December 17, 2023

Concept of Minutes of Meeting: Companies Act, 2013

Companies Act 2013 / /

A Company is an official entity that involves formal transactions. Every gathering, communication, or transaction which has the potential to affect any interest of the members shall be recorded. These records achievements help in tracking the developments and changes in the functioning of the business. The notes or recommendations recorded during such meetings of the company are Meeting Minutes. They include extracts of the conversations made during the gathering of the company. In formal environments, meeting notations are reserved to provide a record of the conversation to refer them in the future. Minutes are an official recording of the proceedings of a Board Meeting or Annual General Meeting or any other meeting and the business transacted at the Meeting. All companies registered in India are required to maintain Minutes of all Board and Committee Meetings in a Minutes Book. In this article, we look at the procedure for recording minutes of meeting and minutes of meeting format under the Companies Act, 2013. What is Minutes of Meeting? Minutes of meeting is an official record of the proceedings of a meeting. Minutes help in understanding the deliberations and decisions taken at the Meeting. There is no restriction format or language for recording Minutes of meeting. Minutes kept in accordance with the provisions of the Companies Act can serve as evidence in Court of Law. For example, the only way to prove that a Board Resolution was passed at the Board Meeting of the company is by producing the Minutes Book in which the particular Resolution was recorded before the Court. Minutes are recorded whenever the officials associated with a company gather for an executive meeting. The moments are noted as a formal archive of the meeting by way of casual notes and conventions. In simple terms, all the instances of the meeting which include any information of formal and mutual nature and is relevant to the gathering or hearing, as the case may be, are minutes of the meeting. Minutes are formally written records of the proceedings of a Meeting which are kept in a physical or electronic format. They are also known as MoM (Minutes of Meeting) and include all the informally taken notes by following protocols formally and instantly recording the meeting or hearing in a written format. This procedure helps in describing the events that took place at the meeting and may include a list of statements of the raised issues, a list of attendees/participants, considerations and responses by the participants, and lastly the relevant decisions over the issues. Minutes Book Minutes of meeting should be kept in a minutes book maintained for that purpose at the registered office of the company or at a place approved by the Board of Directors. The law prohibits pasting of Minutes in the Minutes Book and hence Minutes cannot be type-written and then pasted in bound Minutes Book or in loose leaves. Minutes should also not be printed on a piece of paper, whether on letter-head or any other paper, and pasted in the Minutes Book. It is with a view to maintaining the integrity and evidentiary value of Minutes. If minutes book is maintained in loose-leaf form, it should be bound periodically depending on the size and volume and coinciding with one or more financial years of the company. Courts have invalidated Board Meetings in the past when minutes are not recorded in a proper book as per Companies Act, 2013. Hence, a minutes book should be distinctly kept and maintained for different meetings such as Meetings of the Board and Meetings of various Committees of the Board. Minutes of Meeting Format Minutes of meeting should state the serial number and type of the Meeting, name of the company, day, date, venue and time of commencement of the Meeting. In addition, a minutes of meeting must also specify the following: Details of Participants-In case of minutes of meeting of a company, the name(s) of Directors present and their mode of attendance must be mentioned. If all Directors are present physically, the Minutes need not specially record the mode of attendance. However, the Minutes should record the mode of attendance if any Director is participating through video conference or other electronic method along with the location from which he/she is participating from. In case a Company Secretary is participating, then the details of Company Secretary must be mentioned. The minutes must record details of any other person who is in attendance and invitees. Finally, the minutes of meeting must record the names of Directors who sought and were granted leave of absence. Election & Quorum-The minutes of meeting must contain a record of election of the Chairman of the Meeting, if applicable. Further, it should also contain details of presence of Quorum. If at the commencement of the Meeting, Quorum is present, but subsequently any Director leaves before the close of the Meeting due to which the Quorum requirement is not met for businesses taken up thereafter, then the Meeting should be adjourned and a statement to that effect should be recorded in the Minutes. Details of Resolution Passed-The minutes of meeting should contain the text of the Resolution(s) passed by circulation since the last Meeting, including dissent or abstention, if any. If any Director on the Board dissents or abstains from voting on any of the Resolution passed by circulation, then such dissent or abstention should be recorded in the Minutes of Meeting. Details of Dissent & Views of Independent Directors-The views of a Director or an Independent Director must be mentioned in the minutes of meeting, especially if insisted upon by a Director or any other person in the meeting. Further, the fact of dissent and the name of the Director who dissented from the Resolution or abstained from voting on a resolution must be mentioned in the minutes of meeting. Related Party Transactions-In case of a private limited company, the Minutes of Meeting should record the fact that an interested Director after disclosure of his interest participated in the discussion and voted. If a Director did not participate in the

Concept of Minutes of Meeting: Companies Act, 2013 Read More »

Passport Seva

Government Schemes / /

The Passport Seva has implemented a number of measures to enhance the management of passport offices. These processes’ primary goals are to guarantee comfort, improve security, and advance transparency. Before visiting the Passport Seva Kendra (PSK), you must make a payment online. You must make a reservation for a time in advance to visit the PSK. You must bring the necessary documents with you when you visit the PSK. Earlier, the task to get a passport, let alone a visa, was an arduous one. Individuals had to initially fill up application forms manually and then, wait tirelessly in long queues outside their local passport office awaiting their turn. Many were turned away and asked to try another day, as their documents were incomplete or if the office was done for the day. However, fear not as Passport Seva has come to the rescue. Citizens of India may obtain a new passport or have one renewed with ease through Passport Seva both, online and offline. The Government of India had taken up multiple initiatives to bring about an era of e-Governance in order to improve the delivery of public services in recent years. Passport Seva was established by the Ministry of External Affairs (MEA) in partnership with Tata Consultancy Services (TCS). The MEA has, however, retained essential functions such as the verification process, granting, and the issuance of a passport for any individual. The Ministry also has ownership of the core assets that includes data and information of all the individual applicants. The following are the various tasks that an Indian citizen can execute with respect to obtaining a passport online. Apply for a new passport. Apply for the renewal of a passport. Apply for the re-issuance of a lost or damaged passport. Access and download the Application Form for the Police Clearance Certificate. Access and download the Application Form for the Surrender Certificate. Access and download the Application Form for the Identity Certificate. The online Portal for Passport Seva provides information on the documents and all the essential data required for the application process. Additionally, it includes information on how to obtain any of the documents necessary for the procedure. It is mandatory for individuals to register themselves for Passport Seva online initially in order to make use of the facilities offered on the Portal. Role of Passport Seva Kendra The following are the vital responsibilities and roles of a Passport Seva Kendra:  The main responsibility of a PSK is to accept the passport application form from the applicant.  After accepting the application form and required documents, PSK performs the verification, background check, and prints the passport.  On successful verification and approval from the passport officer, PSK issues the passport to the applicant.  PSK addresses the queries regarding passport applications.  PSK also maintains the record of application received, passport application processed, and passport issued.  PSK ensures that the passport application submitted are compliant with the relevant regulations and guidelines.  Advantages of the Seva Passport Seva has been aimed to transform passport and its related services in the country. This is achieved by offering the best-in-class experience to apply and obtain a passport and other services. These services are provided by the Seva to the citizens through a reliable, convenient and transparent manner within each defined service level. The following are the critical aspects that the Seva ensures to offer a transformed experience. Access – Anytime, Anywhere- The citizens of India may submit their completed application forms for passports on the Passport Seva portal. Similarly, applicants may seek an appointment after payment of passport fees on the same Portal. The Passport Seva portal aims to offer comprehensive and up-to-date information related to passport services. Post confirmation of an appointment date/ time, individuals are only required to visit their nearest Passport Seva Kendra at the given slot. Increased Network -With over 37 Passport Offices, 93 Passport Seva Kendras (PSKs) have been established and are currently operational across the country as a part of Passport Seva to serve the citizens of India regarding passport services. Improved Amenities –  Passport Seva and its Kendras offers users with world-class ambience. Amenities such as the following are provided in comfortable air-conditioned waiting lounges: Self-Services Kiosks Helpful Guides Photocopying Services Food and Beverage Facilities Public Phone Booths Childcare Services Newspapers and Journals Television Access The Electronic Queue Management System equipped at every Kendra ensures the first come first serve principle for the application process. Call Centre & Helpdesk – A call centre operating nationally in 17 Indian languages gives citizens the opportunity to obtain passport service-related information and to receive updates concerning their passport applications, round the clock, 7 days a week. An e-mail based helpdesk has been set up, besides the smart-phone based application ‘mPassport Seva’, to provide information on passport services. Top Notch Infrastructure – Passport Seva is supported by the latest technology infrastructure which facilitates end-to-end passport services to be delivered to the applicants with enhanced security. The photographs and biometrics of the applicants are collected when they visit a Kendra in order to process their requests. The applications and supporting documents are stored digitally in the system for further processing. Registration on Passport Seva A passport is an essential document if an individual wish to travel abroad. It also serves as a proof of identity and address for an individual. To apply for a passport and to avail other services, it is essential that an individual register themselves online on the Passport Seva portal. The following are the basics steps to apply for a passport on the Passport Seva portal. Step 1: Visit the official Passport Seva portal. Step 2: On the left, click on the New User? Register Now tab in bright orange colour. Click on the tab and follow the link to the next page. Step 3: A form will be displayed where the user will be required to complete with appropriate information. Step 4: Ensure that the radio icon is set to the Passport Office option. Step 5: Select the nearest Passport Seva Kendra in your city from the choices in the drop-down list.

Passport Seva Read More »

Income Tax Notice in India

Income Tax / /

An income tax notice is a written communication sent by the Income Tax Department to a taxpayer alerting an issue with his tax account. The notice can be sent for different reasons like filing/ non-filing their income tax return, making the assessment, asking for certain details, etc. When the Income Tax Department sends a notice, the taxpayer has to act on the notice within the given timeline and resolve the matter with the tax authorities. The Income Tax Department sends the notices for various reasons like not filing the income tax returns, any defect while filing the returns, or other instances where the tax department is requiring any additional documents or information. Types of Income Tax Notice Type of Notice Description Notice u/s 143(1) – Intimation This is one of the most commonly received income tax notices. The income tax department sends this notice seeking a response to the errors/ incorrect claims/ inconsistencies in an income tax return that was filed.If an individual wants to revise the return after receiving this notice, it must be done within 15 days.Else, the tax return will be processed after making the necessary adjustments mentioned in the 143(1) tax notice. Notice u/s 142(1) – Inquiry This notice is addressed to the assessee when the return is already filed and further details and documents are required from the assessee to complete the process.This notice can also be sent to necessitate a taxpayer to provide additional documents and information. Notice u/s 139(1) – Defective Return An income tax notice under Section 139(1) would be issued if the income tax return filed does not contain all necessary information or incorrect information.If tax notice under Section 139(1) is issued, you should rectify the defect in the return within 15 days. Notice u/s 143(2) – Scrutiny An income tax notice under Section 143(2) is issued if the tax officer was not satisfied with the documents and information that was submitted by the taxpayer.Taxpayers who receive notice under Section 142(2) have been selected for detailed scrutiny by the Income Tax department and will have to submit additional information. Notice u/s 156 – Demand Notice This type of income tax notice is issued by the Income Tax Department when any tax, interest, fine, or any other sum is owed by the taxpayer.All demand tax notice will stipulate the sum which is outstanding and due from the taxpayer. Notice Under Section 245 If the officer has reason to believe that tax has not been paid for the previous years and he wants to set off the current year’s refund against that demand, a notice u/s 245 can be issued.However, the adjustment of demand and refund could be done only if the individual has been provided proper notice and an opportunity to be heard. The recipient has to respond to the notice is 30 days from the day of receipt of the notice.If the individual does not respond within the specified timeline, the assessing officer can consider this as consent and proceed with the assessment.Therefore, it is advisable to respond to the notice at the earliest. Notice Under Section 148 The officer may have a reason to believe that you have not disclosed your income correctly and therefore, you have paid lower taxes.Or the individual may not have filed his return at all, even if you must have filed it as per law. This is termed as income escaping assessment. Under these circumstances, the assessing officer is entitled to assess or reassess the income, according to the case.Before making such an assessment or reassessment, the assessing officer should serve a notice to the assessee asking him to furnish his return of income.The notice issued for this purpose is issued under the provisions of Section 148. What is the Purpose of an Income Tax Notice? An income tax notice may be issued for the following reasons – When no ITR has been filed. Errors or discrepancies in the returns filed. A mismatch between the TDS values and income tax returns is accessible through the Income Tax Department’s Form 26AS records. The assessing officer can ask for specific documents or information from the taxpayer through an income tax notice. It might be issued to conduct an audit as per section 143(1) of the income tax act. For other reasons as the assessing officer might deem fit Service of Income Tax Notice The Income Tax Act,1961 has laid down the law for the service of a notice, summons, order, or any other communication by delivering or transmitting a copy to the person in any method that is sanctioned under the Act. Here are the various ways in which the Income Tax Notice is served. Recipient of the Notice: Income Tax Notices are directly addressed to the individual but if they are meant for a minor they are addressed to the guardian Incorrect description of the assessee is usually rectifiable but in case of scenarios where the status of the assessee is entangled with the identity of the assessee, the name mentioned on the face of the return may become material. Service by Post: Service of the income tax notice can be processed through a registered post. Section 27 of the General Clauses Act 1897, specifies that the service is to be initiated by properly addressing, pre-paying, and posting by a registered post a letter that contains the document. This delivery can be made to the address, an employee, agent, or any other authorized person. Service by Affixture: In case a defendant refuses to sign the acknowledgment or where the officer is not able to find the defendant, then the office has to affix a copy of the summons or notice or requisition order on the outer door or any other noticeable part of the residence where the defendant is residing or pursuing the business activities. HUFs and the Partnership Firm: If the officer discovers the total partition of any HUF it may be recorded by the assessing officer and the notices can be served on the person who was

Income Tax Notice in India Read More »