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CORPORATE TRAFFIC JAM

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CORPORATE TRAFFIC JAM

Post by RENGARAJAN on Sat Sep 24, 2011 9:57 pm

CORPORATE TRAFFIC JAM

Come 1st October 2011, many companies directors DIN will be disabled if MCA has not extended the same. Now only awareness came and if PAN details and DIN details are correct, then it is only half an hour job to complete the process
The delay in din process only because two government department will be involved and MCA has to simplify the process.OTHERWISE LONG QUEUES WILL BE AT MCA FILING FOR VARIOUS ACTIONS.

Fill up the DIN 4
Affix Director’s Photograph
Attach certificates from Director for updation as well as photocopy of PAN card
And file the same through practicing professionals.
PAN UPDATION PROCESS:
The photocopy of pan card is in addition to the PAN updation through prefill done in DIN 4. The system has already linked with NSDL DATA Base for pan verification.
If pan verification has already done, there is no need for again to attach the pan card BUT MCA IS INSISTING TO SUBMIT THE PROOF.
PROOF FOR WHAT i.e validation has already done in pan data base.
While applying for Din, the passport size photograph already given. AGAIN ANOTHER DUPLICATE PROCESS ADOPTED BY MCA TO SUBMIT PHOTO FOR PAN VALIDATION. REASON FOR ATTACHMENT IS BEST KNOWN TO MCA.
WE NEED SIMPLE PROCESS BY WAY OF PAN UPDATION ( SYSTEM SHOWS WHETHER IT IS MATCHING OR NOT MATCHING) IF it is MATCHING NO PROBLEM, IF NOT MATCHING, WE NEED TO EITHER TO CHANGE THE PAN OR DIN.
The same was not simplified by MCA while introducing the pan updation
Mismatch between pan name and Din name: The option given to the Directors, you need to change either pan or DIN. For din, only you have to change the name as per PAN and do validation process, ( presently you have to submit the proof of pan card)
When it comes for PAN, you need to apply to Income tax department by filling the application form and request for name correction. Normally they are doing within 15 days. Now it is taking too long time to dispatch the Pan card even though your name correction has been done. The director who have applied in last week of august 2011, yet to receive Pan card. Unless you attach your copy of pan card, your DIN 4 process will not be completed.
Mismatch between pan name and DIn name due to spelling mistakes: There are occasions where spelling differs from DIN and Pan details. Again if you want to correct DIn there is no problem attaching your pan card. Whereas if you want to correct pan, then it is taking time. ( FOR EXAMPLE MURTHY AS MURTY)
Mismatch between father name in DIN and Pan : This is also another problem like that above, unless if you rectify in pan card, you won’t be able to complete the process of DIN 4
Consequences of not filing DIN 4: If the Directors are not filing the DIN-4, then the DIN will be disabled by MCA ( if extension not given beyond 30th September, 2011). AS per provision in companies Act, if you want to become a Director, you should have valid din. If you are not having valid din, you will lose your directorships. On one side, DIN is permanent one while allotting din number. Now if you fail to do Pan updation, your din will be disabled. There is no clarity on the same from Ministry of Corporate Affairs.
PAN NO GIVEN AT THE TIME OF APPLYING DIN: MANY DIRECTORS HAVE GIVEN PAN DETAILS, JUST SIMPLY ENTERED THE PAN No IN DIN APPLICATION. IN 2006 THERE WAS NO PAN VALIDATION IN DIN APPLICATION. THIS IS UPTO LAST YEAR. DIRECTORS WHO HAVE GIVEN THEIR PAN NO BUT NOT VALIDATED WITH PAN DATA BASE, NO PROBLEM FOR THEM. ONLY THOSE WHO HAVE NOT FURNISHED THE DETAILS ARE UNDERGO THE PROCESS. WE NEED TO HAVE CLARITY AND SIMPLIFY THE PROCESS. MANY DIRECTORS WHO HAVE GIVEN THEIR PAN DETAILS , I AM SURE IT WILL NOT MATCH WITH DIN NAME. WHAT HAPPEN TO THOSE DIRECTORS. THEY ARE SIMPLY ALLOWED TO MOVE AROUND WITHOUT PAN VALIDATION.
SUGGESTION TO MINISTRY OF CORPORATE AFFAIRS:
IF THE MINSTRY IS SERIOUS TO MATCH PAN DETAILS, IT SHOULD ALLOW ALL DIRECTORS IRRESPECTIVE OF WHO HAVE ENTERED OR NOT ENTERED.
THEY SHOULD ALSO SIMPLIFY THE PROCESS IN THE FOLLOWING MANNER
FILL UP DIN4
PAN VALIDATION IN THE DIN 4 ( match between pan and din data bases)
CONSENT LETTER FROM DIRECTOR
FINALLY THEY SHOULD ALSO EXTEND THE DATE UPTO 31ST MARCH 2012
OTHERWISE, HALF OF THE DIRECTORS HAVE FILLED UP DETAILS AT THE TIME OF FILING DIN APPLICATIN AND HALF OF THEM EITHER VALIDATED THEIR PAN OR NOT VALIDATED THEIR PAN.
WE REQUEST ALL THE THREE PROFESSIONAL INSTITUTES TO TAKE UP THE SAME WITH THE MINISTRY AND RESOLVE THE ISSUE.
CONTRARY VIEW SOLICITED

Best Regards

RENGARAJAN

Posts : 13
Points : 62
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Join date : 2011-06-06
Location : Chennai

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