Legal Roll Over of India

Knock ! Knock!!!

Who is There????

Companies Act, 2013

Knock ! Knock !!!

Who is There???

SEBI (LODR) Regulations 2015

Knock ! Knock!!

Who is There!!

Direct Tax Code…

Seems like its some party time, so many guests tonight!!!

Well on a lighter note all these knocks are nothing but Legal Roll Over of India. Let’s have a quick look at the new laws being introduced in past few years, in this article we will discuss the new acts introduced and in subsequent articles we will go through the laws one by one. Being the Company Secretary my eyebrows raised and welcomed Companies Act, 2013 on 29^th August, 2013 but then this seems the beginning and the roll over started:

•  Companies Act, 2013 : Applicable w.e.f 1^st April, 2014 replaced the Companies Act, 1956 making the corporates more compliant and transparent ensuring better governance.
• SEBI (LODR) Regulations, 2015 : Applicable w.e.f 1^st December, 2015 replaced the old listing agreement and is more in sync with the Companies Act, 2013.

•          Direct Tax Code : Applicability : not notified yet, but when notifies this will replace Income Tax Act, 1961
•          Place of Effective Management (PoEM) : Applicability Date : 1^st April, 2017 this rule got it route from the Finance Act, 2015 and now shall be used to test of the tax applicability of the corporates based on their place of effective management in India or outside.
•         General Anti Avoidance Act (GARR) : Applicability Date : 1^st April, 2017 this rules aimed at minimizing tax avoidance for investments made by entities based in tax havens.
•          IndAS (Indian Accounting Standard) : Applicable w.e.f 1^st April, 2017 this is to make the accounting standards more in sync with the IFRS(International Financial Reporting Standards) keeping in view the globalization effects.
•        Goods & Service Tax (GST) : Applicable w.e.f 1^st July, 2017 will be replacing service tax
•          Insolvency and Bankruptcy Code :   Applicable w.e.f 28^th May, 2016 to stop the misuse of insolvency or BIFR status declaration by the corporates and limit the NPAs of bank.

But this is not the all in one list, more changes in IPRs, IT act, money laundering amendments and lot more coming in.

A gun without bullet is of no use and a professional without upgrade of the upcoming changes on laws is of no use. All new laws coming in is a sign of legal roll over of the country, in one or other manner all inter linked with each other and all making the legal compliance more difficult in words of corporates and more transparent and less corrupt in language of government and law makers. We the professionals are link between the two , to make sure that the vehicle don’t break on the way in journey we need to check its Greece , oil , break etc .

We the mechanic of this vehicle need to upgrade ourselves with the upcoming laws to maintain and ensure no breakdowns and least or no litigation due to negligence of law. Afterall negligence of law is no excuse!!!

By

Nikita Singh