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Standard Unit Quantity Codes (UQCs) for Import and Export Authorization

Standard Unit Quantity Codes (UQCs) for Import and Export Authorization

The Directorate General of Foreign Trade (DGFT) has specified Standard Unit Quantity Codes (UQCs) for Import and Export Authorization vide Trade Notice No. 26/2020-2021 dated 14.09.2020. It has been noted that the use of Non- standard and Non-convertible UQCs lead to poor quality of data capture and related consequences. Hence, DGFT had undertaken an exercise towards standardization of Unit Quantity Codes (UQCs) for purposes of export/import declarations filed on EDI.

As per this notification, DGFT announced that new export/import authorization will be issued only based on standard Unit Quantity Codes (UQCs). Exporter/importers are advised to use the Standard Unit Quantity Codes (UQCs) while applying for Import/Export Authorization. The present article briefly explains Standard Unit Quantity Codes (UQCs) for Import and Export Authorization.

Important Announcement for Exporter & Importer

The government has issued the notice with the objective of standardization in the data collection for clean data reporting and analysis.

Conditions for applying New Export/Import Authorizations

As per the notification, new export/import authorization will be issued based on standard Unit Quantity Codes (UQCs). Regional Authorities (RAs) will not issue authorization with Non-standard units such as BoU, packs, Boxes cartons and bottles.

For issuing the authorization based on the standard UQC, necessary changes are being carried out in the DGFT Electronic Data Interchange (EDI) system.

Conditions for Using the existing Export/Import Authorizations

To ensure shipment meanwhile, the Customs department will allow the authorizations which already issued and carrying any non-standard units such as BoU, packs, Boxes cartons and bottles etc, till 30.10.2020 by accepting exporter’s shipping bills in the UQCs provided in ICEGATE.

Exports/imports without standard UQCs will not be permitted after 1.11.2020.

Convert Import & export quantities to Standard Quantity Units

For shipping the goods after November 2020, the authorization holders are requested to approach concerned Regional Authority (RA) and get the non- standard units indicated in the authorizations in the import and export quantities, converted to standard quantity units.

In case RAs face any difficulty in carrying out these amendments, they will get in touch with the concerned Norms Committee (NC).

Standard Unit Quantity Codes  in Bills of Entry and Shipping Bills

Usage of harmonized standard Unit Quantity Codes (UQC)  at the time of filing of Shipping Bills and Bills of Entry in ICEGATE is being mandated through various public notices issued by customs formations during August 2020. Declaration of quantities in Statistical UQCs (SQCs) as prescribed under the Tariff Act have been made mandatory in both imports (since Feb 2019) and exports (since Feb 2020) for every item in addition to the quantities declared in the commercial units as per the invoice. The SQC declarations are being captured in the Single Window table of the Bills of Entry and Shipping Bills.

Standard Unit Quantity Codes

To further improve the data quality, even among the commercial UQCs declared for the items as per the invoice, henceforth only codes as mentioned in the below table will be permitted in Export/Import Authorisation.

Sl.No

UQC

Description

Sl.No UQC

Description

1 CBM Cubic Meter 19 MGS Milligrams
2 CCM Cubic Centimeter 20 MTR Meter
3 CMS Centimetre 21 MTS Metric ton
4 CTM Carat 22 NOS Numbers
5 DOZ Dozen 23 PCS Pieces
6 FTS Feet 24 PRS Pairs
7 GIF GRMFissile Isotope 25 QTL Quintal
8 GMS Grams 26 SET Sets
9 GRS Gross 27 SQF Square Feet
10 GYD Gross Yard 28 SQI Square Inches
11 HKS Hanks 29 SQM Square Meter
12 INC Inches 30 SQ Y Square Yards
13 KGA Kilogram Activity 31 TBS Tablets
14 KGS Kilograms 32 THD Thousands
15 KLR Kilolitre 33 TKW Thousand Kilo Watt Hour
16 KWH Kilo water hour 34 UNT Units
17 LBS Pounds 35 VLS Vials
18 LTR Litres 36 YDS Yards
  • The usage of nonconvertible/inappropriate Unit Quantity Codes (UQCs) leads to poor quality of data captures and related implications.
  • The usage of  UQCs like BGS, BTL, BOX, CTN, GGR, HPT, KPC, ODD and DRM by the importers and exporters are prohibited for import/export authorization.

The notification about the Standard Unit Quantity Codes (UQCs) for Import and Export Authorization is as follows:

Trade Notice 27

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Kumbhar Sashaktikaran Program – Gramodyog Vikas Yojana (GVY)

Kumbhar Sashaktikaran Program – Gramodyog Vikas Yojana (GVY)

Ministry of Micro Small and Medium Enterprises (MSME) issued the Operational Guidelines of Kumbhar Sashaktikaran Program (Pottery’ activities) vide a notification dated 09/16/2020. This pilot project is an initiative of the Khadi and Village Industries Commission (KVIC) for the empowerment of the potter’s community in the remotest of locations in the country. Under these pilot programs, beneficiaries will be provided skill training and modern pottery machines. The present article highlights the operational guidelines of The Pilot Projects of Pottery Activity Under mineral Based Industry (MBI) Vertical Of Gramodyog Vikas Yojana (GVY)

The objective of the Kumbhar Sashaktikaran Program

The objectives of the Kumbhar Sashaktikaran Programme are as follows-

  • To enhance the income of pottery artisans by providing skill development training and modern automated equipment
  • To provide skill-development training to Self Help Groups of pottery-artisans on focused products like garden pots, cooking-wears, khullad, water bottles, decorator products, and mural
  • To establish region-wise pilot projects of focused products
  • To enhance the production of pottery and to reduce the cost of production
  • To encourage the successful potter to set up his unit under the PMEGP scheme
  • To develop necessary market linkages by tying up with exports and large buying houses
  • To produce innovative new products and raw materials to create international scale pottery
  • Demonstrate international techniques/methods to artisans and train them accordingly.
  • To create international design capability in the pottery by linking them with appropriate design houses
  • To develop new small electric potter wheels.
  • To take the pottery industry on the journey from Pottery to Crockery and set up 10 clusters for the same.

Pottery Activity Under mineral Based Industry (MBI)

In India, KVIC will implement innovative pottery products through SHGs. In each state individual SHGs will be focused on the production of specialized pottery items:

Garden-pot, cooking ware, chappati Tawa, water bottle, utility and fancy products, khullad (use and throw products), crockery, dinner set, etc.

For enhancing the income of pottery artisan KVIC introduced three different types of pottery production and series of new innovative home scale technologies developed by the Centre of Excellence:

  • Wheel Pottery
  • Press Pottery
  • Jiggering

Target Group of Kumbhar Sashaktikaran Programme

The applicant who wants to take up pottery activity as self-employment under the Kumbhar Sashaktikaran Programme:

  • Traditional and others (non-traditional) pottery artisans
  • Rural Unemployed youth
  • Migrant Labour

Eligibility Criteria for Khadi Agarbatti Pilot Project

  • The age limit of the applicant should be between 18 years to 55 years
  • Self Help Group (SHG) is eligible for the scheme
  • The applicant should have Aadhaar Card, in case of non-availability of Aadhaar Card/Voters ID with photographs and Ration Cards

Features of the under Kumbhar Sashaktikaran Programme

The Kumbhar Sashaktikaran Programme under the Gramodyog Vikas Yojana (GVY) will address the following issues:

  • The scheme will provide permission to potters to obtain the clay from the ponds and other locations
  • GVY will provide development of all-weather baking facilities for potters
  • Dissemination of information about the benefits of pottery products
  • The scheme is providing direct market linkage
  • To set up Centre of Excellence for Terracotta products with KVIC’s Training and Demonstration Units, Skill Development Institutes, Mattikala Boards of different states related to Red Clay / Ceramics Technology

Nature of Assistance under Kumbhar Sashaktikaran Programme

The Nature of Assistance provided under the Kumbhar Sashaktikaran Programme is as follows:

  • Wheel Pottery Training Programme for traditional pottery artisans Press Pottery training program for pottery as well as non-pottery artisans
  • Jigger-Jolly training program for pottery as well as non-pottery artisans
  • Trainer’s training program for skilled traditional pottery artisans who want to work as Master Trainers
  • Assistance by providing pottery wheel, Clay Blunger, Granulator

Wheel Pottery Training Programme

Pottery activity carried out using traditional potter’s wheel comes under wheel pottery. Improved ball-bearing potter’s wheel has to be operated manually and it is replaced by Energy Efficient Electric Potter wheels

Wheel pottery training program will be conducted for a Self Help Group (SHG) and a group of traditional pottery artisans from 10 families. The training will be provided for 10 working days and will have 80% practical and 20% theory in the wheel pottery training program

The electric pottery wheel will be distributed to the 5 trained artisans of SHG with 10 to 20 members in an SHG. 1 clay blunger will be distributed for common use.

Total 20 candidates will be trained with 4 SHGs i.e. 5 candidates from each SHG

Jigger -Jolly training program

Pottery activity using Jigger-Jolly machines along with various types of POP models and molds. The training will be provided for 30 working days and will have 80% practical and 20% theory in the wheel pottery training program

Jigar jolly activity is a semi-industrial form of pottery. The duration of the training program for jigger-jolly will be 30 working days. After completion of the training 05 jigger jolly will be provided along with clay blunger, pug mill, gas kiln/updraft kiln(Gujarat Model), work shed to be commonly used by the group of the 05 families

Press Pottery training program

Pottery activity using press and dies i.e. toggle hand press machines, screw press machines, etc.

Press pottery is a semi-industrial form of a pottery activity. The training will be provided for 10 working days and will have 80% practical and 20% theory in the wheel pottery training program In one group of 05 members, 03 numbers of 4†toggle press, 02 numbers 5†toggle press with a set of 03 dies with each press will be provided. Along with this for clay processing, one blunger and one granulator machine will be provided to each SHG

Selection of Beneficiaries

Artisans will be selected by the State level committee of KVIC by conducting the awareness camp or through advertisements as per the annual target allocated for the Scheme. Sny individual artisan who wants to take pottery training may approach the concerned field office of KVIC. Preference will be provided to the entrepreneur who is trained in the related activity and profile. As per the scheme, a minimum of 50% preference will be provided to SCs/STs/Women candidates/BPL category.

The final selection of the beneficiaries will be done by a State level Committee to be constituted for the purpose.

Documents Required

To avail of the benefit of the Kumbhar Sashaktikaran Program, the applicant needs to submit the following documents:

  • Two photograph
  • Identity proof
  • Address proof i.e. Voter ID Card/Ration Card/Electricity Bill

Each artisan needs to sign an undertaking on Rs. 50/- stamp paper that they can’t sell the machine to any other artisan and if it is found that they are not using this machine then immediately KVIC will withdraw the machine from them & file an FIR after doing all necessary formalities, it will be issued to another needy artisan. The Format of the undertaking is enclosed here.

Pottery-24-26

Application Procedure for Kumbhar Sashaktikaran Program

After the advertisement, the applicant (beneficiaries/SHGs) desirous of establishing the Pilot Projects, get training, or machines need to apply along with the project proposal to State/Divisional Directors of KVIC. Concerned State Office, KVIC can be contacted to know the further processing of the application.

Please click on the official link on the General guidelines of the Kumbhar Sashaktikaran Program – Gramodyog Vikas Yojana (GVY) for reference.

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Marriage Registration in India -Step by Step Guide

Marriage Registration in India -Step by Step Guide

Marriage is wedlock that is believed to be there till death. Only a person, who thinks he/she has the competence to live his /her entire life in this sacred tied relation being man and wife, should enter the bond. In India, no wedding is a small affair. People plan the wedding of their children since they are born. People leave no stone unturned to make sure that the wedding of their families is celebrated at their fullest. Meanwhile, between all the fun and wedding preparations, it is equally essential to get the marriage registered legally in our country. This will issue a marriage certificate that will be needed for all the joint ventures of the couple like, buying property or a spouse visa to go abroad.

Moreover, unfortunately, if the things do not go well, and one is thinking of a separation, a marriage certificate is a must for that. Moreover, if one of the partners dies, the certificate is very helpful in getting the insurance claim. Getting a marriage registered is the most essential and smartest thing to do.

Step by step procedure to register a marriage in India

A marriage certificate is a document that declares two people married legally. Marriages in India are to be registered under the Hindu Marriage act, 1955 or the Special Marriage Act, 1954. In the year 2006, the Honorable Supreme Court made it mandatory in India to get a marriage registered to legalize it.

Though most of the people know that it is a compulsion to get the marriage registered in India, they lack the knowledge of the procedure and end up in either paying too much to an agent or getting too much troubled. Here is the online and offline procedure to get a marriage registered in India:

Online registration for a marriage certificate

Just like the other essential things available online in India these days, registration of marriage online is also an option. Online registration is more preferred options because it saves time and troubles less, one does not have to stand in long queues and, especially in this era of social distancing. It skips one’s multiple meetings with the marriage registrar. Here are the steps.

  • Open the government’s official website of the home state applicant belong to
  • Browse the website and find the form for marriage registration on the site
  • Fill the personal details of both the parties of the marriage, as asked in the form
  • Submit the form once it is filled

Once the form is filled, marriage registrar will summon the applicant for a particular date and time. It is compulsory to present at the office of the marriage registrar on time with all the documents that are mentioned in the article below. Also, two witnesses from each side should be present at the time of the marriage at the marriage registrar office.

It is noteworthy that the date and time of the marriage given by the marriage registrar for a marriage under the Hindu Marriage act, 1955 is approximately 15-30 days after submission of the form. Furthermore, in the case of the Special Marriage Act,1954, it is approximately 60 days.

Offline registration for a marriage certificate

Under the Hindu Marriage Act, 1955

As discussed, marriages in India can be registered under either the Hindu Marriage Act, 1955 or Special Marriage Act, 1954. Irrespective of their religion, it is applicable to all citizens of India. The parties applying for a registration of marriage in India are only eligible, only if they are either Hindus, Sikhs, Jains or Buddhists. Also, if the marriage is already solemnized, the couple can apply for registration.

One has to visit the office of the sub-registrar under whose jurisdiction, the marriage was solemnized. It can be done at the sub-registrar’s office, under whose jurisdiction; one of the partners is residing for more than six months. According to the customs and rituals of either of the party, a Hindu marriage can be solemnized.

Under the Special Marriage Act, 1954

Irrespective of their religion, all the citizens of India can get their marriage registered under the Special Marriage Act, 1954. Under this registration, along with solemnization, is given to the couple by the marriage officer. As discussed, the couple applying under Special marriage Act, have to give a 30 days’ notice to the sub-registrar under whose jurisdiction, any of the partners reside.

The registrar puts up a notice on the board for 30 days, and if he/she does not receive and objection within the duration, the marriage gets registered. The sub-registrar of the jurisdiction must keep a copy of the notice.

This whole process enables the marriage to be complete without any religious ceremony. Special Marriage Act, 1954 is an alternative for those who are not eligible to register their marriage under the Hindu marriage act in India.

Where to register a marriage in India

As discussed, a marriage in India can be registered both online and offline. Online registration of marriage in India is available in major cities across India. One need to log in to the official website of the state in which the marriage was solemnized, or either of the partners is residing for more than six months. Then he/she needs to fill the marriage registration form available on the website. Once this process is complete, the person who has applied for the registration will be called at the registrar office for a meeting with him, to verify the couple’s documents and the witnesses, and then the registrar registers the marriage.

For the people who find the online procedure complicated, offline marriage registration is also an alternative. As discuss, one need to visit the office of the sub-registrar of the jurisdiction where the marriage was solemnized. Then one needs to fill the application manually, preceded by both the party’s signature and required documents. After 30 days, if there found no objections, the application on the marriage will be registered.

It is essential to know that if the marriage is registered under the Special Marriage act, 1954, the marriage can be only solemnized by a marriage officer. In such kind of cases, a notice is given to the registrar by the couple which is to be put on the notice board for the next 30 days. As mentioned, if there occurs no objection during this time period, the marriage gets registered.

Required documents

The documents required to get a marriage registered in India may slightly vary from one state to another. However, most of it remains the same. It is important to know that all the documents should be duly signed by a gazetted officer at the time of submission. The standard documents for all states are:

  • An application form signed by both the parties, i.e. the husband and the wife
  • A document for birth proof. The document can be a matriculation certificate, birth certificate, or passport. The age of the male applying for a marriage registration should be 21, and the female should be 18. This is applicable for both the Hindu Marriage Act, 1955 and the Special Marriage Act, 1954.
  • Residential proof of both the parties. It can be in the form of Election Voter ID, PAN Card, Aadhar Card, Ration Card or electricity bill.
  • In case the marriage took place in any religious place, a certificate from the institution, certifying the solemnization of the marriage.
  • Rs 100, if the marriage is registered under the Hindu Marriage Act, 1955 and Rs 150, if the marriage is registered under the Special Marriage Act, 1954, to be submitted to the district cashier. The receipt of the payment is to be attached with the application form.
  • Two passport size photos of both the parties, i.e. the husband and the wife. And one marriage photo in case it is already solemnized.
  • The invitation card for the wedding if the marriage is solemnized.
  • Both the parties have to give an affirmation that they are neither relayed to nor they fall into any decree of prohibited relationship, mentioned under the Hindu Marriage Act, 1955 or the Special Marriage Act, 1954.
  • In case any of the party is divorcee, an attested copy of the divorce decree should be attached with the application form.
  • In case any of the party is a widow or a widower, the death certificate of the spouse should be attached with the application form.
  • An affidavit should be attached with the application form that states the place of marriage, date of marriage, time of marriage, marital status and nationality of both the parties.
  • Two witnesses from both the side need to be present in the sub-registrar office at the time of the meeting.
  • In case the marriage is solemnized, two witnesses who attended the wedding need to be present in the sub-registrar office at the time of the meeting.

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Live-in relationships in India

Live-in relationships in India

A live-in relationship also called cohabitation in some countries is an arrangement when two people involved in a romantic and sexual relationship as partners for a long term or permanently, decide to live together without marriage. Ever since the live-in relationship in India has been legalised, it is essential to know the obligations and responsibilities that come along with it.

Indeed India has witnessed a drastic change in the way the present generation discern their relationships. With the society gradually accepting live-in relationships, the taboo that used to haunt people before moving into on has started fading away. This has happened over the years with a right to freedom, privacy, professionalism, globalisation and education. Furthermore, it is not an escape from the responsibilities; in fact, it is an attempt to know your partner better and to see the compatibility, so that divorce can be prevented.

Live-in relationship under Indian law

In the case Indra Sarma vs VKV Sarma, 2013, Honourable Supreme Court stated that live-in relationships have five distinct ways:

  • A domestic cohabitation between a major unmarried female and a major unmarried male. It is considered as the simplest kind of relationship between all.
  • A domestic cohabitation between that was entered mutually by a major unmarried woman and a married man. A domestic cohabitation between that was entered mutually by a major unmarried man and a married woman.
  • These two are the most acknowledged type of live-in relationship in India. Moreover, adultery is a type of relationship, and it is punishable under the Indian Penal Code, 1860.
  • A domestic cohabitation between that was entered unknowingly by a major unmarried woman, and a married man is also punishable under Indian Penal Code, 1860.
  • A domestic cohabitation between partners who are homosexual, cannot lead to a marital relationship. As in India, any matrimonial law for homosexuality is not defined yet.

The legal status of live-in relationship in India

In western countries, there is a broader acceptance of a couple in a relationship. This can be understood by their civil and union agreements, legal recognition, prenuptial between couples. However, it is not similar in India. In most of the western Apex Courts, it was ruled that if a man and a woman has lived in a live-in relationship for a long term and even has children, same marital laws as a husband and a wife will be applicable on them.

In India, the Apex Court even stated that a woman and a man living together is a choice and lies under the right to life. Hence, it is not a criminal offence. So, live-in relationships in India are legal.

Marriage and live-in relationship

Marriage

Marriage in India is an institution that is ritually and socially accepted. Basically, it is a contract between the partners that imposes rights, duties and legal obligation towards each other. Because of the diverse culture in India, different laws have been formulated, that lays down the guideline and the procedure to execute marriages in different religions. Not every marriage is bliss. In order to deal with the disputes arises in marriages between the partners, marriage laws has been created in different religions.

Along with the laws related to maintenance under personal laws, the Code of Criminal Procedure, 1973, section 125, also shields the wife with maintenance if she cannot maintain herself.

Also, there are provisions for women seeking extra maintenance other than maintenance received under other laws, Protection of Women from Domestic Violence act, 2005, section 20(1) (d).

Live-in relationship in India

Live-in relationship in India has been in talks since years, but there is no law that binds the partners with each other if any of the partners wants to walk out of a relationship.

The legal definition of a live-in relationship is still unconfirmed, as there is no legal definition of the same. As mentioned, the right of a wife to get maintenance is decided by the court under the Protection of Women under Domestic Violence Act, 2005 and the individual facts.

Though the concept of live-in relationship is still a taboo in India, and not openly accepted by the society, the Protection of Women from Domestic Violence Act, 2005 offers maintenance and protection by providing alimony for an aggrieved live-in partner.

Protection of children and women of a live-in relationship from exploitation  

Maintenance of the female partner

All the personal laws in India protect their women by offering the right to maintenance to them. But, unfortunately, none of the religions accepts and recognises a live-in relationship. Hence it is the Indian courts that worked on a remedy to this problem by widening up the scope of maintenance under the Code of Criminal Procedure, 1973. Section 125 of the act offers a legal right to maintenance to the female partner both in and out of marriage.

Domestic violence with the female partner or children born out of a live-in relationship

The Protection of Women from Domestic Violence Act, 2005 was enforced to protect the women in India from abusive (mental, verbal, economic and physical) marital relationships. Shielding the female partner in a live-in relationship, section 2(f) of the act is applicable for protection to not only married women but women living in a ‘relationship in nature of marriage.’

Considering all these factors, the Honourable Supreme Court of India has allowed live-in relationships, covered within the ambit of law specified, in a couple of cases.

Children born out of marriages 

In a live-in relationship, child/children can be born if it sustains for a long time. It is noteworthy that as per the Guidelines Governing the Adoption of Children as notified by the Central Adoption Resource Authority, live-in couples cannot adopt a child in India. But in case any dispute arises regarding custody of a child, the partners can consult a child custody lawyer.

Legitimacy and inheritance rights of children born out of a live-in relationship

The Hindu Marriage Act, 1955, section 16 talks about inheritance rights of children and provides the legal status of legitimacy to an illegitimate child (born out of marriage or live in) for the sole purpose of inheritance. Hence, the children born out of a live-in relationship are also granted inheritance rights. These rights are applicable to both ancestral and self-bought properties.

Custody and maintenance rights of children born out of a live-in relationship

It is the personal marriage laws that deal with the maintenance rights of children born out of regular marriages, which is applicable to children born out of a live-in relationship as well. It varies from one personal law to another. Like, under Muslim rule, a father is not liable for maintenance for a child born out of marriage, whereas in the Hindu law, the father has to maintain such child.

Furthermore, section 125, the Code of Criminal Procedure, 1973, is there for children who cannot claim maintenance under personal laws, as it offers a legal right of maintenance to both the wife, female partner and children.

Conclusion

By all means, we can conclude that the concept and legal status of a live-in relationship in India have only evolved with time, and various judgements by Honourable Supreme Court and the Apex courts play the most crucial part in it.

However, there is no legality to the subject, as there is no separate legislation for the provisions of a live-in in India. Although the concept of a live-in relationship is a subject of morality in India, it’s not illegal according to the laws. Honourable Supreme court held that two major people living together is their right to life, and hence, it cannot be considered illegal. In order to protect women in live-in and children born out of a live-in relationship, the court has defined them as ‘relationship in the nature of marriage,’ under the Protection of Women from Domestic Violence Act, 2005.

In a landmark case, Indra Sharma vs KVK Sharma, 2013, Honourable Supreme Court of India, held that a live-in relationship requires effective and adequate protection, especially the female partner and the children born out of such relationships, as it may sustain for a long time and can result into vulnerability and dependency.

India is a state where morality is an extremely important thing to follow. Keeping this in mind, the legislature cannot promote pre-marital sex that comes along with a live-in relationship. It is because ta live-in relationship is a very personal matter and people having an opinion for or against it, may express that. Therefore the parliament has to pay attention to such issue and enforce proper legislation of an act for it. This will help the partners to be secure and to live their life as it is their right to life.

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Prenuptial Agreements in India

Prenuptial Agreements in India

Maybe it’s still not very common in India, but prenuptial agreements are something real that needs to understand. We never know what things come in our way; it’s better to have knowledge about everything. Since marriages in India are considered as a most special and auspicious event in one’s life, and not a contract. Prenuptial agreements, also called as ‘prenup’ are rarely seen. In western countries, marriages are considered as a contract between a husband and his wife.

What is a prenup agreement?

A prenup is a contract between the spouses that is signed prior to their marriages. This contract states the settlement of money between the parties in case of death, divorce or separation. In other words, it is an agreement for both the party’s proportion of property, money, assets and anything and everything that each of them will be receiving in case the marriage dissolves.

The legal status of a Prenup agreement in India

Marriages in India are performed by personals laws. Under the Hindu Marriage Act, 1955, a marriage is not a contract, so prenup is invalid. Though under Muslim law and Christian law, marriage is a form of contract, they also do not validate prenup agreements. However, it is governed under the Indian Contract Act, 1872.

The objective of a prenup agreement

Despite being not so common in India, prenups have its own benefits too. In the cases of divorce and separation, a prenup saves both the parties from struggling with dates of hearing in the courts, facing those annoying acquisitions, blaming each other, or getting less payment as alimony or paying more as alimony. In such a scenario, the prenup is not only a time saver but easier to perform. We have to be ready for the beat anyway.

Undoubtedly, most of the maintenance and alimony laws support female spouses, and hence it somewhat lacks to consider the financial conditions of the male spouses. And as a result, the judgment is ultimately in favour of the female spouse. However, in case of a prenup agreement, the financial liabilities are pre-decided, so none of the partners gets prejudiced at the time of separation. A prenup agreement supports financial transparency and, as a result of which, both the partners know the financial condition of each other. This leads to no chance of any kind of fraud.

The clauses of a prenup agreement

  • A disclosure of liabilities and assets of both the parties
  • Financial and the monetary position of both the parties
  • Real estate properties of both the parties
  • An estate planning
  • Sharing of the properties if the marriage gets dissolved
  • Maintenance or the alimony between the parties, if the marriage gets dissolved
  • The custody and maintenance of the child/children
  • The financial status of both the party’s businesses(if any), and the partnership in business (if any)
  • Monetary savings
  • Credit card limits, debts, spending, payments
  • Financial investments
  • Retirement benefits and accounts
  • The claims of medical insurances and life insurance
  • The management of joint bank accounts or other accounts
  • The management of household expenses, bills and other miscellaneous expenses
  • Management of the jewellery

A prenup agreement is enforced only if :

  • The contract should be fair, transparent, in writing and mutually signed by both the parties.
  • The contract should be signed by both the parties and should be executed before the marriage.
  • The contract should be voluntarily made and signed. None of the parties should be forced, beaten, pressurised, etc.
  • The contract must be notarised and certified.
  • The contract should contain a particular clause which should mention even if any provision of the contract become invalid in future; the agreement will be still valid and in force.
  • The contract should mention all the financial possessions, liabilities, assets, etc. owned by both the parties.
  • The contract should not contain any information which is false or invalid.
  • The contract should constitute all the provisions that have been known and discussed by both the parties.

Advantages of a prenup agreement 

  • A Prenup agreement eases the process of maintenance and legal separation and makes it speedy. Also, it helps parties to not to pay exorbitant fees to the lawyers.
  • A prenup agreement protects both the parties from each other’s debts.
  • A prenup contract makes both the parties financial secure, in case any of them dies.
  • A prenup secures and protects the child, in case the parents opt for a divorce or a mutual separation.
  • A prenup agreement financially secures the future of both the parties, as the monetary things are pre-decided.
  • A prenup contract secures the custodial and re-marriage rights of both the parties.
  • This contract prevents the business of the parties to get divided.
  • A prenup contract guarantees maintenance, alimony and the actual spousal support needed.
  • A prenup agreement is most helpful in preventing the messy situation in court proceedings at the time of a divorce or a legal separation.
  • A prenup contract reduces the chances of any conflict between the parties, which leads to a better understanding between them.

Though legally there is no drawback of a prenup agreement, nut, it is still a social taboo in India. It creates a negative impression of the couple who does it, or any of the partners, who offers it. Because marriage been considered as a very holy practise, couples who opt a prenup agreement, are regarded as either way too practical, or has been decided that the marriage won’t last.

Disadvantages of a prenup agreement

  • Opting a prenup agreement is a difficult thing to do for both the parties, as they are constantly judged by society.
  • In some or the other way, a prenup agreement impliedly declares that the marriage is not going to last forever, as it somehow encourages the dissolution of marriages.
  • With all the pros of a prenup agreement, it also can affect the couple in unfavourable conditions post marriage.
  • A prenup agreement can intensify the importance of money between the couple, instead of strengthening marriage and understanding.
  • A prenup contract and unfavourably affect the lifestyle of both parties.
  • A prenup can also enforce a ‘no child’ provision (depends upon both the parties).

What happens when you don’t make a prenup agreement

When a couple opts for not making a prenup agreement, their state laws determine that who owns the property that any of them acquires during the marriage. Also, what is to happen with property, in case any of the partners dies, or the divorce, their state property law, decides that. The property acquired during the marriage is often called as community property or marital property that depends on the state law in which the couple resides. The state property law can also decide (if it exists) on the happenings of the property one owns at the time of marriage.

Provisions of a prenup agreement that can be overruled by a court

There are certain provisions of a prenup agreement that can be overruled or rejected by Indian courts. They are:

  • If the agreement or any provision of the agreement encourages divorce or judicial separation.
  • If the agreement or contract or any provision mentions a spousal waiver.
  • If the agreement or any provision of the agreement waives permanent or temporary alimony or counsel fees.
  • If the contract or any provision of the contract waives child custody, child maintenance and support.
  • If the contract or any provision of the contract mentions regulation of conduct during the marriage.
  • If the agreement or any clause of the agreement mentions the religious upbringing of the children.
  • If the contract contains a no child provision.
  • If the contracts, limits or decides any ground of divorce.
  • Severability

Prenup agreements under Muslim law and Christian laws

As mentioned earlier, a marriage under Muslim laws and Christian laws are considered to be a contract between both the parties. A marriage contract in both laws contains certain automatic property rights for both the spouses. When couples do not sign a prenup agreement before marriage, their natural rights, according to both the laws are:

  • Both the parties share the ownership of property or properties that have been acquitted during the marriage. This is implied that the property they acquire will be divided between both if they decide to divorce or death of any of the party.
  • Both the parties incur debts, that other party may have to pay
  • Both parties share the control and management of any community or marital property. This right may include a right to sell or give away the property.

Conclusion

If both the parties both agree on signing a prenup contract mutually, and sign the contract voluntarily, without any threat. Influence, force or coercion, the agreement can be latterly considered as a reference or n evidence by the Indian Contract Act, 1872. The documents of the contract will be equally valuable as any other contract in a written or oral format. However, the document must state the provisions clearly.

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Auditor and his role in a Company

Auditor and his role in a Company

Audit is a corporate governance practice that is conducted to put a check on an entity. It is the thorough examination of complete books of accounts, transactions entered into by the company, physical inspection of inventories, etc. to make sure all the departments within the organization follow the standards and systems to operate.

Audit is conducted by professionals who have expertise in relevant areas depending upon the category of the audit. Every public listed entity must get its accounts audited by an independent auditor before the declaration of result of any quarter.

For any audit, the sequence of steps is crucial to ensure easy and hustle-free. The following must be followed:

  • Decide the role & duties of the auditor.
  • Enlist the scope of the work and departments to be covered
  • Conduct the audit and compile the data and information

Process of Appointment of an Auditor

Every company whether is it private or public limited shall get its accounts audited and for that purpose, it must appoint auditor through the following steps:

  • The first auditor of the company is appointed by the board of directors within 30 days of the incorporation date and shall hold the office until the conclusion of the first AGM.
  • In case board fails to appoint within such time-limit, the company shall appoint its first auditor in general meeting
  • The company must appoint an auditor or ratify the appointment of auditor in every annual general meeting to hold the office from the conclusion of such AGM to the next AGM.
  • Within 7 days of appointment, the company must intimate the appointed auditor
  • The auditor shall confirm his appointment within 30 days of receipt of intimation from the company and shall inform the Registrar about his appointment
  • In case of government companies, such an appointment is made by Central Government on the advice of the Comptroller and Auditor General of India.
  • Company shall file Form ADT-1 to ROC within 15 days of such appointment

Appointment of Auditor by Special Resolution: Auditor shall be appointed by passing Special Resolution in all such Companies where 25% or more shareholding is held by these entities:

  • Public Financial Institution; or
  • Government Company; or
  • Central Government; or
  • Any financial institution established by provincial act and in such institute State Government holds 51% or more of the subscribed capital; or
  • Nationalized bank; or
  • Insurance Company

If these classes of the company fail to pass Special resolution for the appointment of an auditor, it will be deemed to be non-appointment and such company will be assumed to have no auditor and Central Government has the power to fill such vacancy.

Removal of Auditor

Removal of an auditor is classified into two categories – before or after the expiry of the tenure of the auditor. The process to remove the auditor is governed under the Companies Act.

  • If the company is not satisfied with the work of the auditor, it can remove him from the office before the expiry of his tenure.
  • The auditor is given a fair and reasonable chance of being heard and to show reasons for his inappropriate conducts
  • Approval of the Central Government is mandatory for the removal of the auditor before his tenure gets over.
  • The application to the Central Government for its approval is made through Form ADT-2
  • Within 30 days of passing the Board Resolution, such application to the central government shall be made
  • Once the approval to the effect for the removal of the auditor is granted, the company shall conduct a general meeting to pass a special resolution for the appointment of alternate auditor in place of the auditor being removed

Right, Duties, and Obligations of an Auditor

The auditor is appointed to scrutinize the books of accounts and in-depth inspection of the organization’s operation to ensure the validity and accuracy of the transactions contained therein. Thus, an auditor has specified rights, duties, and obligations while performing his audit.

  • The audit report is an appraisal of the financial position of the business. He must prepare a financial report based on true and accurate information and the same must be under the standards of the relevant law
  • The audit report is a reliable source of information since it consists of an auditor’s opinion about the company. An auditor must form the correct advice on the report and in cases even to give adverse remark if required
  • One of the most important duties of an auditor is to make inquiries and findings throughout the audit. For instance, whether the loan and advances are made by the company within the provisions of the Companies Act or whether the loans taken are shown as a deposit.
  • The auditor has to lend assistance if required for branch audit
  • Central Government in consultation with NFRA has issued Auditing Standards that must be adhered to by an auditor while performing the same
  • The auditor should conduct the audit within the scope as the board decides.

FAQs

What is the provision for the re-appointment of the auditor?

At the annual general meeting, the retiring auditor can be re-appointed provided the following conditions are satisfied with the effect:

  • He/she is not disqualified
  • The retiring auditor has given his consent in writing about their unwillingness to be re-appointed
  • Resolution is passed for the appointment of any other auditor
  • Resolution is passed to the effect that retiring auditor shall not be re-appointed in the firm

Who can be or cannot be appointed as an auditor of the company?

Qualification: following persons are eligible to be appointed as an auditor of the company:

  • Chartered Accountant
  • Practicing firm whose majority partners are CA with the authority of signing and acting lie upon those partner with CA qualification

Disqualification: The following list is disqualified from conducting an audit of the company:

  • Body corporate
  • An employee of the company or their relatives
  • Has provided a guarantee for any third party to the company exceeding INR 5 Lakhs
  • Partner or officer or employee of the company

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Income Tax Exemption to District Mineral Foundation

Income Tax Exemption to District Mineral Foundation

The Central Board of Direct Taxes (i.e., CBDT), vide notification no. 73/2020- Income Tax dated 10th September 2020, exempted certain specified income derived by the District Mineral Foundation Trust. The exemption is briefly explained in the current article.

Understanding the District Mineral Foundation

Before going through the exemption available, it is essential to understand the term ‘District Mineral Foundation’. Notably, the Mines and Minerals (Development & Regulation) Amendment Act, 2015 mandates setting up of the District Mineral Foundations in all the districts of the country which are affected by the mining related operations.

Fundamentally, District Mineral Foundation is a trust which is set up as a non-profit body. The foundation is set up in those districts affected by the mining works.

The Foundation works for the interest and benefits of the persons and areas affected by the mining related operations. The Foundation receives the funds from the contributions from the miners.

Available exemption

Based on the powers available under section 10(46) of the Income Tax Act, 1961, the Central Government exempts the specified income of the District Mineral Foundation Trust. The types of income and number of years to which the exemption is available are explained hereunder.

Following types of incomes are exempted-

  1. Contribution by the lease holder to the District Mineral Foundation.
  2. Interest received from the lease holders towards late payment.
  3. Any amount of penalty charged to the lease holders.
  4. Interest income from fund available under District Mineral Foundation.
  5. Interest income received from the Saving Bank Account.
  6. Interest income received on excess fund invested in a term deposit.

Exemption under section 10(46) of the Income Tax Act, 1961 to the District Mineral Foundation, is available for the following five years-

  1. Assessment Year 2018-2019,
  2. Assessment Year 2019-2020,
  3. Assessment Year 2020-2021,
  4. Assessment Year 2021-2022, and
  5. Assessment Year 2022-2023.

The notification clearly states that for earlier years i.e., 2018-2019 and 2019-2020, it shall be deemed that the above exemption is available.

Conditions for availing the exemption

Each District Mineral Foundation is required to satisfy all the following conditions, in order to avail the exemption under section 10(46) of the Income Tax Act-

  1. The District Mineral Foundation should not be engaged in any commercial activity,
  2. The activities and the nature of specified income should remain unchanged during the entire Financial Year,
  3. The District Mineral Foundation should file the income tax return as per provisions of section 139(4C) (g), and
  4. The District Mineral Foundation should also file the audit report with the income tax return. The practising chartered accountant should duly verify and sign the said audit report.

Synopsis of the exemption

An exemption is available to- The District Mineral Foundation Trust.
Section under which exemption is available- Section 10(46) of the Income Tax Act, 1961
Mandatory conditions to be fulfilled-

·    Trust shouldn’t be engaged in commercial activity.

·    There shouldn’t be any change in the activity and nature of income.

·    Duly file income tax return.

·    Duly file audit report.

Number of Years exemption is available- 5 years (i.e. from Assessment Year 2018-2019 to Assessment Year 2022-2023)

 

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Pradhan Mantri Matsya Sampada Yojana

Pradhan Mantri Matsya Sampada Yojana

Recently, on 10th September 2020, Prime Minister Shri Narendra Modi launched the ‘Pradhan Mantri Matsya Sampada Yojana’. The scheme is a part of the Atmanirbhar Bharat Package and aims estimated investment of INR 20,050 Crores in the next five years.

The scheme aims to bring ‘Blue Revolution’ via responsible and sustainable development of the fisheries sector in India. The present article briefly explains the newly launched project.

The objective and beneficiaries of Pradhan Mantri Matsya Sampada Yojana

The purpose/ goal behind the introduction of the scheme are highlighted hereunder-

  • To increase fish production/ productivity via diversification, expansion and fruitful utilization of land and water.
  • To increase the income of fishers and fish farmers.
  • To generate more employment.
  • To modernize and strengthen the value chain.
  • To provide physical, social and economic security to the fishers and fish farmers.
  • To strengthen fisheries management and regulatory framework.

The scheme is benefited to following categories of persons-

  • Fishers
  • Fish workers and fish vendors.
  • Fish farmers.
  • Fisheries Co-operatives.
  • Fisheries Development Corporations.
  • Fisheries Federations.
  • Fish Farmers Producer Organizations and Companies.
  • Entrepreneurs and Private Firms.
  • SC/ ST/ Women and Differently abled persons.

Implementation of Pradhan Mantri Matsya Sampada Yojana

The scheme will be implemented as an umbrella scheme with following two separate workings-

  1. Central Sector Scheme; and
  2. Centrally Sponsored Scheme. The same has the following two parts-
    1. Non-beneficiary oriented; and
    2. Beneficiary oriented.

The Central Government will bear the entire funds. However, significant activities of the scheme will be implemented in partnership with the States and the Union Territories. To some extent, for implementation of the scheme, cluster approach or area-based approach will be adopted.

To effectively implement the scheme, programming units like state programming unit, district programming unit and sub-district programming units will be created at high fisheries potential districts, state programming units.

Scope of Pradhan Mantri Matsya Sampada Yojana

Following activities will be undertaken in the scheme-

  • Steps to increase fish production and productivity.
  • Adoption of process to enhance quality, standards, sustainability and traceability in fishery sector.
  • Upgradation of value-chain by modernizing and strengthening the same.
  • Creation of favourable atmosphere in the fishing sector for the development of entrepreneurship; increase participation of the private sector; promotion of ease of doing business etc.
  • Steps to develop fisheries management plans, integrated district fisheries management/ development plans etc.
  • Action to implement water management and spatial planning.
  • Steps to enhance production/ productivity of waste lands and water for aquaculture by adopting new technologies like Recirculatory Aquaculture Systems, Aquaponics Cage Cultivation, Biofloc etc.
  • Steps to promote startups in fisheries and aquaculture, entrepreneurship models, incubation centres, innovations, sea ranching etc.
  • Activity focusing fisheries development in areas like Jammu & Kashmir, Northeast, Ladakh and Aspirational Districts via specific strategic development planning.
  • Steps to promote Aquaculture in Northeast areas like alkaline and saline.
  • Enhancement of species diversification. Promotion of high-value species like Scampi, Seabass, mud crab etc.
  • Procedure to establish a national network of Brood Banks for all the commercially important species. Further, it is also envisaged to establish Nucleus Breeding Center.
  • Steps to develop coastal fisher community.
  • Development of aquaparks which will assure affordable and quality inputs, post-harvest infrastructure facility, logistic support, marketing facility, business enterprise zone, business incubation centres etc.
  • Introduction of insurance coverage for fishing vessels. Incorporation of insurance coverage for fishermen.
  • Establishment of Fisheries Extension Services Centers to create job opportunity for young professionals.
  • Creation of national platform for e-marketing and e-trading of fish.

Funding Pattern of Pradhan Mantri Matsya Sampada Yojana

The funding under the scheme will be done in the following manner-

Particulars Share of project or unit Percentage of Government Assistance
Central Sector Scheme The entire project or unit will be borne by the Central Government.

40% of project/ unit cost for General Category; and

60% of the project/ unit cost for SC/ ST/ Women Category.

 

Centrally Sponsored Scheme The project or unit will be borne by both the State and Centre in the following manner-

State Percentage sharing
North Eastern and Himalayan 90% Central and 10% State
Other States 60% Central and 40% State
Union Territories 100% Central

40% of project/ unit cost for General Category; and

60% of the project/ unit cost for SC/ ST/ Women Category.

 

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Cost Audit Report – Form CRA 4 Due Date Extension

Cost Audit Report – Form CRA 4 Due Date Extension

Because of the extraordinary disruption caused due to the COVID 19 pandemic, the Ministry of Corporate Affairs (MCA) vide notification dated 10.09.2020 has issued a Circular concerning the period of extension for the Filing of CRA-4 ( Cost Audit Report ) for the financial year 2019-2020. The Ministry also provided relaxation of additional fees under the Companies Act, 2013 . The Present article briefs the extensions so provided and tries to clear up the basic provisions relating to Cost audit and procedure to be followed for filing Form CRA 4.

Synopsis of Notification

The Ministry of Corporate Affairs is provided relaxation of additional fees and extension of the last date for filing of Form CRA-4 for the financial year 2019-2020.

  • If the cost audit report for the financial year 2019-2020 is submitted by the cost auditor to the Board of Directors of the companies by 30th November 2020 then the same will not be viewed as a violation of rule 6(5) of Companies (Cost Records and Audit) Rules 2014.
  • The cost audit report for the financial year ended on 31st March 2020 will be filed in e-Form CRA-4 within 30 days from the date of receipt of the copy of the cost audit report by the company
  • In case a company has availed an extension of time for holding an Annual General Meeting (AGM) then e-Form CRA-4 need to be filed within the timeline provided under the provision of rule 6(6) of the Companies (Cost Records and Audit Rules), 2014)

Cost Audit Report 

Cost audit is the process of verification of cost accounts of a company to determine the accuracy of cost accounting records. Cost audit will ensure that whether the cost accounting records are in track with the costing principles, objectives, plans, and procedures.

The audit usually involves the following:

  • Verification of accuracy of costing records
  • Detection of errors in the cost records
  • Checking of cost books, accounts, and records

Governing Law

Section 148 of the Companies Act, 2013 lays out the provisions and requirements concerning Cost Records and Cost Audit applicability.

Rule 3 of the Companies (Cost Records and Audit) Rules, 2014 identifies the companies that are required to keep Cost Records, undergo a Cost Audit, and submit Cost Audit Report.

Companies Required Conducting a Cost Record Audit

The following entities are required to file the Cost Audit Report in Form CRA-4 to Government:

  • Regulated sectors dealing with specified goods/services which overall annual total turnover from all products/services is Rs.50 Crore or more
  • Regulated sectors dealing with specified goods/services which aggregate turnover from the individual product/service is Rs.25 Crore or more
  • Non-regulated sectors dealing with specified goods/services and overall annual total turnover from all products/services is Rs.100 Crore or more
  • Non-regulated sectors dealing with specified goods/services aggregate turnover from the individual product/service is Rs.35 Crore or more

To know more about the Regulated and Non-regulated sectors, go through the document attached here.

Instruction-Kit-FormCRA-4-12-14

Exemption from Conducting a Cost Record Audit

The following companies are exempted from Conducting a Cost Record Audit

  • The company’s export revenue in foreign exchange exceeds 75% of total revenue
  • The company operates from a Special Economic Zone (SEZ)
  • The company is engaged in the production of electricity through Captive Generating Plant

Applicable Forms – Cost Audit Report

Form CRA-1

Forms in which cost records shall be maintained. This form CRA-1 prescribes the form in which cost records will be maintained and detailed information about the cost element and their treatments etc.

Form CRA-2

Form of intimation of appointment of cost auditor by the company to MCA. Every company must file a notice of appointment of cost auditor with RoC through online in Form CRA-2 within 30 days of the board meeting in which the appointment is made or within 180 days from the date of commencement of the financial year.

Form CRA-3

Form of Cost Audit Report – This form CRA-3 provides a format in which the Cost auditor has to submit his cost audit report to Company. The cost audit report is a certificate containing five paragraphs on fifteen specific points such as

  • Cost accounting system and cost accounting records
  • Inventory valuation
  • Budgetary control system
  • Related party transactions
  • Payments default to the Governments / Banks
  • Actual exports, Export benefits, and incentives on their profitability
  • Internal audit
  • Suggestions concerning cost control and cost reduction
  • Independent audit opinion regarding the cost accounting records

After the audit is duly complete, the auditor will submit the Form CRA-3 to the company. The Cost Audit Report in form CRA-3 must be submitted by the Cost Auditor to the Company within 180 days of closure of the financial year. The company must then furnish the cost audit report, with full details and explanations to MCA through Form CRA-4 along with the digital signature of the Cost Auditor.

Form CRA-4:

Form for filing Cost Audit Report with the Govt. On the receipt of the Cost audit report from Cost auditors, the company need to submit the same to Central Government in form CRA-4 within 30 days from obtaining the audit report.

Fee for filing CRA – 4 (Cost Audit Report)

The fee for filing CRA – 4 (Cost Audit Report) is tabulated here for reference according to the Companies (Registration Offices and Fees) Rules, 2014

Sl.No Nominal Share Capital Fee applicable
1 Less than 1,00,000 Rs. 200 per document
2 1,00,000 to 4,99,999 Rs.300 per document
3 5,00,000 to 24,99,999 Rs. 400 per document
4 25,00,000 to 99,99,999 Rs. 500 per document
5 1,00,00,000 or more Rs. 600 per document

The fee for filing CRA -4 in case a company does not have share capital is Rs.200 per document and the foreign companies have to give Rs.6000 for filing.

Additional Fee (Penalty for Late Filing)

Sl.No Period of Delays All Forms
1 Up to 30 days 2 times of normal fees
2 More than 30 days and up to 60 days 4 times of normal fees
3 More than 60 days and up to 90 days 6 times of normal fees
4 More than 90 days and up to 180 days 10 times of normal fees
5 More than 180 days 12 times of normal fees

Note: As per the MCA notification dated 10.09.2020, the companies are exempted from the payment of an additional fee.

Documents Required

  • XBRL document in respect of the cost audit report and company’s information and explanations on every qualification and reservation contained
  • Any other information can be provided as an optional attachment

Procedure for Filing of eForm CRA-4

The following steps can be used for filing the eForm CRA-4 on the MCA portal.

  • The applicant needs to access the official website of the Ministry of Corporate Affairs (MCA) to file eForm CRA-4. By login to the portal, the applicant can upload the e-form CRA-4.
  • After login to the portal, provide the following details:
    • Corporate identity number (CIN) or foreign company registration number (FCRN) of the company
    • SRN of 23C/ CRA-2 filed for appointment of Cost Auditor
    • Specify the financial year for which the report is being filed
    • Date of the meeting of the Board of Directors in which Annexure to the cost audit report was approved
    • Number of Industries/ Service for which the Cost Audit Report is being submitted
    • Details of regulated sectors/ non-regulated sectors for which the Cost Audit Report is being submitted
    • Details of prescribed industries under-regulated sectors/non-regulated sectors for which Cost Audit Report is not applicable
    • Details of the cost auditor appointed including, the number of cost auditor, category of cost auditor, membership number, name, and Firm registration number (FRN)
    • Date of the board meeting in which cost auditor was appointed
    • Type of appointment of cost auditor
    • Describe the scope of an audit of the cost auditor, firm/LLP
    • Date of receipt of a copy of the cost audit report by the company
    • Provide the details of cost auditor’s repost
  • Attach the DSC of the person digitally signing the form. The person digitally signing the form can be any one of the following:
    • Director
    • Manager
    • CEO
    • CFO
    • The company secretary of the company
    • Authorized representative
  • By clicking on the attach button, the required document can be uploaded and click on the pay payment button for making a processing fee.
  • On successful submission of the form CRA-4, the eForm will be processed by the Ministry of Corporate Affairs.

The format of the e-Form CRA-4 is attached here for reference:

form4_42958

SRN Generation

SRN will be generated and displayed to the applicant on the successful submission of the form CRA-4. This SRN will be used for future correspondence with MCA.

Challan Generation

On successful submission, a challan will be generated depicting the details of the fees paid by the company to the Ministry. It is the acknowledgement to the applicant that the form CRA-4 has been filed.

When the form CRA-4 is completely processed by the authority, an acknowledgement will be sent to the official mail of the company.

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Placing of company’s annual return on the website

Placing of Company’s Annual Return on the Website

Recently, the Ministry of Corporate Affairs has amended specific provisions/ rules which necessitates the company to place the copy of their annual return (Form No. MGT-7) on the company’s website. The present article highlights the newly amended provisions relating to the company’s annual return .

Recent updates on the requirement of the company’s annual return on a website

The Ministry of Corporate Affairs has come up with two notifications through which certain amendments have been undertaken. The said two notifications and the corresponding amendment is reflected hereunder-

  1. Notification dated 28th August 2020 – vide the notification, provisions of section 23 (ii) of the Companies (Amendment) Act, 2017 are made effective from 28th August 2020.
  2. Notification dated 28th August 2020 – vide the notification, the Companies (Management and Administration) Amendment Rules, 2020 are introduced.

Both the above amendments are briefly explained below.

Analyzing the amendments governing the company’s annual return

  1. Effect of the applicability of provisions of section 23(ii) of the Companies (Amendment) Act, 2017-

The provisions of section 23(ii) of the Companies (Amendment) Act, 2017 amended section 92(3) of the Companies Act, 2013. The amended section 92(3) mandates every company to place a copy of the company’s annual return on the company’s website.

Further, the new provision states that the company should mention the web-link of the company’s annual return (placed on the company’s website) in the Board’s report.

In nut-shell, if the company has its website, then, the company is required to place the copy of the annual return on its website. Accordingly, the web-link of the same is to be disclosed in the Board’s report. Noticeably, the new provisions are made effective from 28th August 2020.

  1. Effect of introduction of the Companies (Management and Administration) Amendment Rules, 2020-

Provisions of rule 12(1) of the Companies (Management and Administration) Rules, 2014 requires the companies to attach the extract of the annual return in Form No. MGT-9 with the Board’s Report.

However, vide the amendment rules, a new proviso has been inserted to said rule 12(1). The proviso states that if the company has disclosed web-link of the annual return in the Board’s report then, in such case the company is not required to attach the extract of the annual return in Form No. MGT-9 with the Board’s report.

Nevertheless, it is vital to note here that if the company has not disclosed the web-link in the Board’s report, then, the company is required to attach the extract of the annual return in Form No. MGT-9 with the Board’s report.

The gist of the amendments

It is important to note that the above amendments apply only to the companies who are having their own website.

For better understanding, the following table summarizes the action on the part of the company (for both the company having a website and company not having a website)-

Particulars Action on the part of the company
A company having a website.

·    Place the copy of the company’s annual return on its website; and

·    Disclose the web-link of the annual return in the Board’s report.

·    Company is not required to attach the extract of the annual return (Form No. MGT-9) with the Board’s report.

A company not having a website. Company is required to attach the extract of the annual return (Form No. MGT-9) with the Board’s report.

 

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