UPDATES

MCA

MCA has issued clarification regarding issue of rupee bonds by Indian Companies exclusively to persons resident outside India in accordance with applicable secetoral regulatory provisions. Pursuant to references received from stakeholders in this regard, MCA in consultation with RBI has clarified that unless otherwise provided in the circular/ directions/ regulations issued by RBI, provisions of Chapter lll of the Act and Rule 18 of the Companies (Share Capital and Debenture) Rules. 2014 could not apply to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions. Necessary changes in Companies (Share Capital and Debenture) Rules, 2014 in this regard are also being made. The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by RBI as part of ECB Policy framework.

 

GST

The Rajya Sabha on Wednesday passed the 122^nd Constitutional Amendment Bill, thereby empowering the Centre and the state legislatures to have concurrent powers to make laws on GST. The GST will have two components keeping in mind the federal structure of India: the Central GST (CGST) and the State GST (SGST). The amendment would eliminate multiple taxes on firms and help ease of doing business. However, the new tax regime would have different impact on different sectors. Overall, it is expected to have a positive impact on the economic development of India. The Government plans to roll out GST from 1^st April, 2017