Circulars
Goods and Services Tax GST Knowledge

What is Capital Goods?

Capital goods are normally defined as follows:-
- any goods which are capitalized for accounting purposes and in accordance with Generally Accepted Accounting Principles (GAAP) and,
- written off over several years.

The GST treatment on capital goods in Malaysia is as follows:-
(a) A supply of capital goods is standard-rated.
(b) Input tax can be claimed in full on all capital goods that are used to make wholly taxable supplies
(c) If capital goods are used solely for exempt-supply, no input tax can be claimed.
(d) Where capital goods are used for making both taxable and exempt supplies, input tax would need to be apportioned according to its proportional taxable use.
(e) Intangible assets such as trademark and goodwill are taxable supplies.
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17-March-2016
Delhi VAT: Reward Scheme to encourage market / trade association for payment of due tax

Value Added Tax is one of the major sources of revenue of the Government of Delhi which is an indirect tax collected by traders from customers on sale of goods and then deposited with the Government. In its effort to collect the due tax, the Government intends to involve market associations. With this objective in view, the Government proposes to introduce a reward scheme for the associations.

GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI

DEPARTMENT OF TRADE AND TAXES: VYAPAR BHAWAN

I.P.ESTATE, NEW DELHI02

No. F.3(552)/Policy/vat/2015/10971103

Dated:30/11/15

ORDER

Value Added Tax is one of the major sources of revenue of the Government of Delhi which is an indirect tax collected by traders from customers on sale of goods and then deposited with the Government. In its effort to collect the due tax, the Government intends to involve market associations. With this objective in view, the Government proposes to introduce a reward scheme for the associations.

 

OBJECTIVE OF THE SCHEME 

It has been decided to introduce a reward scheme to encourage market / trade association for payment of due tax. A portion of the VAT collected in addition to the target from the markets/localities shall be made available for the maintenance and upgradation of that market to foster business and trade.

SALIENT FEATURES OF THE SCHEME

Eligibility Criteria:

The market association, registered under the Society Registration Act 1861, must have at least 50 registered members to be eligible for the reward. The number of members would be frozen at the beginning of the scheme and thereafter at the end of April of each financial year. More than 50% of the members should be registered with the department. The office bearers of the association should be elected through the process of election in accordance with the constitution of the association. Not more than 5% of the registered members should have defaulted in return filing. KCS, liquor, tobacco and petroleum dealers are excluded from the ambit of this scheme.

Enrolment:

The association has to register itself online on the website of the department and upload the list of members with their TIN, Name & Address. If a dealer is a member of more than one market association, the said member can associate with only one market association. Cancelled dealers cannot participate in any association for the purpose of this scheme. Members should be from ward area only.

 

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17-December-2015
Process and Checklist For Secretarial Audit

Secretarial Audit a Governance measure that will have a positive effect on corporate entity. It is Compliance Audit system that used to carrying out auditing of compliances along with all Rules and Regulation made there under. It is a process to check compliances made by the Company under various Law, Rules, Regulation, and Procedure. APPLICABILITY OF SECRETARIAL AUDIT According to section 204 of Companies Act, 2013 and Rule 9 of Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014, company required to obtain Secretarial Audit Report from independent practicing company Secretary. a). All Listed Company b). every public Company having Paid up Share Capital of Rs 50 crore or more; or, c). every public company having a Turnover of Rs. 250 crore or more. - See more at: http://taxguru.in/company-law/process-checklist-secretarial-audit.html#sthash.B6BPSA1W.dpuf

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17-December-2015
Section 174 of Companies Act 2013- Quorum For Board Meeting

Quorum here means the minimum number of directors to be present at the board meeting in order to hold the board meeting. The provisions related to the minimum no. of directors i.e. quorum is provided u/s 174 of the companies Act 2013.

This section provides that the quorum of the board meeting should be 1/3rd of total strength or 2 directors whichever is higher. Total strength hereon shall not include directors whose place is vacant. However if the no. of continuing directors is less than the required quorum of the meeting then such continuing directors can hold a meeting only for two purposes :-

  1. To hold a general meeting of the company.
  2. To increase the number of directors to that fixed for the quorum

Any fraction in the number should be taken as 1. In case any director is attending meeting through video conferencing or other audio visual means then no. of these directors shall also be taken into consideration. This provision of minimum no. of director is applicable for both private as well as public company.

In case interested directors are present in the meeting and their no. is equal to or more than 2/3rd of the total strength of the board of directors then in that case the quorum of the meeting should be the number of remaining directors present at the meeting or two directors whichever is higher. Hereon also total strength shall not include directors whose place is vacant.

Now the question arises in our mind is what happens if the required quorum is not present at the meeting. Section 174(4) provides that in case the quorum is not present at the meeting then the board meeting cannot be held and will be adjourned to the same day same time and same place of the next week. In case that day is a public holiday, then to the next succeeding day which is not a public holiday. However the Article of the company can provide otherwise and in that case the AOA of the company will supersede this section.

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17-December-2015



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