Form 15H in word format

[See section 197A(1C) and rule 29C(1A)]
Declaration under section 197A(1C) of the Income‐tax Act, 1961 to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax.
1] Name of Assessee (Declareant) : 2] PAN :
  3] Age: 4] Assessment Year 2013-14

5] Flat / Door / Block No. : 6] Name of Premises : 7] Assessed in which Ward / Circle
8] Road / Street / Lane : 9] Area / Locality : 10] AO Code (under whom assessed last time) :
  Area Code AO Type Range Code AO No.
11] Town / City / District : 12] State :
  14] Last Assessment Year in which assessed : 2012-13
13] PIN
15] Email : 16] Telephone / Mobile No : 17] Present Ward / Circle
18] Name of Business / Occupation : 19] Present AO Code (if not same as above):
20] Jurisdictional Chief Comm. of Income Tax or Comm. of Income Tax (if not assessed to income tax earlier): Area Code AO Type Range Code AO No.

21] Estimated total income from the sources mentioned below: (Please tick the relevant box)
 Dividend from shares referred to in Schedule - I
 Interest on securities referred to in Schedule - II
 Interest on sums referred to in Schedule - III
 Income from units referred to in Schedule - IV
 The amt of withdrawal referred in sec-80CCA(2)(a) from National Savings Scheme referred to in Schedule - V
22] Estimated total income of the previous year in income mentioned in Col - 22 to be included :

23] Details of investments in respect of which the declaration is being made :



Instructions to e-File Form 15CA and 15CB

Instructions to e-File Form 15CA and 15CB
Page 2
Table ofContents
Registration process for Filing Form 15CA ..................................................3
Filing process.............................................................................................. 3
View Form 15CA ......................................................................................... 7
Registration process for Filing Form 15CB ..................................................9
Pre-requisite............................................................................................... 9
Filing process............................................................................................ 10
View Form 15CB ....................................................................................... 11
Instructions to e-File Form 15CA and 15CB
Page 3
Registration process for Filing Form 15CA
To file the “Form 15CA”, user should hold valid PAN/TAN and should be registered in eFiling.
If not already registered, user should go to Register Yourself, Select User Type and
complete the registration process.
Filing process
Step 1 - Login to e-Filing, Go to e-File -> Prepare and Submit Online Form (Other than
Step 2 - Select Form 15CA from the drop down.

Note: For TAN Users DSC is Mandatory to file Form 15CA.
Step 3 - Generate signature for the zip file using DSC Management Utility (available
under Downloads) and upload the generated signature file.
Step 4 – Click Continue. A popup appears as shown below.


Business Transactions - Investment Transactions

The income arising from Sale of Shares/Debentures or other securities and real estate business will be determined and taxed on the basis, whether they are Capital Asset or Business Asset. It is important to determine, whether the income is generated from Capital Assets or from Business Assets and be determined as Capital Gain or Income from business.
It is important to determine the nature of income because the rate of tax will be different in case of Capital Gain or Business Income.
There is no parameter prescribed under the Income Tax Act, 1961 to characterised on the basis of which, a transaction can be classified as business transaction or as transaction of investment.
If a transaction emerges on sale/purchase of an asset kept as an investment, then it is in the nature of Capital Asset and income arises from the same will be taxed as Capital Gain or otherwise it is a Business Income.
Section 2(13) of the Income Tax Act, 1961 defines “Business” to “include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture.”
Section 2(14) of the Income Tax Act, 1961 defines “Capital Asset” as “Property of any kind held by the assesses, whether or not connected with other his business or profession, but specifically excludes “Stock in trade” and other kind of specified assets.
Note: Any kind of property except except those falling in the excluded category is a Capital Asset.
Let us consider some Judicial Decisions in this respect;
CIT vs. Ahmedbhai Umarbhai & Co. (1950)18ITR 472(SC) the Supreme Court has defined business to mean every continued activity of person, which yields profits and which is in the nature of trade, commerce or manufacture.
Barendra Prasad Roy Vs. CIT(1981)129ITR 295(SC) the Supreme Court held that business income mean as activity carried on continuously and systematically by a person by the application of his labour and skill with a view to earning an income.
Thus the main ingredients of a Business are;

1.       It should be an occupation or profession which occupies the time, attention and labour of a person,

2.       The object is primarily of making profit.
CIT Vs. Associated Industrial Development Co. (P) Limited (1971) 82 ITR 586/1972 CTR(SC) 239(SC) , the Supreme Court held that “ Whether a particular holding is by way of investment or forms part of the Stock in trade is a matter which is within the knowledge of the assesses, who hold the shares and it should , in normal circumstances, be in a position to produce evidence from its record as to whether it has maintained any distinction between those shares which are its stock in trade and those which are held by way of investment.”
Fidelity North star Fund, In re(2007) 288 ITR 641,  Authority for Advance Rulings (AAR) held that “ ordinarily the purchase and sale of shares with the motive of earning a profit, would result in the transaction being in the nature of trade/adventure in the nature of trade; but where the object of investment in shares of a company is to derive income by way of dividend, etc., then the profits accruing by change in such investment ( by sale of shares) will yield capital gain and not revenue receipt.”
Premji Bhimji vs. CIT (1971)81ITR 179(Cal.); it has been held that “In deciding whether a venture is in nature of trade no rigid formula can be applied. The total impression must be gathered from all the relevant facts and circumstances. In a transaction of purchase and re-sale, whether the purchase is made solely and exclusively with the intention to re-sell at a profit and the purchaser has no intention of holding the property for himself or otherwise using it, the presence of such an intention is a relevant fact and unless offset raises a strong presumption that the adventure is in the nature of trade.”
Bhogilal H. Patel Vs. CIT (1969) 74 ITR 692( Bom.) it has been held that “ a person is undertaking a trade or business , or entering into an adventure in the nature of trade, it is essential that the particular transactions under scrutiny should have been entered into with the intention of earning a profit on the other hand if a person invests money in land intending to hold it, enjoys its income for some time, and then sells it at a profit, it would be a case of capital accretion and not profit derived from an adventure in the nature of trade. So intention of the person at the time of entering into transaction will be important to decide whether it is a transaction in the nature of trade or an investment.
Khan Bahadur Ahmed Alladin & Sons. Vs. CIT (1968) 68 ITR 573(SC) it was held that the answer to the question does not depend upon merely counting the number of facts and circumstances and pro and con or upon one particular fact such as original intention of the assessee or upon the application of any abstract rule, principal or formula but must depend upon the total impression and effect of all the relevant facts and circumstances established in a particular case.

Supreme Court of India in case of G. Venkataswami Naidu & Co. vs. CIT (1959) 35 ITR 594(SC) enumerate some tests to decide nature of transaction as;
1.       Was the purchase a trade and were the purchase of the commodity and its resale allied to his usual trade or business or incidental to it?

2.       What is the nature of the commodity purchased and resold and in what quantity was it purchased and resold?

3.       Did the purchaser, by any act subsequent to the purchase, improve the quality of the commodity purchased and thereby make it more readily resalable?

4.       What were the incidents associated with the purchase and resale?

5.       Were they similar to the operations usually associated with the trade or business?

6.       Are the transactions of purchase and sales repeated?

7.       In regard to the purchase of the commodity and its subsequent possession by the purchaser, does the element of pride of possession come into the picture?

8.       Whether the finance required for the purchase of the commodity has been found from the surplus funds with the assesses or whether they represent borrowed money?
The above points considered by the Supreme Court are not a conclusive to determine the nature of business or trade. All relevant points should be considered for deciding nature of transaction.
Gujarat High Court in case of CIT Vs. Rewashanker A. Kothari (2006) 283 ITR 338   held that in order to determine ,whether profit arising from sale is business income, following tests can be applied;

1.       The first test is whether the initial acquisition of the subject matter of transaction was with the intention of dealing in the item or with the view to finding an investment;

2.       The second test is why and how for what purpose the sale was effected subsequently;

3.       The third test is as to how the assessee dealt with the subject matter of transition during the time the asset was with the assessee & whether the assessee treated the asset as stock in trade or has been shown in the books of account as investment;

4.       The fourth test is how the assessee himself has returned the income from such activities and how the department has dealt with the same in the course of preceding and succeeding assessment;

5.       The fifth test ( normally applied in the case of firm or company) is in what manner the deed of Partnership or MOA as the case may be authorised the transaction;

6.       The final and most important test is as to the volume, frequency, continuity and regularity of transaction of purchase and sale of goods concerned.
While going through above judicial proceedings and considering other factors , it is essential to determine the nature of transaction by judging the intention of parties at the time of purchase or sale of assets;
The intention of person can be gathered from a number of factors;
(A) Intention behind investment; if the investment is made as an organised activity , such as by establishment of office, deployment of staff to undertake various activities , etc., and with the intention to earn profit by sale or purchase of asset , the activity will be in nature of business.
(B) Frequency and volume of transactions; more the frequency of transactions, more will be presumption that it is business transaction. If transactions are entered into regularly and continuously, then it is more likely to be treated as a business activity. The period of asset held by person, will also be considered to determined nature of transaction. If a person not regularly enters into transaction or he holds assets for a longer period and sale thereafter than the nature of transaction will raise Capital Gain.
(C)  Normal Business of the assessee;  if purchase and sale of asset is allied to the assessee’s usual trade or business or are incidental to it, it will be treated as business transaction. On the other hand if a purchase and sale is an independent activity than business of the assessee, then it in nature of investment.
(D) Intention behind sale of asset; if asset is sold in the normal course of business of the assessee or it is a routine matter for assessee then it is a business transaction. On the other hand if asset is sold to generate a fund to meet some liability then it will be treated as an investment transaction.
(E)  Mode of acquisition of asset;   if an asset has been acquired by way of partition of HUF, gift or under a will and subsequent sale of asset will result Capital Gain.
(F)  Accounting treatment in books of accounts; if an asset is shown as an Investment in the books of accounts of the assessee, and then its sale will raise Capital Gain.
(G) Other Factors;  there are some other factors, which will affect the nature of transaction such as ratio of sales or purchase and holding, the time devoted to the activity, the extent to which it is the means of livelihood and stated in the MOA in case of a Company , which have to be considered while d            determining  the nature of transaction.
Thus most important factor for characterisation of transaction as trading or investment is the intention behind it. Other factors are ancillary but there has to be a scrutiny of either all or most of all the factors and the combined effect of all of them have to be considered to characterise the transaction as business or investment. The facts of each case have also to be taken into consideration.


Important Income Tax Due Dates for the 2016-17 Financial Year

Creditts: CA Dau Daga and CA Arjun Raneja
 File has Below Important activities mentioned with their dates.

  • TDS/ TCS Payment Due Dates for the 2016-17 Financial Year
  • TDS/ TCS Return Due Dates for the 2016-17 Financial Year
  • Advance Income Tax Due Dates for the 2016-17 Financial Year
  • Income Tax Return Due Dates for the 2016-17 Financial Year
  • ROC Annual Return Due Dates for the 2016-17 Financial Year
  • Excise Payment Due Dates for the 2016-17 Financial Year
  • Excise Return ER-1 Due Dates for the 2016-17 Financial Year
  • Excise Return ER-4 Due Dates for the 2016-17 Financial Year
  • Excise Return ER-8 Due Dates for the 2016-17 Financial Year

  • Service Tax Payment IND/ Partnership Due Dates for the 2016-17 Financial Year
  • Service Tax Payment IND/ Partnership Due Dates for the 2016-17 Financial Year
  • Service Tax Return Due Dates for the 2016-17 Financial Year
  • ESI Payment Due Dates for the 2016-17 Financial Year
  • ESI Return Due Dates for the 2016-17 Financial Year
  • PF Payment Due Dates for the 2016-17 Financial Year
  • PF Return 12 Due Dates for the 2016-17 Financial Year
  • VAT Payment (General Rate)VAT Return (Last year Payment LESS than 50,000) Due Dates for the 2016-17 Financial Year
  • VAT Return (Last year Payment MORE (Last year Payment MORE than 50,000) Due Dates for the 2016-17 Financial Year
CLICK HERE / CLICK HERE All Important Income Tax Due Dates for the 2016-17 Financial Year in PDF

CLICK HERE / CLICK HERE All Important Income Tax Due Dates for the 2016-17 Financial Year in Excel

CLICK HERE / CLICK HERE All Important Income Tax Due Dates for the 2016-17 Financial Year in JPG

*Some dates can be changed. It depends on Govt.

Interest on Service Tax Delayed Payment Calculator

CALCULATOR for Interest on Service Tax Delayed Payment (w.e.f. 01.10.2014)
E.g. Format:
Turnover during the Previous Financial Year 8,14,96,170.00
Concession of 3% in rate of interest applicable or not (Provision to Section 75 of the Finance Act, 1994) NO
Service tax payable 79,351.00
Due date of payment 12-Feb-2015
Actual date of payment 10-Apr-2016
Total period of delay (in days) 423
Period of delay Rate of Simple Interest Interest for the period No. of days of delay Computation of Interest
-- -- -- -- to -- -- N.A.
-- -- -- -- to -- -- N.A.
-- -- -- to -- -- N.A. N.A.
More than 1 year for the first 6 months of delay 18% 13-02-2015 to 12-08-2015 181 7,083.00
for the period beyond 6 months up to 1 year 24% 13-08-2015 to 12-02-2016 184 9,600.00
for any delay beyond 1 year 30% 13-02-2016 to 10-04-2016 58 3,783.00 20,466.00

CLICK HERE / CLICK HERE TO DOWNLOAD Interest on Service Tax Delayed Payment Calculator in Excel format

Notes on CA Final AMA

Accounting is the language of business that communicates the financial
results of an enterprise to various stakeholders viz., investors, regulating
agencies, the management itself etc. by means of various financial
statements. Accounting is the process of identifying, measuring, recording,
classifying, summarising, analyzing, interpreting and communicating the
financial transactions and events. Accounting is classified into Financial
Accounting, Cost Accounting, Management Accounting, Tax Accounting etc.
Management Accounting deals with the application of accounting techniques
for providing information designed to help all levels of the management in
planning and controlling the activities of business enterprise and in decision
making. The objective of this branch of accounting is to provide any and /
or all information that management needs in taking a rational decision
depending on the situation and to evaluate the impact of its decisions and
actions. Management Accounting is not only confined to the areas of cost
accounting but also covers other areas such as capital expenditure decisions,
capital structure decisions, dividend decisions, investment decisions etc. as
well. Management Accounting rules are set within the company with
emphasis on future to accomplish management objectives relating to adding
value to the company. This is the data that could be soft, or estimates, that
must only improve the value of decisions more than the cost of information.
The emphasis of Management Accounting is on timeliness and focuses on
different segments of the organization and need not follow GAAP or any
prescribed format. Management accounting data must only be relevant for
management decisions in Planning, Directing, Motivating and Controlling.

How has the composition of manufacturing costs changed during recent
years? How has this change affected the design of cost accounting systems?
C A & C M A Coaching Centre, Nallakunta, Hyderabad. P V Ram, B. Sc., ACA, ACMA – 98481 85073
Score 60+ thro’ SYSTEMATIC & SMART Study Page 2 of 46
Traditionally, manufacturing companies classified the manufacturing costs to
be allocated to the products into (a) Direct materials. (b) Direct labour and
(c) Indirect manufacturing costs. In the present day context characterised
by intensive global competition, large scale automation of manufacturing
processes, computerization and real time processing of data, diversification
to suit customer needs, manufacturing costs are classified in to three broad
categories as under:
1. Direct costs: As many total costs relating to cost objects as feasible
are classified into direct costs. The objective is to trace as many costs
as possible into direct and to reduce the amount of costs classified into
indirect because the greater the proportion of direct costs the greater
the accuracy of the cost system.
2. Indirect cost pools: Increase the number of indirect cost pools so
that each of these pools is more homogeneous. In a homogeneous
cost pool, all the costs will have the same cause-and-effect
relationship with the cost allocation base.
Use cost-and-effect criterion for identifying the cost allocation base for each
indirect cost pool.
The change in the classification of manufacturing costs as above has lead to
the development of Activity Based Costing (ABC). ABC refines a costing
system by focusing on individual activities as the fundamental cost objects.
An activity is an event, task or unit of work with a specified purpose, for
example, designing, set up, etc. ABC system calculates the costs of
individual activities and assigns costs to cost objects such as products or
services on the basis of the activities consumed to produce the product or
provide the service.
TQM is a systematic process for identifying and implementing solution and
prioritise opportunities for improvement. TQM seeks to increase customer
satisfaction by finding the factors that limit current performance. The TQM
approach stresses on the need for a customer-oriented approach to
management reporting, eliminating some or more of traditional reporting
practices. The emphasis of TQM is to design and build quality in the
product, rather than allow defectives and then inspect and rectify them. The
focus is on the causes rather than the symptoms of poor quality. While
C A & C M A Coaching Centre, Nallakunta, Hyderabad. P V Ram, B. Sc., ACA, ACMA – 98481 85073
Score 60+ thro’ SYSTEMATIC & SMART Study Page 3 of 46
doing this, modern management accounting practices are put to use. It is
often viewed as a technique suitable for manufacturing processes but this is
an important tool to increase efficiency in service sector also.
Quality: It is a measure of goodness to understand how a product meets its
specifications. When the expression "quality" is used, we usually think
terms of an excellent product or service that fulfills or exceeds our
expectations. These expectations are based on the intended use and the
selling price. When a product surpasses our expectations we consider that
Costs of performing checks to ensure quality specifications are called quality
costs. These are of 4 types
a. Prevention costs,
b. Appraisal costs,
c. Internal failure costs and
d. External failure costs.
Classify the following items under appropriate categories of quality costs viz.
Prevention Costs, appraisal Cost, Internal Failure Costs and External Failure
a. Rework
b. Disposal of scrap
c. Warranty Repairs
d. Revenue loss
e. Repair to manufacturing equipment
f. Discount on defective sale
g. Raw material inspection
h. Finished product inspection
i. Establishment of quality circles
j. Packaging inspection
Prevention Costs : g, i Appraisal Costs : h, j
Internal Failure : a, b, e External Failure Costs : c, d, f.
CIMA defines ‘Total Quality Management’ as “Integrated and
comprehensive system of planning and controlling all business functions so
that products or services are produced which meet or exceed customer
expectations. TQM is a philosophy of business behaviour, embracing
principles such as employee involvement, continuous improvement at all
levels and customer focus, as well as being a collection of related techniques
aimed at improving quality such as full documentation of activities, clear
goal-setting and performance measurement from the customer perspective.”
C A & C M A Coaching Centre, Nallakunta, Hyderabad. P V Ram, B. Sc., ACA, ACMA – 98481 85073
Score 60+ thro’ SYSTEMATIC & SMART Study Page 4 of 46
TQM is composed of three important parameters:
Total: Organization wide
Quality: With its usual Definitions, with all its complexities.
Management: The system of managing with steps like Plan, Organised,
Control, Lead, Staff, etc.


Notes on Company Law for CA Final

Notes on Company Law

Points to Remember

1.     All amendments corresponding with companies act 2013 are compiled in this summary
2.     Many sections of new companies act 2013 is not notified by MCA (ministry of corporate affairs) so that sections are of old companies act 1956
3.     Wherever as per companies act written that means old companies act 1956
4.     For new companies act specifically mentioned …companies act 2013
5.     All judgement of courts are compiled in this summary
6.     All those older judgments based on old companies act 1956 which contradicts the new Companies act 2013… are not taken into consideration
7.     Comparative study of old companies act 1956 and new companies act 2013 is given Concept

Explain the Advantages and Disadvantages of Incorporation of a Company. (L)?

A company, in common parlance, means a group of persons associated together for the attainment of a common end, social or economic. It has “no strictly technical or legal meaning.”
According to sec. 3 (1) (ii) of the Companies Act, 1956 a company means a company formed and registered under the Companies Act, 1956 or any of the preceding Acts. Thus, a Company comes into existence only by registration under the Act, which can be termed as incorporation.
According to sec. 2 (20) of companies act 2013, this company this means a company incorporated under this Act or under any previous company law;

Advantages of incorporation
Incorporation offers certain advantages to a company as compared with all other kinds of business organizations. They are
1.     Independent corporate existence- the outstanding feature of a company is its independent corporate existence. By registration under the Companies Act, a company becomes vested with corporate personality, which is independent of, and distinct from its members. A company is a legal person. The decision of the House of Lords in Salomon v. Salomon & Co. Ltd. (1897 AC 22) is an authority on this principle:
One S incorporated a company to take over his personal business of manufacturing shoes and boots. The seven subscribers to the memorandum were all his family members, each taking only one share. The Board of Directors composed of S as managing director and his four sons. The business was transferred to the company at 40,000 pounds. S took 20,000 shares of 1 pound each n debentures worth 10,000 pounds. Within a year the company came to be wound up and the state if affairs was like this: Assets- 6,000 pounds; Liabilities- Debenture creditors-10,000 pounds, Unsecured creditors- 7,000 pounds.
It was argued on behalf of the unsecured creditors that, though the co was incorporated, it never had an independent existence. It was S himself trading under another name, but the House of Lords held Salomon & Co. Ltd. must be regarded as a separate person from S.
2.     Limited liability- limitation of liability is another major advantage of incorporation. The company, being a separate entity, leading its own business life, the members are not liable for its debts. The liability of members is limited by shares; each member is bound to pay the nominal value of shares held by them and his liability ends there.
3.     Perpetual succession- An incorporated company never dies. Members may come and go, but the company will go on forever. During the war all the members of a private company, while in general meeting, were killed by a bomb. But the company survived, not even a hydrogen bomb could have destroyed it (K/9 Meat Supplies (Guildford) Ltd., Re, 1966 (3) All E.R. 320).
4.     Common seal- Since a company has no physical existence, it must act through its agents and all such contracts entered into by such agents must be under the seal of the company. The common seal acts as the official seal of the company.

5.     Transferable shares- when joint stock companies were established the great object was that the shares should be capable of being easily transferred. Sec 82 gives expression to this principle by providing that “the shares or other interest of any member shall be movable property, transferable in the manner provided by the articles of the company.”
6.     Separate property- The property of an incorporated company is vested in the corporate body. The company is capable of holding and enjoying property in its own name. No members, not even all the members, can claim ownership of any asset of company’s assets.
7.     Capacity for suits - A company can sue and be sued in its own name. The names of managerial members need not be impleaded.
8.     Professional management- A company is capable of attracting professional managers. It is due to the fact that being attached to the management of the company gives them the status of business or executive class.
Disadvantages of incorporation
1.     Lifting of corporate veil- though for all purposes of law a company is regarded as a separate entity it is sometimes necessary to look at the persons behind the corporate veil.
a.     Determination of character- The House of Lords in Daimler Co Ltd. v. Continental Tyre and Rubber Co., held that a company though registered in England would assume an enemy character if the persons in de facto control of the company are residents of an enemy country.
b.     For benefit of revenue- The separate existence of a company may be disregarded when the only purpose for which it appears to have been formed is the evasion of taxes. – Sir Dinshaw Maneckjee, Re / Commissioner of Income Tax v. Meenakshi Mills Ltd.
c.      Fraud or improper conduct- In Gilford Motor Co v. Horne, a company was restrained from acting when its principal shareholder was bound by a restraint covenant and had incorporated a company only to escape the restraint.
d.     Agency or Trust or Government company- The separate existence of a company may be ignored when it is being used as an agent or trustee. In State of UP v. Renusagar Power Co, it was held that a power generating unit created by a company for its exclusive supply was not regarded as a separate entity for the purpose of excise.
e.     Under statutory provisions- The Act sometimes imposes personal liability on persons behind the veil in some instances like, where business is carried on beyond six months after the knowledge that the membership of company has gone below statutory minimum (sec 45), when contract is made by misdescribing the name of the company (sec 147), when business is carried on only to defraud creditors (sec 542). Advantages of incorporation

Under New companies Act2013---Statutory provisions are—

1.     for section 45 no new section is notified
2.     for section 147 new section is 12 i.e. Registered office of company---subsection (8) If any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees.
3.     for section 542 ..new section is 339….Liability for Fraudulent conduct of business- Sub section
1.     If in the course of the winding up of a company, it appears that any business of the company has been carried on with intent to defraud creditors of the company or any other persons or for any fraudulent purpose, the Tribunal, on the application of the Official Liquidator, or the Company Liquidator or any creditor or contributory of the company, may, if it  thinks it proper so to do, declare that any person, who is or has been a director, manager, or officer of the company or any persons who were knowingly parties to the carrying on of the business in the manner a fore said shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Tribunal may direct: Provided that on the hearing of an application under this sub-section, the Official Liquidator or the Company Liquidator, as the case may be, may himself give evidence or call witnesses.
2.     Where the Tribunal makes any such declaration, it may give such further directions as it thinks proper for the purpose of giving effect to that declaration and, in particular,—
                                                              i.            make provision for making the liability of any such person under the declaration a charge on any debt or obligation due from the company to him, or on any mortgage or charge or any interest in any mortgage or charge on any assets of the company held by or vested in him, or any person on his behalf, or any person claiming as assignee from or through the person liable or any person acting on his behalf;
                                                            ii.            make such further order as may be necessary for the purpose of enforcing any charge imposed under this sub-section.

4.     Formality and expense-Incorporation is a very expensive affair. It requires a number of formalities to be complied without has to the formation and administration of affairs.

5.      Company not a citizen - In State Trading Corporation of India. CTO, the SC held that a company though a legal person is not a citizen neither under the provisions of the Constitution nor under the Citizenship Act.

Distinction between Company and Partnership. (M)?

Ans - The principal points of distinction between a company and a partnership are:

1.     Legal status - A company is a distinct legal person. A partnership firm is not distinct from the several members who compose it.

2.     Property-In partnership, the property of the firm is the property of the members comprising it. In a company, it belongs to the company and not to the members comprising it.

3.     Mode of creation-A company comes into existence after registration under the Companies Act, 1956, while registration is not compulsory in case of a partnership firm.


Credits: Abhishek Garg

FAQs and Limitations of Secretarial Audit

FAQs on limits of Secretarial Audit
1. What is the limit for the issue of Secretarial Audit Reports for financial year 2016-17?
The Council of the Institute at its 235th meeting held on February 11, 2016 reviewed the existing limits for the issue of Secretarial Audit Reports and decided as below:
- 10 Secretarial Audits per partner/ PCS, and
- an additional limit of 5 secretarial audits per partner/PCS in case the unit is peer reviewed.
These limits will be applicable for the Secretarial Audit Reports to be issued for the financial year 2016-17 onwards.

2. To whom is the peer reviewed certificate is granted - Individual or Practicing Unit?
The peer review certificate is issued to the Peer Reviewed Practice Unit. Practice unit means, “members in practice, whether practicing individually or as a firm of Company Secretaries.” Accordingly, peer review certificate may be granted to an individual or to a firm, as the case may be.

3. What is the date on which Peer Reviewed Unit (PRU) can say, I am Peer Reviewed?
A Practice Unit (PU) is said to have been peer reviewed from the date of issue of peer review certificate by the Peer Review Board of the Institute. Accordingly, PRU can take up additional 5 Secretarial Audits on the basis of being peer reviewed, only from date of issue of the certificate.

4. What is the period for which Practice Unit is certified as PRU?
In terms of para 13 of the Guidelines for Peer Review of Attestation Services by Practicing Company Secretaries (Peer Review Guidelines), the peer review of every practice unit should be mandatory carried out at least once in a block of five years.
Accordingly, for the purposes of taking up additional five secretarial audits, the validity of peer review certificate should be five years from the date of issue of certificate.

5. How can it be identified whether a practicing unit is peer reviewed?
The list of peer reviewed practice units is available on the ICSI website at the link: www.icsi.edu/prb/ListofPeerReviewedUnits.aspx.

6. To whom is the issue of 5 additional secretarial audit reports allowed: individual partners or the practice unit as a whole (on the basis of certification of peer reviewed firm)?
The limit of 5 additional secretarial audits of Peer Reviewed Unit is to be considered as 5 secretarial audits for each individual partner, subject to overall limit of 15 secretarial audits per individual.
7A. If a person is a partner in two firms out of which one is not peer reviewed and another is peer reviewed, what should be the limit?
The limit per individual is 10 secretarial audits in each year. He may carry out 5 additional secretarial audits in respect of the firm which is peer reviewed.
7B. If the partner of peer reviewed firm is also practicing in individual capacity/ partner of another firm then whether eligibility of 5 additional Secretarial Audits can be used as a partner of peer reviewed firm or in individual capacity/partner of firm?
The additional limit of 5 secretarial audits can be used in the capacity of partner of peer reviewed firm only.
7C. Whether the answer to the above will be different if the individual is partner of another firm which is also peer reviewed?
Since, the overall limit for each individual/ partner is 15 Secretarial Audits (10 +5). The individual can utilise the additional 5 audits in the capacity of partner of any of the peer reviewed firm.

8. Can this additional limit of 5 secretarial audits be transferred from one peer reviewed firm to another firm on the basis of common partners?

9. If new partner joins a peer reviewed firm, then whether such partner be allowed for such 5 additional audits?

10. In case the firm/ individual has applied for peer review, then whether he will be eligible for additional 5 Secretarial Audits.
No, the benefit of additional 5 secretarial audits will accrue to a firm/individual only after issue of peer review certificate by the Peer Review Board.