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Other Statutes

Rule 1: Short Title and Commencement

These rules are called the Maharashtra State Tax on Professions, Trades, Callings and Employments Rules, 1975, and came into force on April 1, 1975.

Rule 2: Definitions

Defines terms such as “Act”, “assessee”, “enrolment”, “employer”, and “salary/wages”.

Rule 3–5: Registration and Enrolment
  • Mandates registration for employers and enrolment for self-employed persons.
  • Online application through Form I (for employers) and Form II (for individuals).
Rule 6–10: Payment of Tax
  • Employers deduct tax from employees monthly and deposit it by the 20th of next month.
  • Professionals pay tax annually based on slab rates.
Rule 11–15: Returns and Assessments
  • Monthly/Annual return (Form III-B) for employers.
  • Provisions for self-assessment and summary assessment.
Rule 16–20: Penalties and Appeals
  • Late filing, non-payment, and non-enrolment attract penalties and interest.
  • Appeals can be filed to appellate authority under prescribed form and timelines.

Rule 1: Short Title and Commencement

Known as the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976, effective from April 1, 1976.

Rule 2: Definitions

Clarifies terms including “Act”, “Commissioner”, “employer”, and “salary”.

Rule 3–6: Enrolment and Registration
  • Form I for employer registration and Form II for individual enrolment.
  • Online portal enabled for compliance and payments.
Rule 7–10: Payment and Returns
  • Employers deduct and remit tax monthly; individuals pay yearly.
  • Returns submitted using Form V (employer) and proof of payment for others.
Rule 11–15: Penalties and Appeals
  • Penalties for late filing, failure to deduct or pay tax, and late enrolment.
  • Appeals allowed within 30 days from order date.

Rule 1: Short Title and Commencement

Came into effect from April 1, 1987 under the Andhra Pradesh Professional Tax Act.

Rule 2: Definitions

Defines “Act”, “employer”, “enrolment”, “salary”, “tax”, and other relevant terms.

Rule 3–7: Enrolment and Registration
  • Mandatory enrolment for professionals and registration for employers.
  • Uses Form I and Form II with submission to the designated authority.
Rule 8–12: Tax Deduction and Payment
  • Employers deduct tax and remit by 10th of every month.
  • Self-employed persons pay annually in lump sum.
Rule 13–17: Returns and Penalties
  • Employers must file monthly returns in prescribed format.
  • Penalties apply for delays, misreporting, or non-payment.

Rule 1: Short Title and Commencement

These rules came into force on April 1, 1979 under the West Bengal State Tax on Professions Act, 1979.

Rule 2: Definitions

Specifies key terms such as “assessee”, “salary”, “profession”, and “authority”.

Rule 3–6: Enrolment and Registration
  • Compulsory enrolment for professionals and registration for employers.
  • Form I for employer, Form II for individuals; both processes are now digital.
Rule 7–11: Returns and Payments
  • Employers file monthly returns; professionals pay annually based on notified slabs.
  • Penalty and interest for late payments.
Rule 12–15: Assessments, Inspections, and Appeals
  • Self-assessment scheme; spot inspections permitted by tax officers.
  • Appeals to appellate authority with proper documentation.

1. Short Title, Commencement and Application

These directions are known as the NBFC (Acceptance of Public Deposits) Directions, 1998. They apply to all NBFCs except those specifically exempted, and came into force on January 31, 1998.

2. Definitions

Key terms defined include "NBFC", "deposit", "public deposit", "net owned fund", "free reserves", and "credit rating". These definitions form the basis for the compliance framework.

3. Prohibition on Acceptance of Public Deposits by Certain NBFCs
  • NBFCs without minimum prescribed Net Owned Funds (NOF) and credit rating are prohibited from accepting public deposits.
  • Only investment grade-rated NBFCs with NOF ≄ â‚č200 lakh are permitted to accept public deposits, subject to RBI limits.
4. Ceiling on Acceptance of Public Deposits
  • Deposit-taking NBFCs can accept up to 1.5 times their NOF (for investment companies) or 4 times (for loan and asset finance companies) based on their credit rating.
  • RBI prescribes sector-specific ceilings.
5. Maturity and Interest Rate of Deposits
  • Minimum maturity period: 12 months; Maximum: 60 months.
  • Maximum interest rate: As prescribed by RBI (linked to prevailing RBI rates from time to time).
6. Maintenance of Liquid Assets
  • NBFCs must maintain 15% of public deposits in liquid assets (government securities, approved securities, etc.).
  • Details to be reported in the prescribed format to the RBI quarterly.
7. Disclosure Requirements
  • Every NBFC accepting public deposits must disclose credit rating, quantum of deposits, and interest rate prominently in the application form and advertisement.
  • Annual report to include a detailed statement on deposits, compliance status, and auditor’s certificate.
8. Advertisement and Solicitation of Deposits
  • Advertisements inviting deposits must be in the prescribed format and approved by the board of directors.
  • Copy of advertisement to be filed with the RBI within 30 days of publication.
9. Nomination Facility

NBFCs must provide a nomination facility to depositors for return of deposits in case of death, and record such nominations properly.

10. Return of Deposits and Repayment Obligations
  • NBFCs must repay deposits on maturity, and cannot defer payment without RBI approval.
  • In case of premature withdrawal, conditions are laid down including potential penalty on interest.
11. Prudential Norms and Reporting
  • NBFCs accepting public deposits must comply with RBI’s prudential norms on income recognition, asset classification, provisioning, and capital adequacy.
  • Periodic returns to be filed with RBI in prescribed formats (e.g., NBS-1, NBS-2, etc.).
12. Penalties and Non-Compliance

Violation of these directions can result in penal action including monetary penalties, cancellation of NBFC registration, and prosecution under the RBI Act, 1934.

13. Exemptions
  • Certain NBFCs like insurance companies, housing finance companies (regulated by NHB), and government companies may be exempt from some provisions.

NBFC and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977 – Summary
1. Short Title and Commencement

These rules are called the Non-Banking Financial Companies and Miscellaneous Non-Banking Companies (Advertisement) Rules, 1977. They came into force on the date of their publication in the Official Gazette.

2. Definitions

Defines key terms such as "NBFC", "deposit", "advertisement", and "principal officer". These definitions align with those in the Companies Act and RBI regulations.

3. Conditions for Advertisement Inviting Deposits
  • No NBFC or miscellaneous non-banking company shall invite public deposits through an advertisement unless it complies with these rules.
  • Every advertisement must be in writing and must contain full and accurate disclosures as per Rule 4.
4. Contents of Advertisement
  • Advertisement must contain:
    • Name of the company and date of incorporation.
    • Business carried on by the company and its subsidiaries (if any).
    • Total amount of deposits held on the last day of the preceding financial year.
    • Brief particulars of the management of the company.
    • Statement that the deposits are unsecured.
    • Declaration that the company complies with the Reserve Bank of India Directions relating to the acceptance of deposits.
    • Copy of the advertisement signed by an authorized director and filed with the Registrar of Companies (RoC) before publication.
5. Validity and Renewal
  • An advertisement is valid for six months from the date of publication or the date of closure of the financial year, whichever is earlier.
  • Fresh advertisements must be published after the expiry period if the company intends to continue inviting deposits.
6. Manner of Publication
  • The advertisement must be published in at least one leading English newspaper and one regional language newspaper where the company has its registered office.
7. Penalties

If a company fails to comply with the provisions of these rules, it is liable for penalties under the Companies Act, 1956, including fines and prosecution of officers in default.

8. Filing with Registrar

The company must file a copy of the advertisement with the Registrar of Companies before publication. Failure to file can result in regulatory action.

1. Short Title and Commencement

These Directions are called the Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008, and came into force on the date of publication in the Official Gazette.

2. Applicability

These directions apply to all Non-Banking Financial Companies (NBFCs), including Deposit-taking and Non-Deposit-taking NBFCs, and to statutory auditors appointed to audit such NBFCs.

3. Responsibility of Auditors
  • The statutory auditor must include specific disclosures and certifications in the audit report on the NBFC's financial statements.
  • This report must include a statement on compliance with prudential norms and regulatory directions issued by the RBI.
4. Matters to be Included in Auditor’s Report

The auditor shall report specifically on whether:

  • The company is engaged in the business of non-banking financial institution and has obtained a Certificate of Registration from RBI.
  • The company is entitled to hold such a certificate in terms of its Net Owned Funds.
  • The company has correctly classified its assets and made provisions as per RBI norms (Income Recognition, Asset Classification, and Provisioning - IRACP).
  • The company has complied with the prudential norms relating to capital adequacy, asset classification, provisioning, and exposure norms.
  • Deposits, if accepted, are within limits, and the NBFC has complied with RBI Directions applicable to deposit acceptance (if any).
  • Proper procedures have been followed for asset-liability management and credit concentration.
5. Format of Auditor’s Certificate

The auditor’s certificate must be annexed to the audit report in the specified format, confirming adherence to all directions issued by the RBI and reporting any deviations.

6. Submission to RBI
  • The auditor’s report must be submitted to the Board of Directors and, where required, to the Department of Supervision, RBI, by the NBFC.
  • Any adverse remarks must be disclosed to the RBI promptly.
7. Additional Reporting for Deposit-taking NBFCs
  • For NBFCs accepting public deposits, auditors must comment on:
    • Compliance with ceiling on deposits and rate of interest.
    • Maintenance of liquid assets.
    • Repayment practices and redressal of complaints.
8. Auditor's Duty in Case of Non-compliance

If the auditor observes any non-compliance, misstatement, or deviation from RBI Directions, they are obligated to report the matter to the RBI, in addition to disclosing it in the audit report.

9. Penal Provisions

Failure by auditors to report appropriately may attract action under Section 45MA of the RBI Act, 1934, and other applicable provisions of the Companies Act, 2013.

1. Short Title and Commencement

These rules may be called the Delhi Labour Welfare Fund Rules, 1997. They came into force on the date of their publication in the Official Gazette.

2. Definitions

Includes definitions of key terms such as "Act", "Board", "Fund", "Employee", "Employer", and "Welfare Commissioner". These align with the Delhi Labour Welfare Fund Act, 1997.

3. Contribution to the Welfare Fund
  • Every employer must contribute a prescribed amount (e.g., â‚č15) per employee per six months.
  • Each employee must also contribute a smaller share (e.g., â‚č5) every six months.
  • The Delhi Government contributes a matching share to the fund.
4. Time and Manner of Payment
  • Contributions are payable in June and December every year.
  • Payment must be made through the designated bank or treasury under the specified head of account.
5. Duties of Employers
  • Employers must maintain registers showing the number of employees and contributions paid.
  • They must submit returns in the prescribed format to the Welfare Commissioner.
6. Maintenance of Accounts
  • The Welfare Commissioner shall maintain accounts of receipts and disbursements.
  • Separate accounts shall be maintained for different types of welfare activities.
7. Meeting of the Board
  • Meetings of the Labour Welfare Board shall be held at least once every quarter.
  • Notice of meetings, quorum requirements, and voting procedures are provided under this rule.
8. Functions of the Welfare Commissioner
  • Administer the Fund and implement welfare schemes.
  • Sanction expenditure and inspect establishments to ensure compliance with the Act and Rules.
9. Welfare Schemes

The fund may be used for the welfare of labourers, including:

  • Medical facilities
  • Educational and recreational programs
  • Housing and transportation subsidies
  • Family welfare and vocational training
10. Audit and Inspection
  • The accounts of the Labour Welfare Fund shall be audited annually by the Examiner of Local Accounts or any designated authority.
  • Employers are required to permit inspection of records related to the Fund.
11. Penalty for Non-compliance

Any employer failing to comply with the provisions of the rules is liable to penalties under the Delhi Labour Welfare Fund Act, 1997, including fines and legal action.

1. Short Title and Commencement

These rules are called the Companies (Cost Records and Audit) Rules, 2014. They came into force on 30th June 2014.

2. Definitions

Defines key terms such as “Act”, “Cost Accountant”, “Cost Auditor”, “Cost Audit Report”, “Form”, “Product or Activity Group”, and “Turnover”. These definitions align with the Companies Act, 2013 and the Cost and Works Accountants Act, 1959.

3. Applicability of Cost Records

Companies engaged in specified regulated or non-regulated sectors must maintain cost records if their overall annual turnover exceeds the prescribed limits.

  • Regulated sectors: Includes sectors like petroleum, telecommunication, electricity, railways, etc.
  • Non-regulated sectors: Covers other specified goods or services such as textiles, cement, pharmaceuticals, etc.
  • Companies must maintain cost records in Form CRA-1.
4. Applicability of Cost Audit

Cost audit is applicable to companies covered under Rule 3, if:

  • Overall annual turnover from all products/services is â‚č50 crore or more; and
  • Turnover from individual product/service for which cost records are required exceeds â‚č25 crore.
  • Cost audit is to be conducted by a cost accountant in practice and report submitted in Form CRA-3.

Exemptions: Companies whose revenue is from exports only, or which operate in Special Economic Zones (SEZs), or which are engaged in job work activities, are exempt from cost audit.

5. Maintenance of Cost Records

Every company required to maintain cost records must do so regularly, in a manner that enables calculation of per-unit cost of production, cost of sales, and margin.

6. Appointment of Cost Auditor
  • To be appointed by the Board of Directors within 180 days of the commencement of the financial year.
  • The company must file Form CRA-2 with the Central Government within 30 days of appointment.
7. Submission of Cost Audit Report
  • Cost auditor shall submit the report in Form CRA-3 to the Board of Directors within 180 days of the end of the financial year.
  • The company must file the report with the Central Government in Form CRA-4 within 30 days of receiving it.
8. Compliance Responsibility

The Board of Directors is responsible for compliance with the provisions related to cost records and audit. Non-compliance may result in penalties under Section 148 of the Companies Act, 2013.

9. Forms Prescribed
  • CRA-1: Format for cost records.
  • CRA-2: Intimation of appointment of cost auditor.
  • CRA-3: Cost audit report.
  • CRA-4: Filing of cost audit report with the Central Government.

1. Short Title and Commencement

These rules are called the Baggage (Amendment) Rules, 2016. They came into force on 1st April 2016.

2. Objective of the Amendment

The amendment was made to simplify baggage rules and align duty-free allowances with current economic conditions and travel trends. It reduced the complexity of entitlements for various categories of international passengers.

3. Revised Free Allowance
  • Passengers arriving from countries other than Nepal, Bhutan, or Myanmar are eligible for a consolidated duty-free allowance.
  • Adults (staying abroad for more than 3 days): Duty-free allowance increased to â‚č50,000.
  • Children under 10 years: Allowed â‚č15,000 worth of duty-free baggage.

Previously fragmented rules for different regions (Europe, Gulf, etc.) were unified into a single allowance structure.

4. Changes for Passengers from Nepal, Bhutan, or Myanmar
  • For those arriving from Nepal, Bhutan, or Myanmar via land route – duty-free limit is restricted to â‚č15,000.
  • Passengers arriving from these countries via air route are eligible for the general â‚č50,000 allowance.
5. Gold Allowance (Unchanged by 2016 Amendment)

The amendment did not alter the allowance for import of gold. Existing rules still require:

  • Duty payment at notified rates.
  • Stay abroad for at least 6 months to avail reduced duty for gold up to certain limits.
6. Applicability to Transfer of Residence and Other Schemes

The amendment simplified only the regular free allowance under Rule 3. Other provisions like Transfer of Residence, personal effects for immigrants, and returning Indian residents remain governed by specific customs notifications.

7. Items Not Allowed Under Free Allowance

The following items are excluded from the free baggage allowance and are dutiable irrespective of value:

  • Firearms
  • Alcohol and tobacco in excess of permissible limits
  • Gold and silver (in any form)
  • Flat-panel TVs
8. Duty Payable on Excess Baggage

If the value of baggage exceeds the free allowance, the duty is levied at a flat rate of 35% + 3% Education Cess (as per the Customs Tariff Act).

9. Declaration Requirement

Passengers exceeding the free allowance must declare dutiable goods by submitting the customs declaration form at the red channel upon arrival in India.

1. Short Title and Commencement

These rules may be called the Equalisation Levy Rules, 2016. They came into force on the 1st day of June, 2016.

2. Definitions

Key definitions include:

  • “Act” – Refers to Chapter VIII of the Finance Act, 2016.
  • “Assessing Officer” – An officer authorized under Section 179 of the Finance Act.
  • “Form” – Refers to forms prescribed under these rules (Form 1, Form 3, etc.).
3. Payment of Equalisation Levy
  • The levy is to be deposited by the deductor through a challan in Form No. 1.
  • Payment must be made by the 7th day of the month following the month in which the payment to a non-resident was made or credited.
4. Statement of Specified Services (Form 1)

The assessee must file an annual statement in Form No. 1 electronically (either under digital signature or through electronic verification code) by 30th June of the financial year immediately following the year in which the specified services were provided.

5. Processing of Statement
  • The Assessing Officer shall process the statement under Section 167 of the Finance Act, 2016.
  • He may compute interest or penalty, if applicable, and determine the amount payable or refundable.
6. Notice of Demand

If any amount is determined as payable under the levy, a notice of demand is issued in Form No. 2 specifying the amount payable and due date.

7. Filing of Appeal

If aggrieved by an order of the Assessing Officer, the assessee may file an appeal to the Commissioner of Income Tax (Appeals) using Form No. 3 within 30 days of receiving the order or demand notice.

8. Mode of Filing Forms

All prescribed forms (Form 1, Form 2, and Form 3) are to be furnished electronically via the income tax e-filing portal, either using a digital signature or electronic verification code.

9. Forms Summary
  • Form 1 – Statement of specified services liable for Equalisation Levy.
  • Form 2 – Notice of demand issued by the Assessing Officer.
  • Form 3 – Form for filing appeal to Commissioner (Appeals).
10. Key Compliance Aspects
  • Equalisation Levy at 6% is levied on payments for specified digital services to non-resident service providers.
  • Applicable to Indian businesses making payments exceeding â‚č1 lakh per annum to non-residents for online advertisements and other specified services.
  • From April 1, 2020, the scope was expanded to include a 2% levy on e-commerce operators under the Finance Act, 2020.

📘 NCLT Rules, 2016 – Overview
1. Short Title and Commencement

The National Company Law Tribunal Rules, 2016 came into force on 21st July 2016 and govern procedures for proceedings before the NCLT under the Companies Act, 2013.

2. Scope and Jurisdiction
  • Applicable to all matters filed under the Companies Act and IBC before the NCLT.
  • Includes Principal Bench and Regional Benches with specific territorial jurisdiction.
3. Filing of Petitions/Applications
  • Filed using prescribed Forms (NCLT-1 to NCLT-9).
  • Must be typed in English, double-spaced, and properly paginated.
4. Hearings and Orders
  • Public hearings unless directed otherwise.
  • Tribunal may issue interim, final, or ex-parte orders.
5. Inspection, Certified Copies and Costs
  • Inspection of documents and certified copies available on request and payment of fees.
  • Tribunal may award costs or initiate contempt action for misuse of process.
6. Common Forms under NCLT
  • Form NCLT-1: Petition/Application format
  • Form NCLT-2: Affidavit in support
  • Form NCLT-6: Interim relief application
📘 NCLAT Rules, 2016 – Overview
1. Short Title and Commencement

The National Company Law Appellate Tribunal Rules, 2016 also came into force on 21st July 2016. They apply to appeals filed before NCLAT under the Companies Act and IBC.

2. Appeal Filing Procedure
  • Appeals from NCLT must be filed in Form NCLAT-1 within 45 days of the order.
  • Accompanied by certified copy of the order and affidavit (Form NCLAT-2).
3. Hearings, Orders and Representation
  • Bench presided over by Chairperson and Members.
  • Parties may appear in person or through legal representatives.
  • Daily cause list published; decorum and etiquette must be maintained.
4. Fees, Copies and Inspections
  • Filing fees are prescribed and paid via DD or electronic modes.
  • Certified copies obtainable using Form NCLAT-5.
  • Inspection of records permitted on request.
5. Common Forms under NCLAT
  • Form NCLAT-1: Memorandum of Appeal
  • Form NCLAT-2: Affidavit in support of appeal
  • Form NCLAT-5: Application for certified copy
🔍 Key Functions
  • NCLT: Handles corporate disputes, mergers, IBC cases, oppression & mismanagement, etc.
  • NCLAT: Hears appeals against NCLT orders, CCI orders, and IBBI decisions.

1. Short Title and Commencement

These rules are called the Prohibition of Benami Property Transactions Rules, 2016 and came into force on 1st November 2016.

2. Definitions

The rules define key terms like:

  • Act: Refers to the Prohibition of Benami Property Transactions Act, 1988.
  • Adjudicating Authority: The authority appointed under the Act to determine whether a property is benami.
  • Administrator: The designated officer responsible for managing confiscated benami properties.

3. Composition and Jurisdiction of the Adjudicating Authority

The Adjudicating Authority consists of a Chairperson and at least two other members. It has powers of a civil court and is responsible for:

  • Issuing notices under Section 26(1) of the Act
  • Conducting inquiry and hearing parties
  • Passing orders to confirm or revoke attachment of benami properties

4. Service of Notice

Notice under Section 26(1) must be served:

  • Personally or through registered/speed post
  • On a person’s representative if the original person is unavailable
  • By affixing on the property or in a newspaper, if other methods fail

5. Manner of Holding Inquiry
  • The Adjudicating Authority holds hearings and allows the person to respond.
  • Opportunity is given to explain the source of funds, ownership, or transaction.
  • The Authority records reasons before confirming or revoking the provisional attachment.
6. Confiscation of Benami Property

Once the order of attachment is confirmed, the benami property shall stand confiscated to the Central Government.

7. Role of Administrator

The Administrator is responsible for managing, preserving, and disposing of the confiscated benami properties under direction of the Central Government.

8. Maintenance of Registers

The Administrator must maintain a register of:

  • Properties under provisional attachment
  • Confiscated properties
  • Disposals and revenue realized

9. Appeal and Further Proceedings

An appeal against the order of the Adjudicating Authority lies with the Appellate Tribunal within 45 days. The Tribunal follows procedures as laid out in the Act.

🔍 Key Purpose of the Rules
  • Provide procedural clarity for handling benami transactions.
  • Ensure fair inquiry, confiscation, and management of benami properties.
  • Support the implementation of the amended Benami Act, 2016.

1. Application to Adjudicating Authority Rules, 2016

These rules govern the procedure for initiation of the corporate insolvency resolution process (CIRP) by:

  • Financial Creditors – Form 1
  • Operational Creditors – Form 5
  • Corporate Debtors themselves – Form 6

Filed before the National Company Law Tribunal (NCLT) as the Adjudicating Authority.

2. Insolvency Resolution Process for Corporate Persons
  • Detailed procedure for appointment of Interim Resolution Professional (IRP)
  • Conduct of Committee of Creditors (CoC)
  • Preparation and submission of Resolution Plan
3. Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms
  • Rules for Fresh Start Process, Insolvency Resolution, and Bankruptcy for individuals
  • Forms I to P prescribed for different stages
  • Application to be filed before the Debt Recovery Tribunal (DRT)
4. Information Utilities Regulations

Defines the manner of submitting financial information to information utilities (e.g., NeSL), registration process, and user access.

5. Liquidation Process Rules

Applicable when resolution fails. These rules prescribe:

  • Appointment and powers of Liquidator
  • Asset valuation, sale, and distribution hierarchy
  • Filing of Final Report and Dissolution Application

6. Fast Track Insolvency Rules

Provides a faster insolvency process (90-day limit) for:

  • Small companies
  • Startups (as per Companies Act)
  • Unlisted companies with assets or income below prescribed thresholds

7. Voluntary Liquidation Rules
  • Allows solvent companies to wind up voluntarily
  • Requires declaration of solvency, creditors’ consent, and public announcement
  • Process must follow due liquidation hierarchy
8. IBBI (Model Bye-laws and Governing Board of Insolvency Professional Agencies) Regulations
  • Defines structure, membership rules, and conduct for Insolvency Professional Agencies (IPAs)
  • Governs the functioning of professional bodies registered with IBBI
🔍 Key Forms under IBC Rules
  • Form 1: Application by Financial Creditor
  • Form 5: Application by Operational Creditor
  • Form 6: Application by Corporate Debtor
  • Form A to P: Forms for individuals and partnerships