MCA requires companies to make one time disclosure of all loans that are not deposits
The Ministry of Corporate Affairs (“MCA”) issued a notification (“Notification”) where every company except a government company will need to make a one time disclosure of all loans it has received prior to March 31, 2019 that are not deposits as per the Companies (Acceptance of Deposit) Rules, 2014 (“Deposit Rules”) in the format prescribed in Form DPT-3. Companies will need to file Form DPT-3 within 90 days from the date on which the Notification was issued (i.e. April 12, 2019).
The Notification does not introduce a new concept but rather amends a previous notification (“Previous Notification”) introduced by the MCA that required companies to make a one time disclosure for all loans it had received prior to January 22, 2019 that were not deposits.
Quick View:
- Although the Notification does not amend the Deposit Rules but merely amends the Previous Notification, it will still affect companies and their operations as they will now need to provide details of loans it has received between January 22, 2019 and March 31, 2019.
- However, the Notification is silent on whether entities that have already submitted Form DPT-3 prior to the Notification will need to re-file Form DPT-3. For example, if a company has filed Form DPT-3 on April 02, 2019 specifying all the outstanding loans it has received prior to January 22, 2019 as was required by the Previous Notification, will the company need to refile Form DPT-3 now specifying the loans it has outstanding till March 31, 2019.
Delhi HC issues injunction not only on websites, but also against similar ‘mirror’ websites for copyright infringement
In what may be considered as a landmark judgement in the field of copyright law, the Delhi High Court (“Delhi HC”), for the first time in India, passed a dynamic injunction in the case of UTV Software Communications Ltd and Ors (“UTV”)v. 1337X.TO and Ors. (“1377X.To”).
A dynamic injunction, in this case, means that right holders do not need to go through the process of obtaining a judicial order for blocking mirror websites of websites that have been found guilty of copyright infringement. Rather, the right holders merely have to approach the Joint Registrar of the Delhi High Court to extend the injunction to such mirror websites.
Mirror websites are mirrors or replicas of other websites. Such mirror websites will have a different URL but is identical in every other way.
Quick View:
- The Delhi HC judgement will be welcome by copyright holders across the country. By introducing the concept of dynamic injunctions, the Delhi HC has ensured that copyright holders will be able to enforce their rights faster and at the same time, will reduce the burden on the court. Otherwise, the Delhi HC would need to hear every case for blocking mirror websites.
- We anticipate that if the principle of dynamic injunction is adopted by more high courts, it will go a long way in reducing online copyright infringement.
Majority of all start-ups have received angel tax relief from the DPIIT and CBDT
In what will be a major step to increase confidence in the start-up ecosystem in India, it has been reported that the Department of The Department for Promotion of Industry and Internal Trade (“DPIIT”) and the Central Board for Direct Tax (“CBDT”) has provided angel tax exemption certificates to 277 our of the 303 start-ups that had filed for angel tax exemption.
Section 56(2)(viib) of the Income Tax Act, 1961, imposes a tax when a company issues shares a price that is higher than its fair market value, more commonly referred to as angel tax. The difference is treated as income from other sources. In order to ensure that start-ups are not impacted by this, the DPIIT issued a notification on February 19, 2019 (“Notification”) whereby start-ups will not be liable to pay angel tax if:
- The start-up is recognized by the DPIIT;
- If the paid-up share capital of the start-up is lesser than ₹ 25 Crores; and
- If the start-up issues a declaration stating that it will not utilize any of the funds it has received for the acquisition of assets prohibited by the Notification.
Quick View:
- This is a welcome move taken by the DPIIT and the CBDT. We only hope that the DPIIT and the CBDT continue to expedite the process of issuing exemption certificates to start-ups so as to ensure that the start-up eco-system continuously grows.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.