: For Finance Professionals & Students

Impact of Krishi Kalyan Cess – Service tax


Service tax rate has been proposed to increase from 14.50% to 15% effective from 1st June 2016.It is also clear that till 1.6.2016, service tax shall continue to be levied @ 14.50% comprising of Basic 14.0% and 0.50% as Swach Bharat cess(SBC).

It is proposed to be levied on any or all the taxable services at the rate of 0.5% on the value of such taxable services.


Law cannot be interpreted broadly. It has to interpret case to case basis. It is very much clear that if the product is being manufactured for ultimate consumer and covered under provision of Legal Metrology Act and Rules, valuation of the goods shall be Under Section 4A of the Central Excise Act. But if the same product is being manufactured as a physician sample and removed for the free distribution, valuation shall not be under Section 4A of the Central Excise Act, 1944, as it is not meant for retail sale.

Analysis of MCA order on Applicability of Special Courts

MCA has issued an order on 18.05.2016 clarifying the commencement of section 2(29), sections 435 to 438 and 440 of Companies Act, 2013. Extract of these Section is as follows:-

Section 2(29) “court” means—

(i) the High Court having jurisdiction in relation to the place at which the registered office of the company concerned is situate, except to the extent to which jurisdiction has been conferred on any district court or district courts subordinate to that High Court under sub-clause (ii);

Proposed amendment to Related Party Transaction under Companies Act, 2013


1. With an objective of addressing and resolving the ‘shoe-pinching’ issues in Companies Act, 2013 (‘the Act’), the Government on 4th June, 2015, constituted 8 members’ Company Law Committee. The said Committee was headed by Secretary, Ministry of Corporate Affairs. On 1st February, 2016, Committee submitted 138-pages detailed Report and suggested 100 plus amendments to the Act. Based on the Company Law Committee Report, Government prepared the Companies (Amendment) Bill, 2016 (‘Amendment Bill’) and presented the same in Lok Sabha on 16th March, 2016. The Bill has suggested 87 amendments to the Companies Act, 2013. Such suggestion was in addition to the already issued clarifications, circulars, notifications, amendment in Company Rules, removal of difficulty orders and the Companies Amendment Act, 2015.

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