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IBBI amends Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017 (MCA Press Release 20 Sept 2022)

Posted on by Business So Simple in Company Law, IBBI

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2022 (‘Amendment Liquidation Regulations’) and Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2022 (‘Amendment Voluntary Liquidation Regulations’) on 16th September, 2022.

To enable better participation of stakeholders and streamline the liquidation process to reduce delays and realise better value, the amendment in Liquidation Regulations make the following major modifications:

  • The Committee of Creditors (CoC) constituted during Corporate Insolvency Resolution Process (CIRP) shall function as Stakeholders Consultation Committee (SCC) in the first 60 days. After adjudication of claims and within 60 days of initiation of process, the SCC shall be reconstituted based upon admitted claims.
  • The liquidator has been mandated to conduct the meetings of SCC in a structured and time bound manner with better participation of stakeholders.
  • The scope of mandatory consultation by liquidator, with SCC has been enlarged. Now, SCC may even propose replacement of liquidator to the Adjudicating Authority (AA) and fix the fees of liquidator, if the CoC did not fix the same during CIRP.
  • If any claim is not filed during liquidation process, then the amount of claim collated during CIRP shall be verified by the liquidator.
  • Wherever the CoC decides that the process of compromise or arrangement may be explored during liquidation process, the liquidator shall file application only in such cases before Adjudicating Authority for considering the proposal of compromise or arrangement, if any, within thirty days of the order of liquidation.
  • Specific event-based timelines have been stipulated for auction process.
  • Before filing of an application for dissolution or closure of the process, SCC shall advice the liquidator, the manner in which proceedings in respect of avoidance transactions or fraudulent or wrongful trading, shall be pursued after closure of liquidation proceedings.

The Amendment Liquidation Regulations and Amendment Voluntary Liquidation Regulations further lay down the manner and period of retention of records relating to liquidation and voluntary liquidation of a corporate debtor or corporate person, respectively.

The Amendment Liquidation Regulations and Amendment Voluntary Liquidation Regulations are effective from 16th September, 2022. These are available at http://www.mca.gov.in and www.ibbi.gov.in.

Shri Goyal asks Chartered Accountants all over the world to be ambassadors of Brand India

Posted on by Business So Simple in Entrepreneurship

Shri Goyal asks Chartered Accountants all over the world to be ambassadors of Brand India


Asks Chartered Accountancy firms in India to develop global partnerships and become international firms

Asks Chartered accountants to always do justice to the immense legacy of trust, honesty and high standards left behind by their predecessors

Calls upon ICAI to work towards opening 100 offices world over

Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today asked Chartered Accountants all over the world to be ambassadors of Brand India. He was addressing the gathering in San Francisco after launching the Institute of Chartered Accountants of India (ICAI) in 6 regions in the United States.

The Minister congratulated the office bearers of ICAI for the good work they have been doing in furthering the profession.

Conveying his greetings on Azadi Ka Amrit Mahotsav, Shri Goyal said that the next 25 years would be a very crucial time for India to grow from strength to strength and occupy an important place in the geopolitical arena. ICAI also has a crucial role to play in this journey of India, he said and added that he was looking forward to a time when ICAI would have a hundred international offices.

Underscoring that Chartered Accountants all over the world have been contributing immensely to economic development, the Minister said that Chartered Accountant Professionals were custodians of integrity. Referring to the signature of a CA was a mark of integrity and honesty, Shri Goyal said that the value of this signature made the task of CAs even more serious and onerous.

Referring to the 21st World Congress of Accountants which is to be held in Mumbai in November 2022 for the first time in 118 years, Shri Goyal said that it was set to happen when India was at the cusp of the G20 presidency. It is a recognition of the growing relevance India has in the comity of nations, he added.

Observing that India was an island of stability in a turbulent world, the Minister said that India is one of the fastest growing nations today. Stressing upon India’s relentless focus on inflation, Shri Goyal said that since 2014, the government had ensured that inflation was the primary focus of RBI and since 2014, India had seen inflation at an average of 4.5%, the lowest we have seen in any 8-year period since independence.

Touching upon the uncertain inflation scenario in the world today, the Minister said that India was one of the most favoured investment destinations and a preferred partner to the world today. World leaders are making every effort to expand their engagement and trade with India through bilateral agreements. We have had two successful FTAs with Australia and UAE and we are at an advanced stage of negotiations with the UK and it will possibly be concluded by Diwali, he said.

The Minister spoke of the game-changing economic reforms in India such as GST, IBC, decriminalisation, and compliance reduction to improve ease of doing business, low Corporate Tax of new businesses coming to India, removal of Dividend Distribution Taxes and National Single Window etc. had brought about renewed enthusiasm in India to expand business and economic activity.

Shri Goyal gave four calls to action to ICAI and its members world-wide:

He urged them to present tremendous investment opportunities available in India to their international clients.
He asked each of the members of ICAI to be ambassadors of brand India and help spread the message of high quality products at competitive prices that India has to offer. India has expanded exports greatly. We have a vibrant One District One Product (ODOP) initiative and atmanirbharta is at the core of our growth philosophy, he said.
Minister asked the members of ICAI all over the world to use made-in-India products whenever possible, especially for gifting. He stressed that the motto of sabka prayas was applicable to every Indian in the world.
Shri Goyal also called upon Chartered Accountancy firms of India to aspire to develop global partnerships and become international level firms. The legacy of trust, honesty and high standards left behind by our predecessors must always inspire us to do justice to the trust reposed on us by the world, the Minister said.
Minister @PiyushGoyal launched 6 representative offices of @TheICAI in USA.

With game-changing economic reforms in India, he urged Chartered Accountants to present the tremendous investment opportunities back home to their clients & be ambassadors of Brand India. pic.twitter.com/YDA7aPxqBl

— Piyush Goyal Office (@PiyushGoyalOffc) September 5, 2022

Press Release 06th Sept 2022

US Startup SETU

Posted on by Business So Simple in Business Consultancy, Entrepreneurship, Startups

Shri Piyush Goyal launches US Startup SETU – Supporting Entrepreneurs in Transformation and Upskilling programme in Sanfrancisco


SETU to connect start-ups in India to US-based investors and start-up ecosystem leaders

SETU to provide mentorship and assistance to startups in various areas including funding, market access and commercialization

SETU to break geographical barriers between mentors based in US and sunrise startups in India

The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal launched the US Startup SETU – Supporting Entrepreneurs in Transformation and Upskilling programme in the Bay Area of San Francisco. The initiative would connect start-ups in India to US-based investors and start-up ecosystem leaders with mentorship and assistance in various areas including funding, market access and commercialization.

 The programme was launched at a luncheon interaction focused on specific issues related to start-up ecosystem in India. The meeting focused on ways to encourage domestic incorporation and mentorship of early-stage Indian startups by successful diaspora members in the Bay Area.

 SETU is designed to break the geographical barriers between mentors based in US that are willing to invest in entrepreneurship and sunrise startups in India. The interaction will be supported through the mentorship portal under the Startup India initiative MAARG, or the Mentorship, Advisory, Assistance, Resilience, and Growth program, which is a single-stop solution finder for startups in India. The portal has been developed with the idea to be accessible from every corner of the country to connect with a mentor. A mentor will offer human intelligence in guiding the startups. It may be noted that till date, more than 200 mentors have been successfully onboarded on MAARG across the globe.

The core functions of MAARG are to improve ease of access, use Artificial Intelligence for Matchmaking, schedule meetings virtually, host masterclasses, provide a custom dashboard for relevant information, analytics, features, etc., host cohort-based programs that will allow startup ecosystem enablers to be become a part of the program and enable outcome driven activities.

 The minister held frank and fruitful discussions with venture capitalists and industry leaders in the area during several meetings he held in the Bay Area. Venture capitalists and other investors expressed optimism about the business outlook in India.

“One of the key takeaways is that the Bay Area is very bullish on India, very excited about the potential that India, Indians and Indian startups and Indian businesses have to offer. Very excited about the talent available in India. They see huge potential in the large market that India is, 1.3 billion aspirational Indians,” Shri Goyal said after the meetings.

“There were suggestions about mentorship. We’ve launched the SETU programme where we are looking at supporting  entrepreneurs through transformation and upskilling intiatives. We’re also looking at a programme that the startup advisory council had initiated in India in which mentorship is being initiated particularly in tier-2, tier-3 and tier-4 towns and remoter areas. Lot of good suggestions have been brought to the table,” he said.

It is estimated that about 90% of the start-ups and more than half of the well-funded startups fail in their early days. Lack of experience in handling the business is a key issue, and founders require the right guidance for taking a decision and moral support.

As India heads towards becoming a supreme start-up destination, the right guidance at the right time is paramount. The Government of India invites the stalwarts, seasoned experts, and industry leaders to give back to the nation by adding value to a startup’s journey.

MAARG is inviting applications from Mentors across the world. Till date, more than 200 mentors have been on-boared on MAARG across the globe. The applications have come from distinguished individuals representing the industry and the startup ecosystem.

Press Release 07th Sept 2022

₹ 1,43,612 crore gross GST revenue collected in the month of August 2022

Posted on by Business So Simple in GST

₹ 1,43,612 crore gross GST revenue collected in the month of August 2022


Revenues for the month of August 2022 28% higher than the GST revenues in the same month in 2021

Monthly GST revenues more than the ₹ 1.4 lakh crore for six months in a row

Press Release dated 01st Sept 2022

The gross GST revenue collected in the month of August 2022 is

₹ 1,43,612 crore of which CGST is ₹ 24,710 crore, SGST is ₹ 30,951 crore, IGST is
₹ 77,782 crore (including ₹ 42,067 crore collected on import of goods) and cess is
₹ 10,168 crore (including ₹ 1,018 crore collected on import of goods).

The government has settled ₹ 29,524 crore to CGST and ₹ 25,119 crore to SGST from IGST. The total revenue of Centre and the States in the month of August 2022 after regular settlement is ₹ 54,234 crore for CGST and ₹ 56,070 crore for the SGST.

The revenues for the month of August 2022 are 28% higher than the GST revenues in the same month last year of ₹ 1,12,020 crore. During the month, revenues from import of goods was 57% higher and the revenues from domestic transaction (including import of services) are 19% higher than the revenues from these sources during the same month last year.

For six months in a row now, the monthly GST revenues have been more than the ₹ 1.4 lakh crore mark. The growth in GST revenue till August 2022 over the same period last year is 33%, continuing to display very high buoyancy. This is a clear impact of various measures taken by the Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having positive impact on the GST revenues on a consistent basis. During the month of July 2022, 7.6 crore e-way bills were generated, which was marginally higher than 7.4 crore in June 2022 and 19% higher than 6.4 crore in July 2021.

The chart below shows trends in monthly gross GST revenues during the current year. The table shows the state-wise figures of GST collected in each State during the month of August 2022 as compared to August 2021.

State-wise growth of GST Revenues during August 2022

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1855967&RegID=3&LID=1

Income Tax Department conducts searches in West Bengal on two prominent real estate groups (Press release 31 Aug 2022)

Posted on by Business So Simple in Income Tax

The Income Tax Department carried out a search and seizure operation on 18.08.2022 on two prominent real estate groups of Kolkata.

During the course of the search operation, a large number of incriminating evidence including documents and digital data have been found and seized. There are evidences of out of books cash transactions and on-money receipts. Several documents and electronic data indicate routing of unaccounted money through shell companies. Further, some of the evidences found during the search operation indicate use of unaccounted funds in land acquisition.

The key persons admitted use of shell companies for infusion of unaccounted funds in the form of share capital, share premium and unsecured loans through sale of bogus investments.

The search action has, so far, led to a detection of a total unaccounted income of more than Rs. 250 crore. During the course of search proceedings, 16 bank lockers have been found which have been placed under restraint.

Further investigations are in progress.

Foreign Exchange Management (Overseas Investment) Regulations, 2022 (22 Aug 2022)

Posted on by Business So Simple in FEMA

RESERVE BANK OF INDIA
(FOREIGN EXCHANGE DEPARTMENT)
CENTRAL OFFICE
MUMBAI 400 001

No. FEMA 400/2022-RB

August 22, 2022

Foreign Exchange Management (Overseas Investment) Regulations, 2022

In exercise of the powers conferred by sub-section (1) and clause (a) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby makes the following regulations, namely:–

https://acrobat.adobe.com/link/review?uri=urn:aaid:scds:US:f273a751-0a5c-305c-a0be-32439587ad7a

Foreign Exchange Management (Overseas Investment) Directions, 2022 (Dated 22 Aug 2022)

Posted on by Business So Simple in FEMA

RBI/2022-2023/110
A.P. (DIR Series) Circular No.12

August 22, 2022

All Category – I Authorised Dealer Banks

Madam/Sir

Foreign Exchange Management (Overseas Investment) Directions, 2022

Overseas investments by persons resident in India enhance the scale and scope of business operations of Indian entrepreneurs by providing global opportunities for growth. Such ventures through easier access to technology, research and development, a wider global market and reduced cost of capital along with other benefits increase the competitiveness of Indian entities and boost their brand value. These overseas investments are also important drivers of foreign trade and technology transfer thus boosting domestic employment, investment and growth through such interlinkages.

2. In keeping with the spirit of liberalisation and to promote ease of doing business, the Central Government and the Reserve Bank of India have been progressively simplifying the procedures and rationalising the rules and regulations under the Foreign Exchange Management Act, 1999. In this direction, a significant step has been taken with operationalisation of a new Overseas Investment regime. Foreign Exchange Management (Overseas Investment) Rules, 2022 have been notified by the Central Government vide Notification No. G.S.R. 646(E) dated August 22, 2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 have been notified by the Reserve Bank vide Notification No. FEMA 400/2022-RB dated August 22, 2022 in supersession of the Notification No. FEMA 120/2004-RB dated July 07, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] and Notification No. FEMA 7 (R)/2015-RB dated January 21, 2016 [Foreign Exchange Management (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015]. The new regime simplifies the existing framework for overseas investment by persons resident in India to cover wider economic activity and significantly reduces the need for seeking specific approvals. This will reduce the compliance burden and associated compliance costs.

3. Some of the significant changes brought about through the new rules and regulations are summarised below:

(i) enhanced clarity with respect to various definitions;

(ii) introduction of the concept of “strategic sector”;

(iii) dispensing with the requirement of approval for:

  1. deferred payment of consideration;
  2. investment/disinvestment by persons resident in India under investigation by any investigative agency/regulatory body;
  3. issuance of corporate guarantees to or on behalf of second or subsequent level step down subsidiary (SDS);
  4. write-off on account of disinvestment;

(iv) introduction of “Late Submission Fee (LSF)” for reporting delays.

4. The detailed operational instructions in this regard are given in Annex-I. The instructions contained in these directions shall supersede the instructions contained in the circulars listed in Annex-II.

5. The revised reporting forms and instructions for filling up the forms under the new regime are being provided on Reserve Bank’s website in Part VIII of the Master Direction no. 18 on ‘Reporting under Foreign Exchange Management Act, 1999’ dated January 01, 2016.

6. AD banks may bring the contents of the circular to the notice of their customers/constituents concerned.

7. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.

Yours faithfully

Ajay Kumar Misra
Chief General Manager-in-Charge

https://acrobat.adobe.com/link/review?uri=urn:aaid:scds:US:0717fa65-df5a-3781-beef-6e28812b0634

Update on MCA21 Version -3 (Press release 24 Aug 2022)

Posted on by Business So Simple in Company Law


MCA21 version-3.0 is a technology-driven forward-looking project, envisioned to strengthen enforcement, promote Ease of Doing Business and enhance user experience. MCA21 version-3.0 rollout has been planned in phases to ensure minimum disruption in regulatory filings.

09 company forms (CHG-1, CHG-4, CHG-6, CHG-8, CHG-9, DIR-3 KYC, DIR-3 KYC WEB, DPT-3 and DPT-4) are scheduled to go-live on 01.09.2022 (00:00 hrs). Remaining company forms and other modules like e-Adjudication, Compliance Management System are scheduled to be fully deployed within this Calendar Year.

In view of the upcoming launch of 09 Company forms in version-3, LLP filings on MCA21 V-3 portal will not be available from 27th Aug (00:00AM) to 28th Aug (23:59hrs). However, MCA21 V-2 Portal for company filings will remain available.

Frequently asked questions (FAQs) and demo for these 09 forms are available on the website of MCA (www.mca.gov.in). Several webinars have been conducted to sensitise all stakeholders in association with Institute of Chartered Accountants of India (ICAI) and Institute of Company Secretaries of India (ICSI).

Phase-1 of rollout was completed on 24th May 2021 with launch of e.Book, e. Consultation Modules and a revamped website.

As part of Phase-2, LLP Module for supporting all LLP filings was launched on 08th March 2022.

*MCA 21 Version 3 (MCA Press Release dated 24th Aug 2022)*

https://youtu.be/eAnbFSEN2AY

India-UK agree to exchange experiences and best practices in areas of working of commercial courts, and ADR mechanisms like arbitration and mediation (Press release 23 Aug 2022)

Posted on by Business So Simple in Legal awareness

India-UK agree to exchange experiences and best practices in areas of working of commercial courts, and ADR mechanisms like arbitration and mediation


Both countries agree to share experiences related to use of technology in case management, justice dispensation and enforcement of contracts

Subject of framing regulations for entry of UK Law Firms and Lawyers deliberated in Legal Services Committee (LSC) meeting


During the recent meeting of India-UK Joint Consultative Committee (JCC), a broad agreement was reached to facilitate exchange of experiences and best practices in the area of working of commercial courts, alternate dispute resolution mechanisms like arbitration and mediation, use of technology in case management, justice dispensation and enforcement of contracts and in area of simple legislative drafting. It was further agreed that training and capacity enhancement programmes would be conducted in reputed Institutes for legal advisers, draftsman, judicial officers, prosecutors and legal professionals and in time bound manner.

The Government of India and United Kingdom had on 10th July 2018 entered into a MoU for promoting cooperation between both countries, in the sphere of Law and Justice. A Joint Consultative Committee (JCC) has been constituted in terms of the MoU to carry out its objectives by firming up the way forward in areas of cooperation. The third in-person meeting of the JCC was held at New Delhi on 18th August 2022 at New Delhi.

The Indian delegation was led by Dr. Niten Chandra, Law Secretary. Senior officers of the Department of Legal Affairs, Legislative Department and Department of Justice, Member Secretary NALSA and Director Indian Law Institute, New Delhi participated in the deliberations from the Indian side. The UK side was led by Dr. Jo Farrar, Second Permanent Secretary, Ministry of Justice, Government of UK. She was accompanied by Senior officers of Ministry of Justice and British High Commission at New Delhi. Both the Leaders Co-chaired the meetings.

As regards the subject of framing regulations for entry of UK Law Firms and Lawyers under the MoU was concerned, the same was discussed separately in the Legal Services Committee (LSC) meeting held later in the day on 18th August 2022. The Committee consists of officers of both the countries as stated above, and representatives of the Bar Council of India (BCI) and the Law Society of England and Wales. The Legal Services Committee in its meeting recalled the outcome of the India-UK virtual summit held on 4th May, 2021, between the Hon’ble Prime Ministers of India and UK and the launch of the ‘Enhanced Trade Partnership’ (ETP) to unleash the trade potential between the two countries who had also agreed to facilitate each other’s market-access concerns including the opening of legal services sector in India, on reciprocal basis.

The LSC deliberations were also attended by the British High Commissioner to India, H.E. Alex Ellis. The meeting was held in a cordial atmosphere wherein both the sides appreciated each others concern to the challenges in the opening of the legal services sector. The President Law Society of England and Wales along with her team joined the meeting virtually. She explained in detail the regulations which determine the areas of court practice and legal advice by non UK qualified lawyers. Secretary BCI, emphasised about the responsibilities vested in the Council to protect the rights, privileges and interest of lawyers, whom they represent. However, the representatives of both the countries appreciating the potential benefits of the opening up of legal services sector to the respective economies, agreed in principle to work together to find common ground for benefit of all stakeholders.

Income Tax Department conducts searches in Gujarat on a business group primarily engaged in manufacturing and trading of ceramic tiles (Press release 23 Aug 2022)

Posted on by Business So Simple in Income Tax

The Income Tax Department carried out a search and seizure operation on 09.08.2022 on a business group primarily engaged in manufacturing and trading of ceramic tiles. The search action covered a total of 36 premises, spread across Rajkot, Morbi, Ahmedabad, Raipur, Guwahati, Gurgaon, and Kolkata. The search operation also covered persons engaged in providing finance.

During the course of the search operation, various incriminating evidences in the form of documents and digital data have been found and seized. The initial analysis of these evidences reveal that the group has been engaged in large scale tax evasion by adopting various methods, including, by way of unaccounted cash sales outside the books of account, under invoicing of sales and booking of bogus purchases. The group has also been found to be involved in layering of unaccounted sums through bogus unsecured loans from related parties and share capital from Kolkata-based shell companies.

Further, several evidences indicating the group’s involvement in routing of the unaccounted funds into the regular books of account using accommodation entries provided by a Gujarat based person engaged in providing finance, have also been found.

So far, the search action has resulted in unearthing of unaccounted transactions exceeding Rs. 300 crore including cash loans of more than Rs. 100 crore.

Further investigations are in progress.