Latest clarification w.r.t. section 185_14.02.2014

Dear Mr Ankur,

Thanks for sharing the circular. 

It is not clear whether any new clarification has been given in the circular by MCA.  In the past, MCA has issued following circulars:

1.  Circular dated 18.9.2013 clarifying that consequent upon notification of 98 Sections of Companies Act 2013, corresponding sections of Companies Act 1956 have ceased to be effective.  (Accordingly, Section 295 of CA 1956 is not effective now since corresponding section 185 of CA 2013 has been notified.  But Section 372A of CA will continue to be effective since corresponding Section 186 of CA 2013 has not been notified.)

2.  Circular dated 19.11.2013 clarifying once again that Section 372A of CA 1956 continues to be in force since Section 186 of CA 2013 has not been notified.  (In this circular also nothing new was clarified.)

3.  Now this Valentine Day circular dated 14.2.2014 again clarifies that exemption u/s 372A(8)(d) will be available till Section 186 is notified.  (Again in this circular also nothing new seems to be there.)

Further, it seems MCA has  wrongly mentioned Section 185 instead of 186 at a few places in the circular.

Regards,

Agree...the position is still not clarified properly by MCA. It seems there are certain drafting errors in present circular.