Newsletter

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THOUGHT OF THE DAY
“Don’t Give-up; the beginning is always the Hardest.”
Law Updates:
 Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha-
1. Unlisted securities and units of MF transferred between 1-4-2014 and
10-7-2014 shall be deemed to be long-term capital assets, if held for more
than 12 months.
2. LTCG on Mutual Fund Units transferred between 1-4-2014 and 10-7-
2014 shall be taxable at 10% without Indexation.
3. Determination of Arm's Length Price when more than one price is
determined by most appropriate method.
4. Taxpayers can approach Settlement Commission even for pending re-
assessment cases.
5. Resident taxpayers can approach Authority for Advance Ruling.
6. Changes aiming at strengthening Authority for Advance Rulings
('AAR').
 The Lok Sabha on Friday passed the Finance Bill, 2014 by a voice vote
with which the legislative proposals notably on direct and indirect taxes
proposed in the national budget for this fiscal can now become effective
formally.
 RBI/2014-15/147 A.P. (DIR Series) Circular No.14-Issue of Prepaid Forex
Cards- Due Diligence and Adherence to KYC norms.
PROFESSIONALS INPUTS:
 The Reserve Bank of India (RBI) has fined 12 banks, including ICICI
Bank, Axis Bank, Canara Bank and Corporation Bank, a total of Rs 1.5
crore in relation to the Deccan Chronicle Holdings Ltd (DCHL) loan
default case. This fine has been levied as a result of not following proper
procedures while lending to DCHL.
 The Competition Commission of India (CCI) has slapped fines of nearly
Rs 6,715 crore on cement firms besides penalties worth more than Rs 55
lakh was imposed in four cases related to unfair trade practices in the
pharmaceutical sector.
 After years of debate, the government has set the ball rolling on merger of
public sector banks, asking IDBI Bank and United Bank of India to
prepare a consolidation plan.
CS Rajiv Bajaj
9811453353
Bajajr66@gmail.com
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Date: 26TH July 2014

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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
[F. No. 2/ 14/2014-CL.V)
ORDER
Clause (76) of section 2 of the Act, which provides for definition of the term "related
party”, has come into force on 12th September, 2013;
And difficulties have arisen in interpreting the said clause due to the absence of the
word "relative" in sub-clause (iv), although such word has occurred in sub-clauses (i),
(ii), (iii) and (v) of the aforesaid clause (76) resulting in a disharmonious interpretation
of the said definition.
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 470 of
the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the
following Order to remove the aforesaid difficulties, namely:-
1. Short title and commencement.- (1) This Order may be called the Companies
(Removal of Difficulties) Sixth Order, 2014.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. Amendment of section 2.- In section 2 of the Companies Act, 2013, in clause (76), in
sub-clause (iv), after the word "manager", the word "or his relative" shall be inserted.