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Our updates


28/03/2020
Ministry of Corporate Affairs in view of COVID-19 taken following measures to reduce their compliance burden and other risks:

No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing noncompliant companies/ LLPs to make a ‘fresh start'. The Circulars specifying detailed requirements in this regard are being issued separately.

Special Measures under Companies Act, 2013 (CA-2013) and Limited Liability Partnership Act, 2008 in view of COVID-19 outbreak

The mandatory requirement of holding meetings of the Board of the companies within the intervals provided in section 173 of the Companies Act, 2013 (CA-13) (120 days) stands extended by a period of 60 days till next two quarters i.e., till 30th September. Accordingly, as a one-time relaxation the gap between two consecutive meetings of the Board may extend to 180 days till the next two quarters, instead of 120 days as required in the CA-13.

The Companies (Auditor's Report) Order,2020 shall be made applicable from the financial year 2020-2021 instead of being applicable from the financial year 2019- 2020 notified earlier. This will significantly ease the burden on companies & their auditors for the financial year 2019-20. A separate notification has been issued for this purpose.

As per Para VII (1) of Schedule IV to the CA-13, Independent Directors (lDs) are required to hold at least one meeting without the attendance of Non-independent directors and members of management. For the financial year 2019-20, if the lDs of a company have not been able to hold such a meeting, the same shall not be viewed as a violation. The lDs, however, may share their views amongst themselves through telephone or e-mail or any other mode of communication, if they deem it to be necessary.

Requirement under section 73(2)(c) of CA-13 to create the deposit repayment reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020.

Requirement under rule 18 of the Companies (Share Capital & Debentures) Rules, 2014 to invest or deposit at least 15% of amount of debentures maturing in specified methods of investments or deposits before 30th April 2020, may be complied with till 30th June 2020.

Newly incorporated companies are required to file a declaration for Commencement of Business within '180 days of incorporation under section 10A of the CA-13. An additional period of 180 more days is allowed for this compliance.

Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the CA-1 3 shall not be treated as a non-compliance for the financial year 2019-20.

27/03/2020
Companies Affirmation of Readiness towards COVID-19 Form MCA has issued Companies Affirmation of Readiness towards COVID-19 Form which is a simple web form with minimum fields and which can be filed from anywhere. There
is no requirement of DSC and does not involve payment of any fee. Companies/LLPs have been advised to use the service w.e.f 23rd March 2020 onwards at the earliest convenience. Stakeholders have been requested to please note that there is no fee applicable for FORM CAR (Companies Affirmation of Readiness Towards COVID-19). Please note that the form has been deployed as a purely confidence building measure to assess the readiness of the companies to deal with COVID-19 Threat in India. As such no penalty or enforcement related action is applicable. Stakeholders may at their convenience file this form. It is purely voluntary as part of our contribution towards joining the movement to fight against the spread of the disease. Since the portal may experience heavy load, it would indicate 'Busy' alert whenever peak traffic is reached

26/03/2020
Board meetings under the Companies Act, 2013: Considering the need to take precautionary steps to overcome the outbreak of the
coronavirus (Covid-19), the Government has in-principle decided to relax the requirement of holding Board meetings with physical presence of directors under section 173 (2) r/w rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 for approval of the annual financial statements, Board’s report, etc. Such meetings may till 30th June, 2020 be held through video conferencing or other audio visual means by duly ensuring compliance of rule 3 of the said rules.

Sensitization of Nidhi companies Sensitization of Nidhi companies towards compliance of provisions of section 406 of Companies Act, 2013 and Nidhi Rules, 2014 as amended vide Nidhi (Amendment) Rules, 2019 w.e.f 15.08.2019 and general public to invest in genuine and compliant Nidhis only(40 KB)

Non Availability of MCA21 Voice and Ticketing Helpdesk services: Please be informed that in view of present total lockdown imposed on transport and people movement by the Government, availability of MCA21 Voice and Ticketing Helpdesk services have been severely impacted. The same would not be available till
further notice. Stakeholders may kindly note and cooperate.

View Public Document (VPD) requests disabled till 31st March, View Public Document (VPD) requests would be disabled till 31st March 2020. Stakeholders are requested to plan accordingly.

25/03/2020
Clarification on spending of CSR funds for COVID-19.(40 KB) Spending of CSR funds for COVID- 19 is eligible CSR Activity. Funds may be spent for various activities related to COVID- 19 related to health care including preventive health care and sanitation, and, disaster management
 
Coronavirus Impact: Electronic And QR Code-Based GST Invoicing Deferred
India deferred rollout of e-invoicing and quick response or QR Code as the coronavirus outbreak has disrupted businesses.
The QR code-based invoicing and electronic invoicing will now be rolled out from October against April earlier, according to a notification by the Central Board of Indirect Taxes and Customs. This comes after the government waived penalties and relaxed certain GST deadlines for small firms earlier this month.
 
24/03/2020
Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications under GST law for companies under the IBC in connection with the notification issued on Saturday.
 
Central Government through gazette notification dated March 24, 2020 specified one crore rupees as the minimum amount of default for initiation of proceedings under the Insolvency and Bankruptcy Code, 2016 (‘the Code’). This represents a hundred-fold increase from the current level of one lakh rupees.  
RBI GIVES BOOSTER DOSE TO THE ECONOMY Repo rate reduced by 75 basis point, CRR ration reduced by 1 % and Intt on working capital loan deferred by 3 months. 

RBI Moratorium of 3 months for term loan RBI inject liquidity of more than 5 lac crore in the system.

Finance Minister has declared extension in the last date for filing of Income Tax Return (ITR) for the financial year (FY) 2018-19 to June 30, 2020 from March 31, 2020 for those assessees who have not filed their returns yet.
 
2. Financial Minister has announced extension of cutoff dates related to income tax, GST and other compliances till June 30, 2020. However, the extension beyond the financial year (FY) 2019-20 end date of March 31, 2020 has created some doubts.
 
3. CBIC has issued Notification No. 16/2020 – Customs dated 24th March 2020 in which CBIC has amend the notification No. 52/2003-Customs dated 31st March,2003. CBIC extended exemption from IGST and compensatio cess to EOUs on imports till 31.03.2021.
 
Sebi is considering a proposal to cut down trading hours for commodities derivatives from 11.30 PM to 5 PM till the time lockdow over coronavirus is in place. This follows the submission by brokers to the regulator requesting such measures following lockdown. Many brokers finding it difficult to call even bare minimum staff required in office. Equity derivatives are functioning till 3.30 for derivatives and cash market.
 
Hon'ble Allahabad High Court in a recent matter of M/s Jindal Pipes Ltd. v. State of Uttar Pradesh reported in 2020 (34) G.S.T.L. 48 (All.); Writ Tax no. 1366 of 2019 decided on 20 January 2020, held that service of order by proper office on driver of vehicle is not a valid service as not served on the person who would have been aggrieved by the order. 
In this matter, Goods were being transported from Ghaziabad to Ghazipur on 20 August 2018 where upon interception of consignment at Kanpur, it was discovered that the distance in E-way bill, generated by Consignor, has been stated as 90 kms which was in fact 980 kms. Goods were seized under Section 129 of UPGST Act, 2017 which were subsequently released upon payment of tax and penalty by the Consignor. Accordingly, an order was passed on 21 August 2019 against which petitioner filed an appeal on 06 March 2019. However, the appeal was dismissed on the sole ground, being appeal filed beyond the period of limitation.
Counsel of the petitioner while placing reliance on the judgment of same Court in the matter of S/S. Patel Hardware v. Commr. of State reported in 2019 (21) GSTN 145 pleaded that the impugned order was served on the driver of the vehicle, who was the driver of transport agency, and therefore, it was neither served on consignor nor on the consignee. It was pleaded that driver was not the 'person aggrieved' to whom the order has been communicated and thus, appeal was filed within the limitation prescribed. Hon'ble High Court held that order served on driver is not a valid service and accordingly, appeal was allowed as filed within time limitation.
 
Ministry of Finance vide Press Release dated March 24, 2020 has given relief in Regulatory and Statutory Compliance due to COVID-19. Key takeaways are:
Income Tax :
1. Extend last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020;
 
2. Aadhaar-PAN linking date to be extended from 31st March, 2020 to 30th June, 2020; 
 
3. Vivad se Vishwas scheme – no additional 10% amount, if payment made by June 30, 2020; 
 
4. Due dates for  issue  of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains  under Income Tax Act,  Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act,  STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas  law  where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020. 
 
5. For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy,  STT, CTT  made between 20th March 2020  and 30th June 2020,  reduced interest rate  at 9% instead of 12 %/18 % per annum ( i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged  for this period.  No late fee/penalty shall be charged for delay relating to this period. 
 
GST: 
1. Last date for filing GSTR-3B in March, April and May 2020 will be extended till the last week of 30th June, 2020 for those having aggregate annual turnover less than Rs. 5 Crore. No interest, late fee, and penalty to be charged; 
 
2. For any delayed payment made between 20th March 2020 and  30th June 2020  reduced rate of interest @9 % per annum   ( current interest rate is  18 % per annum)  will  be charged. No late fee and penalty to be charged, if complied before till 30th June 2020.  
 
3. Date for opting for composition scheme is extended till the last week of   June, 2020.  Further, the  last date for making payments for the quarter ending 31st March, 2020 and filing of  return for 2019-20 by the composition dealers  will be extended  till the last week of June, 2020. 
 
4. Date for filing GST annual returns of FY 18-19, which is due on 31st March, 2020 is extended till the last week of  June 2020;
 
5. Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020; 
 
6. Payment date under Sabka Vishwas Scheme shall be extended to 30th June, 2020. No interest for this period shall be charged if paid by 30th June, 2020;
 
24X7 Custom clearance till end of 30th June, 2020;
 
Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing applications, reports, any other documents etc., time limit for any compliance under the Customs Act and other allied Laws where the time limit is expiring between 20th March 2020  to 29th June 2020 shall be extended to 30th June 2020.
 
MCA: 
1. No additional fees shall be charged for late filing during a moratorium period from 01st April to 30th September 2020, in respect of any document, return, statement etc., required to be filed in the MCA-21 Registry, irrespective of its due date, which will not only reduce the compliance burden, including financial burden of companies/ LLPs at large, but also enable long-standing non compliant companies/ LLPs to make a ‘fresh start’; 
 
• The mandatory requirement of holding meetings of the Board of the companies within prescribed interval provided in the Companies Act (120 days), 2013, shall be extended by a period of 60 days till next two quarters i.e., till 30th September; 
• Applicability of Companies (Auditor’s Report) Order, 2020 shall be made applicable from the financial year 2020-2021 instead of from 2019-2020 notified earlier. This will significantly ease the burden on companies & their auditors for the year 2019-20. 
• As per Schedule 4 to the Companies Act, 2013, Independent Directors are required to hold at least one meeting without the attendance of             Non-independent directors and members of management. For the year 2019-20, if the IDs of a company have not been able to hold even one    meeting, the same shall not be viewed as a violation. 
• Requirement to create a Deposit reserve of 20% of deposits maturing during the financial year 2020-21 before 30th April 2020 shall be allowed to be complied with till 30th June 2020. 
• Requirement to invest 15% of debentures maturing during a particular year in specified instruments before 30th April 2020, may be done so before 30th June 2020. 
• Newly incorporated companies are required to file a declaration for Commencement of Business within 6 months of incorporation. An additional time of 6 more months shall be allowed. 
• Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, shall not be treated as a violation. 
• Due to the emerging financial distress faced by most companies on account of the large-scale economic distress caused by COVID 19, it has been decided to raise the threshold of default under section 4 of the IBC 2016 to Rs 1 crore (from the existing threshold of Rs 1 lakh). This will by and large prevent triggering of insolvency proceedings against MSMEs. If the current situation continues beyond 30th of April 2020, we may consider suspending section 7, 9 and 10 of the IBC 2016 for a period of 6 months so as to stop companies at large from being forced into insolvency proceedings in such force majeure causes of default.
 
23/03/2020
Phytotherapy’ is not exempted under GST, Need to be registered: AAR
The Authority of Advance Ruling (AAR) West Bengal ruled that the ‘phytotherapy’ is not exempted under Goods and Service Tax (GST) and so it needs to be registered. On an application filed by the applicant namely OPTM Health Care Private Limited, the Authority of Advance Ruling (AAR) observed that all the health care services are exempted from paying Goods and Service Tax (GST) and so it is not needed to get registered under Goods and Service Tax (GST). However, the word ‘phytotherapy’ is not included in ‘health care services’.

22/03/2020
In view of coronavirus outbreak, Bihar government withdraws orders to attach tax defaulters’ bank accounts
Deputy CM Sushil Kumar Modi on Monday said the earlier orders issued to attach the bank accounts of tax defaulters for not clearing dues worth Rs375 crore before GST’s enforcement have been withdrawn. The pending dues pertained to the period before the uniform goods and services tax (GST) regime had come into force in the country Modi said.
He said this and a few other measures have been taken by the government specially in view of the impact of coronavirus.

20/03/2020
In order to generate greater awareness and confidence in our state of readiness, the Ministry of Corporate Affairs is in the process of developing and deploying a simple web form for companies/ LLPs to confirm their readiness to deal with the COVID-19 threat. The Web Form named CAR (Company Affirmation of Readiness towards COVID-19) should be filed by an authorized signatory of Companies & LLPs. CAR-2020 shall be deployed on the 23rd of March, 2020. All companies/LLPs are requested to report compliance using the above-mentioned web service on the 23rd instant.

19/03/2020
13 CARO reporting to be done by auditor has been amended. Important changes are as follows:
Reporting on revaluation of Property, Plant and Equipments by company
Reporting of proceedings under the Benami Transactions (Prohibition) Act, 1988.
Reporting if the stock statements filed with banks are in line with books of accounts, if company was sanctioned working capital limits in excess of five crore rupees or more from banks or financial institutions.
Reporting of investments in or  providing of any guarantee or security or granting any loans or advances.
Loans overdue for more than 90 days, evergreening of loans, reporting on any loan default, etc.
Reporting of compliances with RBI directives and the provisions the Companies Act with respect to deemed deposits.
Reporting with respect to transactions not recorded in the books of account but now surrendered or disclosed as income in the income tax proceedings.
Reporting on treatment by auditor of whistle-blower complaints received during the year by the company
Reporting on internal audit system
Reporting on cash losses
Reporting on resignation of the statutory auditors
Reporting on uncertainty of company capable of meeting its liabilities.
Reporting transfer of unspent CSR amount to Fund specified in Schedule VII.

18/03/2020
SEBI relaxes time limit for filling FY 19-20 financials, listed companies can file upto 30 June 2020

ITAT Delhi in the case of Arihant Technology Pvt. Ltd. Vs Pr. CIT states that  Section 263 Jurisdiction cannot be assumed by Pr. CIT for making roving enquiries. 

17/03/2020
GST: Foreign airlines exempt from filing GSTR-9C. CA certified Statement of Receipts & Payments to be filed by 30 Sept of next Financial Year for each GSTIN.

MCA: Notice regarding Board meetings under the Companies Act, 2013 http://www.mca.gov.in/Ministry/pdf/Meeting_18032020.pdf

16/03/2020
Government introduced the Companies (Amendment) Bill 2020 in the Lok Sabha. Introducing the Bill, Minister of State for Finance said that the proposed Bill will help in doing ethical and honest business in the country.  

Vivad se Vishwas Scheme 2020 notified. A golden opportunity to settle Income tax related disputes. Avail this by 31st March, 2020 to avoid higher payment at a later date. 

The government garnered Rs 16.89 lakh crore of tax revenue (net of refunds) in the first 11 months of the fiscal, compared with Rs 16.87 lakh crore in the same period last year. Due to corporate tax cut announced in September last year, the total direct tax collection for the April-February period came in 3.5% lower at Rs 8.14 lakh crore. However, indirect tax collection, which includes GST, saw a growth of 3.8% at Rs 8.75 lakh crore.

15/03/2020
Union Minister of Finance informed that due date for filing the annual return and the reconciliation statement for the financial year 2018-19 to be extended till 30th June 2020.

Ministry of Corporate Affairs (MCA) has conducted an inspection on a bitcoin company through Registrar of Companies and prosecutions have been filed for violations under various provisions of the Companies Act. 

MCA has tightened compliance norms for Nidhi companies, a kind of NBFCs, which are created to borrow and lend money among its members. The move comes in the backdrop of the government revising corporate norms to ensure that investors are not duped through fraudulent activities.

14/03/2020
GST Council has decided to hike the levy on mobile handsets and hand-made matches, while lowering it on Aircraft Maintenance, Repair & Overhaul (MRO) services. Total collection from GST Compensation Cess stood at over Rs. 78,000 crore, while the total compensation payout is more than Rs. 1.20 lakh crore during the current fiscal year.

GST Council meeting Update : GST RATES from 1st April 2020) on mobile increased from 12% to 18%. on all types of matches will be 12% from earlier 5% for handmade matches and 18% on other matches. on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft is reduced from 18% to 5%.

GST RETURNS: GSTR-9 and GSTR-9C due date for FY 2018-19 extended from 31st March 2020 to 30th June 2020. Persons with turnover of up to Rs. 5 crore will has option to file GSTR-9C for 2018-19.

GST: Late fees will not be levied for late filing of GSTR-9 and GSTR-9C for 2017-18 and 2018-19 for persons with turnover up to Rs. 2 crore.

GST: New return system and E-Invoice deferred from 1st April 2020 to 1st October 2020. GSTR-1, and GSTR-3B to continue till September 2020

GST: Interest on delayed payment will be on net cash tax liability. This will be applicable retrospectively from 1st July 2017. Where registrations has been cancelled up to 14th March 2020, application for revocation can be filed up to 30th June 2020.

A new facility called “Know your supplier” to be introduced. A person can have basic information about the supplier with whom they conduct business or propose to conduct business.
Standing Committee on Finance recommended in its report on demand for grants that Exemptions and deductions in personal income tax, “should be continually revisited, rationalised and eventually scrapped in tandem with moderation of tax rates. 

13/03/2020
?MCA: Companies/ OPCs to get PF & ESI registration no. on www.mca.gov.in through Spice+ & AGILE-PRO eforms at time of incorporation even if no. below threshold then.

MCA: Last date of filling e-forms AOC-4, AOC-4(CFS), AOC-4XBRL & MGT-7 is extended till 30.06.20 for Companies  having jurisdiction in UT of J&K & Ladakh. MCA circular No. O9/2O2O.

12/03/2020
 IBC: Parliament passed amendments to the insolvency law that will help ring-fence successful bidders of insolvent companies from risk of criminal proceedings for offences committed by previous promoters.

In a case regarding the Dishonor of Cheque against a private limited company, the Delhi High Court held that the Non-executive Directors of the company cannot be held liable for the dishonor of cheque without specific allegations against them.

10/03/2020
Yes Bank has enabled inward IMPS/NEFT services. This means people can now use other bank accounts to send payments to Yes Bank accounts through IMPS/NEFT.
The private lender has informed via its official Twitter account that people can now make payments towards Yes Bank credit card dues and loan obligations.
Yes Bank presently has a withdrawal cap of Rs 50,000. However, the withdrawal cap on Yes Bank's depositors is likely to be withdrawn as early as March 15, Prashant Kumar - the administrator appointed by Reserve Bank of India
He has also confirmed that there is no question of a merger with State Bank of India (SBI) which is leading the rescue of the troubled lender

State Bank of India (SBI) will submit its rescue plan for Yes Bank within a week to the Reserve Bank of India (RBI) that will likely entail a maximum investment of Rs 6,000 crore for a 26% stake. The plan may involve a similar amount to be invested by a group of global investors, said people aware of the matter. The RBI is also firming up plans to provide liquidity support of at least Rs 8,000-10,000 crore to stem any flight of deposits once the moratorium on Yes Bank is lifted.
“RBI governor Shaktikanta Das and SBI chairman Rajnish Kumar met on Monday to firm up the plans on Yes Bank’s reconstruction scheme. Liquidity support from the RBI for Yes Bank is also on the anvil,” said one of persons. “The RBI liquidity line could be against a pledge of securities of a similar value. The details are being worked out.”

Income tax: Any person opting for the presumptive taxation u/s 44AD is liable to pay whole amount of advance tax on or before 15th March of the previous year otherwise interest u/s 234C shall be levied. MAT Credit, Brought forward losses and Relief u/s 89 can be adjusted for the purpose of Advance Tax Calculation.

09/03/2020
Income Tax: 15.03.2020 is the due date to pay Advance Tax (4th Installment) for FY 2019-20.

RBI Deputy Governor N S Vishwanathan has decided to step down by March 31 due to ill health, three months before the end of his extended one-year tenure.

GST: e-invoice Mandatory wef 1.4.2020 for Turnover above 100 cr. Invoice dt Apr 2  can be uploaded as e-invoice on Apr 2 or 3, not before or after that.

08/03/2020
MCA: The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013. The Bill would remove criminality under the Act in case of defaults which can be determined objectively and which, otherwise, lack the element of fraud or do not involve larger public interest.

MCA: Extension of last date of filing of Form NFRA  

07/03/2020
Under LLP Settlement Scheme 2020, pay between 16-3-20 & 13-6-20, Rs 10 per day (Maximum 5000 per doc) for delay in filing of Form 3,4,8,11 due upto 31.10.19.

Sebi is seeking to establish a real-time surveillance mechanism, harnessing artificial intelligence to build a platform that will capture and analyse data and flag suspicious transactions during trading hours. This development assumes significance as it will allow Sebi to intervene even in the mid-market hours.

06/03/2020
Income Tax: You may face double trouble if you fail to link your Aadhaar with PAN by the end of this month. First, your PAN will become inoperative and second, you may be fined Rs 10,000 if you use an inoperative PAN. The income tax department has said that PAN card holders may face penal action under the Income Tax Act if they fail to link it with Aadhaar before the deadline.

Supreme Court set aside an RBI circular that imposed a blanket ban on banks and financial institutions from providing services to any individual or business dealing in digital currencies. As the SC had earlier refused to stay the circular issued in April 2018, the banks and bourses dealing with cryptocurrencies, including bitcoins, had closed down operations since July 6, 2018. 

?Supreme Court dismissed SLP filed by GST department against Punjab & Haryana High Court order which allowed assessee to file Tran-1. Union of India v. Adfert Technologies (P.) Ltd. - [2020] 115 taxmann.com 29 (SC)

05/03/2020
Gst Trans 1 filing update 
The Calcutta High Court has held that the inability to upload Form GST TRAN-1 due to technical errors is a mere procedure and not mandatory.
There were several petitions clubbed together because it was of the same nature. The Calcutta High Court observed that the procedural law must not take away the vested rights of the individuals in which they are empowered by the statutes. At the same time, these vested rights are subjected to scrutiny by the appropriate authority.
The petitioners knocked on the doors of the court with the prayer that they must be allowed to file or upload their Form GST TRAN-1. Though the time limit is extended March 31, 2020, however, this benefit can be availed by only the registered person who was unable to upload the Form GST TRAN-1because of the technical difficulties as per Rule 117(1A) of the CGST Rules.
In this case, the petitioners were denied the benefit of the extended time-limit i.e. March 31, 2020.
The issue raised in this case was whether the petitioners are eligible to avail the benefit pertaining to the extension of time-limit i.e. March 31, 2020, or not.

04/03/2020
Income tax returns filing data 
As many as 6.35 crore income tax returns have been filed electronically till mid February this fiscal, up from 6.28 crore in 2018-19, Parliament was informed on Monday. In a written reply to a question in the Lok Sabha, Minister of State for Finance Anurag Singh Thakur said the number of assessees filing Income Tax Returns (ITRs) has consistently increased during the last three years as well as in the current year.
He said 5.18 crore ITRs were e-filed in Assessment Year 2016-17, 5.32 crore in 2017-18, 6.28 crore in 2018-19 and 6.35 crore in 2019-20 (up to February 15, 2020).

The ITRs of AY 2019-20 can be submitted up to March 31, 2020, and hence this number is expected to go up further.

03/03/2020
The income tax department has also identified 15.58 lakh non-filers of ITRs with potential tax liability for Assessment Year 2018-19, 38.81 lakh for 2017-18 and 32 lakh for 2016-17 through the non-Filers Monitoring System (NMS).

02/03/2020
The NMS assimilates and analyses in-house information as well as transactional data received from third-parties, including Statements of Financial Transaction, Tax Deduction at Source (TDS) and Tax Collection at Source statements, Intelligence and Criminal Investigation data etc. to identify such persons/entities who have undertaken high value financial transactions but have not filed their returns.

29/02/2020
CBDT has decided to honour the best income tax department investigator, revenue collector and innovator among others working in the recently launched e-assessment scheme. As per an order issued on February 20 by the policy-making body of the department, there will be five categories of honours on a monthly and yearly basis and the winning tax personnel will be honoured on 'Income Tax Day' celebrated in July every year. 

Salaried people can choose either of the two income tax regimes at the time of filing their returns irrespective of the choice they have given to the employer at the beginning of the financial year. The budget for the next fiscal has proposed to add a new tax regime to the existing one. 

28/02/2020
A 28% Goods and Services Tax (GST) will be levied on lotteries from March 1, according to a notification. Last year in December, the GST Council had decided to impose a single rate of 28 per cent on state-run and authorised lotteries. 

Vodafone Idea (VIL) will not be able to cash out of the Bharti Infratel-Indus Towers merged entity early enough to generate money to help pay off a bigger part of its huge adjusted gross revenue (AGR) dues by March 17, the deadline set by the Supreme Court. This was stated by industry executives and analysts.

Ministry of Finance has notified the Banning of Unregulated Deposit Scheme Rules, 2020 which shall come into force on the date of their publication in the Official Gazette i.e. 12-02-2020. The Rules include Information and particulars to be considered Competent Authority for provisionally attaching the property of the deposit taker etc.

27/02/2020
CBDT has notified Rule 114AAA u/s 139A(2)  for notifying date to make PAN inoperative if the same is not linked to Aadhar of the PAN holder up to 31.3.2020, except those who are not eligible to obtain Aadhar number and those who are exempted to link u/s 139AA(3).

High Court Allows Filling of Tran-1 despite absence of any evidence of technical glitches.
Samrajyaa and Company Vs DCCE (Madras High Court).

26/02/2020
Reserve Bank of India Governor Shaktikanta Das has said the central bank has already initiated discussions with some institutions and efforts are on for inclusion of government bonds in global indices as quickly as possible.

DHFL draft forensic report by KPMG had found the lender had disbursed loans and advances to inter-connected entities, which were likely linked to the promoters.

25/02/2020
Supreme Court In the matter of PNB- Nirav Modi scam, the has granted relief to Usha Ananthasubramaniam, former MD and CEO of Punjab National Bank, by setting aside the order passed by NCLT by which her assets were frozen.

CBDT has released a notification called the Income-tax (4th Amendment) Rules, 2020 which shall come into effect on April 1, 2020. The CBDT has introduced Forms 10-IC and Form 10-ID to opt for reduced tax rates as declared under Section 115BAA and Section 115BAB respectively for domestic companies.

24/02/2020
Indirect tax department wants the software companies to value the global brand names and logos used in India, charge a fee on that and pay 18% goods and services tax (GST) on top of it, Industry trackers said currently there is no valuation mechanism for global technology companies in India. 

Foreign portfolio investors (FPIs) seem to like the Indian market compared to other emerging markets, going by the relatively high inflows for the second consecutive month. The impact of coronavirus on other emerging markets and buying in the primary markets are the main reasons for FPI inflows. 

23/02/2020
MCA: The acquirer making an application should deposit at least 50 percent of the total consideration to be payable pursuant to takeover offer at the time of making an application to the NCLT.

MCA has notified the Companies (Registration Offices and Fees) Amendment Rules, 2020 which shall come into force on the date of their publication in the Official Gazette i.e 19-02-2020. 

22/02/2020
Madras High Court in a recent order has opined that the faceless tax-assessment system “can lead to erroneous assessment, if officers are not able to understand the transactions and statement of accounts of an assessee without a personal hearing”. The court, however, said electronic-assessment — introduced to curb cases of corruption and harassment of tax payers by officials— was a laudable initiative.

Central Board of Indirect Taxes & Customs (CBIC) has instructed its officers to initiate measures to recover interest payable for delayed filing of monthly returns (GSTR-3B). As per FE (February 13), the instruction from Member of the Board puts the figure at over Rs 46,000 crore.

Bombay High Court has held that an application made for withdrawal of an amount deposited with the court does not amount to a suit/proceeding/execution within Section 14 of IBC, and therefore, the party that deposited the amount cannot oppose such an application merely because it is undergoing moratorium.

21/02/2020
MCA has allowed the Filing of forms in the registry of MCA-21 by the Insolvency Professional (IP), Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator as appointed under Insolvency Bankruptcy Code, 2016.

SEBI has notified the new norms & Guidelines governing Portfolio Managers and their services. The SEBI has mandated that portfolio managers cannot charge an upfront fee, either directly or indirectly, from clients and the only brokerage at actuals should be charged to clients as an expense. 

income tax (I-T) department has notified forms for companies to avail the reduced corporate tax rates that were announced in September last year. CBDT has notified Forms 10-IC and 10-ID for existing companies that want to avail lower I-T rate and new manufacturing firms, respectively. 

CBDT To maximise revenue mobilisation via the direct tax ‘Vivad Se Vishwas’ scheme has made tax officers’ performance under the scheme a vital criterion for their annual appraisals for 2019-20 and future postings. “Details of the number of disputed cases, amount involved in disputed cases as well the number of cases resolved and the amount collected under the scheme may be reported in the self-appraisal. 

20/02/2020
GST Network CEO said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes. “E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries. 

Supreme Court has observed that an arbitration clause in an agreement which is required to be duly stamped, was not sufficiently stamped, cannot be acted upon by the Court.
 
CBDT and SEBI would enter into a Memorandum of Understanding, which inter-alia would include modalities of / exchange of data, maintenance of confidentiality, a mechanism for safe preservation of data, weeding out after usage, etc. about the Assessees.
 
19/02/2020
Supreme Court has stayed the Rajasthan High Court order that extended the deadline for filing of Form GSTR-9 (annual return) and Form GSTR-9C (reconciliation statement) without fine by up to a week to February 12, 2020 on a plea by the Centre that the move could undermine its efforts to boost GST compliance.
 
RBI issued a draft framework for authorization of a pan-India new umbrella entity (NUE) for retail payment systems. At present, only the National Payments Corporation of India (NPCI), a not-for-profit company, performs this role. The NUE could choose to be a for-profit entity or a not-for-profit as defined under Section 8 of the Companies Act. 
 
18/02/2020
RBI has come up with some changes in operational guidelines for the captioned scheme contained in circular on 'Interest Subvention Scheme for MSMEs'. Under the changes, it has been allowed to submit statutory auditor certificate by June 30, 2020 and in the meantime, to settle claims based on internal/concurrent auditor certificate. 
 
GST: Centre will soon release another Rs 35,000 crore to states to compensate for the revenue loss on account of GST rollout. Under the GST law, states are guaranteed compensation for revenue loss for 5 years if their revenue does not increase 14 per cent on the base year of 2015-16.
 
GSTN has set up a consultation committee to provide feedback on new functionalities in the GST system. Suggestions will be related to policy and technology. The committee, which will include representatives from selected states recommended by the GST Council, member secretary of GSTN, representatives from the CBIC and independent experts, will provide suggestions related to policy and technology. 
 
17/02/2020
MCA has notified the Companies (lncorporation) Amendment Rules, 2020 which shall come into force with effect from the 15th February, 2020. The amendment in Rule 9 prescribes new procedure for reservation or change of name of the company. 
 
SEBI has issued the SEBI (Issuing Observations on Draft Offer Documents Pending Regulatory Actions) Order, 2020 which shall come into force with immediate effect i.e 05-02-2020. 
 
IBC: Supreme Court has directed Dewan Housing Finance Limited (DHFL) fixed depositors to approach the troubled financial service porvider's Committee of Creditors and its Administrator appointed under the Insolvency & Bankruptcy Code, 2016 for release of deposits. 

16/02/2020
Reserve Bank of India governor Shaktikanta Das on Saturday hinted that the central board of RBI may soon decide on aligning its accounting year with the fiscal year of the government.
As of now, the RBI’s accounting year runs from July to June while the government follows the April-March fiscal year.

The government has set the Income Tax Department a target to collect ?2 trillion under the ‘Vivad se Vishwas’ direct tax dispute resolution by end of March although the scheme will run till the end of June 2020. 
The scheme announced in the union budget for FY21, for which the Bill is pending in Parliament, allows beneficiaries to pay disputed tax arrears without interest and penalty if paid before 31 March. In case the tax dispute is over penalty, interest or fee, the settlement amount payable is 25% of the dues if paid before the end of March. There will be a marginal increase in dues to be paid if the tax payer signs up for the scheme after March but before end of June.

15/02/2020
Central Board of Indirect Taxes & Customs (CBIC) in its official Twitter account gave clarification about the interest calculation on delayed payment of net Tax liability. The tweet says “There are some discussions in social media w.r.t. interest calculation on delayed GST payments post a few media reports regarding Rs. 46000 Cr interest on the delayed GST payments to be collected by tax authorities.”
“On this issue of interest calculation, it is clarified that – The GST laws, as of now, permit interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana High Court’s decision dated 18.04.2019 (Document 159736439).“
Such amendment will be made prospectively. The States of Telangana and West Bengal are in the process of amending their State GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country.”

14/02/2020
The government has discovered a new revenue stream to make up for the shortfall in GST collection and is looking to collect ?46,000 crore as interest on late payment of tax.
Tax experts disputed the number saying government had promised to hand-hold the taxpayers at the time of migration to the new indirect tax regime by waiving off interest and penalties for filing their tax returns. Further, it has now resorted to extremely harsh measures to boost its tax kitty.
Moreover, the levying of interest would trigger huge litigations with taxpayers challenging the demand.

The Central Board of Indirect Taxes and Customs has issued notices to some private equity firms, investors, and others who entered into non-compete agreements with sellers.
The indirect tax (I-T) department demands that these firms and investors pay goods and services tax (GST) at 18 percent on the non-compete fee. According to the I-T department, a non-compete agreement is classified as a service provided by the business seller to the buyer.
 
CBDT and SEBI would enter into a Memorandum of Understanding, which inter-alia would include modalities of / exchange of data, maintenance of confidentiality, a mechanism for safe preservation of data, weeding out after usage, etc. about the Assessees.
 
Supreme Court has stayed the Rajasthan High Court order that extended the deadline for filing of Form GSTR-9 (annual return) and Form GSTR-9C (reconciliation statement) without fine by up to a week to February 12, 2020 on a plea by the Centre that the move could undermine its efforts to boost GST compliance.
 
RBI issued a draft framework for authorization of a pan-India new umbrella entity (NUE) for retail payment systems. At present, only the National Payments Corporation of India (NPCI), a not-for-profit company, performs this role. The NUE could choose to be a for-profit entity or a not-for-profit as defined under Section 8 of the Companies Act. 
 
13/02/2020
RBI has come up with some changes in operational guidelines for the captioned scheme contained in circular on 'Interest Subvention Scheme for MSMEs'. Under the changes, it has been allowed to submit statutory auditor certificate by June 30, 2020 and in the meantime, to settle claims based on internal/concurrent auditor certificate.

E- assessment scheme 2019 was introduced to eliminatethe interface between the A. O and the assesse. Main feature of scheme were notified by CBDT vide Notification No. 61 and 62 /2019 dated 12/09/2019.

Gujarat High Court has granted interim relief in the case of interest liability on gross tax payable by restraining the department from coercive action for non-payment of interest amount. 

12/02/2020
Central Board of Indirect Taxes and Customs has launched a revamped and streamlined program to attract investments into India and strengthen Make in India through manufacture and other operations under the bond scheme, under Customs Act, 1962.

SEBI has issued a Master circular on Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of terrorism (CFT) / Obligations of Securities Market Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules framed thereunder.

RBI governor came under pressure at the bank’s board meeting last week, with two external directors questioning how a string of frauds that have surfaced since 2018 remained undetected for years. The two board members referred to the losses suffered by Punjab National Bank, which bankrolled jeweller Nirav Modi and his uncle Mehul Choksi; the multiple irregularities in IL&FS, which came to light after the firm defaulted on payment obligations; and the recent failure of Punjab & Maharashtra Coop (PMC) Bank — 70% of whose loan book was cornered by Mumbai-based realtor HDIL.

11/02/2020
Importers and exporters will have to mandatorily declare GSTIN in documents from February 15 as the revenue department moves to crackdown on evaders and plug Goods and Services Tax revenue leakage. In a circular, the Central Board of Indirect Taxes and Customs (CBIC) said certain cases have come to notice where the importer or exporter did not declare their GSTIN in the Bill of Entry/Shipping Bill despite being registered with GSTN. GSTIN is a 15-digit PAN-based unique identification number allotted to every registered person under GST.

While importers have to fill Bill of Entry with Customs department while importing goods, exporters have to file Shipping Bill. “With effect from February 15, 2020, the declaration of GSTIN shall also be mandatory in import/export documents for the importers and exporters registered as GST taxpayers,” the circular said.
While importers are paying IGST on imports but not claiming credit for the same. This essentially means that the supply of imported goods to domestic channels is being done without a bill.
A similar situation has been witnessed on cess charged on luxury and sin goods with companies paying it at the time of imports but not claiming credit or setting it off from final GST paid by consumers. 
Further, exporters have also been asked to provide details of the state and district of origin of goods and details of preferential agreements under which goods are being exported in the shipping bill.

10/02/2020
Income Tax Appellate Tribunal (ITAT) has reversed decisions given in favour of seven companies by the Commissioner of Income Tax (CIT) appeals office at Nagpur, in cases involving allegedly suspicious entries of share capital and share premium.

Income Tax Appellate Tribunal (ITAT) of Bangalore has allowed a claim of deduction under section 54/54F of the IncomeTax Act on a house purchased by the assessee outside India.

09/02/2020
Income Tax Amounts involved in personal income tax (PIT) disputes could jump by a massive Rs 2.5-3 lakh crore in the current financial year from close to Rs 4 lakh crore at the end of FY19 for the sole reason of post-demonetsation cash deposits in banks by about 90,000 individuals that have to date remained unexplained by them to the taxman’s satisfaction.

Direct Tax Vivad Se Vishwas Bill, 2020, seeks to cut down on nearly 4.8 lakh tax disputes involving an amount of Rs 9.32 lakh crore (up to November 30, 2019) by giving the taxpayers the facility to escape interest on the disputed tax amount and any penalty. All direct tax-related cases pending before the Commissioner (Appeals), Income Tax Appellate Tribunal, high courts or the Supreme Court as on January 31, 2020 are eligible for the scheme. The scheme provides that if a taxpayer avails it by March 31, 2020, then he would get complete waiver of interest and penalty.

Direct tax dispute settlement scheme will not cover cases related to undisclosed overseas assets initiated on the basis of information from another country. Neither will it apply to prosecutions under the Prevention of Money Laundering Act (PMLA), the Benami Transactions (Prohibition) Act and the income tax Act.

Direct Tax Vivad se Vishwas Bill, 2020 for dispute resolution related to Direct Tax, which provides for following:—
(a) Provisions of the Bill shall be applicable to appeals filed by taxpayers or Government, which are pending with  CIT (Appeals), ITAT, HC or SC as on 31.01.2020 irrespective of whether demand in such cases is pending or has been paid;
(b) pending appeal may be against disputed tax, intt or penalty in relation to an assessment or reassessment order or against disputed interest, disputed feeswhere there is no disputed tax. Appeal may also be against the tax determined on defaults in respect of TDS or TCS;
(c) in appeals related to disputed tax, declarant shall only pay whole of disputed tax if payment is made before 31.03.2020 and for payments made after the 31.03.2020 but on or before the date notified by CG, amt payable shall be increased by 10% of disputed tax
(d) in appeals related to disputed penalty, disputed intt or disputed fee, amt payable by declarant shall b 25%. of  disputed penalty, disputed intt or disputed fee, if payment is made on or before 31.03.2020. If payment is made after 31.03.2020 but on or before date notified by Central Government, amt payable shall b increased to 30% of disputed penalty, disputed intt or disputed fee.

08/02/2020
GST: BIG Relief Direction to file GSTR 9 and 9C without late fees till 12th Feb by Hon’ble Rajasthan High Court in PIL filed by TBA, JODHPUR vs UOl In PIL No 1805/2020.

Direct tax collection target has been downward revised to Rs 11.80 lakh crore in the Union Budget after making a "realistic assessment" of various economic factors. The set target for revenue collection (personal income tax, corporate tax and others) was Rs 13.35 lakh crore for the FY 2019-20. 

07/02/2020
Employer's contribution exceeding Rs 7.5 lakh in a financial year to retirement funds such as Employees Provident Fund (EPF), National Pension System (NPS), or any other superannuation fund is proposed to be made taxable in the hands of the employee.

Budget Tax Audit Requirement -U/S 44AB of the Income Tax Act, every person carrying on a business or profession is required to get its accounts audited if the total sales, turnover or gross receipts in business exceed INR 1 Cr or, in case of a profession, exceed INR 50 Lac in any previous year. To reduce the compliance burden on small and medium enterprises, it is proposed that the threshold limit for persons carrying on business shall be increased from Rs 1 Cr to 5 Cr provided the aggregate of; 

all receipts including sales, turnover and gross receipts in cash does not exceed 5% of total receipts; and 

all payments including expenditure in cash does not exceed 5% of total payments. 

However, in the case of individuals or HUF, for the purpose of tax withholding compliances under section 194A, 194C, 194H, 194I, 194J and 206C of the Act, the aggregate limit has not been changed: INR 1 Cr in the case of business and INR 50 Lacs in the case of professionals (in the preceding financial year). This proposed amendment will be effective from 1 April 2020.

06/02/2020
Net direct tax collections so far this financial year were Rs 7.3 lakh crore against Rs 7.7 lakh crore in the corresponding period in FY19, finance ministry officials said. This implies a shortfall of about Rs 40,000 crore or over 5%. 

Penalty for Non – Filling of GSTR-9C within due date the taxpayer has to pay Rs. 25000/- as no specific clause for it. thus general penalty RS 50000/- 9C and Gstr-9( 100+100=200) per day max. Upto 0.25% of total turnover of that year including amendment made by dealer(Gstr-9 penalty)

05/02/2020
Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed. 

Gujrat High Court in the case of Mohit Mineral Pvt. Ltd. v. UOI has declared levy of IGST on ocean freight & corresponding notifications as ultra-vires the IGST Act, 2017 for lacking legislative competence and also declared these notifications as unconstitutional. It is concluded that no IGST is leviable on the ocean freight for the services provided by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.

04/02/2020
 MCA is expected to take a major step to revamp the auditor’s report that accompanies company balance-sheets, placing more onus on statutory auditors to fulfill their professional responsibilities. The move is expected in February. Besides overhauling the Companies Auditors Report Order (CARO), the government is also likely to make changes to the secretarial audit reporting that is mandated under the company law. 

National Company Law Tribunal, Cuttack has granted post-facto approval in terms of Section 33(5) of Insolvency & Bankruptcy Code, 2016 to a Liquidator for initiation of a legal proceeding on behalf of the corporate debtor. 

03/02/2020
SEBI has specified the uniform structure for imposing fines as a first resort for non-compliance with LODR regulations and the standard operating procedure for suspension and revocation of trading of specified securities.

01/02/2020
Income Tax : Compliances on S. 269SU read with Rule 119AA
- It is applicable only to those assesses whose sales / turnover / gross receipts exceeded Rs. 50 Crores in preceding FY i.e. FY 2018-19. It should not include GST.
- The prescribed modes have to be made available by 31st January 2020 to avoid penalty of Rs. 5000/- per day w.e.f. 1st February 2020
- As per the language of the law, the assessee has to provide the prescribed facility of ALL THREE MODES i.e:
  (i)  Debit Card powered by RuPay;
  (ii)  Unified Payments Interface (UPI) (BHIM-UPI); and
  (iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code).
- The assessee should further fill the functionality which is enabled in the e-filing login of the assessee whose business turnover exceeded Rs.50 crores.

Net direct tax collections so far this financial year were Rs 7.3 lakh crore against Rs 7.7 lakh crore in the corresponding period in FY19, finance ministry officials said. This implies a shortfall of about Rs 40,000 crore or over 5%. 

29/01/2020
Penalty for Non – Filling of GSTR-9C within due date the taxpayer has to pay Rs. 25000/- as no specific clause for it. thus general penalty RS 50000/- 9C and Gstr-9( 100+100=200) per day max. Upto 0.25% of total turnover of that year including amendment made by dealer(Gstr-9 penalty)

Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed. 

28/01/2020
Gujrat High Court in the case of Mohit Mineral Pvt. Ltd. v. UOI has declared levy of IGST on ocean freight & corresponding notifications as ultra-vires the IGST Act, 2017 for lacking legislative competence and also declared these notifications as unconstitutional. It is concluded that no IGST is leviable on the ocean freight for the services provided by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.

MCA is expected to take a major step to revamp the auditor’s report that accompanies company balance-sheets, placing more onus on statutory auditors to fulfill their professional responsibilities. The move is expected in February. Besides overhauling the Companies Auditors Report Order (CARO), the government is also likely to make changes to the secretarial audit reporting that is mandated under the company law. 

National Company Law Tribunal, Cuttack has granted post-facto approval in terms of Section 33(5) of Insolvency & Bankruptcy Code, 2016 to a Liquidator for initiation of a legal proceeding on behalf of the corporate debtor. 

SEBI has specified the uniform structure for imposing fines as a first resort for non-compliance with LODR regulations and the standard operating procedure for suspension and revocation of trading of specified securities.

Employer could soon start deducting 20 per cent of salary in case employee fail to provide PAN and Aadhaar details to them. This latest rule of the CBDT, which came into effect on January 16, will be applicable for all those who earn above Rs 2.5 lakh per annum. 

Chief Justice of India S A Bobde on made a case for speedy resolution of tax disputes saying it will act as an incentive for taxpayers and free the funds locked in litigation. Chief Justice said tax judiciary plays a very important role in resource mobilisation of the country and expressed concern over pendency of cases.

Delhi bench of the National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution proceedings (CIRP) against a Lotus Greens Group Company, the Gurgaon-based Bright Buildtech Pvt. Ltd.

Maharashtra Real Estate Regulatory Authority (Maha-RERA) has ruled that open parking spaces fall within the definition of common areas in the Real Estate (Regulation and Development) Act, and hence developers cannot charge homebuyers for them.

Haryana Real Estate Regulatory Authority will take action against those brokers who are selling properties without a licence in the state.

Supreme Court has set aside the order of National Consumer Dispute Redressal Commission which directed them to jointly pay punitive damages of Rs One Crore for alleged unfair trade practice in relation to the quiz show 'Kaun Banega Crorepati(KBC). 

27/01/2020
Sources with direct knowledge of the development said income and corporate tax collections are likely to miss FY2020 targets by as much as Rs 1.5 lakh crore while indirect taxes may fall short by about Rs 50,000 crore on drop in the Goods and Services Tax (GST) in a sluggish economy.
The exchequer was shaved off Rs 1.45 lakh crore as the government slashed corporate tax rates up to 10 percentage points, the biggest reduction in 28 years. Base corporate tax for existing companies has been reduced to 22 per cent from 30 per cent, and to 15 per cent from 25 per cent for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023.

If provident fund (PF) withdrawal or PF transfer is getting stuck due to the missing date of exit in the EPFO system, here’s a piece of good news. The Employees’ Provident Fund Organisation (EPFO) has introduced a facility in the Unified Portal wherein the employee can enter the date of exit from the previous or the last employer by oneself. Till now, only the employers had the authority to enter or update the exit date of the employee. However, from now onwards even the employee after leaving an organization or company can enter the date of exit.

26/01/2020
Tax Invasion is a Social Injustice to fellow citizens - CJI. Chief Justice of India has said that the Tax Invasion is a Social Injustice to follow citizens and arbitrary or excessive tax is also results in injustice to tax payers

GST authorities to block GST Credit of over 1,000 Taxpayers who have allegedly claimed more credit than they were eligible for.

Continue to file GSTR-3B by 20 of next month if turnover in last year exceeds 5cr. For others, due date to be 22/24 of next month as per State of Registration. Proposal wef April 2020

Sebi put in place a stricter mechanism to deal with non-compliance of listing conditions under which stock exchanges will have powers to slap penalties up to Rs 50,000 for certain violations. At present, a stock exchange is allowed to charge a maximum amount of Rs 10,000 for each violation of listing norms that need to be complied with by companies.
 
Reserve Bank of India on Wednesday defended in the Supreme Court its 2018 circular directing banks to desist from dealing in any transactions involving crypto currencies, insisting that it had always been consistent in its opposition to allowing any other payments systems and undermining the integrity of the banking system.
 
Real Estate Regulatory Authority (RERA) in Karnataka may soon have the judicial powers, similar to what is enjoyed by the consumer forum.
 
Delhi High Court has held that applications filed for seeking permission to sell a vehicle seized by the bank in cases of default cannot be kept pending for long and should be disposed of within 60 days.

25/01/2020
Direct tax collections till January 15 stood at Rs 7.3 lakh crore, down 5.2% from the year-ago period. There is no precedent of a contraction in direct tax growth at least in recent history. Gross direct tax collections — after refunds but before devolution to states — for FY20 is budgeted to grow at 17.4% to Rs 13.35 lakh crore. 

?GSTR-3B due dates for Delhi (07) now rescheduled:- 1) For Annual Turnover Rs. 5 crore or more in previous financial year - 20th of next month. 2) For Annual Turnover up to Rs. 5.00 crore in previous financial year - 24th of next month.

24/01/2020
Kerala High Court in the matter of Kannangayathu Metals decided that if transportation vehicle is carrying proper E way bill and Tax Invoice but the truck driver has taken some other route to reach the destination, vehicle and goods cannot be detained solely because driver has opted for a different route.

GST Network said a total of 65.65 lakh returns for December were filed till January 20, out of which 13.30 lakh returns were filed on the last day itself. “There have been few issues about one-time passwords (OTPs) being received with some time lag on account of delay by the email service provider or local internet issues. 

Calcutta High Court held that the corporate insolvency resolution procedure enumerated under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be used as a tool to curtail any claim which arose prior to the commencement of the insolvency proceedings.  

Allahabad High Court has upheld the constitutional validity of section 164(2) of the companies Act 2013, which stipulates that a Director whose company has not filed Financial Statements or Annual Returns for any continuous period of three financial years, shall be disqualified from holding the position for five years

23/01/2020
?Bombay High Court In the case of ? PCIT vs. Pinaki D. Panani  Even if the purchases made by the assessee are to be treated as bogus, it does not mean that entire amount can be disallowed. As the AO did not dispute the consumption of the raw materials and completion of work, only a percentage of net profit on total turnover can be estimated  (Favour of Assessee). 

Jaipur ITAT quashes the final assessment order passed without issuing draft assessment order u/s 144C of the Income Tax Act, 1961 (‘Act’). Jaipur ITAT notes that the TPO had made additions pertaining to domestic transactions and assessee was an eligible assessee as defined u/s 144C(15). Further, it was held that service of draft order was not merely a procedural requirement but a mandatory procedure to be followed by the AO– Jhandewala Foods Limited vs ACIT 

GST Taxpayer not entitled to additional GST due to faulty contract clauses. HC of Kerala dated 20th March, 2019 regarding levy and collection of tax in case of Jilmon John V. State of Kerala [2019] 112 taxmann.com 62. 

GST :Goods and Transport vehicle cannot be detained by the department on the ground of non filing of GSTR 3B and GSTR 1 ( Ref : Relcon Foundation Pvt Ltd - Kerela High Court )

22/01/2020
DIRECTORATE GENERAL OF GST INTELLIGENCE (HQRS) F.No. 587/CE/167/Po1/2019/11219-11269 dated 13.01.2020 regarding Blocking of Input Tax Credit under rule 86A(1)(a) of CGST.

 Central Goods & Services Tax (CGST) administration has started blocking input tax credit (ITC) for assessees who availed credit against fake invoices, or against invoices without the receipt of goods or services, or both.

Revenue department has set a target of Rs 1.18 lakh crore of average monthly Goods and Services Tax (GST) collection in the remaining three months of the fiscal (January-March) and has asked the indirect tax department to specially focus on fraudulent input tax credit (ITC) claims as revealed in data analytics review.
 
GST authorities have zeroed in on about 40,000 companies for claiming excess or wrongful tax rebates, who will now be pursued for recovery of tax dues. If the authorities are not able to recover tax dues from the identified companies with the electronic communication such as emails and text messages, they will be visited by officials and further steps will be taken. 
 
Ahmadabad bench of National Company Law Tribunal has admitted  a petition filed by IDBI bank to initiate corporate insolvency  resolution process (CIRP) against Anil Ambani's Reliance Naval and Engineering Limited (RNEL) for failing to repay the debt.

21/01/2020
Central Government agreed to take over troubled real estate giant Unitech to streamline the management of the company which is in a financial  mess caused by siphoning off of more than 50% of money deposited by individuals and financial institutions.
 
Reserve Bank of India has included the National Population Register letter as an officially valid document (OVD) for Know Your Customer (KYC) verification for opening bank accounts or applying for credit cards. The Reserve Bank of India has also allowed a video based customer identification process for verification.  

20/01/2020
Change of address in PAN database by assessee is mandatory. Notice u/s 143(2) served on the address given in PAN is sufficient: Supreme Court

RBI issues new debit and credit card rules to improve convenience and security of card transactions
 
Govt saves Rs 350 Cr fake IGST refund due to untraceable of over 1200 exporters. Revenue Dept using its data analytics has discovered a fraud in GST refunds with as many as 1,200 exporters, who have have claimed Rs 350 crore refunds, are now untraceable

Budget may make faking input tax non-bailable crime for buyers too. Govt is likely to make fraudulent claims for input tax credit a non-bailable offence in the hands of recipients of goods and services in the February 1 budget by tightening the GST law

19/01/2020
CBDT has issued Circular No. 4/2020 dated January-16-2020 detailing out all Comprehensive Guidelines for Deduction of TDS on Salaries by the Employers for the Financial Year 2019-2020. 

Income tax department has started questioning the local subsidiaries of several multinational companies to ascertain whether they have foreign operations managed from India. In cases where this is established, the department wants them to pay tax here on their income from such operations. It has already issued notices to the subsidiaries of several MNCs. 

Insolvency and Bankruptcy Board of India has mandated liquidators of transfer unclaimed dividends or proceeds generated during a voluntary insolvency process into a designated account before applying for dissolution of the company.

18/01/2020
National Company Law Appellate Tribunal (NCLAT) on Thursday said it will provide a formula for proceeds distribution among the creditors of debt-ridden IL&FS group firms.

Delhi Commissioner VAT has opened the portal for filing of Form 9 for the year 2015-16. 

17/01/2020
Cabinet will soon consider a proposal to amend the Companies Act to decriminalize about 44 of 66 offences, including corporate social responsibility (CSR) violations and non-filing of returns. It will also consider easing remuneration norms to allow loss-making companies to offer higher salaries to key managerial personnel. 

Delhi High Court has recapitulated the law with respect to the liability of Independent, Non-executive directors of the Company in complaints filed under Section 138 of NI Act 1881, for the dishonor of cheque.
https://www.livelaw.in/know-the-law/can-independent-non-executive-directors-of-a-company-be-arrayed-as-accused-in-proceedings-against-dishonor-of-cheque-delhi-hc-answers-read-judgment-151669  

16/01/2020
Kerala high court has tried to clear the air over the contentious issue of composite supplies under the Goods and Services Tax (GST) which experts say may become guiding principles to decide cases in litigation. If more than one good or service are supplied by a company, these could be considered composite or mixed under the GST system.

Ministry of Corporate Affairs is set to notify new rules for the treatment of third party assets of a stressed financial company under the Insolvency and Bankruptcy Code.  

Government appointed Michael Debaprata Patra as the deputy governor of the Reserve Bank of India (RBI). The appointment of Patra, who is currently an executive director at the central bank, comes nearly six months after former deputy governor Viral Acharya’s pre-mature resignation.  

15/01/2020
Securities Appellate Tribunal (SAT) on January 14 upheld the fine of over Rs 2,423 crore levied by markets regulator SEBI on four directors of PACL Ltd for illegal fund mobilisation through various schemes from public. 

Bombay High Court has appointed a committee for speedy disposal of assets of Housing Development and Infrastructure Ltd.—a borrower to crisis-hit Punjab and Maharashtra Cooperative Bank. The three-member committee will determine how proceeds from the sale of the properties will be used.

14/01/2020
Income tax department now wants to know not only about your earnings and investments but also about your expenses in new income tax return (ITR) forms. Although the finance ministry has relaxed eligibility conditions for filing ITR-1 and ITR-4 forms, yet no changes have been made in the new ITR forms which were notified last week. 

GST: Banks, airlines, insurance companies, armed forces and telecom service providers are likely to be exempted from mandatory issuing of e-invoices under goods and services tax. 

12/01/2020
ITR 1 & 4 AY 2020-21 can be used if assessee owns joint property. ITR-1 can be used if electricity/travel expenses or deposits in current accounts exceed threshold.
 
Finance Ministry on Friday extended deadline to avail waiver of late fee chargeable on GSTR-1 pertaining to period from July 2017 to November 2019 from 10 January to 17 January.
 
Sebi came out with guidelines for entities for operating as investment advisers in International Financial Services Centre (IFSC), under which such advisers need to have a net worth of at least USD 1.5 million. The decision has been taken following the representations received from various stakeholders, the Securities and Exchange Board of India (Sebi) said in a circular. 
 
11/01/2020
Sebi is considering relaxing the March 31 deadline for listed companies to separate the positions of chairman and managing director (CMD). While the market regulator gave ample time to India Inc to adhere to the rule, not many corporate houses have complied with it. 
 
RBI decided to permit video-based KYC (Know Your Customer) which will be a huge relief to map remote customer authentication, as opposed to physically on boarding customers. The provision allows an officer of the institution to remotely vet a customer’s identity through PAN or Aadhaar and a few questions.

10/01/2020
GST Department to Audit 70% of Taxpayers for AY 17-18. GST authorities have begun issuing notices for the tax audit exercise, which involves detailed scrutiny of the accounts and records for FY18. Tax authorities have issued notices seeking audit of accounts and records from July 2017 till March 2018, the first year of GST implementation.

MCA has extended the time offered to companies to provide information about persons who control 10% or more stake in the entity by 3 months. The process of informing the MCA about significant beneficial owners (SBOs) is part of the exercise to bring in more transparency about persons with significant control over a firm.

National Company Law Tribunal on warned Jet Airways (India) Ltd. Committee of Creditors of contempt proceedings if they do not release interim funds to the resolution professional by Jan. 20 for completion of insolvency proceedings.

RBI is planning to auction distressed private banks that are under the Prompt Corrective Action (PCA) framework for a prolonged period, the Business Standard reported. This is part of the RBI’s plan to have a different rule book for distressed banks. 

09/01/2020
As per section 55A of SEBI Act and Mca Notification dated 22-05-2019, every limited company is required to get Demat registration with nsdl/ cdsl and obtain ISIN. Also with the amendment in section 29 of the Companies act 2013, the word public has been omitted. Hence, private companies may be required to obtain ISIN as well.

A number of trusts set up in overseas tax havens using a complex maze of entities have come under the scanner of Indian and Swiss authorities for suspected tax evasion by parking of illicit funds in Switzerland-based banks, as per notices issued to those entities. In addition, several individuals who are suspected to have moved abroad after evading taxes back in India are also being probed and their banking details are in the process of being shared by the Swiss authorities with their Indian counterparts.

08/01/2020
GST: Medicines/consumables used in the course of providing health care services is ‘composite supply’, exempt from GST. CMC Vellore Association, (AAR - TAMILNADU). 

Revenue Department has brought to the notice of the Directorate General of Foreign Trade (DGCF) instances of ‘mis-availment’ of Integrated Goods & Services Tax (IGST) refunds, based on fake invoices, by some exporters holding ‘star’ status. It has also advised the DGFT, under the Commerce Ministry, to make the exporters’ accreditation system more robust.

Tax authorities step up heat on erring businesses with GST Audit. GST authorities have started audit of businesses for FY18, the year of the indirect tax reform, indicating that erring assessees will now be held accountable for lapses in tax payment and record keeping

06/01/2020
This is to bring to your notice that a committee headed by Union Home Minister, Mr. Amit Shah has been constituted to strengthen legal framework around sexual harassment at workplace.
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013" or ("POSH Act 2013"), that could shortly be followed by an audit by regulatory authorities.   
The POSH Act 2013 is applicable to all companies operating in India and below are the compliances which companies have to perform:
1.    create policy and service rules,
2.    form Internal Complaints Committee (“IC”) at all operating locations (with more than 10 employees),
3.    conduct annual training for IC and employees,
4.    Annual/periodic filing with respective authorities.       

MCA adds Additional criteria for requirement of Secretarial Audit if outstanding loan or borrowings from banks or PFIsis RS 100 Cr. Or more. Notf dtd 03.01.2020
MCA increases Threshold Limit for requirement to appoint of CS in Pvt. Ltd. From Rs. 5 Cr. to Rs. 10 Cr. MCA notification dtd. 3rd January,2020

05/01/2020
CBDT Further gives Extension of time limit of 12 months for applying for Compounding of Offences under Income Tax Act till 31.1.2020. Circular 1/2020-Income Tax of 3.1.2020.

CBDT has notified Rule 119AA of Income tax Rules, 1962 mandating businessmen with Turnover more than INR 50 crores to have facility to accept payment through Rupay Debit Card, BHIM-UPI, UPI QR Code w.e.f. 01.02.2020 otherwise penalty may be levied for INR 5,000 per day.

CBDT releases ITR 1 and ITR 4 for FY 2019-20 (AY 2020-21) vide notification no. 01/2020 dated 
3 January 2020.

No Income Tax is required to be paid by a Professional with Turnover upto INR 10 Lakhs since FLAT 50% will be deemed as Income and hence, No tax will be levied since the Exemption Limit applicable will be INR 5 Lakhs for F.Y. 2019-20 (including 87A Limit)

GST amendments have been made effective w.e.f. 01.01.2020:

Aadhar Authentication has been made mandatory for GST Registrations.
Mandatory online modes of accepting payment also inserted in GST as inserted in Section 269SU of Income tax Act.
Transfer of Cash Ledger balances on the common portal within Major and Minor Heads has been allowed.
Penalty of 10% has been introduced under anti-profiteering provisions.
New SEZ Registrants needs to provide SEZ related information in REG-01.
TRAN-1 and TRAN-2 dates extended for taxpayers facing “technical issues” to 31.03.2020 and 30.04.2020* respectively.

GST: As a one-time measure to enable taxpayers to clear the backlog of all #GSTR-1 which have not been filed from July 2017 to Nov 2019, a late fee waiver till 10.01.2020 (vide NN 74/2019 dt. 26.12.2019) has been provided.

04/01/2020
E-commerce cos may get to upload GST e-invoice for vendors
In a significant relaxation for the ecommerce sector, the government could allow online platforms such as Amazon and Flipkart to upload e-invoice for vendors under the goods and services tax (GST) framework. As part of ongoing trials of e-invoicing, a detailed set of clarifications in the form of frequently asked questions have been issued. “Ecommerce operator can request for e-invoice on behalf of supplier,” the clarification said. The matter has been taken up by the government and could be allowed once the trial period is over. Voluntary uploading of e-invoices on the GSTN portal kicked off from January 1, for businesses having turnover over Rs 500 crore. For businesses having annual turnover over Rs 100 crore will be effective from February 1. Only 10,000 line items per e-invoice would be allowed, as per the FAQ. Foreign services providers will have to set up local entities to integrate with the invoice registration portal (IRP), as per the FAQs.

Revenue secretary, tax commissioners to meet on streamlining GST system
To streamline Goods and Service Tax (GST) system and refunds, enhance GST compliance and discourage tax evaders, commissioners of state tax and chief commissioners of central tax are scheduled to hold a daylong brainstorming session, under the chairmanship of Revenue Secretary Ajay Bhushan Pandey, in New Delhi on 7 January. GST collections crossed the ?1 trillion mark for the second consecutive month in December but missed the target of ?1.1 trillion for the month set by the finance ministry. The central government has beefed up efforts to boost GST revenue collections as both tax and non-tax revenue collections so far this fiscal have been well below expectation. Discussions in the meeting would focus on the road ahead with e-invoicing, new return system and feedback, e-way bill linking with FASTag, pendency of refunds, linkage of Aadhaar to GST registration and the QR code. 

AI, data analytics to track GST evaders, boost compliance
The government plans to increase the use of artificial intelligence and data analytics to track down tax evaders, and improve compliance with the Goods and Service Tax in order to augment revenue.
Top tax officials are scheduled to participate in a brainstorming session to be chaired by revenue secretary Ajay Bhushan Pandey next week to firm up this plan.
The revenue secretary will hold a day-long meeting on January 7 with tax commissioners to discuss ways to streamline the GST system and plug leakages due to fraud,” said a person aware of the development.

CBDT extends deadline for compounding of income tax offences till Jan 31. CBDT has extended till January 31 the last date for taxpayers to avail a "one-time" facility to apply for compounding of income tax offences
 
Bank employees to go on nationwide strike on Jan 8. Normal banking services at bank branches and ATMs are likely to be impacted as major bank unions have decided to resort to an all-India general strike on January 8

03/01/2020
CBDT to fine businesses Rs 5,000/day for not using digital payment facilities
From February 1, businesses will be fined Rs 5,000 per day if they fail to accept payments through digital payment facilities - CBDT

CBDT further extends the timeline for Linking PAN with Aadhaar from 31st December,2019 to 31st March,2020.Notification No. 107/2019

No anticipatory bail, GST violators can be arrested without FIR, clarifies SC


02/01/2020
Startups can get Company Identification Number (CIN), PAN, GSTIN, EPFO No & Employer Code under ESIC in one application at MCA portal through SPICE-AGILE Form.

MCA has extended due date of filing Form BEN-2  and BEN-1 without late fees to 31.03.2020. General Circular No. 1/2020.

MCA has extended due date of filing CRA-4 (Cost Audit Report) for F.Y. 2018-19 without late fees to 29.02.2020. General Circular No. 17/2019.

Wef 11.01.2020, e-way bill will not be generated even if GSTR-1 is pending. File all pending GSTR-1 since Jul 17 to Nov 19 by 10.01.2020 without late fee.

01/01/2020
May God bless all with a happy and prosperous new year 2020
 
     
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