Welcome to SDMCA Chartered Accountants

who we are

S. D. Mehta and Co., Chartered Accountants is a firm established in 1981 located in Ahmedabad, India.

 

The firm is having a vast and enriched experience over 37 years, and is committed to give high level of client service and satisfaction.

 

The firm is providing super specialist services in the field of Income-tax and GST alongwith Transfer pricing, International taxation, personal taxation and Statutory as well as Internal auditing services to domestic as well as foreign clients. The firm is a holder of Peer Review certificate.

 

 

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Our Latest Blog

Highlights of Economic Reforms announced by our FM

 

As all are aware the Indian Economy is facing a slow-down. There is a fear of unemployment on a large scale in private sector. There was a pressure on government to come with relief measures to save the economy and depressed capital market.  Finance Minister Mrs. Sitharaman announced certain measures to revive economy and capital market. She has also assured further measures in a short-while to stimulate economy.  The following is the summary of measures announced by the Finance Minister on 23rd August 2019:

  1. Income Tax:
  • Enhanced surcharge levied on short term and long term capital gain as announced in recent budget has been withdrawn. The withdrawal of surcharge applies to capital gain arising from equity shares/unit referred to in Section 111A and 112A.
  • To mitigate with complaints of harassment of taxpayer on account of issue of notices summons order and other correspondence by Income Tax authority, it has now been announced that on or after 1st October 2019 all notices summons orders etc. issued by the Income tax department shall only be issued through a centralized computer system. All such documents shall contain a computer generated Unique Document Identification Number. Any communication issued without such identification number shall be invalid in Law. Old notices issued before 1st October shall either been disposed of or shall be uploaded again through centralized computer system. Also, all notices issued after 1st October 2019 shall be disposed of within 3 months from the date of reply by the assesse.
  • Angel Tax provisions under Section 56(2)(viib) of the Income Tax Act shall not be applicable to all startup units registered with DPIIT. For quick disposal of Income Tax issues faced by startup unit a specific cell shall be started under a member of CBDT.
  • An additional depreciation of 15 % shall be allowed on all vehicles acquired during the period from now to 31st March 2020 (a total of 30% depreciation shall be allowed on such vehicles).

 

  1. Banking:

     In order to infuse funds in the banking system, following measures have been announced:

  • Government shall immediately release Rs. 70,000 crores to public sector banks by Means of Capital. Further additional liquidity to the tune of Rs. 5,00,000 crores shall also be provided to public sector bank over a period of time. This measure is going to benefit immensely to all small borrowers, small and medium enterprises and corporate houses. The idea of infusing fund appears to be for making easy credit facility available to all segment of economy.
  • Bank shall directly link repo rate to interest rate. This means any such rate cuts shall result in reduced EMI for all types of loan including vehicle loan, housing loan etc. This measure would also result in availability of working capital at a cheaper rate of interest.
  • One time settlement of loans and credit facility shall be easier. The OTS shall depend on certain specific criteria to be complied with by borrowers. This policy change is going to benefit MSE and small borrowers. Also the system of OTS would now be more transparent.
  • The banking customer would now be able to track the status of their all kinds of loan applications online. The customers would also be able to track renewal enhancement of limits, etc.
  • In order to protect honest decision making by banking officials in the commercial matters, it has been specified that internal advisory committee shall classify cases as vigilant and non-vigilant.
  • It is made mandatory by public sector bank to return loan documents belonging to borrowers within a period of 15 days of closure of loan.

 

  1. Non-Banking Finance Companies (NBFC):

    A number of welcome measures are announced to infuse liquidity in NBFC and HFC (Housing Finance Companies)

  • National Housing Board (NHB) would release additional liquidity to the tune of Rs. 20,000/- crores to HFC. This should enable more credit for purchase of houses.
  • From now onwards, prepayment notices issued to NBFC are to be monitored by banks.
  • To prevent repeated procedure, NBFC are now authorized to issue Aadhar authenticated Bank KYC. This would enable easy approach to consumer by NBFC.
  • The public sector banks shall now make fast-track collaboration with NBFCs for loans to small traders, self-employed people and MSMEs. All the above measure would ensure more liquidity support for purchase of consumer goods, vehicle, houses etc. by small and retail borrowers.

 

  1. GST:

    Following provisions are announced in GST:

  • All pending GST refund to MSMEs shall be paid within 30 days. All GST refund arising in future shall be paid within 60 days from the date of application.
  • Bill discounting facility by PSB shall be made easily available for MSMEs which are registered in GSTN system.
  • From now onwards, all GST return filing procedures shall be simplified.

 

  1. Other Measures:
  • In respect of listed companies NBFC and HFC, the requirement of creation of Debenture Redemption Reserve fund has been removed.
  • In respect of companies focus shall be on monetary penalties. Not fulfilling CSR shall be a civil offence and not a criminal one.
  • For credit enhancement to infrastructure sector, Government is proposing to establish a specific organization.
  • To enable Indian Companies to have easy and increased access to foreign funds through ADR / GDR, The Depository Receipt Scheme 2014 shall be soon made operational By SEBI.
  • Aadhar based KYC shall be permitted for opening Demat account and making investment in mutual fund. This step would benefit retail and small investor to have easy market access.
  • KYC procedure is simplified for FPIs.
  • It is proposed to permit trading of USD- INR Derivatives in GIFT, ISFC.
  • The higher one time registration fee on vehicle is deferred till the month of June 2020.
  • The ban on purchase by Government of new vehicles for replacing old vehicles shall be lifted shortly. Both electric and internal combustion vehicle shall continue to be registered.
  • From now onwards, delayed payment from Government department shall be closely monitored by department of expenditure.
  • Bond market in India shall be deepened.

 

The forgoing was a summary of certain important measures taken by Government to face the problem of economic slow-down. The FM has further promised stimulus measures to be announced shortly in this regard. The measures if implemented properly shall definitely put the Indian economy in upper gear.

 

Shaishav Mehta (FCA)

(M) 9727595108

S. D. Mehta & Co.

Chartered Accountants

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“ACTIVE Form – IMPORTANT FOR ALL COMPANIES”

 

The Ministry of Corporate Affairs has issued a notification which comes into force w.e.f. 25th February, 2019. It relates to filing of ACTIVE FORM [ INC-22A] The Salient features of this form are as follows:-

 

  1. Active form (Active Company tagging identities and verification) has to be filed in Form No. INC - 22A.

 

  1. The said form is to be filed on or before 25th April, 2019.

 

  1. The said form is to be filed by all the companies incorporated on or before 31st December, 2017. Hence, it is applicable to all the companies whether its a Private Ltd. Company or Public Ltd. Company.

 

  1. The said Active form basically contains information regarding registered office of the Company, No. of Directors, details of Statutory Auditors, details of Company Secretary, details of Managing Director and/or CEO and/or Whole time director.

 

  1. With the above form, two photos are to be attached, out of which one photo shall show the external office building of the registered office of the company with presence of the Director/ Key Managerial Person (whose DSC is affixed in the form) with company’s name and address prominently appearing in the photograph.

         The other photograph showing inside office, also showing therein the Director / Key Managerial Person who has signed the form digitally.

 

  1. At present fees for Active Form is NIL i.e. no fees are to be paid for filing Active form.

 

  1. However, if Active form is not filed on or before 25th April, 2019, then the said form can be filed after 25th April, 2019 only on payment of Late filing fees of 10,000/-.
  2. Please also note that unless Active form is filed, Company shall not be able to file forms like

         a. SH-07 (Change in Authorized Capital);

         b. PAS-03 (Change in Paid-up Capital);

         c. DIR-12 (Changes in Director except cessation);

         d. INC-22 (Change in Registered Office);

         e. INC-28 (Amalgamation, de-merger).

 

  1. Companies which are under the process of striking off or under liquidation or dissolved or amalgamated are not required to file Active form.

 

  1. Furnishing of false or inaccurate information or suppression of material information shall attract penalty and proceedings u/s 447, 448 and 449 of the Companies Act, 2013.

 

  1. In view of the stringent requirement to file Active form, all concerned persons are advised to file the form on or before 25th April.

 

-Dharit Mehta, FCA

(E) dharit@sdmca.in

 

 

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THE BANNING OF UNREGULATED DEPOSIT SCHEMES ORDINANCE, 2019.

 

The Rajya sabha not being in progress, the president has pronounced an ordinance regarding unregulated deposit scheme on 21 February, 2019. The ordinance comes into force with immediate effect.

 

In our opinion, the foregoing provisions would only be applicable to transactions taking place on or after 21st February, 2019.

  1. Purpose:
    • The purpose to pronounce this ordinance is to protect the interest of depositors and all other matters connected with it and incidental thereto.
  1. Applicability:
    • The ordinance is applicable to all persons and it includes -
      1. an Individual;
      2. a Hindu Undivided Family;
      3. a company;
      4. a trust;
      5. a partnership firm;
      6. a limited liability partnership;
      7. an association of persons;
      8. a co-operative society;
      9. every artificial juridical person;
    • As such the government has covered practically all persons within the purview of this ordinance. Hence, all persons as above shall be governed by this ordinance with immediate effect.
    • Before the pronouncement of the ordinance, deposits taken by individual, HUF, Partnership firms, Trust, LLP, Co-operative society etc were not subject to any kind of regulation. All the above entities are now regulated for acceptance and repayment of deposits.
  1. What is Deposit under this Act ? :
    • “Deposit” means an amount of money received by way of an advance or loan or in any other form, by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or in the form of specified service, with or without any benefit in the form of interest, bonus, profit or any other form.
    • However, following categories of transaction shall not be regarded as deposit-
      1. amounts received as loan from scheduled banks including co-operative banks;
      2. amounts received as loan from public finance institutions and Non-banking finance companies;
      3. amounts received from appropriate government;
      4. amounts received from foreign governments, foreign/international Banks and multilateral financial institutions;
      5. capital contribution by partners to the partnership firm/LLP;
      6. amount of loan received by individual/firm from relative of individual or partners;
      7. amount received as credit by a buyer from a seller on the sale of any property;
      8. amount received by an asset re-construction Company;
      9. deposit received by political party;
      10. amount received by member of self-help group;
      11. Deposits received from relatives (refer para 4 below);
      12. amount received in course of or for the purpose of business. This includes following: 

                            A. Advance payment received for supply of goods and service;

                            B. Amount received for consideration towards sale of immovable property;

                            C. Security or dealership deposits;

                            D. Advance received for long term project for supply of goods and services;

 

  1. Who is relative? :
    • The ordinance has specifically excluded individuals and partnership firms from Unregulated Deposit Scheme in respect of deposit received from relative of individual and partners.
    • The term relative has the same meaning as assigned to it in the companies Act, 2013. As such, relative includes following persons:-
      1. Husband and wife
      2. Members of HUF
      3. Father including step father
      4. Mother including step mother
      5. Son including step son
      6. Son’s wife
      7. Daughter
      8. Daughter’s husband
      9. Brother including step brother
      10. Sister including step sister.

 Accordingly, deposits or loans taken from above relative by individual or partners (in the case of partnership firms) shall be exempt from unregulated deposit scheme ordinance. Therefore, individual and partnership firm may accept deposit without any limit from above relatives.

  1. Deposit taker:
    • Any person receiving or soliciting deposit is deposit taker.
  1. Provision in Brief:
    • Section-3 of the ordinance prescribes that no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.
    • All unregulated deposit schemes shall be banned.
    • No person shall commit any fraudulent default on repayment of deposit on maturity.
    • No person shall knowingly solicit or induce other person to invest in the Unregulated Deposit Scheme. This means that no person shall make any statement of promise or forecast, which is false or misleading or deliberately conceal any material facts to solicit deposits.
    • The ordinance specifically states that a price or money circulation banned under Prize Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an Unregulated Deposit Scheme.
  1. Offences and punishments:
    • The ordinance has prescribed following punishments for various offences under banning of unregulated scheme ordinance,2019.
      1. For soliciting deposit in contravention of section 3 –
        • Imprisonment of not less than 1 year but which may extend to 5 years and fine of not less than Rs. 2 lakhs which may extend to Rs. 10 lakhs.
      2. Accepting deposits in contravention of section 3 –
        • Imprisonment of not less than 2 years but which may extend to 7 years and fine of not less than Rs. 3 lakhs which may extend to Rs. 10 lakhs.
      3. Fraudulent defaults in repayment of deposits –
        • -Imprisonment of not less than 3 years but which may extend to 10 years and fine which shall not be less than Rs. 5 lakhs but may extend to twice the amount of aggregate funds collected from subscribers.
      4. Various other punishments have further been prescribed for various other offences under the ordinance.
  1. Investigation under this Act:
    • The ordinance has also prescribed the power of investigation, search and seizure by designated prescribed authorities under the ordinance.

Disclaimner

  • The above presentation is only a simplified summary of provision of the Unregulated Deposit Scheme Ordinance. For further clarification clients are advised to contact our office.

 

- Shaishav D. Mehta (FCA)

(M) 8780056812

(E) shaishav@sdmca.in

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