Filed GNL-2 for Auditor appointment-Resubmission mail by MCA
CA Pratik Anand
Most of the Companies Filed form ADT-1 as an attachment with form GNL-2 before the e-form ADT-1 was made available by the MCA.
Since the Form GNL-2 had no mandatory attachments and also there was no information about the attachments to Form ADT-1, most of the Companies only filed form ADT-1 as an attachment to form GNL-2 and did not file the other attachments.
The new form ADT-1 has prescribed three mandatory attachments viz:
1. Copy of AGM Resolution in which auditor is appointed
2. Intimation letter by Company to the auditor informing him of his appointment
3. Consent Letter by the auditor
Most of the companies only filed ADT-1 as an attachment to form GNL-2 and did not file the other attachments as stated above. Such companies have now started receiving E-mails from the MCA regarding resubmission of Form GNL-2 stating that either Auditor's consent letter or the AGM Resolution or the Intimation has not been attached with GNL-2.
Such Companies have to adopt the following process for resubmission:
- The Companies have to file Form-67 i.e 'form for filing addendum for rectification of defects or incompleteness'.
- Form-67 is available on the MCA Website in the section 'Company Forms Download'.
- After opening Form-67, you have to write the SRN of Form GNL-2.
- The system will automatically show the defect in the original form and the type of correction needed. Mostly the rectification needed will be to attach the AGM Resolution or the Auditor's consent letter or intimation or all of them.
- Attach the required documents as required in the new e-form ADT-1 in Form-67. You will have to specify details of the further information given by you i.e the additional documents attached in Form-67.
- You have to specify the type of document to be attached in Form-67 by selecting from the drop down list.
- The form will have to be then signed by the Director/Managing director as the case may be.
- After signing, press the prescrutiny button to ensure there are no errors in the form.
- Lastly, upload form-67 on the MCA Website. There will be no fees for uploading this form.
Notes:
You have to file Form-67 within time as specified in the resubmission message received by you otherwise the original form submitted by you will be deemed as invalid.
(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)
CSR- Commitment towards social good
CS Nisha Sharma
CSR is the process by which an organization thinks about and evolves its relationships with stakeholders for the common good, and demonstrates its commitment in this regard by adoption of appropriate business processes and strategies. Thus CSR is not charity or mere donations CSR is a way of conducting business, by which corporate entities visibly contribute to the social good.
With CSR to be a compulsory compliance for a prescribed set of companies, India has become the first country in the whole world to make it mandatory for the corporate. CSR should not be taken as an obligation but a social responsibility which should be fulfilled strategically, systematically and thoughtfully.
Let's discuss some of the provisions of CSR:
As per section 135 and the Companies (Corporate Social Responsibility) Rules, 2014 of Companies Act, 2013:
- Applicable to all companies incorporated in India and having :
- Net profit of INR 5 Crore or more
- Turnover of INR 1000 Crore or more
- Net worth of INR 500 Crore or more
During any financial year require to constitute CSR committee.
*My view: According to me the limit of "5 Crore or more" is very less because even a small scale company is able to make such a profit and for a company making a few numbers more than 5 crores say 6.5 crore and an average of let's say 6 crore for the previous 3 financial years, it is hard to spend 2% on CSR activities. Spending 12 lacs in CSR activities in just an year is just like throbbing someone's head with a hammer and it seems so compulsory to throb that hammer.
Infact this is the reason the owners of Private Companies are looking at this NCA as a challenge to their business. Increased number of compliances has increased the lines of their foreheads and I am afraid that could lead to increased professionals who will serch for loopholes than the professionals actually complying with the law with true letter and spirit.
At times we adopt a different roadmap to attain a given goal and I am afraid that the different roadmap would be not revealing the true numbers in the balance sheet just to save the company from getting hit from the hammer of NCA.
On the other hand provisions like CSR are likely to teach the SMEs to be more law compliant and to learn the laws quickly which were previously been skipped from them as they had relaxations and moreover ways to find loopholes. I am quite satisfied with the new NCA in this context.
CSR spending = 2% of the average Net Profits made by the company during every block of three years
Net Profit' for the section 135 and these rules shall mean net profit before tax as per books of accounts and shall not include profits arising from branches outside India.
2. Steps to be followed:
Step1. Formation of CSR Committee comprising two directors (in case of Private Company)
Committee shall:
a. Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII; (Schedule VII is mentioned below)
b. Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
c. Monitor the Corporate Social Responsibility Policy of the company from time to time.
Step2. Approval of the CSR committee and the policy made at the board meeting.
- Activities as per Schedule VII which may be included by companies in their Corporate Social Responsibility Policies:—
(i) Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water including contribution towards "Swacch Bharat Kosh" set up by the central government for the promotion of sanitation.
(ii) Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
(iii) promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
(iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the "Clean Ganga Fund" set up by Central Government for rejuvenation of river Ganga;
(v) protection of national heritage, alt and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts:
(vi) measures for the benefit of armed forces veterans, war widows and their dependents;
(vii) Training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;
(viii) Contribution to the P me Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste & the Scheduled Tribes, other backward classes, minorities and women;
(ix) contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Movement
(x) Rural development projects.", minorities and women; and
(xi) Slum Area Development and such other activities as may be prescribed by the Ministry from time to time.
4. How to contribute
a. The Board of a company may decide to undertake its CSR activities approved by the CSR committee, through
- a registered trust or
- a registered society or
- a company established under section 8 of the Act by the company or its holding or subsidiary or associate company or otherwise;
- May collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules.
5. What would not be CSR
a. CSR programs not undertaken in India.
b. Activities that would benefit employees only
c. Contribution of any amount directly or indirectly to any political party.
d. Expenditure in the normal course of business.
Thus, although on a social note CSR is a good initiative but to me the threshold limit of 5 crore or more was quite surprising but if the intention was to bring SMEs into the threshold limit and making them follow the new rule than hats off to the NCA. Nevertheless the corporate have welcomed CSR with open hearts and the term corporate sustainability has really been given emphasis just spending for the sake of philanthropy and social cause.
Finance minister Arun Jaitley on Tuesday said companies are expected to pump in as much as Rs 14,000 crore for Corporate Social Responsibility (CSR) activities in 2014-15 and the amount will be increasing in subsequent years.
Read Other Articles of CS Nisha Sharma
Cellular Mobile Service Provider not entitled to avail CENVAT credit on Tower Parts & Pre-fabricated buildings
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Cellular Mobile Service Provider not entitled to avail C... In any case towers and Pre-fabricated buildings are in the nature of immovable goods and are non-marketable and non-excisable. If this be the position the... | |||||||
INSTRUCTION No. F. No. 267/60/2014-CX.8,
Dated- 11th November, 2014
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Subject: Judgement of Hon'ble Bombay High Court in the case of M/s Bharti Airtel Ltd. vs The Commissioner of Central Excise, Pune III in Central Excise Appeal No. 73 of 2012 and 119 of 2012 (reported as 2014-TIOL-1452-HC-MUM-ST) – reg.
Attention is invited to the judgement of Hon'ble Bombay High Court in the case of M/s Bharti Airtel Ltd. vs The Commissioner of Central Excise, Pune III in Central Excise Appeal No. 73 of 2012 and 119 of 2012 (reported as 2014-TIOL-1452-HC-MUM-ST), wherein regarding the issue whether Cellular Mobile Service Provider is entitled to avail CENVAT credit on Tower Parts & Pre-fabricated buildings, the Hon'ble Bombay High Court has held in favour of revenue. While relying on the decision of the Hon'ble Supreme Court in the case of Saraswati Sugar Mills vs CCE Delhi, (2011(270)ELT 465) = 2011-TIOL-73-SC-CX, the Hon'ble Bombay High Court has, inter-alia, observed as under:
"It would be misconceived and absurd to accept that tower is a part of antenna. An accessory or a part of any goods would necessarily mean such accessory or part which would be utilized to make the goods a finished product or such articles which would go into the composition of another article. The towers are structures fastened to the earth on which the antennas are installed and hence cannot be considered to be an accessory or part of the antenna. The position in this regard stands fortified from the decision of the Supreme Court in the case of "Saraswati Sugar Mills vs CCE Delhi, (2011 (270) ELT 465) = 2011-TIOL-73-SC-CX". From the definition of the term 'input' as defined in 2 (k) of the Credit rules it is clear that the Appellant is a service provider and not a manufacturer of capital goods. A close scrutiny of the definition of the term capital goods and input indicates that only those goods as used by a manufacturer would qualify for credit of the duty paid. As observed hereinabove a service provider like the appellant can avail of the credit of the duty paid only if the goods fall within the ambit of the definition of capital goods as defined under Rule 2(a)(A) of the Credit Rules. The contention of the appellant that they are entitled for the credit of the duty paid towers and PFB and printers is defeated by the very wording of the definition of input. In any case towers and PFB are in the nature of immovable goods and are non-marketable and non-excisable. If this be the position then towers and parts thereof cannot be classified as inputs so as to fall within the definition of Rule 2(k) of the credit rules. We clarify that we are not deciding any wider question but restricting our conclusion to the facts and circumstances which have fell for our consideration in these appeals.
We therefore find no infirmity or illegality in the findings as recorded by the tribunal in holding that the subject items are neither capital goods under Rule 2(a) nor inputs under Rule 2(k) of the Credit Rules and hence CENVAT credit of the duty paid thereon was not admissible to the appellants. The appeals are devoid of merit and accordingly stand rejected. No orders as to costs."
- The above decision of the Hon'ble Bombay High Court is brought to notice of all concerned for compliance.
Yours faithfully,
(Vikas Kumar)
Director (CX-8)
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Cellular Mobile Service Provider not entitled to avail C... In any case towers and Pre-fabricated buildings are in the nature of immovable goods and are non-marketable and non-excisable. If this be the position the... | |||||||
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