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New Provisions under Act, 2013 for Loans and Investments by Companies.

As per new Act, 2013 the new provision has amended for Loan and Investment by Company i.e. "company shall unless otherwise prescribed, make investment through not more than two layers of investment companies".  Now this section is not limited to inter corporate loans and investment but its scope has been extended to loans and investment to any person also.  


The loan and investment u/s. 186 the new provision also amendment i.e. "Company shall disclose in the financial statement full particulars of :
  • loans given, investment made or guarantee given or security provided and
  • the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security."


The New Act, 2013 has provide new provision for Restriction on Market Intermediaries to make inter-corporate load or deposits i.e. " No company, which is registered under section 12 of the SEBI Act, 1992 and covered under such class or classes of companies as may be prescribed, SHALL TAKE INTER-CORPORATE LOAN OR DEPOSITS EXCEEDING THE PRESCRIBED LIMIT and such company shall furnish in its financial statement the details of the loan or deposits.  

Companies registered u/s 12 of the SEBI Act, 1992 are:
Stock broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market".


"No company which is in default in the repayment of any deposits accepted before or after the commencement of this Act or in payment of interest thereon, shall give any loan or give any guarantee or provide any security or make an acquisition till such default is subsisting."


The Detailed summary on Loan and Investment u/s. 186 by Company under new Act, 2013 as under:
Particulars
Descriptions
Remarks
Applicability
All companies
"company shall unless otherwise prescribed, make investment through not more than two layers of investment companies"


Exemption
Provided that the provisions of this sub-section shall not affect,
  • a company from acquiring any other company incorporated in a country outside India if such other company has investment subsidiaries beyond two layers as per the laws of such country;
  • a subsidiary company from having any investment subsidiary for the purposes of meeting the requirements under any law or under any rule or regulation framed under any law for the time being in force.
New provision
Loan and Investment
NO COMPANY SHALL DIRECTLY OR INDIRECTLY —
  1. give any loan to any person or other body corporate;
  2. give any guarantee or provide security in connection with a loan to any other body corporate or person; and
  3. acquire by way of subscription, purchase or otherwise, the securities of any other body corporate,
exceeding 60% of its paid-up share capital, free reserves and
securities premium account or 100% of its free reserves and
securities premium account, whichever is more.
Now this section is not limited to inter corporate loans and investment but its scope has been extended to loans and investment to
any person also.
SR
If above said limit exceeds than prior approval by means of a special resolution passed at a general meeting shall be necessary.

Disclopsure in Financial Statement
Company shall disclose in the financial statement full particulars of :
  • loans given, investment made or guarantee given or security provided and
  • the purpose for which the loan or guarantee or security is proposed to be utilised by the recipient of the loan or guarantee or security.
New provision
Approval of Board
No investment shall be made or loan or guarantee or security given by the company unless
  1. Board resolution with the consent of all the directors present at the meeting and
  2. The prior approval of the public financial institution concerned where any term loan is subsisting, is obtained:
Exemption from approval of the public financial institution
  • where the aggregate of the loans and investments so far made, the amount for which guarantee or security so far provided to or in all other bodies corporate, along with the investments, loans, guarantee or security proposed to be made or given does not exceed the limit and
  • there is no default in repayment of loan instalments or payment of interest thereon as per the terms and conditions of such loan to the public financial institution.

Restriction on Market Intermediaries to make inter-corporate loan or deposits
No company, which is registered under section 12 of the SEBI Act, 1992 and covered under such class or classes of  companies as may be prescribed, SHALL TAKE INTER-CORPORATE LOAN OR DEPOSITS EXCEEDING THE PRESCRIBED LIMIT and such company shall furnish in its financial statement the details of the loan or deposits.


Companies registered u/s 12 of the SEBI Act, 1992 are:
Stock broker, sub-broker, share transfer agent, banker to an issue, trustee of trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediary who may be associated with securities market
New Provision
Rate of Interest
No loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three year, five year or ten year Government Security closest to the tenor of the loan.

Restriction
No company which is in default in the repayment of any deposits accepted before or after the commencement of this Act or in payment of interest thereon, shall give any loan or give any guarantee or provide any security or make an acquisition till such default is subsisting.
New Provision
Register of L & I
Company giving loan or giving a guarantee or providing security or making an acquisition under this section shall keep a register.
  • It shall be kept at the registered office of the company and
  • shall be open to inspection at such office; and
  • extracts may be taken therefrom by any member, and copies thereof may be furnished to any member of the company on payment of fees as may be prescribed.

Exemption fron section 186 except sub section (1)
Nothing contained in this section, except sub-section (1), shall apply
  • to a loan made, guarantee given or security provided by a banking company or an insurance company or a housing finance company in the ordinary course of its business or a company engaged in the business of financing of companies or of providing infrastructural facilities;
  • to any acquisition—
  1. made by a Registered NBFC and whose principal business is acquisition of securities: (Exemption shall be in respect of its investment and lending activities)
  2. made by a company whose principal business is the acquisition of securities;
  3. of shares allotted under Section 62 (1)(a)


62. (1) Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered— (a) to persons who, at the date of the offer, are holders of equity shares of the company in proportion, as nearly as circumstances admit, to the paid-up share capital on those shares by sending a letter of offer.

PENALTY for contravention of the provisions of this section
The company (fine)
Min: 25,000
Max:5,00,000
Every officer of the company who is in default: (fine and imprisonment)


FINE:
Min: 25,000
Max:5,00,000


IMPRISONMENT
Min: 1 day
Max: 2 years
Very stringent

Minutes of the 7th CPC Seminar on Common Demands COC KARNATAKA

The seminar on 7th CPC common demands held at Income Tax office Bangalore on 18/12/13 which was presided over by Com S.Radhakrishna Working President COC Karnataka.

The seminar  was attended by following affiliates of COC Karnataka.
  1. All India Postal Employees Union.
  2. Income Tax Employees Federation. 
  3. Postal Accounts Employees Association.
  4. RMS Employees Association.  
  5. Central Ground Water Board Employees Association. 
  6. Indian Audit & Accounts Employees Association 
  7. Survey of India Employees Association. 
  8. Census Employees Association. 
  9. Atomic Energy (RMP Mysore) Employees Association. 
  10. P& T Audit Employees Association. 
  11. GPO Employees Association. 
  12. Postal Admin Employees Association. 
  13. Central Excise Employees Association. 
  14. CGHS Employees Association. 
  15. NAL Employees Association. 
  16. IMD Employees Association. 
  17. Civil Accounts Employees Association.
Other invitees and others 5 members. Total 135 members.
Deliberation of the Seminar started at 11 AM  and concluded at 4.30PM.

Comrade R.Seethalaxshmi  Vice President COC Karnataka welcomed the chief Guest and Delegates for the seminar.

Com P.S.Prasad General Secretary COC Karnataka welcomed the Chief Guest and Delegates for the seminar.  He explained the background of conducting this seminar as the Central Government has decided to constitute the 7th CPC, hence this seminar will debate on the common issues of CG Employees to be presented in the 7th CPC. He further stated that the work paper has been circulated and it can be debated in this seminar, so that the COC view of Karnataka can be finalised.. At the same time he urged the affiliates to be prepared for struggle if the Government does not agree to the staff side demands of terms of reference. He assured the CHQ leaders Karnataka has always in the forefront of the CG movement.  He also thanked the ITEF leadership for making arrangements for this seminar including hall, printing of work paper, providing good food at subsidized rates etc. 

Com S.Radhakrishna Working President COC Karnataka in his speech explained to the members right from the first Central Pay Commission to sixth Central Pay Commission, the Central Pay Commission has done injustice to the Employees by not awarding the right pay scales and fitment formula. The concept of fair wages has been deprived to CG Employees. Usually pay commissions had adopted a multiplying factor of 3.2 to 3.6 to arrive at the new scales compared to earlier scales. But the VI CPC adopted conversion factor of about 2.6 at the lowest where as it was about 6 at the highest scale. By this method well established ration 1:12 between the lowest scale and highest scale was disturbed by the VI CPC.  He further elaborated how be struggle oriented approach the Confederation was able to get improvements in the recommendations of earlier pay commission reports.  He supported the decision of Confederation Hqrs to chalk out series of programmes to prepare the membership for strike.

Inaugural address by Comrade M.Krishnan Secretary General Confederation of Central Govt. Employees New Delhi.

Inaugurating and initiating discussion of seminar Secretary General  congratulated the COC Karnataka for organising this seminar on the common demands of CG Employees which is first of its kind in the country. He also thanked the COC Karnataka for participation in strikes and struggles launched by Confederation. He narrated the circumstances under which the earlier pay commissions had been constituted. Even in case of VII CPC Confederation was first to raise the demand and later adopted by all organisations. Government after seeing the mobilisation for strike ballot proposed to be held in November 2013  announced the constitution of VII CPC. which has put pressure on the Government in announcing the 7th CPC, He explained to the members about the terms of reference prepared by the staff side of JCM to the Central Government, He also informed that if the Central Government does not agree to our demands or the terms of reference prepared by the staff side of JCM  then the Confederation will  take up struggle path. 

Comrade M.Krishnan deliberated on the work paper prepared by the COC Karnataka and each and every item was discussed by him. He expressed satisfaction on the this report and informed the delegates that while preparing the 7th CPC  memorandum by the Confederation the views of the COC Karnataka will be taken into account, he also assured that the members will be consulted before finalising the 7th CPC memorandum as this will be displayed on the Confederation website.  

Presentation of work paper by Com P.S.Prasad General Secretary COC Karnataka, He presented the work paper which was approved by the members.

Com Kameshawari from IMD wanted the  IMD to be declared as scientific department.

Com Ashok Kumar from Census wanted increase in tour TA/DA rates, Com R. Srinivas wanted filling up of vacant post. 

Concluding address by Comrade M.S.Raja Working President of Confederation of Central Govt. Employees  New Delhi
In his speech he explained how the C. G. Employees were denied the trade union rights, he urged members to be prepared for the struggles and he explained how the struggles from first CPC to sixth CPC has yielded results. He also agreed to the work paper on common demands of CG Employees prepared by COC Karnataka.

Comrade K.S.Madhusudhan Secretary General  AICGWBEA and General Secretary COC  Harayana State.
In his speech he agreed on the work paper on common demands of CG Employees prepared by COC Karnataka, He explained the need for filling up  vacant post and travelling allowance to be provided to field staff. He urged all persons to prepare their 7th CPC memorandum, He informed that for CGWB a committee has been formed in which Com P.S.Prasad has been made member of the committee.
Com S.Radhakrishna Working President COC Karnataka made his concluding remarks and assured the Apex leadership that State unit will implement the calls of Hqrs in letter and spirit.

Seminar concluded at 4.30 Pm with Vote of thanks by Com Ravindranth Joint Secretary of COC Karnataka.

Source : www.confederationhq.blogspot.in

New Pan Application Form-49A, 49AA and Documents required -Notification

New pan application form 49A 49AA Notifiied- Documents required to apply PAN card Modified, New Performa for ID Address Proof 

CBDT has amended the rules regarding application of new pan card. New List of documents required to apply new pan or amend pan card has been notified. Aadhar card has also been added as ID as well as residential address proof for PAN application purpose. Further new pan application form 49A and 49AA has also been notified.

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES
Notification
New Delhi, the 23rd day of December, 2013

S.O. 3794 (E) - In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1.    (1) These rules may be called the Income –tax (19th Amendment) Rules, 2013.
       (2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962,-
(i) in rule 114, for sub- rule (4), the following sub-rules shall be substituted, namely:-
“(4) The application, referred to in sub-rule (1) in respect of an applicant mentioned in column (2) of the Table below, shall be filled in the Form mentioned in column (3) of the said table, and shall be accompanied by the documents mentioned in column (4) thereof, as proof of identity, address and date of birth of such applicant:


TABLE
Sl. No.
Applicant
Form
Documents as proof of identity, address and date of birth
(1)
(2)
(3)
(4)
1.
Individual who is a citizen of India
49A
(A) Proof of identity-(i)Copy of,(a) elector’s photo identity card ; or(b) ration card having photograph of the applicant; or(c) passport; or
(d) driving licence; or
(e) arm’s license;or
(f) AADHAR Card issued by the Unique Identification Authority of India; or
(g) photo identity card issued by the Central Government or a State Government or a Public Sector Undertaking; or
(h) Pensioner Card having photograph of the applicant; or
(i) Central Government Health Scheme Card or Ex-servicemen Contributory Heath Scheme photo card; or
(ii) certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or
(iii) bank certificate in original on letter head from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant.
Note: In case of a person being a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of identity.
(B)Proof of address-
(i)copy of the following documents of not more than three months old –
(a) electricity bill; or
(b) landline telephone or broadband connection bill; or
(c) water bill; or
(d) consumer gas connection card or book or piped gas bill; or
(e) bank account statement or as per Note 1; or
(f) depository account statement ; or
(g) credit card statement; or
(ii) copy of,
(a) post office pass book having address of the applicant; or
(b) passport; or
(c) passport of the spouse; or
(d)elector’s photo identity card; or
(e) latest property tax assessment order; or
(f) driving licence; or
(g) domicile certificate issued by the Government; or
(h) AADHAR Card issued by the Unique Identification Authority of India; or
(p) allotment letter of accommodation issued by the Central Government or State Government of not more than three years old; or
(q) property registration document; or
(iii) c ertificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or
(iv) employer certificate in original.
Note 1. In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External bank account statements shall be the proof of address.
Note 2: In case of a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of address.
(C) Proof of date of birth
copy of,
(a) birth certificate issued by the Municipal Authority or any office authorised to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or
(b) pension payment order; or
(c) marriage certificate issued by Registrar of Marriages; or
(d) matriculation certificate; or
(e) passport; or
(f) driving licence; or
(g) domicile certificate issued by the Government; or
(h) affidavit sworn before a magistrate stating the date of birth.
2.
Hindu Undivided Family
49A
(a) An affidavit by the karta of the Hindu Undivided Family stating the name, father’s name and address of all the coparceners on the date of application; and(b) copy of any document applicable in the case of an individual specified in serial number 1, in respect of karta of the Hindu undivided family, as proof of identity, address and date of birth.
3.
Company registered in India
49A
Copy of Certificate of Registration issued by the Registrar of Companies.
4.
Firm (including Limited Liability Partnership) formed or registered in India
49A
(a) Copy of Certificate of Registration issued by the Registrar of Firms/Limited Liability Partnerships; or(b) copy of Partnership Deed.
5.
Association of persons (Trusts) formed or registered in India
49A
(a) Copy of trust deed; or(b) copy of Certificate of Registration Number issued by Charity Commissioner.
6.
Association of persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or registered in India
49A
(a) Copy of Agreement; or(b) copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority; or(c) any other document originating from any Central Government or State Government Department establishing Identity and address of such person.
7.
Individuals not being a citizen of India
49AA
(i) Proof of identity :-(a) copy of Passport; or(b) copy of person of Indian Origin card issued by the Government of India; or(c) copy of Overseas Citizenship of India Card issued by Government of India; or(d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India.
(ii) Proof of address:-
(a) copy of Passport; or
(b) copy of person of Indian Origin card issued by the Government of India; or
(c) copy of Overseas Citizenship of India Card issued by Government of India; or
(d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or
(e) copy of bank account statement in the country of residence; or
(f) copy of Non-resident External bank account statement in India; or
(g) copy of certificate of residence in India or Residential permit issued by the State Police Authority; or
(h) copy of the registration certificate issued by the Foreigner’s Registration Office showing Indian address; or
(i) copy of Visa granted and copy of appointment letter or contract from Indian Company and Certificate (in original) of Indian Address issued by the employer.
8.
LLP registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or(b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
9.
Company registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or(b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
10.
Firm formed or registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or(b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
11.
Association of persons (Trusts) formed outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or(b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
12.
Association of persons (other than Trusts) or body of individuals or local authority or person formed or any other entity (by whatever name called) registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille”(in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or(b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.]

(5) The Director-General of Income-tax (Systems) shall specify the procedure and manner for the verification of documents filed along with the application in sub-rule (4) above, the formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing of the application forms for allotment of permanent account number.”

(ii) in Appendix II, for Form No.49A and Form No.49AA, the following Forms shall be substituted, namely:-

Annexure -A
(Certificate to be used by a Member of Parliament/Member of Legislative Assembly/Municipal Councillor or Gazetted Officer under sub-rule (4) of rule 114 of the Income-tax Rules, 1962)

                                                             (Affix same photograph as affixed on PAN application form)

(To be attested by issuing authority with his/her signature & rubber stamp appearing half on the photograph and half on the certificate)

I hereby certify that I know Sh./Smt/Kum… ………………………………. son/daughter of …… ………………………...and his/her personal particulars as given below are correct to the best of my knowledge and belief. I recommend issue of PAN card by the
Income-tax Department to him/her.


Name

Father’s Name
(even in case of married ladies father’s name is to be provided)

Date of Birth

Residence Address
(if applicant has resided at more than one place during last one year then all such address with dates should be mentioned)

Office Address

Previous Name (in case of changein
name)

Details of issuer of certificate
Office address with location
Office Seal
Date : Place:

(Signature) Full Name: Designation:
Department/Organisation/Constituency: Identity card No:
(Enclose a photocopy of I-card)
Telephone: Mobile:


Annexure -B
(Certificate to be used by the Employer on the letter head of the organisation/institution under sub-rule (4) of rule 114 of the Income-tax Rules, 1962)
 
(Affix same photograph as affixed on PAN application form)

(To be attested by issuing authority with his/her signature & rubber stamp appearing half on the photograph and half on the certificate)

It is hereby certified that Sh./Smt/Kum… ………………………………. son/daughter of …… ………………………... is employed  with us since ……. . He/She is presently working at the following address of the organisation:-
Office Address ……………………
……………………………………
……………………………………
The residential address of the applicant as verified by us is given below: Residential Address …………………………………..
…………………………………
………………………………
Registration Number of the Company/Institution etc………………………………………. PAN of the Company/Institution:
Details of the Individual issuing the certificate
Full Name: Designation:
PAN of the Individual:
Office address with location:
Telephone:                                                                                                      (Signature) Mobile:                                                                                                            Office Seal
Date: Place:

Annexure -C
(Certificate of identification by Bank on the letter head of the bank under sub-rule (4) of rule 114 of the Income-tax Rules, 1962)

(Affix same photograph as affixed on PAN application form)

(To be attested by issuing authority with his/her signature & rubber stamp appearing half on the photograph and half on the certificate)

This is to certify that Sh./Smt/Kum… ………………………………. son/daughter of
…… ………………………... whose photograph is attested above is holding an account having account number …………………. with this branch of the bank.
Details of the Individual issuing the certificate
Full Name: Designation:
PAN of the Individual:
Office address with location:
Telephone:                                                                                      (Signature) Mobile:                                                                                                            Office Seal
Date: Place:


Annexure-1
(Certification under sub-rule (4) of rule 114 of the Income-tax Rules, 1962 in case of individuals not being a Citizen of India & entities incorporated outside India filling form 49AA)

This document (type of document) has been certified by (name of certifying person) acting in the capacity of at (place) on (date).

Official Seal Signature
Full Name, Address and Telephone number of the Overseas Bank Branch of Scheduled Bank registered in India

Download New PAN Application Notification