April 15, 2024 | CA B K Goyal & Co LLP

Section 41 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 15, 2024

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Section 40A – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 15, 2024

Power of Central Government to apply Chapter VIII to broadcasting organisations and performers in certain other countries (1) If the Central Government is satisfied that a foreign country(other than a country with which India has entered into a treaty or which is a party to a convention relating torights of broadcasting organisations and performers to which India is also a party) has made or has undertakento make such provisions, if any, as it appears to the Central Government expedient to require, for the protectionin that foreign country, of the rights of broadcasting organizations and performers as is available under thisAct, it may, by order published in the Official Gazette, direct that the provisions of Chapter VIIIshall apply—(a) to broadcasting organisation whose headquarters is situated in a country to which the orderrelates or, the broadcast was transmitted from a transmitter situated in a country to which theorder relates as if the headquarters of such organisation were situated in India or such broadcastwere made from India;(b) to performances that took place outside India to which the order relates in like manner as if theytook place in India;(c) to performances that are incorporated in a sound recording published in a country to which theorder relates as if it were published in India;(d) to performances not fixed on a sound recording broadcast by a broadcasting organisation theheadquarters of which is located in a country to which the order relates or where the broadcastis transmitted from a transmitter which is situated in a country to which the order relates asif the headquarters of such organisation were situated in India or such broadcast were made fromIndia.(2) Every order made under sub-section (1) may provide that—(i) the provisions of Chapter VIII, shall apply either generally or in relation to such class orclasses of broadcasts or performances or such other class or classes of cases as may be specified in theorder; 1Ins. by Act 49 of 1999, s. 5 (w.e.f. 15-1-2000).(ii) the term of the rights of broadcasting organisations and performers in India shall not exceed suchterm as is conferred by the law of the country to which the order relates1[Provided that it does not exceed the period provided under this Act;](iii) the enjoyment of the rights conferred by Chapter VIII shall be subject to the accomplishment ofsuch conditions and formalities, if any, as may be specified in that order;(iv) Chapter VIII or any part thereof shall not apply to broadcast and performances made before thecommencement of the order or that Chapter VIII or any part thereof shall not apply to broadcasts andperformances broadcast or performed before the commencement of the order;(v) in case of ownership of rights of broadcasting organisations and performers, the provisions ofChapter VIII shall apply with such exceptions and modifications as the Central Government may,having regard to the law of the foreign country, consider necessary.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta

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Section 40 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 15, 2024

Power to extend copyright to foreign works The Central Government may, by order1published in the Official Gazette, direct that all or any provisions of this Act shall apply—(a) to works first published in any territory outside India to which the order relates in like manner as ifthey were first published within India;(b) to unpublished works, or any class thereof, the authors whereof were at the time of the making ofthe work, subjects or citizens of a foreign country to which the order relates, in like manner as if theauthors were citizens of India;(c) in respect of domicile in any territory outside India to which the order relates in like manner as ifsuch domicile were in India;(d) to any work of which the author was at the date of the first publication thereof, or, in a case wherethe author was dead at that date, was at the time of his death, a subject or citizen of a foreigncountry to which the order relates in like manner as if the author was a citizen of India at that dateor time;and thereupon, subject to the provisions of this Chapter and of the order, this Act shall apply accordingly:Provided that—(i) before making an order under this section in respect of any foreign country (other than acountry with which India has entered into a treaty or which is a party to a convention relatingto copyright to which India is also a party), the Central Government shall be satisfied that theforeign country has made, or has undertaken to make, such provisions, if any, as it appears tothe Central Government expedient to require for the protection in that country of worksentitled to copyright under the provisions of this Act;(ii) the order may provide that the provisions of this Act shall apply either generally or in relation tosuch classes of works or such classes of cases as may be specified in the order;(iii) the order may provide that the term of copyright in India shall not exceed that conferred by thelaw of the country to which the order relates 2[but such a term or copyright shall not exceed theterm of copyright provided under this Act]; 1International Copyright order, 1999 (w.e.f. 6-4-1999)2Ins. by Act 27 of 2012, s. 29 (w.e.f. 21-6-2012).(iv) the order may provide that the enjoyment of the rights conferred by this Act shall be subject tothe accomplishment of such conditions and formalities, if any, as may be prescribed by the order;(v) in applying the provisions of this Act as to ownership of copyright, the order may make suchexceptions and modifications as appear necessary, having regard to the law of the foreign country;(vi) the order may provide that this Act or any part thereof shall not apply to works made before thecommencement of the order or that this Act or any part thereof shall not apply to works firstpublished before the commencement of the order. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta

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Section 39A – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 15, 2024

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Section 39 – THE COPYRIGHT ACT, 1957

THE COPYRIGHT ACT, 1957 / CA Bhuvnesh Goyal / April 15, 2024

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recognition of stock exchange

learn / CA Bhuvnesh Goyal / April 15, 2024

The responsibility for the orderly functioning of the security market has been delegated to Securities Exchange Board of India which is entrusted to protect the interest of investors and ensure the development of securities market. The responsibility entrusted with SEBI is to create an environment in which the various participants such as the investors, government, intermediaries and the stock exchanges are satisfied. SEBI derives its validity from Securities and Exchange Board of India Act, 1992 (the SEBI Act, hereafter). The main purpose of the Act is the protection of investors in the securities market and thereby making it a reliable place. The provisions of the SEBI Act define its role in more specific terms. These broadly relate to Regulating stock exchanges as well as other security markets Regulating trade markets Prohibiting practices that are considered to be unhealthy for development of the securities market such as insider trading and fraudulent and unfair trade practices for promoting and regulating self-regulatory organizations. SEBI performs several of its functions which are based on its powers which have been given to it under Securities Contract Regulation Act, 1956 and the Securities Contract Regulation Rules, 1956. The object of the SCR Act is to provide for the regulation of stock exchanges and of securities dealt in on them. It also indulges in regulating the securities outside the stock market. Stock market facilitates mobilisation of funds from small investors and channelizes these resources into various development needs. In order to avoid undesirable transactions in securities by regulation of the business of dealing, the Securities Contract Regulation Act, 1956 was enacted by parliament. What is Stock Exchange? A stock exchange is an important factor in the capital market. It is a secure place where trading is done in a systematic way. Here, the securities are bought and sold as per well-structured rules and regulations. Securities mentioned here includes debenture and share issued by a public company that is correctly listed at the stock exchange, debenture and bonds issued by the government bodies, municipal and public bodies. Typically bonds are traded Over-the-Counter (OTC), but a few corporate bonds are sold in a stock exchange. It can enforce rules and regulation on the brokers and firms that are enrolled with them. In other words, a stock exchange is a forum where securities like bonds and stocks are purchased and traded. This can be both an online trading platform and offline (physical location) Listing of Securities – The Process According to Section 9 (1) (m) of the SCR Act, any stock exchange is free to make rules for listing of securities as part of the bye laws which govern their working. A company applying to get their securities listed on a particular stock exchange have to apply and comply with the necessary rules specified in the bye laws and SCR rules. Securities Contract Regulation Rules, 1956 have defined the documents that a company has to provide to the stock exchange while seeking the list of its securities The Listing Agreement All securities exchanges presently have a listing agreement that has several common, standard provisions. It is a contract that securities exchanges enter into with issuers which effectively governs the relationship between the issuer and the investor. Recognition of stock exchange Section 3 of the Securities Contract (Regulation) Act lays down that for recognition, every stock exchange for the purpose of being recognised has to make an application in a prescribed manner to the Central Government. If the central government is satisfied, then it may grant recognition subject to further inquiry and condition imposed as laid down in the Act. Every grant of recognition shall be published in the Official Gazette. The opportunity has to be given to the applicant to present their matter in case their application is refused. Any amendment shall not be made without the involvement of central government. Corporatisation and Demutualisation of Stock Exchanges Historically stock exchanges were formed as mutual organisations. Ownership and trading rights were clubbed together. The disadvantage in this is that the organization would work towards the benefit of the members and not the investors. In view of these shortcomings, a step was taken by the Government of India for the demutualisation and Corporatisation of the stock exchanges. Withdrawal of recognition If, in the interest of the public, the central government feels that the recognition given to the stock exchange be withdrawn, then it has the power to do so under section 5 of the SCR Act. Powers vested in Stock Exchanges Power to call for returns and make direct enquiries– According to Section 6 of the SCR Act, every stock exchange shall preserve books of accounts for a period of minimum 5 years and it may be subject to inspection at times by SEBI. Power of stock exchanges for management and regulation purposes to make bye-laws- Section 9 of the SCR Act gives the power to the various stock exchanges to make bye-laws for the regulation and control of contracts. Establish trading floor A stock exchange may establish additional trading floor with the prior approval of SEBI in accordance with the terms and conditions stipulated by SEBI. Penalties and procedures- Under Section 23 of the SCR Act, various penalties have been listed and any person who indulges in them be subjected to a penalty decided by the adjudicating officer or imprisonment which may extend to 10 years or fine which may extend to twenty five crore Rupees. The penalties have been explained as follows – Penalty for failure to furnish information, return, etc Any person, who is required under this act, fails to furnish any information, document, books, returns or report to a recognised stock exchange or fails to maintain books of accounts Penalty for failure by any person to enter into any agreement with clients Any person who is required under this act or any bye laws of a recognised stock exchange, fails to enter into an agreement with his clients. Penalty for failure to redress investor’s grievances If any

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Depreciating asset

learn / CA Bhuvnesh Goyal / April 15, 2024

Depreciation is an accounting practice used to spread the cost of a tangible or physical asset over its useful life. Depreciation represents how much of the asset’s value has been used up in any given time period. Companies depreciate assets for both tax and accounting purposes and have several different methods to choose from. A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is used. Depreciating assets include such items as computers, electric tools, furniture and motor vehicles. Land and items of trading stock are specifically excluded from the definition of depreciating asset. Most intangible assets are also excluded from the definition of depreciating asset. Only the following intangible assets, if they are not trading stock, are specifically included as depreciating assets: in-house software; see In-house software certain items of intellectual property (patents, registered designs, copyrights and licences of these) mining, quarrying or prospecting rights and information certain indefeasible rights to use a telecommunications cable system certain telecommunications site access rights, and spectrum licences. Improvements to land or fixtures on land (for example, windmills and fences) may be depreciating assets and are treated as separate from the land, regardless of whether they can be removed or not. What Is a Depreciated Asset? A fully depreciated asset is a property, plant or piece of equipment (PP&E) which, for accounting purposes, is worth only its salvage value. Whenever an asset is capitalized, its cost is depreciated over several years according to a depreciation schedule. Theoretically, this provides a more accurate estimate of the true expenses of maintaining the company’s operations each year. An asset can reach full depreciation when its useful life expires or if an impairment charge is incurred against the original cost, though this is less common. If a company takes a full impairment charge against the asset, the asset immediately becomes fully depreciated, leaving only its salvage value (also known as terminal value or residual value). The depreciation method can take the form of straight-line or accelerated (double-declining-balance or sum-of-year), and when accumulated depreciation matches the original cost, the asset is now fully depreciated on the company’s books. In reality, it is difficult to predict the useful life of an asset, so depreciation expenses represent only a rough estimate of the true amount of an asset used up each year. Conservative accounting practices dictate that when in doubt, it is more prudent to use a faster depreciation schedule so that expenses are recognized earlier. In that way, if the asset does not live out the expected life, the company does not incur an unexpected accounting loss. Types of Depreciation Straight-Line- The straight-line method is the most basic way to record depreciation. It reports an equal depreciation expense each year throughout the entire useful life of the asset until the asset is depreciated down to its salvage value. Declining Balance- The declining balance method is an accelerated depreciation method that begins with the asset’s book, rather than salvage, value. Because an asset’s carrying value is higher in earlier years (before it has begun to be depreciated), the same percentage causes a larger depreciation expense amount in earlier years, Double-Declining Balance (DDB)- The double-declining balance (DDB) method is an even more accelerated depreciation method. It doubles the (1/Useful Life) multiplier, making it essentially twice as fast as the declining balance method. Sum-of-the-Years’ Digits (SYD)– The sum-of-the-years’ digits (SYD) method also allows for accelerated depreciation. You start by combining all the digits of the expected life of the asset. FAQs How Do Businesses Determine Salvage Value? Salvage value can be based on past history of similar assets, a professional appraisal, or a percentage estimate of the value of the asset at the end of its useful life. What Is Depreciation Recapture? Depreciation recapture is a provision of the tax law that requires businesses or individuals that make a profit in selling an asset that they have previously depreciated to report it as income. In effect, the amount of money they claimed in depreciation is subtracted from the cost basis they use to determine their gain in the transaction. Recapture can be common in real estate transactions where a property that has been depreciated for tax purposes, such as an apartment building, has gained in value over time. How Does Depreciation Differ From Amortization? Depreciation refers only to physical assets or property. Amortization essentially depreciates intangible assets, such as intellectual property like trademarks or patents, over time. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland

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certificate of commencement of business

Companies Act 2013 / CA Bhuvnesh Goyal / April 15, 2024

The term ‘business’ usually refers to the regular occupation, profession or trade. For regulating the business or corporate industry, various rules and legislations as well as their amendments have been introduced in India from time to time. One such legislation is the Companies Act 2013, which mentions the definition, requirements, procedures, conditions and penalties for almost every aspect related to the incorporation, registration and functioning of a business/company in the country. ‘Commencement of Business’ is a term which anyone owning a business is familiar with. This article mentions all that you need to know about the various procedures, requirements, forms which must be complied with for commencing a business. According to the Companies Act, 2023’s Section 11, the directors of a company having share capital must submit a declaration to the Registrar of Companies. This declaration must assert that the signatories or subscribers to the MoA of the company have fully paid up their share. This declaration must be filed within a period of 180 days from the company’s date of incorporation. This declaration is known as Commencement of Business. The provision of the commencement of business was adopted in the Companies Act 2013 under Section 11 from the erstwhile Companies Act of 1956. However, the same was left out in the Companies (Amendment) Act of 2015. However, Section 10A of the Companies (Amendment Ordinance), 2018 reinserted this provision to the Companies Act 2013 once again. The provision is very clear regarding its applicability with respect to the share capital. A company has to make a declaration within 180 days of its incorporation to be able to begin with its operations or exercise any other power. What is Certificate of Commencement of Business The certificate of commencement of business is the declaration filed by the company’s directors with the registrars. After the company is incorporated, it is provided with a sufficient one hundred and eighty days to file the proclamation in Form INC-20A. The Ministry of Corporate affairs launches Form 20 A Which companies are not required to file form 20A? The Companies Act does not require certain companies to file form 20A. These companies are mentioned below: Companies which have been incorporated before 2nd November, 2018 (before the start of the Companies (Amendment) Ordinance, 2018) Companies incorporated after 2nd November, 2018 which do not have share capital. Regulatory Framework for Commencement of Business Certificate. Section 10A of the Companies Act 2013. Rule 23A, The Companies (Incorporation) Rules, 2014 What is Form INC-20A? It is a declaration under section 10A by a director. Further as per rule 23A, The declaration under section 10A by a director shall be in Form No, INC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a company Secretary or a chartered Accountant or a cost Accountant in practice. Eligibility Criteria for Filing INC-20A:- 👉The company must be incorporated under the Companies Act, 2013. 👉The company must have a valid Certificate of Incorporation (COI). 👉The company must have a registered office address. (The same could be updated via a Form No. INC-22 or Form No. SPICe+ Part B ) 👉 The company must have a bank account, 👉DSC and Board resolution. Timelines for Filing INC-20A:- Companies are required to file INC-20A within 180 days from the date of incorporation. Documents Required for Filing INC-20A a. Mandatory: ✔Photo:- Director whose DSC is affixed on the form,it should be his photo outside the office and it should show the company corporate board showing CIN,GST rgistered address like letter head.(outside the buidling) and a photo inside the office showing director or kmp).Then merge the both photos and create a pdf. b. Optional: – ✔ Copy of the company’s bank statement, reflecting the paid-up share capital (optional attachment however highly recommendatory) ✔ A declaration by subscribers to Board -(optional) ✔ Sectoral Regulator approval letter if taken. Application Process for Commencement of Business Certificate To apply for the certificate of commencement of business, you must fill Form 20A using the steps mentioned below: Visit the homepage of the official website of the Ministry of Corporate Affairs (MCA). Login in to the website using a valid ID and password. In the next step, opt for “MCA services” then choose the “E-filing” option available on the screen. Select “Company Forms Download” Now in the forms list, you must find a form titled Form No. INC-20A which is the declaration form for commencement of business Enter the information of your company asked in the form and optionally, search for CIN using the search option available. Select CIN from the drop down menu and then complete the form. You can save the webform as draft in case you want to make changes or add more details in it later. Now, submit the web form. After the submission, SRN or a serial request number will be generated. SRN can be used for correspondence with MCA in future. Attach the Digital Signature Certificate’s pdf form on MCA’s website. Now pay the required fees mentioned on the portal. Once the verification is finished and there are no errors, you will receive an acknowledgement email. Penalties and Consequences for non-compliance during Form Filing In case of non-compliance while filing Form 20A, the consequences can be severe. The penalties have been made harsh in order to reduce the number of shell companies. These penalties are mentioned below: Penalty of Rs 50,000: This penalty will be imposed on the firm if it fails to comply with the conditions for filing the form. Penalty of 1,000 per day: Each such officer who is in default will be liable to pay a penalty of Rs 1,000 per day for each day that the default persists. This penalty can be imposed to a maximum of Rs 100,000. Striking off of the Company: The registrar can remove the company’s name from the Register of Companies if he has reasonable grounds to believe that the firm is not carrying on

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Appointment Of Auditor – Companies Act, 2013

Companies Act 2013 / CA Bhuvnesh Goyal / April 15, 2024

Any individual trained to review and verify accounting data and recognised as a Chartered Accountant (CA) under the Chartered Accountant Act, 1949 is deemed to be an auditor. Every company needs to appoint an auditor as per the provisions of the Companies Act, 2013. As per Companies Act, 2013 (hereinafter referred as “said act”), the appointment of an auditor is governed by Section 139. It says that various provisions for the appointment, reappointment, and removal of an auditor. The appointment of an auditor can be made by the company’s Board of Directors or by the company’s shareholders at the Annual General Meeting (AGM). An Auditor as per Companies Act, 2013 The first auditor of a company shall be appointed by the BOD within 30 Days from the date of Incorporation of the company and such auditor shall hold office till the conclusion of the 1ST AGM in the case of failure of the Board to appoint such auditor, it shall inform the members, who shall within 90 days at an EGM appoint such auditor. Every company in its 1st Annual General Meeting shall appoint an auditor (Individual or a Firm) who shall hold office from the conclusion of that meeting till the conclusion of 6thAGM and thereafter till the conclusion of every 6th AGM. Auditor is a person or can be a firm of C.A. who is appointed by a company to having an independent and objective to examine the financial statements of the Company. According to Companies Act, 2013, defines as an auditor “an individual or a firm, including a limited liability partnership (LLP), who is appointed by the company to conduct an audit of its financial statements, as required under the Companies Act.” The auditor’s duties under the said act include verifying and auditing the financial statements of the company to determine whether they provide a true and fair view of the financial position, performance, and cash flows of the company. The auditor is also responsible for ensuring that the company has maintained proper books of account and internal financial controls. Furthermore, the auditor is required to report any instances of fraud, non-compliance with laws and regulations, or other material weaknesses observed during the course of the audit to the company’s management and the Board of Directors. The auditor is also required to provide a report on the financial statements audited by them to the shareholders of the company at the Annual General Meeting. Manner of appointment of auditors Appointment by Board of Directors: The Board of Directors shall appoint the first auditor within 30 days of the registration of the company. Appointment by Members: The members of the company shall appoint the subsequent auditors at every AGM. Eligibility Criteria: The auditor appointed by the company must be a Chartered Accountant in practice. Intimation to Registrar of Companies (ROC): The company shall intimate the ROC about the appointment of the auditor within 15 days of the AGM. Removal of Auditor: The auditor can be removed from the office before the expiry of his term only by a special resolution of the company after obtaining the prior approval of the Central Government. Rotation of Auditors: The said act has also introduced the concept of rotation of auditors. As per this, an auditor can hold office for a maximum of 5 consecutive years in a company. After that, he has to be rotated with another auditor who is not associated with the same firm. Consent of Auditor Section 139(1) and Rule 4 the Companies (Audit and Auditors) Rules 2014 Before appointment the written consent of the Auditor and a certificate shall be obtained from the auditor. The Auditor shall submit a Certificate that- He is not disqualified for appointment under the Act, regulations made there under the appointments are as per the terms provided under the act. The appointment within the time; The proper list of proceedings against the auditors or audit firm pending, if any. The notice to the registrar for the appointment of the auditor shall be in form ADT-1 within 15 days from the date of the appointment. Appointment of First Auditor in case of a Company other than a Government Company Appointment of auditor in case of Govt. Company Section 139(5) The CAG of India shall appoint an auditor duly qualified to be appointed as an auditor of companies under this Act, within 180 days from the commencement of the financial year, who shall hold office till the conclusion of the annual general meeting. In accordance with section 139(6) of the said act, if a company other than a government company, if the Board of Directors fails to appoint the first auditor, then the members of the company shall appoint the first auditor within 90 days at an Extraordinary General Meeting (EGM). The following steps must be followed for the appointment of the first auditor in case of a company other than a government company: The Board of Directors shall propose the name of an auditor to be appointed as the first auditor of the company. The proposed auditor shall provide his consent and eligibility certificate as per the provisions of the Act. If the Board of Directors fails to appoint the first auditor, the company shall hold an EGM within 90 days of the incorporation of the company to appoint the first auditor. The members of the company shall pass an ordinary resolution to appoint the first auditor, and the appointed auditor shall hold office until the conclusion of the first AGM. The appointed auditor shall also provide his consent and eligibility certificate to the company. It is essential to appoint the first auditor of the company within the stipulated time to ensure the proper functioning and compliance of the company with the provisions of the Companies Act, 2013. The appointment of an auditor in the first AGM of the company is mandatory under the Act, and any delay in the appointment of the auditor may result in the company facing penalties and non-compliance issues. Appointment of 1ST Auditor Section 139(6) The first auditor of a company

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Inner Line Permit

Government Schemes / CA Bhuvnesh Goyal / April 15, 2024

An Inner Line Permit (ILP) is a travel document officially issued by the concerned state government permitting inward travel of an Indian citizen in a protected territory. The Inner Line Permit was in the news recently when, in December 2020, Union Home Minister Amit Shah stated that the ILP was an “important step taken by the Central Government towards the betterment of the state of Manipur”. An Inner Line Permit is a travel document that allows an Indian citizen to visit a state that is protected under the Government. Indians must obtain a permit for entering into the protected or restricted areas within the country. Inner Line Permit is issued under the Bengal Eastern Frontier Regulation, 1873, by the respective state governments. Overview of the Inner Line Permit The Inner Line Permit was implemented as part of the Bengal Eastern Frontier Regulation of 1873. It was enacted to protect the commercial interests of the British Empire by preventing its subjects (at the time, Indians) from trading in these regions. Upon independence, the ‘British Citizens’ was replaced with ‘Indian Citizens’. The ILP was applicable earlier to 3 northeastern states: Mizoram, Arunachal Pradesh and Nagaland. On December 11th 2020, Manipur became the fourth northeastern state after an order to include the Inner Line Permit was signed by President Ram Nath Kovind. An Inner Line Permit was first required in some parts of the Leh District in Ladakh. It was abolished on 1 May 2014, but foreign nationals were required to get a Protected Area Permit. Yet, in 2017 it was implemented once more in 2017. Legislators and the general public in Meghalaya, Assam and Andaman and Nicobar islands also have demands for the implementation of the ILP in their respective states. States Which Require Inner Line Permit The Inner Line Permit is applicable for the following three Northeastern states. Residents of these states can visit the respective states without the IPL. Arunachal Pradesh Mizoram Nagaland Inner Line Permit System in Arunachal Pradesh Inner Line Permit is issued by the secretary (political) of the Government of Arunachal Pradesh. The ILP is mandatory for entering Arunachal Pradesh through any of the check gates across the interstate border with Assam or Nagaland. Validity of ILP An ILP for temporary visitors is valid for 7 days and can be extended. ILP for employment in the state and their immediate family members is valid for a year. Type of ILP Following two types of Inner Line Permit is issued in Arunachal Pradesh: Single Permit Group Permit Documents Required Any of the following identity documents is necessary for applying for Inner Line Permit in Arunachal Pradesh. Pan Card Aadhaar Card Driving License Passport Voter Id Passport Size Photo Application Fee The applicant needs to pay Rs.100 application fee for applying for the Inner Line Permit in Arunachal Pradesh. Application Procedure The applicant needs to access the official webpage of Arunachal Pradesh Inner Line Permit. By clicking on the eILP option, the application form will be displayed. Provide relevant information and mail ID. The email ID will be verified before further processing of the ILP application. The login information will be sent to the registered email ID. Upload the documents, on submission of the application; it will be processed by the concerned authority. The status can be monitored using the Check Status option. On approval of the application, the Payment link will be activated and the applicant needs to make an online payment for approval and issuance of Inner Line Permit. After payment and on Approval the “Print” link will be activated for the printing of the permit, which can be viewed after login. Inner Line Permit System in Mizoram Inner Line Permit in Mizoram can be obtained from Liaison Officer, Government of Mizoram from the following cities: Kolkata Silchar Shillong Guwahati Type of ILP Following two types of Inner Line Permit is issued in Mizoram Temporary ILP Regular ILP Validity of ILP The temporary ILP is valid for 15 days and can be extended. The regular ILP is valid for 6 months and it can be renewed twice for another 6 months. However, sponsorship from a resident or a Government Department is required. Documents Required Following documents are necessary for obtaining Inner Line Permit in Mizoram. Passport size photo Driving License Voter ID Department ID Note: For tourists originating from Cachar, Hailakandi and Karimganj districts of Assam State should submit Electoral Roll details due to porous international boundary with Bangladesh. Application Fee The application fee for getting ILP in Mizoram is tabulated here: Sl.No Type of Fee Fee Structure 1 Application Form Rs.20 2 Processing Fee Rs.100 3 Renewal Fee Rs.20 Application Procedure To get the Inner Line Permit in Mizoram, the applicant needs to submit an application form to the Resident Commissioner along with the documents. On verification of document and application, the commissioner will issue ILP for entering into the state. Renewal of ILP Renewal for both Temporary and Regular ILP can be renewed by submitting an application form at District Commissioner’s Office located at Treasury Square, Aizawl. ILP for Foreigners All foreigners have to register at the office of Superintendent of Police (CID/SB) Mizoram who is the designated Foreigners Registration Officer (FRO) of the State within 24 hours of arrival. Citizens of Afghanistan, China and Pakistan and foreign nationals having their origin in India would continue to require prior approval of the Ministry of Home Affairs before entering the state. Inner Line Permit System in Nagaland The Deputy Commissioner, Government of Nagaland is issuing ILP in Nagaland. Inner Line Permit can be filled Online as well as Offline. The procedure to obtain Inner Line Permit in Nagaland is explained in step by step procedure. The applicant must be a registered user of the official website of Government of Nagaland to get the Inner Line Permit. Access the official website of Nagaland Government and click on How to apply option from home page. In the case of a new user, click on the New User link, it will redirect to the new page.

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