some time the same shall be available under download menu. Click on download, click of available and download and save it your computer.

Print, sign and deliver it to the seller.

Hope this helps you in getting Form 16B from Traces

What is Book Value Per Share, Computation

Book value per share is the net assets available to common stockholders divided by the shares outstanding, where net assets represent stockholders’ equity less preferred stock. Book value per share tells what each share is worth per the books based on historical cost.

Investors need to know book value per share of a company before attempting to invest in there. A comparison of book value per share with market price per share gives an indication of how the stock market views the company. “So, how to compute it?” you may be curious.

It is okay to not knowing it as you might not been an investor, just yet? But gaining more knowledge is always a good step to upgrade your skill. That is the purpose of this simple website—to learn something and grow. Through this post I am going to show you how to compute book vale per share of companies, step-by-step. Read on…How Is ‘Book Value Per Share’ Computed?

First of all, you probably knew already that there are two types of share in a company, they are: (1) preferred stock; and (2) common stock. Each type of stock is computed differently. Here is the formula of each:

1. Book Value Per Share for Preferred Stock:

(Liquidation Value of Preferred Stock + Preferred Dividend in Arrears) / Preferred Shares Outstanding

2. Book Value Per Share for Common Stock:

[Total stockholder's equity - (liquidation value of preferred stock + preferred dividends in arrears)]/ Common shares outstanding

Note: When you attempt to compute the ‘Liquidation Value of Preferred Stock’, you should realize that some companies have preferred stock issues outstanding that give the right to significant liquidation premiums, which may substantially exceed the par value of such shares. The effect of such liquidation premiums on the book value of common stock can be quite material.

Next let’s go with an easy case example.Book Value Per Share Computation Example

Here are Lie Dharma Putra’s financial information:

Total stockholders’ equity = $4,000,000
Preferred stock, 6% dividend rate, 100,000 shares, $10 par value, $12 liquidation value
Common stock, 200,000 shares, $20 par value
Preferred dividends in arrears for 3 years

So what is book value per share of each Lie Dharma Putra’s preferred and common stock?Back to the formula. To enable you to compute ‘Book Value Per Share’ of each type of stock, first you would need the following information on hand:

(1)Total stockholder’s equity – You have it = $4,000,000

(2) Liquidation Value of Preferred Stock – You need to compute it first. The formula is: share x liquidation value = 100,000 shares × $12 = $1,200,000. There you have it.

(3) Preferred Dividend in Arrears (or reminder) – You need to compute it first. Here is how:

Par value of preferred stock, 100,000 × $10 = $1,000,000
Preferred dividend rate × 6%
Preferred dividend per year = $ 60,000
Number of years × 3
Preferred dividend in arrears = $ 180,000

There you have it.

(4) Preferred Shares Outstanding – You have it = 100,000 shares

(5) Common shares outstanding – You have it = 200,000 shares



So, now you have everything on hand. Next you can start computing ‘Book Value Per Share’ of each type of stock using the formula. Here you go:

1. Book Value Per Share for Preferred Stock:

(Liquidation Value of Preferred Stock + Preferred Dividend in Arrears) / Preferred Shares Outstanding
($1,200,000 + 180,000)/ 100,000 shares = 1,380,000 / 100,000 = $13.80

2. Book Value Per Share for Common Stock:

[Total stockholder's equity - (liquidation value of preferred stock + preferred dividends in arrears)]/ Common shares outstanding
($4,000,000 – 1,380,000)/ 200,000 shares = 2,620,000 / 200,000 = $13.10



Generally, for your information, market price per share should be higher than book value per share, because the former is based on current prices. For example, if a company’s market price per share of stock is currently $20 and the book value per share is $26, the stock is probably not favored by investors.

Also note that an acquiring company may pay a market price less than the liquidation value (breakup value) for an acquired company in order to obtain a profit by liquidating the acquired business.

Summarised Provisions Relating To One Person Companies (OPC) Under Companies Act, 2013

1. FORMATION OF COMPANY

(a) Definition

One Person Company means a company which has only one person as a member.

(b) Formation of company

It may be formed for any lawful purpose by one person as a private company by subscribing his name to a memorandum and complying which the requirements of this act in respect of registration.

(c) Person becoming member after subscriber death or incapacity to contract

(i) The memorandum of One Person Company shall indicate the name of the other person, with his prior written consent in the prescribed form, who shall, in the event of the subscriber’s death or his incapacity to contract become the member of the company and the written consent of such person shall also be filed with the Registrar at the time of incorporation of the One Person Company along with its memorandum and articles.

(ii) Such other person may withdraw his consent in such manner as may be prescribed.

(iii) The member of One Person Company may at any time change the name of such other person by giving notice in such manner as may be prescribed.

(iv) the member of One Person Company to intimate the company the change, if any, in the name of the other person nominated by him by indicating in the memorandum or otherwise within such time and in such manner as may be prescribed, and the company shall intimate the Registrar any such change within such time and in such manner as may be prescribed.

Any such change in the name of the person shall not be deemed to be an alteration of the memorandum.

(d) Paras 7 and 8 of Table A/ Table B/Table E, Paras 6 and 7 of Table D and Paras 8 and9 of Table C shall apply to MOA of OPC

Para 6 of Table A/Table B/Table E, Para 7 of Table C and Para 5 of Table D shall not apply to MOA of OPC.

(e) Types of OPCs

One person company may be

(a) A company limited by shares or

(b) A company limited by guarantee or

(c) An unlimited company

Thus, OPC may be of the following 5 types

(i) One person company (OPC) limited by shares

(ii) OPC limited by guarantee and having share capital

(iii) OPC limited by guarantee and having no share capital

(iv) OPC unlimited having share capital

(v) OPC unlimited not having share capital

(f) Memorandum of association

The memorandum shall state­­­­­

(a) The name of the company with the last word “Limited” in the case of a public limited company, or the last words “Private Limited” in the case of a private limited company.

(b) The State in which the registered office of the company is to be situated.

(c) The objects for which the company is proposed to be incorporated and any matter considered necessary in furtherance thereof.

(d) The liability of members of the company, whether limited or unlimited with detail as specified in section 4(1)(d).

(e) The amount of share capital with which the company is to be registered and the division thereof as specified in section 4(1)(e)(i).

(f) The number of shares which the subscribers to the memorandum agree to subscribe which shall not be less than one share.

(g) The number of shares each subscriber to the memorandum intends to take indicated opposite his name.

(h) In the case of One Person Company, the name of the person who, in the event of death of the subscriber, shall become the member of the company.

2. MANAGEMENT AND ADMINISTRATION

(a) OPC is not required to hold annual general meeting.

(b) The following provisions are not applicable to OPC: Provisions of section 98 and sections 100 to111 (both inclusive) shall not apply to the company:

98     Power of Tribunal to call general meetings other than an annual general meeting of members

100   Calling of extraordinary general meeting

101    notice of general meeting

102    Explanatory statement annexed to the notice of general meeting

103    Quorum for general meetings

104    Chairman of the general meetings

105    Provisions relating to proxies

106    Restrictions on voting rights

107    Voting by show of hands

108    Voting through electronic means

109    Demand for poll

110    Postal ballot

111    Circulation of members’ resolutions

(c) Deemed passing of ordinary or special resolution by entry in minute’s book

For the purposes of section 114, any business which is required to be transacted at an annual general meeting or other general meeting of a company by means of an ordinary or special resolution:

(i) It shall be sufficient if, in case of One Person Company, the resolution is communicated by the member to the company and

(ii) Such resolution are entered in the minutes-book required to be maintained under section 118 and signed and dated by the member and

(ii) Such date shall be deemed to be the date of the meeting for all the purposes under this Act.

(d) Deemed passing of resolution of Board of Directors – Entry in minutes book

Where there is only one director on the board of directors of a one Person Company, any business which is required to be transacted at the meeting of the Board of Directors of a company, it shall be sufficient if, in case of such One Person Company, the resolution by such director is entered in the minutes-book required to be maintained under section 118 and signed and dated by such director and such date shall be deemed to be the date of the meeting of the Board of Directors for all the purposes under this Act.

3. ACCOUNTS OF COMPANIES

(a) Signing of Financial Statement

The financial statement shall be signed only by one director for submission to the auditor for his report thereon.

(b)Report of Board of Directors

The report of Board of Directors means a report containing explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report.

(c) Signing of the Board’s Report

The Board’s report and any annexure thereto shall be signed by its chairperson of the company if he is authorized by the Board and where he is not so authorized, shall be signed by at least two directors, one of whom shall be a managing director or by the director where there is one director.

(d) Filing of copy of financial statement

One Person Company shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within one hundred eighty days from the closure of the financial year.

4. AUDIT AND AUDITORS

Compulsory rotation of auditors – Not applicable

Provision for compulsory rotation of auditor in section 139(2) are not applicable to OPC as they apply to listed companies and companies belong to such class or classes as may be prescribed (unless central govt. applies it to OPCs through notification).

5. DIRECTORS

(a) Number of Directors

The company shall have a minimum one director and maximum of fifteen directors such directors being individuals.

The company may appoint more than fifteen directors after passing a special resolution.

(b) One director to be resident director

The company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.

(c) First Director

Where the first director is not appointed by the articles in case of a One Person Company, an individual being member shall be deemed to be its first director until the director or directors are duly appointed by the member.

(d) Meeting of the Board of Directors

If OPC has more than one director on its Board, the company shall be deemed to have complied with the provisions of section 173 if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days. If OPC has only one director, it is exempted from holding Board meetings.

(e) Contract with the sole member

Where One Person Company limited by shares or by guarantee enters into a contract with the sole member of the company who is also the director of the company, the company shall, unless the contract is in writing, ensure that the terms of the contract or offer are contained in a memorandum or are recorded in the minutes of the first meeting of the Board of Directors of the company held next after entering into contract.

The provision of section 193(1) shall not apply to contracts entered into by the company in ordinary course of its business.

(f) To inform the registrar about the contracts

The company shall inform the Registrar about every contract entered into by the company and recorded in the minutes of the meeting of its Board of Directors under section 193(1) within a period of fifteen days of the date of approval by the Board of Directors.

6. OTHERS

Articles II (27), II (48) and II (76) especially apply to OPCs

These articles especially apply to companies having share capital.

TDS Credit must be given even if TDS Certificate is not available/ entry is not shown in Form 26AS

Citicorp Finance (India) Ltd vs. ACIT (ITAT Mumbai)

 

The assessee claimed credit for TDS which was denied by the AO on the ground that the claim did not match the entries shown in Form No. 26AS and that there was a discrepancy. On appeal, the CIT(A) held that the assessee would be entitiled to credit to the extent shown in the computer system of the department. On further appeal by the assessee to the Tribunal HELD:

The AO is not justified in denying credit for TDS on the ground that the TDS is not reflected in the computer generated Form 26AS. In Yashpal Sahwney 293 ITR 539 the Bombay High Court has noted the difficulty faced by taxpayers in the matter of credit of TDS and held that even if the deductor had not issued a TDS certificate, still the claim of the assessee has to be considered on the basis of the evidence produced for deduction of tax at source. The Revenue is empowered to recover tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. The Delhi High Court has in Court On Its Own Motion Vs. CIT 352 ITR 273 directed the department to ensure that credit is given to the assessee even where the deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond.

Note: See also 3i Infotech Limited (file attached) where it was held “merely because the Department’s system does not indicate the TDS refund, it cannot be held that the assessee should be compelled to deposit the amount once again. It is for the Department to check the error in its system or point out fallacy in the assessee’s claim. There can be no question of penalizing the assessee for no fault committed by it”.

ST 3 (APRIL-SEPTEMBER 2013)

Service Tax Return (ST-3) for the period April -September' 13 is now available in ACES for e-filing by the assesses in both offline and online version. The last date of filing the ST-3 return for the said period is 25th October, 2013. The assesses can file return either online or use the offline utility by downloading the latest version from www.acesdownload.nic.in  or from 'DOWNLOADS' Section of ACES website. Excel utility has been updated on 1st October, 2013.