Fund raising of capital under Companies Act, 2013

Fund raising of capital under Companies Act, 2013

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nder Companies Act, 2013 A company can raise funds via 3 means:-

1) Deposits.

2) Loans.

3) Capital.

Under Companies Act 2013, A Private Limited Company can raise funds via Capital in 2 Ways :-

1) Private Placement/ Preferential Allotment.

2) Right Issue/preferential Allotment.

PRIVATE PLACEMENT.

Issuing shares to a select group of people like friends & family, angels or VC?

Brace up, the new Companies Act 2013, provides for lengthy compliance procedures.

Unlike before, even a private limited company has to follow the processes for private placement of securities. Securities means equity shares, preference shares and debentures, convertible instruments, redeemable instruments.

"Private Placement" means any offer of securities or invitation to subscribe securities (equity or securities that convert to equity) to a select group of persons by a company, other than by way of public offer, through issue of a private placement offer letter. (Section 42 of Companies Act 2013 and Rule 14 under Companies (Prospectus and Allotment of Securities) Rules 2014)

These guidelines are applicable if the offer is made to a person who is currently not an equity shareholder in the company. 

KEY CONDITIONS

A) An offer can be made under a Private Placement Offer Letter to not more than 200 people

Not just the limitation of allotment to 200 people but even an invitation to subscribe cannot be made to more than 200 people.

The 200 people limit excludes Qualified Institutional Buyers and Employees. 

VARIOUS KNOW HOW TO OFFER LETTER

1) Offer letter in PAS 4 + application form serial numbered + addressed to specific person – to be sent in writing or electronic mode.

2) While passing special resolution – basis or justification of pricing (including premium) to be made in explanatory statement.

3) Offer per person cannot be for less than Rs. 20,000

A person cannot apply for shares of Less than Rs 20,000 Face Value.

4) Payment to be made from bank A/c of person subscribing.

5) Company to keep record of such Bank A/c.

6) To maintain complete record in PAS – 5 and PAS 4 to be filed with ROC

WHAT OFFER LETTER SHOULD CONTAIN

1) Business carried out by Co & subsidiaries.

2) Management's perception of risk factors.

3) Details of default including interest – statutory dues, deposit, loan, etc.

4) Time schedule for which offer is valid.

5) Price of offer and its justification.

6) Name & Address of the valuer who did valuation.

7) Purpose and object of offer.

8) Contribution by promoters or directors.

9) Disclosure of interest of director, promoter or KMP.

10) Details of litigation pending.

11) Remuneration of directors for current + last 3 yrs.

12) Related party transaction for last 3 years relating to loans, guarantee or securities.

13) Auditors' reservations or qualifications or adverse remarks for last 5 years – its impact on FS & corrective action taken / proposed for each comment.

14) Material frauds last 3 years

Financial position –

1) Capital structure before & after;

2) Profit before & after tax for 3 years

3) Dividend last 3 years

4) Interest coverage ratio for last three years (Cash profit after tax plus interest paid/interest paid).

5) Summary of financial position including Cash Flows – last 3 years – audited

6) Change in accounting policies in last 3 years and its effect on profits & Reserves.

7) Declaration by director of compliance.

B) The money so received shall be kept in a separate bank account of the company and utilized only for allotment (or repayment).

KEY POINTS UNDER THIS

1) On allotment file PAS -3 in 30 days.

2) Detail to include PAN & e-mail id of each member to whom share allotted.

3) Share Allotment cannot be in cash now.

4) If not followed – Penalty of amount involved or 2 Cr, whichever is high+ to refund the money.

5) Effective from 01.04.2014.

6) Share to be allotted within 60 days of receipt of allotment money.

PROCEDURE FOR PRIVATE PLACEMENT

1. Check Provision in Article regarding Private Placement.

2. Call Board Meeting:

• To Prepare Offer Letter

• Make Proposal for Private Placement

• Prepare list of persons to whom option will be given

• Call EGM

3. Call EGM:

• Pass SR- will be valid for 12 month

• If not completed PP in 12 Month pass another SR

• Approve Draft Offer Letter by SR

4. File MGT-14 with ROC

Attachments:-

Notice of EGM

CTC of SR

Minutes

5. Issue offer letter in PAS-4 within 30 days of record of name of persons:

• Application form serially numbered

• Address to the persons to whom the offer is made

6. Prepare complete record of Private Placement in PAS-5

7. File PAS-4 + PAS-5 with ROC within 30 days of issue of offer letter in GNL-2

8. Make Allotment of shares within 60 days of receipt of Money from the persons to whom right was given.

9. Called BM for allotment of shares

10. File PAS-3 with Roc within 30 days if Allotment. Attachments: – List of Allottees – BR for allotment of share.

11. File Form MGT-14 along with Resolution pass in Board meeting for allotment of shares.

12. Issue Share Certificates.

RIGHT ISSUE/ PREFRENTIAL ALLOTMENT

Preferential Offer means an issue of shares or other securities, by a Company to any select person or group of persons on a preferential basis and does not include shares or other securities offered through a public issue, rights issue, employee stock option scheme, employee stock purchase scheme or an issue of sweat equity shares or bonus shares or depository receipts issued in a country outside India or foreign securities.

Essentials:

• For a pro-rata issuance of equity and securities converting into equity, to current equity shareholders in the company, then the shareholders of the company has to approve through a special resolution, at least 3 days prior to such offer. The Articles of Association has to have an enabling provision.

• The price for the security offered has to be supported by a valuation report by a  Registered Valuer.

– The validity for such Special resolution is 12 months, within which the company has to complete the allotments.

– The securities allotted has to be fully paid-up (i.e. it cannot be partly-paid for).

• When obtaining the shareholder approval, the below details has to be decided and included in the disclosures:

–  the objects of the issue;

• the total number of shares or other securities to be issued;

• the price or price band at/within which the allotment is proposed;

– basis on which the price has been arrived at along with report of the registered valuer;

– relevant date with reference to which the price has been arrived at;

• the class or classes of persons to whom the allotment is proposed to be made;

– intention of promoters, directors or key managerial personnel to subscribe to the offer;

• the proposed time within which the allotment shall be completed;

• the names of the proposed allottees and the percentage of post preferential offer capital that may be held by them;

• the change in control, if any, in the company that would occur consequent to the preferential offer;

• the number of persons to whom allotment on preferential basis have already been made during the year, in terms of number of securities as well as price;

• the justification for the allotment proposed to be made for consideration other than cash together with valuation report of the registered valuer.

– The pre issue and post issue shareholding pattern of the company.

PROCEDURE FOR PREFRENTIAL ALLOTMENT

a. Check Provision in Article regarding Preferential Allotment

b. Call Board Meeting:

• To Prepare Offer Letter

• Make Proposal for Preferential Allotment

• Prepare list of persons to whom option will be given

• Call EGM

c. Call EGM:

• Pass SR- will be valid for 12 month

• If not completed PP in 12 Month pass another SR

• Approve Draft Offer Letter by SR

d. File MGT-14 with ROC

Attachments:-

Notice of EGM

CTC of SR

Minutes

e Issue offer letter in PAS-4 within 30 days of record of name of persons:

• Application form serially numbered

• Address to the persons to whom the offer is made

f. Prepare complete record of Preferential Placement in PAS-5

g. File PAS-4 + PAS-5 with ROC within 30 days of issue of offer letter in GNL-2

h. Make Allotment of shares within 60 days of receipt of Money from the persons to whom right was given.

i. Called BM for allotment of shares

j. File PAS-3 with Roc within 30 days if Allotment. Attachments: – List of Allottees – BR for allotment of share

k. File Form MGT-14 along with Resolution pass in Board meeting for allotment of shares.

l. Issue Share Certificate

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Changes in depreciation under new Companies Act, 2013

Changes in depreciation under new Companies Act, 2013

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With new Companies Act 2013 round the corner and vigorous environment of analysis going on as to its impact on financial statements of the company,here is the analysis of one of the most vital elements, a non cash expenditure that impacts profitability and tax outgo of companies. Yes! Depreciation is being talked about here. Although several changes are there in the new Companies Act in respect of this topic but here is the major one.

Government has kept in mind a flaw in previous Companies Act 1956 that several assets do not have useful life as prescribed in the old schedule like, 14 years for some office equipments. As a rectified measure, Schedule II of new Companies Act 2013,which came into effect on April 1 this year, has prescribed useful lives,that are more realistic and practical, for companies to depreciate their assets.Not only that but companies have been given liberty too to exceed the limit of useful life prescribed in the new companies act, thereby enabling them to use higher useful life as long as reasonable justification for the same is provided and same shall have to be disclosed in the notes to accounts.

Depreciation = Cost of Asset – Residual life

                                   Useful Life

Residual life of an asset cannot be more than 5% of the cost of the asset.

On general insight, changes in the depreciation under new act will have a negative impact on the profitability of the company as the new act provides shorter useful life, meaning higher depreciation and depreciation being an expense will reduce the profit. However, companies can reduce the negative impact of such rate if it can show justification for using higher useful life as provided by the new act. Example: Useful life of plant and equipment has come down from 21 years to 15 years. Companies, normally manufacturing companies, in case estimate higher useful life of plant can charge depreciation on such higher period if they can provide justification, fairly, of their estimate.

Beauty of the new act is that flexibility provided in it can help to neutralise the negative impact caused by reducing the useful life of asset in right cases.

However, some industries will witness positive effect of the change prescribed in the new Companies Act. Power generation and distribution companies can now take into account 40 years as useful life as opposed to 21 years as was prescribed by old act while non ferrous industries too can have 30-40 useful life for their equipments. Heavy industries like oil and gas refinery, power companies are among other industries that will taste the positive changes of the act.

Although new act tries to overcome the limitations of old act, there are still some challenges for the government that are required to be met. Rates of depreciation as per new rules are still not in alignment with the rates prescribed by the Income Tax Act 1961, as depreciation under Companies Act is calculated on the basis of useful life of an asset. Companies will have to put extra effort in preparing financial statements keeping in mind both the laws. Alignment in the rates of the two laws could have eased the pressure on the companies and companies could have used that saved effort in more productive activities.

With new act trying to fix the minor loopholes and flaws of the previous act, its real impact will be seen and experienced once it gets implemented at large scale. It has to be seen how effectively companies play to reduce the negative impact and gain from the positives of the act.

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Related Party Transaction - Under Companies Act 2013

Related Party Transaction - Under Companies Act 2013

Meaning of related party:

Section 2(76) of the Companies Act, 2013 ("the Act") defines the word"related party":

i. a director or his relative;

ii. a key managerial personnel or his relative;

iii. a firm, in which a director, manager or his relative is a partner;

iv. a private company in which a director or manager is a member or director;

v. a public company in which a director or manager is a director OR holds along with his relatives, more than two per cent. of its paid-up share capital;

vi. anybody corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager;

vii. any person on whose advice, directions or instructions a director or manager is accustomed to act:

Provided that nothing in sub-clauses (vi) and (vii) shall apply to the advice,directions or instructions given in a professional capacity;

viii. any company which is—

(A) a holding, subsidiary or an associate company of such company; or

(B) a subsidiary of a holding company to which it is also a subsidiary;

ix. such other person as may be prescribed;

For the purposes of sub-clause (ix) a director or key managerialpersonnel of the holding company or his relative with reference to a company, shall be deemed to be a related party – Rule 3 of Companies (Specification of definitions details) Rules, 2014.

Ministry of Corporate Affairs issued the Companies (Removal of Difficulties) Fifth Order, 2014 dated 9th July, 2014 and clarified that the word "OR" in sub-clause (v) has appeared inadvertently and therefore defeating the intention of this clause. The word "AND shall be substituted for the word "OR".

Now, MCA issued Companies (Removal of Difficulties) Sixth Order, 2014 dated 24th July, 2014 and clarified that in sub-clause (iv)after the word "manager" the word "or his relative" shall be inserted.

Nature of transaction:

The Companies Act, 2013 widened the scope of related party transaction. Companies Act, 1956covered only purchase or sale of goods or supply of services and subscription of any shares or debentures of thecompany under the related party transaction. However, Companies Act, 2013 has brought immovable properties and leasing of propertyalso under the ambit of related party transaction. 

Approval of Board of directors:

Section 188(1) of the Actprovides that except with the consent of the Board of Directors given by a resolution at aMeeting of the Board and subject to such conditions as may be prescribed, no company shallenter into any contract or arrangement with a related party with respect to—

a. sale, purchase or supply of any goods or materials;

b. selling or otherwise disposing of, or buying, property of any kind;

c. leasing of property of any kind;

d. availing or rendering of any services;

e. appointment of any agent for purchase or sale of goods, materials, services or property;

f. such related party's appointment to any office or place of profit in the company, its subsidiary company or associate company; and

g. Underwriting the subscription of any securities or derivatives thereof, of the company.

The agenda of the Board meeting at which the resolution is proposed to be moved shall disclose-

a. the name of the related party and nature of relationship;

b. the nature, duration of the contract and particulars of the contract or arrangement;

c. the material terms of the contract or arrangement including the value, if any;

d. any advance paid or received for the contract or arrangement, if any;

e. the manner of determining the pricing and other commercial terms, both included as part of contract and not considered as part of the contract;

f. whether all factors relevant to the contract have been considered, if not, the details of factors not considered with the rationale for not considering those factors; and

g. any other information relevant or important for the Board to take a decision on the proposed transaction.

Where any director is interested in any contract or arrangement with a related party, such director shall not bepresent at the meeting during discussions on the subject matter of the resolution relating to such contract or arrangement.

Approval of the company by a special resolution:

i. A company having a paid-up share capital of rupees one croreor more shall not enter into a contract or arrangement withany related party except with the prior approval of the company by aspecial resolution.

ii. A company shall not enter into a transaction or transactions, where the transaction or transactions to be enteredinto—

a. as contracts or arrangements with respect to clauses (a) to (e) of sub-section (1) of section 188 with criteria, as mentioned below—

i. sale, purchase or supply of any goods or materials exceeding twentyfive percentof the annual turnover;

ii. selling or otherwise disposing of, or buying, property of any kind exceeding ten percent of net worth;

iii. leasing of property of any kind exceeding ten percent of the net worth or exceeding ten percent of turnover;

iv. availing or rendering of any services exceeding ten percent of thenet worth.

(b) appointment to any office or place of profit in the company, its subsidiary company or associate company at amonthly remuneration exceeding two and half lakh rupees or

(c) remuneration for underwriting the subscription of any securities or derivatives thereof of the companyexceeding one percent of the net worth.

In case of wholly owned subsidiary, the special resolution passed by the holding company shall be sufficientfor the purpose of entering into the transactions between wholly owned subsidiary and holding company.

No member of the company shall vote on such special resolution, if he is a related party, to approve any contract or arrangement which may be entered into by the company.

MCA vide circular no 30/2014 dated 17th July, 2014 clarified that word "related party" referred to in the second proviso has to be construed with reference only to the contract or arrangement for which the said special resolution is being passed.

MCA also clarified that contracts entered into by companies, after making necessary compliances under Section 297 of the Companies Act, 1956, which already came into effect before the commencement of Section 188 of the Companies Act, 2013, will not require fresh approval under the said section 188 till the expiry of the original term of such contracts. Thus, if any modification in such contract is made on or after 1st April, 2014, the requirements under section 188 will have to be complied with.

Transactions entered into by the company in its ordinary course of business andundertakenat an arm's length basis do not need any prior approval.

The word "ordinary course of business" is not defined in the Companies Act, 2013 or Rules made thereunder.

No specific criteria have been provided in the Act whether the transaction is in ordinary course or not.  Whether the transactionentered is ordinary course of business or not willdepend on the particular business activity of the company. Transaction in ordinary course of business will cover the usual transactions of a business and of a company.

One should consider variety of factors to determine whether the transaction is in ordinary course or not like size, volume, frequency, purpose of transaction etc.

Arm's length transaction meaning:

Arm's length transaction means a transaction between two related parties which is conducted as if they are unrelated, so that there is no conflict of interest.

If a transaction fulfills both the criteria no approval will be required under section 188 of the Act.

Disclosures:

Every contract or arrangement entered into under sub-section (1) of the Act shall be referredto in the Board's report to the shareholders along with the justification for entering into suchcontract or arrangement.

Applicability:

Section 188 of the Act is applicable to all kinds of companies whether private or public.

MCA issued a draft letter for public comments on 24thJune, 2014 to give certain exemptions to private limited companies. Ministry proposed to give exemption to private companies under section 188 of the Act.

The notification placed on parliament does not five full exemptions to private companies but it gives exemption to private companies with some riders.

Consequences of contravention:

Where any contract or arrangement is entered into by a director or any otheremployee, without obtaining the consent of the Board or approval by a special resolution inthe general meeting-

- and if it is not ratified by the Board; or

- by the shareholders at a meeting within three months from the date on which such contract or arrangement was entered:

such contract or arrangement shall be voidable atthe option of the Board and if the contract or arrangement is with a related party to anydirector, or is authorised by any other director, the directors concerned shall indemnify thecompany against any loss incurred by it – Section 188(3).

Recovery of loss:

It shall be open to thecompany to proceed against a director or any other employee who had entered into suchcontract or arrangement in contravention of the provisions of this section for recovery ofany loss sustained by it as a result of such contract or arrangement - Section 188(4).

Penal Provisions:

Any director or any other employee of a company, who had entered into or authorized the contract or arrangement in violation of the provisions of this section shall,—

 i. in case of listed company, be punishable with imprisonment uptoone year or with fine not less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both; and

ii. in case of any other company, be punishable with fine not less than twenty-five thousand rupees but which may extend to five lakh rupees.

Central Government approval:

The Companies Act, 2013 has removed central government approvals for related party transaction which was mandatory under the 1956 Act for companies having paid-up share capital of rupeesone crore or more.

Related Party Transaction Under the Listing Agreement:

Clause 49 of the listing agreement defines the word related party in wider term than the Companies Act, 2013.

Clause 49 defines related party as –

A 'related party' is a person or entity that is related to the company. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party, directly or indirectly, in making financial and/or operating decisions and includes the following:

1.  A person or a close member of that person's family is related to a company if that person:

a. is a related party under Section 2(76) of the Companies Act, 2013;or

b. has control or joint control or significant influence over the company; or

c. is a key management personnel of the company or of a parent of the company; or

2. An entity is related to a company if any of the following conditions applies:

a. The entity is a related party under Section 2(76) of the Companies Act, 2013; or

b. The entity and the company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); or

c. One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); or

d. Both entities are joint ventures of the same third party; or

e. One entity is a joint venture of a third entity and the other entity is an associate of the third entity; or

f. The entity is a post-employment benefit plan for the benefit of employees of either the company or an entity related to the company. If the company is itself such a plan, the sponsoring employers are also related to the company; or

g. The entity is controlled or jointly controlled by a person identified in (1).

A person identified in (1)(b) has significant influence over the entity (or of a parent of the entity); or

The company shall formulate a policy on materiality of related party transactions and also on dealing with Related Party Transactions.

All Related Party Transactions shall require PRIOR approval of the Audit Committee.

All material Related Party Transactions shall require approval of the shareholders through special resolution and the related parties shall abstain from voting on such resolutions.

A transaction with a related party shall be considered material if the transaction / transactions to be entered into individually or taken together with previous transactions during a financial year, exceeds five percent of the annual turnover or twenty percent of the net worth of the company as per the last audited financial statements of the company, whichever is higher.

Disclosures:

Details of all material transactions with related parties shall be disclosed quarterly along with the compliance report on corporate governance.

The company shall disclose the policy on dealing with Related Party Transactions on its website and also in the Annual Report.

Penal Provisions:

The Companies Act, 2013 provides penalty for violation in case of listed companies imprisonment upto one year or with fine not less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both.

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Applicability & procedure of service tax under reverse charge .

Applicability & procedure of service tax under reverse charge

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Applicability & procedure of service tax under reverse charge

1. Introduced in the Finance Act, 1994 under Service Tax Rules in 2002.

2. An explanation to Section 65(105) was added wherein concept of import of services was launched.

3. This explanation to Section 65(105) was removed in year 2006 and Section 66A was inserted.

4. Rule 2(1)(d) of the Service tax rules, 1994 prescribed the cases of deemed service providers.

5. Notification no. 15/2012-ST dated 17.3.2012 has been issued, Applicable from 01.04.2012 – Supersession Notification no. 36/2014

6. Notification No. 30/2012-Service Tax , applicable from 01.07.2012 supersession, Notification no. 15/2012, & 36/2014

7. Supply of manpower and security services added by notification 45-46, dated 07.08.2012

8. Service by director of a company to the said company  added by notification 46-47, dated 07.08.2012

9. Service by director to Body Corporate  added by notification 46-47, dated 07.08.2012

10. Service by Recovery Agent to Bank, Financial Institution and NBFC

Key Points

1. Further service receiver can not claim general exemption limit of 10 Lakh rupees. So he has to pay even on few rupees of service received.

2. In case of associates enterprises point of taxation will be earlier of date of debit of invoice in books or date of payment

3. As per Rule 7 point of taxation will be date of payment.

4. If payment is not made within 6 months (3 months from 01.10.2014) of the date of Invoice, Rule-7 is not applicable. The point of taxation will be determined as per general rule. ( i.e. Rule 3 point of taxation will be earlier of three event i.e. raising of invoice, providing of service or receipt of payment)

5. For the purpose of import of services, separate rules namely "Place of Provision of Services Rules, 2012" have been framed.

6. Three services have been notified for which both service recipient and service provider i.e. partial reverse charge mechanism, have been made liable for paying the service tax (a) Hiring of motor vehicle for passengers( without abatement) (b) Supply of Manpower and security services (c) Works contract

7. Service tax payable under reverse charge cannot adjust with input credit of services.

8. CENVAT credit shall be available only after the payment of value of service and service tax to the service provider. From 11.07.2014 CENVAT Credit of service tax paid under full reverse charge shall be available to the assessee immediately on payment of such service tax even if no payment has been made to service provider however under partial reverse charge, cenvat credit shall be available only after the payment of value of service and service tax to the service provider.

9. Service recipient is allowed to take the credit of the service tax paid by him under reverse charge method on the basis of challan. For this purpose, rule 9(1)(e) is being amended.

List of Services under Reverse Charges

Sl.No.	Description of a service	Percentage of  service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
1	services  provided or agreed to be provided  by an insurance agent to any person carrying on insurance business	Nil	100%
2	services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road	Nil	100%
3	services  provided or agreed to be provided  by way of sponsorship	Nil	100%
4	services  provided or agreed to be provided  by an arbitral tribunal	Nil	100%
5	services  provided or agreed to be provided  by individual advocate	Nil	100%
6	services  provided or agreed to be provided  by way of support service by Government or local authority	Nil	100%
7	(a)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger (With abatement) b)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value. (Without Abatement) From 11.07.2014 change in Without Abatement Scheme	NIL 60% 50%	100% 40% 50%
8	services  provided or agreed to be provided  by way of works contract	50%	50%
9	any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory(IMPORT OF SERVICES)	Nil	100%
10	Service provided or agreed to be provided by way of Supply of manpower and security services (Inserted through notification 45-46/2012 dated  07.08.2012	25%	75%
11	Service provided or agreed to be provided by adirector of a company to the said company (Inserted through notification 46-47/2012 dated 07.08.2012	Nil	100%
12	Service Provided by Recovery Agent to banking company or a financial institution or a non-banking financial company  (Applicable from 11.07.2014)	NIL	100%
13	Service provided or agreed to be provided by adirector to Body Corporate (Applicable from 11.07.2014)	NIL	100%

The reverse charge is applicable if service receiver /service provider satisfy few condition .In other case service provider has to pay tax on full amount of service

Sl.No.	Description of a service	SERVICE PROVIDER	SERVICE RECIVER
1	services  provided by an insurance agent to any person carrying on insurance business	ANY	ANY
2	services  provided or agreed to be   provided  by a goods transport agency in respect   of transportation  of goods by road	where the consignor or the consignee  is,—                           (a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);                                             (b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;                                   (c)  any co-operative society established by or under any law;                                                                              (d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules       (e)  anybody corporate established, by or under any law; or (f)  any partnership firm whether registered or not under any law including association of persons;
3	services  provided or agreed to be   provided  by way of sponsorship	any	body corporate/partnership firm
4	services  provided or agreed to be   provided  by an arbitral tribunal	Arbitral tribunal	Business entity with a turnover more than rupees ten lakh in the preceding financial year;
5	Legal Services provided By ADVOCATE (Whether individual of Firm) to any Business Entity	individual or firm	Business entity with a turnover more than rupees ten lakh in the preceding financial year;
6	services  provided or agreed to be   provided  by way of support service by Government or local authority	Government /Local authority	Business entity
7	(a)   services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value.	Individual (prop ) /Partnership firm (registered or unregistered)           /HUF	any company formed or registered under the Companies Act, 1956 (1 of  1956) or a business entity registered as body corporate located in the taxable territory;
	(b) services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.
8	Service provided or agreed to be provided by way of Supply of manpower and security services
9	services  provided or agreed to be   provided  by way of works contract
10	any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory	any	any
11	provided or agreed to be provided by a director of a company to the said company	Director (individual)	Company
12	provided or agreed to be provided by a director to Body Corporate	Director	Body Corporate
13	Service Provided by Recovery Agent to banking company or a financial institution or a non-banking financial company	any	Banking company or a financial institution or a non-banking financial company

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA