Category: Other Updates

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SERVICE TAX ON RESTAURANT, EATING JOINT OR A MESS, HAVING THE FACILITY OF AIR ­CONDITIONING OR CENTRAL AIR ­HEATING


The CBEC vide Circular No. 184/3/2015-ST dated June 3, 2015 has clarified that Budget, 2015 has not made any change in abatement for determining valuation of services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, having the facility of air-conditioning or central air-heating in any part … Continue reading SERVICE TAX ON RESTAURANT, EATING JOINT OR A MESS, HAVING THE FACILITY OF AIR ­CONDITIONING OR CENTRAL AIR ­HEATING

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THE Companies (Amendment) Act, 2015


The Companies (Amendment) Bill, 2015 had been passed in Rajya Sabha on 13th May 2015 and was passed in Lok Sabha on 17.12.2014. Bill got assent of the president on 25.05.2015 and got published in official Gazette of India on 26th May, 2015   and now known as THE Companies (Amendment) Act, 2015. 

The government has notified amendments to the Companies Act, which makes it easier to do business and provided for severe penalties in case of frauds.

Given Below are the highlights of Companies (Amendment) Bill, 2015
  1. The Act has removed threshold limit for minimum paid up capital required for the formation of private or public limited company. – [Section 2(68)/2(71) of the Companies Act, 2013 (Act)]. 
    For setting-up a private company, New Act has done away with the norms of Rs 1 lakh minimum capital requirement and Rs 5 lakh in case of a public sector unit and various other amendments.
  2. The concept of company seal has become optional.
    In case a company does not have a common seal, the authorization shall be made by two directors or by a director and the company Secretary, wherever the company has appointed a company Secretary. – [sections 9, 12, 22, 46 and 223 of the Companies Act, 2013]
  3. Doing away with the requirement for filing a declaration by a company before commencement of business or exercising its borrowing powers. – [Omission of Section 11 of the Companies Act, 2013 and consequential change in section 248 of the Companies Act, 2013]. 
  4. With regard to acceptance of deposits by the companies, in contravention with regulations, the new law said that if a company fails to repay the deposit or any interest due thereon within the time specified, it will be
    1. Punishable with fine which shall not be less than Rs 1 crore but which may extend to Rs 10 crores in addition to payment of deposits or part thereof; and
    2. Every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than Rs 25 lakh but which may extend to Rs 2 crore, or with both. – [New Section 76A of the Companies Act, 2013].
  5. Prohibiting public inspection of Board resolutions filed in the Registry. – [Section 117(3) of the Companies Act, 2013].
  6. In case of dividend, the amended Act said that no company will declare dividend unless “carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.” – [Section 123(1) of the Companies Act, 2013]. Continue reading “THE Companies (Amendment) Act, 2015”
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Untill The Parliament Passes The Finance Bill, Service Tax to stay at 12%….


The Union Budget, 2015 has proposed an increase in the rate of Service tax from 12.36% to flat 14% with abolishment of Education cess and Secondary & Higher Secondary Education cess. Till now, the Rate of Service Tax will Remain the same i.e. 12.36%. Further, a new Chapter VI has also been inserted in the Finance Bill, … Continue reading Untill The Parliament Passes The Finance Bill, Service Tax to stay at 12%….