General Points on ICDS:

• ICDS was made applicable from FY 2016-17 (i.e. A.Y 2017-18) as per Notification S.O.892(E) dated 31.03.2015
• However, It is not for the purpose of maintenance of books of accounts.

Applicability:

• To those Assesses who are maintaining Books of Accounts under Mercantile system.
• Having Income under head Profits and Gains of Business or Profession and Income from Other Sources.

  Read more: ICDS II - Valuation of Inventories

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External Commercial Borrowings (ECB) Policy – Liberalisation

1. Liberal procedures for Oil Marketing Companies (OMCs):

Under the existing policy, ECB can be raised under Track I and III for working capital purposes from direct and indirect equity holders or from a group company with a minimum average maturity of 5 years. It has been decided, in consultation with the Government of India, to liberalise the provisions and permit public sector OMCs to raise ECB for working capital purposes with minimum average maturity period of 3 or 5 years from all recognized lenders under the automatic route.

Further, the individual limit of USD 750 million or equivalent and mandatory hedging requirements as per the ECB framework have also been waived for borrowings under this dispensation. However, OMCs should have a Board approved forex mark to market procedure and prudent risk management policy for ECBs referred above.

The overall ceiling for such ECBs shall be USD 10 billion equivalent and the said facility will come into effect from the date of this Circular.

For more details, refer Notification No. RBI/2018-2019/54, A.P. (DIR Series) Circular No. 10 dated 3^rd October, 2018.

Read more: FEMA Updates for the month of October 2018

Introduction:

Foreign Investment in to India comprises of both direct foreign investment from non-residents and indirect investments through resident Indian entities having such direct foreign investment. Indirect Foreign Investment is often referred to as “Downstream Investment (DI)” under FEMA.

Read more: Downstream Investment Under FEMA

MCA UPDATES RULES, CIRCULARS, NOTIFICATIONS AND ORDERS ISSUED  DURING THE MONTH OF OCTOBER, 2018 

RULES

No Rules were issued during the month.

NOTIFICATIONS

• Constitution of National Financial Reporting Authority (NFRA), Dt: 01.10.2018. 

Vide the said Notification, the Central Government has appointed  the 1^st October 2018 as the date of constitution of National Financial Reporting Authority (NFRA). 

http://www.mca.gov.in/Ministry/pdf/ConstitutionNotificationNFRA_04102018.pdf 

Read more: Company law updates for the month of October 2018