Company Secretary And Compliance Officer Of NDTV Resigns

Company Secretary And Compliance Officer Of NDTV ResignsNDTV has been facing non disclosure violation of Rs 450 crore tax demand notice to the BSE and National Stock Exchange (NSE). Of course, NDTV has been denying any such compliance requirement on its part as it presumed such demand notice to be without any legal basis and hence untenable in law. NDTV has also contended that the matter was “sub-judice” and that it has received a stay. While the legality of this stand is yet to be analysed yet in a possible related development the company secretary and compliance officer of NDTV has resigned.

In a regulatory filing, NDTV said, “Anoop Singh Juneja has resigned from the services of the Company. The Company has accepted his resignation and relieved him of his responsibilities w.e.f. 31 May 2014”.

As per the listing agreement, companies are required to submit documents like annual reports, shareholding pattern data, quarterly and full-year financial results, as also corporate governance compliance reports within stipulated time periods.

Recently the Indian Companies Act 2013 was brought into force to a great extent. This has significantly increased the regulatory compliance requirements in India. Especially, the liabilities of directors have been significantly increased under the new company law.

India has been struggling hard to deal with transfer pricing and taxation issues. Even Vodafone, Nokia and Shell received notices from income tax authorities of India regarding transfer pricing and other taxation issues. Indian government has also proposed establishment of Income Tax Overseas Units (ITOUs) of India in foreign countries.

India may also scrap the compulsory transfer pricing audit based on monetary threshold limits. In fact, Indian Tax Department has already received 232 applications from MNCs in 2013-14 for advance pricing agreement. The CBDT India has also directed chief commissioners to raise tax evasion issues with MCA for mergers and acquisition deals. The best part is the constitution of a Special Investigation Team (SIT) to probe black money deposited in foreign jurisdictions. The SIT has already started working towards this goal.

In these circumstances, companies cannot take the laws of India lightly as that may land them in trouble. Reporting and compliance requirements must be especially kept in mind by various companies.