MCA – ‘Small Companies’ Redefined – Cap Raised 50L to 2 CR.

As per New Guidelines by MCA, Few Changes notified for Small Companies are –

Small Companies need to organize  2 board meetings in a calendar year, i.e. one board meeting in each half of the calendar year.

In the case of a small company, the annual return can be signed by the secretary of the company alone or by a single director if there is no Company Secretary (CS).

A small company is excluded from the requirements of the change of auditor by rotation U/s 139(2).

In the audit report, a small company is not required to report on internal financial controls and the company’s operational performance.

Companies Act prescribes lesser penalties in the case of a Small Company.

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MCA announces a New Scheme for Condonation of Delay for Companies

  • MCA announces a new scheme for condonation of delay for companies restored on the Registrar of Companies between the 01.12.20 – 31.12.20.
  • The Scheme offers to condone delay in filing forms with the Registrar, and spares payment of extra fees.
  • This Scheme will be in operation from 01.02.21 and will be available for filing of any overdue e-forms by such companies till 31.03.21.
ministry of corporate affairs
This scheme applicable for the filing of all e-forms, except the following forms:
  • E-form SH-7 (Where any rise in approved share capital is involved)
  • CHG-1, CHG-4, CHG-8 and CHG-9 (Charge Related Documents).
Indirect Taxation

In order to maintain an uninterrupted and consistent supply of vital goods and services, the Central Board of Indirect Taxes and Customs expands the deferred duty payment facility to public undertakings.

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10 Initiatives – Digital Collaboration – W.E.F 1st Jan’21

1. Cheque payments:-

In order to keep track of bank fraud, the Reserve Bank of India has agreed to implement a “positive pay system” for cheque payments. In this system, there may be a requirement of re-confirmation of main information for payments in surplus of Rs 50,000. This rule of a positive pay system will come into existence on 1 January 2021. A positive pay system service can be used by the account holders of their choice. Banks may consider making it mandatory to verify with sums of Rs 5 lakh and higher.

2. Contactless card transactions limit:-

From 1 January, the RBI announced that it would raise the limits from Rs 2,000 to Rs 5,000 for contactless card transactions and e-mandates for regularly occurring transactions through cards and UPI transactions. RBI’s change is to improve digital payment. This will maintain a safe and secure manner, especially during the Covid-19 pandemic.

online transaction
3. Car prices:-

Maruti Suzuki India and Mahindra and Mahindra will hike vehicle prices from 1 January to deal with the effects of rising input costs.

4 . WhatsApp to stop Working on Select Phones:- 

Popular Messaging Service WhatsApp will pull support from those platforms from January 1. WhatsApp page has mentioned the operating systems that it supports and suggests using the following devices: Android running OS 4.0.3 and newer; iPhone running iOS 9 and newer; and phones running KaiOS 2.5.1 newer, including JioPhone and JioPhone 2.

5. Landline to Mobile phone calls:-

You will have to add the prefix ‘0’ to make calls from landlines to mobile phones in the country. The Telecom Department ordered telcos to operate on the necessary infrastructure by 1 January in order to introduce the new system effectively. This move would build enough numbering space for telecom services.

6. FASTag for all four-wheelers:-  

The Union Ministry of Road and Highway Transport made FASTag mandatory for all four-wheel vehicles as of 1 January 2021, through a notification. FASTag will be mandatory for four-wheelers of class M and N sold before 1 December 2017. The Central Motor Vehicles Rules, 1989, were also amended to the same. The notice to this effect was released on 6 November 2020.

7. UPI Payment:-

From 1 January 2021, users will have to pay extra fees when making transactions with Amazon Pay, Google Pay, and Phone Pay. National Payments Corporation of India (NPCI) will impose an additional charge on UPI Payment Service (UPI Payment) with a third-party app starting on 1 January. NPCI applied a 30 percent limit on third-party applications starting in from new year. Paytm is also going to have to pay this charge.

google pay
8. Google Pay web app:-

Google Pay is all set to destroy a user to user payment service on its web app and introduce an automatic money transfer fee from January. Till now, customers have been able to handle payments and transfer money through the smartphone app or According to Google’s latest notification, the web app site will no longer function as of January 2021.

9. LPG prices:-

On the first day of each month, oil marketing companies revise LPG rates on the basis of crude prices in global markets.

10. GST- Registered small business:-

Businesses with a turnover of up to Rs 5 crores would require to file only 4 GST sales returns, or GSTR-3B, instead of 12 (now) from January, as per PTI. This move would have an effect on 94 lakh taxpayers or around 92% of the overall GST tax base. From now onwards small taxpayers would be filing only eight returns (four GSTR-3B and four GSTR-1 returns) yearly.

Wef 1.1.21, avail only ITC in GSTR-2B plus 5 percent instead of 10 percent earlier. Amendment of Rule 36(4) vide Notice 94/2020CT of 22.12.20.

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