newsletter - avantis.co.in weekly newsletter ... 2015-2020 dgft issues list of ineligible categories...
TRANSCRIPT
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 1
copyAvantis Softech LLP
Weekly
Newsletter
December 8 2017
Table of Contents
Finance 3
CBEC publishes GST Anti-Profiteering Measures to Benefit Consumers
CBEC notifies Exchange Rate of Foreign Currency Relating to Imported and Export Goods
Regulatory 3
RBI issues clarification for various Co-operative societies using the word ldquoBankrdquo in their names
Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India
Categorization and Rationalization of Mutual Fund Schemes
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
TRAI directs service providers to remove Analogue RIOs from websites
TRAI releases recommendations on Network Testing before Commercial Launch of Services
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS
in Appendix 3B of Foreign Trade Policy 2015-20
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Patents (Amendment) Rules 2017
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 2
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Human Resource 9
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
EPFO directs members to update Life Certificate for the year 2018
Corporate 10
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
MCA amends Companies (Cost Records and Audit) Rules 2014
Bihar 11
Bihar Private Security Agencies (Amendment) Rules 2017
Chhattisgarh 11
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
Jharkhand 12
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods
are in movement or in transit storage
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 3
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Finance
CBEC publishes GST Anti-Profiteering Measures to Benefit Consumers
The Central Board of Excise and Customs (CBEC) has published the process to be followed by affected consumers not receiving the benefit due reduction in rate of GST on the supply of goods or services and has also uploaded the format for filing anti-profiteering application so as to ensure that all consumers enjoy the benefit of lower prices of goods and services under GST
Under GST suppliers of goods and services must pass on any reduction in the rate of tax or the benefit of input tax credit to consumers by way of commensurate reduction in prices If this is not done the consumers interest is protected by the National Anti-profiteering Authority which may order
(a) reduction in prices
(b) return of the amount not passed on with interest at
the rate of 18 to the recipient
(c) imposition of penalty and
(d) cancellation of registration of the supplier
Affected consumers may file an application in the prescribed format before the Standing Committee on Anti-profiteering if the profiteering has all-India character OR before the State Screening Committees if the profiteering is of local nature
Download the format for filing anti-profiteering application at httpwwwcbecgovinresourceshtdocs-cbecgstformat_20for_filing_anti-profiteering_application_newpdf
[Ticker News]
URL httpwwwcbecgovinresourceshtdocs-cbecgstadv_GSTpdf
CBEC notifies Exchange Rate of Foreign Currency Relating to Imported and Export Goods
In accordance with Section 14 of the Customs Act 1962 the Central Board of Excise and Customs releases Exchange Rate Notification for valuation of goods for purposes of assessment under the said Act In international trade the value of goods is determined by converting the foreign currency into INR using the customs exchange rate This is the deemed value of goods on which a duty of customs will be chargeable
The Central Board of Excise and Customs (CBEC) on December 7 2017 has issued an exchange rate notification giving the rate of exchange of conversion of the below mentioned foreign currencies in Indian rupees which shall be effective from December 8 2017
Australian Dollar
Bahrain Dinar
Canadian Dollar
Chinese Yuan
Danish Kroner
EURO
Hong Kong Dollar
Kuwait Dinar
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Qatari Riyal
Saudi Arabian Riyal
Singapore Dollar
South African Rand
Swedish Kroner
Swiss Franc
UAE Dirham
US Dollar
Japanese Yen
Kenya Shilling
[Notification No 113 2017 - Customs (NT)]
URL httpwwwcbecgovinresourceshtdocs-cbeccustomscs-actnotificationsnotfns-2017cs-nt2017csnt113-2017pdf
Regulatory
RBI issues clarification for various Co-operative societies using the word ldquoBankrdquo in their names
The Reserve Bank of India (RBI) has noticed that some Co-operative Societies are using the word ldquoBankrdquo in their names This is a violation of Section 7 of the Banking Regulation Act 1949
It has also come to the notice of RBI that some Co-operative societies are accepting deposits from non-members nominal members associate members which tantamount to conducting banking business in violation of the provisions of the BR Act 1949
Members of the public are hereby informed that such societies have neither been issued any licence under BR Act 1949 nor are they authorized by the RBI for doing banking business The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies Members of public are advised to exercise
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 4
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caution and carry out due diligence of such Co-operative societies before dealing with them
[Press Release 2017-20181467]
URL httpsrbidocsrbiorginrdocsPressReleasePDFsPR146791ACA334E8C942ADBBB416B9138C79A9PDF
Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
The Reserve Bank of India (RBI) based on consultations with stakeholders on the ldquoDraft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactionsrdquo has been decided to rationalise the MDR for debit cards based on the following criteria
a Categorisation of merchants on the basis of turnover
b Adoption of a differentiated MDR for QR-code based
transactions
c Specifying a ceiling on the maximum permissible MDR
for both lsquocard presentrsquo and lsquocard not presentrsquo
transactions
Accordingly the maximum MDR for debit card transactions shall be as under
Sr No
Merchant Category
Merchant Discount Rate (MDR) for debit card transactions (as a of
transaction value)
Physical POS infrastructure
including online card
transactions
QR code-based card acceptance
infrastructure
1 Small merchants (with turnover up to ₹ 20 lakh during the previous financial year)
Not exceeding 040 (MDR cap of ₹ 200 per transaction)
Not exceeding 030 (MDR cap of ₹ 200 per transaction)
2 Other merchants (with turnover above ₹ 20 lakh during the previous
Not exceeding 090 (MDR cap of ₹ 1000 per transaction)
Not exceeding 080 (MDR cap of ₹ 1000 per transaction)
financial year)
Banks shall ensure that the MDR levied on the merchant shall not exceed the cap rates as prescribed above irrespective of the entity which is deploying the card acceptance infrastructure at the merchant location
Banks are also advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards
[RBI2017-18105 DPSSCOPD No163302140032017-18]
URL httpsrbidocsrbiorginrdocsnotificationPDFsMDR06122017317CE333007D406A9002F5A119229563PDF
Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India
The Reserve Bank of India (RBI) vide notification dated December 07 2017 has been decided that all agency banks should settle their agency transactions for both funds and agency commission directly with the concerned Regional Office of Reserve Bank instead of routing them through any other agency bank that acts as aggregator in certain cases It effectively makes all agency banks to report government receipts directly to RBI instead of reporting them through any other agency bank So also for payments made by all agency banks on behalf of state governments get directly settled with the concerned Regional Office of RBI Agency Transaction detailsscrolls may be sent directly by individual agency bank to the concerned State GovernmentTreasury This arrangement is expected to improve management of State Government funds apart from reducing inefficiencies in the system
Agency Banks that are already settling their state government transactions with RBI directly may continue to do so Agency Banks that are hither to settling their transactions with other aggregator agency bank may stop such reporting Such banks should settle their agency transaction hereafter with RBI directly The new arrangement for settlement of state government funds on day to day basis (receipts and payments) directly with Reserve Bank will be with effect from January 1 2018 Thereby all agency commission claims beginning with the quarter ending March 31 2018 will be settled directly with the concerned Regional Office of Reserve Bank of India
[RBI2017-18107 DGBAGBDNo-149831020072017-18]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 5
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URL httpsrbidocsrbiorginrdocsnotificationPDFsNT1071F33DCCE541342ECB664EB42AA5DE01CPDF
Categorization and Rationalization of Mutual Fund Schemes
The Securities and Exchange Board of India (SEBI) vide Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 had issued guidelines regarding categorization and rationalization of Mutual Fund Schemes
Upon consideration of the subsequent representation received from Association of Mutual Funds of India (AMFI) the SEBI has decided to partially modify the aforesaid circular as under
i In Point 8 of the aforesaid circular after Clause c an
additional Clause lsquodrsquo shall be added as follows
ldquod While preparing the single consolidated list of stocks average full market capitalization of the previous six month of the stocks shall be consideredrdquo
ii In respect of Serial Numbers 3 4 6 7 8 and 9 of
Section B of Annexure to the aforesaid circular it is
clarified that Macaulay duration shall be at portfolio
level and accordingly the column lsquoType of Scheme
(Uniform description of scheme)rsquo of the respective
scheme of the aforesaid Serial Numbers is modified
and shall be read as given below
ldquoAn open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is between A to B years (please refer to page no__) Please refer to the page number of the Offer Document on which the concept of Macaulayrsquos Duration has been explainedrdquo
iii With respect to the Medium Duration Fund and
Medium to Long Duration Fund (Serial Number 7 and
Serial Number 8 of Section B of the Annexure to the
Circular) the characteristics of the scheme shall remain
the same under normal circumstances as stated in the
circular dated October 6 2017 However the fund
manager in the interest of investors may reduce the
portfolio duration of the aforementioned schemes up
to one year in case he has a view on interest rate
movements in light of anticipated adverse Securities
and Exchange Board of India situation The Asset
Management Company (AMC) shall be required to
mention its asset allocation under such adverse
situation in its offer documents Thus the modified
scheme characteristics for the following categories of
schemes would now read as follows
Medium Duration Fund - Investment in Debt amp
Money Market instruments such that the
Macaulay duration of the portfolio is between
3 years ndash 4 years Portfolio Macaulay duration
under anticipated adverse situation is 1 year to
4 years
Medium to Long Duration Fund - Investment
in Debt amp Money Market instruments such
that the Macaulay duration of the portfolio is
between 4 years ndash 7 years Portfolio Macaulay
duration under anticipated adverse situation is
1 year to 7 years
Also whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively the Asset Management Company (AMC) shall be required to record the reasons for the same with adequate justification and maintain the same for inspection The written justifications shall be placed before the Trustees in the subsequent Trustee meeting Further the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI
iv Further Corporate Bond Funds (Serial Number 11 of
Section B of the Annexure to the Circular) would be
permitted to invest in AA+ and above rated
instruments Accordingly the Credit Risk Fund (Serial
Number 12 of Section B of the Annexure to the
Circular) would now be permitted to invest in AA and
below rated instruments (excluding AA+ rated
instruments)
v Serial Number 13 and 16 of Section B of the Annexure
to the Circular shall now read as follows
Category of
Schemes
Scheme Characteristics
Type of Schemes
Banking and PSU Fund
Minimum investment in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds ndash 80 of total assets
An open ended debt scheme predominantly investing in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds
Floater Fund
Minimum investment in floating rate
An open ended debt scheme predominantly
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
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instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
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URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
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capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
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URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
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EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
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URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
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Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 2
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Human Resource 9
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
EPFO directs members to update Life Certificate for the year 2018
Corporate 10
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
MCA amends Companies (Cost Records and Audit) Rules 2014
Bihar 11
Bihar Private Security Agencies (Amendment) Rules 2017
Chhattisgarh 11
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
Jharkhand 12
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods
are in movement or in transit storage
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 3
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Finance
CBEC publishes GST Anti-Profiteering Measures to Benefit Consumers
The Central Board of Excise and Customs (CBEC) has published the process to be followed by affected consumers not receiving the benefit due reduction in rate of GST on the supply of goods or services and has also uploaded the format for filing anti-profiteering application so as to ensure that all consumers enjoy the benefit of lower prices of goods and services under GST
Under GST suppliers of goods and services must pass on any reduction in the rate of tax or the benefit of input tax credit to consumers by way of commensurate reduction in prices If this is not done the consumers interest is protected by the National Anti-profiteering Authority which may order
(a) reduction in prices
(b) return of the amount not passed on with interest at
the rate of 18 to the recipient
(c) imposition of penalty and
(d) cancellation of registration of the supplier
Affected consumers may file an application in the prescribed format before the Standing Committee on Anti-profiteering if the profiteering has all-India character OR before the State Screening Committees if the profiteering is of local nature
Download the format for filing anti-profiteering application at httpwwwcbecgovinresourceshtdocs-cbecgstformat_20for_filing_anti-profiteering_application_newpdf
[Ticker News]
URL httpwwwcbecgovinresourceshtdocs-cbecgstadv_GSTpdf
CBEC notifies Exchange Rate of Foreign Currency Relating to Imported and Export Goods
In accordance with Section 14 of the Customs Act 1962 the Central Board of Excise and Customs releases Exchange Rate Notification for valuation of goods for purposes of assessment under the said Act In international trade the value of goods is determined by converting the foreign currency into INR using the customs exchange rate This is the deemed value of goods on which a duty of customs will be chargeable
The Central Board of Excise and Customs (CBEC) on December 7 2017 has issued an exchange rate notification giving the rate of exchange of conversion of the below mentioned foreign currencies in Indian rupees which shall be effective from December 8 2017
Australian Dollar
Bahrain Dinar
Canadian Dollar
Chinese Yuan
Danish Kroner
EURO
Hong Kong Dollar
Kuwait Dinar
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Qatari Riyal
Saudi Arabian Riyal
Singapore Dollar
South African Rand
Swedish Kroner
Swiss Franc
UAE Dirham
US Dollar
Japanese Yen
Kenya Shilling
[Notification No 113 2017 - Customs (NT)]
URL httpwwwcbecgovinresourceshtdocs-cbeccustomscs-actnotificationsnotfns-2017cs-nt2017csnt113-2017pdf
Regulatory
RBI issues clarification for various Co-operative societies using the word ldquoBankrdquo in their names
The Reserve Bank of India (RBI) has noticed that some Co-operative Societies are using the word ldquoBankrdquo in their names This is a violation of Section 7 of the Banking Regulation Act 1949
It has also come to the notice of RBI that some Co-operative societies are accepting deposits from non-members nominal members associate members which tantamount to conducting banking business in violation of the provisions of the BR Act 1949
Members of the public are hereby informed that such societies have neither been issued any licence under BR Act 1949 nor are they authorized by the RBI for doing banking business The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies Members of public are advised to exercise
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 4
copyAvantis Softech LLP
caution and carry out due diligence of such Co-operative societies before dealing with them
[Press Release 2017-20181467]
URL httpsrbidocsrbiorginrdocsPressReleasePDFsPR146791ACA334E8C942ADBBB416B9138C79A9PDF
Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
The Reserve Bank of India (RBI) based on consultations with stakeholders on the ldquoDraft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactionsrdquo has been decided to rationalise the MDR for debit cards based on the following criteria
a Categorisation of merchants on the basis of turnover
b Adoption of a differentiated MDR for QR-code based
transactions
c Specifying a ceiling on the maximum permissible MDR
for both lsquocard presentrsquo and lsquocard not presentrsquo
transactions
Accordingly the maximum MDR for debit card transactions shall be as under
Sr No
Merchant Category
Merchant Discount Rate (MDR) for debit card transactions (as a of
transaction value)
Physical POS infrastructure
including online card
transactions
QR code-based card acceptance
infrastructure
1 Small merchants (with turnover up to ₹ 20 lakh during the previous financial year)
Not exceeding 040 (MDR cap of ₹ 200 per transaction)
Not exceeding 030 (MDR cap of ₹ 200 per transaction)
2 Other merchants (with turnover above ₹ 20 lakh during the previous
Not exceeding 090 (MDR cap of ₹ 1000 per transaction)
Not exceeding 080 (MDR cap of ₹ 1000 per transaction)
financial year)
Banks shall ensure that the MDR levied on the merchant shall not exceed the cap rates as prescribed above irrespective of the entity which is deploying the card acceptance infrastructure at the merchant location
Banks are also advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards
[RBI2017-18105 DPSSCOPD No163302140032017-18]
URL httpsrbidocsrbiorginrdocsnotificationPDFsMDR06122017317CE333007D406A9002F5A119229563PDF
Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India
The Reserve Bank of India (RBI) vide notification dated December 07 2017 has been decided that all agency banks should settle their agency transactions for both funds and agency commission directly with the concerned Regional Office of Reserve Bank instead of routing them through any other agency bank that acts as aggregator in certain cases It effectively makes all agency banks to report government receipts directly to RBI instead of reporting them through any other agency bank So also for payments made by all agency banks on behalf of state governments get directly settled with the concerned Regional Office of RBI Agency Transaction detailsscrolls may be sent directly by individual agency bank to the concerned State GovernmentTreasury This arrangement is expected to improve management of State Government funds apart from reducing inefficiencies in the system
Agency Banks that are already settling their state government transactions with RBI directly may continue to do so Agency Banks that are hither to settling their transactions with other aggregator agency bank may stop such reporting Such banks should settle their agency transaction hereafter with RBI directly The new arrangement for settlement of state government funds on day to day basis (receipts and payments) directly with Reserve Bank will be with effect from January 1 2018 Thereby all agency commission claims beginning with the quarter ending March 31 2018 will be settled directly with the concerned Regional Office of Reserve Bank of India
[RBI2017-18107 DGBAGBDNo-149831020072017-18]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 5
copyAvantis Softech LLP
URL httpsrbidocsrbiorginrdocsnotificationPDFsNT1071F33DCCE541342ECB664EB42AA5DE01CPDF
Categorization and Rationalization of Mutual Fund Schemes
The Securities and Exchange Board of India (SEBI) vide Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 had issued guidelines regarding categorization and rationalization of Mutual Fund Schemes
Upon consideration of the subsequent representation received from Association of Mutual Funds of India (AMFI) the SEBI has decided to partially modify the aforesaid circular as under
i In Point 8 of the aforesaid circular after Clause c an
additional Clause lsquodrsquo shall be added as follows
ldquod While preparing the single consolidated list of stocks average full market capitalization of the previous six month of the stocks shall be consideredrdquo
ii In respect of Serial Numbers 3 4 6 7 8 and 9 of
Section B of Annexure to the aforesaid circular it is
clarified that Macaulay duration shall be at portfolio
level and accordingly the column lsquoType of Scheme
(Uniform description of scheme)rsquo of the respective
scheme of the aforesaid Serial Numbers is modified
and shall be read as given below
ldquoAn open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is between A to B years (please refer to page no__) Please refer to the page number of the Offer Document on which the concept of Macaulayrsquos Duration has been explainedrdquo
iii With respect to the Medium Duration Fund and
Medium to Long Duration Fund (Serial Number 7 and
Serial Number 8 of Section B of the Annexure to the
Circular) the characteristics of the scheme shall remain
the same under normal circumstances as stated in the
circular dated October 6 2017 However the fund
manager in the interest of investors may reduce the
portfolio duration of the aforementioned schemes up
to one year in case he has a view on interest rate
movements in light of anticipated adverse Securities
and Exchange Board of India situation The Asset
Management Company (AMC) shall be required to
mention its asset allocation under such adverse
situation in its offer documents Thus the modified
scheme characteristics for the following categories of
schemes would now read as follows
Medium Duration Fund - Investment in Debt amp
Money Market instruments such that the
Macaulay duration of the portfolio is between
3 years ndash 4 years Portfolio Macaulay duration
under anticipated adverse situation is 1 year to
4 years
Medium to Long Duration Fund - Investment
in Debt amp Money Market instruments such
that the Macaulay duration of the portfolio is
between 4 years ndash 7 years Portfolio Macaulay
duration under anticipated adverse situation is
1 year to 7 years
Also whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively the Asset Management Company (AMC) shall be required to record the reasons for the same with adequate justification and maintain the same for inspection The written justifications shall be placed before the Trustees in the subsequent Trustee meeting Further the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI
iv Further Corporate Bond Funds (Serial Number 11 of
Section B of the Annexure to the Circular) would be
permitted to invest in AA+ and above rated
instruments Accordingly the Credit Risk Fund (Serial
Number 12 of Section B of the Annexure to the
Circular) would now be permitted to invest in AA and
below rated instruments (excluding AA+ rated
instruments)
v Serial Number 13 and 16 of Section B of the Annexure
to the Circular shall now read as follows
Category of
Schemes
Scheme Characteristics
Type of Schemes
Banking and PSU Fund
Minimum investment in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds ndash 80 of total assets
An open ended debt scheme predominantly investing in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds
Floater Fund
Minimum investment in floating rate
An open ended debt scheme predominantly
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
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instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
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URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
copyAvantis Softech LLP
URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
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EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
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URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
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Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 3
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Finance
CBEC publishes GST Anti-Profiteering Measures to Benefit Consumers
The Central Board of Excise and Customs (CBEC) has published the process to be followed by affected consumers not receiving the benefit due reduction in rate of GST on the supply of goods or services and has also uploaded the format for filing anti-profiteering application so as to ensure that all consumers enjoy the benefit of lower prices of goods and services under GST
Under GST suppliers of goods and services must pass on any reduction in the rate of tax or the benefit of input tax credit to consumers by way of commensurate reduction in prices If this is not done the consumers interest is protected by the National Anti-profiteering Authority which may order
(a) reduction in prices
(b) return of the amount not passed on with interest at
the rate of 18 to the recipient
(c) imposition of penalty and
(d) cancellation of registration of the supplier
Affected consumers may file an application in the prescribed format before the Standing Committee on Anti-profiteering if the profiteering has all-India character OR before the State Screening Committees if the profiteering is of local nature
Download the format for filing anti-profiteering application at httpwwwcbecgovinresourceshtdocs-cbecgstformat_20for_filing_anti-profiteering_application_newpdf
[Ticker News]
URL httpwwwcbecgovinresourceshtdocs-cbecgstadv_GSTpdf
CBEC notifies Exchange Rate of Foreign Currency Relating to Imported and Export Goods
In accordance with Section 14 of the Customs Act 1962 the Central Board of Excise and Customs releases Exchange Rate Notification for valuation of goods for purposes of assessment under the said Act In international trade the value of goods is determined by converting the foreign currency into INR using the customs exchange rate This is the deemed value of goods on which a duty of customs will be chargeable
The Central Board of Excise and Customs (CBEC) on December 7 2017 has issued an exchange rate notification giving the rate of exchange of conversion of the below mentioned foreign currencies in Indian rupees which shall be effective from December 8 2017
Australian Dollar
Bahrain Dinar
Canadian Dollar
Chinese Yuan
Danish Kroner
EURO
Hong Kong Dollar
Kuwait Dinar
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Qatari Riyal
Saudi Arabian Riyal
Singapore Dollar
South African Rand
Swedish Kroner
Swiss Franc
UAE Dirham
US Dollar
Japanese Yen
Kenya Shilling
[Notification No 113 2017 - Customs (NT)]
URL httpwwwcbecgovinresourceshtdocs-cbeccustomscs-actnotificationsnotfns-2017cs-nt2017csnt113-2017pdf
Regulatory
RBI issues clarification for various Co-operative societies using the word ldquoBankrdquo in their names
The Reserve Bank of India (RBI) has noticed that some Co-operative Societies are using the word ldquoBankrdquo in their names This is a violation of Section 7 of the Banking Regulation Act 1949
It has also come to the notice of RBI that some Co-operative societies are accepting deposits from non-members nominal members associate members which tantamount to conducting banking business in violation of the provisions of the BR Act 1949
Members of the public are hereby informed that such societies have neither been issued any licence under BR Act 1949 nor are they authorized by the RBI for doing banking business The insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies Members of public are advised to exercise
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 4
copyAvantis Softech LLP
caution and carry out due diligence of such Co-operative societies before dealing with them
[Press Release 2017-20181467]
URL httpsrbidocsrbiorginrdocsPressReleasePDFsPR146791ACA334E8C942ADBBB416B9138C79A9PDF
Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
The Reserve Bank of India (RBI) based on consultations with stakeholders on the ldquoDraft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactionsrdquo has been decided to rationalise the MDR for debit cards based on the following criteria
a Categorisation of merchants on the basis of turnover
b Adoption of a differentiated MDR for QR-code based
transactions
c Specifying a ceiling on the maximum permissible MDR
for both lsquocard presentrsquo and lsquocard not presentrsquo
transactions
Accordingly the maximum MDR for debit card transactions shall be as under
Sr No
Merchant Category
Merchant Discount Rate (MDR) for debit card transactions (as a of
transaction value)
Physical POS infrastructure
including online card
transactions
QR code-based card acceptance
infrastructure
1 Small merchants (with turnover up to ₹ 20 lakh during the previous financial year)
Not exceeding 040 (MDR cap of ₹ 200 per transaction)
Not exceeding 030 (MDR cap of ₹ 200 per transaction)
2 Other merchants (with turnover above ₹ 20 lakh during the previous
Not exceeding 090 (MDR cap of ₹ 1000 per transaction)
Not exceeding 080 (MDR cap of ₹ 1000 per transaction)
financial year)
Banks shall ensure that the MDR levied on the merchant shall not exceed the cap rates as prescribed above irrespective of the entity which is deploying the card acceptance infrastructure at the merchant location
Banks are also advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards
[RBI2017-18105 DPSSCOPD No163302140032017-18]
URL httpsrbidocsrbiorginrdocsnotificationPDFsMDR06122017317CE333007D406A9002F5A119229563PDF
Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India
The Reserve Bank of India (RBI) vide notification dated December 07 2017 has been decided that all agency banks should settle their agency transactions for both funds and agency commission directly with the concerned Regional Office of Reserve Bank instead of routing them through any other agency bank that acts as aggregator in certain cases It effectively makes all agency banks to report government receipts directly to RBI instead of reporting them through any other agency bank So also for payments made by all agency banks on behalf of state governments get directly settled with the concerned Regional Office of RBI Agency Transaction detailsscrolls may be sent directly by individual agency bank to the concerned State GovernmentTreasury This arrangement is expected to improve management of State Government funds apart from reducing inefficiencies in the system
Agency Banks that are already settling their state government transactions with RBI directly may continue to do so Agency Banks that are hither to settling their transactions with other aggregator agency bank may stop such reporting Such banks should settle their agency transaction hereafter with RBI directly The new arrangement for settlement of state government funds on day to day basis (receipts and payments) directly with Reserve Bank will be with effect from January 1 2018 Thereby all agency commission claims beginning with the quarter ending March 31 2018 will be settled directly with the concerned Regional Office of Reserve Bank of India
[RBI2017-18107 DGBAGBDNo-149831020072017-18]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 5
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URL httpsrbidocsrbiorginrdocsnotificationPDFsNT1071F33DCCE541342ECB664EB42AA5DE01CPDF
Categorization and Rationalization of Mutual Fund Schemes
The Securities and Exchange Board of India (SEBI) vide Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 had issued guidelines regarding categorization and rationalization of Mutual Fund Schemes
Upon consideration of the subsequent representation received from Association of Mutual Funds of India (AMFI) the SEBI has decided to partially modify the aforesaid circular as under
i In Point 8 of the aforesaid circular after Clause c an
additional Clause lsquodrsquo shall be added as follows
ldquod While preparing the single consolidated list of stocks average full market capitalization of the previous six month of the stocks shall be consideredrdquo
ii In respect of Serial Numbers 3 4 6 7 8 and 9 of
Section B of Annexure to the aforesaid circular it is
clarified that Macaulay duration shall be at portfolio
level and accordingly the column lsquoType of Scheme
(Uniform description of scheme)rsquo of the respective
scheme of the aforesaid Serial Numbers is modified
and shall be read as given below
ldquoAn open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is between A to B years (please refer to page no__) Please refer to the page number of the Offer Document on which the concept of Macaulayrsquos Duration has been explainedrdquo
iii With respect to the Medium Duration Fund and
Medium to Long Duration Fund (Serial Number 7 and
Serial Number 8 of Section B of the Annexure to the
Circular) the characteristics of the scheme shall remain
the same under normal circumstances as stated in the
circular dated October 6 2017 However the fund
manager in the interest of investors may reduce the
portfolio duration of the aforementioned schemes up
to one year in case he has a view on interest rate
movements in light of anticipated adverse Securities
and Exchange Board of India situation The Asset
Management Company (AMC) shall be required to
mention its asset allocation under such adverse
situation in its offer documents Thus the modified
scheme characteristics for the following categories of
schemes would now read as follows
Medium Duration Fund - Investment in Debt amp
Money Market instruments such that the
Macaulay duration of the portfolio is between
3 years ndash 4 years Portfolio Macaulay duration
under anticipated adverse situation is 1 year to
4 years
Medium to Long Duration Fund - Investment
in Debt amp Money Market instruments such
that the Macaulay duration of the portfolio is
between 4 years ndash 7 years Portfolio Macaulay
duration under anticipated adverse situation is
1 year to 7 years
Also whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively the Asset Management Company (AMC) shall be required to record the reasons for the same with adequate justification and maintain the same for inspection The written justifications shall be placed before the Trustees in the subsequent Trustee meeting Further the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI
iv Further Corporate Bond Funds (Serial Number 11 of
Section B of the Annexure to the Circular) would be
permitted to invest in AA+ and above rated
instruments Accordingly the Credit Risk Fund (Serial
Number 12 of Section B of the Annexure to the
Circular) would now be permitted to invest in AA and
below rated instruments (excluding AA+ rated
instruments)
v Serial Number 13 and 16 of Section B of the Annexure
to the Circular shall now read as follows
Category of
Schemes
Scheme Characteristics
Type of Schemes
Banking and PSU Fund
Minimum investment in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds ndash 80 of total assets
An open ended debt scheme predominantly investing in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds
Floater Fund
Minimum investment in floating rate
An open ended debt scheme predominantly
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
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instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
copyAvantis Softech LLP
URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
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URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
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EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
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URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
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Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 4
copyAvantis Softech LLP
caution and carry out due diligence of such Co-operative societies before dealing with them
[Press Release 2017-20181467]
URL httpsrbidocsrbiorginrdocsPressReleasePDFsPR146791ACA334E8C942ADBBB416B9138C79A9PDF
Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
The Reserve Bank of India (RBI) based on consultations with stakeholders on the ldquoDraft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactionsrdquo has been decided to rationalise the MDR for debit cards based on the following criteria
a Categorisation of merchants on the basis of turnover
b Adoption of a differentiated MDR for QR-code based
transactions
c Specifying a ceiling on the maximum permissible MDR
for both lsquocard presentrsquo and lsquocard not presentrsquo
transactions
Accordingly the maximum MDR for debit card transactions shall be as under
Sr No
Merchant Category
Merchant Discount Rate (MDR) for debit card transactions (as a of
transaction value)
Physical POS infrastructure
including online card
transactions
QR code-based card acceptance
infrastructure
1 Small merchants (with turnover up to ₹ 20 lakh during the previous financial year)
Not exceeding 040 (MDR cap of ₹ 200 per transaction)
Not exceeding 030 (MDR cap of ₹ 200 per transaction)
2 Other merchants (with turnover above ₹ 20 lakh during the previous
Not exceeding 090 (MDR cap of ₹ 1000 per transaction)
Not exceeding 080 (MDR cap of ₹ 1000 per transaction)
financial year)
Banks shall ensure that the MDR levied on the merchant shall not exceed the cap rates as prescribed above irrespective of the entity which is deploying the card acceptance infrastructure at the merchant location
Banks are also advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards
[RBI2017-18105 DPSSCOPD No163302140032017-18]
URL httpsrbidocsrbiorginrdocsnotificationPDFsMDR06122017317CE333007D406A9002F5A119229563PDF
Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India
The Reserve Bank of India (RBI) vide notification dated December 07 2017 has been decided that all agency banks should settle their agency transactions for both funds and agency commission directly with the concerned Regional Office of Reserve Bank instead of routing them through any other agency bank that acts as aggregator in certain cases It effectively makes all agency banks to report government receipts directly to RBI instead of reporting them through any other agency bank So also for payments made by all agency banks on behalf of state governments get directly settled with the concerned Regional Office of RBI Agency Transaction detailsscrolls may be sent directly by individual agency bank to the concerned State GovernmentTreasury This arrangement is expected to improve management of State Government funds apart from reducing inefficiencies in the system
Agency Banks that are already settling their state government transactions with RBI directly may continue to do so Agency Banks that are hither to settling their transactions with other aggregator agency bank may stop such reporting Such banks should settle their agency transaction hereafter with RBI directly The new arrangement for settlement of state government funds on day to day basis (receipts and payments) directly with Reserve Bank will be with effect from January 1 2018 Thereby all agency commission claims beginning with the quarter ending March 31 2018 will be settled directly with the concerned Regional Office of Reserve Bank of India
[RBI2017-18107 DGBAGBDNo-149831020072017-18]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 5
copyAvantis Softech LLP
URL httpsrbidocsrbiorginrdocsnotificationPDFsNT1071F33DCCE541342ECB664EB42AA5DE01CPDF
Categorization and Rationalization of Mutual Fund Schemes
The Securities and Exchange Board of India (SEBI) vide Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 had issued guidelines regarding categorization and rationalization of Mutual Fund Schemes
Upon consideration of the subsequent representation received from Association of Mutual Funds of India (AMFI) the SEBI has decided to partially modify the aforesaid circular as under
i In Point 8 of the aforesaid circular after Clause c an
additional Clause lsquodrsquo shall be added as follows
ldquod While preparing the single consolidated list of stocks average full market capitalization of the previous six month of the stocks shall be consideredrdquo
ii In respect of Serial Numbers 3 4 6 7 8 and 9 of
Section B of Annexure to the aforesaid circular it is
clarified that Macaulay duration shall be at portfolio
level and accordingly the column lsquoType of Scheme
(Uniform description of scheme)rsquo of the respective
scheme of the aforesaid Serial Numbers is modified
and shall be read as given below
ldquoAn open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is between A to B years (please refer to page no__) Please refer to the page number of the Offer Document on which the concept of Macaulayrsquos Duration has been explainedrdquo
iii With respect to the Medium Duration Fund and
Medium to Long Duration Fund (Serial Number 7 and
Serial Number 8 of Section B of the Annexure to the
Circular) the characteristics of the scheme shall remain
the same under normal circumstances as stated in the
circular dated October 6 2017 However the fund
manager in the interest of investors may reduce the
portfolio duration of the aforementioned schemes up
to one year in case he has a view on interest rate
movements in light of anticipated adverse Securities
and Exchange Board of India situation The Asset
Management Company (AMC) shall be required to
mention its asset allocation under such adverse
situation in its offer documents Thus the modified
scheme characteristics for the following categories of
schemes would now read as follows
Medium Duration Fund - Investment in Debt amp
Money Market instruments such that the
Macaulay duration of the portfolio is between
3 years ndash 4 years Portfolio Macaulay duration
under anticipated adverse situation is 1 year to
4 years
Medium to Long Duration Fund - Investment
in Debt amp Money Market instruments such
that the Macaulay duration of the portfolio is
between 4 years ndash 7 years Portfolio Macaulay
duration under anticipated adverse situation is
1 year to 7 years
Also whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively the Asset Management Company (AMC) shall be required to record the reasons for the same with adequate justification and maintain the same for inspection The written justifications shall be placed before the Trustees in the subsequent Trustee meeting Further the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI
iv Further Corporate Bond Funds (Serial Number 11 of
Section B of the Annexure to the Circular) would be
permitted to invest in AA+ and above rated
instruments Accordingly the Credit Risk Fund (Serial
Number 12 of Section B of the Annexure to the
Circular) would now be permitted to invest in AA and
below rated instruments (excluding AA+ rated
instruments)
v Serial Number 13 and 16 of Section B of the Annexure
to the Circular shall now read as follows
Category of
Schemes
Scheme Characteristics
Type of Schemes
Banking and PSU Fund
Minimum investment in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds ndash 80 of total assets
An open ended debt scheme predominantly investing in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds
Floater Fund
Minimum investment in floating rate
An open ended debt scheme predominantly
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
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instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
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URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
copyAvantis Softech LLP
URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
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EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
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URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
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Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 5
copyAvantis Softech LLP
URL httpsrbidocsrbiorginrdocsnotificationPDFsNT1071F33DCCE541342ECB664EB42AA5DE01CPDF
Categorization and Rationalization of Mutual Fund Schemes
The Securities and Exchange Board of India (SEBI) vide Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 had issued guidelines regarding categorization and rationalization of Mutual Fund Schemes
Upon consideration of the subsequent representation received from Association of Mutual Funds of India (AMFI) the SEBI has decided to partially modify the aforesaid circular as under
i In Point 8 of the aforesaid circular after Clause c an
additional Clause lsquodrsquo shall be added as follows
ldquod While preparing the single consolidated list of stocks average full market capitalization of the previous six month of the stocks shall be consideredrdquo
ii In respect of Serial Numbers 3 4 6 7 8 and 9 of
Section B of Annexure to the aforesaid circular it is
clarified that Macaulay duration shall be at portfolio
level and accordingly the column lsquoType of Scheme
(Uniform description of scheme)rsquo of the respective
scheme of the aforesaid Serial Numbers is modified
and shall be read as given below
ldquoAn open ended XYZ scheme investing in instruments such that the Macaulay duration of the portfolio is between A to B years (please refer to page no__) Please refer to the page number of the Offer Document on which the concept of Macaulayrsquos Duration has been explainedrdquo
iii With respect to the Medium Duration Fund and
Medium to Long Duration Fund (Serial Number 7 and
Serial Number 8 of Section B of the Annexure to the
Circular) the characteristics of the scheme shall remain
the same under normal circumstances as stated in the
circular dated October 6 2017 However the fund
manager in the interest of investors may reduce the
portfolio duration of the aforementioned schemes up
to one year in case he has a view on interest rate
movements in light of anticipated adverse Securities
and Exchange Board of India situation The Asset
Management Company (AMC) shall be required to
mention its asset allocation under such adverse
situation in its offer documents Thus the modified
scheme characteristics for the following categories of
schemes would now read as follows
Medium Duration Fund - Investment in Debt amp
Money Market instruments such that the
Macaulay duration of the portfolio is between
3 years ndash 4 years Portfolio Macaulay duration
under anticipated adverse situation is 1 year to
4 years
Medium to Long Duration Fund - Investment
in Debt amp Money Market instruments such
that the Macaulay duration of the portfolio is
between 4 years ndash 7 years Portfolio Macaulay
duration under anticipated adverse situation is
1 year to 7 years
Also whenever the portfolio duration is reduced below the specified floors of 3 years and 4 years in respect of Medium Duration Fund and Medium to Long Duration Fund respectively the Asset Management Company (AMC) shall be required to record the reasons for the same with adequate justification and maintain the same for inspection The written justifications shall be placed before the Trustees in the subsequent Trustee meeting Further the Trustees shall also review the portfolio and report the same in their Half Yearly Trustee Report to SEBI
iv Further Corporate Bond Funds (Serial Number 11 of
Section B of the Annexure to the Circular) would be
permitted to invest in AA+ and above rated
instruments Accordingly the Credit Risk Fund (Serial
Number 12 of Section B of the Annexure to the
Circular) would now be permitted to invest in AA and
below rated instruments (excluding AA+ rated
instruments)
v Serial Number 13 and 16 of Section B of the Annexure
to the Circular shall now read as follows
Category of
Schemes
Scheme Characteristics
Type of Schemes
Banking and PSU Fund
Minimum investment in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds ndash 80 of total assets
An open ended debt scheme predominantly investing in debt instruments of banks Public Sector Undertakings Public Financial Institutions and Municipal Bonds
Floater Fund
Minimum investment in floating rate
An open ended debt scheme predominantly
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
copyAvantis Softech LLP
instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
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URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
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URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
copyAvantis Softech LLP
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 6
copyAvantis Softech LLP
instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives) ndash 65 of total assets
investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps derivatives)
Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15 2017
All other conditions specified in SEBI circular dated October 06 2017 shall remain unchanged
Read Circular SEBIHOIMDDF3CIRP2017114 dated October 6 2017 at httpwwwsebigovinlegalcircularsoct-2017categorization-and-rationalization-of-mutual-fund-schemes_36199html
[Circular No SEBIHOIMDDF3CIRP2017126]
URL httpwwwsebigovinlegalcircularsdec-2017categorization-and-rationalization-of-mutual-fund-schemes_36804html
FSSAIrsquos Direction regarding Labelling Requirements for Seasonings
The Food Safety and Standards Authority of India (FSSAI) had vide Notification No F No StdsFampVPNotification(01)FSSAI-2016 dated August 2 2017 prescribed the standards for seasoning and other products
Representations were received from various stakeholders stating that the new regulations require specific food product category seasoning to be printed on the label in place of existing food product category seasoning and condiments (Proprietary food) and requested for permission to continue the use of current print packaging material for next six months
After due consideration the FSSAI has decided to permit the use of existing label under proprietary food for the said product up to January 31 2018 However Food Business Operators shall comply with standards prescribed for seasoning as specified in the notification
[File No REG-17KohinoorExtnFSSAI-2017]
URL httpwwwfssaigovindamjcr2db63f6e-3aaf-4319-a816-198071e7484bDirection_Labelling_Seasonings_06_12_2017pdf
Draft Notification on Food Safety and Standards (Import) First Amendment Regulations 2017
The Food Safety and Standards Authority of India (FSSAI) has notified draft regulations on Food Safety and Standards (Import) First Amendment Regulations 2017 inviting comments and suggestions within a period of 30 days from the date of publication of the notice
This notification proposes to amend the requirement relating to shelf life of imported product at the time of port clearance As per this notification Custom Authorities shall not clear any article of food unless it has a valid shelf life of not less than sixty per cent or three months before expiry whichever is less at the time of importrdquo
Further one more provision stating ldquothe importer shall submit certificate of sanitary export from authorized agencies in exporting countries for the categories of food as may be specified by the Food Authority from time to timerdquo has also been inserted This will help in the risk prioritization and in effectively dealing with high risk products intended for import The above regulation will be finalised after considering the comments suggestions from the stakeholders
Objections and suggestions if any may be addressed to the Chief Executive Officer Food Safety and Standards Authority of India Food and Drug Administration Bhawan Kotla Road New Delhi ndash 110002 or may be sent through e-mail at regulationfssaigovin
[F No REG1125Import amendmentFSSAI-2017]
URL httpwwwfssaigovinhomefss-legislationnotificationsdraft-notificationhtml
TRAI directs service providers to remove Analogue RIOs from websites
Telecom Regulatory Authority of India (TRAI) has observed that some broadcasters Reference Interconnect Offers (RIOS) for analogue platforms is getting displayed on their website Hence all the broadcasters are advised to ensure that no RIO for analogue platforms are either executed or displayed on their websites and no offers are made directly or indirectly for making their signals of TV channels available on analogue cable television networks Further all the Multi System Operators and cable operators are advised to ensure no unencrypted signals are carried on their cable television network
[Press Release No1022017]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
copyAvantis Softech LLP
URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
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URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
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EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 7
copyAvantis Softech LLP
URL httpwwwtraigovinsitesdefaultfilesPR_No102of2017pdf
TRAI releases recommendations on Network Testing before Commercial Launch of Services
The Telecom Regulatory Authority of India (TRAI) vide press release dated December 04 2017 has issued Recommendations on Network Testing before Commercial Launch of Services The Telecom Service Providers (TSPs) are required to install applicable systems for providing mobile services to the subscribers A TSP has to ensure that its service meets the Quality of Service (QoS) standards prescribed by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) Therefore it is important that all applicable systems are tested before commencement of commercial service
In this regard a consultation paper was released on May 01 2017 wherein various issues involved and the possible framework to bring clarity on the matter were discussed and the stakeholders were requested to provide their comments and counter-comments Based on the comments received and internal analysis TRAI has finalized its recommendations
The key recommendations are
a) A TSP should be allowed to enroll test subscribers in
testing phase to carry out the network testing before
commercial launch of its services
b) The number of test subscribers that can be enrolled
by a TSP in an LSA should be limited to 5 of its
installed network capacity for that LSA The service
provider will submit the detailed capacity
calculations of the network to DoT and TRAI at least
15 days before commencing enrolment of test
subscribers
c) There should be a limit of 90 days on the test phase
involving test subscribers However if the TSP fails
to conclude network testing due to valid reasons it
may make a representation to the Licensor seeking
additional time for network testing giving detailed
justification which may be decided by the Licensor
on case to case basis
d) If a TSP wants to enroll test subscribers it should
give prior intimation to DoT and TRAI at least 15 days
before commencing enrolment of test subscribers
e) All licensing provisions related to the security and
privacy such as ensuring adequate verification of
each and every customer before enrolling him as a
subscriber protection and privacy of communication
maintaining Call Detail Record (CDR)IP Detail
Record (IPDR) Confidentiality of Information Lawful
interception amp monitoring etc must be complied
with by the licensee
f) MNP facility should not be extended to network
under testing
g) If a TSP wants to enroll test subscribers for the
testing of its network it should transparently give
the following information to the test subscribers at
the time of their enrolment
i During test phase TSP is not mandated to
adhere to specified level of QoS Therefore
there may be sub-optimal level of network
performance
ii The scope of services during the test
period
iii MNP facility wont be available till the
services are commercially launched
iv There wont be any charge (fixed charge or
usage based charge) during the test phase
v Likely date of commercial launch
For any clarificationinformation Shri ST Abbas Advisor (Networks Spectrum and Licensing) may be contacted at Tel No +91-11-23210481 or e-mail advmntraigovin
[Press Release No1032017]
URL httpwwwtraigovinsitesdefaultfilesPR_No103of2017pdf
IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017
Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated December 05 2017 has issued IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines 2017 These guidelines shall be applicable to all unlisted Indian insurance companies and to the Private Equity Funds who have invested in the unlisted Indian insurance companies either as investor or as promoter
The guidelines set a ceiling of 10 in insurance
companies for investors As an investor a fund can
invest up to 10 of the paid up equity of an insurance
company
The Indian investors including PE funds jointly should
not hold more than 25 of paid-up equity share capital
of the company In case of the PE investment through
Special Purpose Vehicle (SPV) the minimum
shareholding of promoters and promoter group should
at all-time be maintained at 50 of the paid-up equity
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
copyAvantis Softech LLP
URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
copyAvantis Softech LLP
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 8
copyAvantis Softech LLP
capital In cases where the minimum holding is less
than 50 it should be maintained at those levels
In case of one-time investment the private equity fund
will have to make an upfront disclosure The regulator
said that after the lock-in period of 5 years an
undertaking of the divestment plan preferably through
an IPO should be submitted
[IRDAFampAGDLPEF263122017]
URL httpswwwirdaigovinADMINCMScmswhatsNew_Layoutaspxpage=PageNo3332ampflag=1
DGFT has revised amp updated the Foreign Trade Policy 2015-2020
The Director General of Foreign Trade (DGFT) vide notification dated December 05 2017 has revised amp updated the Foreign Trade Policy 2015-2020 which shall come into force with effect from December 05 2017
[Notification No 4120115-2020]
URL httpdgftgovinExim2000NOTNOT17Notification20No204120Mid20Term20Review20of20FTP20Englishpdf
DGFT issues list of Ineligible categories specifying exports categoriessectors which shall be ineligible for Duty Credit Scrip entitlement under MEIS in Appendix 3B of Foreign Trade Policy 2015-20
The Director General of Foreign Trade (DGFT) vide Public Notice dated December 05 2017 has amended Appendix 3B The rates of reward under MEIS for certain categories under Appendix 3B are revised
List of ineligible categories for MEIS benefits are as under-
EOUs EHTPs BTPs STPs who are availing direct tax
benefits exemption
Items which are restricted for export under Schedule-
2 of Export Policy in ITC (HS) unless specifically
notified in Appendix 38
Red sanders and beach sand
Diamond Gold Silver Platinum other precious metal
in any form including plain and studded jewellery and
other precious and semi-precious stones
Ores and concentrates of all types and in all
formations
Cereals of all types
Sugar of all types and all forms unless specifically
notified in Appendix 38
Crude petroleum oil and crude primary and base
products of all types and all formulations
Export of milk and milk products unless specifically
notified in Appendix 38
Export of Meat and Meat Products unless specifically
notified in Appendix 38
Products wherein precious metaldiamond are used or
articles which are studded with precious stones
Items which are prohibited for export under
Schedule-2 of Export Policy in TTC (HS)
The revised rates shall be applicable for exports made with effect from November 01 2017 till June 30 2018
[Public Notice No442015-2020]
URL httpdgftgovinExim2000PNPN17PN204420Engpdf
DGFT notifies New Appendices 5 E and 5 F under EPCG Scheme of FTP 2015-20
The Director General of Foreign Trade (DGFT) has notified new Appendices 5E which relates to Computation of Annual Average Export Obligation under EPCG Scheme and 5F which relates to List of Capital Goods not permitted permitted subject to specific conditions for import under EPCG Scheme of FTP 2015-20
[Public Notice No 472015-2020]
URL httpdgftgovinExim2000PNPN17PN20No4720englishpdf
DGFT amends Services Exports from India Scheme (SEIS) - Schedule under Appendix 3D
The Director General of Foreign Trade (DGFT) has amended the Appendix 3D The services export rendered between April 01 2017 to March 31 2018 comprising rates and conditions for rewards under the Services Exports from India Scheme (SEIS) has been extended upt0 March 31 2018with rates of reward as specified in the Annexure to this notification
[Public Notice No 452015-2020]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
copyAvantis Softech LLP
URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
copyAvantis Softech LLP
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 9
copyAvantis Softech LLP
URL httpdgftgovinExim2000PNPN17PN204520Engpdf
The Patents (Amendment) Rules 2017
Department of Industrial Policy and Promotion (DIPP) vide notification dated December 01 2017 has further amended the Patents Rules 2003 Vide this amendment in Rule 2(fb) the definition of Startup is substituted as
ldquoStartuprdquo means
a an entity in India recognised as a startup by the
competent authority under Startup India initiative
b In case of a foreign entity an entity fulfilling the
criteria for turnover and period of incorporation
registration as per Startup India Initiative and
submitting declaration to that effect
[GSR 1472(E)]
URL httpwwwegazettenicinWriteReadData2017180577pdf
Central Government issues clarification on Provisions of the Financial Resolution and Deposit Insurance Bill 2017
The Financial Resolution and Deposit Insurance Bill 2017 (FRDI Bill) was introduced in the Lok Sabha on August 10 2017 is presently under the consideration of the Joint Committee of the Parliament The FRDI Bill is far more depositor friendly than many other jurisdictions which provide for statutory bail-in where consent of creditors depositors is not required for bail-in
The FRDI Bill does not propose in any way to limit the scope of powers for the Government to extend financing and resolution support to banks including Public Sector Banks The Governmentrsquos implicit guarantee for Public Sector Banks remains unaffected
Indian Banks have adequate capital and are also under prudent regulation and supervision to ensure safety and soundness as well as systemic stability The existing laws ensure the integrity security and safety of the banking system In India all possible steps and policy measures are taken to prevent the failure of banks and protection of interests of depositors (eg issue of directions prompt corrective action measures capital adequacy and prudential norms) The FRDI Bill will strengthen the system by adding a comprehensive resolution regime that will help ensure that in the rare event of failure of a financial service provider there is a system of quick orderly and efficient resolution in favour of depositors
[Release ID 174162]
URL httppibnicinnewsiteereleaseaspxrelid=174162
Human Resource
EPFO specifies dates for online filing of monthly returns by the exempted establishments and timeline for the monthly returns
Employees Provident Fund Organisation (EPFO) vide circular dated December 01 2017 has specified the due date on which the exempted establishments are required to file monthly returns The last date for filing of online returns shall be treated as 25th of the month following that to which it relates It is also clarified that the phrase 25th of the month following that to which it relates means that the online returns for the wage month should be filed by 25th of the month following the wage month
Details for online filing of monthly and annual return has been provided on the website of the EPFO at the following URL wwwepfindiagovin wwwepfindiacom
In addition to online submission of returns exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided
[No C-ExEx-Return201419536]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Ex_OnlineReturn_ExEstt_19536pdf
EPFO directs ExemptedRelaxed Establishments to complete Compliance Audit before December 31 2017
Employees Provident Fund Organisation (EPFO) vide circular dated December 05 2017 has directed ExemptedRelaxed Establishments to complete Compliance Audit by December 31 2017 positively and report to Head Office by e-mail in the format annexed to the Said circular by January 08 2018
Failure may attract strict action subsequent to conduct of compliance audit should be taken against the defaulting establishment as per the guidelines issued by the Head office under the law including cancellation of exemption or withdrawal of relaxation as the case may be
[No-C-ExMiscComp Audit201519761]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018Exem_ComplianceAudit_ExEstt_19761pdf
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
copyAvantis Softech LLP
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 10
copyAvantis Softech LLP
EPFO introduces One Employee One EPF Account Facility to consolidate multiple PF accounts of an employee facility
Employees Provident Fund Organisation (EPFO) has introduced a facility to the members to merge their earlier PF accounts to the current PF account so that the EPFO may help them in the integration of all these PF accounts in the current UAN activated PF account
Features of the said facility are as follows
1) A member has to provide his current activated UAN
along with the current member ID amp Mobile number
registered at UAN Member portal
2) On validating these credentials EPFO will facilitate the
member to register hisher EPF accounts Members can
enter details of as many as ten previous PF account
numbers
3) The earlier PF member IDs provided by members will
be forwarded to EPFO field office to which earlier
member ID pertains
EPFO is currently sending SMS to its members whose requests are pending and will also ensure that multiple accounts are consolidated as early as possible The said functionality has been provided in the EPFO website at Our Services gtgt For Employees gtgt One Employee - One EPF Account It can also be accessed using the URLhttp10319445139UANDEDUP
[NoR-IOEOA2016385]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018RI_OEOA_385pdf
EPFO directs members to update Life Certificate for the year 2018
Employees Provident Fund Organisation (EPFO) vide circular dated December 07 2017has directed all the EPF members to update the life certificates received through digitalphysical (both 95 and 71 scheme) for the year 2018 The updation of the fresh life certificates shall be done before December month and these life certificates will be valid up to next year (that is 12-14months) and it is also informed that those pensioners who have not submitted their life certificates since May 2017 but submit now would get their arrears and their life certificates also will be valid up to December 2018
The above changes would be applicable in the application software from November 15 2017 to December 31 2017 only Any Digital Life Certificate (DLC) submitted on or after January 01 2018 shall have validity up to December 31 2018 The DLC
files for the year 2018 will be pushed to all PDBs through auto mode at the earliest All field offices are requested to update the manualdigital life certificates in the system
[NoNDC14(1)2017Pension 2779]
URL httpwwwepfindiacomsite_docsPDFsCircularsY2017-2018NDC_Updation_LifeCert_2779pdf
Corporate
MCA extends Due Date of Filing of Form CRA-4 amp Relaxation of additional Fees
The Ministry of Corporate Affairs (MCA) has extended the due date for filing of Form CRA-4 that is Form for filing Cost Audit Report with the Central Government up to December 31 2017 without additional fees for the financial years starting on or after April 01 2017
[General Circular No 152017 F No5228CAB2O17]
URL httpwwwmcagovinMinistrypdfGeneralCircular15_05122017pdf
MCA amends Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015
The Ministry of Corporate Affairs (MCA) has made second amendment in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules 2015 The amendment is related to the substitution of Annexure III under Rule 4 of these rules The substituted Annexure III is provided in this notification
[GSR 1480(E) F No 1192013-CL-V]
URL httpwwwegazettenicxinWriteReadData2017180625pdf
Bulk upload facility for updation of AadhaarUID for existing clients and Revised batch upload file format for UCC by BSE for Stock Brokers
The Bombay Stock Exchange (BSE) has provided the bulk upload facility for stock brokers for updation of Aadhaar for existing Individual and non-individual clients The BSE notice has also provided the Bulk Upload File Format
[Notice No 20171205-24]
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 11
copyAvantis Softech LLP
URL httpwwwbseindiacommarketsMarketInfoDispNewNoticesCircularsaspxpage=20171205-24
MCA amends Companies (Cost Records and Audit) Rules 2014
The Ministry of Corporate Affairs (MCA) has amended the companies (cost records and audit) Rules 2014 through the Companies (cost records and audit) Amendment Rules 2017
Insertion of new clause after Rule 2(f) of this rule as under
(fa) Indian Accounting Standards means Indian Accounting Standards as referred to in Companies (Indian Accounting Standards) Rules 2015
This amendment has also substituted the Form CRA-1 and Form CRA-3 from the Annexure part of the rules which are provided in the notification Form CRA-1 is for ldquoParticulars relating to the items of Costs to be included in the Books of Accountsrdquo and Form CRA-1 is related to the Cost Audit Report
[F No 1402013-CL-VI dated December 07 2017]
URL httpwwwmcagovinMinistrypdfCompaniesCostrecordsAuditRule_08122017pdf
Bihar
Bihar Private Security Agencies (Amendment) Rules 2017
The Government of Bihar has amended the Bihar Private Security Agencies Rules 2011 Vide this amendment-
In rule 3 new sub-rule (2) is inserted which reads as-
The Controlling Authority shall be responsible for
creating a web management system where as far as
possible relevant information such as Act Rules
procedures circulars and notices may be made
available for general public The State Government
shall formulate and notify rules regarding the online
processing of licence and registration of applications
through official website of Home Department of the
Government of Bihar
In rule 10 sub-rule (3) is substituted which reads as-
Applications shall be submitted to the Controlling
Authority either personally or by registered post only
after pre-registering it through the web site The
applications shall accompany an affidavit by the
applicant in prescribed Form-XI
In rule 11 sub-rule (1) the clause ldquoThe licence will be
valid for 3 yearsrdquo shall be substituted by clause ldquoValidity
period of the licence will be of 5 years unless cancelled
under the Act and Rulesrdquo
In Rule 13-
i Sub rule (1) shall be substituted which reads
as- (1) Every Private Agency shall apply to the
Controlling Authority for the renewal of
Licence in prescribed Form-V not less than 45
days before the date of expiry of the validity of
licencerdquo
ii New sub rule (3) shall be inserted which reads
as- The applicant shall submit an affidavit
regarding the correctness of all the
information furnished in the application and to
abide by the conditions for the licence in
Form-XI along with the application
iii In Rule 14 new sub rule (3) shall be inserted
which reads as- The Controlling Authority shall
renew the license after being satisfied with
the application compliance of the conditions
of renewal by the applicant and the affidavit
mentioned in rule 13(3)rdquo
[F No14-312016-10148]
URL httpegazettebihnicinGazetteaspx
Chhattisgarh
Chhattisgarh Government bans burning of firecrackers in specific Municipal Areas
The State Government of Chhattisgarh on consultation with the Chhattisgarh Environment Conservation Board has decided that the burning of fire crackers will be banned in the Municipal Areas of areas like Raipur Bilaspur Bhilai Durg Raigarh and Korba which increases air pollution and its effects are more drastic specifically during winter season from 1st December to 31st January of every year
[No F 1-2912017 32]
URL httpcgnicinegazetteViewaspx
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter
AVANTIS WEEKLY NEWSLETTER | ISSUE 2 OF DECEMBER 2017 12
copyAvantis Softech LLP
Jharkhand
Documents to be carried by the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand while the goods are in movement or in transit storage
The State Government of Jharkhand vide notification dated December 04 2017 has specified the following documents that the person in charge of the conveyance carrying any consignment of goods in the State of Jharkhand shall carry while the goods are in movement or in transit storage-
For transportation of Goods on Road-
i Tax invoice or Bill of supply or Delivery Challan
ii Lorry Receipt or Goods Forwarding Notes
For transportation of Goods by Railway-
i Tax Invoice or Bill of supply or Delivery Challan
ii Railway Receipt or Parcel Bills
For transportation of Goods by Air-
i Tax Invoice or Bill of supply or Delivery Challan
ii Air Consignment Note or documents of like
nature
[SO142]
URL httpjhr2nicinegazetteGazetteaspx
Avantis
Weekly
Newsletter
December 8 2017
DISCLAIMER
All the information and commentary provided in this newsletter is for illustrative purposes only and should not be regarded or relied upon as legal advice While the content provided is accurate as at the date of first publication laws and regulations change frequently Any reliance on the information contained in this newsletter is solely at the users own risk Avantis Softech LLP expressly disclaims all responsibility for any loss injury liability or damage of any kind resulting from and arising out of or any way related to the content of this newsletter