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Our updates
30/12/2019
The Central Board of Direct Taxes (CBDT) has extended the due date for linking of permanent account number (PAN) with Aadhaar from 31st December, 2019 to 31st March, 2020.
This is the third time the due date has been extended.
E way bill portal is blocked for non filing of Gst 3B. In future, it will also be blocked for non filing of Gstr 1 for consecutive two periods
29/12/2019
Gst ITC limit under rule 36(4) of 20% reduced to 10% with effect from 01st Jan 2020
31.12.19 is last day to avail Sabka Vishwas Scheme 2019, file BEN-2 (Disclosure of Significant Beneficial Owners by specified Cos)
28/12/2019
The OTP-based cash withdrawal system shall be active across all SBI ATMs effective 1 January 2020
The facility will not require any major change in the present process to withdraw cash from SBI ATMs
CBDT instructs all CITs(A) to dispose of more than 20,000 Appeals which are PENDING for more than 5 years, on or before March-31-2020.
Surat ITAT: Payment made by resident Indian company to a foreign national (hired as ‘Technical Advisor’ in personal capacity) was held to be Fee for Included Services (under Article 15 of India Korea DTAA) and not Fee for Technical Services (under Article 13 of India Korea DTAA). Such payment was held to be non-taxable in India and accordingly not liable to TDS. [J.Korin Spinning Pvt. Ltd. vs ITO (Intll. Tax) ITA No. 2734/AHD/2016]
27/12/2019
Gst notifications and order issued on 26-12-2019:
Not no 74- Gstr 1 late fees waived for Period July 17 to Nov 19 if filed between 19-12-19 to 10-1-20; clarification awaited for Gstr 1s filed late but prior to 19-12-19
Not. no 75- restrictions on use / Debit of electronic credit ledger in case of non existent or fraudulent parties.
Not. no 76- Gstr 1 date extended to 31-12-19 for Nov 19 for north eastern states with more than 1.5 crores turnover.
Not no 77- Gstr 3B date for Nov 19 extended to 31-12-19 for north east states.
Not no 78- gstr 7 date extended to 25-12-19 for north east states. Order no 10- extension of annual return date to 31-01-2020.
Income Tax Section 148 notice in the name of deceased assessee is invalid. Case Name : Pranav Ravindrabhai Shah Vs ITO (Gujarat High Court)
Income Tax Section 271C applies to both situations failure to deduct and pay TDS to the Government. Case Name : Eswar Exports Vs Add. CIT (ITAT Visakhapatnam)
26/12/2019
Cabinet approves Promulgation of the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019. The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved a proposal to promulgate an Ordinance and to amend the Insolvency and Bankruptcy Code, 2016.
New registrations by taxpayers being verified by GST council. The new taxpayers, who are 66.7 lakh in number, hardly pay 15% of tax. So, whatever taxes we are getting from them is only 15% of taxes, which is about Rs 10,000 Cr
Glitches in ITR processing lead to bloated tax liability on capital gains. Hundreds of taxpayers are believed to have received notices from the income tax department whose systems are unable to process the tax returns correctly. This has led to bloated tax liability on capital gains and denial of credit for TDS
Technical limitations cannot be ground to deny input tax credit under GST - Delhi High Court has said that the rights of GST assessees ‘cannot be subjugated’ to the poor and inefficient software systems adopted by the authorities
25/12/2019
GST Circular no 129 dated 24-12-19 issued detailing Standard guidelines for non-filers of returns
System generated reminder to be sent 3 days before the due date for filing the return
Auto generated mail to be sent after the due date to all the non-filers
Within 5 days, notice GSTR 3A would be issued electronically to file returns within 15 days
After 15 days, best judgement assessment (in ASMT 13) is done with the available details
Returns filed within 30 days from the date of assessment in ASMT 13, would be deemed to be dropped
Recovery proceedings would be initiated against non-filers
24/12/2019
All PAN cards which are not linked to Aadhaar cards will become inoperative or invalid from January as the income tax department has made it mandatory to link the two identity documents with each other. The linking deadline has been extended till December 31. After the last date i.e. January 1, all such Permanent Account Numbers (PAN) not linked to any Aadhaar cards will be of no use.
Reserve Bank said that on a peer-to-peer lending (P2P) platform the permissible exposure of a lender to all borrowers should not exceed Rs 50 lakh at any given point of time provided that such investments of the lenders on P2P platforms are consistent with their net-worth.
DGFT has notified the amended Import policy of gold in any form, other than monetary gold and silver in any form is now changed from 'Free to Restricted'.
23/12/2019
The Pension Fund Regulatory Development Authority (PFRDA) has revised the valuation guidelines under NPS schemes and other Pension schemes administered by it.
Finance Ministry has declined to share Swiss bank accounts details of Indians saying it is covered under "confidentiality provisions" of a tax treaty signed between India and Switzerland. the ministry also refused to disclose the details of black money received from other foreign countries.
22/12/2019
MCA in exercise of the powers conferred by section 435 of the Companies Act, 2013 and with the concurrence of the Chief Justices of the High Court of Uttarakhand, Nainital and High Court of Jammu and Kashmir has designated the Courts as SpecialCourts.
The International Financial Services Centers Authority Act, 2019 covering 6 chapters & 34 sections, has received the assent of the President on the 19th December, 2019. As the banking, capital markets and insurance sectors in IFSC are being regulated by multiple regulators viz. RBI, SEBI, Pension Fund Regulatory and Development Authority (PFRDA) & IRDAI.
Supreme Court held Insolvency & Bankruptcy Code overrides Tea Act,1953 and even without such consent of the Central Government, the insolvency proceedings under Section 7 or Section 9 of the IBC initiated by the operational creditor should be maintainable.
21/12/2019
Central Board of Direct Taxes (CBDT) has extended the applicability of Circular no. 7 of 2018 and authorized the Commissioners of Income-tax to admit belated applications in Form No. 9A and Form No. 10 for Assessment Year 2017-18 as well.
CBDT has extended the due date for payment of TDS under Section 194M during September 2019 and October 2019 from 31-10-2019 and 30-11-2019 respectively to 31-12-2019.
Audit Report in Form 10DA u/s 80JJAA of IT Act revised to show proper details of deduction in respect of new employees. Notification 104/2019-IT of 18.12.19.
20/12/2019
CBIC has mandated Quick Response (QR) code on e-invoicing, whose aggregate turnover in a financial year exceeds five hundred crore rupees.
Goods and Services Tax compensation requirement of nine major states could be as much as Rs 70,000 crore in fiscal 2020, ratings firm ICRAhas estimated. This would put significant pressure on the central government’s accounts which are already under stress from the cut in corporate tax rate and other stimulus measures.
Dewan Housing Finance Corporation (DHFL) is said to have received total claims of about Rs 1.2 lakh crore from creditors after the Reserve Bank of India (RBI) referred the indebted nonbanking finance company (NBFC) for debt resolution.
19/12/2019
GST Highlights of 38th GST Council Meeting:
Due date for filing GSTR 9 and GSTR 9C for 2017-18 has been extended from 31.12.2019 to 31.01.2020.
Late fees Waived for all tax-payers who have filed GSTR-1, if all returns are filed by 10th Jan 2020.
The Central GST collection fell short of the Budget Estimate by nearly 40 percent during the April-November period of 2019-20, according to government data.
No GST rate hike was discussed in the GST Council meeting. Council decides to levy 28 percent on all lotteries. Land lease GST rates to be effective from January 1, 2020.
Levy of penalty relaxed for non-filing of GSTR-1 from July 2017.
GST Council has agreed to rationalise GST rates on woven and non-woven bags to 18 percent with effect from March 1, 2020.
The Council decided that input tax credit will now be restricted to 10 percent as against 20 percent earlier if invoices not uploaded.
18/12/2019
Fifteenth Finance Commission chairman NK Singh said the newly-created Union Territory of Jammu and Kashmir (J&K) won’t have a share in devolution of Central taxes as states do, but will receive only grants like other UTs, starting FY21
CBIC notifies provisions to introduce GST e-invoicing (B2B) and QR Codes (B2C). The CBIC has issued various Notifications dated December 13, 2019, to make changes in the procedure of issuing invoices by a specified class of registered person’s w.e.f. April 1, 2020.
No Extension of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 after Dec 31, 2019: CBIC
Central Govt After a delay of over two months, released Rs. 35,298 crore as GST compensation to the states for the August-September period. The move comes two days before the GST Council meeting to be held here to discuss various issues, including the inadequacy of funds to compensate the states for a yawning revenue shortfall.
SEBI in partial modification of the original circular has mandated Filing of Offer Documents under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
17/12/2019
The Telecom Regulatory Authority of India (TRAI) has revised the Mobile Number Portability (MNP) process which allows mobile subscribers to switch operators while retaining their mobile numbers. The new rules will come to effect from today. In the revised MNP process, the Unique Porting Code (UPC) will be generated only when the subscriber is eligible to port-out his mobile number. The telecom regulator in a press release, issued few days back, said that the UPC will be generated after positive validation of certain conditions.
India's largest bank, the State Bank of India, has issued a warning to all of its customers about the potential risk of charging your phones at public charging stations. According to the bank's notice, hackers could steal all your money by infecting phones kept on charge at free mobile charging stations. With the increasing use of mobile banking and smartphone use, hackers are finding new ways to steal from unsuspecting users. While free mobile charging stations are a common sight in public places like airports, shopping malls, restaurants, etc, hackers are using a new technique to infect smartphones via these charging stations with malware.
CBDT has created an Exchange of Information portal on the Income-tax Department website for dissemination of information to all stakeholders.
16/12/2019
Advance Income Tax last date is 15.12.2019 for depositing Third Instalment of Advance Tax for FY 2019-20 Please pay on time to avoid penal interest.
GST Input tax credit is admissible even if consideration is paid through book adjustment. In re Senco Gold Ltd (GST AAR West Bangal)
GST dept has issued notifications specifying that business enterprise having turnover exceeding Rs 100 cr in a year shall make online invoice ( E invoice ) as provided under GST.
Further, business enterprise having annual turnover exceeding Rs 500 cr in a year shall issue E invoice having QR code in case supply is on B2C basis.
15/12/2019
The AA has ruled that subsidy given by the Government is not liable to be included in the value/consideration for the purpose of calculation of GST payable by Indira Canteen providing flood to weaker section of society. Rashmi Hospitality Services P Ltd
Renting of Rooms Shops or Premises by a charitable trust/society, such rent receivable is liable to GST and cannot be held to be for advancement of religion spirituality or yoga but in furtherance of business activity. ASMCPV Samiti Trust.
The supply of various goods such as paints ropes spare parts electronics equipment to foreign going ships but anchored within the territory of India, such supplies cannot be held to be zero rated supplies since it cannot be ensured that such articles would be used only outside the territory of India. Sheraton Co P Ltd
14/12/2019
Income tax Return (ITR) with Late Fees of INR 5,000 for income earners exceeding INR 5,00,000. is the due date to file 31.12.2019.
Income Tax Advance Tax payment due date is 15.12.2019 - IIIrd Installment (75%) for the F.Y. 2019-20.
13/12/2019
Ministry of Finance has issued a notification to give time limit till 31.01.2020 for payment of due tax by those persons who declared the income as per Income Declaration Scheme but failed to pay the amount of tax. Such persons can pay the amount with interest @ 1% pm or part thereof.
GOI has launched Amnesty scheme called Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS)2019, for Service tax & Central Excise matters .Categories covered under scheme are: Litigation,Arrear, Investigation /Enquiry/Audit and Voluntary Disclosure for which tax relief of upto 70% is available. It also provides for complete waiver of Interest, Penalty, Late fee and absolute immunity from prosecution. The SVLDRS scheme is effective from 01.09.19 to 31.12.19
11/12/2019
Linking your PAN with Aadhaar is mandatory to file your income tax return. Another thing you to keep in mind is that if your PAN is not linked with Aadhaar by the December 31 deadline, then as per current laws your PAN will become inoperative.
15.12.2019 is last date for depositing Third Installment of* Advance Tax for FY 2019-20 Please pay on time to avoid penal interest.
10/12/2019
GST authorities have stumbled upon instances of online sales reported by several firms that sell goods on e-commerce portals like Amazon and Flipkart being much lower than such sales computed from the tax collected at source (TCS) data furnished by the marketplaces.
GST Council may raise the base rate to 9-10 percent from five percent. The GST Council will reportedly discuss the option of moving 243 items to the 18 percent slab and scrapping the 12 percent slab. If this fructifies, there will be three GST slabs: five percent, 18 percent and 28 percent.
09/12/2019
central government will keep its "compact" to give state their share of the goods and services tax (GST) though the cess collected has been inadequate, said Finance Minister. Sitharaman's statement comes after Kerala last week threatened to take the central government to Supreme Court over delay in the payment of compensation to states.
GST Authoritieshave Issued the Removal of Difficulties Order so as to extend the last date for filing of appeals before the GST Appellate Tribunal against orders of Appellate Authority on account of non-constitution of benches of the Appellate Tribunal.
08/12/2019
GST Return Re-Set option is now enabled at GST Portal where GST Return Submitted but not filed. Hope it will give few relief to Taxpayers to correct Return if error find before finally submission.
Sebi said it will entertain only those complaints, where an investor discloses his identity and provides supporting documents to substantiate an allegation. Sebi in a statement said, it will not take any action on complaints, where it is not able to reach back to the complainants.
Insurance Regulatory and Development Authority of India (Irdai) is looking to allow banks to remain promoters of insurance companies. Under consideration is a proposal to allow banks to hold more than 10% in one or more insurance companies if they give up management control.
07/12/2019
GST council may consider revamping tax structure and raising the existing 5 per cent rate to 6 per cent to shore up the shortfall in collections. The slab restructuring may help government garner additional revenues of Rs 1,000 crore per month. As of now, the GST has four slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent. The 5 per cent slab includes essential commodities such as food items, footwear and basic clothing.
No Arrest of Chartered Accountant or Advocates who had filed Returns but are not beneficiary or part of fraud without any Corroborative Evidence: Punjab & Haryana High Court.
10,860 cases under IBC pending before NCLT at the end of September
06/12/2019
From 16.12.2019, National Electronic Funds Transfer [NEFT] facility shall be available for all 24 Hours for all days including Holidays. There shall be 48 Settlement Cycles after every 30 Minutes. Presently, the NEFT facility is available from 8.00 AM to 7.00 PM.
Delhi High Court stayed the applicability of interest levied on the profiteered amount relating to the Goods & Services Tax (GST). The same petition had also challenged the composition of National Anti-profiteering Authority (NAA).
Arbitrary and illegal detention under GST not to be resorted to: Case Name: Alfa Group Vs. The Assistant State Tax Officer (Kerala High Court)
The National Informatics Center (“NIC”) has issued a New Set of FAQ on Blocking and Unblocking of EWB generation facility in EWB Portal. The FAQ's are based on the implementation of the new feature of blocking/unblocking the taxpayers from next month, as per Rule 138E of the CGST/SGST Rules, 2017, with effect from December 01, 2019.
Reserve Bank of India is set to deliver its sixth straight interest-rate cut Thursday, shrugging off a spike in inflation as it stays doggedly focused on supporting economic growth. While all 34 economists surveyed by Bloomberg News as of Wednesday expect a reduction, the majority expect a quarter-point cut, with the rest expecting reductions of 15 basis points to 50 basis points.
DGFT Authorities have issued a trade notice to the members of trade and industry and regional authorities, to rectify the mistakes in the IEC database which requires immediate corrective action.
Central Board of Direct Taxes (CBDT) has said that there has been a 20 per cent increase in processing of Refund returns for the current assessment year as compared to the same period in the previous year.
05/12/2019
GST; 2.12.19, e-way bill cant be generated by supplier, buyer or transporter if GSTR-3B of 2 consecutive months not filed by any one of them.
GST Portal: Taxpayers can now see all the GSTINs mapped to same PAN across India, at the time of filing the Part A of the registration application form for new registration, on same PAN.
GST: Taxpayers applying for registration as OIDAR can now give details of their authorised representative appointed in India (Name, PAN, Mail & mobile number) in Part A of the registration Form GST REG 10.
GST: The validation of unique combination of same PAN, Email and Mobile number has been removed while filing registration application by already registered taxpayers. Now another registration can be taken by already registered taxpayers (Normal, Composition, Casual, TDS, TCS, GSTP) by giving same (or any) combination of PAN, Email or Mobile number.
Federal indirect tax body, the Goods and Services Tax (GST) Council, will meet later this month to discuss various revenue raising measures including changes to GST rates and cess levied on select goods.
04/12/2019
With effect from 02.12.2019, e-way bill cannot be generated by supplier, buyer or transporter if GSTR-3B of 2 consecutive months not filed by any one of them.
MCA deactivates 19,40,313 Director Identification numbers (DINs) in the MCA21 Database due to the non-filing of Know Your Client (KYC), as on 28.11.2019
Govt blocks GST e-way bill generation; move may impact 300,000 firms
(Businesses of more then 300,000 firms paying GST were likely impacted, as the Govt had blocked e-way bill generation for non-compliant assessees.
03/12/2019
IMPORTANT INFORMATION FOR ALL STARTUPS AND COMPANIES
Every Registered Company/ Startup which intends to raise share capital either form Angel Investors/Venture capital firms / PE Investor/Foreign Holding company need to get Company Valuation under Section 247 of the Companies Act 2013 , only by a Registered Valuer Registered with IBBI.
IMPORTANT INFORMATION FOR ALL COMPANIES
Every Registered Company which intends to raise the share capital either form Angel Investors/Venture capital firms / PE Investor/Foreign Holding Company need to get Company Valuation under Section 247 of the Companies Act 2017
WHEN IS VALUATION MANDATORY?
62(1) C – Valuation report for Further Issue of Shares
192(2) – Valuation of Assets Involved in Arrangement of Non cash transactions involving Directors
230(2)(c)(v) – Valuation of shares, property and assets of the Company under a scheme of Corporate Debt Restructuring
230(3) – Valuation report along with Notice of creditors/shareholders meeting –Under scheme of compromise/Arrangement.
232(2(d) – The report of the expert with regard to valuation, if any, would be circulated for meeting of creditors/Members
232(3) (h) – The Valuation report to be made by the tribunal for exit opportunity to the shareholders of transferor Company – Under the scheme of Compromise/Arrangement in case the Transferor Company is Listed Company and the Transferee-company is an unlisted Company
236(2) – Valuation of equity shares held by the Minority Share Holders
260(2) (C) – Preparing valuation report in respect of shares and assets to arrive at the reserve price for company Administrator
281(1) – Valuing assets for submission of report by liquidator
305(2) – Valuation of assets in the Declaration of solvency in case of proposal to wind up voluntarily
Valuation is also mandatory for arriving Fair Value under IND-AS
02/12/2019
Whatsapp New Features Call waiting support: In the update version 2.19.120 WhatsApp introduced call waiting support. Currently, the update is only available for iPhone users. The Android update will be rolled out soon, according to reports. In this update, users will be able to receive another WhatsApp call while they are already on one call.
Self-destructing message feature: Although currently available on Android Beta version, this update will automatically delete a message after a particular period of time as set by the user.
Multiple device support: According to WABetaInfo report, a blog that tracks WhatsApp developments, the Facebook-owned social messaging app may soon add the feature of multiple device support to its Android app. However, a similar feature has been rolled out in the WhatsApp Beta version for iPhones.
Income Tax Section 271B Penalty Not Leviable for Undisclosed Turnover Of the Company. Case Name : Vinay Agrawal Vs ITO (ITAT- Indore)
01/12/2019
CBDT in a clarification, said companies opting for lower tax rate of 22 per cent will not be allowed to claim any deduction or exemption towards additional depreciation and Minimum Alternative Tax (MAT) credits against regular taxes. There is no timeline within which the option under newly inserted 115BAA in the Income Tax Act can be exercised, it added. Under Section 115BAA,
GSTR-9 and GSTR-9A for the financial year 2017-18. For GSTR-9C, some changes are required in the offline tool and online which is under development and is likely to made available by 10th December, 2019.
GST e-invoicing:
From April 1 next year, electronic invoicing (e-invoicing) will be mandatory for businesses with a turnover of Rs 100 crore, the government said. This will help curb goods and services tax (GST) evasion and make compliance easier
30/11/2019
Sebi allowed clearing corporations to make investments in overnight funds. Overnight funds are open-ended debt mutual fund schemes that invest in securities with a maturity of one day. However, the combined investments made by clearing corporations in liquid funds and overnight funds should not exceed a limit of 10 per cent of the total investible resources held by them.
Industrial Relations Code tabled in Lok Sabha on turned out to be doing much less than expected to reform the country’s labour laws to improve the ease of doing business in the country or reducing the cost of labour for Indian industry to make it globally competitive. In its attempt to please all, the government seems to have lost a precious opportunity to position India as an alternative to China in manufacturing.
29/11/2019
Government is going to take several steps to stop GST theft and has decided to take a decisive step. The government can cancel more than 11 lakh GST registrations which have not filled GST Return 6 times or more than 6 times. In fact, the GST thieves have chosen the government for @ 10,000 crores.
Claims of GST being foolproof due to modus operandi VAT and excise regime like claiming credit without supply are also being questioned. It is also feared that the cases being caught are only 10-15% of the actual fraud. Fake billing was done through GST registration, fake invoicing was done through which input tax credit was obtained.
28/11/2019
Relaxation of additional fees and extension of last date of filing of e-Form MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013 for UT of J&K and UT of Ladak.
Reserve Bank of India’s efforts to support the flagging economy are turning out to be a bane for the rupee. The currency is the worst performer in emerging Asia this quarter, and analysts say that’s because the central bank is mopping up dollars gushing into local stocks and bonds.
27/11/2019
Income Tax collections across the country with many states faring poorly. the all-India collections made by Income Tax department (from April 1 up to Nov. 23) for financial year 2019-2020 stand at a little over Rs 5.44 lakh crore, registering an all-India growth of 0.6%.
Income Tax Addition of bogus share capital u/s 68 and bogus purchases u/s 69 cannot be made in absence of incriminating material with AO. Agson Global Pvt. Ltd Vs ACIT (ITAT Delhi).
26/11/2019
Condonation of delay of 1754 days: If the stand of the Applicant in the Affidavit that he had no knowledge about the passing of the order is not expressly refuted by the Respondent, the question of disbelieving the stand of the Applicant cannot arise. Senior Bhosale Estate (HUF) vs. ACIT (Supreme Court),
Maharashtra Appellate Authority for Advance Ruling (AAAR) had held in a ruling in February that back-office support services did not qualify as “export of service” and were in the nature of arranging or facilitating supply of goods or services.
25/11/2019
States will need to be compensated for their revenue shortfall under goods and services tax (GST) even after 2022 — the sunset year for compensation under the law — because of slow revenue growth, a report commissioned by the 15th Finance Commission (FC) has noted.
Income Tax Section 56(2)(vii) will have application to the ‘property’ which is in the nature of a capital asset of the recipient and therefore would not apply to stock-in-trade, raw material and consumable stores of any business of such recipient. Case Name : Shri Satendra Koushik Vs I.T.O. (ITAT Jaipur)
24/11/2019
CBEC is considering amending its rules to completely remove the provision under which citizens can receive duty-free ‘gifts and samples’ valued at under Rs 5,000 from overseas, after finding its rampant misuse by Chinese ecommerce vendors.
CBIC to act tough following lower-than-expected tax mop-upThe Goods & Services Tax (GST) Administration plans to act tough with non-filers of returns and cancel their registration. It has also decided to update the progress made in this regard on a daily basis.
23/11/2019
Enable assessee to file rectified TRAN -1 Form: Kerala High Court to GST Department. Case Name : The South Indian Bank Limited Vs Union of India (Kerala High Court). Appeal Number : WP (C).No. 21008 of 2019, Date of Judgement/Order : 18/11/2019
Selling land does not attract the Goods and Services Tax, but if some one develops and sells a parcel, then it comes under the GST ambit, according to the Authority of Advance Ruling (AAR) in Karnataka. Bengaluru-based Maarq Spaces Private Ltd.
22/11/2019
Karnataka GST authority has held that GST is not applicable on expenses reimbursed by the business enterprise to its employees incurred by the employees on behalf of the company. Ref: Alcon Consulting Engineers India Pvt Ltd - AAR - Karnataka
Sebi said the unauthorised use of clients' funds creates a serious doubt over the conduct and integrity of KSBL. After a major scandal hit the stock markets with the brazen modus operandi of misusing clients' funds, the Securities and Exchange Board of India (Sebi) has banned Karvy Stock Broking (KSBL) from taking new clients and executing trades.
21/11/2019
MCA by notification dated 15.11.2019 and 20.11.2019, has introduced the rules & the regulations respectively, as given herein rules shall come into force from 01.12.2019: The Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019; The Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019
20/11/2019
Delhi HIgh Court directed ITAT to Deal with cases in which there is stay of Tax recovery on higher priority: Case Name : PCIT Vs Nokia Solutions & Networks India Pvt. Ltd. (Delhi High Court)
Income Tax Section 68 additions cannot be made merely on doubts, conjectures or surmises. Case Name : ITO Vs. Ambika Metalchem Impex P. Ltd. (ITAT Mumbai)
CBIC to act tough following lower-than-expected tax mop-upThe Goods & Services Tax (GST) Administration plans to act tough with non-filers of returns and cancel their registration. It has also decided to update the progress made in this regard on a daily basis.
GST CLARIFICATION ON JOB WORK : 12% GST is levied only job work services which are provided by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, 18% GST is levied only on such services which are carried out on physical inputs (goods) which are owned by persons other than those registered
Smaller businesses with annual turnover of less than Rs 5 crore are hit by the recent change in GST rule, which restricts the amount of input tax credit (ITC) a business can claim. The rule that was amended last month mandates that ITC claims can only be fully availed if all the relevant invoices are uploaded by the suppliers in its GSTR-1 (the returns where all the outwards sales are detailed).
19/11/2019
Sebi approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.
Reserve Bank of India superseded the board of debt-laden Dewan Housing Finance Corporation Limited as it intends to shortly initiate process of resolution of the company under the insolvency and bankruptcy rules.
ITAT Kolkata decision: No Penalty for Cash loan received from father for reasonable cause under Income Tax Act. Case Name: Ashok Kumar Bagaria Vs JCIT
18//11/2019
Attributing the dip in the Goods and Service Tax (GST) collections to "frauds" and the "flaws in the system" that led to incessant leakage of revenue, West Bengal finance minister arged the Union finance minister to convene a meeting urgently to discuss revenue augmentation and the setting up of an effective mechanism to detect and avert such tax frauds.
CBIC issued circular makes it clear that tax authorities will not insist on proof of realisation of export proceeds for processing of refund claims related to export of goods as it has not been envisaged in the law. CBIC emphasised that exports have been zero rated under the Integrated Goods and Services Act. Hence, as long as goods have actually been exported, even after a period of three months, tax officials should not insist on payment of Integrated tax first and claiming refund at a subsequent date
17/11/2019
SEBI has instructed all brokers to link the unique client code (UCC) of investors to the latter"s Demat accounts & PAN. UCC is a number that is assigned to each investor and is "œunique" in nature.
Finance Commission chairman NK Singh stressed that the government must complete unfinished tax reforms to improve the woefully inadequate tax buoyancy witnessed in the past one-and-a-half years, while advocating that simple direct tax code should be implemented soon and that the GST Council ought to go to the drawing board to address compliance issues.
No Arrest of Chartered Accountant or Advocates who had filed Returns but are not beneficiary or part of fraud without any Corroborative Evidence: Punjab & Haryana High Court.
16/11/2019
No GST returns, no E-way bills! Centre to crack down on non-filers: Concerned with the dipping monthly collections of Goods and Services Tax (GST), the government and indirect tax department are now planning stricter measures against non-compliant taxpayers.
GST department is now planning to block the facility to generate e-way bill for taxpayers who do not file two consecutive GSTR-3B returns wef 17 November 2019. Once the taxpayer has filed one of the pending returns, the facility to generate e-way bill will be automatically restored.
15/11/2019
CBDT claimed that the Income Tax Department has busted a hawala racket worth Rs 3,300-crore and spread across multiple cities such as Delhi, Mumbai and Hyderabad with links to "leading corporate houses" in the infrastructure sector.
India's share of tax from multinational digital companies like Google and Facebook, among others, would be substantially lower than the current mop-up under equalisation levy if the taxation formula suggested in the OECD consultative paper is applied. The OECD formula seeks to distribute "residual profit" among jurisdictions where taxability is established.
14/11/2019
The government has allowed businesses to do self-assessment while claiming credits for the Goods and Services Tax (GST) paid on raw materials and services in cases where their suppliers have not uploaded invoices.
Businesses can claim only 20% of the total tax credits due to them if suppliers have not uploaded invoices and not paid taxes to the government, as per rules notified in October. A Finance Ministry circular on Monday showed that the authorities have decided to allow businesses to do self-assessment while complying with this rule, rather than enforcing it through making software changes in GSTN, the portal for filing returns.
The decision was taken as it was a new rule meant to improve compliance. Wrongful claim of tax credits is a big area of tax evasion that the government wants to address but it prefers to tighten rules only gradually to avoid a backlash.
A set of clarifications issued by the Finance Ministry on Monday said that it was the responsibility of the taxpayer to ensure that credit is availed of as per rules, adding that it shall be done on self-assessment basis by them.
Reserve Bank of India has withdrawn some exemptions granted to mortgage finance companies in terms of complying with regulations such as provisions and creation of reserve fund that would put them on par with other non-banking finance companies. This has followed the shift of regulation of housing finance companies to the Mint Street from the National Housing Bank.
Government could boost its revenues by more than ?55,000 crore if it implements a task force report that calls for a complete rejig of income tax slabs and capital gains tax regime. The report has suggested a radical shift to taxation approach by suggesting no prosecution or reopening of assessment for people who declare and pay higher income tax for a past period of up to six years with interest and 50% penalty. GST Circular No. 123/42/2019-dated November 11, 2019 clarifying restrictions on availment of Input Tax Credit (ITC) in terms of Rule 36(4) of CGST Rules, 2017 issued.
GST Council has proposed that the electronic invoicing (e-invoice) system may be implemented on a voluntary basis from January 2020. Until now, there have been no standards set for e-invoicing in India.
National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against Delhi-based real estate firm AVP Buildtech Ltd by admitting a plea of a flat buyer claiming refund
11/11/2019
Latest GST circular dated 11-11-2019 puts an end to confusion over new input tax credit rules
CBIC's latest GST circular clears air over several key issues such as how to calculate 20% amount over and above the eligible amount of ITC, cut-off dates and where the new rule will not be applicable.
In a big relief for GST taxpayers, the Union government on Monday clarified the new rules related to availing input tax credit under the GST. It said that a certain category of Input Tax Credit claims such as ITC in respect of the IGST paid on imports and GST paid under the reverse charge mechanism have been kept out of the scope of the new rules introduced last month. The new rules implemented by the CBIC limited input tax credit claims to 20% of the eligible amount where invoice matching has been done. However, the notification issued by the CBIC on October 9 caused a lot of confusion over the method of calculating this 20% amount, the cut-off date and also whether it was to be calculated supplier-wise or on a consolidated basis. These concerns prompted the CBIC"s GST policy wing to issue a new circular today clarifying all these aspects.
10/11/2019
E-invoicing to be introduced on a voluntary basis: here's what you should know
E-invoicing in India will be a big move, due to the volume of business transactions undertaken every day, as well as the plethora of different,
non-standardised formats used in invoice generation. The main objective is to enable interoperability across the entire GST eco-system i.e. an e-invoice generated by one software should be capable of being read by any other software. Basically, through machine readability, an invoice can be uniformly interpreted.
In addition to the above, this new system of e-invoicing aims to make invoice reporting an integral part of a business process and remove the tedious task of invoice-compilation at the end of a return period. Claiming fictitious Input Tax Credit (ITC) by raising fake invoices is also one of the biggest challenges currently faced by tax authorities.
ITC restiction of 20% as per Rule 36(4), availed after 09.10.19 to be on Self Assessment& not through portal. Circular 123/42/2019-GST of 11.11.19
09/11/2019
Wef 01.9.19, in TDS Returns, Income tax forms (other than ITR) where PAN is required, either PAN or Aadhar can be furnished. Notification 95/2019 of 6.11.19.
Wef 08.11.19, DIN Must for search, summons, inspection notices, letters issued in enquiry etc by CBIC. Circular 122/41/2019-GST of 05.11.19
30.11.19 is last date to do Gst Audit and to file GSTR-9 & 9C for FY 2017-18 for Turnover above 2 crores. GSTR-9 is Optional for those with turnover upto 2crores
08/11/2019
From Oct Gst returns onwards, pay tax on RCM on Renting of motor car to company (where applicable), Transfer of Copyright by author & Securities Lending
Punjab and Haryana High Court has permitted filing or revising Form TRAN I for transitional credit by November 30, 2019, irrespective of whether the form was filed, incorrectly filed or not filed at all. “Article 300A provides that no person shall be deprived of property saved by authority of law. While right to the property is no longer a fundamental right but it is still a Constitutional right,
06/11/2019
Central Board of Indirect Taxes and Customs (CBIC) and has directed vide Circular No. 122/41/2019-GST dated 05.11.2019, to provide that all documents issued in relation to summons, search authorisation, arrest memo, inspection notices and letters issued in the course of any enquiry, shall be issued with a computer generated Document Identificaiton Number (DIN) which shall be issued by such officer from the website cbicddm.gov.in.
Only in exceptional circumstances, the document may be issued without DIN when there are technical problems in issuing such DIN or when the concerned officer is not available. However, such document need to be regularised within 15 days.
Any communication not covered under exception and which does not bear DIN shall be considered as invalid.
05/11/2019
ITC restriction of 20% against invoices not uploaded by suppliers whereas as per CBIC by Notification No. 49/2019 " Central tax " dated 09 October, 2019 it has placed a cap on availment of Input Tax Credit ("ITC") to the extent to 20% of eligible input invoices or debit notes.
GST collections in October " concerning mostly September transactions " came in at Rs 95,380 crore, 5.29% lower than in the year-ago month, amplifying concerns over a likely big deficit in revenue from this comprehensive indirect tax and cementing the notion that economic slowdown is barely being reversed. The September GST collections were just Rs 91,916 crore, a 19-month low, and these were 2.7% lower than the year-ago month.
04/11/2019
RBI reorganised its regulatory and supervisory departments as a part of its initiative to have a holistic approach towards supervision and regulation amidst growing complexities and interconnectedness in the financial system. With a view to having a holistic approach to supervision and regulation of the regulated entities to address growing complexities, size and interconnectedness and also to deal more effectively with potential systemic risks that could arise due to possible supervisory arbitrage and information asymmetry,
MCA started "Identification and flagging of Disqualified Directors u/s 164(2) ( a) of the Companies Act, 2013 for their default of non-filing of financial statement or annual return for continuous period of three financial year i.e. 2015-16, 2016-17 and 2017-18.
03/11/2019
CBIC notifies jurisdiction of Jammu Commissionerate over UT of J&K & Ladakh Seeks to amend notification no. 2/2017- Central Tax in order to notify jurisdiction of Jammu Commissionerate over UT of J&K and UT of Ladakh vide Notification No. 51/2019"Central Tax dated: 31st October, 2019.
Sebi has asked banks to disclose any material divergences in their non-performing assets on a continuous basis. In a circular issued the market regulator said banks must disclose such information within 24 hours of the receipt of the Reserve Bank of India"s risk assessment report. Currently, such divergences are disclosed by banks in their quarterly financial results.
02/11/2019
India's fiscal deficit at the halfway mark in 2019-20 stood at 92.6 per cent of budgeted estimates, lower than 95.3 per cent in April-September, 2018-19, helped by transfers from the RBI. With muted tax revenues, the government will have to undertake spending cuts to achieve FY20 fiscal target of 3.3 per cent of GDP.
MCA has issued an important update on its website with regard to 'Identification and flagging of Disqualified Directors u/s164(2)(a) of the Companies Act, 2013'.
01/11/2019
MCA has issued notifications for reclassifying the J& K and Ladakh as Union Territories. Accordingly the jurisdiction of Jurisdiction of Regional Director, New Delhi.
Gazetted Order issued by Ministry of Home Affairs dated 30th October, 2019 wherein sub-para 7 of Para 2 specifically provides that, “The Jammu and Kashmir Goods and Services Tax Act, 2017 shall be applicable to the Union Territory of Jammu and Kashmir and the Union Territory Goods and Services Tax Act, 2017 shall be applicable to the Union Territory of Ladakhâ€. Therefore IGST needs to be charged where supplier is located in J&K and recipient in Ladakh. The same is already in force.
31/10/2019
Registrar of companies shall have jurisdiction in respect of Union territory of Jammu and Kashmir and Union territory of Ladakh, for the purpose of registration of companies and discharging the functions under the aforesaid Act with effect from 31st October, 2019.
ITAT Chandigarh decided that No Penalty u/S Section 271BA of Income Tax for bonafide failure in filing of Form No. 3CEB. Case Name: Shree Ram Dass Rice & General Mills Vs DCIT (ITAT Chandigarh)
30/10/2019
CBIC has directed to appoint a nodal officer in each CGST and Customs Commissionerate to sort out taxpayer grievances. Industry and tax experts have hailed the decision saying that the move would ensure an escalation point for taxpayers in case their grievances are not addressed at designated level.
Ministry of Corporate Affairs vide its circular 13/2019 dated 29/10/2019 has extended the due date for filing of e-Form AOC-4, AOC (CFS) AOC-4 XBRL)(Financial Statement) up to November 30, 2019 & due date of filing of e-Forms MGT-7 (Annual Return) up to December 30, 2019 without additional fee.
29/10/2019
Supreme Court issued a court notice to the assessee-company but no one appeared on behalf of the company. Thereafter, a dasti notice of court proceedings was served to CA, AR but he failed to communicate the same to the company. Therefore, the Supreme Court passed an ex-parte order.
The move to restrict input tax credit for non-filing of GSTR-1 is too harsh and could be legally challenged. The 37th GST Council meeting held on September 20, 2019, was widely lauded for numerous business-friendly measures, which have significantly boosted trade confidence.
28/10/2019
As per the amended CGST Rules (likely to become effective in days to come), input tax credit to be availed by a registered person, the details of which have not been uploaded by the suppliers, shall not exceed 20 per cent of the eligible credit available in respect of invoices or debit notes uploaded by the suppliers. This means going forward, it will be mandatory for the buyers to match the ITC claimed with the details uploaded by the vendors.
The amendment has introduced another set of compliance on a monthly basis i.e. check GSTR 2A if the credit claimed doesn"t exceed GSTR 2A by 20% and also determine the credit which are "eligible" out of the GSTR 2A before applying this 20% rule.
A proper reconciliation of GSTR- 2A with books will now be critical to claim ITC. As businesses will strive to reduce instances of non upload of invoices by sellers. They will have to reduce ineligible credit instances to within 20% of eligible credit .
27/10/2019
Government is considering tax relief for individuals as it looks at measures to accelerate consumer demand and boost economic growth. Govt is mulling a proposal to hike the taxable income limits, especially the 1 million rupee slab, which attracts a 30% rate at present.
Government is considering a five-year extension of tax benefits for units in Special Economic Zones (SEZs) by extending the sunset clause beyond March 31, 2020 to boost investor sentiment. There is a feeling in the Commerce Ministry that an extension of SEZ tax benefits could be critical in kick-starting the investment cycle.
26/10/2019
Finance Minister said efforts will be made to further simplify GST, and expressed hope that it will help in further improving India's ranking in the World Bank's ease of doing business index. India has jumped 14 places to rank 63rd in the World Bank's ease of doing business ranking index and the country aims to be within 50 in the next few years.
Last Date to File TDS Q2 is 31st Oct 2019 Penalty is Rs. 200/- per day subject to TDS Amount.
Last date to file TAR is also 31st Oct 2019. Non Filling of Tax Audit Report: Penalty a Sum equal to 0.5% percent of the total sales, turnover or gross receipts but not more that Rs. 1.5 Lakhs.
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25/10/2019
household wealth more than doubled USD 12.6 trillion in the calendar year 2019. Total wealth held by the households in the country had stood at USD 5.972 trillion in 2018, according to a report by Swiss bank Credit Suisse.
Foreign portfolio investors (FPIs) have infused a net sum of Rs 5,072 crore into the Indian capital markets in October so far amid the government's efforts to revive domestic demand. In the preceding month, FPIs had invested a net Rs 6,557.8 crore in the domestic capital markets (both equity and debt).
23/10/2019
Emerging investment instruments -- REITs and InvITs --seem to be finally catching on with investors as mutual funds have invested nearly Rs 9,000 crore in such units in the first nine months of the year. Fund managers have infused Rs 451 crore in real estate investment trusts (REITs) and Rs 8,528 crore in infrastructure investment trusts (InvITs), according to SEBI.
Bombay High Court has directed the income tax department to refund Rs 788.39 crore to Vodafone Idea Ltd. (VIL) within three weeks, bringing some relief to the loss-making telecom operator which has also sought the government"s help to ease its financial stress. The refund order " more than Rs 630 crore due to Vodafone India and over Rs 150 crore to Idea Cellular " was issued by the court last week.
22/10/2019
Businesses must keep in mind for filing the monthly return GSTR-3B for the month of September: So far, the businesses are availing full ITC on the invoices received by them from the suppliers even if the suppliers have not uploaded the same on the GST portal and therefore, not reflecting in GSTR-2A. This is for the reason the matching mechanism has been kept in abeyance.
21/10/2019
Government has asked businesses with turnover exceeding Rs 50 crore to mandatorily provide electronic modes of payment from November 1. To this end, a new provision, namely Section 269SU, has been inserted in the Income-tax Act, said Central Board of Direct Taxes in a statement on Friday.
Government has asked businesses with turnover exceeding Rs 50 crore to mandatorily provide electronic modes of payment from November 1. To this end, a new provision, namely Section 269SU, has been inserted in the Income-tax Act, said Central Board of Direct Taxes in a statement on Friday.
The CBDT further said that another provision, Section 10A, has been added to Payment and Settlement Systems Act. The provision prohibits banks and payment system providers from imposing any charge on transactions through electronic modes of payments specified in Section 269SU of the Income-tax Act.
20/10/2019
These new provisions will come into effect from November 1, 2019, the CBDT said. The Centre has invited applications from banks and system providers to include their payment systems under the list of prescribed modes of digital transaction under Section 269SU.
In her Budget speech earlier this year, Finance Minister Nirmala Sitharaman had proposed to add a section to the Income-tax Act directing business with an annual turnover over Rs 50 crore to provide low-cost electronic modes of payments. These include systems like BHIM UPI, UPI-QR Code, Aadhaar Pay, certain Debit cards, NEFT and RTGS.
For ensuring compliance, a suitable penalty provision is also proposed to be inserted in the Act, the Finance Minister had said. In line with this, the Finance (No 2) Act 2019 prescribes a penalty of Rs 5,000 for every day that an eligible entity fails to comply with Section 269SU.
19/10/2019
GST Council, on September 29, 2019, has approved the introduction of "E-invoicing" or "electronic invoicing" for business to business (B2B) transactions from January 1, 2020. Once implemented, it can help arrest tax evasion as it enables pre-populating of GST returns with the e-invoice details. Return filing will also become simpler with reconciliation becoming easier.
CBIC seeks to make the filing of annual return under Section 44(1) of CGST Act for F.Y. 2017-18 and 2018-19 optional for small taxpayers whose aggregate turnover is less than Rs 2 crores and who have not filed the said return before the due date.
18/10/2019
CBIC has issued a notification to mandate that FORM GSTR-3B from Oct 2019 to March 2020 to be furnished electronically till the 20th day of next month as per the new return system.
MCA: Now company which is inactive for non filing of KYC and Directors were also disqualified, Now they can appoint the Directors to remove the Deadlock.
Supreme Court said it would first hear the appeal of Jaypee Group against the NCLAT order that barred it from participating in the auction of its debt-ridden group firm, Jaypee Infratech Ltd (JIL).
income tax department has selected 58,322 cases for scrutiny, under the first phase, under the e-Assessment Scheme 2019 for income tax returns (ITR) filed for FY18 or assessment year (AY) 2018-19. The e-notices were served before 30 September 2019.
17/10/2019
Sebi is planning to further tighten rules for participatory notes (P-notes), offshore derivative instruments issued by brokers to foreign investors not registered in the country, said people with knowledge of the matter. The capital markets regulator has found instances where foreign brokers have issued P-notes against Indian derivative contracts to overseas clients, who don"t own the underlying local shares.
Lenders to the crippled mortgage lender Dewan Housing Finance (DHFL) are hopeful of passing a resolution plan successfully at the earliest even as mutual funds are not yet on the same page with the bankers' plan.
NCLT not barred from entertaining IBC Application even if notice issued in winding up plea by High Court: Madras High Court.
MSME Form-I (Filling half yearly return with the registrar in respect of outstanding payments to MSME due date 31st October, 2019)
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.
16/10/2019
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.
Chhattisgarh HC allows assessee-company"s writ, quashes re-assessment proceedings for AY 2009-10, as “no notice was served to the petitioner-assessee u/s. 148(1) and service of notice to the ("CA") of the petitioner Company is not service at all. [TS-236-HC-2018(CHAT)]
ITAT Delhi decision: No addition of purchase creditors under section 68; family settlement does not fall within the confines of section 56; assessee cannot be worse off in set aside proceeding u/s 254 as in u/s 143(3) of the act; World Institution Development Programme v. ITO(Exemption)(ITA No. 08/D/19) (Dated
17/09/2019)
Reserve Bank of India has decided to operationalise 'unified departments for supervision and regulation' with effect from November 1, 2019, in a bid to strengthen its oversight of commercial banks, urban co-operative banks (UCBs) and non-banking financial companies (NBFCs).
Differences between Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) may delay or possibly even scupper resolution plans of defaulting firms such as DHFL, experts and industry insiders have warned. While the RBI"s word is binding on banks, mutual funds, who are also prominent lenders to many firms, are regulated by Sebi. The market regulator"s views on certain aspects of the resolution proposed by banks are different from that of RBI and the clash may lead to delays as various lenders try and work out a common ground on the best way to rescue a defaulting firm.
MCA: last date for filing DIR-3 KYC for Financial year 2018-19 has expired on 14th October 2019. The process of deactivating the non-compliant DINs is in progress and will be completed shortly. Please note that the form DIR-3 KYC and web service DIR-3 KYC will not be available for filing during the pendency of this activity.
15/10/2019
CBDT has launched the faceless assessment in the Income Tax Department by inaugurating the Nationale-Assessment Centre (NeAC). Under e-Assessment scheme 2019,
Income Tax New enhanced monetary limits for filing departmental appeal are applicable for pending appeals also : ITAT DELHI BENCH 'ACIT VS Bulland Buildtech (P.) Ltd
Directorate of Revenue Intelligence (DRI) move followed a Supreme Court stay on a Gujarat High Court order favouring the exporters. The high court had quashed a revenue department notification allowing DRI to penalise exporters for allegedly not following “pre-import condition†and availing wrongful Goods and Services Tax (GST) exemptions.
GST : In a major overhaul of how input credit is availed by businesses, the Government has proposed in case where there is a mismatch or details have not been uploaded by the suppliers, input tax claim will not exceed 20 per cent of the eligible credit available in respect of invoices or debit notes uploaded by the suppliers.
MCA has made further amendments to Schedule VII of the Companies Act, 2013 and extended the scope of establishment & contributions to incubators in Corporate Social Responsibility (CSR) Activities under Section 135 of the Companies Act, 2013.
14/10/2019
Employees must be registered online within 10 days from their date of joining. Thereafter employees can not be registered. *(Normally registration of the employees is done while preparing e-Challan that is after the closure of wage period. Now it's to be done from the date of joining of the employee or else system will not accept the employee done with back date)*
Monthly ESI Contribution can not be paid after 42 days from the due date. *(No clarity as to how to pay ESI Contribution for back period)*
Employee whose per day salary is Rs. 176/- or less need not to pay Employee's contribution and the same will be paid by Govt. However, Employer will have to pay their share of contribution. *(Part time employees might get benefit of the same)*
Employee will have to collect their Biometric ESI Permanent Card from nearest Branch Office. *(Earlier Employer used to issue it)
13/10/2019
Income tax department has selected 58,322 cases for scrutiny, for which e-notices have been served before September 30, 2019 belonging to cases of Assessment Year 2018-19 for faceless E Assessment.
GST Notification No. 49/2019 - Central Tax issued today (09-10-2019) has made some important changes by making amendments in CGST Rules, as summarised below:
12/10/2019
ITC in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers in GSTR-1, shall not exceed 20% of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in GSTR-1. As a result of this amendment, regular matching of ITC with the details available in GSTR-2A will become necessary. Follow-up with non-compliant suppliers to be done on a regular basis now.
Amendment in Rule 61(5) has been made with *retrospective effect from 01-07-2017* by making *GSTR-3B as the return specified under Section 39*, wherever the time limit for filing GSTR-1 or GSTR-2 has been extended. Thus, the judgement of the Gujarat High Court in the case of AAP and Company has been circumvented.
11/10/2019
MCA Form NDH-4 (Form for filing application for declaration as Nidhi Company and for updation of status by Nidhis) will be deployed on the portal and available for filling w.e.f. 11th October 2019.
SEBI has issued a notification clarifying that mutual funds can now invest in unlisted Non-Convertible Debentures (NCDs)
10/10/2019
Gst important amendments/ notifications issued on 09-10-19 :-
1. Business enterprise having aggregate turnover upto Rs 1.50 Cr shall furnish GSTR 1 return upto 31st Jan 2020 ( for Quarter Oct - Dec 2019) and by 30th April 2020 ( for Quarter Jan - March 2020)
2. For rest of Business enterprise, the last date of furnishing monthly GSTR 1 return shall be 11th of the succeeding month.
3. GSTR 3B shall be regarded as return filed under GST. Till this ammendment was done, GSTR 3B was not a monthly return but a summary return. But the govt has ammended the law from 1st July 2017 and made GSTR 3B as a regular monthly Return. Thus the judgement of Gujrat High Court, which allowed business enterprise to claim ITC upto filing of Annual return, has been negated.
4. Business enterprise will now be able to claim ITC on invoice or debit note which are not appearing in their GSTR 2A subject to conditions that it shall not exceed 20% of the total eligible ITC as appearing in their GSTR 2A.
This is a major change GST and now every business enterprise has to constantly keep eye on GSTR 2A for taking ITC.
5. Gstr 1, 3B, 7 dates prescribed for J&K State for July/ Aug 19.
6. Person cannot issue tax invoice during the period of suspension. Format of DRC 01A prescribed.
7. Annual return made optional for 2017-18,18-19.
09/10/2019
Indirect tax board had removed a "œcontroversial" circular that imposed GST on post-sale discounts by dealers, but it has done little to clear the confusion around the many issues that arose with the circular.
In June, the CBIC had issued a circular which said that dealers will have to pay 18% GST on the post-sale discount that they get from the suppliers of goods, if the supplier asks them to pass on the concessions to the end consumer.
The circular came out with different situations where GST should be paid and where it should not. For instance, imagine that a company sells a car to a dealer for Rs 10 lakh and later gives a discount of Rs 50,000. In doing so, the firm did not put any obligation on the dealer to pass on the benefit. So, the dealer need not pay any GST on Rs 50,000. However, if the company asks the dealer to pass on the benefit to the customer, then the dealer has to pay GST on the entire amount, including Rs 50,000.
The Confederation of Indian Industry (CII) had said This had irked industry, particularly the auto sector, which has already been reeling under the pressure of subdued demand. this circular violated the cardinal principle of GST that the tax cost is to be borne by the ultimate consumer.
This principle means that the supply of goods or service should suffer the tax only to the extent of consideration paid by the ultimate consumer,†the CII had said, demanding that this provision in the circular be changed. It said additional discounts are generally given to liquidate the old inventories or push products under weak market conditions.
07/10/2019
Some of the largest companies that have thousands of crores lying on their balance sheets in the form of unused MAT credit are looking to go for setting up new companies, demerging current ones or exploring to go for a slump sale.
06/10/2019
GST entire ITC for all the invoices pertaining to FY 2018-19 by the GST return filed till 30/9/19. No ITC pertaining to FY 2018-19 is allowed to be taken by the assessee after the return for the month of September is filed.
RBI has accepted the Usha Thorat task force"s recommendations for providing incentives for non-resident Indians to access India"s on-shore foreign exchange market. RBI is also looking at ways to increase the acceptance of the rupee in cross-border transactions to reduce exchange risks.
05/10/2019
Shareholders of Co. indulging in rigging prices of shares of co. was in violation of section 15HA [2019] 109 taxmann.com 351 (SAT - Mumbai) SECURITIES APPELLATE TRIBUNAL, MUMBAI G. Moorthi v. SEBI.
CBDT prescribes guidelines for conducting assessment through the "E-proceeding" facility during FY 2019-20. Assessment framed under sections 153A, 153C, 144 & 147 shall not be mandatorily carried out through e-proceedings.
04/10/2019
CBDT has issued a detailed circular that MAT credit will not be available to a company that opts for lower corporate tax rate of 22%. However, companies will have the option to go for the new regime after completely utilising MAT credit.
CBDT has launched a computer-generated documentation identification number (DIN) system which will be mandatory for every type of communication with the income tax department, be it a notice, a letter, an order and summon, or any other correspondence.
03/10/2019
Government has roped in Grant Thornton to carry out forensic investigations into the fraud hit Punjab and Maharashtra Cooperative (PMC) Bank. PMC appointed the forensic auditor at the behest of the Economic Offences Wing (EOW) of the Mumbai police.
The RBI Governor headed Monetary Policy Committee (MPC) will announce the fourth bi-monthly monetary policy for 2019-20 on October 4.
02/10/2019
The government may seek an interim dividend of about Rs 30,000 crore from the RBI towards the end of the financial year to meet its fiscal deficit target of 3.3 percent of GDP for 2019-20.
The deadline to link PAN with Aadhaar has been extended till December 31 as per CBDT order.
01/10/2019
A key source of funding for promoters could dry up with new restrictions on transfer of shares between dematerialised accounts set to kick in from October 1. Non- banking finance companies will no longer be allowed to ask promoters to shift shares to their accounts as collateral for lending.
Traders body CAIT on Sunday alleged that e-commerce portals during the festive sales are causing huge loss of revenue to the government by levying GST on the discounted price rather than on the actual market price of the commodity.
30/09/2019
Direct Tax Collection growth target of 17.4%, the mop-up (net of refunds) between April 1, 2019, and September 17, 2019, this fiscal has come in at Rs 4.5 lakh crore, just about 6% higher than collections in the same period a year ago.
Textile industry is seeking a cut on GST from the GST Council meeting on Friday. Currently, the cotton textile value chain: yarn, fabric, apparel, and others attracts a uniform GST rate of 5%. Purified terephthalic acid (PTA), the key input in making polyester yarn and fabric attracts 18%. And, polyester yarn and fabric are taxed at 12% and 5%, respectively.
MCA has extended the time limit for filing e-form No. BEN-2 upto 31.12.2019 without payment of additional fee and the date of filing of Form BEN-1 may be construed accordingly.
Sebi has decided that for arriving at security level pricing, a waterfall approach shall be followed for the valuation of money market and debt securities.
29/09/2019
CBDT announced setting up of a national e-assessment centre (NeAC) in New Delhi. the centre will exclusively focus on e-assessment and will have 16 officials. The e-assessment centre will headed by a Principal Chief Commissioner of Income-tax (PCCIT) as its chief. The NeAC will be an independent office looking after.
CBDT has appointed 1984-batch Indian Revenue Service (IRS) officer K M Prasad the chief or PCCIT of the E-Assessment Centre, while 1993-batch IRS officer Ashish Abrol has been appointed the Commissioner or second-in-command of the new unit.
GST: Government is expecting a shortfall of around Rs 40,000 crore in the GST collections over what has been budgeted for 2019-20. This could put pressure on the compensation that states are eligible for in case the tax growth falls below 14% during the year.
MCA BEN-2 date extended to 31st December 2019.
28/09/2019
The families of government employees dying after serving less than seven years will get enhanced pension now with the Centre amending rules. The move is likely to benefit the widows of Central Armed Police Forces personnel.
CBDT has notified the Taxation Laws (Amendment) Ordinance, 2019 through which Corporate tax rates slashed to 22% for domestic companies and 15% for new domestic manufacturing companies and many other fiscal reliefs with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to the condition that they will not avail any exemption/incentive.
27/09/2019
CBDT has now notified E-assessment Scheme 2019 as part of the government"s ambitious plan to usher in a countrywide paperless system of interface between the taxman and the assessee.
GST Council meeting recommended Relaxation in the filing of annual returns for MSMEs for FY 2017-18 and FY 2018-19 includes the waiver of the requirement of filing FORM GSTR-9A for Composition Taxpayers for the said tax periods and filing of FORM GSTR-9 for those taxpayers who have an aggregate turnover up to Rs. 2 cr made optional for the said tax periods.
26/09/2019
GST e-Way bills generation for the period April-June 2019 was almost 40 per cent higher at about 15.65 crore, compared to 11.19 crore in the same period last year. For transport companies, the system has saved considerable time, removing check-posts and facilitating the shift from a "departmental policing model" to a "self-declaration model". It has also helped in curbing tax evasion.
RBI may cut the benchmark rate by up to a quarter percentage point in October against an anticipated 25-40 basis points after FM Nirmala Sitharaman announced a host of fiscal measures.
25/09/2019
Two days Bank strike from 26-27 September has been deferred with the discussion of Bank Unions with Shri Rajiv Kumar, Finance Secretary.
Direct Tax collection : the government could mop-up only 4.7 percent more so far this year, with the direct tax kitty growing to Rs 5.50 lakh crore as of September 17, up from Rs 5.25 lakh crore a year-ago.
24/09/2019
Schedule SH1 of ITR 6 for AY 2019-20 issues may be resolved with the following observations - Company has to file its ITR with the information it has with it. Details of shareholders as at year end is to be given AND Amount and date on which the Company received such amount is to be given.
SH1-ITR6: when did company allot the shares, how much amount did it receive against those shares and who are the current owner of those shares is to be given. Consideration for transfer etc.. is not required to be report.
Directors KYC (DIR-3 KYC-WEB) if not done for financial year 2019-20, last date to file dir-3 kyc web is 30.09.2019. After 30.09.2019 late fee of Rs. 5000 will charged on each director.
23/09/2019
RBI is of the opinion that banks already have enough flexibility to introduce a repo-linked loan product, So RBI will not extend the October 1 deadline for banks to introduce repo-linked loan products, even as the regulator is open to reviewing the new anchor rate as time progresses.
Labour Ministry proposes revised social security code and has circulated the draft code seeking comments from stakeholders by October 25 following which tripartite consultations will be held to finalise the code
22/09/2019
Exemption from TDS on cash withdrawal under section 194N for making payment to farmers " Central Government specifies the commission agent or trader, operating under Agriculture Produce Market Committee (APMC)- Notification No. 70/2019-Income Tax Dated 20th September, 2019.
Income-tax (9th Amendment) Rules, 2019 " Additional depreciation on motor cars and motor vehicles shall be allowed in certain conditions- Notification No. 69/2019-Income Tax Dated 20th September, 2019.
21/09/2019
GST Council reduced the taxes on hotel rooms to the 0-18% range depending on their tariffs and cut the rate for outdoor catering to 5% without an option to claim input tax credit. Besides, the Council increased the tax rate for caffeinated drinks to 28% from 18%; as these beverages, touted to be harmful to health, are now in the highest tax bracket, they will now also be subjected to a 12% cess.
GST Council did away with the requirement of filing annual returns for taxpayers up to Rs 2 crore turnover, as part of the moves to reduce compliance burden. However, it also introduced some new slabs for items like semi-precious stones, complicating the GST structure even further.
GST Council took an in principle decision to link Aadhaar with registration of taxpayers under GST and also examine the possibility of making the 12-digit unique identification number mandatory for claiming refunds.
20/09/2019
Corporate tax rate to be 22% without exemptions. Effective tax rate after surcharge to be at 25.17%. The new tax rate is subject to the condition that companies won't avail any other incentive. MAT reduced to 15% from 18.5%.
Effective tax for new company setting up from October 2019 shall be 17.1%. FM says Cos enjoying tax holidays can avail concessional rates after exemption period.
Total revenue forgone for Government is estimated around Rs 1.45 lakh crore per year because of tax cut. CSR 2% spending to include government, PSU incubators and public funded education entities, IITs.
Enhanced surcharge announced in Budget shall not apply on capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors
Buyback tax for listed companies announcing buybacks pre-July 5 is exempted. Enhanced surcharge will not apply to capital gains arising on equity sale or equity-oriented funds liable to STT stabilise flow of funds into capital markets.
19/09/2019
GST Council Meeting Outcome-
Hotel Tariffs Rs. 7,500 and above GST at 18%.
Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.
Hotel Tariffs below Rs. 1,000 GST at Nil rate.
Outside Catering GST rate reduced at 5%.
Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.
Council amended rules regarding Refund by Appellate Authority.
Council amended rules regarding GST Practitioners and Consumer Welfare Fund.
Cups/Plates made from Flowers leaves GST rate Nil from 5%.
GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
Those with turnover above 2cr to still file GSTR9.
No relief in case of GSTR-9C as it"s applicable only where turnover exceeds 2cr.
GSTR-9 also to be made "Saral".
18/09/2019
The government is looking at a single rate of 28% goods and services tax (GST) on lottery as part of the “one-nation, one-tax†principle, while also exploring the option of putting restrictions on online lottery.
The Goods and Services Tax (GST) Council is likely rationalise rates for five-star hotels in its meeting on Friday, holding out hopes for a boost to the tourism industry.
The new GST returns will replace the present system of GSTR-3B, GSTR-1 and the auto-populated GSTR-2A. Where GSTR-1 is the return of outward supplies, GSTR-2A is the detail of inward supplies (based upon GSTR-1 of your supplier) and the summary returns of GSTR-3B for payment of tax.
The new system comprises of a single main return called the RET-1-Normal. There are also 2 other RETs RET-2-Sahaj or RET-3-Sugam. These return forms are backed by two annexures ANX-1 (for tax liability) and ANX-2 (for input tax credit). The annexures must be submitted by all kind of taxpayers and are action-oriented.
17/09/2019
To boost the automobile sector additional 15% Depreciation will be allowed under Income Tax Act. 2% TDS in case of cash payments more than 1Cr through APMCs.
CBDT has eased the norms for initiating prosecution for various defaults including failure to transfer TDS and TCS to the government, under-reporting of income and non-filing of tax returns. CBDT said that there won"t usually be prosecution if the TDS/TCS not deposited is up to Rs 25 lakh and the delay is of less than 60 days.
16/09/2019
Government having detected frauds of close to Rs 50,000 crore, the Centre is looking to tighten processes, including those related to claiming input tax credit (ITC), and will focus on getting states to okay plans to shut down leaks and evasions at this week"s GST Council meeting.
Sebi is planning to set up a new whistle-blower mechanism for auditors and other 'gate-keepers' to report cases. The proposed move assumes significance in the wake of several auditors in the recent past decided to exit from their audit mandate after certain listed companies failed to take remedial actions despite financial wrongdoings having been flagged in their auditors' observations.
15/09/2019
Bank strike announced on 26th & 27th September, 28th September is 4th Saturday, 29th is Sunday. 30th half yearly closing. Oct 2 Gandhi Jayanthi holiday.
CBDT issues A one-time facility to apply for compounding of income tax offences has been launched and taxpayers can avail this opportunity by December 31.
14/09/2019
CBDT notified E Assessment Scheme Under Income Tax Act which is published in official gudget of India on 12 September 2019.
Income Tax Second Instalment of Advance Tax for FY 2019-20 is last date for depositing 15.09.2019.
13/09/2019
Biggest ever pan-India joint operation by Directorate General of GST Intelligence and Directorate General of Revenue Intelligence against fraudulently claiming refund of IGST by exporters.
GST regime and the IBC are locked in a seemingly intractable impasse, entangling companies undergoing resolution. Some are planning to take the indirect tax department to court over the issue. The GST software doesn"t allow companies to pay current or future taxes without clearing dues from earlier years. But under IBC, the tax department has to wait until all creditors get their dues before beginning recovery.
12/09/2019
MCA SPICe form containing relevant changes for incorporating Nidhi Companies is likely to be deployed on 12th Sep 2019 for filing purposes.
Non-executive directors cannot be prosecuted for offenses committed by the company. The accounts are signed by such directors in a routine manner and they are not subject to vicarious liability. Rajendra Shah s/o. Ambalal Shah vs. State of Maharashtra (Bombay High Court)
11/09/2019
Income Tax Section 12AA Registration cannot be cancelled unless CIT / Pr. CIT satisfied that activities of such trust or institution are not genuine. Case Name : St. Michaels Educational Association Vs CIT (Patna High Court).
GST Council will interact with the Finance Commission during its September 20 meeting at Goa expected to submit its report by November 30. It will suggest the formulae for the distribution of taxes between the Centre and States for a five-year period starting April 1, 2020.
MCA has notified the National Financial Reporting Authority (Amendment) Rules, 2019. The amendment includes notification of the eForm in which the auditor shall file the annual return with NFRA.
10/09/2019
Swiss banking details of its citizens, a large portion of the first tranche of data being shared by Switzerland under an automatic information exchange framework this month relates to accounts that have been already closed due to fear of action, bankers and regulatory officials said.
Tax receipts arising from a levy on payments made to digital advertising platforms such as Google and Facebook from Indian entities jumped 59% in the year ended March.The tax department collected Rs 939 crore in the year to 31 March, up from Rs 590 crore a year earlier.
09/09/2019
MCA: The Central Government has made further amendments to Schedule III to the Companies Act, 2013 vide Notification dated 11th October 2018 for a NBFC whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.
Sebi is working on a mobile app for e-voting by retail investors of listed companies to facilitate greater participation in management proposals, especially those related to corporate governance.
08/09/2019
TDS on cash withdrawals of over Rs 1 crore: Under the newly introduced Section 194N, a 2 per cent TDS on cash withdrawals of Rs 1 crore or more from banks or post offices kicked in on September 1.
CBDT clarified that if a person has already withdrawn Rs 1 crore or more in cash up to August 31 in the current fiscal, this TDS amount will not apply. Only subsequent withdrawals will be considered. "However, since the threshold of Rs 1 crore is with respect to the previous year, calculation of amount of cash withdrawal for triggering deduction under section 194N of the Finance Act shall be counted from April 1, 2019.
The limit of Rs 1 crore in a financial year is with respect to per bank or post office account and not a taxpayer's individual account. For example, a person having three bank accounts with three different banks can withdraw cash up to Rs 3 crore in a fiscal without any TDS.
TDS at the time of purchasing immovable property: Under Section 194-IA of the Income Tax Act, when a buyer buys immovable property, that is a building or part of a building or any land other than agricultural land, costing more than Rs 50 lakh, he has to deduct TDS at 1% of the total sale consideration. But in Budget 2019, amended the Act to include all charges such as club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of immovable property, while calculating TDS. This new rule is applicable for immovable property purchased on or after September 1.
So a house costing Rs 60 lakh, which till last week would incur TDS payment of Rs 60,000 (@1 per cent), will now be a costlier proposition. Assume you have paid Rs 2 lakh towards parking fee, Rs 1 lakh for water facility fee and Rs 1 lakh for electricity fee on September 1, your total sale consideration for the same house will now be Rs 64 lakh and the TDS payable will be Rs 64,000.
TDS on payments made to professionals and contractors: Another new addition to the Income Tax Act - introduced in the Finance Bill, 2019 - is Section 194M which applies to money paid by an individual or HUF for carrying out any contractual work or providing any professional service. If the payment made to a contractor or a professional or brokerage exceeds Rs 50 lakh in a financial year, the taxpayer is required to deduct 5 per cent TDS at the time of crediting such amount. Further if the PAN of the deductee is not available, then TDS will be deducted at 20 per cent.
The definition of contractual work covers advertising, broadcasting or telecasting, carriage of goods and passengers by any mode of transportation, other than railways, catering and manufacturing or supplying a customised product by using material purchased from the customer. On the other hand, professional services will include remuneration paid to directors excluding salary, such as sitting fees to attend board meetings, royalty and technical/professional fees.
TDS on life insurance proceeds: If life insurance maturity proceeds received are taxable, then the TDS will now be deducted at the rate of 5 per cent on the net income portion. The net income portion is defined as the total sum received less of the total amount of insurance premium paid. Earlier, the TDS was 1 per cent of the gross maturity payout under the policy.
Any money received from a life insurance policy, where the premium paid on the policy is more than 10 per cent of the sum assured for policies issued after April 1, 2012 - or 20 per cent for policies issued before this date - is fully taxable. Keep in mind that the exceptions to this rule under Section 10(10D) include policies taken after April 1, 2013, on the life of a person with a disability or a disease specified under Sections 80U and 80DDB, where the amount received on maturity is tax-free. The precondition is that the premium paid cannot exceed 15 per cent of the sum assured.
07/09/2019
CBDT said it has signed 26 advance pricing agreements (APAs) in the April-August period. The total APAs entered into by the board now stands at 297, which includes 32 bilateral APAs (BAPAs). APAs were introduced in 2012 by the government to provide tax certainty to those multinational corporations that agree to certain principles relating to the valuation of their cross-border transactions.
06/09/2019
SEBI has said that with effect from November 1, brokers will not be able to keep "unpaid shares" in various accounts or even pledge them. Small and mid-cap stocks worth thousands of crores that are lying with the stock brokers because clients have not paid full amount for purchasing them, could come for selling in the market as a consequence of a recent SEBI circular.
RBI bonanza appears to be a "one-time" measure and does not necessarily bode well in the medium term from a fiscal stand point. "It would be crucial for the government to meet or outdo divestment targets amid falling tax revenues." The government's revenue was dollar 24 billion short of its target last year.
05/09/2019
Income Tax Department will automatically issue PAN to a taxpayer using Aadhaar number for filing returns as part of a new arrangement to link the two databases.
According to a notification issued by the CBDT on August 30, a person who furnishes Aadhaar, as they do not have PAN, “shall be deemed†to have applied for allotment of PAN and they will not be required to apply or submit any more documents. The rule has come into effect from September 1, it said.
The notification said the tax department will “obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)†for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.
CBDT chairman P C Mody had told PTI in an interview in July that the department would “suo motu†allot a fresh PAN to a person who files I-T Returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.
In cases where Aadhaar is being quoted and PAN is not there, we could possibly think on the terms of allotting a PAN to the person (who is filing income tax return).
The law provides that the assessing officer can suo motu allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked, the CBDT chairman had said.
Mody was asked if the Income Tax Department-issued PAN will be dead after Finance Minister Nirmala Sitharaman in her Budget speech on July 5 announced that PAN and Aadhaar are being made interchangeable as the government will allow those who do not have PAN to file I-T returns by simply quoting their Aadhaar number and use it wherever they are required to quote PAN.
Linking of the two databases is now compulsory and backed by law, the CBDT chief had said. While Aadhaar is issued by UIDAI to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to a person, firm or entity.
Aadhaar holds all vital information of an individual such as name, date of birth, gender, photo and address, and also biometrics. The same set of information is required to get a new PAN.
As per data, over 120 crore Aadhaar numbers have been issued in the country and about 41 crore PAN numbers have been generated. Out of these, more than 22 crore PANs are linked with Aadhaar.
Section 139 AA (2) of the I-T Act stipulates that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate their Aadhaar number to tax authorities.
After the Supreme Court upheld the section 139AA, the government in March this year declared that the deadline for linking PAN-Aadhaar was available till September 30.
The apex court, in September last year, had declared the Centre"s flagship Aadhaar scheme was constitutionally valid and held that the biometric ID would remain mandatory for filing of I-T returns and allotment of PAN.
04/09/2019
The latest notification said the tax department will be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof.
CBDT notified creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. An order issued by the CBDT said that the 'startup cell' will be headed by the member (Income Tax and Computerisation) of the board.
03/09/2019
GST Notification No. 38/2019-Central Tax dated 31.08.2019 issued waiving requirement to furnish declaration in FORM ITC-04 for the period July, 2017-March 2018 and FY 2018-19.
GST Notification No. 40/2019- Central Tax dated 31.08.2019 issued to extend the last date for furnishing GSTR-7 for the month of July, 2019 to 20.09.2019 in J&K and specified 58 flood affected districts of 7 States.
GST Notification No. 41/2019- Central Tax dated 31.08.2019 issued to waive the late fees for the month of July, 2019 for FORM GSTR-1 and GSTR-6 to be filed by taxpayers in J&K and 58 flood affected districts across 7 States provided the said returns are furnished by 20.09.2019.
02/09/2019
Mutual Fund houses can now join hands with banks to rejig exposure and throw lifeline to stressed corporates albeit with a few conditions. In the past five years mutual funds have bank rolled several corporates by subscribing to debt instruments finance by investing in commercial papers issued by companies as well as financed holding companies of business houses directly controlled by promoters.
01/09/2019
The Govt has issued Notification 38/2019 on 31-08-2019 waiving off the requirements of filing ITC 04 for the year 2017-18 and 2018-19
GST law had mandated the principal who is sending goods for Job Work to file quarterly return called ITC 04.
The newly introduced ITC 04 utility required furnishing too much details and
the same utility was not functional since April till June hence the date was extended to 31st August 2019
But now for the year 2017-18 and 2018-19, the same has been waived off.
CBDT member Akilesh Ranjan, is arguing for a new tax regime for individuals. It has proposed dramatic changes to the Income Tax Act, which dates back 58 years. People earning between Rs 5 lakh and Rs 10 lakh per year may have to pay 10% income tax.
31/08/2019
CBDT has withdrawn enhanced surcharge on tax payable on the transfer of certain assets. In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharge levied by Finance Act, 2019.
CBDT Clarification on applicability of Tax Deduction at Source on cash withdrawals. 2% TDS on cash withdrawals of more than 1 crore in aggregate from a bank account. Applicable from 1 September 2019. Cash withdrawals done from 1 April 2019 till 31 August 2019 shall be counted for TDS purposes.
RBI released The macroeconomic environment remains “unsettled and financial markets are experiencing considerable flux†as the financial year 2019-20 progresses. “The key question that confronts the Indian economy as it looks ahead to the rest of 2019-20.
30/08/2019
Finance Minister announces merger of PSB Banks A. PNB + OBC + United Bank.
B. Canara Bank + Syndicate Bank.
C. Union Bank + Andhra Bank + Corporation Bank. D. Indian Bank + Allahabad Bank.
Due date for submitting income tax returns is 31st Aug 2019 for all cases in which income tax audit is not mandatory.
Task force on direct tax code has recommended abolishing the dividend distribution tax while retaining the longterm capital gains tax and securities transaction tax, a source in the know of the matter said.
29/08/2019
MCA has notified on its website that as per the Companies (Incorporation) Fourth Amendment Rules, 2018 dated 18th December 2018 a new form RD GNL-5 and changes to Form RD-1 has been notified.
RBI"s balance sheet should be strong enough to support banks if there is a need to recapitalise them during a financial crisis, said the report of the committee to review the economic capital framework (ECF) of the central bank.
RBI Governor may have ruled out an Asset Quality Review for NBFCs, but an ongoing central bank inspection of the books of non-bank companies shows that the exercise is as stringent as the official scrutiny that had earlier pushed high-street lenders to declare higher bad loans.
28/08/2019
The government-constituted task force, led by Central Board of Direct Taxation member Akhilesh Ranjan, had submitted its report to finance minister Nirmala Sitharaman on August 19, but it has not been made public yet. There is also no clarity on whether the government has set any timeline to adopt the recommendations.
According to sources, the panel has recommended that income tax for those earning above Rs 20 lakh, till Rs 2 crore, continue to remain at the previous rate of 30 per cent.
It has also proposed introducing a new top tax bracket of 35 per cent for the super-rich, that is those earning above Rs 2 crore in a year, and doing away with the surcharge. "The new rate of 35 percent for those with Rs 2crore ?and above income will also reduce effective rate for high net-worth individuals," sources said.
The rationalisation in tax slabs has been proposed to boost consumption and revive the economy by putting more money in the pockets of the middle income group. The task force was formed to made recommendations to replace the 58-year-old Income Tax Act. It is aimed at simplifying income tax provisions and improving tax certainty.
Some of the other recommendations which the task force has made includes, doing away with dividend distribution tax, doing away with minimum alternate tax. It has also recommended the government to discourage surcharges and the task force is of a view that if levied, surcharges should be temporary in nature.
27/08/2019
Gst Circular no 25-
IGST refunds- mechanism to verify the IGST payments for goods exported out of India in certain cases by furnishing CA certificate extended for fin year 2018-19 also
Gst Circular no 26-
IGST Export refunds- extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of Compensation cess. Due to invoice mismatches, rectification facility is allowed for shipping bills filed upto 31-07-2019
Income Tax Circular no 21- Clarification for filing Income tax returns in case of Non residents
For directorship in foreign companies and
Filling of Schedule Foreign assets by non residents
26/08/2019
LTCG from penny stocks cannot be treated as bogus if documentation is in order and no fault found by Assessing Officer. Chandra Prakash Jhunjhunwala Vs DCIT (ITAT Kolkata)
The LRS is extensively used by HNIs to transfer funds abroad up to the permitted limit of $250,000 every financial year. Under LRS, there is no restriction on the use of funds remitted abroad "" it can be gifted, spent freely, invested in financial securities, purchase of properties in any part of the world and so on.
25/08/2019
CBEC said the designated committee will take a decision within 60 days on declaration made by an assessee for relief under the service tax and excise duty amnesty scheme. Sabka Vishwas - Legacy Dispute Resolution Scheme, 2019, will become operational for four months beginning September 1.
GST Council will hold its 37th meeting on September 20 in Goa, but is unlikely to consider any rate reduction. Many sectors are clamouring for a rate reduction. They range from automobile to cement to biscuit. Now, if it is done for one sector, it can open floodgates. We should not forget the revenue situation.
24/08/2019
Supreme Court has said a deposit made by a debtor to show his bonafides in a case of loan settlement cannot be considered a secured asset under the SARFAESI Act and has to be refunded.“The deposit was not towards satisfaction of the debt in question, and that is precisely why the High Court had directed that the deposit would be treated (as) a deposit in the Registry of the High Court.
23/08/2019
CBDT said all communications made by the tax department to assessees from October 1 will carry a Document Identification Number (DIN) in order to promote transparency
Banks cannot charge for failed transactions, balance enquiry - RBI asked banks to not charge customers for failed transactions at ATMs or include it as part of the permitted "free ATM transactions" per month set for users
RBI makes it easier to deposit gold under scheme. Banks may, at their discretion, also allow the depositors to deposit their gold directly with the refiners that have facilities to carry out final assaying and to issue the deposit receipts of the standard gold of 995 fineness
21/08/2019
Indian startups with turnover in excess of Rs 25 crore may have to pay income tax even though they may be eligible for the three-year tax holiday announced by the government. That"s because under tax laws, the threshold for exemption remains at Rs 25 crore. It has not yet been enhanced to Rs 100 crore in line with the DPIIT
finance ministry has amended the Prevention of Money Laundering Act, 2002, to clarify the various modes of capturing customer details electronically, in what could potentially change the way regulated entities such as banks and telecom companies capture these details completely.
20/08/2019
SEBI announced that its board had approved to ease the regulatory framework for foreign portfolio investors (FPIs). Not only would these changes make life easier for FPIs, but would also enable a new class of investors to invest in India.
MCA through its General Circular has clarified the interpretation of the provision of section 232(6) of the Companies Act, 2013 w.r.t 'appointed date' and 'acquisition date' for the purpose of Ind-AS 103 (Business combinations) to be identified under the Merger Scheme's.
19/08/2019
CBDT Takes Steps to Ensure Transparency in Tax Administration by Bringing in Concept of DIN, It will be Effective from 1st Oct 2019
Circular No 19/2019 Dt 14.08.2019.
finance ministry may soon consult the law ministry on how best to provide relief to foreign portfolio investors (FPIs) from the super-rich surcharge that was announced in the July 5 budget. The government is exploring various options and the one considered most effective and legally feasible will be taken up.
Sebi has approached the finance ministry to seek special relaxations for technology companies that want to issue shares with differential voting rights (DVRs). The regulator had announced a new framework for DVR issuances after a board meeting on June 27. However, some of the regulations it has proposed will need amendments in laws such as the Companies Act and the Securities Contract Rules.
18/08/2019
RBI said housing finance companies (HFCs) would be treated as a category of non-banking financial companies, and that it would come up with revised guidelines for mortgage lenders after reviewing the regulatory framework. Until the new norms are announced, HFCs have to comply with the framework issued by the National Housing Bank (NHB), the RBI said.
The President of India has given his assent for the latest amendments in the landmark Consumer Protection Act, 2019 which aims to protect the rights of consumers by establishing authorities for timely and effective administration and settlement of consumers" dispute.
17/08/2019
I-T Department has spread its net wide and deep for catching those who have deposited unaccounted cash during demonetisation. In the latest directive to the officers, a 17-point checklist has been created, which has to be updated on a server for further action.
MCA has notified new versions of eForms viz. Form AOC-4 XBRL, Form AOC-4 CFS and Form SCP are revised and available on Company Form Download page at MCA website.
16/08/2019
RBI is unlikely to vote in favour of overseas sovereign bonds at its meeting with the government. The central bank is concerned that signals by overseas bonds could disrupt local bonds, which are controlled by the RBI.
Professional bodies including those representing lawyers, chartered accountants and architects, among others, as well as big economy companies such as Ola and Uber will have to soon start filing data on jobs created.
15/08/2019
The President of India has given his assent for the latest amendments in the Arbitration and Conciliation Act, 1996 and the same has been published in the Official Gazette of India as the Arbitration and Conciliation (Amendment) Act, 2019.
CBDT had exempted registered startups from the purview of the angel tax provision except for those that have already received tax demand notices with the intent of granting them relief at the appeals stage.
14/08/2019
Gift received by assessee from "HUF", being its member, was a capital receipt in his hands and was not exigible to income tax as in case of individual, the HUF has not been included in the definition of relative in explanation to section 56(2) (vii). Pankil Garg Vs PCIT (ITAT Chandigarh)
GST Less than a fifth of the businesses registered as regular taxpayers have so far filed their first annual returns (for FY18) under the new system, even as the deadline for the same is this month-end. This has raised concerns over the compliance readiness of the industry, and is threatening to undermine the ability of the tax administration to plug revenue leakages which are perceived to be large.
13/08/2019
Sebi has come up with a new set of proposals with the aim to improve transparency and the quality of portfolio management service (PMS) in India, besides improving distribution practices. PMS products currently have a minimum investment limit of Rs 25 lakh and are typically sold to high net-worth individuals.
Sebi is planning to ease its norms for 'Muni Bonds' to help smart cities and other registered entities working in areas of city planning and urban development work, like municipalities, raise funds through issuance and listing of their debt securities.
12/08/2019
Government informed the Supreme Court that an expert panel has recommended complete ban on private crypto currencies in the country and the Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, will be introduced in Parliament in the next session.
RBI announces NEFT facility will be available round-the-clock for customers.
11/08/2019
Only about 15% of taxpayers have filed GST Returns - CBIC. The last date to file GSTR 9, GSTR-9A and GSTR-9C is August 31, 2019, but the dismal figures has prompted Das to get the tax Commissioners to help out with the process and expedite the return filing process
NCLT allows Government to ban Deloitte, BSR for five years. This is the second setback for these foreign audit firms as earlier the tribunal had allowed the corporate affairs ministry to prosecute them along with 21 others in the same case
10/08/2019
CBDT said the department would "summarily accept" contention of start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), if the notices pertained only to the angel tax section.
Sebi said investment provisions for domestic Alternative Investment Funds (AIFs) will also be applicable for such entities operating in international financial services centre (IFSC). SEBI circular comes after it held consultations with stakeholders and decided to harmonise the provisions governing investments by AIFs incorporated in IFSC with those applicable to domestic AIFs.
08/08/2019
Sebi wants Mutual fund houses to shift all their investments to listed or to-be-listed equity and debt securities in a phased manner and reduce their exposure to unrated debt instruments from 25 per cent to only 5 per cent.
MCA has notified the Insolvency and Bankruptcy Code (Amendment) Act, 2019 which shall come into force from the date of the publication in the official gazette i.e 06-08-2019.
07/08/2019
SEBI has directed depositories to freeze securities of promoters and directors of listed companies that failed to ensure updating the database with the distinctive number of equity shares.
Supreme Court has ordered A builder cannot “impose†upon a buyer to take possession of a ready house if it is delayed, and the customer is justified in seeking a refund.
Finance Minister announced that there will be a change in the rule and the rate of TDS on the maturity amount, where the premium amount is more than 10% of the sum assured (more than 20 % of sum assured (SA) for policies issued between April 1, 2003 and March 31, 2012).
06/08/2019
Parliament approved the Code on Wages, 2019, a move that could extend the benefit of obligatory minimum wages to all workers not just those in "scheduled employments" as at present. The code, which does away with the variation in minimum wages across sectors, received the Rajya Sabha nod on Friday.
RBI barred NBFCs shall not charge foreclosure charges/pre- payment penalties on any floating rate term loans sanctioned for purposes other than business to individual borrowers, with or without co-obligants," RBI said in a notification, without specifying from when the new rules will be effective.
04/08/2019
RBI allows Bank of China to offer regular banking services in India.
GST collections rose by 5.80 per cent to Rs. 1,02,083 crore in July from a year ago, the Ministry of Finance sai
CBDT notified that it is mandatory to quote your Aadhaar number while filing ITR unless specifically exempted. The notification further specifies that tax return cannot be filed either electronically or manually without quoting Aadhaar number. To quote your Aadhaar number in your ITR, additional spaces have been provided.
GST collection was above Rs 1 trillion in July, mainly on account of higher mop-up under the integrated GST. GST collection at Rs 1.02 trillion in the month was slightly more than 2 per cent higher than the Rs 99,939 crore in June and 5.8 per cent higher than the Rs 96,483 crore in July last year.
03/08/2019
MCA Charge filing fees new structure wef 1 August 2019: 1. Within 30 days - Normal Fees, 2. Delay Up to 30 days - 6 times normal fees, 3. Delay More than 30 days and up to 90 days - 6 times normal fees plus ad valorem fees 0.05% of amt secured by charge subject to maximum of Rs.5 lacs.Note: 120 days and above charge will not be taken on record by MCA.
GSTN releases offline tool of new GST return for trial run. The offline tools have been released for Annexure of supplies (GST ANX-1) and Annexure of Inward Supplies (GST ANX-2), GSTN, which is the IT backbone of the indirect tax regime
02/08/2019
Government is looking to set a revenue threshold of Rs 20 crore and a limit of 500,000 users above which non-resident technology companies such as Google, Facebook and Twitter will have to pay direct taxes on profits earned locally.
CBDT has exempted, a non-resident, not being a company or a foreign company, from the requirement of furnishing a return of income under Section 139(1) of the Income Tax Act from Assessment Year 2019-20 onwards,
MCA issued notification that Companies their Registered office is in the State of Haryana, now will be managed by Registrar of Companies, Chandigarh.
MCA Form AOC-4 XBRL is likely to be revised on MCA21 Company Forms Download page w.e.f 1st August, 2019.
01/08/2019
CAG has rapped direct tax authorities for irregularities in assessments of personal income and corporation taxes over the years. In a report on direct taxes for 2018-19 tabled in Parliament, the auditor suggested that the government consider the information technology system for direct taxes.
SEBI has issued a circular on Streamlining the Process of Public Issue of Equity Shares and convertibles Implementation of Phase II of Unified Payments Interface with Application Supported by Block Amount.
CBDT given relief to Non- resident individuals and foreign companies have now been given a compliance relief as part of the government"s efforts to attract more investment fund activity in the International Financial Services Centre (IFSC) located in India.
31/07/2019
Supreme Court in the matter of Peerless General Finance And Investment Co Ltd vs. CIT stated that The primary liability and onus is on the Dept to prove that a certain receipt is liable to be taxed. Deposits collected by a finance company are capital receipts and not revenue receipts.
Bombay High Court in the matter of PCIT vs. Paramshakti Distributors Pvt. Ltd held that Despite admission by the assessee that the purchases were mere accommodation entries, the entire expenditure cannot be disallowed. Only the profit embedded in the purchases covered by the bogus bills can be taxed.
GST: the government has been grappling with evasion through fake invoice. Assessees identified as "risky" could face restrictions on issuing invoices, utilisation of input tax credit and sanctioning of refunds.
30/07/2019
Delhi High Court has given relief to a company as it"s required to give information to the Director-General of Anti-profiteering (DGAP) only about the "complained product" and not about every product it produces. The complaint can be made by any consumer or even a tax officer can suo motu files a complaint.
Rajasthan High Court rules Benami Amendment Act, 2016, can"t be effective retrospectively. The tax office has been rampantly invoking the law "retrospectively" to slap notice, confiscate property, and initiate prosecution. It justified the actions on the grounds that the prime intention of the original Benami Act of 1988 was to make benami transaction an offence and clamp down on unjust gains and tax evasion.
29/07/2019
MCA has notified the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 which shall come into force on the date of their publication in the Official Gazette i.e 25th July 2019.
SEBI is considering a proposal to allow commodity futures sellers to deliver goods from their own warehouses, rather than moving them to exchange-accredited warehouses. Once implemented, the move will cut costs for commodity participants and help widen the market base by letting all warehouses hedge part of their inventory on the exchange platform.
28/07/2019
NCLT finally cleared the Rs 4,350-crore bid by yoga- exponent Ramdev-run Patanjali Ayurved to take over edible oil player Ruchi Soya, which owes over Rs 9,345 crore to the lenders & around Rs 2,800 crore to other creditors.
Government extends Budget session till August 7. The decision was taken at a meeting of the Cabinet Committee on Parliamentary Affairs here.
27/07/2019
Parliament approved an amendment to the RTI Act that gave the government powers to decide salary and service terms of the statutory body head and its members, with Rajya Sabha passing it by a voice vote.
Finance minister said that the direct tax collection target for the current fiscal is "eminently achievable" given that the mop-up has nearly doubled in the last five years. the direct tax collection has grown by about 80% to Rs 11.37 lakh crore in FY19. The Budget estimate for the current fiscal is at Rs 13.35 lakh crore.
26/07/2019
Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 have been notified w.e.f 25th July 2019. Now eForm DIR-3 KYC is to be filed by an individual who holds DIN and is filing his KYC details for the first time or by the DIN holder who has already filed his KYC once in eform DIR-3 KYC but wants to update his details.
MCA : Web service DIR-3-KYC-WEB is to be used by the DIN holder who has submitted DIR-3 KYC eform in the previous financial
year and no update is required in his details.
25/07/2019
SEBI notifies revised procedure/ formats for Limited Review/ Audit Reports of Listed Entities (including those entities whose accounts are to be consolidated with the listed entity), applicable with respect to the financial results for the quarter ending 30 September 2019 and onwards.
Government introduced the Insolvency and Bankruptcy Code (Amendment) Bill, 2019, in the Rajya Sabha on Wednesday, seeking to restrict the duration of the resolution process and ensure the primacy of financial creditors in case of recoveries.
24/07/2019
The income tax department has issued notices in 384 cases involving undisclosed foreign assets and income of over rs.12,260 crores under the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act till 30th May 2019.
So far, the tax department has brought undisclosed income of more than Rs.8460 crores and penalty of more than Rs.1290 crores has been levied in the non reported HSBC foreign bank accounts.
A belated income tax return attracts a "late filing fee" under Section 234F of the Income Tax Act, as per current income tax laws. An income tax return or "return of income" not furnished on or before the due date is known as a belated return. Filing a belated income tax return attracts a penalty up to Rs 10,000.
23/07/2019
The finance ministry has extended the deadline for filing income tax return (ITR) for FY2018-19 by individuals to August 31, 2019 from July 31, 2019.
The extension is a much needed relief as there were multiple problems being faced by individuals in filing returns by July 31. July 31 was the deadline to file income tax returns for most individuals and HUFs. This is that category of individuals and HUFs who are not mandatorily required to get their accounts audited for tax purposes.
Super-rich will have to pay interest on the advance tax instalment that was due on June 15, in line with their increased liability on the back of higher surcharge on those with incomes above Rs 2 crore. It will be effective from April 1.
An increase in the effective tax rate will affect only high net-worth individuals, and according to government policy they should contribute more to nation building, the finance minister said The controversial super-rich tax on foreign portfolio investors (FPIs) that are organised as trusts will stay undiluted as Parliament passed the Finance Bill.
Super-rich Indians are rushing to buy tax-free bonds, which offer an effective double-digit return in the proposed new tax regime, at a time when uncertainty has gripped the stock market. state-run firms with tenures of 10, 15 and 20 years are available for purchase on the secondary market.
22/07/2019
Ministry of Finance has exempted gems and jewellery taken for display at exhibitions abroad from Integrated GST. Till now, gem and jewellery taken out of India for exhibition or consignment purpose was considered as reimport when bought back into the country and IGST was levied.
Flat owners will have to pay GST at 18% if their monthly contribution to RWA exceeds Rs 7,500, RWAs are required to collect GST on monthly basis by way of supply of services and goods exceeds Rs 20 lakhs.
21/07/2019
Government wants the Competition Commission of India (CCI) to conduct a survey or an investigation to assess whether the Big Four that include PwC, EY, Deloitte and KPMG are abusing their dominant position in the audit market.
ITRs have changed the rules for reporting foreign accounts and assets for the financial year 2018-19 requires the taxpayers who are considered ordinarily resident to disclose their overseas bank accounts/assets, held at any time during the "relevant accounting period".
GST Council will meet on July 25 and decide on lowering tax rates for electric vehicles, is also likely to decide the valuation of goods and services in solar power generating systems and wind turbine projects for the purposes of levying GST.
20/07/2019
Government is planning to amend the Insolvency and Bankruptcy Code to facilitate "cout-of-court" waiver of debt up to Rs 35,000 through mediation to save millions of poor, including small farmers, from the rigours of insolvency process.
Govt has tightened the anti-money laundering laws by expanding the ambit of the "œproceeds of crime", which now includes properties and assets created through any criminal activity even if it is not under the Prevention of Money Laundering Act (PMLA). These crimes will now be considered as “relatable offenceâ€.
19/07/2019
Government said select business process outsourcing (BPO) services will qualify as exports and therefore won"t be subject to goods and services tax (GST), marking a substantial relief for the country"s $167 billion IT and ITeS (information technology-enabled services) sector.
CBDT new guidelines says that any offence connected to undisclosed foreign bank account or assets in any manner cannot be compounded. Revised guidelines of Income Tax and to make strict decision against tax invaders new Income Tax guidelines has came into effect from June 17, 2019.
18/07/2019
Due date for tax filing (Non-audit case) for FY 2018-2019 is *31 July, 2019. Non filling of ITR may result in: Imposition of penalty of Rs. 1000/Rs.5000/Rs.10,000. Notice from Income Tax department. Not being able to obtain refund of excess TDS Deducted. Penal interest of 1% per month or part thereof on tax liability.
MCA has Revised version of the eForm BEN- 2 (Return to the Registrar in respect of declaration under Section 90) effective from today i.e 17th July, 2019, and shall be available on MCA21 Company Forms Download page.
17/07/2019
The increase in effective tax rate to 43% for those earning Rs 5 crore and more has spread disquiet in India Inc"s Csuite, raising the possibility of salary reviews. As per the latest records available, 144 executives of BSE 500 companies on average earned Rs 11.4 crore annually.
GST collection of states and union territories increased to Rs 5.18 lakh crore in the financial year 2018-19, a significant rise from Rs 2.91 lakh crore in 2017-18, Finance Minister said the Centre government released Rs 81,177 crore compensation to the states during the fiscal year 2018-19 against Rs 48,178 crore released in FY18.
Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets, Fitch Ratings said.
16/07/2019
Ministry of Labour & Employment: The Union Cabinet has approved for the introduction of the Code on Occupational Safety, Health and Working Conditions Bill, 2019 in the Parliament.
Ministry of Housing and Urban Affairs (MHUA) released the draft Model Tenancy Act, 2019, which aims to regulate rental housing by a market-oriented approach.
15/07/2019
Total number of entities filing GST returns has seen steady declined in the last four months for which data is available. Between February and May this year, the number of entities filing GST return has declined by almost 8 lakh, which is nearly 10% of the total GST return filed in the country.
RBI is examining the priority sector lending norms for promoting export credit, Commerce and Industry Minister Piyush Goyal said. Certain enabling guidelines are under consideration and when issued, those are expected to release additional Rs 35,000-68,000 crore export credit under priority sector.
14/07/2019
The last date of 30th September still stands but as per Budget 2019, the operative word has been proposed to be changed from 'invalid' to 'inoperative', with effect from September 1, 2019
If a person fails to intimate the Aadhaar number and link PAN with Aadhaar, the PAN card will be made "inoperative".
Income Tax Return (ITR) filing compulsory for persons who deposit over Rs 1 crore in a current account in a year, spend over Rs 2 lakh on foreign travel or have an annual electricity bill of more than Rs 1 lakh.
Persons receiving income upto Rs. 50 lakh from salary/1 house property/other income, file Income Tax Return SAHAJ by 31.07.2019.
Avoid late fee of Rs. 5000.
13/07/2019
Govt has sought information from the Sebi about the origins of those foreign portfolio investors (FPIs) that use the trust structure and the assets that they manage. It also asked for data on the tax liability of each of the structures employed by FPIs- trusts, companies and LLPs.
MCA is considering a proposal to expand the powers of regional directors to do mergers and acquisitions (M&As) of higher categories to bring down the burden on the NCLTs.
RBI slashed by half its US dollar purchases in May from the month before to just about dollar 2.5 billion as the inflows slowed amid uncertainty over US interest rates and elections. RBI bought dollar 5.1 billion and sold dollar 2.6 billion in May, taking net spot dollar purchases to dollar 2.5 billion.
Govt has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 lakh crore, a task that the CBDT chief said is difficult but achievable. He also said that the government can only think of further "lowering" corporate tax rates once the exemptions and deductions in this sector are phased out.
Govt has ruled out a rollback of the "super-rich" tax on foreign portfolio investors (FPIs) organised as trusts or AOP. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge.The move will hit 40% of the FPIs.
About 2 lakh individuals/business entities withdrew amounts in excess of Rs 1 crore each from their bank accounts in FY18, aggregating Rs 11.31 lakh crore. Such large-scale cash withdrawals, most without any legitimate economic/ commercial rationale, are what prompted the government to impose a 2% TDS on such withdrawals.
12/07/2019
Due date for submitting income tax returns is 31st July 2019 for all cases in which income tax audit is not mandatory. Ensure to file your returns within time to avoid penalties.
finance ministry shows that about 40% of foreign portfolio investors (FPIs) " those that follow the trust structure " will be impacted by the higher surcharge levied in the budget. The majority 60% of FPIs that use the corporate structure will not be impacted.
11/07/2019
Supreme Court asked the central government if it had a “uniform proposal" outside of the Insolvency and Bankruptcy Code framework to resolve the problems being faced by millions of homebuyers who had not got the possession of their flats despite having paid for these properties to the real estate builders.
RBI norms on large exposures for banks are not only compliant with the Basel requirements, they are stricter in some areas as well, according to the findings of the Basel Committee on Banking Supervision.
10/07/2019
Budget has proposed to make Income Tax Return (ITR) filing compulsory for persons who deposit over Rs 1 crore in a current account in a year, spend over Rs 2 lakh on foreign travel or have an annual electricity bill of more than Rs 1 lakh.
Govt is planning another round of overhaul of the FDI policy with changes across sectors including insurance, contract manufacturing, digital media, and information utilities, besides single-brand retail trade. The insurance sector could be opened up to 74 per cent FDI under the approval route to bring parity with the banking sector.
GST: Centre will now pay the input tax credit (ITC) refunds of state taxes, thereby reducing transaction time and costs, and manual interface in claim processing. The central government has been authorised to pay the amount of refund towards state taxes the taxpayers,- according to the 2019-20 budget.
RBI Governor said that the financial system"s liquidity is in “huge†surplus and the Union Budget"s announcements related to NBFCs are adequate to take care of the liquidity needs of the sector. We have also announced a liquidity back stock for banks to implement the NBFC package announced by the FM in the Budget.
09/07/2019
The taxman will 'suo motu' allot a fresh PAN to a person who files tax returns with only Aadhaar as part of a new arrangement to link the two databases, the CBDT chief said after the Budget proposed that only the biometric ID is enough for tax purposes.
Budget proposal to raise the tax burden on the mega-rich could also affect about 2,000 foreign funds that are legally equivalent to associations of persons (AOP), a class of income earners required to pay more taxes after new liability slabs were created in the federal budget.
08/07/2019
Nearly 4,000 companies set to gain from corporate tax reduction. The government"s move to reduce the corporation tax rate to 25% will benefit around 4,000 companies with the Centre expected to forego Rs 3,000 crore revenue annually.
Income Tax authorities soon start targeting undisclosed overseas assets of individuals, who had acquired those when they were residents in India but had since become non-residents. Changes proposed to the black money law as part of the 2019-20 budget are aimed at covering such NRI who possess undeclared overseas assets.
GSTR 3B is not a Return, hence there is no due date for availment of missed out credits. Gujarat High Court Order in the matter of AAP & Co.
07/07/2019
Madras High Court has asked the ITAT not to dismiss appeals merely because a taxpayer failed to make an appearance before its bench, and instead take a proper decision based on the merits of the case. Experts said the judgment will set a precedent in several cases as the ITAT currently dismisses almost all appeals against tax claims if the affected taxpayer is not able to present his case at the hearing.
Input Tax Credit will not be available on the GST paid on expenses incurred towards promotional schemes, an order by the Maharashtra Authority for Advance Ruling (AAR) has said. Although AAR rulings are applicable for the applicant and the jurisdictional tax officer in a particular matter, the same can be used a persuasive tool in similar matters.
GST dept has extended by three months till July 31 the deadline for service providers with turnover of up to Rs 50 lakh to opt for the composition scheme and pay 6% GST. The GST Council has permitted such service providers to opt for composition scheme and pay taxes at reduced rate of six per cent beginning April 1, 2019. This is against the higher rates of 12 and 18 per cent levied for most services under GST.
06/07/2019
MCA notifies Nidhi (Amendment) Rules, 2019 and notified new Form NDH-4 i.e Form for filing an application for a declaration as Nidhi Company and for updating of status by Nidhi's which shall come into force with effect from 15 August, 2019.
Securities Appellant Tribunal (SAT) remanded the matter to Sebi, directing the capital markets regulator to hear out all parties involved and pass a final order by July 17. According to the SAT"s directives, all parties involved have to submit their representation to Sebi by July 8.
05/07/2019
CBDT said that India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures (MLI) to prevent Base Erosion and Profit Shifting (BEPS), which will pave way for amendments to double taxation avoidance agreements (DTAA) with the countries signatories to the convention to plug revenue leakages. “On 25th June, 2019, India has deposited the instrument of ratification to OECD, Paris along with its final position in terms of Covered Tax Agreements (CTAs), reservations, options and notifications under the MLI, as a result of which MLI will enter into force for India on October 1, 2019 and its provisions will have effect on India"s DTAAs from FY20-21 onwards.
GST Clarification regarding Annual Returns and Reconciliation Statement via Press Release, Ministry of Finance , 03rd July 2019 Key points:-
GST; Role of CA is made clear. It is confined only to reconciliation of GSTR 9 and books and nothing beyond books. Expenses reco - Details of expenses on which ITC has been availed need to be given.
GST; Turnover for audit is to be reckoned from July 2017 to March 2018 and not for full financial year. Table 8 is only for settlement purpose and will not be reckoned adversely.
GST: Table 16A (Information on supplies from composite suppliers) and 18 (HSN summary of inward supplies) also for informative purpose only.
CBIC has exempted any supply of goods to an outgoing international tourists made by a retail outlets established in the departure area of international airports, beyond the immigration counters from payment of IGST along with Cess. This notification would be effective from July 1, 2019 [Notification No. 11/2019-Integrated Tax (Rate)]
04/07/2019
MCA notifies Companies (Significant Beneficial Owners) second Amendment Rules, 2019 and also notified revised FORM NO. BEN-2 " Return to the Registrar in respect of declaration under section 90 which shall come into force on the date of their publication in the Official Gazette i.e 01-07-2019.
MCA has extended the last date for filing of Form NFRA-1 for all bodies corporate governed by NFRA Rule 3(2) and 3(3), on the basis of the representations received from stakeholders.
03/07/2019
GST Council extending the tenure of the NAA by two years. The Council had also approved imposition of an additional penalty of up to 10% of the profiteered amount if the companies don"t pay up a fine of Rs.25,000 in 30 days.
Delhi High Court has held that imposition of moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 (IBC) does not take away the Debt Recovery Appellate Tribunal"s (DRAT) power to recall or modify its earlier order on appointment of Court Commissioners against a corporate debtor.
MCA: Form BEN-2 (Return to the Registrar in respect of declaration under Section 90), is likely to be made available for filing on the portal w.e.f 2nd July 2019. General Circular No: 07/2018 dated 6th September 2018.
SEBI has mandated that the second phase of Unified Payments Interface (UPI) mechanism as an alternative for retail investors to buy shares in a public issue will be effective from 1 July.
RBI with effect from June 29, 2019, replaced the email-based annual reporting of Foreign Liabilities and Assets (FLA) by direct investment companies, with web-based Foreign Liabilities and Assets Information Reporting (FLAIR) system
01/07/2019
RBI has issued various Master Circular dated 01-07-2019
Detection and Impounding of Counterfeit Notes
Facility for Exchange of Notes and Coins
Credit Facilities to Minority Communities
Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)
Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
Scheme of Penalties for bank branches based on performance in rendering customer service to the members of public
29/06/2019
CBDT expanded the terms of reference (ToR) of the expert panel constituted to rewrite direct tax legislation. new draft report on the direct tax code will modify five major procedures pertaining to tax litigation, faceless scrutiny, exchange of information, compliance, and financial transactions.
CBDT has directed zonal heads of the income tax department to share information related to assets and liabilities of defaulters with banks on their request. In a directive issued to principal chief commissioners of the IT department, the CBDT said an official of the commissioner rank and above can share such information with the applicant if the former is satisfied that it is in the public interest.
28/06/2019
CBIC has developed risk parameters for selecting taxpayers to be audited on the basis of annual returns. However, the department has instructed officials to move to desk-based filing for small taxpayers, instead of the traditional method of premise-based audits.
GST can be levied on service charge, if it is part of the total bill, as rules make it clear that any fee or charge, until exempted, will be taxable. However, the problem is with the legal character of service charge.
MCA issued clarification regarding filing of FORM DIR-3 KYC on 27.06.2019. DIR-3 KYC date will be extended and method of doing KYC will be updated.
27/06/2019
RBI issued Rupee Interest Rate Derivatives (Reserve Bank) Directions consolidating and simplifying all previous regulations with a view to protect small and retail participants.
Promoters can take part in liquidation process once their companies are out of the purview of the Insolvency and Bankruptcy Code (IBC). Section 29A of the IBC does not allow non-performing asset (NPA) holders, including promoters, to take part in the resolution process.
26/06/2019
Importers do not need state-wise registration under GST regime
Importers with godowns or those which store goods at customs warehouses in different states got relief from the advance authority of ruling (AAR) under the goods and services tax (GST) regime.
The AAR, Maharashtra, in two recent rulings, said that these companies do not need a separate registration in each state and that a registration where their headquarters are located would be enough. These firms can sell products in different states and raise invoices against their head offices, it ruled.
Finance Minister, planning to link GST's e-way bill system to NHAI's Fastag system
The government has proposed to add Fast Bank bank system with e-way bills and logistics services. The Government expects that it will be possible to monitor the transport of goods and the GST will stop the piracy. Minister of Finance and Company Affairs Nirmala Sitharaman said in a written reply to the Lok Sabha in the Lok Sabha on Monday that the government is considering connecting GST's e-way bill system to the National Highway Authority of India (NHAI) with the Fastag system
25/06/2019
Inter-state office services to come under GST net
The government is set to make it clear that services provided by an office of an organisation in one state to another office in another state will face goods and services tax, or GST.
A circular to this effect, endorsed by the GST Council, will be issued soon, a government official told ET.
This is in line with the view taken by Karnataka Authority for Advance Rulings (AAR) that in-house functions such as human resources and payrolls, if carried out from a centre in one state for offices in other states, will face GST, for which invoice will have to be issued.
Anti-profiteering investigation: Mock purchases, premise visits planned to check B2B invoices
Taxmen could carry out "mock purchases", visit premises and check invoices issued by top 20 goods and services suppliers as part of anti-profiteering investigations in their respective areas under the new tightened framework under Goods and Services Tax.
GST officers conducting antievasion verification, audits, inspections or search operations may also include checks from anti-profiteering perspective, according to the new stringent monitoring mechanism for taxmen to keep a check on companies for profiteering from reduction in tax rates or availability of seamless input tax credit endorsed by the Council.
22/06/2019
According to the recent change in Companies Rule 2014, by the Ministry of Corporate Affairs India, all unlisted public company are required to issue the securities only in dematerialised form and facilitate dematerialisation of all its existing securities. It is expected that the same provisions for dematerialisation of securities may be applicable in the near future upon the unlisted private companies as well
21/06/2019
GST COUNCIL Meeting Decisions
GST Council extends annual return date for GSTR 9/9A/9C from 30th June to 30th August 2019.
NAA given two years extension. Looks like rationalising of 28% slab is on cards.
GSTAT to be GST Appellate Tribunal. States to decide number of GSTAT required by them.
Reduction in rate of electric vehicle deferred and given to fitment committee.10% penalty introduced for non payment within 30 days in case of Anti-profiteering.Single return form per month for the taxpayers.
Electronic invoice forms approved by the Council. No separate e-way bill will be required in case of e-invoice. Returns to be framed from these e-invoice.
Mandatory E-ticketing for multiplexes.
20/06/2019
India advance tax figures grew exponentially by 171 per cent during the first quarter of 2019-20, In overall direct tax collection, Mumbai has registered 133 per cent growth, collecting Rs 17,174 crore of advance taxes against Rs 7,356 crore in the same period.
GST return filing: As proposed by the GST Council, a trial run of the new return filing mechanism called the GST 2.0 is expected to be launched starting July 2019. A full scale launch is likely to begin in a phased manner starting October 2019. Under the new return system there is one basic return and annexures.
RBI"s monetary policy is primarily focused on inflation and growth, the underlying theme has always been financial stability. “In a flexible inflation targeting framework, a delicate balance needs to be maintained between inflation and growth objectives.
The Securities and Exchange Board of India has come out with strict disclosure norms for credit rating agencies wherein they will be required to provide the probability of default for various rated instruments.
19/06/2019
DGFT has issued a Public Notice to waive off the requirement of obtaining destruction certificates by the authorisation holders from the jurisdictional Central Excise / Customs authorities, for the unutilized duty-free imported material in case of imports from unregistered sources with pre-import conditions.
CBDT has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset. The latest guidelines which come into effect from June 17, clearly state offences in this category cannot normally be compounded. However, finance minister can relax restrictions on consideration of a report from CBDT.
CBDT has issued notification no 10/2019 for further changes in rule 31A(5) and 31AA(5) for e-filing of TDS returns. The procedure is same as issued as earlier, now the tds return can be validated either through DSC or EVC. The EVC generation is same as ITR EVC.
Businesses will be able to use the new return filing forms under Goods and Services Tax (GST) on a trial basis for three months beginning July, spelling out the transition plan for the new tax return filing system.
SEBI tightens disclosure norms for credit rating agencies wherein they will be required to provide the probability of default for various rated instruments. The regulator's move comes against the backdrop of rising instances of debt defaults and concerns over the role of credit rating agencies.
RBI asked banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance security of the cash vending machines. In 2016, the RBI had set up a Committee on Currency Movement (CCM) to review the entire gamut of security of treasure in transit.
18/06/2019
The government is considering a proposal on creating a special purpose vehicle (SPV) similar to the Goods and Services Tax Network (GSTN) to monitor and screen commercial borrowers.
The SPV would be vested with a giant database collated from information available with all public sector banks. The database would be used to develop a dynamic rating model to monitor borrowers" financial health.
GSTN is a non-profit, non-government, private limited company in which the central government holds 24.5% equity. States and the empowered committee of state finance ministers together hold another 24.5% and the rest 51% is owned by non-government financial institutions. It is tasked with operating the complex state and central tax systems on a single platform using technology.
17/06/2019
Tightening the screw on tax evaders, the revised guidelines issued by the Income Tax (I-T) Department have made serious offences under black money and benami laws "generally" non-compoundable.
This means that a person or entity would not be able to settle a case of tax evasion by just paying the tax demand, penalty and interest.
The new guidelines kicked in from Monday and applies to all cases for compounding received on or after this date.
Offences forming category 'A' include failure to pay tax deducted at source under Chapter XVII-B or tax payable under Section 115-0. Failure to pay the tax collected at source also falls under this category.
The category 'B' offences include willful attempt to evade tax, failure to produce accounts and documents, and false statement in verification.
16/06/2019
Every company which has accepted monies considered as “Exempted Deposits†needs to file a one-time return in Form DPT-3 by 29th May, 2019 for reporting such Exempted Deposits accepted between 1st Apr, 2014 to 31st March, 2019.
Similarly, all Companies which have accepted monies considered as Deposits or Exempted Deposits also need to file an annual return in Form DPT-3 by 30th May, 2019.
15/06/2019
Withdrawing a cumulative ?10 lakh a year can attract 3-5% as per the upcoming Budget to track high value cash deals and make digital payments mandatory.
SEBI proposes a mechanism to formalise the process of receiving info., to protect & award such whistle-blowers who expose insider trading violations. The total amount of monetary reward, under certain conditions, could be 10% of the monies collected but shall not exceed Rs 1 crore.
RBI announces that commercial banks need to offer holders of basic savings bank deposit (BSBD) accounts, a minimum of 4 withdrawals in a month, including ATM withdrawals. The rules will come into force from 1 July.
FDI equity inflows into the India's Drugs & Pharma Industry dropped by 73% to $266 million (around Rs 1,842 crore) b/w April 2018 and March 2019, from $1.010 billion (around Rs 6,502 crore)
14/06/2019
ESI Update:
The Government has decided to reduce the ESI contributions w.e.f 1 July 2019.
Revised contributions are
Employer: 3.25%
Employee: 0.75%
Total : : 4%.
Source : Ministry of Labour & Employment press release dated 13 June 2019.
ESI contribution reduced from 6.50% (4.75+1.75) to 4% Effective rates from 01.07.19
No Eway bill w.e.f. 21st June 2019, if GST returns of last 2 months are pending. A new rule 138E was inserted by the Govt vide its notification no 74/2018 dated 13.12.2018, which has salient features as follows:-
If the GST returns for the last 2 months have not been furnished by the regular dealer or If the GST returns for last 2 quarters have not been furnished by the composition dealer Then He Will Not Be Allowed To Generate Eway Bill On The Gst-Eway Bill Portal.
13/06/2019
TDS needs to be 31.2% of the rent, unless the NRI landlord furnishes a certificate stating that his total income in India is estimated to fall below the tax exemption limit
Failing to deduct TDS from an NRI landlord can also attract a penalty equal to tax not deducted under Section 271C of the Act
12/06/2019
As a taxpayer, you need to file Annual Return Form GSTR-9/9A/9C for financial year 2017-18 on GST Portal latest by 30th June, 2019. Kindly note that Annual Return is to be filed even if the taxpayer has cancelled his GST Registration during this financial year.
The taxpayers are required to file Form GSTR 1 / GSTR 4, and GSTR 3B for all the period July 2017 to March 2018, before filing Annual Return. Please ensure you have filed all applicable return for this period.
In case you were composition taxpayer for certain period and then became regular taxpayer, during Financial Year 2017-18, you are required file annual return Form GSTR 9A as Composition taxpayer and GSTR-9 as regular taxpayer. In other words, such taxpayers will file both Form GSTR-9 and Form GSTR 9A for the Financial Year 2017-18.
11/06/2019
GST Return filing system will be implemented from October 2019. From July through offline tools its trial will start. Businesses with more than 5 million turnover will have to pay quarterly returns to monthly and lesser traders. The current form GSTR-1 and GSTR-3B will end in October and December respectively, replacing GST ANX-1 and GST RET-1.
During the trial, taxpayer's previous tax liability and input tax credit will not be affected. But during the three months of the trial, taxpayers will continue to file existing GSTR-1 and GSTR-3B files as before.
10/06/2019
More items likely to go off highest GST slab
India could review the goods and services tax (GST) structure to further prune the number of items in the highest slab of 28% as it attempts to stave off a slump in demand Some states have favoured a reduction in tax rates, worried that the slowdown may get entrenched, and have communicated their concern to the Centre.
The GST Council may meet on June 20, ahead of the budget presentation on July 5, and these issues could figure in the discussions. This will be the first meeting of the council to be chaired by Nirmala Sitharaman after she took over as union finance minister in the new government.
Restaurants" body writes to government for dual GST structure
The main restaurant industry body has written to the government, demanding that restaurants be given the option to choose a higher GST rate than now levied, but with the right to claim refund of the tax paid on inputs.
Restaurants are now levied a 5% GST, but they can"t claim the input tax credit against the tax they paid on raw materials and other expenses like rent. In a letter to the finance ministry, the National Restaurant Association of India, which represents more than 5 lakh restaurants including McDonald"s and Domino"s, said denial of the input tax credit had caused a “severe impact†on the sector and led to the closure of 20,000 outlets last fiscal year.
The association has suggested a dual GST structure for the industry " 12% for the restaurants that are ready to pay the higher rate but can claim the refund under the GST rule, and 5% for others.
09/06/2019
The finance ministry is likely to propose ?50 crore as the turnover threshold for entities to generate e-invoice on a centralised government portal for business-to-business (B2B) sales as it looks to curb GST evasion, an official said.
The GST Council, which will meet on 20 June, will take a final decision on the turnover threshold for issuance of e-invoice for B2B sales after consultation with states.
Analysis of gst return filing shows that as many as 68,041 businesses have reported a turnover of over ?50 crore and accounted for 66.6% of total GST paid in 2017-18.
Further, while these businesses account for just 1.02% of GST payers, they make up almost 30% of the B2B invoices generated in the system.
The official further said that data analysis shows that as many as 3.9 crore B2B invoices worth above ?50,000 are generated every month, which works out to be 12 lakh per day.
The number increases to about 1 crore per day if all B2B invoices generated irrespective of amount are taken into account.
08/06/2019
Income Tax Advance Tax Last date is 15.06.2019 for paying first installment of Advance Tax for FY 2019-20. Non/short payment is liable to penal interest.
CBIC has issued a Clarifications on filing of Annual Return (FORM GSTR-9) based on the queries with respect to filing of this Annual return. It is clarified that the last date for filing of Annual return in FORM GSTR-9 will remain 30th June 2019.
GST: Many Indian exporters approached the Delhi High Court last week against the government for not extending the benefits of EPCG (Export Promotion Capital Goods) scheme to goods and services tax (GST) regime.
07/06/2019
MCA: last date for filing e-Form INC-22A (ACTIVE) is expiring on 15th June, 2019, MCA has advised that no further extension for the same would be provided.
Further, in case Form INC-22A (ACTIVE) is not filed on or before the said date, the compliance status for such companies shall be marked as "ACTIVE Non-compliant" and Directors of such "ACTIVE non-compliant" companies shall be marked as "Director of ACTIVE non-compliant company".
RBI Lowers repo rate by 25 bps & hints at further cuts, but investors disappointed by lack of liquidity window. The headline inflation trajectory remains below the target even after taking into account expected transmission of past two policy rate cuts,- said RBI governor Shaktikanta Das.
06/06/2019
RBI will constitute an internal working group to review its liquidity management framework to simplify the current framework and bring more clarity in the objectives and quantitative measures on banking liquidity.
Exporters want benefits of Capital Goods Scheme under GST regime
Many Indian exporters approached the Delhi High Court last week against the government for not extending the benefits of EPCG (Export Promotion Capital Goods) scheme to goods and services tax (GST) regime.
The exporters claimed that some of the services that were earlier allowed under the EPCG scheme were discontinued under the GST regime. According the exporters, the government has set some conditions if exporters were to claim benefits of the scheme.
Rs3K penalty on retail store for charging GST on discounted Price
Holding that the practice of charging extra GST on discounted price was an unfair trade practice, which has already been depreciated by the National Consumer Disputes Redressal Forum has imposed a penalty of Rs3,000 on a retail store for overcharging Rs7.20 from a customer.
Tax officials are likely to ask for a reduction up to 6 per cent in their collection target in the full Union Budget for 2019-20, compared to what was given in the interim Budget. That 6 per cent would translate into a reduction of Rs 1.5 trillion.
05/06/2019
RBI Monetary Policy Committee (MPC) cut interest rates by 25 basis points, as was widely expected. At the end of a three-day MPC meeting, RBI Governor Shaktikanta Das announced its second bi-monthly monetary policy statement for 2019-20.
RBI has removed charges for payments via NEFT and RTGS and asked banks to pass on the benefits to customers. This means that payments via NEFT and RTGS would become either free or charges would be drastically reduced.
Securities and Exchange Board of India has sent two more show-cause notices to HDFC Mutual Fund and Kotak Mutual Fund for investments in debt instruments of Essel Group.
SFIO has named audit firms Deloitte, KPMG, and AP Shah & Associates in the chargesheet filed in the case involving IL&FS Financial Services (IFIN), the controversial subsidiary of the scam-hit IL&FS. In all, 30 individuals and entities have been named in the chargesheet filed by the probe arm of the MCA
04/06/2019
CBDT notified that Senior citizens with a taxable income of up to ?5 lakh can now submit in banks and post offices Form 15H to claim exemption from TDS on interest income on deposits.
Income Tax Return filing time has started and 31.7.2019 is the due date u/s 139(1) for non corporate and non tax audit assessee, and 30.9.2019 is the due date u/s 139(1) for corporate and tax audit assessees.
Supreme Court clarified that No anticipatory bail to GST. violators can be arrested without FIR.
Companies across sectors such as durables, automobiles and real estate have been lobbying hard for a GST cut. As Modi Ji Rashtrapati Bhawan said the issue of rationalising the tax rate of products such as air conditioners and larger television sets, which sit in the 28 per cent tax bracket, has been on the government"s table for long.
03/06/2019
MCA clarifies that last date for filing ACTIVE (INC-22A) expires on 15th June 2019 and no further extension would be provided. In case ACTIVE is not filed on or before the said date, the compliance status for such companies shall be marked as "ACTIVE Non-compliant" and Directors of such "ACTIVE non-compliant" companies shall be marked as "Director of ACTIVE non-compliant company".
Supreme Court agreed to clarify on various procedural uncertainties regarding GST including the power of the revenue authorities to arrest anyone for GST evasion under the Central Goods and Services Tax Act without registration of an FIR.The clarification has become necessary as different high courts in the country have held contrary to each other on the issue.
Securities and Appellate Tribunal (SAT) Said on SEBI for branding companies as "shell" without any investigation and putting trading curbs. Latest it set aside SEBI and BSE"s directions against SVC Industries, which was branded as "shell" merely based on the fact that the company had not done any production since 2000.
RBI formed a committee to review the existing state of mortgage securitisation and suggest ways to develop the market. The committee has been mandated to examine the existing structure for mortgage-backed securitisation transactions in India, including legal, tax, valuation and accounting-related issues.
Serious Fraud Investigation Office (SFIO) May be given more powers with increasing instances of corporate frauds. In the past it has investigated several high-profile cases, including Bhushan Steel, Nirav Modi and IL&FS, and may soon start probing potential financial wrongdoings at grounded Jet Airways.
Govt is examining India"s foreign direct investment (FDI) policy to look for new areas that can be opened to overseas investors and sectors that face hurdles despite being on the automatic route.
02/06/2019
Telangana firms caught evading GST in major tax scam worth crores
The nine firms would buy goods from unregistered suppliers, raise fake invoices and claim input tax credit to evade paying GST.Four persons were arrested in a span of two weeks by officials with the Central Goods and Service Tax (GST) Commissionerate for raising fake GST invoices and claiming Input Tax Credit (ITC) from the Central government. In the past year, over 150 cases have been booked by Telangana State Commercial Tax Department over fake GST invoices in Hyderabad.
No arrest on theft of GST under 2 crore rupees; Know what is the rule of being arrested in the scandal
The Supreme Court (GST after the due arrest in a case of theft) and the decision of the High Court it is creating anxiety. But GST provisions of arrest does not apply to small dealers, because the law can arrest more than 2 crore tax on theft. There can be no arrest warrants in cases of less than 5 million.
01/06/2019
FM Nirmala Sitharaman to present her first Union Budget on 5 July
The new Finance Minister Nirmala Sitharaman will present her first Union Budget (for FY20) on 5 July, the government decided on Friday
Banks can use Aadhaar for KYC with customer's consent - RBI specifies Know Your Customer (KYC) norms to be followed by banks and other entities regulated by it for various customer services, including opening of bank accounts
31/05/2019
Income Tax Department continues to focus and enhance the skills of Assessing Officers to detect black money laundered through shell companies. At the Direct Taxes Regional Training Institutes, AOs have been asked to look closely at books of accounts and income tax returns for current liabilities, loans and advances, which could be used for tax evasion.
GST Council has set up two sub-groups to look into the policy and technical aspects, such as turnover threshold and mode of generation, for e-invoice generation by businesses. While one sub-group will examine the business process, policy and legal aspects for generation of e-invoice, the other will recommend technical aspects for its roll-out.
GST Network said it has started offering free accounting and billing software to MSMEs with an annual turnover of up to Rs 1.5 crore, which would benefit about 80 lakh small businesses. This software would help businesses create invoices and account statements, manage inventory and prepare GST returns.
30/05/2019
Sebi proposed a regulatory sandbox for financial institutions wherein exemptions could be provided from various regulations for developing new products and services. By participating in the sandbox regime, the companies will get an opportunity to test their solutions on real customers/investors.
RBI has increased the Real Time Gross Settlement (RTGS) time window for customer transactions (initial cut-off) from 4.30 pm to 6 pm. This follows a robust year-on-year increase in the number of transactions by 8 per cent to 1,335 crore in March 2019
29/05/2019
The Reserve Bank of India has increased the Real Time Gross Settlement (RTGS) time window for customer transactions (initial cut-off) from 4.30 pm to 6 pm.
CBDT set a fresh income-tax revenue collection target for the current fiscal year, aiming to garner 20 per cent more than in the previous year. The target for the current fiscal has been set at Rs.13.80 lakh crore. For 2018-19, the target was Rs.11.50 lakh crore.
Modi Govt may re-introducing the much-flayed instrument of the banking cash transaction tax (BCTT) to discourage cash transactions.Further, the tax authorities are considering levying the estate tax on inherited property in line with global practices.
28/05/2019
Finance Ministry is planning a single authority for sanctioning and processing GST refunds to speed up and simplify the process for exporters. The current mechanism entails a twin refund sanctioning authority of the central and state tax officers but that could well change by August.
GST Council May meet next week. The focus will be on tackling the unfinished agenda requiring immediate attention like tax structure for solar projects, uniform tax rate on state-organised and state-authorised lotteries, taxing non-potable alcohol besides certain changes in the law, extension for the National Anti-profiteering Authority (NAA) and rate rationalisation.
MCA has notified the Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2019 which shall come into force from 30-09-2019.
MCA has notified the Companies National Financial Reporting Authority (Meeting for Transaction of Business) Rules, 2019 which shall come into force on the date of its publication in the Official Gazette i.e 22-01-2019.
RBI said all non-deposit-taking NBFCs with an asset size of Rs 5,000 crore and above, and all deposit-taking NBFCs irrespective of their asset size, have to maintain a liquidity buffer in terms of a Liquidity Coverage Ratio (LCR).
SEBI May approve A new investment route for foreigners that is akin to participatory notes (P-Notes) could soon emerge if the recommendations of the HR Khan-led committee on easing of foreign portfolio investor(FPI) norms are accepted.
27/05/2019
CBIC has notified June 21, 2019, as the day from which any "consignor, consignee, transporter, e-commerce operator or courier agency" would be barred from generating electronic way or e-way bill for failure to file tax returns for the stipulated time period as mentioned in the GST rules.
As per rules, a composition scheme taxpayer who has not furnished the returns for two consecutive tax periods and a regular taxpayer who has not filed returns for a consecutive period of two months would be restricted from generating e-way bill
Do not Mention Any Incorrect Information GST Annual return. Though the deadline of filing the GST Annual returns has been extended to June 30, 2019 but it is pertinent to note that GST Annual Returns in GSTR 9 cannot be edited once filed. Moreover, any incorrect information will attract penalties and will leave a room for long term litigation. Hence, it is the duty of every tax payer to make an accurate and precise declaration of the transactions.The assessee needs to ensure that the consolidated turnover for the mentioned period should match with GSTR 3B and GSTR 1. In case of any difference or instance where turnover was not disclosed, the same should be mentioned. Further, the GST liability mentioned in the books should match with the GST liability to be paid or paid. The liability of IGST, CGST, SGST should be reconciled individually and any breakup should be mentioned separately in financial books.
25/05/2019
CBDT wants religious and charitable trusts that enjoy tax exemption on their income to be more open about their affairs. The apex direct tax policy making body has sought public comments on a set of draft rules that modifies an over four decade old audit report format for these entities.
24/05/2019
GST Authority has come out with a draft of a new and simplified return form. The new form is expected to be formally rolled out in July. Through this exercise, made public on Wednesday, the authority aims to obtain feedback on the user interface and its functionalities.
Sebi came out with framework for accreditation of investors seeking to invest in startups that would be listed on Innovators Growth Platform (IGP). The IGP, earlier known as Institutional Trading Platform, has been created to facilitate listing of startups or new-age ventures in sectors such as ecommerce, biotechnology.
23/05/2019
RBI is not in favour of providing special credit window to the NBFC sector to tide over the liquidity crunch as the cash crunch phenomenon is not systemic. Industry players and government think-tank NITI Aayog made a case for giving special credit window for NBFCs facing liquidity crunch following default by group of companies of IL&FS.
DGFT has issued an instruction for discontinuation of submission of a physical copy of RCMCs with effect from 1.7.2019 while filing an application for incentives/entitlements under FTP
22/05/2019
Income Tax Form 15H amended as per the budget announcement for financial year 2019-20. Senior citizens with income up to Rs.5 lacs can submit the form to avoid tax deduction on interest income.
CBDT releases draft New FORM No. 10B and rule 17B: Amendment of Form No 10B of the Income-tax Rules, 1962- Draft notification for inputs from stakeholders and the general public.
21/05/2019
The Reserve Bank of India told non-banking finance companies with assets size of over Rs. 5,000 crores to appoint a Chief Risk Officer (CRO) to improve the standards of their risk management.
Sebi has issued norms for participation of mutual fund in commodity derivatives like gold, silver, crude, copper, guar, mentha etc. However, MFs won"t be allowed to take positions in sensitive commodities like agri products subject to frequent government intervention and the Essential Commodities Act. Effective May 21.
19/05/2019
The GST Council is likely to consider next month a proposal for setting up a national bench of the Appellate Authority for Advance Ruling (AAAR) to reconcile the contradictory orders on similar issues passed by AARs in different states, a move aimed at providing certainty to taxpayers.
Sources said the revenue department is mulling on the idea of a national bench of AAAR since it feels that the Authority for Advance Ruling (AAR) mechanism in its current form is not serving its objective of providing certainty to taxpayers under the Goods and Services Tax (GST) regime.
"There has been a view that a second Appellate Authority for Advance Ruling needs to be set up. It would be a national bench only to reconcile divergent verdicts passed by state AARs. We will present the proposal before the GST Council, which is expected to meet in June," an official told PTI.
18/05/2019
CBDT do not want to let go the Revenue Dues owed by Shell Companies that have been deregistered by the MCA. But the task is easier said than done, as it would mean the restoration of over 4,000 companies identified by the CBDT. The CBDT has been holding talks with the MCA over this.
RBI wants NBFCs with assets of more than ?5,000 Crore must appoint a Chief Risk Officer (CRO). It said that with the increasing role of NBFCs in direct credit intermediation, there is a need for NBFCs to Augment Risk Management Practices.
17/05/2019
RBI Appointed Committee headed by Aadhaar architect Nandan Nilekani submits its suggestions on Promoting Digital Payments to RBI Governor Shaktikanta Das. The 5-member team was formed in January this year to consult with various stakeholders of the payments ecosystem and deliberate on solutions to further strengthen the industry.
SEBI and RBI to tighten Credit Rating Agencies" Biz Models, to avoid another IL&FS. They are looking into how rating agencies conduct Due Diligence, to stall the practice of "Ratings Shopping" where companies pay agencies to provide them with high rating.
16/05/2019
ITAT Delhi in the matter of Vinod Soni vs. ITO: TDS- Four individuals having jointly purchased undivided equal shares in an immovable property vide single sale deed for Rs. 1,50,00,000/-, the consideration referable to each transferee is only 37,50,000/- i.e. less than Rs.50,00,000/- and therefore, section 194-1A is not applicable to the facts of the case.
CBIC has come out with another set of frequently asked questions (FAQs) to clear the air on GST on real estate If you"ve got an occupancy certificate (OC) for your house before April 1 this year, the payment of pending dues would draw 12% GST rate and the builder will be able to avail of input tax credit.
Most real estate developers have opted for 12% GST rate for housing units in ongoing projects as it allows them to retain their profit margin due to availability of input tax credit (ITC), analysts said. Selling houses at 5% GST without any ITC would force builders to hike prices as blocked ITC becomes part of cost which could turn away buyers in the already-subdued market.
15/05/2019
GST anti-profiteering framework may remain in place for another two years as the country eyes more changes to GST structure. Aimed at protecting consumer interest under GST, it was initially meant to be in place for two years.
Financial Intelligence Unit (FIU) has issued a list of 2,337 non-compliant NBFCs for the cut-off period of March 31, 2019, these 2,337 companies have not fulfilled their obligations under the Prevention of Money Laundering Act (PMLA) and PML Rules related to registration of principal officer (PO) with the portal of FIU.
RBI: Payments Systems Vision 2022 document published by the central bank has laid out a comprehensive roadmap of initiatives to be undertaken by all stakeholders and governing bodies to ensure the successful completion of these objectives in this time.
14/05/2019
Home Buyers to Pay 12% GST on Balance Due if Completion Certificate Issued by March 31
Home buyers will have to pay 12 per cent GST on balance amount due to the builder if the housing project has been granted completion certificate by March 31, 2019, the CBIC has said.
Builders who have received completion certificate for an ongoing project before April 1, 2019, will have to charge 12 per cent GST from buyers on the balance amount due towards purchase of the flat.
GST anti-profiteering body may get fresh lease of life
India"s anti-profiteering framework may remain in place for another two years as the country eyes more changes to the goods and services tax (GST) structure. Aimed at protecting consumer interest under GST, it was initially meant to be in place for two years.
Quicker one-form GST filing process ready for roll-out
This form would be beneficial for businesses with consumer sales.
The Union finance ministry is finally ready to move ahead with the single monthly return system for the Goods and Services Tax (GST), a move that will simplify the process of filing returns and also getting input tax credit.
That move was delayed while the back-end, the GST network (GSTN), was being made ready for this. Now, government officials directly familiar with the matter say the simplified form is ready, and could be launched by July, soon after the new government takes over.
13/05/2019
The meeting of GST Council in December saw in principle agreement for amending the said provision. However, the amendment has to pass in Parliament. With elections going on, it could not be before the Monsoon session of Parliament that it could be passed. All the state legislative assemblies need to pass an amendment. Only then it can come into force.
The Ministry of Corporate Affairs (MCA) vide notification number S.O. 5622(E), dated the 2nd Nov, 2018 has directed that all companies, who get supplies of goods or services from micro and small enterprises and whose payments to micro and small enterprise suppliers exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services, shall submit a half yearly return to the Ministry of Corporate Affairs in form
MSME Form 1. Vide General Circular no. 1 /2019 dated 21st Feb, 2019, the date of filing of MSME Form 1 got extended to 30 days from the deployment of the form i.e. by 30th May, 2019.
Hindustan Coca-Cola Beverages (HCCB) and distributors of FMCG and consumer durable firms have come under the lens of the goods and services tax (GST) authorities over so-called post-sale discounts offered by manufacturers.
11/05/2019
GST payable on freight charges recovered from customers without issuance of consignment note. Case Name: In re Siemens Limited (GST AAR Maharashtra)
Delhi High Court Reversing Advance Authority Ruling (AAR) , says Hindi vocabulary practice books are GST-exempt.
10/05/2019
Finance ministry said there was growth of 19 per cent in income-tax returns electronically filed for the A.Y. 2018-19 compared to those in 2017-18.The ministry said a total of 66.8 million returns were e-filed in FY19, which included 64.9 million for AY19. On the other hand, a total 67.4 million returns were e-filed in 2017-18 (FY18), which included 54.7 million for AY18.
CBDT said that every CIT has to file 10 prosecution cases for default in the filing of return of income. Considering the Rs 60,000 crore shortfall in direct tax collection in the last fiscal. CBDT wants all IT commissioners to ensure that each AO disposes off at least 25 domestic cases or 20 international cases during the three-month period.
09/05/2019
MCA update:
Salient features of Amendment to STK Rules
effective 10/05/2019
1. Filing fee increased to 10,000/- from 5,000/-
2. Annual filing to be completed only till the FY in which Company did business
3. In case STK-2 being filed after initiation of striking off procedure by ROC u/s 248(1), then all Annual Filing to be completed.
4. Statement of Assets and Liabilities to be in the form STK-8.
08/05/2019
Buyers would now face situations where buildings under construction in the same complex could be subjected to differing rates of GST as builders could exercise the option of availing input tax credits on some buildings and foregoing the credits on others.
If flats are booked before April 1 but cancelled, the tax paid can be adjusted against any other GST liability, including the 1% or 5% rates outgo.
However, if the cancelled flats are resold after April 1, the credit availed earlier on procurements will be reversed.
The taxman has asked builders to choose before May 10 the new goods & services tax (GST) rate for ongoing realty projects.
The concessional rate, which came into effect April 1, was set at 1% for affordable houses and 5% for others, from the earlier 8% and 12%, respectively. Developers of under-construction projects could opt for the new or previous rate, but now they have been asked to exercise this option before Friday in the prescribed format.
This means, two people buying identical flats in the same apartment complex but in different buildings or towers, could technically end up paying different GST rates.
The government has decided to crack down on companies delaying payments to small businesses by insisting that all defaulting entities mandatory provide it details of outstanding money with reasons by filing form MSME 1 by 30th May or face action
The deadline for filing income tax returns (ITR) is July 31 for every assessment year. If you miss the deadline, you can always file a belated return by up to March 31 with penalty of the following year. If you have also missed the deadline for filing a belated return, you can"t file it after March 31.
MCA: e-form MSME (Form for furnishing half yearly return for outstanding payments) and DPT-3 (Return of Deposit) are available on MCA Portal w.e.f 01.05.2019.
CBIC has informed that the IEC holders can register with the Goods and Services Tax Identification Number (GSTIN). It was said that no Digital Signature is required for the same.
06/05/2019
GST; Building of facilities such as car parking, swimming pool, club and gym with residential apartments will be treated as composite construction service and attract a lower rate of the goods and services tax (GST), according to an AAR ruling.
MCA has given Corporate India time until end-June to furnish a one-time return, spelling out the details of all money receipts or loans taken by them from April 1, 2014, which are otherwise not considered deposits. A few weeks ago, the government specified March 31, 2019 as the cut-off date, providing 90 more days from this date for furnishing the one-time return.
MCA has notified the Companies (Registration Offices and Fees) Third Amendment Rules, 2019 which shall come into force on the date of their publication in the Official Gazette i.e 30-04-2019.
05/05/2019
All invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised government portal by September, a move aimed at curbing the menace of fake invoices and evasion of GST, officials said.
The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers' committee has already been set up, they added.
The proposed 'e-invoice' is part of the exercise to check GST evasion. With almost two years into GST implementation, the government is now focussing on anti-evasion measures to shore up revenue and increase compliance.
There are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.
CBDT released data that after clocking steep growth of 25% in the three years to FY18), the number of taxpayers filing income-tax e-returns saw a marginal contraction in FY19. In FY19, only 6.68 crore returns were filed online, 1% lower than 6.74 crore filed in FY18.
Income tax department has released the software utility in excel format for filing ITR2 for FY2018-19. It is to be used by individuals having capital gains or more than one house property but not by those individuals having income from business and profession.
04/05/2019
Bombay High Court in the matter of Pr. CIT Vs State Bank of India Stated that Interest on Income Tax Refund cannot be denied for Mistake committed by assessee during ITR filings.
GSTR-9 is merely a compilation of data filed in GSTR-3B and GSTR-1. As per the instructions of the form GSTR-9, it is stated that information of outward supplies "may" be derived from Form GSTR 1. Hence, so far as Outward supplies and tax payable in the annual return is concerned, the same are to be extracted from Form GSTR 1 only.
MCA has given the clarification on format of audit report for reconciliation of share capital and filing of the same with the Registrar of Companies.
Income Tax Return for FY 17-18 cannot be revised now as the deadline for it was March 31, 2019. You can consider payment of tax and informing the tax department so that in the event of any enquiry by the tax department, you will be able to prove that you have fulfilled your onus of reporting the income and payment of consequent tax.
Mca Updates :
Form MSME -1 (One-time Return as at 22.01.2019)- Due date is 30.05.2019;
LLP Form - 11 (Annual Return) Due date is 30.05.2019;
Form INC-22A (Active) due date is 15.06.2019;
Form DPT -3 (One-time Return as at 31.03.2019) due date is " 29.06.2019;
Form DIR-3 KYC (For DINs allotted till 31.03.2019) due date is " 30.06.2019
03/05/2019
The Bar Council of Delhi has directed the Big Four Accounting Firms " KPMG, Price Water House Coopers, Ernst & Young and Deloitte India to refrain from indulging in any practice which would amount to practising law until further orders.
The Bar Council has also directed them to give a list of all the advocates, who have been engaged by them, in any capacity, in any of their offices at any place.
CBDT & GSTN signed an agreement to facilitate exchange of data between the two. The I-T department will share key financial information, including status of I-T return filings, turnover of business, gross total income, and turnover ratio among others with GSTN, the information technology backbone of the two-year-old indirect tax regime.
GST Revenue collection for April, 2019 recorded highest ever collection since GST implementation in July 2017*. Total gross GST revenue collected in the month of April, 2019 is ? 1,13,865 crore of which CGST is ? 21,163 crore, SGST is ? 28,801 crore, IGST is ? 54,733 crore.
MCA: Companies (Appointment and Qualification of Director) Rules to provide for Annual DIR 3KYC due date to be 30th June of immediate next financial year. Hence for March 2019 due date DIR 3KYC would be 30th June 2019.
MCA- Companies (Acceptance of Deposits) Rules - Rule 16A to extend due date of filing one time DPT-3 to 90 days from 31st March 2019. One time return of DPT 3 due date now is 29th June 2019.
02/05/2019
MCA amends various important Rules regarding filing of mca forms
Companies (Appointment and Qualification of Director) Rules to provide for Annual DIR 3KYC due date to be 30th June of immediate next financial year. Hence for March 2019 due date DIR 3KYC would be 30th June 2019
Companies (Acceptance of Deposits) Rules - Rule 16A to extend due date of filing one time DPT-3 to 90 days from 31st March 2019. One time return of DPT 3 due date now is 29th June 2019
Companies (Registration of Charges) Rules to provide for recovery of fees where charge holders create the charge, etc. Also amends Forms CHG-1, 8 & 9 w.e.f. 1st August 2019
Companies (Registration Offices and Fees) Rules to amend additional fee for Charges Forms
01/05/2019
GST exemption on the upfront amount payable in installments for long term lease of industrial plots of 30 years or more under Notification No. 12/2017, Central Tax (Rate), S.No. 41, dated 28.06.2017.
Even if it is paid one time or in instalments, the exemption would apply vide Circular 101 dated 30-04-2019
GST Applicability on Seed Certification Tags.
Seed testing and certification of the procedure followed in the states of Tamil Nadu and Uttarakhand shall extend to other states also provided that procedure of seed testing and tag certification is being followed. Vide Cgst circular 100 dated 30-04-2019
Soon, the tax department will be sharing the income tax return (ITR) data of business persons with the Goods and Services Tax Network (GSTN) officer. The move is aimed at spotting income anomalies or mismatches between their GST returns and ITR.
To facilitate it, the principal director general of income tax systems shall enter into MOU with Gst nodal officer and chalk out the modalities, maintenance of confidentiality, preservation of data. Vide CBDT order dated 30-04-2019
30/04/2019
Authorities plan to crack down on small restaurants and B2C companies after customers using a phone app complained that the businesses were charging GST but not depositing the tax with the government.
The app called Iris Peridot allows people to scan unique GST Identification Number (GSTIN) of a business and find out if it had filed returns.
Businesses with an annual turnover of up to Rs 1.50 crore can opt for the GST composition scheme and file returns quarterly. Under the composition scheme, traders and manufacturers pay 1 per cent GST on their turnover, while restaurants and service providers pay 5 per cent and 6 per cent taxes respectively.
However, businesses using the scheme cannot to charge GST from consumers.
CBDT notified agreement between the government of the republic of india and the government of the united states of america on the exchange of country-by-country reports.
India is likely to extend the deadline for imposing retaliatory customs duties on 29 US products, including almond, walnut and pulses, by another 14 days.
GST department has allowed businesses whose GST registration has been cancelled due to non-filing of tax returns to apply for its revocation by July 22, provided they file their pending returns and pay due taxes for those entities for whom cancellation order has been passed up to March 31, 2019.
GST: Businesses that have accumulated Integrated GST (IGST) credit in their books can settle it against central and state tax dues in any proportion, the revenue department has said.
29/04/2019
MCA: from FY 2018-19 new clause has been inserted for disclosure in Directors responsibility statement on "applicability and maintenance of COST RECORDS" via "ASSURANCE CERTIFICATE".
RBI is working on revising the framework for resolution of stressed assets, including providing additional 60 days to borrowers to repay dues, as part of efforts to mitigate hardships faced by genuine businesses.
SEBI reduces minimum net worth requirements for clearing corp in IFSC should have at least Rs 100 crore net worth from three years of commencing operations, It has been brought down from the earlier Rs 300 crore.
Interest is applicable on Gross Liability (including ITC portion), if GSTR-3B is filed late
It is pertinent to note here that the recommendation given by the GST Council in its 31st Meeting that the interest should be charged only on the net tax liability i.e. only on the amount payable through the electronic cash ledger was not taken into consideration by the learned Counsel as no notification/amendment was issued in this respect.
As per the decision of Hon'ble HC Of Telangana , Hyderabad- Until a return is filed, no entitlement of credit in the electronic credit ledger takes place. It is only after a claim is made in the return; the credit entered in the electronic credit ledger can be used for making the payment.
28/04/2019
The interest rates on deposits above one lakh rupees will stand at 3.25 per cent, with effect from May 1, said SBI.
For balances up to Rs 1 lakh, SBI will offer an interest rate of 3.50 per cent per annum.
In what could radically transform the indirect tax administration system and the way business is conducted, India is looking at the possibility of introducing electronic invoicing under goods and services tax.
If the country adopts the system, businesses will likely have to issue invoices, or bills, directly via the GST Network, and the data will be available to the authorities right away.
The GST Council has set up a committee to look into the feasibility of e-invoicing. It will also study the systems in place in other countries, such as South Korea and some from Latin America.
The Reserve Bank of India (RBI) will shortly issue new "greenish yellow" Rs 20 currency notes in the Mahatma Gandhi (New) series, the central bank said in a notification dated April 26. The new Rs 20 notes will bear signature of the Reserve Bank's governor Shaktikanta Das.
"The base colour of the note is Greenish Yellow. The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse," the RBI said.
27/04/2019
GST department has allowed businesses whose GST registration has been cancelled due to non-filing of tax returns to apply for its revocation by July 22, provided they file their pending returns and pay due taxes for those entities for whom cancellation order has been passed up to March 31, 2019.
CBIC has now clarified that the IGST credit can be used in payment of CGST or SGST in any order or proportion. Businesses that have accumulated Integrated GST (IGST) credit in their books can settle it against central and state tax dues in any proportion, the revenue department has said.
RBI is working on revising the framework for resolution of stressed assets, including providing additional 60 days to borrowers to repay dues, as part of efforts to mitigate hardships faced by genuine businesses. Against the backdrop of the Supreme Court quashing an RBI circular, issued on February 12, 2018, a revised set of rules is under works and would be released soon.
26/04/2019
RBI committee may recommend that all government payments to citizens should be made digitally, one person aware of the matter said, requesting anonymity. The move seeks to ensure higher adoption of digital payments among the masses.
MCA has issued Advisory on the MCA portal w.r.t various Charge related e-Forms, RD " 1, GNL " 5 and the change which have been made and which are under progress after the notification of the Companies (Amendment) Ordinance 2019.
MCA ACTIVE-22A :About 4 lakh out of a total of the country's over 11 lakh 'active' companies have so far complied with the new KYC norms mandated by the MCA. Meanwhile, the deadline for complying the new disclosure norms has been extended till June 15 from April 25 earlier.
25/04/2019
The government has extended the deadline for uploading photos of business premises to June 15, giving corporates more time to comply with a provision aimed at spotting shell companies.
It has been decided to extend the date to June 15, confirmed a ministry official.
The disclosure norms, which came into effect from February, make it mandatory for registered companies to upload pictures of their business premises and at least one director
24/04/2019
Non-filers of GST returns for two straight months will be barred from generating e-way bills for transporting goods effective June 21, the finance ministry said.
Businesses under GST composition scheme, however, will be barred from generating e-way bill if they fail to file tax returns for two consecutive filing periods, which is six months.
The Central Board of Indirect Taxes and Customs (CBIC) has notified June 21, 2019, as the day from which any "consignor, consignee, transporter, e-commerce operator or courier agency" would be barred from generating electronic way or e-way bill for failure to file tax returns for the stipulated time period as mentioned in the GST rules.
Now the suppliers, transporters and e-commerce operators would be forced not to sell or transport goods to non-filers
The Ministry of Corporate Affairs plans to start gathering "primary data" from persons who have put in their money in chit funds and deposit-taking schemes, an official said April 23, amid continuing efforts to clamp down on illicit fundraising activities.
The Investor Education and Protection Fund (IEPF) Authority, under the ministry, would seek information from investors, including proof of investment and identity details.
A mobile application, as well as an online platform for investors who have put in their money in deposit-taking schemes and chit funds would be introduced early next month. This is aimed at collecting "primary data" from the investors, the official said.
23/04/2019
GST Council in its 28th GST Council meeting held at New Delhi on 21.07.2018 has decided to Extend the exemption granted on outward transportation of all goods by air and sea by another one year i.e. upto 30th September, 2019 as relief to the exporter of goods.
RBI Bimal Jalan committee on the appropriate capital reserves for the Reserve Bank is likely to identify an excess buffer of up to Rs 3 lakh crore. This includes the excess capital in contingency reserves and also revaluation reserves.
22/04/2019
Forensic audit of over 200 companies facing corporate insolvency resolution action under IBC has revealed irregularities of more than Rs 1 lakh crore, including possible diversion of funds. MCA is expected to initiate action against the promoters, directors and even auditors in some cases.
Bombay High Court has held that when a cheque issued towards payment of insurance premium bounces, an insurance company is not bound to indemnify the owner of the insured vehicle (in this case the offending vehicle) and has a right to recover compensation awarded in case of motor accidents from the owner of the offending vehicle.
Startups have welcomed last week"s central bank proposal to start so-called regulatory sandboxes where they can test out new financial products in realtime with limited regulations, but are wary of some of the eligibility criteria.
21/04/2019
Consumer forum said compelling a customer to pay for a paper bag was a clear deficiency in service
Forum said it was the store's duty to provide a free bag to the customer
Bata India has been directed to provide free paper bags to its customers
Bata India Limited has been told to pay Rs 9,000 to a consumer for deficiency in services.
Acting on a complaint filed by the customer, a Chandigarh consumer forum has slammed Bata for asking the customer to pay Rs 3 for a paper bag.
In his complaint, Chandigarh resident Dinesh Prasad Raturi, told the consumer forum that he had purchased a pair of shoes on February 5 from a Bata store located in Sector 22D. The store charged him Rs 402 which also included charges for the paper bag. Raturi told the forum that by charging him for the bag, Bata was also endorsing its brand on the bag which was not justified.
19/04/2019
CBDT has notified amendments in Form 16 which acts as certificate for TDS and Form 24Q quarterly TDS statement for salaries. The new forms require taxpayers to provide more details related to bifurcation of exemptions under Section 10 of the Income Tax Act, various deduction under Chapter VI-A, disclosure of standard deduction amount and other income.
CBDT in its action plan for the current quarter from April- June 2019, has set 30th June 2019 as the deadline to dispose of all the cases related to demonetisation "where assessment is required to be framed,"
18/04/2019
Mauritius has stepped up scrutiny of offshore fund structures as the country tries to shed its image as a quasi-tax haven and showcase its compliance with all major international tax norms. The move has put several global and India-focussed funds wanting to set up structures in Mauritus under the country"s regulatory glare.
Renewable power companies have moved the Delhi High Court, seeking to exempt the renewable energy certificates (RECs) from GST. The case will also have implications on priority sector lending certificates, used widely in the banking sector. These certificates current attract a GST rate 12%.
NCLAT has held that shareholders/ promoters of a company can file application for approval of settlement with creditors, even after official liquidator has been appointed. This ruling was made while allowing an appeal filed against the decision of the NCLT Mumbai bench, which had held that the application filed under Companies Act could not have been moved by the shareholders after the appointment of OL.
17/04/2019
MCA Update:- OM No. CRC/LLP/e-Forms dated 06.03.2019 invoking the restriction regarding manufacturing & allied activities in LLP has been withdrawn with immediate effect
ITax update -,Revised Form 16 (Part B) & Form 24Q (Salary details in Q4) with more details, applicable w.e.f. 12.05.2019. Income Tax (3rd Amendment) Rules, 2019 of 12.04.2019.
16/04/2019
Income Tax authorities have set a deadline of June 30 to clear up all demonetisation-related cases. In its interim action plan for the first quarter of 2019-20, CBDT has instructed its officials to “dispose of all cases related to demonetisation where assessment is required to be framedâ€.
No limitation on amount of premium that can be charged on Share Capital: PCIT Vs Chain House International (P) Ltd (Supreme Court of India)
15/04/2019
Income Tax dept, CBI and ED can attach assets mortgaged to banks and third parties: Delhi High Court.
Non-filing of ACTIVE Form may attract Section 12 (8) penalty of one thousand rupees for every day during which the default continues but not exceeding one lakh rupees. And Section 12 (9) physical verification of the registered office of the company.
MCA has clarified that the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules 2014, w.r.t submission of e-form DIR-3-KYC is an annual compliance and required to be filed by every director, every year.
14/04/2019
Charges Applicable on UPI from 1st May 2019-
Paytm, PhonePE and Google Pay
Every transaction made through UPI, below or equal to the amount of Rs. 1000 will be charged with Rs. 2.50. If the amount of transaction is above Rs. 1000, each transaction will be charged Rs. 5. Additionally, an 18% GST charge will be levied as well.
The above charges will be applicable across all the platforms which offer the option of UPI payment, including Paytm, PhonePe, Google Pay, BHIM and the rest. Paytm, Google Pay and PhonePe have been the platforms which clocked the highest number of UPI transactions, while BHIM has not been able to fight as hard. The number of Paytm"s transactions were as high as 221 million, Google Pay and PhonePe made it to 220 million transactions. BHIM, unfortunately, could clock only 14-18 million transactions only.
Income Tax Department issued clearances to all 277 startups shielding them from the what has been popularly dubbed as the angel tax, as the government gets cracking with the implementation of the new startup framework
Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits.
13/04/2019
MCA extends due date of filing DPT-3 to 30 days from deployment of Form on MCA portal and information to given for details upto 31.3.2019 and not 22.1.2019 - Rule to be amended shortly
MCA has clarified that Business Activities to be carried out by Limited Liability Partnerships (LLP) to exclude manufacturing & Allied activities. As per section 2(1)(e) of the LLP Act, 2008, Business includes trade, profession, services and occupation.
RBI spot dollar purchases hit an 11-month high in February when the central bank purchased $825 million from the market to absorb foreign portfolio inflows amid weak dollar demand. RBI bought $2,086 million and sold $1,261 million from the spot market
12/04/2019
MCA - Registered office of company
(1) A company shall, on and from the fifteenth day of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all
communications and notices as may be addressed to it.
(2) The company shall furnish to the Registrar verification of its registered office within a period of thirty days of its incorporation in such manner as may be prescribed.
(3) Every company shall"
(a) paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is
carried on, in a conspicuous position, in legible letters, and if the characters employed
therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;
(b) have its name engraved in legible characters on its seal;
(c) get its name, address of its registered office and the Corporate Identity
Number along with telephone number, fax number, if any, e-mail and website addresses,
if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications; and
(d) have its name printed on hundies, promissory notes, bills of exchange and such other documents as may be prescribed:
Provided that where a company has changed its name or names during the last two years, it shall paint or affix or print, as the case may be, along with its name, the former name
or names so changed during the last two years as required under clauses (a) and (c):
Provided further that the words ""One Person Company"" shall be mentioned in brackets
below the name of such company, wherever its name is printed, affixed or engraved.
(4) Notice of every change of the situation of the registered office, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar within fifteen days of the change, who shall record the same.
(5) Except on the authority of a special resolution passed by a company, the registered office of the company shall not be changed,"
(a) in the case of an existing company, outside the local limits of any city, town or village where such office is situated at the commencement of this Act or where it may be situated later by virtue of a special resolution passed by the company;
and
(b) in the case of any other company, outside the local limits of any city, town or
village where such office is first situated or where it may be situated later by virtue of a special resolution passed by the company:
Provided that no company shall change the place of its registered office from the jurisdiction of one Registrar to the jurisdiction of another Registrar within the same State unless such change is confirmed by the Regional Director on an application made in this
behalf by the company in the prescribed manner.
(6) The confirmation referred to in sub-section (5) shall be communicated within a period of thirty days from the date of receipt of application by the Regional Director to the
company and the company shall file the confirmation with the Registrar within a period of sixty days of the date of confirmation who shall register the same and certify the registration
within a period of thirty days from the date of filing of such confirmation.
(7) The certificate referred to in sub-section (6) shall be conclusive evidence that all the requirements of this Act with respect to change of registered office in pursuance of subsection
(5) have been complied with and the change shall take effect from the date of the certificate.
(8) If any default is made in complying with the requirements of this section, the company and every officer who is in default shall be liable to a penalty of one thousand
rupees for every day during which the default continues but not exceeding one lakh rupees.
11/04/2019
Income Tax Deptt With increasing computerisation and the collection of data, based on PAN, have been moving to a system of verification of such information, and taking action if such verification shows that the relevant income has not been offered to tax. The verification seems to have been carried out in many cases for financial year (FY) 2011-12.
CBDT extends due date for filing of report in respect of International group of subsidiaries of USA residents to April 30, 2019.
SEBI Revises Charges Related to Basic Services Demat Account from June 1. The move is expected to further boost participation of retail investors in the debt market.
10/04/2019
Composition scheme for supply of services or goods
The Central Board of Indirect Taxes and Customs ("CBIC') vide Circular No. 97/16/2019-GST dated April 05, 2019
clarifies that applicability of Notification No. 02/2019-Central Tax (Rate) dated March 07,2019 which prescribes the rate of central tax of 3% on first supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person whose aggregate annual turnover in the preceding financial year was fifty lakh rupees or below.
The following are the clarification made regarding the applicability of said notification are as here under:-
A registered person who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, may do so by filing intimation in the manner specified in sub-rule 3 of rule 3 of the said rules in FORM GST CMP-02.
Any person who applies for registration and who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, if eligible, may do so by indicating the option at serial no. 5 and 6.1(iii) of FORM GST REG-01 at the time of filing of application for registration.
The option of payment of tax by availing the benefit of the said notification in respect of any place of business in any State or Union territory shall be deemed to be applicable in respect of all other places of business registered on the same Permanent Account Number and it shall be applicable from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year.
09/04/2019
CBIC has given service providers with turnover of up to Rs 50 lakh, time till April 30 to opt for the composition scheme and pay 6% GST. The option to pay GST at reduced rate of 6 per cent would be effective from the beginning of the financial year or from the date of obtaining new registration.
GST officers have started seeking clarification from companies whose tax payments did not match with the e-way bills generated, as revenue authorities start matching supplies data to check tax evasion.
08/04/2019
Supreme Court's judgement on the RBI circular does not disturb the rights of creditors to insolvency proceedings and would bring in behavioural changes, making creditors more responsible for their actions and inactions.
Income Tax department has notified I-T return forms for individuals and companies for the assessment year 2019-20. While there has been no change in ITR-1 or Sahaj, which is to be filled by the salaried class, some sections in ITR 2, 3, 5, 6 and 7 have been rationalised.
07/04/2019
Income Tax Department has barred directors as well as those who have invested in unlisted companies from filing income tax return forms Sahaj and Sugam.
The directors in both listed and unlisted companies will be required to file their returns in ITR-2 to disclose details of DIN, PAN and equity holding with the names of the companies.
GST rule 46 implies that with the start of new financial year 2019-20 a new invoice series, unique for the financial year is to be started by the GST taxpayers. Similar provision is there in Rule 49 of the CGST Rules 2017, in respect of issue of Bill of Supply by registered taxpayers availing Composition Scheme or supplying exempted goods or services or both.
06/04/2019
RBI announced that certain NBFC will be able to get a licence as authorised foreign exchange dealer.“With a view to improve the ease of undertaking forex transactions by increasing the last-mile touch-points of regulated entities to sell foreign exchange for non-trade current account transactions.
CBDT has amended Rule 12 of the Income Tax Rules, 1962 w.e.f 1.4.2019 which provides forms and manner of furnishing of return of income. The amendments have been made for AY 2019-20.
05/04/2019
CBDT with an intent to give effect to the Judgement(s)/order(s) of Hon'ble Supreme Court on Aadhaar-PAN for filing return of income, has mandated to quote Aadhaar while filing the return of income unless specifically exempted as per any notification issued under sub-section (3) of section 139AA of the Act.
CBDT said 6.87 crore Income Tax Returns were filed during FY 2017-18 as compared to 5.48 crore ITRs filed during FY 2016-17, translating into a growth of 25 per cent. Also, during FY 2017-18, the number of new ITR filers increased to 1.07 crore as compared to 86.16 lakh new ITR filers added during FY 2016-17.
03/04/2019
GST: change series of sales invoices w.e.f. 1.4.2019 as required by Rule 46(b) of CGST Rules, 2017. Every invoice need to be unique in every financial year.
MCA has notified the Companies Indian Accounting Standards (Ind AS) First and Second Amendment Rules, 2019, applicable w.e.f. 1 April, 2019, to amend the "Annexure B on Indian Accounting Standards (Ind AS)" to the Companies (Ind AS) Rules, 2015 (the principal rules), by way of inserting/ substituting various paragraphs, annexures, etc. in different Ind AS.
SEBI proposed amendments to norms governing self-Regulatory Organisations, including recognising such entities on a nomination basis. Coming out with a consultation paper, the watchdog said that an SRO would be defined as an organisation of intermediaries or an entity promoted by a stock exchange, recognised by the board.
02/04/2019
SEBI has proposed a self-regulatory body for distributors and advisors of mutual funds products. There are about 1.24 lakh distributors of mutual fund products as on February 28, 2019 and 1,136 investment advisers registered with Sebi as on March 19, 2019.
RBI asked banks to disclose bad loan divergences in their financial statements if the additional provisioning exceeds 10% of profit before provision and contingencies. In a notification, the RBI said it is observed that some banks, on account of low or negative net profit after tax, are required to disclose divergences even where the additional provisioning assessed by RBI is small, which is contrary to the regulatory intent that only material divergences should be disclosed.
01/04/2019
CBDT extends PAN Aadhar number linking deadline to 30th September 2019. It is mandatory to quote Aadhaar in ITR u/s 139AA (1) (ii). CBDT Notification 31/2019.
CBDT has issued directions to Income Tax offices across the country to probe financial transactions of about three lakh firms, de-registered by the government for their dubious financial credentials, for tax evasion and money laundering, especially during demonetisation.
Supreme Court has dismissed the petition filed by the government and the GST Council against the Delhi high court order to allow exporters an exemption from the IGST for imports done under the advance authorisation licenses. This would release working capital for those using these licenses.
Govt on extended the deadline to impose higher customs duties on 29 products, including almond, walnut and pulses, originating in the US. The department of commerce had recommend the finance ministry to extend the deadline for levying higher tariffs worth $235 million.
Ind AS 116, Leases shall be applicable with effect from 01st April, 2019 and necessary notification for the same shall be issued in due course after complying with the necessary procedure.
31/03/2019
CBDT has issued directions to Income Tax offices across the country to probe financial transactions of about three lakh firms, de-registered by the government for their dubious financial credentials, for tax evasion and money laundering, especially during demonetisation.
Govt relaxed the norms for e-way bills. Rules regarding validity have been changed, while a facility has been provided for auto-calculating the route distance. Under the GST regime, an e-way bill has to be generated if goods worth over Rs 50,000 are transported.
Foreign entities doing business in defence or telecom sector in India will henceforth not need to seek separate approval from Reserve Bank of India for opening branch or liaison offices, provided they have clearance from the concerned ministry.
SEBI said transfer of shares of listed companies can be done only in the dematerialised form from April 1 but investors are not barred from holding shares in the physical form.
30/03/2019
Taxation scene could change radically as India enters uncharted territory from April 1.Now taxman will begin looking into comprehensive, 360-degree profiles of Indian taxpayers. Life is now all set to change drastically for taxpayers whose spending patterns don't match their earnings declarations.
CBIC Member (Investigation) had recently said that between April and February 2018-19, GST evasion to the tune of Rs.20,000 crore was detected, of which Rs.10,000 crore was recovered. Officials estimate that evasion through fake and under-invoicing could be pegged at anywhere between one per cent and five per cent of collection.
SEBI asked the Indian stock exchanges to bar foreign portfolio investors who have failed to submit the names of beneficial owners to custodians. FPI assets worth $5 billion have been blocked on account of failure to adhere to the March 20 deadline of providing the aforementioned details.
NSE has issued circular to all Listed Companies to sensitize on the Filing of Information on Electronic Platform of NSE.
EPFO to provide calculation sheet at the time of PF withdrawal to reduce the confusion & grievances of the subscribers, it has been decided that calculation worksheet of provident fund withdrawal of each member is to be provided either on their registered mobile number or the Email ID provided in the claim form.
Things to do before 31st March 2019 in Income Tax for 1. Link Your PAN with Aadhar to file ITR 2. E-verify your Return To completed the filed ITR. 3. Link your Bank A/C with PAN - To Receive Refunds directly to the Bank.
Income Tax Department's newly set-up Centralised Verification Centre (CenVC) is planning to send the first set of e-tax notices to 'non-filers', starting this week. The notices will be issued under section 133C of the Income-Tax Act, which was notified last week. The returns filed during the AY 2017-18 are being dealt with first.
SEBI exempted the central government from making an open offer for the shareholders of Union Bank of India following capital infusion. In February, the government proposed a capital infusion of Rs 4,112 crore in the public sector lender through preferential allotment of shares.
29/03/2019
MCA has exempted incorporation fee for SMEs having share capital up to Rs 15 lakh. Earlier, the limit was Rs 10 lakh. The amendment to the Companies Rules, 2014 to this effect was notified earlier this month. This is part of the government"s efforts to make India a start-up hub.
RBI has postponed roll out of the new Ind AS for the second time. It is awaiting amendments to the banking laws before adopting the norms. The central bank, however, did not specify the new date for its implementation.
CBDT given relief to 90 startups from taxman"s questioning their valuation during fund raising rounds and slapping angel tax, Under the Startup India Action Plan, a DIPP initiative, the startups were asked to submit all details related to capital raising and promoters, and if accepted, they get an immunity from future tax demands under section 56(2)viib of the Income Tax Act.
28/03/2019
SEBI asked the exchanges dealing with agri-commodity derivatives to create a fund for farmers and FPOs in which the regulatory fee forgone by the regulator would be deposited. Besides, it has issued framework including action plan and guiding principles for the utilisation of fund.
RBI is likely to ease disclosure rules on the transfer of various categories of state government bonds held by high-street lenders, a move that could help increase treasury incomes at traditional banks.
NBFCs are beginning to add crucial jobs across various functions, indicating that stability has returned to a key sector that was unsettled last autumn by a liquidity squeeze and subsequent increases in capital costs. NBFCs could hire about 15,000 people in FY20, an estimate by recruitment firm Team Lease showed.
27/03/2019
The financial year 2018 is to end in the next three days the Reserve Bank of India has released a notice stating that all agency bank branches, dealing with government businesses will be open on March 31, Sunday.
Please note the fact that RBI has added a proviso - ''all agency bank branches, dealing with government businesses''.
Moreover, all the Pay and Account offices will also remain open, to facilitate government receipt and payment transactions.
Those who are interested in transacting some bank business on that day should know that the RBI has also mentioned that all bank branches will give a prior public notice regarding the availability of the above mentioned banking services on March 31.
24/03/2019
To encourage startups and improve ease of doing business in India, the Ministry of Corporate Affairs (MCA) has exempted incorporation fee for firms having share capital up to Rs 15 lakh.
Earlier, the companies with initial authorised capital up to Rs 10 lakh were exempted from any MCA fee on Incorporation and only stamp duty was applicable. The notification will be in effect from March 18, 2019.
It also made amendments related to shifting of registered office from one state to another state. Any companies, who want to shift their Registered office from one state to another state can advertise the notice of shifting registered office in a vernacular newspaper in the principal vernacular language in the district and in the English language in an English newspaper with the wide circulation.
Prior to amendment, the startups had to publish notice of shifting in widest circulated newspaper, which in case of failure used to result in the unnecessary delay of 4-5 months in the completion of the procedure.
Now with the amendments, the companies can choose the newspapers with minimum circulation as well. The amendments are made with an aim to enhance the ease of doing business for startups and SMEs.
However, the amendment has not specified a meaning to the term "wide", leaving the same to the judgement of authorities. This might lead to confusion and undue delays in the processing of applications.
Allahabad Prayagraj Income tax deptt issues more than 5000 notices to ascertain source of income to assessees who have deposited more than 10 lacs in savings account or deposited or withdrawn more than 50 lacs in current account.
Sec 133(6) notices sent which need to be replied before 31st march lest Section 147 notice will be issued
23/03/2019
In a notification, the Directorate General of Foreign Trade (DGFT) has said that exemption from integrated GST and compensation cess under advance authorisation scheme, EOU, and EPCG scheme of foreign trade policy 2015-20 "is extended up to March 31, 2020".
Giving relief to exporters, the government has extended IGST (Integrated Goods and Service Tax) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.
These exemptions have been extended for exporters buying inputs domestically or importing for export purposes under export oriented unit (EOU) scheme, Export Promotion Capital Goods (EPCG) scheme and advance authorisation.
EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.
On the other hand, advance authorisation is issued to allow duty free import of inputs, which is physically incorporated in export product.
In the GST regime, they have to pay the indirect tax and then seek refund, which is a cumbersome process.
The move was aimed at giving relief to exporters as they do not have to pay IGST at the initial point itself.
RBI again Defers Implementation of Indian Accounting Standards (Ind AS) by Banks till further notice, as the requisite legislative amendments are still under consideration. Earlier in April 2018, the central bank had postponed the implementation of the Indian Accounting Standards (Ind AS) by the banks by 1 year.
22/03/2019
SEBI tightens norms for mutual funds (MFs) when valuing a debt paper downgraded to below investment grade below BBB-.
RBI forms Panel to make Currency Notes Blind-Friendly
21/03/2019
NCLAT held that The Income Tax Department of the Central Government, the Sales Tax Department of the State Government and other local authorities “who are entitled for dues arising out of the existing law†can now initiate Corporate Insolvency Resolution Process against such companies who owe them the dues. These tax departments will be considered as operational creditors of the debtor companies and all statutory dues including income tax, value added tax and others will come within the meaning of operational debt
20/03/2019
CBDT has signed a Bilateral Agreement for Exchange of CBC reports between India and the USA. The provisions of Section 286(4) of the Income-tax Act, 1961 requires that a constituent entity shall furnish the Country-by-Country (CBC) Report.
Appellate Authority for Advance Rulings for the State of Uttarakhand has set aside the ruling of AAR which allowed a restaurant-cum-sweetshop to levy one rate of 5 per cent on all the goods. Now they have to charge two different rate of GST. One on namkeens, cold drinks etc and another on edible items served in the restaurants.
19/03/2019
Maharashtra Govt has increased GST registration limit from 20 lakhs to 40 lakhs
MCA appointed Ms. Sangeeta Verma as Member of the Competition Commission of India, with effect from the 24th December, 2018 for a period of five years or till 65 years of age.
Deutsche Bank AG is setting up a unit in India to buy and reorganize soured debt as it seeks to profit from an unprecedented bad-loan clean up in the nation with one of the world"s worst non-performing loan ratios.
18/03/2019
Last date to file income tax returns with late fees for assessment year 2018-19 is 31st March 2019
CBDT has stated that a Bilateral Competent Authority Arrangement, along with an underlying Inter-Governmental Agreement, for exchange of CBC Reports between India and the USA has been finalized and will be signed on or before 31st March, 2019.
GST Advance ruling cannot be given on transaction prior to date of Application for Advance Ruling. In re KEI Industries Limited (GST AAAR Rajasthan)
17/03/2019
RBI told the Supreme Court that the inter-creditor agreement (ICA) aimed at helping debt defaulters avoid bankruptcy proceedings requires the approval of 66% of lenders and not all of them, backing the plan that had been drawn up at the behest of the finance ministry.
The Reserve Bank of India (RBI) came out with guidelines to prevent misuse of price-sensitive information by participants in markets for financial instruments.
16/03/2019
The Income Tax Department has sent notices to about 2,000 property sellers who took Rs 5 lakh or above in cash while selling their assets between June 2015 and December 2018, a senior official said on Saturday.
"To start with, we have sent notices to those property buyers and sellers who paid or received Rs 5 lakh and above in cash. Once we settle these cases, we will focus on those violators who had paid or received cash below Rs 5 lakh," the official told news agency ANI.
In 2015, Section 269SS of the Income Tax Act introduced some changes for the realty sector to curb generation of black money
CBDT has asked its officers across India to avoid taking “coercive measures†against companies that have received notices under the so-called angel tax, in what can be seen as softening of its stance on an issue that has roiled the startup ecosystem. In its written communication, the department also asked tax commissioners to resolve disputes with startups on a priority basis.
15/03/2019
UDIN: Since 1st February 2019 all certificates issued by CA had been made mandatory. Now in 2nd phase, w.e.f 1st April, 2019, UDIN is being made mandatory for GST & Tax Audit Reports. Practising CAs have to register at UDIN portal (udin.icai.org) to obtain UDIN.
Central Government has notified the creation of National bench of Goods and Services Tax Appellate Tribunal (GSTAT) at New Delhi. The GSTAT will rule on appeals arising from central and state tax authorities". Its counterpart in the earlier regime, the Customs Excise and Service Tax appellate tribunal (CESTAT) will continue to handle pending disputes of the pre-GST era and customs-related issues.
14/03/2019
Government notifies constitution of GST Tribunal w.e.f March 13, 2019.
SEBI came out with the framework and timeline for the counter offer process. The counter offer is made in case the price discovered through reverse book building (RBB) is not acceptable to the promoter or the acquirer.
MCA has made it obligatory for companies incorporated before December 2017 to file a new form to disclose their particulars, including a fully functional registered office. ACTIVE (Active Company Tagging Identities and Verification) Firms are required to file particulars in e-Form ACTIVE on or before April 25, 2019.
13/03/2019
CBDT: The Government increases Gratuity exemption limit under Section 10(10) (iii) to Rs. 20 Lakhs from existing Rs. 10 Lakhs vide Notification No. 16/2019 dated 8th March, 2019.
GST Council is scheduled to meet on March 19 to finalise guidelines to support the changed tax rate structure for underconstruction houses. This would be the only substantive item that will be taken up. The meeting will happen via a video conference.
Govt has notified phased increase in basic customs duty on parts of electric passenger vehicles to be assembled in India to 15 per cent from April 2020 and 10 per cent on imported lithium-ion cells by April 2021 to promote domestic manufacturing of EVs.
MCA vide notification no. G.S.R 1219(E) dated 18/12/2018 has notified Companies (Incorporation Fourth Amendment) Rules, 2018 and u/s 14 along with e-form RD-1 shall be processed by Regional Directors.
RBI which added 6.5 tonnes of gold to its reserves in January, taking its total holding forming part of its foreign exchange reserves to 607 tonnes, is set to become the tenth largest holder of the metal worldwide, displacing the Nerherlands.
CBIC has clarified that for the purpose of calculation of GST on a particular good, the TCS would not be included in the price of the good as the same is an interim levy. A clarification in this regard was issued by the CBIC after representation from the industry and consultation from the CBDT.
Promotional schemes such as "buy one get one free" (BOGO) and additional quantity for the same price will be eligible for input tax credit, the government has clarified, bringing huge relief to fast moving consumer goods (FMCG), food, retail and pharmaceutical companies.
12/03/2019
SBI linked its interest rate on savings account with balance above Rs.1 lakh and short-term loans to RBI repo rate, effective 1 May 2019. This means that savings account interest rates and interest rate on a few loans will change as and when the regulator changes its repo rate.
RBI has eased business guidelines for white label ATMs allowing companies that manage these machines to source cash directly from the central bank, offer non bank services like bill payments and advertise even non financial products in their premises, increasing the revenue earning scope for these companies.
Union Cabinet approved recommendations of a group of ministers (GoM) relating to stressed power projects including grant of coal linkage for short-term power purchase agreements (PPAs).
Income tax department had sent out SMSes, emails and also issued notices to around 300,000 individuals, who made substantial cash deposits after the November 2016 demonetisation, to furnish income-tax returns for the assessment year 2017-18. But, around 87,000 taxpayers failed to comply with those notices.
11/03/2019
CBDT gave effect to the conditional relief from angel tax to start-ups as notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on February 19 by making the necessary changes in the Income Tax Act.
GST Notification No. 10/2019 Central Tax, dated the 7th of March, 2019 for higher exemption Threshold Limit for Supplier of Goods wef 1.4.2019.
GST Notification No. 02/2019 " Central Tax (Rate), dated the 7th of March, 2019 for Composition Scheme for Services and Mixed Suppliers, which would be optional to the taxpayers wef 1.4.2019.
GST Notification No. 14/2019 " Central Tax, dated the 7th of March, 2019 for Increase in Turnover Limit in case of existing Composition Scheme wef 1.4.2019.
SEBI has asked the government to amend the Companies Act to ensure that a director declared by it as a disqualified person should immediately vacate the position, a plea triggered by defaulter businessman Vijay Mallya's reluctance to do so.
SEBI discontinue automatic exemption in respect of persons other than lenders, from making an open offer for acquisitions under debt restructuring schemes has been taken in a bid to protect the interest of minority shareholders.
Income tax e-returns filed for the April-February period has grown nearly 30% compared with the corresponding period in FY18. While almost 6.4 crore taxpayers filed returns in the first 11 months of the fiscal, the government is expecting 7.6 crore returns to be filed by the end of FY19 against 6.7 crore in FY18.
Supreme Court decision dated 05/03/19 confirming addition u/s 68 of share capital and premium received from Kolkata companies... CIT Appeal, ITAT, Delhi HC all decided this matter in favour of assessee but SC on revenue appeal reversed appellate orders of authorities below. SC held practice of conversion of unaccounted money through the cloak of share capital/premium must be subjected to careful scrutiny. PR CIT Central Vs. NRA iron and steel p Ltd.
10/03/2019
China's plan to cut the rate of value added tax this year has been generally welcomed by commodity markets, as the lower cost burden would help businesses and stimulate sales at a time of slower economic growth.
RBI's move to align risk weights of banks' exposure to non-banking finance companies (NBFCs) with their respective credit ratings will help banks to create a lending headroom of Rs 1.4 lakh crore, Crisil said in a report.
Government is planning to promulgate an Ordinance amending the Insolvency and Bankruptcy Code (IBC) and adding a chapter on cross-border insolvency. This would give comfort to foreign investors in India and vice-versa.
09/03/2019
The Insolvency and Bankruptcy Board of India (IBBI) has issued a Charter prescribing the responsibilities of the Insolvency Professionals and Committee of Creditors involved in the Corporate Insolvency Resolution Process.
Income Tax Tribunal (ITAT) Agra in case of Fateh Chand Trust & College Committee v/s Commissioner of Income Tax vide it's IT Appeal No. 406 dated 27th September 2018 has held that Sec 12AA cannot be denied on the ground that assessee was engaged in education with a profit motive.
GST collections in February dropped to Rs 97,247 crore from Rs 1.02 lakh crore in the previous month. However, compliance improved and the number of sales return or GSTR-3B filed for the month of January up to February 28, 2019 stood at 73.48 lakh.
08/03/2019
SEBI tightened the valuation methodology for liquid mutual funds and did away with the open offer exemption given to those seeking to acquire assets undergoing insolvency resolution. To make sure liquid schemes reflect the underlying portfolio risks.
SEBI made several amendments to its regulations during the meeting and approved lowering of fees charged from brokers, stock exchanges and companies seeking to get listed. And approved granting permanent registration to custodians instead of periodical renewal every three years.
Ministry of Corporate Affairs has released the Companies (Prospectus and Allotment of Securities) Third Amendment Rules 2018 on 10th September 2018.
Accordingly on or after 2nd October 2018 any issue/allotment/transfer of securities by an unlisted public company must be in dematerialised form. The company shall also facilitate dematerialisation of its existing securities.
Additionally such unlisted public company shall obtain a half yearly share audit report from a practicing company secretary and submit the same with Registrar of Companies of its jurisdiction.
07/03/2019
In a sign that the government will show little tolerance to those who deposited huge sums of presumably untaxed cash in banks during the demonetisation period unless they turned tax-compliant, the Central Board of Direct Taxes (CBDT) has asked senior income-tax officials to go after over 87,000 people who are yet to file income tax (I-T) returns in response to the notices issued to them. The assessment in all these cases should be completed by March-end, the board said, in a missive to the field formations.
As FE reported earlier, the income-tax department had identified 23.5 lakh permanent account numbers (PANs) for post-note ban cash deposits being inconsistent with income profiles under the Operation Clean Money (OCM) programme.
Subsequently, the department issued statutory notices to 3 lakh among these. Of these 3 lakh PANs, “a total of 2.1 lakh persons filed income-tax returns and total amount of self-assessment tax was Rs 6,560.88 crore,†the department had told FE, in response to a RTI filed by the paper earlier. So some 90,000 of these people haven"t filed returns despite receiving statutory (Section 142-1) notices, whose cases are now being followed up.
The department had further said that of the original 23.5 PANs, over 17 lakh filed e-returns after receiving communication. Out of these, over 14.5 lakh PANs filed their income-tax returns for last 3 assessment years " AY2015-16,2016-17 & 2017-18. As on January 7, 2019, out of the 23.5 lakh persons, a total 4.15 PANs had never filed income-tax returns.
The government Thursday notified April 1 as the date for the implementation of doubling of GST exemption limit to Rs 40 lakh, which will benefit small and medium enterprises.
Besides, the effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed as April 1.
Also, service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent from the beginning of next fiscal.
04/03/2019
CBDT, in a bid to promote Cashless Transactions, issues an advisory on its Official Website regarding Cash Transactions over and above the prescribed limits specified under the law.
Central Government amends the Aadhaar Act and two related laws in order to make Aadhaar based-KYC for Procuring Mobile Connection and Bank Account compulsory. The compulsory use of Aadhaar-based KYC for mobile connections and bank accounts was prohibited by the Supreme court"s judgement dated 26th September 2018.
RBI imposes a Monetary Penalty of Rs 3 Crore on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI Bank and the SBI Bank, for Non-Compliance with Various Directions
03/03/2019
SEBI approves a proposal to Lower Fees charged from Brokers, Stock Exchanges and Companies seeking to get listed in order to bring down the cost of trading in stock markets. It also approves changes in norms for Valuation of Money Market and Debt Securities by Mutual Funds.
Govt. decides to Directly Transfer Cash Subsidies into bank accounts of Farm Produce Exporters, in an attempt to make Indian agricultural produce globally competitive and boost exports of branded farm products, officials with direct knowledge of the matter said on condition of anonymity.
02/03/2019
In an attempt to curb the menace of road accidents and fatalities, Delhi Police with Maruti Suzuki India Limited's aide has launched automated red light and speed violation detection systems on Tuesday.
The initiative is expected to provide safe driving experience to motorists, help pedestrians in crossing the road safely and improve compliance with road traffic rules. The system, set up along the Ring Road, is a 14-km corridor between Dhaula Kuan and Sarai Kale Khan.
The system will automatically encrypt and transfer the data of violation to the centralized server at Delhi Traffic Police Headquarters. The system facilitates the generation of e-challans along with photo evidence and sends it to the violators through SMS/email/post.
The system, potent of working 24X7, is also capable of doing data-analytics and generating trend reports for monitoring system-effectiveness and efficiency. Maruti Suzuki has invested about Rs 16 Crore in setting up the system.
01/03/2019
Income Tax Department will "only" issue refunds via the e-mode into bank accounts of taxpayers from March 1, 2019." Link your PAN with your bank account to get your refund directly, swiftly and securely, the department said.
CBIC will introduce a next generation reform for Ease of Doing Business named as “Turant Customs†vide its Circular No. 09/2019- Customs dated February 28, 2019
28/02/2019
Realty developers are seeking clarity on recent exemption offered from the GST levied on development rights, including transferable development rights (TDRs), development rights certificates (DRCs) and joint development agreements (JDAs) has written to the Ministry of Housing and Urban Affairs seeking clarity on this.
Supreme Court's ruling on Provident Fund states that employers can't segregate special allowances from basic salary. It has to be included for PF deductions under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
24/02/2019
GST Council headed by Finance minister Arun Jaitley today approved the proposal of 5 percent tax on normal residential properties and 1 percent for affordable housing category.
The new rate will be applicable from April 1, 2019.
Currently, GST is levied at an effective rate of 12 percent (standard rate of 18 percent less a deduction of 6 percent as land value) on normal housing and effective rate of 8 percent (concessional rate of 12 percent less a deduction of 4 percent as land value) on affordable housing on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.
A residential apartment, with a carpet area of up to 90 sqm in non-metropolitan cities and 60 sqm in case of metros with value up to Rs 45 lakhs will fall under the affordable housing category, Jaitley said.
Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) will be considered metropolitan cities.
23/02/2019
Government has issued The Banning of Unregulated Deposit Schemes Ordinance 2019 on 21.02.2019. Pursuant to this ordinance now any Individual or group of individuals can"t take any unregulated deposit or loan from any person other than relatives and Partnership firm can take deposit or loan from relatives of partner or partners only.
GSTN portal should allow rectification of mistake while filing GST return. Delhi High Court has passed welcome Decision is this regards. Tax Payer should be allowed to rectify mistakes in GST Return as many times as they want:- High Court
22/02/2019
MCA: Every Company incorporated on or before 31st December 2017 has to file this return called “Active Company Tagging Identities and Verification On or before 25-04-2019 Late fee After due date Rs. 10,000/-.
MCA made mandatory to submit E-Form MSME-1 with MCA by Specified Companies-As per the MCA Notification dated 22nd Jan, 2019.
21/02/2019
SEBI revised the minimum haircut for government securities (G-sec) that are used as collateral in the market. Generally, haircut refers to the difference between the market value of the particular securities and the value at which the same has been kept as collateral.
President gave assent to changes in the Indian Stamp Act, 1899, which will rationalise and harmonise stamp duty and help curb tax evasion. The Amendments to the Indian Stamp Act, 1899, were introduced as part of the Finance Act 2019, and was approved by Parliament.
20/02/2019
Govt raised the limit of angel tax exemption for startups, while revising the definition of such an enterprise. Angel tax, the focus of a recent controversy, which has come to be called so since it largely impacts angel investments in startups, refers to income tax payable on capital raised by unlisted companies via issue of shares, where the share price is seen in excess of the fair market value.
GST Council on Wednesday will consider various proposals to cut tax rates on under-construction residential property, including a tiered structure with 2-3 rates corresponding to different base prices of the houses. Next meeting is scheduled for 24-02-19
19/02/2019
Mca amends companies (adjudication of penalties) rules providing procedure and timelines for online adjudication-- penalty can't be levied below minimum amount prescribed.
Allahabad Bank, Central Bank of India and Dena Bank may be next in line to be taken out of the Reserve Bank of India"s prompt corrective action (PCA) framework, with the government likely to inject more capital into these lenders.
18/02/2019
According to Digital Signature Market information report, the global digital signature market is projected to grow at a CAGR of 30.5 percent over the forecast period of 2018-2024.
The growing necessity of verifying digital documents in areas such as patient consents, court documents and records, contracts, cash management documents, policies and claims is anticipated to strengthen the industry growth.
A state ministerial panel set up to review tax rate on lottery Monday favoured a uniform GST rate of either 18 per cent or 28 per cent -- a final call on which would be taken by the GST Council at its meeting on February 20. Currently, a state-organised lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax.
17/02/2019
SEBI relaxed guidelines for the composition and functioning of the advisory committee at market infrastructure institutions such as stock exchanges, clearing corporations and depositories.
RBI withdrew the 20 per cent limit on investments by FPIs in corporate bonds of an entity with a view to encourage more foreign investments.
Election Commission of India has sought changes in the affidavit candidates file along with their nominations to declare income-tax returns of the last five years (of self, spouse and HUF), details of all foreign assets.
CBDT chairman Sushil Chandra appointed as Election Commissioner.
ICAI UDIN is APPLICABLE on Certificates issued on the basis of Financial books of accounts and annual financial statements-Capital Contribution Certificate/net worth certificate & NOT APPLICABLE Auditor"s Opinion/Reports issued by the Practicing Chartered Accountant under any Statute
16/02/2019
From April 1, all the States barring Kerala and Telangana, and two Union Territories (with assemblies), will have higher annual threshold limits for mandatory registration for GST for goods suppliers.
Finance Minister Piyush Goyal said the government is considering giving relief to the real estate sector and the next GST Council meeting could take some steps to address their issues even as he asked the banks to meet the realty sector on stalled projects in two weeks.
15/02/2019
Finance Ministry is on course to meeting the NPA recovery target of Rs 1.8 lakh crore by March 31, 2019 with the recoveries already touching Rs 1.08 lakh crore and many big-ticket default cases reaching resolution.
An expert committee set up by the government has recommended setting the minimum wage at Rs 375 a day, higher than the existing rate of Rs 321 for agriculture or unskilled workers and Rs 371for semi-skilled workers.
14/02/2019
Income Tax total outstanding demand payable to exchequer has risen by nearly 45% to Rs 10.7 lakh crore in the April-December period of the current fiscal from the FY16 level. The outstanding demand includes both direct and indirect taxes.
Rajya Sabha passed Finance Bill " 2019 yesterday 13 February 2019.
RBI has completely revamped existing regulations relating to External Commercial Borrowings, Trade credits & Borrowing and lending in INR ("ECB") by issuing a revised Notification No. 3(R) /2018-RB - Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 dated 17th December 2018 ("New ECB Regulations").
13/02/2019
Sebi is planning to tighten risk management practices in equity derivatives and stocks in the run-up to the general elections. The market regulator is likely to tighten margin rules for futures and options trades and restrict introduction of strike prices in options intra-day as it looks to curb wild speculation by traders.
SEBI, in consultation with Secondary Market Advisory Committee (SMAC) of SEBI, has notified new criteria for moving derivative on such stocks to physical settlement from the new expiry cycle.
Income Tax Department claimed to have busted a nexus of hawala operators in Delhi who were running a money laundering racket estimated to be worth Rs 20,000 crore.
12/02/2019
Indians who own stocks and properties abroad or are beneficiaries of offshore trusts may come under the glare of the income tax dept for failing to spell out their "indirect investments". Indirect investments are the next level investments or, holdings in other overseas companies by the entity in which the resident Indian is a stakeholder.
MCA amending the rules for significant beneficial owners under the Companies Act 2013, corporates are required to take necessary steps to identify such owners and significant beneficial owners in Indian corporates might face strict action for inadequate or wrong disclosures of their ownership, and companies too can seek action against entities in case they fail to provide satisfactory responses.
11/02/2019
SEBI has released the much awaited notification to increase the levels of Corporate Governance and transparency by notifying the Format for Annual Secretarial Audit Report and Annual Secretarial Compliance Report for listed entities and their material subsidiaries.
Finance ministry has sought from the RBI Rs 27,380 crore that was withheld by the central bank towards risks and reserves in the previous years.
10/02/2019
Additions could not be made in respect of assessments already completed if no incriminating material was found during search or during 153A proceedings.DCIT Vs United Stock Exchange of India Ltd. (ITAT Mumbai)
GOM has decided to recommend a GST rate cut on all under-construction houses to 5%, from 12% at present, and slashing of GST rate to 3% from 8% on "affordable housing projects". However, the rate cuts would be accompanied by denial of input tax credit (ITC) to the builders.
SEBI came out with the format for listed entities for preparing their annual secretarial audit and compliance reports. This would also be applicable for the "material unlisted subsidiaries" of the listed entities.
Every company other than Government Company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee.
DPIT and CBDT are likely to increase the exemption threshold for startups from the so-called Angel Tax. Under the new rules, companies whose share premium does not exceed Rs 25 crore will get immunity from the taxation from Rs 10 crore.
09/02/2019
CBDT chairman said We will have to decide which startups are real startups and how they can be exempted from Section 56 (2) of the Income Tax Act,†Various startups had raised concerns over the notices sent to them under this section to pay tax on angel investments.
Govt revised a 27-year-old cap on investment in the stock markets by bureaucrats to six months of basic pay. Under the 1992 rule, Group A and B officials had to intimate the government in a form if the total transaction in shares, debentures or mutual funds exceeded Rs 50,000 in a financial year.
08/02/2019
RBI raised the limit of collateral-free agricultural loans to Rs. 1.6 lakh from the current Rs. 1 lakh with a view to help small and marginal farmers. The central bank also decided to set up an internal working group (IWG) to review agricultural credit and arrive at a workable policy solution.
RBI said it would intensify its scrutiny of non banking finance companies to ensure better compliance and financial strength, but did not indicate an asset-quality review like the one carried out on banks.
RBI vide it"s notification has allowed the Resolution Applicants (RAs) to raise ECB funds for repayment of rupee term loans of the Corporate Debtor.
07/02/2019
Just 23 crore PAN card holders " over half of the total PAN card holders " have so far linked their cards with biometric ID Aadhaar, even as the deadline to link the two comes to an end on March 31, 2019. Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra said the Income Tax department has so far issued 42 crore permanent account numbers (PAN), of which 23 crore have been linked with Aadhaar. Supreme Court has made it mandatory that Income Tax returns will be filed with Aadhaar and the last date for linking PAN with Aadhaar is March 31.
Supreme Court has said that linkage of PAN with Aadhaar is mandatory for filing of Income Tax returns. The court's direction came on an appeal filed by the Centre against a Delhi High Court order allowing two persons, Shreya Sen and Jayshree Satpute, to file Income Tax returns for 2018-19 without linking their Aadhaar and PAN numbers.
Income tax e-returns filed for the April-January period has risen over 37 per cent against the corresponding period in FY18. While over 6.3 crore taxpayers filed returns in the initial ten months of the fiscal, the government is expecting Rs 7.6 crore returns to be filed by the end of FY19 against Rs 6.9 crore in FY18.
06/02/2019
GST COUNCIL had recently recommended that interest is required to be paid on net liability. No cbic circular clarifying such intention of GST council has been issued so far. We have press release only. Standing Orders issued by CGST Principal Comm, Hyderbad on Sec. 50 of CGST and TGST Acts on payment of interest.
SEBI came out with a strict framework for public interest directors serving at stock exchanges, clearing corporations and depositories. Under the framework, public interest directors (PIDs) will be nominated for three years, extendable by another term of three years. However, this will be subject to a performance review.
RBI is likely to change its monetary policy stance to 'neutral' from 'calibrated tightening' on Thursday and move closer to a rate cut in April as inflation stays below the central bank's 4 per cent target. A softer stance would augur well for government, which wants to boost lending and lift growth as it faces elections by May.
05/02/2019
The allottee gets title to property on issue of allotment letter. The payment of installments is only a follow-up action. Taking delivery of possession is only a formality. Accordingly, the date of allotment is the date on which the purchaser of a residential unit can be stated to have acquired the property. PCIT vs. Vembu Vaidyanathan (Bombay High Court)
GST collections in January rose to Rs1.02 lakh crore " the second highest monthly mop-up after April. This is a significant increase from the collection of Rs94,725 crore in December 2018, and 14% higher than January 2018 collection of Rs89,825 crore. The total number of sales return or GSTR-3B filed for the month of December up to January 31, 2019, is 73.3 lakh.
Finance ministry has directed the SEBI to submit proposed regulations to an independent committee for vetting before they are passed by the regulator"s board. It is not clear if the new committee will comprise external members or independent directors on the SEBI board. In either case, the finance ministry"s department of economic affairs (DEA) will name the members of this committee.
04/02/2019
Businesses supplying goods worth more than Rs 50,000 will have option to include details of e-way bills generated while filing the final monthly sales return under GSTR-1, a move aimed at curbing tax evasion by reporting different sets of supplies data. Matching of invoices of e-way bills with the sales shown in GSTR-1 will help taxmen in assessing whether the supplies have been accurately shown in sales return and GST paid on the same.
SEBI has proposed a new set of framework for REITs and Invites in order to provide flexibility to the issuers in terms of fund raising and increasing the access of these investment vehicles to investors. Under the proposal, minimum allotment and trading lot for publicly issued REITs (Real Estate Investment Trusts) and Invites (Infrastructure Investment Trusts) will be reduced.
03/02/2019
The government may not push for changes in board-level committees of the Reserve Bank of India after the recent thaw in relationship between the two. The government had made a case for expansion and more active participation in the Board for Financial Supervision (BFS) and the Committee of the Central Board (CCB), the two important committees where there is no Government representation.
CBDT notifies BSE Limited as recognised association U/s. 43(5) (e) of the Income Tax Act on 31st of January. 2019 vide Notification No. 8/2019.
02/02/2019
Direct tax collection for current fiscal exceeded the budgeted target by Rs 50,000 crore to Rs 12 lakh crore, while FY20 fiscal the mop-up has been pegged at Rs 13.80 lakh crore. The government had originally budgeted to collect Rs 11.50 lakh crore in current financial year from direct taxes.
Despite a shortfall of Rs 1 trillion in the expected CGST collection in 2018-19 the Centre is aiming for an ambitious 18 per cent growth in the overall GST mop-up in 2019-20. The government is eyeing similar growth in income tax, corporation tax and customs revenue in FY20. Overall tax revenue growth is pegged at 14 per cent.
CBIC issues 13 GST notification on 29.01.2019 wef 01.02.2019.
31/01/2019
GST Taxman may examine high usage of input tax credit to set off GST liability Concerned over a decline in GST revenues, tax officials are likely to examine the high usage of input tax credit (ITC) to set off tax liability by businesses.
MCA notification Mandatory Filing of Details of Loan with ROC in brief with some important FAQ"s in relation to DPT-3 with reference to companies ( Acceptance of Deposits) Amendment Rules, 2019 on 22.01.2019.
Govt has imposed an anti-dumping duty on a chemical from China, used in photography and manufacturing of dyes, for five years to protect domestic producers of the chemical intermediate from cheap shipments.
30/01/2019
Govt empowers PSU banks to seek lookout circulars against willful defaulters. The Home Ministry has also authorised the Serious Fraud Investigation Office (SFIO), a statutory corporate fraud investigation agency, to request LOCs if it feels the suspect may escape from India.
RBI is weighing a plan to release data that would demonstrate that the number of corporates defaulting on bank loans have dipped following the central bank"s stern directive on February 12 last year that had rattled large, influential borrowers and irked many within the government.
Income Tax Department has confiscated assets worth Rs 6,900 crore till now as part of its action under the anti-benami transactions law, the agency said in a public advertisement. who "abet and induce" benami transactions, benamidar and beneficiaries are prosecutable and may face rigorous imprisonment up to 7 years besides being liable to pay fine up to 25 per cent of fair market value of benami property.
The Central Board of Indirect Taxes & Customs has issued an Order which may be called as the Central Goods and Services Tax (Second Removal of Difficulties) Order, 2018.
29/01/2019
FDI during the previous fiscal grew 18 % to Rs 28.25 lakh crore, data from RBI showed. FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value, according to RBI data on 'Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18'.
RBI has asked all registered peer-to-peer (P2P) lenders to furnish details about borrowers, lenders, their financial profiles, total exposure of participants and the financial health of the platforms themselves as it looks to assess the overall wellbeing of the sector. The regulator sent its queries to the companies earlier this month and asked them to respond in two weeks.
28/01/2019
Realty sector can be a driving force for creating jobs and GDP growth, says CREDAI. After being through the various structural changes and demand pressures over the past two years, the real estate sector is expecting the upcoming Interim Union Budget for 2019-20 to rationalise the GST rates for underconstruction properties, further incentives for affordable housing, and convergence of stamp duties within the GST rates.
SEBI has put out a consultation paper on commodity index design, to boost derivative markets in such indices. Index-based commodity products should shore up institutional participation and raise liquidity in futures and options, for instance, to arbitrage across index products, and use one product to hedge their position in another.
27/01/2019
MCA has decided 26.01.2019 a date when e form INC 20A is available and can be download from mca.gov.in which is required to be filed by every company within 180 days from the date of Incorporation of the Company and shall be applicable from retrospectively i.e.02.11.2018 (i.e. the company incorporated on or after 02.11.2018).
RBI issued a policy paper on retail payment systems that proposes to ease norms for the entry of new players in a bid to boost competition and innovation. Mint analyses its proposals and the retail payment ecosystem in India.
25/01/2019
Income tax authorities have turned the heat on taxpayers who have missed paying advance tax as the department makes a year end dash to meet budget targets. The authorities have started issuing show-cause notices asking assessees to explain why any advance tax installment was missed.
Union Cabinet has approved the creation of National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) and shall be situated at New Delhi. GSTAT shall be presided over by the President and shall consist of one Technical Member (Centre) and one Technical Member (State).
24/01/2019
MCA vide notification issued on 22.01.2018 mandate companies to file MSME form I before 21.02.2019 about details and reason for delay in payment to MSME beyond 45 days.
RBI will change its stance to 'neutral' next month and cut interest rates in June at the latest, according to a Reuters poll of economists pointing to an extraordinary U-turn in policy. Just a month ago, economists predicted rates would start rising next quarter
23/01/2019
Non-filers of GST returns for six consecutive months will soon be barred from generating e-way bills for movement of goods. The GST Network is developing an IT system such that businesses that have not filed returns for two straight returns filing cycles would be barred from generating e-way bills.
DIPP: The Department of Industrial Policy and Promotion (DIPP) has simplified the procedure for startups to claim exemption from the applicability of Section 56(2)(viib) of the Income Tax Act.
22/01/2019
RBI had last month come out with the guidelines stipulating that from April 2019, minimum 40 percent of fund- based limits of a borrower is required to be structured in the form of a 'loan component' with a fixed maturity .
RBI proposed to relax norms for entry of new players in the retail payment systems with a view to give a boost to innovation and competition. The RBI has been issuing guidelines for various payment systems and grants authorisation to non-banks for setting up and operating payment systems.
21/01/2019
CBDT will soon set up a dedicated unit for processing requests from startups and angel investors for exemption to expedite the process, a government official said.
High Court of Bombay in case of PCIT v/s Viksit Engineering Ltd vide its ITA Appeal No:485 dated 26th November 2016 has held that buying and selling of share in short span of time doesn"t change character of capital gain as business income.
Kerala is so far the only state to retain the GST threshold at an annual turnover of Rs 20 lakh for businesses in the state, even as half-adozen states agreed to double the registration and tax limit for manufacturers to Rs 40 lakh.
20/01/2019
CBDT will soon issue a circular on past angel tax demands directing field officials not to press for payment until the case has been decided at the first stage of appeal.
Central Government has notified new forms for annual Goods and Services Tax (GST) returns. These forms are to be filed by businesses registered under the GST regime by June 30, 2019.
Parliament received the assent of the President on the 10th January, 2019, and is hereby published for general information: the right of children to free and compulsory education (amendment) act, 2019 wef 11.01.2019.
19/01/2019
Angel Tax: A third of start-ups got tax notices in 2018. Over 38% of the start-ups in the country " 39,000 at last count " have received one or more "angel tax" notices in 2018, causing critical capital infusion in these firms at the seed stage to go down by 21% year-on-year.
Cabinet cleared an ambitious Rs 4,242 crore project for e-filling and centralised processing of income tax return, which will allow taxpayers to get a refund in one day through a pre-filled tax return form.
GST ministerial panel will suggest whether a uniform tax rate should be imposed on lotteries or the current differential tax rate system be continued, the Finance Ministry said.
18/01/2019
DGFT has issued a Trade Notice informing about the mandatory recording of information about transfer of MEIS / SEIS scrips issued on or after 14.01.2019 on the DGFT website.
Sebi issued draft norms for commodity indices, proposing a maximum weightage of 20 percent for a constituent. Besides, the watchdog has proposed rules for product design for future on the indices as part of larger efforts to deepen the participation of institutions in the derivatives segment.
17/01/2019
RBI announces the New External Commercial Borrowings (ECB) Framework as a part of the on-going efforts at rationalising multiple regulations framed under FEMA 1999.
RBI is likely to change its policy stance from "neutral" from "calibrated tightening" in the February policy. The inflation based on the Consumer Price Index (CPI) eased to an 18-month low of 2.19 per cent in December compared to 2.33 per cent in November and 5.21 per cent in December 2017
16/01/2019
The consumer food price index contracted 2.51% in December; in November, it was 2.61%.Inflation rates, both wholesale and retail. This, in turn, might prompt the RBI Monetary Policy Committee to change its stance from calibrated tightening to neutral in its review next month.
BSE has issued caution notice to all the suspected shell companies, to take note of the process for dealing with suspected shell companies not having any operation for a long period.
Tighter norms for e-commerce players could help boost revenues of brick and mortar (B&M) retail stores by 150-200 basis points (bps) or Rs 10,000-12,000 crore in the 2020 fiscal, according to ratings agency CRISIL.
15/01/2019
Finance Ministry is planning to increase thresholds limit of Income Tax Return from Rs 2.5 Lacs to 5 Lac very soon in Budget: Source CNBC TV.
FinMin plans to prevent composition dealers from charging GST from buyers In a consumer-friendly measure, the revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers.
Companies may soon be able to rectify GST returns for Non-IT errors mandated for carrying forward tax credit from the previous regime for non-IT related errors as well.
14/01/2019
RBI is working on a set of rules that would link remuneration of banks CEOs to parameters like balance sheet size of a bank, loan delinquency, profits and governance record. The proposed framework is expected to provide a broad template to the board of directors of banks.
SEBI may issue guidelines shortly mandating foreign entities to store data pertaining to India locally. Financial institutions like Citi, JP Morgan, HSBC and Deutsche Bank operate brokerage and custodian services in India and typically prefer to store data digitally at their regional centres such as in Hong Kong and Singapore.
The Ministry of Home Affairs has extended last date for filing online annual returns in form FC-4 for financial year 2017-18 from 31-12-2018 to 31-03-2019.
13/01/2019
GST applicable on value of taxable supply INCLUDING TCS under Income tax, where applicable like scrap etc.
Circular 76/50/2018
Sale Bills/Dr/Cr notes of 2017-18 can be added/updated in GSTR-1 till 11-04-2019 for Monthly return filers & 30-04-2019 for quarterly return filers . Order 02/2018-CT of 31.12.2018.
Gst - Claim ITC of 17-18 in GSTR3B till 20-4-19. Pre-condition-Supplier shows relevant bills in GSTR1 till 11-4-19(M) & 30-4-19(Q)
Order 2-CT of 31.12.18
12/01/2019
RBI has allowed tokenization of debit, credit and prepaid card transactions to enhance the safety of the digital payments ecosystem in the country. By this means the regulator will allow the card details to be masked while a transaction is processed at point of sales, QR codes and other payment modes.
Two million additional micro, small and medium enterprises (MSMEs) in India will become eligible to opt out of the GST system from the beginning of the next financial year. The revenue impact of this move is estimated to be more than Rs 6,000 crore on an annual basis.
11/01/2019
Exemption under import scheme extended till March 31 from integrated tax and compensation cess under the advance authorisation scheme. This exemption has ended in October last year.
SEBI asked fund houses to have a wider basket of stocks while keeping in check the weightage of top stocks of the index. In a circular issued to all mutual funds and asset management companies, SEBI said an index used for equity ETFs or index funds should have at least 10 stocks as its constituents.
09/01/2019
The Calcutta Stock Exchange has come out with an Amnesty Scheme for all defaulting and suspending Companies with an aim of facilitating companies to bring their listing compliance upto date on payment of nominal fees.
08/01/2019
Nearly 16% GST return assessees are non-filers of monthly returns, while in the composition scheme, one out of every five assessees is a non-filer. According to data made available to the Lok Sabha by the government on Friday, August 2017 was the best among the 17 months of GST when non-filers'â„¢ percentage was less than 7.5%.
Lok Sabha passed a bill to amend the Aadhaar Act and two related laws which will allow individuals to offer voluntarily biometric ID as a means of identity verification for obtaining services such as opening bank account and procuring mobile phone connection.
07/01/2019
RBI KYC deadline may punch a hole in wallet companies plans because Most of India'â„¢s mobile wallets may become non-operational by March as they fear companies will be unable to meet the central bank'â„¢s deadline to complete verification of all customers by the end of February 2019.
India'â„¢s GDP grew at 7.2% in 2018-19, according to the first advanced estimates released by the Central Statistical Office, the fastest rate of growth since 2016-17, marking a recovery in economic activity from the twin disruptions of demonetisation and GST.
06/01/2019
Finance Ministry has allowed businesses to claim input tax credit benefit for the first financial year of GST roll out, till March 2019, provided it matches with the return filed by their suppliers. The deadline for claiming input tax credit (ITCNSE 0.39 %) ended on October 25, 2018.
DIPP clarified that The FDI rules for e-commerce have not allowed foreign investment in the inventory-based model or multi-brand retailing.
05/01/2019
GST Council is set to bring down the tax incidence on under-construction houses. One option is bringing the tax rate from 12% to 5% for all such projects but deny the ITC. Alternatively, the Council at its 32nd meeting on January 10 may also allow ITC to those builders who buy 80% or more of inputs from registered dealers, even with the reduced tax rate.
Jewellery exporters have welcomed the government's decision to exempt 3 per cent of IGST on gold sourced from nominated agencies, effective January 1. The GST Council felt the need to exempt intra-state supply of gold by nominated agencies, in public interest under the scheme for 'Ëœexport against supply by nominated agency'â„¢.
The Reserve Bank set up an expert committee under former SEBI chairman U K Sinha to suggest long-term solutions for the economic and financial sustainability of the MSME sector.
04/01/2019
CBIC has notified new annual GST return forms, which are required to be filed by businesses registered under GST regime by June 30, 2019. In the annual return forms, businesses have to provide consolidated details of sales, purchases and input tax credit (ITC) benefits accrued to them during the 2017-18 fiscal.
GST collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh.
03/01/2019
CBIC has launched a one-time scheme to waive late fee for delayed furnishing of filing GST return-1 form for the period July 2017 to September 2018, to encourage taxpayers to furnish the returns. The waiver, which will be effective till 31 October 2018.
RBI to breather to the micro, small and medium enterprise (MSME) sector has decided to permit one-time restructuring of existing loans to these enterprises that are in default but 'Ëœstandard'â„¢ as on January 1, 2019, without an asset classification downgrade.
UPI transactions for December stood at 620 million.Transactions via the unified payments interface (UPI), the country'â„¢s flagship payments platform, crossed a value of Rs 1 trillion in December, according to the data released by the National Payments Corporation of India.
01/01/2019
CBDT notifies DTAA between India-Hong Kong For Avoidance Of Double Taxation And Prevention Of Fiscal Evasion With Respect To Taxes On Income vide Notification No. 89/2018 dated 21st December, 2018.
GST; No profiteering if base price of product not changed after Tax Reduction. Kerala State Screening Committee on Anti-profiteering Vs M/s. Asian Granito India Ltd. (National Anti-Profiteering Authority)
RBI have recorded the decision that the central bank will not touch the 'Ëœunrealised gains'â„¢ in its balance sheet for dividend distribution to its sole shareholder, the government. 'Å“Unrealised gain is valuation gain in currency and gold. To tap this, it has to be realised or converted in the market.
31/12/2018
Direct tax collection till December 20 this fiscal amounted to Rs 7.36 lakh crore, a growth of 14% over the same period a year ago. This is 64% of the Budget estimate for direct tax collection in the current fiscal.
Reduction in discount doesn'â„¢t amount to profiteering as the same was offered from his profit margin by the Respondent and doesn't not form part of the base price and therefore, the Respondent cannot be held guilty under Section 171 of the Act. In re Kerala State Screening Committee on Anti-profiteering Vs M/s Asian Paints Ltd. (National Anti-Profiteering Authority)
30/12/2018
Sebi expanded its offer for sale (OFS) framework to all the companies with market capitalisation of Rs 1,000 crore and above. Currently, the OFS framework is available to top 200 companies by market capitalisation.
RBI has notified the regulation for lending and borrowing under FEMA wherein the provisions related to borrowing by authorized Dealer or its branch office and Lending in foreign Exchange by person resident in India and so on.
29/12/2018
File your Income Tax Return before 31st December 2018 to Avoid higher Late fee of upto Rs 10,000 if not filed yet.
Charges for cheque bounce collected by an entity from its customers are liable to be taxed with the applicable Goods and Services Tax (GST) rate, the Authority for Advanced Ruling (AAR).
You may soon get separate bills for taxable and non-taxable components in bills that include services exempt under GST regime. The GST Council has decided to extend the unbundling of bills beyond healthcare for all categories of services currently exempt from the tax, such as education
Gujarat tops the list of States in number of violations of the e-Way bill system, introduced in April. The highest amount of tax evasion, meanwhile, took place in Tamil Nadu. The data, presented by the Ministry of Finance to the Lok Sabha.
28/12/2018
31st Dec Last Date - ROC (Form AOC-4/4 CFS, Form MGT-7) & XBRL (E-form AOC-4 & CRA-4) without Additional Fee.
RBI has formed an expert committee under former governor Bimal Jalan to decide the appropriate level of reserves that the regulator should hold. This comes more than a month after the bank'â„¢s central board proposed the panel'â„¢s formation following a dispute between then governor Urjit Patel
27/12/2018
Bogus Purchases: The fact that the vendors are not available at the given address is not sufficient to treat the purchases as bogus if the assessee has discharged primary onus and substantiated the purchases through documentary evidence and payment is made through banking channels. ACIT vs. Karam Chand Rubber Industries (ITAT Delhi)
The 31st GST Council meeting has waived the late fee for some returns such as FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the periods July 2017 to September 2018.
26/12/2018
Union government plans to create a backstop facility for states to receive compensation for three additional years to implement the nationwide GST after the expiry of the first five years as mandated by the Constitution.
Group of state finance ministers might recommend raising the turnover threshold for the GST from the current Rs 20 lakh to Rs 75 lakh, in a move that would give lakhs of micro and small enterprises the option to be outside the ambit of GST: Sushil Kumar Modi, deputy chief minister of Bihar
25/12/2018
GST Council has agreed that IT and ITeS companies would now be able to avail refunds on taxes paid on inputs used in servicing global contracts jointly with their foreign outfits.
GST Council is likely to consider lowering GST on under-construction flats and houses to 5 per cent in its meeting next month, an official said.
24/12/2018
GST Intelligence (DGGI) has busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 2.2 billion to avail input-tax credit at Chennai and Coimbatore in Tamil Nadu.
RBI has cancelled the registration of 1,490 non-banking financial companies (NBFCs). These included NBFCs that failed to meet prudential norms and those that voluntarily surrendered registration.Kolkata tops the list with 617 cancellations.
23/12/2018
CBDT has asked field officials to desist from taking any coercive action against angel tax notices being slapped on start-u or recovery of demands of completed assessments from these firms till a policy decision is taken.
Delhi High Court has recently held that the audit objection is merely an 'Ëœinformation'â„¢ based on which, re-assessment under section 147/ 148 of the Income Tax Act, 1961 cannot be made.
22/12/2018
Lucknow bench of the ITAT held that the AO cannot make an addition merely on the ground of the assessee made frequent withdrawal and deposit of his own money, which is not prohibited under any law.
SEBI said it was planning a sandbox policy to support technology developments in financial markets. The Sandbox policy will allow companies to test products in a closed environment, a particular geography or among a set of users, before they are allowed roll out commercially meeting all regulations.
RBI announced a cap on the outstanding stock of ECB at 6.5 percent of GDP at current market prices. Based on the GDP figures at March-end 2018, the soft limit works out to $160 billion for the current financial year.
20/12/2018
FIVE advisable Don'ts
Don'â„¢t accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion.
Don'â„¢t receive or repay specified sum exceeding Rs 20,000 or more in cash for transfer of immovable property
Don'â„¢t pay more than Rs 10,000 in cash relating to expenditure of business/profession.
Don'â„¢t donate in excess of Rs 2,000 in cash to a registered trust or political party.
Don'â„¢t pay health insurance premiums in cash.
19/12/2018
Govt has ordered a fresh cadre review and restructuring of the income tax department with an aim to create a 'Å“caring but strict' direct taxes regime in the country. CBDT ordered the creation of a 12-member committee of senior officials to accomplish the task within the next three months.
Kerala High Court ruling has made it clear that no penalty can be levied if wrong value of goods are entered in e-Way bills, provided the amount paid as tax is correct. Since the High Court order has precedent value, it means such a ruling can be applied for any matter where goods are detained on account of small mistake in e-Way bill '- like a zero missing from the value of goods even when tax has been paid correctly.
17/12/2018
Section 56(2)(vii) does not apply to bona fide business transaction done out of business exigency. The difference between alleged fair market value of share and the subscribed value of shares cannot be assessed as income u/s 56(2)(vii)(c). ACIT vs. Subhodh Menon (ITAT- Mumbai)
Reserve Bank of India is contemplating to forward cases of non-realisation of export proceeds to the Enforcement Directorate, have created unavoidable panic even among genuine exporters who have submitted their records about remittance receipts with their banks, EEPC India said.
14/12/2018
AAR, Maharashtra ruling in Lions Club of Poona Kothrud (2018 (12) TMI 590). when the Fee collected from the Members of Lions Club is not 'Ëœsupply
Writ petition admitted in High Court challenging the press release dated 18.10.2018 pointing out that according to sec 16(4) of CGST Act, a registered person is not entitled to take ITC in respect of invoice or debit note after the due date of furnishing September month return u/s 39 of CGST Act following the end of the FY to which such invoice or debit note pertains or furnishing of annual return whichever is earlier.
13/12/2018
Taxmen may soon come knocking at the premises of companies that have registered for the goods and services tax and vanished, not having filed returns or paid their taxes. The authorities are considering putting in place an extensive plan to hunt for these missing GST taxpayers, which includes visiting their premises.
Sebi eased norms for startup listings and allowed mutual funds to segregate distressed assets to safeguard investment returns. Sebi board also approved a proposal to expand the offer-for-sale mechanism for reduction of a stake in listed companies and relaxed clubbing of investment limit norms for well-regulated foreign investors.
11/12/2018
Elections commission will propose amendments to the Representation of the People Act, 1951, that will require citizens to link their Electoral Photo ID Card (EPIC) with the 12-digit Aadhaar, while ensuring privacy protection, said people with knowledge of the matter.
08/12/2018
Mauritius has amended its Income Tax Act and inserted a clause for determining the place of effective management. This makes it difficult to establish residency in the country and poses a new headache to Indian private equity as well as portfolio investors putting money into the country.The Mauritius Revenue Authority (MRA) issued a Statement of Practice (SOP) on November 28, with regard to Section 73A of the Income Tax Act on place of effective management.
15.12.2018 is last date for payment of your third instalment of Advance Tax. Non/short payment will attract levy of interest.
06/12/2018
Uttar Pradesh government has decided to refund the SGST imposed on multiplexes and cinema theatres. In an order, the government has allowed the owners, who were part of grants-in-aid incentive schemes, to get these refunds, which would be made within a month of depositing the SGST with the department.
RBI has proposed a major change in the way banks price their loans. It said that banks will now have to link the interest rates charged by them on different categories of loans to the external benchmarks instead of the used internal benchmarks, which is the norm now.
02/12/2018
CBDT has issued a directive dated 27 November, 2018 by which it has outlined the measures to be taken by the Department to avoid refund frauds and leakage of confidential data in accordance with the guidelines of the Central Vigilance Commission.
Due date for filling Annual Vat Returnbin Punjab is once again extended up to 15th Dec 2018.
01/12/2018
All directors are equally responsible for filing income tax return in time, and not the MD alone - Delhi High Court order dated 1.10.2018.
Committee constituted by Sebi is looking to make recommendations that could lead to Indian companies listing their shares directly on stock exchanges outside India and foreign companies accessing Indian stock markets.
All supreme court judgments from 1950 to 2018 (34110 judgments) are available on one touch at
Reserve Bank of India has eased rules to help housing finance companies tide over liquidity tightness ahead of its next board meeting which is expected to thrash out concerns over liquidity squeeze.
29/11/2018
Where no return was filed in compliance of notice issued under section 148, issuing of notice under section 143(2) was not required for making assessment. [2018] 99 taxmann.com 83 (Jammu & Kashmir) HIGH COURT OF JAMMU AND KASHMIR.
Bihar state Legislative Assembly passed the Bihar Goods and Services Tax (Amendment) Bill, 2018 with voice vote amid pandemonium by the opposition over another issue pertaining to "deteriorating" law and order situation.
28/11/2018
Punjab and Haryana High Court has issued notices to the finance ministry, the commerce ministry and GST Council for restricting the benefits of advance authorisation licence for exporters under the GST regime. An advance authorisation licence is issued to allow duty-free import of inputs, which are physically incorporated in export products.
RBI Governor strongly stressed on the need to protect the autonomy of the central bank before a parliamentary panel, but stayed away from any direct criticism of the government.
25/11/2018
Multi Vehicle Option for e-Way bill. The new option has been introduced wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to transshipment place.
MCA has recommended that Advocates Act be amended to allow audit firms to offer legal services, a proposal which is being opposed by law firms.The MCA panel is of the view that development of multi-disciplinary practice (MDP) firms should be facilitated in the country, and to meet this goal, auditors should be allowed to expand their portfolio of services.
India 'â„¢s economic growth will slow down somewhat but remain robust, at close to 7.50% in 2019 and 2020, the Organisation for Economic Cooperation and Development (OECD) has said.
21/11/2018
To prevent tax evasion, the Income Tax department has changed PAN card rules with effect from 5 December making it mandatory for all entities doing business worth over Rs 2.5 lakh in a financial year to have a Permanent Account Number. According to a new notification issued by the Central Board of Direct Taxes, all entities which made financial transactions of at least Rs 2.5 lakh in a financial year must apply for a PAN card till May 31 of the next financial year.
In succession to the ongoing Government drive to strike off defunct companies, it'â„¢s the central bank of the nation which has come to the crease 'resulting in cancellation of approximately 1330 NBFC registrations so far in 2018. The innings of Reserve Bank of India ("RBI") are on rally with 751 cancellations within last one and half month.
The move comes as a punitive measure against all the NBFCs (running in thousands) which have lagged behind/failed to meet the revised net owned fund threshold of Indian Rupees Two Hundred Lacs prescribed by the RBI vide Notification No. DNBR.007/CGM(CDS)-2015 dated 27.03.2015 ('Ëœthe Notification'â„¢) before 01.04.2017. The genesis of the RBI'â„¢s ongoing drive, finds root in the Notification allowing existing NBFCs to carry on the business of non-banking financial institution, if such company achieves 50% of the above-said net owned fund before 01.04.2016 and remaining 50% before 01.04.2017. Though the Notification provided for a timeline to comply with the revised net owned fund requirement, it certainly lacks a provision calling for automatic cancellation of NBFC registrations, in case of delays/ lags. However, in the extant RBI drive, instances have been noticed wherein licenses are cancelled even though the NBFCs had complied (though with a delay) with the revised net owned fund requirements even before the issuance of show cause notices and had supplied corroborative evidences to that effect, to the RBI.
19/11/2018
The Central Information Commission has pulled up the Reserve Bank of India (RBI) for it'â„¢s 'Å“anti-RTI (Right to Information) policy' and asked the banking regulator to divulge the list of willful defaulters of loans within 45 days as ordered by the Supreme Court in its 2015 judgment.
Prime Minister Narendra Modi will chair a meeting with top industrialists and policy makers on Monday to brainstorm on measures required to realise his vision of India breaking into the top 50 in the World Bank's ease of doing business index.
Form MR-2 is likely to be revised on MCA Company Forms w.e.f 20th November, 2018.
Father'â„¢s name not mandatory in PAN application form vide notification no. 82/2018/ G.S.R. 1128(E) dated 19/11/2018.
18/11/2018
National capital jumps closer to business capital in Income Tax
collections.Mumbai, the business capital of the country, still contributes the largest, 29%, of total income tax revenues, but its share has been falling. Delhi, the second-largest contributor to the tax kitty, saw collections rising 45% from April to November 13 this year over the same period in 2017. Collections in Mumbai rose only 5%.
GST audit nears, many companies and banks fear they will not be able to comply with separate audits of all the states by the end of the year as required by the GST framework because they do not reconcile their financial results with state wise returns
Kerala High Court has ruled that any GST mistakenly paid under one head can be adjusted under the correct head. While noting that it sees no difficulty for the tax authorities to allow the petitioner'â„¢s request and get the amount transferred from the head 'ËœS-GST'â„¢ to 'ËœI-GST'â„¢, the court said it is inequitable for the authorities to let the petitioner suffer.
15/11/2018
The Income Tax Department is "chasing" 80,000 cases where people have not filed their returns post-demonetisation, despite the taxman sending them notices to do so, a senior official said on Wednesday.
Over 2 lakh assessees have opted out of the GST registration as their turnover is below the prescribed threshold. This will benefit both the taxpayers and the GST Network, the IT back-bone of the new indirect tax regime.
The Central Government has notified the NAFRA: National Financial Reporting Authority Rules, 2018 on the 13th of November 2018.
13/11/2018
Sebi ordered CRAs to analyse deterioration in the liquidity conditions of an issuer, while monitoring its repayment schedules and taking into account any asset-liability mismatches. The regulator also said CRAs should disclose parameters such as liquid investments or cash balances, access to any unutilised credit lines and adequacy of cash flows in a specific section on liquidity.
RBI will inject Rs. 12,000 crore into the market by purchasing government securities on November 15, 2018. The decision comes amid concerns of a liquidity crisis in the economy after the financial services company IL&FS reported defaults in September.
11/11/2018
Gst Clarifications--
In case of Sale of under construction property, GST is applicable if part of the consideration is received before EARLIER of Completion Certificate Date OR Possession Date.
In case of Sale of Capital Goods, provisions of Section 18 will get triggered. The Tax payable shall be HIGHER OF Tax Charged on Sale OR ITC taken (minus) 5% allowance for per quarter or part quarter use.
In case of Second Hand Business Vehicle Sale, Value will be taken as (Sale Price " WDV), Rate shall be taken @ 18% (in case of >=1200cc Vehicles) and @ 12% (Other Vehicles).
10/11/2018
RESERVATION TO MSMEs:
Ministry of MSME has notified that CG and PSUs have to procure 25% of the total goods or services from MSMEs. Further, out of the above 25%, 3% shall be from MSMEs owned by Women.
SHIFTING OF POWERS UNDER COMPANIES ACT:
Application for opting financial year different from 'Å“ending 31st March' will now be made by foreign subsidiary to CG instead of NCLT.
Alteration of AOA for conversion of Public Company into Private Company will now require CG Approval instead of NCLT.
09/11/2018
AAR cannot decide eligibility to claim Transitional Input Tax credit. Case Name : In re NSL Mining Resources India Private Limited (GST AAR Andhra Pradesh)
Reserve Bank of India is likely to establish an ombudsman for digital payments by March to take the load off the increasing number of complaints currently being handled by the banking ombudsman, said two senior bankers with knowledge of the matter.
08/11/2018
Vehicle owners to pay 18% under GST on pollution check
Vehicle owners will have to pay a GST of 18 per cent to get pollution certificate for their vehicles, the Authority for Advance Ruling (AAR) has Said
Two crore Indians file returns but pay zero income tax
As many as 2.02 crore individuals filed income-tax returns in 2017-18 declaring their income, but paid zero tax since they are not in the taxable income bracket yet
07/11/2018
Gujrat High Court decided that Unsecured loan/ Gifts to be added in Income of Assessee if paying capacity of giver is not proved: Sitaram Ramchanddas Patel Vs ITO.
CBIC exempt supply of Goods and Services from PSU to PSU from applicability of provisions relating to TDS vide Notification No. 61/2018 " Central Tax Dated 5th November, 2018.
GST is applicable of toll reimbursement charges collected in course of providing a service : AAR
Finance ministry has notified annual tax return forms for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during 2017-18 fiscal have to be provided in a consolidated manner. The ministry has notified annual return form for normal taxpayers (GSTR-9) and for composition taxpayers (GSTR-9A). The last date for filing the annual return forms is December 31.
04/11/2018
US revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi.
Reserve Bank has relaxed norms for the fire audit of currency chests allowing banks to get it done from approved agencies in case of shortage of staff at district fire offices.
03/11/2018
STAMP PAPERS DO NOT HAVE ANY EXPIRY PERIOD BEING USED FOR A DOCUMENT. Supreme Court of India held that that the Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper.
India climbed another 23 points in the World Bank'â„¢s ease of doing business ranking to 77th place, becoming the top ranked country in South Asia for the first time and third among the BRICS.
02/11/2018
Prime Minister Narendra Modi on Friday launched a national effort to make finance available to small businesses swiftly and without hassle and to develop their market at a time many are complaining of a liquidity crunch.
The 'Ëœmicro, small and medium enterprise (MSME) support and outreach'â„¢ programme seeks to grant quick access to credit at attractive terms. Loan requests for up to Rs 1 crore from small businesses will be approved in principle in 59 minutes. Those businesses which are registered for goods and services tax (GST) will get a 2% subsidy on interest. Exporters will get a 5% interest rate subvention, up from 3% now, on pre- and post-shipment credit.
24/10/2018
CBDT Data FY 14-17: Correlate taxpayers rise by nearly 70%, returns filed rise by 80%, gross income up by 67% to Rs 44.9 lakh crore between FY14 and FY17 (much higher than the nominal GDP growth of 36% during the period
23/10/2018
Income Tax Department has launched a major operation to investigate cases of illegal funds and properties stashed abroad by Indians looking to invoke the new anti-black money law for strict criminal action in many such cases.
Gujarat enforcement branch of the State GST department has unearthed a bogus billing scam for edible and non-edible oil to the tune of Rs 1,000 crore. ITC benefit worth Rs 58 crore has been illegally claimed by several culprits.
18/10/2018
SEBI is considering seeking powers from the government to intercept calls and electronic communications of those suspected of serious economic offences like insider trading.
RBI issued guidelines for interoperability of e-wallets, which will allow transfer of money from one wallet to another. While the RBI, in its master direction in December 2017, had said it would enable full interoperability, the industry was awaiting the final rules
16/10/2018
20th October 2018 is the last date to claim the GST for claiming Purchase credit up to march 2018, please check the following:- Check all claim of ITC purchase of 2017-18 has been taken.
Check GSTR 2A: Whether any Expenses or purchase remain to be allocated for GST like bank charges, Flight Exp. Whether any purchase still to be remain entered. Reconcile the balance of all creditor up to 2017-18 to account the differences in balances.
Change for composition dealer GSTR 4 returns:-Filing GSTR 4 for July to September quarter need to be filed also with Purchase which are exempt, taxable and unregistered and also the reverse charge supplies if any.
E-Way bill: The new option has been introduced wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to trans shipment place
13/10/2018
Private banks that are being charged GST on transactions undertaken by their business correspondents are starting to increase their charges on remittances. At least two large private sector lenders in the domestic money remittance business have increased charges by at least 20 basis points.
Govt raised tariffs on certain telecom equipment and components by up to 20%, in its efforts to rein in the widening current account deficit (CAD). latest set of imports includes equipment used for industrial use as well as a few components for mobile devices.
11/10/2018
Sebi asked depository participants to inform on monthly basis about the average time taken to provide the number of foreign portfolio investors (FPI) applications received and the average time taken in processing of such applications during the immediate preceding month to by fifth working day of every month, in a prescribed format.
RBI will stick to its data-localisation directive and the October 15 deadline to comply with it, the central bank strongly communicated in a meeting with payments services providers. Out of 80 payments services providers that were told to store data locally, and not mirror it outside India, 64 said they were ready with local data storage.
09/10/2018
A cup of tea with the state governor, priority check-in at the airport, passports on priority, dedicated toll lanes, airport lounge access '†these are some of the rewards that could be offered to exemplary taxpayers.
The government is looking to put in place an incentive programme to reward and recognise honest taxpayers to encourage a culture of compliance. A committee has been set up under Central Board of Direct Taxes (CBDT) to draw up the scheme.
08/10/2018
MCA notified Form RC-1 vide Companies (Authorised to Register) Second Amendment Rules, 2018, dated 5th July 2018 would be available for filing purposes w.e.f 9th October 2018. Web-service RUN and SPICe form are also likely to be revised due to the impact of introduction of URC-1 form.
Woos foreign RBI investors with new relationship terms for a commitment of staying invested a minimum three years in local debt from them. In exchange, it has offered unbridled access to local derivatives market and its own liquidity facilities.
UIDAI has said that the Supreme Court order restricting use of Aadhaar will have no bearing on enrolment and update services being carried out at banks, post offices and government premises. The move comes as service providers may still use offline verification tools that leverage the unique ID without authentication.
03/10/2018
Tightening the norms for issuance of e-way bill, the GST Network has made it mandatory for businesses and transporters to mention PIN codes of places of loading and unloading of consignments.
Quoting of PIN codes, according to officials, will help in calculating the correct distance and determine the validity of the electronic way or e-way bill, which is used by businesses to transport goods worth over Rs 50,000 both within and outside a state.
So far, businesses and transporters are required to broadly mention the distance and place of loading and unloading of consignments for generating e-way bill. As the validity of the e-way bill depends upon the distance mentioned by the businesses, it was feared that this could lead to tax evasion by transporters making multiple trips on the basis of same e-way bill.
The validity of the e-way bill is one day if the distance to be covered is less than 100 km. For every additional 100 kms or part thereof, the validity of the bill goes up by one day. Under the revised procedures for obtaining e-way bill, the GSTN has introduced the facility of auto population of state name based on the PIN code entered at consignor or consignee addresses, an official statement said Wednesday.
The move would further smoothen the experience of users generating e- way bill, the Goods and Services Network (GSTN) said. Another new feature now available on the e-way bill portal now alerts the generator of the e-way bill through a pop up and SMS message, in case the total invoice value entered by them is very high, to avoid making mistake, GSTN said.
01/10/2018
Companies may have to show ledgers for claiming GST credit of over Rs 25 lakh
Companies that availed of more than Rs 25 lakh credit under GST regime in lieu of levies paid under the previous system will soon have to give details of their purchase ledgers for six months
SBI halves daily ATM cash withdrawal limit to Rs 20,000
The country'â„¢s largest lender, State Bank of India (SBI), has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000
Govt sets up office of GST Commissioner (Investigation) to deal with tax evasion
The revenue department has created the office of Commissioner GST (Investigation) to deal exclusively with enforcement issues like search, seizure and arrest, as it looks to crackdown on tax evaders
28/09/2018
Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with transitional plan.
The Securities and Exchange Board of India (Sebi) has sent letters to mutual funds seeking details about their exposure to all NBFCs and housing finance companies, regulatory and industry sources said.
Finance Minister launched a transformative initiative in MSME credit space. The webportal will enable in principle approval for MSME loans up to Rs. 1 crore within 59 minutes from SIDBI and 5 Public Sector Banks (PSBs).
CBDT notifies Ex-Servicemen Contributory Health Scheme for purpose of section 80D of the Income Tax Act, 1961 vide notification number 50/2018 dated 26th September, 2018
25/09/2018
The Government has made some new enhancements in the E-Way Bill (EWB) generation form and is being released on 1st of Oct. 2018.
A document has been released by the Government to communicate the taxpayers and transporters the latest changes with screenshots and make them understand and prepare them while generating the E-Way Bills from 1st Oct. 2018.
Following are the enhancements done in the E-Way Bill generation
Form:
Display of only relevant document types in 'Å“Document Type' drop-down list based on the selected Transaction 'Å“Supply Type' and 'Å“Sub Type' by the taxpayers.
Auto-population of state name based on the pin code entered at consignor and consignee addresses.
Standard rates for tax are provided in the drop-down list for selection based on the type (intrastate/inter-state) transactions.
Additional fields for 'Å“CESS Non Advol Amount' & 'Å“Other Value' have been introduced to enter CESS Non Advol amount and any other charges (+/-) written in invoice.
Alerting the generator of the E-Way Bill through SMS message, in case the total invoice value is more than Rs. 10 Crores.
Transporter ID is made compulsory for generating Part-A slip.
20/09/2018
Amazon, Google, Apple and other foreign companies operating in the ecommerce space will have to register themselves for GST in all the states in the next 10-12 days. The government has said ecommerce companies need to collect tax at source from October 1.
SEBI announced changes to the composition of rating committees at credit rating agencies (CRAs). Going ahead, if an issuer requests for a review of the ratings provided to their instrument, the majority of the rating committee members will have to be different than those who had assigned the rating earlier. Also, at least a third of the rating committee members will have to be independent.
19/09/2018 ICAI has further requested CBDT to extend time for submission of Tax Audit Reports and related returns from 30th September, 2018 to 31st October, 2018 as CBDT has not followed Norms of Earlier Years of discussing Important Changes in Tax Audit Report with ICAI, there was Constant changes in Utilities relating to Tax Audit Forms, Delay in release of utilities and Issue in utility of ITR Form No. 5.
Government has notified the GSTR-9C form for annual GST audit under which every taxpayer above Rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit.
Gujarat High Court struck down provisions of the GST law that forbid transition of excise duty credits on purchases prior to June 30, 2016. The GST law did not allow credit of invoices that were more than one year old i.e., invoices which were dated prior to June 30, 2016.
16/09/2018 Now search by PAN will fetch all the GSTINs registered against the entered PAN in different States/ UT'â„¢s, along with status of registration in a tabular format. On clicking of GSTIN hyperlink, taxpayer details will be displayed.
Around 22.5 crore e-way bills have been generated across India till September 13 since the new electronic billing system was introduced on April 1. The e-way bill system kicked off as part of the new GST regime for transporting goods worth >Rs 50,000.
MCA: last date for filing form DIR-3 KYC without fee has expired on 15th Sep 2018. The process of deactivating the non-compliant DINs is in progress and is likely to be completed by 17th September 2018. form DIR-3 KYC will not be available for filing during 16th Sept 2018 to 17th Sept2018). 21 lakhs Directors failed to file KYC for DIR3.
RBI stepped up its intervention this week Foreign exchange reserves fell below $400 billion, for the first time since November 11, 2017, in the first week of September. As on September 7, foreign exchange reserves stood at $399.28 billion.
12/09/2018
National Anti Profiteering Authority (NAA) ruled that suppliers will be liable to pay penalty for not passing the benefits of GST rate reduction on sale of goods in a case against Jaipur-based Sharma Trading Company indulged in profiteering in contravention of Sec 171 of CGST Act.
SEBI is looking at including NRIs in the foreign portfolio investor'â„¢s quota. Sources said the regulator had written to the central government, seeking its opinion on this. The move could open a new source for foreign inflows into the country, as NRIs are currently not big investors because of regulatory curbs.
All unlisted public companies have to issue shares in demat form mandatorily with effect from 2nd October 2018. Private limited companies, small companies and opc companises can still issue shares in physical form.
Global private equity (PE) funds are likely to be among those most affected by the beneficial ownership norms notified by MCA u/s 90 of the Companies Act, 2013. According to the new rules, a company can suspend control rights on its shares if the PE fund does not disclose the beneficial owner.
10/09/2018
GSTR-1 Time limit for furnishing the details of outward supplies has been extended for the months from July, 2017 to Sept, 2018, till the 31st October, 2018 and for the months from October, 2018 to March, 2019 till the eleventh day of the succeeding month.
The annual return of GST for the period 01.07.2017 to 31.03.2018 which is required to be filed along with statutory GST audit report till 31.12.2018, has been notified by the Government.
GST Annual Return GSTR-9 for Regular assessees & GSTR-9A for Composition ones notified. Notification 39/2018 Central Tax of 04.09.2018.
Rajasthan Govt announced a four-per cent reduction in VAT on petrol and diesel, which will reduce their prices by Rs 2.5 per liter in the state.
September is crucial for taxpayers under the new GST regime, as it will be the final month for taxpayers to claim credit for invoices issued in 2017-18 as well as to rectify errors in their tax return forms for the year.
05/09/2018
GST Annual Return GSTR-9 for Regular assessees & GSTR-9A for Composition ones notified. Notification 39/2018 Central Tax of 4.9.18.
Separate delivery challans to be issued for goods sent in batches or lots.
ITC can be availed basis tax invoice and debit note, if it contains basic information of amount of tax, description of goods / services, GSTIN of supplier and recipient and place of supply.
In case of imported goods, the person in charge of conveyance to carry a copy of bill of entry along with other requisite documents.
Due date for furnishing Form ITC-04 for the period July 2017 to June 2018 extended till September 30, 2018. A new format of Form ITC-04 notified.
Late fee waived for registered persons who submitted but did not file GSTR-3B for the month of October 2017 after generation of ARN.
Waiver of late fee paid for submitting GSTR-6 by ISD (for any tax period) between January 1, 2018 to January 23, 2018.
03/09/2018
Income tax department refunds Rs 750 bn in the first four months of the current financial year, half of what was refunded in the entire FY18.The government might be talking about the surge in filing of Income Tax returns till the August 31 deadline, but direct tax collection data available so far are unlikely to bring a loud cheer.
Search and Seizure- Since no incriminating material was found during the course of search, addition u/s 68 could not be made in the assessment year section 153A on the basis of the statements recorded u/s 132(4) and post-search enquiry. (Favour of Assessee). Moon Beverages Ltd. Vs. Assistant Commissioner of Income Tax (ITAT-Delhi)
Filing of Income Tax Returns registers an upsurge of 71% upto 31st August,2018. compared to the corresponding period in the preceding year. The total number of ITRs e-filed upto 31/08/2018 was 5.42 crore as against 3.17 crore upto 31/08/2017.
A seemingly missing provision from the fine print in the amendments to the CGST law approved by parliament in the monsoon session has led to a furore in the industry. Tax practitioners say the latest changes deny carryforward of credit for cesses, as intended, but credit for service tax has also been done away with.
31/08/2018
Haryana uncovers Rs 100 cr GST fraud, fears multi-state racket
A company whose registered office led sleuths to a barber shop claimed GST refunds of Rs 50 crore through fraudulent returns, leading to a large-scale investigation into what tax officials suspect is a hydra-headed scam with Haryana at the heart of it.
Kerala businesses may face GST notice, penalty on goods destroyed in floods
A directive issued by the indirect tax department or Deputy Commissioner State GST Department Mattancherry tells tax officers to disallow input tax credit for goods destroyed in the floods.
An input tax credit is a mechanism whereby a seller of goods or manufacturer gets the refund of taxes already paid on raw material when he sells the goods.
The prerequisite for an input tax credit is that the goods must be sold and taxes on that collected '†a process which will not be completed in many instances where the goods were destroyed in floods
Provisions for Invoice Matching under the New GST Return Scheme
The new GST return scheme will be based on a new system called '˜uni-directional flow of invoices'˜.
The new uni-directional invoice scheme would require every supplier to upload their transaction-wise invoices to the GSTN portal. This is a one-directional scheme that means all the invoices would be uploaded only by the supplier.
28/08/2018
GST returns comprises of two types of return - periodic and annual returns. Periodic returns are monthly or quarterly returns for reporting transactions during the month or quarter, while annual return is for reporting the summary of the periodic returns filed during a financial year.
As per section 16(4) of the GST Act a registered person shall not be eligible to take adjustment of any input tax credit in respect of any invoice pertaining to FY 2017-18 after the due date of filing GSTR3B for the month of Sept 2018 i.e. 20.10.2018.
SEBI plans 'Ëœon tap'â„¢ bond market which gives corporates the flexibility to time the market, prune cost, and dramatically cut down on paperwork for raising money, will soon be a reality in India.
25/08/2018
Income Tax dept issued 19.6 million new PAN cards during the quarter ending March 2018, taking the total number to over 379 million, as per the official data released.
Central Government hereby exempts all goods, from whole of the Customs Duty & Integrated Tax, which are falling under the First Schedule to the Customs Tariff Act, 1975, when imported into India, and intended for donation for the relief and rehabilitation of the people affected by the recent floods in the State of Kerala.
RBI has directed rating firms to scan bank account details 'capturing the flow of fund in and out of a company '†in assessing its ability to repay loans. Many companies, it is widely believed, would be reluctant to part with such information which are shared with an external agency only when banks or regulators order a forensic audit of a borrower'™s books.
24/08/2018
*FAQ DIR-3*
*Who is required to file DIR-3 KYC form?*
For Financial year 2018-19 - Any person who has been allotted 'Å“Director Identification Number (DIN/DPIN)' on or before 31st March 2018 and the status of such DIN is 'ËœApproved'â„¢, needs to file form DIR-3 KYC to update KYC details in the system on or before 15th September 2018.
For Financial year 2019-20 onwards - Every Director who has been allotted DIN on or before the end of the financial year, and whose DIN status is 'ËœApproved'â„¢, would be mandatorily required to file form DIR-3 KYC before 30th April of the immediately next financial year.
After expiry of the respective due dates, system will mark all non-compliant DINs against which DIR-3 KYC form has not been filed as 'ËœDeactivated'â„¢.
*Which details are required to be filled in the form?*
Name (as per PAN database), Father'â„¢s Name (as per PAN database), 'Å“Date of Birth (DoB)' (as per PAN database), PAN Number (mandatory for citizens of India),Personal Mobile number and Personal Email Address and Permanent/ Present address.
Further, Aadhaar is mandatory, if it is assigned. If not, then Voter ID or Passport or Driving Licence shall be attached. Accordingly, copy of any one of the above selected information is to be attached.
*Is it mandatory to enter a unique mobile number and email ID in form DIR-3 KYC?*
Yes. It is mandatory to enter your personal mobile number and personal email ID in the form DIR-3 KYC and the same has to be verified by an OTP process. Further, the mobile number and email ID must be unique such that it is not already linked with some other person in the DIN holders'â„¢ database.
*How does the OTP functionality in DIR-3 KYC work?*
Send OTP button will be enabled only after successful Pre-scrutiny of the form. After successful Pre-scrutiny, user has to click on 'ËœSend OTP'â„¢ button.
*Who are the signatories in DIR-3 KYC form?*
The DIN holder and a professional (CA/CS/CMA) certifying the form are the two signatories in form DIR-3 KYC.
Please note that in case of Citizens of India, the PAN mentioned in the DSC is verified with the PAN mentioned in the form.
In case of foreign nationals, the name in the DSC affixed should match with the name entered in the form. DSCs affixed on the form should be duly registered on the MCA portal.
*File DIR 5 form in case DIN is allotted and not to be used in future or in any other case so that annual filing of DIR 3 will not be mandatory*
Procedure for Filing Form DIR-5
Any person wishing to surrender a DIN can file Form DIR-5 with the MCA. In Form DIR-5 the following information must be provided by the applicant:
Any DIN Number held by the applicant
Reason for surrender of DIN
Whether DIN holder is retaining any DIN
Number of DIN(s) being surrendered by the applicant
DIN Number to be surrendered
Digital signature of the person surrendering the DIN.
In the following cases, the another related person can also sign Form DIR-:
Form DIR-5 can also be filed or digitally signed by a relation of the person if the DIN holder has passed away or has been declared as a person of unsound mind by a competent court or the person has been adjudicated as insolvent.
20/08/2018
Recent updates on Company Law from 1st august 2018 to 14th august 2018
- Form ADT-1 has been revised by Ministry of Corporate Affairs with effect from 3rd August, 2018.
-Form DIR3-KYC has been revised by Ministry of Corporate Affairs with effect from 4th August 2018.
Form DIR3-KYC has been revised and now Aadhaar Card shall be mandatory only for 'Å“Indian Residents' with effect from 9th August 2018.
-There is a major change in Section 42 of the Companies Act, 2013 which states that, whenever share application money has been received by the company, in case of issue of shares through private placement, such amount of money shall not be utilised until the shares are allotted and the return of allotment (in Form PAS-3) has been filed with ROC. Time period for filing of return of allotment has been reduced to 15 days from 30 days with effect from 7th August 2018.
-The Central Government appoints 7th August 2018 as the date on which provisions of Section 10 of the Companies (Amendment) Act 2017 has been notified.
18/08/2018
Income Tax collection in the country stood at a record Rs 10.03 lakh crore during 2017-18: CBDT. A record number of 6.92 crore I-T returns were filed, which was 1.31 crore more than 5.61 crore returns filed in 2016-17.
The Maharashtra Appellate Authority for Advance Ruling for Goods and Services Tax (AAAR-GST) has ruled that 'Ëœmoney'â„¢ is not 'Ëœgoods'â„¢. Accordingly, it decided against giving Input Tax Credit (ITC) to CMS Info Systems on purchase of motor vehicles, that is, cash-carrying vans that are purchased and used for cash management business and supplied, post usage, as scrap.
SEBI is looking at the prospect of allowing mutual funds to make use of covered calls as part of their equity strategy. Covered calls are an options strategy where an investor holds a long position in an asset and writes (sells) call options (having the right but no obligation to buy) on that same asset to generate an income stream.
15/08/2018
Bombay High Court ordered the CBDT to provide clarity on the issue of STT levy on physically-settled derivatives. The court on heard an appeal filed by Anmi against the NSE after the bourse decided to levy the STT at 0.1% on derivative contracts of stocks that are physically settled.
Salary for services provided by the head office of a company to its branch offices in other states will attract 18% GST. According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law.
SEBI may soon ask retail investors in the stock and commodity markets to submit a net worth certificate to their brokers. The aim is to keep a check on retail investors' trading limits, which cannot exceed their level of income.
11/08/2018
Government clarifies GST rates of over a dozen products
The finance ministry clarified that fortified milk as well as milk for the public when not served in sealed bottles are exempt from tax, while beet and cane sugar will attract 5% tax. It also said that normal human plasma is taxed at 5% while plasma products are taxed at 12%. Baby wipes laced with perfumes, cosmetics and soap attract 18% GST. Parts of marine engines used in fishing boats are taxed at 5%.
GST slabs to be slashed? Consumers may get poll 2019 bonanza
Sources aware of the development have informed Zee Business that the finance ministry is in favour of merging the two slabs of 12 per cent and 18 per cent. The two slabs will be merged to bring a new GST tax slab of 14-15 per cent. With this merger, the five slab structure will decrease to a four slab structure of 0 per cent, 5 per cent, 14-15 per cent and 28 per cent. Presently, there are five GST slabs of 0, 5, 12, 18 and 28 per cent.
Lok Sabha approves changes: GST cess surplus can now be shared
In a move that would partly address the goods and services tax (GST) revenue deficit for the Centre and come in aid of states worried over stagnant growth in their own tax (non-GST) revenue, the Lok Sabha on Thursday approved changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year.
09/08/2018
Lok Sabha passes bills to amend GST laws
The Lok Sabha on Thursday passed four bills amending laws relating to the Goods and Services Tax (GST). The move aims at plugging loopholes in existing laws and reducing the compliance burden for taxpayers. The Central GST (Amendment) Bill, 2018, Integrated GST (Amendment) Bill, 2018, The Union Territory GST (Amendment) Bill, 2018 and the GST (Compensation to States) Amendment Bill, 2018 got the Lower House'â„¢s nod.
Mere deposit of goods to custodian not liable for GST: AAR
In a ruling that may have implications for gold mortgages, gold bonds and commodities derivative trading, Karnataka Authority for Advance Rulings has held that deposit of goods to a custodian with obligation to return on submission of electronic receipts would not be liable for GST.
Reduce GST on pan masala to 5% from existing 18%: Karnataka BJP unit asks Centre
Karnataka BJP unit on Thursday urged the Centre to bring down the GST on pan masala to 5 percent from the existing 18 percent and also hike the minimum import price (MIP) of arecanut to Rs 300/kg to save domestic growers reeling under the crisis due to lower prices.
07/08/2018
SEBI has decided to discontinue with the registration of Sub-Brokers as a market intermediary. The registered Sub-Brokers shall have time till March 31, 2019 in order to migrate to act as an AP and / or Trading Member (TM).
Govt. is likely to hike import duty on about 300 textile products to boost domestic manufacturing and create employment opportunities, sources said. Foreign direct investment norms for the sector may also be relaxed. The duties could be enhanced to 20 per cent from the current level of 5-10 %.
Prime Minister On August 21 will launch India Post Payments Bank (IPPB) that will have at least one branch in every district and focus on financial in rural areas. Two branches of the bank are already operational. Rest of the 648 branches will be launched across country in ever district.
The Ministry of Law & Justice has notified the Specific Relief (Amendment) Act, 2018, shall come into force on such date as the Central Government may, by notification in the Official Gazette, notify.
Govt. has extended e-visa facility for citizens of 165 countries at 25 airports and five seaports; the Lok Sabha was informed by Tourism Minister K J Alphons.
06/08/2018
RCM provisions u/s 9(4) of CGST Act, 2017 postponed till 30-Sep-19 vide CGST Notn.No. 22/2018 dated 06/08/2018 and IGST Notn. No. 23/2018 dated 06/08/2018
However,RCM u/s 9(3) will be continued to be levied.
29/07/2018
MCA NEWS & IMPORTANT UPDATE
Companies (Significant Beneficial Ownership) Rules, 2018:
Every Individual holding 10% or more beneficial interest in the share capital of the company shall file a declaration in Form No. BEN-1 to the company within 90 days from commencement such rules and within 30 days in case of any change in his significant beneficial ownership. Therefore the due date of filing form BEN-1 is on or before 12th Sep 2018.
Thereafter, the company shall file a return in Form No. BEN-2 with the ROC, within 30 days from the date of receipt of BEN-1. Therefore the due date of filing form BEN-2 is on or before 11th Oct 2018.
Meaning of Significant Beneficial Owner
'ËœSignificant Beneficial Ownership'â„¢ in case of member of the Company is not an individual or natural person:
(i) where the member is a company, the significant beneficial owner is the natural person, who holds not less than 10%. share capital of the company or who exercises significant influence or control in the company through other means;
(ii) where the member is a partnership firm, the significant beneficial owner is the natural person, who holds not less than 10% of capital or has entitlement of not less than ten per cent. of profits of the partnership;
(iii) where no natural person is identified under (i) or (ii), the significant beneficial owner is the relevant natural person who holds the position of senior managing official;
(iv) where the member is a trust (through trustee), the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with not less than 10% interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.
28/07/2018
CBIC Issues Various Notifications Dated 26-07-2018.
Notifications - Central Tax (Rate)
*Revised CGST rates on various services WEF 27th of July, 2018*
Notification No. 13/2018-Central Tax (Rate)
*CBIC notifies CGST exemption on certain services from 27th July, 2018*
Notification No. 14/2018-Central Tax (Rate)
*CGST: RCM on services by individual DSAs to banks/ NBFCs wef 27.07.2018*
Notification No. 15/2018-Central Tax (Rate)
*CGST on Services in relation to a function entrusted to a municipality*
Notification No. 16/2018-Central Tax (Rate)
*Composite supply of works contract to Govt- Term 'ËœBusiness'â„¢ clarified*
Notification No. 17/2018-Central Tax (Rate)
*Revised CGST rates on various Goods WEF 27th July, 2018*
Notification No. 18/2018-Central Tax (Rate)
*Changes in List of goods exempt from CGST wef 27.07.2018*
Notification No. 19/2018-Central Tax (Rate)
*CBIC allows Refund of GST credit to fabric manufacturers*
Notification No. 20/2018-Central Tax (Rate)
*Concessional CGST rate on specified handicraft items WEF 27.07.2018*
Notification No. 21/2018-Central Tax (Rate)
*_Notification Integrated Tax (Rate)_*
*IGST rates on various services with effect from 27th July, 2018*
Notification No.14/2018-Integrated Tax (Rate)
*CBIC notifies IGST exemption on certain services from 27th of July, 2018*
Notification No.15/2018-Integrated Tax (Rate)
*RCM on services by individual DSAs to banks/ NBFCs wef 27.07.2018*
Notification No.16/2018-Integrated Tax (Rate)
*IGST on Services in relation to a function entrusted to a municipality*
Notification No.17/2018-Integrated Tax (Rate)
*IGST on Composite supply of works contract to Govt: Term 'ËœBusiness'â„¢ clarified*
Notification No.18/2018-Integrated Tax (Rate)
*Revised IGST rates on various Goods WEF 27th July, 2018*
Notification No.19/2018-Integrated Tax (Rate)
*Changes in List of goods exempt from IGST wef 27.07.2018*
Notification No.20/2018-Integrated Tax (Rate)
*CBIC allows Refund of IGST credit to fabric manufacturers*
Notification No.21/2018-Integrated Tax (Rate)
*Concessional IGST rate on specified handicraft items WEF 27.07.2018*
Notification No.22/2018-Integrated Tax (Rate)
28/07/2018
The Securities Appellate Tribunal (SAT) on Thursday asked the income tax department to provide clarity on applicability of securities transaction tax (STT) on physically-settled derivative contracts.
Central Government has now given effect to the recommendations of GST Council vide various notifications dated July 26, 2018 and all such notifications, unless specifically mentioned, shall be effective from July 27, 2018
The Goods and Service Tax Council would exclusively consider issues related to micro, small and medium enterprises taxpayers at its 29th meeting scheduled for August 4, a finance ministry official said
GST Tribunal (GSTAT) will come into effect soon, providing a higher judicial forum for businesses to redress disputes under the new tax framework. The GST Council approved creation of the tribunal with a national bench in Delhi and three regional benches in Chennai, Kolkata and Mumbai
CBIC has notified that the services supplied by individual Direct Selling Agents (DSAs) to banks/ non-banking financial company (NBFCs) are taxable under Reverse Charge Mechanism (RCM). Notification No. 15/2018
27/07/2018
SEBI proposed measures to provide promoters a say in the price offered to shareholders of companies that are planning to delist from stock exchanges. The proposal is aimed at plugging loopholes in the current delisting method for companies. Issuing a draft paper, Sebi has suggested for a price discovery as per reverse book building (RRB) method, along with considering counter offer of promoter
Cheque bounce law passed in lok sabha on 23.07.18. 20 % immediately to pay to party, 20 % to deposit in court, 100 % to pay with interest if found guilty within two month. Penalty will be charged 20% to 100% for guilty by court
Total number of 9 CGST notifications numbering from 13 to 21 have been issued on 27th July 2018 to give effect to Gst council meeting held on 21st July. Gst rates have been cut apart from defining some services and other exemptions.
26/07/2018
E-commerce companies to face tax audit over GST refund issue : The anti-profiteering authority has ordered audit of major e-commerce companies like Flipkart, Amazon and Snapdeal, to find out whether they have refunded the excess GST collected from the consumers.
SEBI proposed Unified Payments Interface (UPI)-based payments for retail investors investing in IPO. The move will help cut down the time taken between closing of an IPO and listing of the security from current six days to just three days.
Parliament passed the Fugitive Economic Offenders Bill to prevent economic offenders from fleeing the country and evading the legal process. It also gives teeth to the Enforcement Directorate to confiscate the property of fugitive economic offenders
23/07/2018
CBDT Revises Form 3CD: By Notification July 20, 2018
*Following are the Point wise changes*
1. *4* - GSTIN to be mentioned.
2. *19* - Allowance under Section 32AD is to be reported.
3. *24* - Deemed gains under Section 32AD to be reported.
4. *26* - Clause (g) of Section 43B (sum payable to Indian Railways for use of assets) is to be reported.
5. *31* - Cash receipts more than INR 2,00,000 under Section 269ST is to be reported now.
6. *34* - Details with respect to transactions not disclosed in TDS Return/ TCS Return is to be mentioned.
*Point wise Insertions:*
1. *29A* - Advance received on capital asset forfeited to be reported here {Section 56(2)(ix)}.
2. *29B* - Income of gifts exceeding INR 50,000 to be reported here {Section 56(2)(x)}.
3. *30A* - Details about "Primary Adjustments" in transfer pricing to be reported here as per Section 92CE.
4. *30B* - Limitation of Interest deductions for borrowings from a AE upto 30% of EBITDA is to be furnished here.
5. *30C* - Details of Impermissible Avoidance Agreement to be furnished as referred to in Section 96.
6. *36A* - Dividend received under Section 2(22)(e) is required to be reported here.
7. *42* - Details w.r.t. Form 61 (details of no PAN Form 60 received), Form 61A (SFT) and Form 61B (SRA) is to be provided here.
8. *43* - Details w.r.t. CbC Reporting as referred to in Section 286 is required to be reported.
9. *44* - BREAK UP of total expenditure in respect of GST Registered and Unregistered Entities is required to be given.
Notification 33/2018 dated 20.07.2018 (effective from 20.08.2018).
Clarification needed for 20/08.
21/07/2018
*GST Council Updates*
1. Quarterly Returns approved for taxpayers with turnover less than Rs 5cr ( *tax payments to continue on monthly basis*)
2. Sanitary Napkins exempted from GST going forward
3. No decision on 1% sugar cess
4. GST on bamboo flooring reduced to 12%
5. GST on hotels would now be on actual tariff & not declares tariff
6. Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
7. 5% GST ceiling on footwear raised from Rs 500 to Rs 1000
8. GST on paints & varnishes, wall putty cut from 28% to 18%
9. GST on all leather items cut from 28% to 18%
10. GST on consumer electronics - *TV (up to 27"), Washing Machine, Refrigerator, mixer, juicer, grinder* cut from 28% to 18%
11. GST on special purpose vehicles, work truck, trailer cut from 28% to 18%
18/07/2018
The Finance Ministry has appointed Grievance Redressal Officers for processing the complaints/information under the E-Way Bill System.
As per the decision of the GST Council, e-way bill system has been rolled-out in a staggered manner across the country.
E-way bills are getting generated successfully and till 17th July, 2018, more than Thirteen Crore and Fifty Lakh e-way bills have been generated which includes Six Crore and Fifty Lakh E-way bills for Intra-State movement of goods.
Grievance Redressal Officers have been appointed by *both the Central and State Governments (one per state)* under the provisions of e-way bill rules for processing the complaints/information uploaded by taxpayers/transporters regarding detention of their vehicle.
List of these Grievance Redressal Officers with their e mail and contact numbers is published.
(Press Release dated 18/07/2018)
16/07/2018
The govt is likely to retrospectively amend laws governing the GST to deny transitional credit to taxpayers against cesses levied in the earlier indirect tax regime.
The govt has issued guidelines for IGST refunds for goods and services supplied to units in SEZ. The detailed guideline are based on notification/circulars issued by the Finance and Commerce Ministries.
RBI has directed to the Banks that effective from September-15-2018, the Banks shall also mention the name of Purchaser of the Demand Draft/Pay Order/ Banker' Cheques etc. on the Face of such Instruments.
SEBI extends time to collect PAN, bank details of securities holders
The timeline for sending the initial letter by registered or speed post to physical shareholders has been extended to September 30, 2018
13/07/2018
In a bid to reduce discrepancies in the E-Way Bill, the Goods and Services Tax Network (GSTN) is developing a system to automate distance calculation between two postal index number (PIN) codes
The GSTN along with the National Informatics Centre (NIC) has floated a request for proposal (RFP) for the same.
The Allahabad High Court has ruled that the goods cannot be seized for non-filling of Part B of the E-Way Bill transported within a distance of 50kms. The Writ Petition has been filed by the petitioner challenging the seizure order and the consequential penalty notice passed/issued under Section 129(1) and 129(3) of the Act respectively.
Amounts paid as part of the lease premium or biannual or annual payments for a limited/specific period towards acquisition of lease hold rights are not subject to TDS, being capital payments. New Okhla Industrial Development Authority (NOIDA) vs. ACIT (Supreme Court) (S. 194-I).
Multi Vehicle Option for e-Way bill: The new option has been introduced wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to transshipment place.
SEBI has issued circular w.r.t. Discontinuation of acceptance of cash by Stock Brokers from their clients either directly or by way of cash deposit to the bank account of stock broker.
11/07/2018
GST ON EMPLOYER EMPLOYEE RELATIONSHIP
Schedule III of CGST Act includes activities which are not treated as supply of goods or services i.e. GST is not levied on such transaction. One such activity included in the Schedule III 'Å“service by an employee to employer in the course or in relation to employment' is outside the purview of GST.
Analyzing various transaction between employer and employee.
Providing amenities: Providing amenities to employee is a consideration by employer to employee and hence not liable to GST. Example: Food provided to all employees without any charge will not attract GST.
Amenities provided at concessional rate: such transaction is a supply and GST is charged on the same. Example: Food provided to employees at concessional rate and the amount is recovered from their salary is taxable. Such transaction is valued at 'ËœOpen Market'â„¢ for tax purpose.
Allowances: Transport allowance, uniform allowance are part of employment contract therefore liable to GST.
Reimbursement of expenses procured from registered supplier and the GST number of the employer is quoted on the invoice Such transaction is liable to GST and employer is eligible to claim ITC on the same.
Reimbursement of expenses procured from registered supplier and GST number is not quoted: Such transaction is liable to GST. Employer is not liable to pay GST under reverse charge mechanism (RCM) as it is procured from registered dealer.
Gifts: Gifts will be liable to GST only if it exceeds Rs. 50,000 in a year.
Sale at concessional rate: GST will be charged on such transaction. GST will apply even if ITC has not been claimed by the employer on these asset.
09/07/2018
Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in 'ËœApproved'â„¢ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August, 2018. Otherwise LATE FEES PENALTY 5000 FROM 1 SEPTEMBER 2018 AND DIN WILL BE DEACTIVATED.
Documents Required:
1. DSC of Director duly Registered;
2. Self attested PAN card;
3. Self attested Aadhar card with updated Mobile number with UIDAI;
4. Self attested Electricity Bill, Mobile Bill, Bank statement of Director (latest 2 Months) of his/her present address;
5. Latest Passport size photo;
6. DIN declaration cum KYC.
DIR-3 KYC Will be deploy from 10.07.2018.
07/07/2018
*IMPORTANT MCA Update*
Following Rules Notified w.e.f 05/07/2018
MCA had issued circular to file DIR-3 KYC for existing DIN Holders to update their KYC Documents along with unique mobile no and email id.
In respect of this,
DIR -3 KYC will be available on MCA by 10.07.2018 or so. Non-Filing of form after 31st August following consequences
1.attract penalty of ?5000.
2.DIN will be deactivated if not filed
Note-Disqualified Directors also have to file this form
06/07/2018
CBIC Launches GST 'Verify App' to Protect Interest of Consumers. It is an Android App to verify if the person collecting GST from the consumer is eligible to collect it or not & also provides the details of the person collecting GST.
UK'â„¢s Court orders in favour of a Consortium of 13 Indian banks seeking to recover dues from Vijay Mallya. Court also Grants Permission to an Enforcement Officer to enter in his Properties in Hertfordshire, near London and Seize His Possessions
Group of Ministers (GoM), along with a panel of Govt. Officials, will meet on Sunday 8th July, to firm up their view on the possibility of bringing back the liability to pay tax on reverse charge, as well as on the issue of tax discount on digital payments under GST
RBI Ex-Deputy Governor KC Chakrabarty under CBI lens in Rs 41-Crore Loan Default Case of a Delhi-based travel company, Airworth Travels and Tours Private Limited
GST Credits taken by Tech Companies Under Taxman'â„¢s Lens as Dept. is Scrutinising Capital Expenditure incurred by IT and IT Enabled Services Companies suspecting they may have evaded GST
05/07/2018
Income Tax returns filing due date for non-auditable assesses is 30th July 2018. Kindly file it on or before otherwise a penalty will be livable on late filing.
Government has extended the exemption on intrastate and interstate supplies of goods and services or both received by a registered person from any supplier, who is not registered, from whole of the central tax livable under section 9(4) of the CGST Act, 2017 or integrated tax leviable under section 5(4) of IGST Act, 2017 till 30th September 2018.
No e-way bill in respect of movement of goods originating and terminating in the state of Delhi (i.e. intra state movement but without passing through any other state) shall be required where consignment value does not exceed Rs. 1,00,000.
SEBI enhanced the overseas investment limit of alternative investment funds and venture capital funds to USD 750 million from the current USD 500 million. The decision has been taken in consultation with the Reserve Bank of India, the Securities and Exchange Board of India (SEBI) said in a circular.
IBBI amends the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 by a press release dated 4th July, 2018 . Supreme Court of India refused to overturn a RBI ban on lenders from dealing in crypto currencies, a move that effectively outlaws the nascent industry in Asia'â„¢s third-largest economy.
04/07/2018
Govt is looking at creating a centralized Authority for Advance Rulings (AAR) for GST after divergent rulings on identical issues fuelled confusion over applicability and the rate of tax.
CBIC notifies tariff concession on specified goods on Import from specified countries vide Notification No. 50/2018"Customs- seeks to provide the tariff concession to the goods of the description specified in column (3) of the Table hereto annexed and falling under the Chapter.
Govt is unlikely to insist on implementing the reverse charge mechanism, a key anti-evasion measure proposed under GST, on concerns that the rule will adversely impact small businesses while not yielding revenue gains.
Due date for filing GSTR -1 for m/o June 2018 " Applicable for taxpayers with turnover more than 1.50 crore- July 10, 2018.
03/07/2018
A few ways that an audit can help your company:
Identify problems and weaknesses with your accounting system, allowing improvements to be made to eliminate these problems in the future. It might be discovered that the system isn'â„¢t tracking certain transactions correctly. Or maybe you will find errors in payments that need to be corrected.
Uncover fraud, which could potentially include situations where employees or management are stealing money from the company. An auditor will identify discrepancies so that you can eliminate the problem.
Identify poor accounting practices, such as employees who are getting lazy about performing the correct financial tracking steps. It is hard to see these issues unless you can view the overall picture, which is possible with an audit.
Improve tax planning, to ensure that you are ready for tax season and that you are leveraging tax write-offs and benefits as much as possible. By planning ahead, taxes are less stressful and easier to file.
Strengthen the credibility of the company'â„¢s financial records, which is important if you are planning to sell within the next few years. When you have documented information showing the success of your company over multiple years, then it will be easier to prove the financial security of the business.
Regardless of the size of your organization, as well as the type of industry in which your company specializes, an internal audit offers you crucial insights into your computing system'™s overall functionality, potential security risks and various possible solutions available. As you probably know, complacency in today'™s world of ever-evolving technology '†where cyber criminals seem to adapt in lock-step '†can result in damaging consequences that include employee fraud, wasted resources and government fines leveled against your company. So, you might need to ignore your intuition telling you that your organization is safe because it is smaller or not well-known in your industry, which makes sense on the surface, the truth is that all businesses are susceptible to risks thanks to inhabiting the same digital world as motivated and unscrupulous cyber criminals.
02/07/2018
CBDT clarified that foreign companies that have their place of effective management (POEM) in India will be taxed at 40%, plus applicable surcharge and cess.
MCA notified that Every Director (including Disqualified Director) who has been allotted DIN on or before 31st March, 2018 and whose DIN is in 'ËœApproved'â„¢ status, would be mandatorily required to file form DIR-3 KYC on or before 31st August, 2018.
RBI Enforcement action framework in respect of statutory auditors for the lapses in the statutory audit of commercial banks. - vide Press Release: 2017-2018/3425 - (29/06/2018)
RBI Due Date of filing of Return on Foreign Liabilities and Assets (FLA) is 15th July, 2018.
North Delhi Municipal Corporation has extended the last date for payment of property tax and availing the rebate of 15% from June 30 to July 15.
01/07/2018
Important Due Dates in July 2018
07.07.2018
" Due date for Payment of Tax deducted/Collected (TDS/TCS) in the month of June-2018. However, all sum deducted/collected by an office of the Government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan.
10.07.2018
" Monthly GST return in GSTR-1 for June-2018 for registered person with aggregate turnover exceeding Rs.1.50 Cr.
15.07.2018
" PF for June -2018
" Monthly ESIC for June -2018
" Upload the declarations received from recipients in Form No. 15G/15H during the quarter ending June, 2018.
" Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2018
" Quarterly statement of TCS deposited for the quarter ending 30 June, 2018
" Furnishing of Form No. 24G (TDS) by an office of the Government where TDS for the month of June -2018 has been paid without the production of Challan.
" Due date for issue of TDS Certificate for tax deducted under Section194-IA (TDS on Immovable property) in the month of June, 2018
" Due date for issue of TDS Certificate for tax deducted under section194-IB (TDS on Certain Rent payment) in the month of June, 2018
18.07.2018
" Quarterly Return in GSTR-4 for the Quarter ended June -2018 for composition Dealer.
20.07.2018
" Monthly Summary Return in GSTR-3B for the month of June -2018
30.07.2018
" Due date for e-filing of a statement (in Form No. 3CEK) by an eligible investment fund under section 9A in respect of its activities in financial year 2017-18.
" Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2018
" Challan cum Statement with regard to TDS u/s 194IA (TDS on Immovable property) for June -2018
" Challan cum Statement with regard to TDS u/s 194IB (TDS on Certain Rent payment) for June -2018
31.07.2018
" Furnishing the return by an Input Service Distributor (GSTR-6), for the months of July 2017-June 2018
" Quarterly GST return in GSTR-1 for the Quarter ended June -2018 for the dealer if turnover is not exceeding Rs.1.50 Cr.
" Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2018
" Statement in Form No.10 to be furnished to accumulate income for future application under section 10(21) or 11(2) (if the assessee is required to submit return of income on or before July 31, 2018)
" Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2018)
" Application in Form 9A for exercising the option available under Explanation to section 11(1) to apply income of previous year in the next year or in future (if the assessee is required to submit return of income on or before July 31, 2018)
" Quarterly statement of TDS deposited for the quarter ending June 30, 2018
" Due date for claiming foreign tax credit, upload statement of foreign income offered for tax for the previous year 2017-18 and of foreign tax deducted or paid on such income in Form No. 67 (If the assessee is required to submit return of income on or before July 31, 2018).
" Income Tax Return for the assessment year 2018-19 for all assessee other than (a) corporate-assessee or (b) Non-corporate assessee (whose books of account are required to be audited) or (c) Working partner of a firm whose accounts are required to be audited or (d) An assessee who is required to furnish a report under section 92E.
01/07/2018
*E way Bill* Amount Limit for Transportation of Goods *within Maharashtra has been *increased from rs.50000/- to rs.100000/-* from 1st july 2018 ...
By Notification No 15E/2018
Due date for Adhaar linking to PAN extended up to 31st MARCH 2019 vide order u/s 119 of I T ACT dated 30/06/2018
30/06/2018
New GST return forms would be introduced from January 1 after successful beta-testing of the software, Finance Secretary Hasmukh Adhia said. He said wrong input tax credit claims are a potential area of evasion in the GST regime and one-to-one invoice matching is the key to checking evasion.
CBIC extends RCM relaxation by 3 months upto 30th September 2018 , Notification issued.
MCA would be conducting KYC of all Directors of all companies annually through a new eform viz. DIR-3 KYC. Every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in 'ËœApproved'â„¢ status, would be mandatorily required to file form DIR-3 KYC on or before 31 Aug,2018 .
29/06/2018
*MCA NEWS & IMPORTANT UPDATES*
As part of updating its registry, *MCA would be conducting KYC* of all Directors of all companies annually through a new eform viz. *DIR-3 KYC*
to be notified and deployed shortly. Accordingly, every Director who has been allotted DIN on or before 31st March, 2018 and whose DIN is in 'ËœApproved'â„¢ status, would be *mandatorily* required to file form DIR-3 KYC
*on or before 31st August,2018*. While filing the form,the *_Unique Personal Mobile Number and Personal Email ID_* would have to be mandatorily indicated and would be *_duly verified by One Time Password(OTP)_*. The form should be filed by every Director using his *_own DSC_* and should be duly certified by a practicing professional (CA/CS/CMA).
Filing of DIR-3 KYC would be mandatory for Disqualified Directors also.
*_After expiry of the due date by which the KYC form is to be filed,the MCA21 system will mark all approved DINs (allotted on or before 31st March 2018) against which DIR-3 KYC form has not been filed as 'ËœDeactivated'â„¢_* with reason as 'ËœNon-filing of DIR-3 KYC'â„¢.
After the due date filing of DIR-3 KYC in respect of such deactivated DINs shall be allowed upon payment of a specified fee only, without prejudice to any other action that may be taken.
28/06/2018
The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end.
CBEC has issued a circular to all its officers and Commissionerate for Non Initiation / Delay in recovery Proceedings as per the Audit Reports of CAG of India.
MCA has issued notification that additional fee @ Rs.100/- per day, after 30th June 2018 shall become payable in respect of the annual filing forms (MGT-7 (form for annual return), AoC-4 (Form for balance sheet and profit and loss account), in addition to the existing if filed after due date.
Holders of shares in listed companies now face a December deadline to convert them into dematerialized form if they have to transfer or sell them. About 2.3 per cent of India'â„¢s $2-trillion plus market capitalization is still held in the form of physical stock.
SBI has filed an appeal in the GST tribunal against a tax demand of Rs. 210 crore for providing various services in the 2013-16 period. The case pertains to tax liability on services provided by SEBI to entities such as stock exchanges, their members, brokers.
RBI financial stability report released that Gross NPA ratio of banks to rise to 12.2% by March 2019 if economic conditions stay the same. Bad loans at Indian banks, especially those controlled by the government, will increase further in the year to March 31.
DGFT has notified the office address of DGFT and its Regional Authorities and their Jurisdiction and Private SEZs under the Foreign Trade Policy, 2015-20
27/06/2018
Income-tax department has attached over 1,500 unaccounted properties worth Rs 43 billion across the country within one and a half years of the introduction of the revised benami legislation. Jaipur and Mumbai top the list, with attachments of 200 each.
TDS, TCS and Reverse Charge Mechanism under Gst provisions kept on hold till 30th September.
Indirect tax department has issued notices to companies that added cash balance lying in their personal ledger account (PLA) to the transitional credit when the tax system moved to GST, triggering panic among such companies.
SEBI issues List of Defaulters as on 31.03.2018 For Non-Payment of Penalty imposed by SEBI through Orders Passed Upto 31.12.2017.
RBI has come out with draft guidelines on constituting a board of management (BoM) in addition to the board of directors, for urban cooperative banks (UCBs), with the aim of strengthening the governance in these banks. The BoM will be responsible for credit, risk and liquidity management.
MCA has taken an initiative to introduce a chapter on Cross-Border Insolvency within the Insolvency & Bankruptcy Code, 2016 to provide a comprehensive legal framework, considering the fact that corporates transact businesses in more than one jurisdiction and also have assets across many jurisdictions.
26/06/2018
Just in: The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September-end.
Notifications will be issued shortly
25/06/2018
*SUGGESTIVE WAYS TO DEAL ROC LATEST NOTICE STK-5*
The Companies which have not filed their Financial Statement (AOC-4 / 23AC, ACA) or Annual Return (MGT-7) for a period of two immediately preceding financial year shall receive the Notice in form STK-5. Before filing of reply to ROC Notice, Go through the three vital points to address the said notice. Check the filing of financial statement or Annual return , Company is operating or not and want to continue the company or want to strike off.
1. *Generally, ROC has issued notice to only those companies, who have not filed their Financial Statement or Annual return for preceding two financial years*.
{In this case - If the notice has been sent mistakenly, write them back with the details and attach challan.}
2.*OPERATIONAL COMPANY & PROMOTERS WANT TO CONTINUE*
{In this case, Before reply to ROC, complete the annual filing of the Company and then reply to ROC that, our Company is working Company and our company inadvertently fails to file Financial Statement and Annual Return. Which we have filed with additional fees (copy of challan is attached).}
3. *NO OPERATIONS BUT WANT TO CONTINUE THE COMPANY*
{In this case, Before reply to ROC, complete the annual filing of the Company and then reply to ROC that, our Company is working company, however there are not revenue or profit in our company still we are trying for business in future and our company inadvertently fails to file Financial Statement and Annual Return. Which we have filed with additional fees. Annexed copy of challan is attached.
4. *NO OPERATIONS AND DOESN'â„¢T WANT TO CONTINUE THE COMPANY*
{In this case following shall be process}
FIRST: Complete the Annual Filing of Company (by filing of AOC-4 and MGT-7 with ROC by paying additional fees).
SECOND: File e-form STK-2 for strike off of Company with the relevant attachments.
THIRD: Reply to ROC, that we have completed our pending annual filing with additional fees, Company don'â„¢t want to continue and e-form STK-2 has been filed for strike off of Company. (attached copy of all the challans of annual filing forms and STK-2)
5. *IMPLICATION OF NON REPLY OF ROC NOTICE SKT-5*
i. Name of Company shall be removed from the record of ROC.
ii. Bank account of Company shall be ceased.
iii. Directors of Company shall be disqualified.
iv. DIN of Directors shall be ceased.
v. Directors shall not be allowed to continue as directors in other companies.
vi. Directors shall be personally liable for all the statutory and other liabilities of Company.
vii. Directors shall be liable for penalties, punishment or prosecution for non-compliances under the Act.
24/06/2018
GST- Various Verifications before finalising Statutory Audit.
1. Verification of Outward Supplies (i.e. Payable side):
??Check the Credit side of the Statement of Profit and Loss (SPL) in order to track the items which are chargeable to GST. Even, some amounts of credits have also been credited to Expenses account which is to be deeply scrutinized. Main Focus should be on Reimbursements, Interest on Delayed Payments, Liquidated Damages which are chargeable to GST.
??Make a Reconciliation of Sales as per GSTR 3B (Summary Return), GSTR 1 (Return of Outward Liability) and Sales as per Sales Register. You can track the completeness of the Revenue by ensuring the Serial Number of Invoices issued from GST Return.
??Check whether the Invoices have been issued within the prescribed time (i.e. On Removal in case of Goods or 30 days from the date of service in case of services).
??Check whether any stock is standing with any Agent (C&F etc.) and ensure that adequate GST has been paid on removal of goods to agent even without consideration (i.e. where only commission contract exist with the Agent).
??Check the Property, Plant and Equipment (PPE) Register (FAR) in order to track the location of the PPE to ensure that no PPE has been transferred to non-business purpose even without consideration.
??Check whether Credit Notes are raised only for value reduction, quantity reduction, tax reduction and Goods Returns and not for any other purpose.
??Ensure proper tax treatment of Discounts especially that discounts which have not been shown in the Invoice. Discounts are not allowed to be deducted in order to ascertain value for GST unless:
a. Shown on Invoice.
b. Not shown on Invoice but agreed on or before supply and linked to invoices BUT PROPORTIONATE ITC SHALL BE REVERSED.
??Check the compliance of Reverse Charge Mechanism (RCM) in case of procurement from unregistered Persons under Section 9(4) of the CGST Act, 2017 for the period from 01.07.2017 to 12.10.2017.
??Check whether Zero Rated supply (i.e. Exports or SEZ) has been made with duty payment or under Letter of Undertaking (LUT). In former case, ensure that the GST payable shall be booked by debiting GST Refundable. In the latter case, check the LUT and its period.
??Ensure provisions in relation to Composite and Mixed Supply. (Composite Supply: Time, Rate and Place of Supply as if Principal Supply has been made, Mixed Supply: Time, Rate and Place of Supply as if Highest Rated Supply has been made) if you come across combined supply.
??In case any Job Worker has been engaged, then check the details of goods sent, whether quarterly returns under form GTR ITC-04 have been filed by the Company.
2. Verification of Inward Supplies (i.e. Credit side)::
??Check month on month (MOM) balance of Electronic Credit Register with the Input of GST accounted for in the books of account.
??Blocked Credit: No ITC Zone (i.e. No ITC will be available) for:
a. Purchase of Motor Vehicle, Aircraft etc. (except B2B).
b. Transportation of@ Passengers.
c. Insurance Policies.
d. Restaurant/ Food Bills.
e. Work Contract (e.g. Repair and Maintenance of Immovable Property).
f. Procurements for Free Samples, Goods Lost, Destroyed, Stolen.
g. Hotel accommodation services received from outside the state.
h. Club Membership.
??Check proper particulars are mentioned on the Invoices of Inward Supplies received by the Company otherwise no credit is allowable.
??In case any Capital Good has been sold, check whether proper adjustment on utilization basis (i.e. allowing 5% per quarter or part thereof) have been carried out.
??Check the Transitional Credit taken by the Company from the Transitional records as well as returns of earlier IDT regime.
??Check whether the liability on account of RCM has been properly paid and taken as credit only after payment of the same (and not from utilization of Credit).
??Check the ageing of the Creditors and scrutinize the creditors outstanding from more than 180 days as on March 31, 2018. Obtain Invoice wise details of the same and GST paid on the same is to be paid as output tax liability in the month in which 180 days expires.
??Make sure that no credit of Swach Bharat Cess (SBC), Krishi Kalyan Cess (KKC), and Education Cess will be carried forward on transition date and the same has been expensed off.
3. Returns and Interest/Late Fees:
??Ensure that the Company has filed all the GST Returns timely otherwise proper late fees have been paid for the delay period.
??Check whether the payments of GST have been made within the prescribed time, otherwise Interest at the rate of 18% is required to be for the period of delay.
4. Netting of for the purpose of Financial Statements
??Netting off of GST Liability and GST Credit is to be made State wise and Nature wise (CGST/SGST/UTGST/IGST). However, State wise netting can be made of IGST with CGST/SGST/UTGST and vice versa since credit of IGST is allowable from the amount of CGST/SGST/UTGST to be paid and vice versa.
21/06/2018
Ministry of Corporate Affairs (MCA) has plans to dematerialize all unlisted companies with paid up capital of more than Rs. 50 Million (Rs. 5 crore and above)their shares by 30th June, 2018 and rest of the companies may dematerialize by 30th September, 2018
Above plan is applicable to all the companies which are not listed, whether they are Limited Company or Private Limited Company. Priority for dematerialization by 30th June, 2018 is given to the companies having paid up capital Rs. 5 crore and above.
In view of above Notification every unlisted company will have to make compliance and to have appoint Registrar & Share Transfer Agent (RTA)
Goods can'â„¢t be Seized for Non-Filling of Part B of E-Way Bill transported within a distance of 50 Kms, rules Allahabad High Court.
RBI has tweaked priority sector eligibility and classification norms following an announcement in the second bi-monthly policy statement on June 6 for Priority Sector Lending guidelines for housing loans with the Affordable Housing Scheme to low-cost housing for the Economically Weaker Sections.
SEBI is set to revamp IPO norms to make them less onerous for legitimate sellers while clamping down on possible misuse. These include recognizing a wider set of institutional investors such as alternative investment funds (AIFs) as counting toward promoters'â„¢ contribution in startups, requiring financial disclosures for three years rather than five and reducing disclosure of the price band to two days before the issue opens from five now.
The Employees'â„¢ Provident Fund Organisation (EPFO), a $165-billion behemoth that is also India'â„¢s biggest bond buyer, could raise borrowing costs for local companies if its participation is limited by restrictive rules on transaction settlement.
19/06/2018
No Inward supply details for March & June 2018 quarters also in GSTR-4 by Composition supplier. Notification 26/2018?CT, 13-6-18.
The Delhi Goods and Services Tax Rules, 2017, no E-Way Bill in respect of movement of goods originating and terminating within the State of Delhi (intra State movement but without passing through any other State) shall be required where the consignment value does not exceed Rs. one lakh only.
Ministry of Corporate Affairs has notified the Companies (Significant Beneficial Owners) Rules, 2018. These Rules come in the context of Section 90 of the Companies Act, 2013 which deals with 'ËœRegister of significant beneficial owners in a company'â„¢.
RBI eased the norms for Foreign Portfolio Investors (FPIs) to invest in debt, particularly into individual large businesses. The move is aimed at attracting more overseas flows.
ICAI issues Valuation Standards as a benchmark for Valuation Practices applicable for Chartered Accountants Recognizing the need to have the consistent, uniform and transparent valuation policies and harmonise the diverse practices in use in India.
17/06/2018
E-way bill Mandatory wef 16.6.2018 for B2B Supplies of more than Rs 1 lakh in Delhi. Not required for B2C supplies. Notice 3/2018 of 15.6.2018.
Centre and the 'Ëœconcerned state'â„¢ will equally share the amount deposited by erring businesses in the consumer welfare fund set up as part of the GST anti-profiteering rules, as per a Finance Ministry notification.
Employers to whom both PF & ESI applicable can now use common ECR (Electronic Challan cum Return) for PF & ESI.
The Reserve Bank of India (RBI) relaxed its April notification, which forbade FPIs from investing more than 20 per cent of their portfolios in bonds issued by a single corporate group.
Due Date for GSTR-3B for the May- 2018 & Pay due Tax till this date- June 20 2018.
15/06/2018
Sale of pre-GST packaged goods has now been allowed with stickers of revised rates till July 31. The deadline has been extended several time and the latest was 30thApril.
The corporate affairs ministry wants all unlisted companies with paid-up capital of more than Rs 50 million to digitalize shares by June-end. Others can do so by September. The aim is to make transactions more transparent.
Sebi vides its notifications dated May 31, 2018, amended the provisions of Takeover Code, Issue of Capital and Disclosure Requirements (ICDR) Regulations, Delisting Regulations and Listing Obligations and Disclosure Requirements (LODR) Regulations to facilitate the resolution process under IBC
12/06/2018
Income Tax Dept had served notices on nearly 3 lakh non-filers who deposited Rs.10 lakh or more in their bank accounts following the demonetization announcement. 'Å“Of these, nearly 2.1 lakh filed their returns by the March 31, 2018 deadline. The rest will now face action.
GST: Update eway bill with Change to Multi vehicle Option where all goods move to a location in one vehicle & then moved in parts in multiple vehicles.
The revenue dept is working on a mechanism under which foreign tourists may soon get to claim GST refunds paid by them on local purchases at airports at the time of exit.
NSE & BSE have issued a circular on all Listed Companies w.r.t Compliance and Disclosure Requirements for Listed Companies undergoing Corporate Insolvency Resolution Process (CIRP).
09/06/2018
15.06.2018 is last date for paying first installment of Advance Tax for FY 2018-19. Non/short payment is liable to penal interest.
10.06.18 (Sunday) is Last Day to file GSTR-1, monthly return of Outward Suppliers for May, 2018.
Shell Companies: Around 2, 25,910 Companies identified for being Struck-off this Year, Says Finance Ministry.
RBI has made changes in the Gold Monetization Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account. The short-term deposits should be treated as bank's on-balance sheet liability.
In case of transportation of goods by railways, whether goods can be delivered even if the e-way bill is not produced at the time of delivery?
As per proviso to rule 138(2A) of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short), the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery.
Whether e-way bill is required in the following cases-
(i) Where goods transit through another State while moving from
one area in a State to another area in the same State.
(i) It may be noted that e-way bill generation is not dependent on whether a supply is inter- State or not, but on whether the movement of goods is inter-State or not. Therefore, if the goods transit through a second State while moving from one place in a State to another place in the same State, an e-way bill is required to be generated.
06/06/2018
Penalty paid to Stock Exchange is a regular Business Expenditure: ITAT allows Deduction
Due Date for Payment of TDS/TCS for the month of May 2018 is June 7, 2018.
The President of India gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 which will give relief to Home Buyers and SMSE.
RBI voted unanimously to hike repo rate by 25 basis points, in a first interest rate hike in a four-and-a-half year
04/06/2018
Last day for filing Non Audit income tax returns (ITR) for FY 2017-18 is July 31, 2018.
Otherwise penalty will be levied on late filing. Filing returns is mandated by law and is an important proof of your tax compliance.
No change in date of filing GSTR-1 which is to be filed in 10 days from month end. File May GSTR-1 by 10 Jun. Pay GST & file GSTR-3B by 20 Jun.
ICAI proposes GST Audit Report and Statement of Particulars
SEBI Slashed a Fine of Rs 1.5 Lac to Listed Company for Not Appointing Company Secretary.
RBI is likely to leave the repo rate unchanged at 6 per cent in a close decision in the June 2018 policy review, amid uncertainty on the impact of some key inflationary risks, according to credit rating agency ICRA.
01/06/2018
Delhi Intra state E way bill not notified as on date. It's under consideration but no final decision till now
31/05/2018
Income Tax Deptt launched and activated all the seven ITR forms for e-filing by taxpayers, after more than a month of them being notified.
Due date for filing GSTR-6 by ISD for July, 2017-June, 2018 is extended till 31.07.2018. Notification to be issued shortly. Source: twitter- cbic.gov.in
Government has refuted exporters'â„¢ claim that Rs 20,000 crore of GST refund is pending, and said there has been no dip in refunds as it announced a special refund fortnight beginning May 31.
SEBI directed rating agencies to set up committees to hear the appeals of issuers aggrieved by the ratings assigned to them. Currently, there is no stipulated mechanism to review such issues.
ROC, Delhi & Haryana in its drive to clean the registry has issued notice of striking off of 1171 LLP's under Section 75 of LLP Act, 2008 read with Rule 37 of LLP Rules, 2009.
29/05/2018
31.5.18 is last date to file AIR in Form 61A by Banks etc & also in Tax Audit cases where cash above Rs 2 lacs received against any sale invoice.
Penalty of Rs 500 per day for not filing AIR in time. If no transaction to report, file SFT Preliminary Response at under Profile.
No Income Tax on Eligible Start-Ups on Issuing Share Capital at Excess Premium: CBDT has notified that Income Tax is not payable on issuing share capital at excess premium by eligible start-ups.Notification No. 24/2018/F. No.370142/5/2018-TPL dated May 24, 2018.
MCA amend the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, which may be called and shall come into force with effect from the 22nd May 2018.
The Law Ministry has clarified that Aadhaar linkage with savings bank account cannot be made mandatory. However, it has opined that there is no problem in linking the PAN. Supreme Court Hearing in this case is over and the court has reserved its verdict.
Filing of Nil Statement in form No. 61A is not mandatory under section 285BA read with rule 114E but to be on safer side Assessed may consider filing such return. Further to maintain consistency Assessee who has filed Annual Information Return for Financial Year 2016-17 may consider filing such return for financial year 2017-18 too despite no specified transaction in this FY.
Sale of a going concern by a business house will not attract GST, as per an order by the Authority for Advance Ruling (AAR). The Karnataka bench of the AAR gave its ruling based on an application filed by Rajashri Foods Pvt. Ltd.
DGFT has issued a Public Notice w.r.t Maintenance of Annual Average Export Obligation as provided under Foreign Trade Policy (FTP), 2015-20. The amendments will provide an opportunity to exporter to avail Condonation from non-maintenance of Annual Average in some years and to offset the difference by excess exports in other year(s) in respect of EPCG authorizations.
SEBI will soon put in place system-driven disclosures for non-promoters, directors and certain class of employees of listed companies. The system-driven disclosures in securities market was introduced in December 2015 and is being implemented in a phased manner.
30 MAY 2018 is the last date of filing of annual return in LLP Form-11.
28/05/2018
As the Goods and Services Tax Network ( GSTN ) is planning a major disaster recovery drill of GST System on 2nd June 2018.
Consequently, the taxpayers cannot access the portal on the same day between 9 AM to 3 PM since the GST System services will not be available during this time. 'Å“Major Disaster Recovery Drill scheduled for 2nd June 2018, between 9 AM to 3 PM. Kindly note that GST System services will not be available during this time,' the official twitter handle of the GST Portal tweeted Today.
All are requested to plan their GST compliance activities accordingly. The inconvenience that may be caused is regretted,' it said.
26/05/2018
CBDT has constituted a Task Force vide Office Order with a mandate of drafting an appropriate direct tax legislation keeping in view the direct tax system prevalent in various countries, the international best practices, the economic needs of the country.
Govt. introduced intra-state e-way bill for two states and five Union Territories (UTs) from 25.5.2018. The remaining states 'Chhattisgarh, Goa, J&K, Mizoram, Odisha, Punjab, Tamil Nadu and Delhi '†would be brought in the system from June 3 to cover the entire country.
Government is exploring the possibility of creating new categories in its tariff structure that will allow it to impose import duties on hi-tech products without violating a global agreement that mandates nil duties.
Sec. 132 of the CGST Act, issuance of an invoice without supply of goods and wrongful utilization of input tax credit is a cognizable and non-bailable offence if the amount involved is over Rs 5 Cr.
The insolvency ordinance has specified that the Limitation Act 1963 will apply for proceedings before the NCLT and NCLAT.
NSE and MCX entered into merger talks ahead of the implementation of the universal exchange framework in October. The two entities are planning to approach SEBI) as early as this month.
24/05/2018
*SAC Code & GST Rate for Accounting and Professional Services*
GST Council determines the GST rate for all services in India. GST rate for services fall under 0% or 5% or 12% or 18% or 28% slab. GST rate is fixed based on SAC code or services accounting code, a services classification system developed by the service tax department. In this article, we look at the SAC code and GST rate for legal, accounting and professional services in India. Professionals classified as taxable persons under GST must obtain GST registration.
*SAC code for accounting, auditing and bookkeeping services*
SAC Code 998221 " Financial auditing services
SAC Code 998222 " Accounting and bookkeeping services
SAC Code 998223 " Payroll services
SAC Code 998224 " Other similar services
*_GST rate for accounting, auditing and bookkeeping services is 18%_*
*Tax Consultancy and Preparation Services*
SAC code for tax consultancy and preparation are as follows:
SAC Code 998231 " Corporate tax consulting and preparation services
SAC Code 998232 " Individual tax preparation and planning services
*_GST rate for tax consultancy and preparation services is 18%_*
*Insolvency and Receivership Services*
SAC code for insolvency and receivership services are as follows:
SAC Code 998240 " Insolvency and receivership services
*_GST rate for insolvency and receivership services is 18%_*.
*Other Professional, Technical and Business Services*
SAC code for other professional, technical and business services are as follows:
SAC Code 998391 " Specialty design services including interior design, fashion design, industrial design and other specialty design services
SAC Code 998392 " Design originals
SAC Code 998393 " Scientific and technical consulting services
SAC Code 998394 " Original compilations of facts/information
SAC Code 998395 " Translation and interpretation services
SAC Code 998396 " Trademarks and franchises
SAC Code 998397 " Sponsorship Services & Brand Promotion Services
SAC Code 998399 " Other professional, technical and business services
*_18% GST rate is applicable for other professional, technical and business services_*.
*Legal Services*
SAC Code for legal services are as follows:
SAC Code 998211 " Legal advisory and representation services concerning criminal law.
SAC Code 998212 " Legal advisory and representation services concerning other fields of law.
SAC Code 998213 " Legal documentation and certification services concerning patents, copyrights and other intellectual property rights.
SAC Code 998214 " Legal documentation and certification services concerning other documents.
SAC Code 998215 " Arbitration and conciliation services
SAC Code 998216 " Other legal services
*Legal services provided by an Advocate or Firm of Advocates or an Arbitral Tribunal to any person other than a business entity or a business entity with a turnover of up to Rs.20 lakhs (Rs. 10 lakhs in special category states) is exempt from GST*.
22/05/2018
First GST Supreme Court order
GST : SLP dismissed against impugned order of High Court that where assessee sought release of goods seized during transport from Delhi to Siliguri, however, there were sufficient reasons with Assistant Commissioner to pass order of seizure and reasons had been given in seizure order, said order could not have been interfered with
SUPREME COURT OF INDIA
Vardh Paper Products (P.) Ltd.
v.
Commissioner of Commercial Tax/GST
A. M. KHANWILKAR AND NAVIN SINHA, JJ.
SPECIAL CIVIL APPEAL NO. 13483 OF 2018'
MAY 21, 2018
Section 129 of the Central Goods and Services Tax Act, 2017, read with Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017 - Search and seizure - Detention, seizure and release of goods and conveyances in transit (Release of goods) - High Court by impugned order held that where assessee sought release of goods seized during transport from Delhi to Siliguri, however, there were sufficient reasons with Assistant Commissioner to pass order of seizure and reasons had been given in seizure order, hence, said order could not have been interfered with - Whether SLP against said impugned order was to be dismissed - Held, yes [Para 2][In favour of revenue]
19/05/2018
Union Territories -- E - way bill mandatory wef 25/05/2018
The Central Government today notified that supplies within the Union territories would require E-Way Bill from 25th May 2018. The notification issued today rescinded the earlier notification as per which, irrespective of the value of the consignment, no e-way bill shall be required to be generated where the movement of goods commences and terminates within the Union Territories.
16/05/2018
KUALA LUMPUR:
Malaysia's finance ministry said on Wednesday (May 16) that the 6 per cent Goods and Services Tax (GST) will be zero-rated from Jun 1, effectively abolishing it until further notice.
In a statement, the ministry said the move does not include the goods and services listed in the Goods and Services Tax (Exempt Supply) Order 2014, which will remain exempted from GST.
'Å“At the same time, businesses must ensure that prices of goods and services comply with the Price Control and Anti-Profiteering Act 2011 at all times,' it added.
The announcement comes a day after former central bank governor Zeti Akhtar Aziz told Malaysians not to expect the GST removal to happen overnight, saying that it may require parliament approval.
Prime Minister Mahathir Mohamad, who won last week's general election, had vowed during the campaign to get rid of the 6 per cent GST to address the rising cost of living. Ousted leader Najib Razak had introduced the tax in 2015 amid lower oil prices.
Najib's government had planned to collect 43.8 billion ringgit (US$11.05 billion) in 2018 in GST, about 18 per cent of total revenue.
Bernama quoted Mahathir as saying that excess GST collected will be returned to those who apply for reimbursement. This is because the government has collected more than necessary, he added.
"The directive has been issued so that we ( the government) do not to collect anymore GST. We will try to pay back (the excess collected) to them (the people), "he said.
12/05/2018
?? GSTN to rope in private entities for tax payer profiling, fraud analytics
GST Network (GSTN) has *invited bids from private entities for "360-degree" profiling of taxpayers for early detection of fraud* as it seeks to transform into an end-to-end platform for checking GST evasion, from being just a tax collection portal. The analytics company to be roped in will have the *mandate for designing and developing a Fraud Analytics System* GST Network has however barred Infosys from bidding for the project to avoid conflict of interest.
??CBDT notifies the Protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Kuwait
??GST: Marked rise in compliance by composition-scheme dealers
??Chhattisgarh to roll out e-way bill on June 1 for intrastate movement_*
??Google tax may be broadened to cover non-digital MNCs
A *budgetary proposal to tax multinationals with a substantial user base* in India such as Google and Facebook is now being *widened to include non-digital companies* This could mean that any company that merely sells goods or services in India could see *domestic taxes of up to 42% on their profits* said two people with direct knowledge of the matter.
The government is planning to introduce rules to effect the change proposed in the budget in the coming weeks, said one of the persons quoted above.
??Coaching classes not exempt from GST, 18% tax applicable on fees, clarifies government
Coaching centres are *not exempt from the Goods and Services Tax* (GST) even as some *educational services bear 'Ëœnil'â„¢ tax* the government has clarified. *18% GST will be applicable on fees of coaching classes* a ruling by the Maharashtra Authority for Advance Rulings (AAR) said. A Mumbai-based coaching institute had *moved state AAR seeking clarification* if GST was applicable on coaching fees. As services rendered by *education institutes are taxed at 'Ëœnil'â„¢ rate* Borivili-based Simple Shukla Tutorials had said that the coaching institute should not be subject to GST, the newspaper reported.
The *AAR ruled* that *18% GST is applicable on coaching fees* It clarified that only those educational institutes that provide pre-school education, higher secondary education and vocational training are covered under nil tax. The Central Board of Excise and Customs had earlier stated that private coaching centres or other unrecognized institutions self-styled as educational institutions, would not be treated as educational institutions under GST and thus cannot avail exemptions.
??Time ripe to cut excise duty on petrol, diesel
Did the government let go of an opportunity to reduce the excise duty on petrol and diesel? It is possible. 'Å“Wait till May 12, by then there will be *more clarity on US sanctions on Iran*
??ITR-based income declaration likely for stock market investors
You may have to submit your income tax return (ITR) with your broker if you are *trading in equity and derivative market* as your trading limit may soon be *based on your declared income
??India at big risk of facing huge trade imbalances
Cautioning against the possibility of trade imbalances if corrective measures are not taken, Srini Raju, said, 'Å“India may have to *shell out huge forex reserves* in the changing economic order.
??DRI seizes huge quantity of prohibited drugs from Delhi's foreign post office
??Indians accounted for more than 74% of H-1B visas in 2016, 2017: USCIS report
??World becoming a computer, privacy is a human right: Nadella_*
Observing that the *world is becoming a computer* Indian American CEO of Microsoft Satya Nadella *called for greater integration of ethical values and principles* that protects individuals' privacy, human values and democracy.
??IT - Where *rental income derived* by assessee was assessed under head 'Income from house property', expenses on account of repair and maintenance in connection with property from which assessee was deriving rental income, could *not be allowed as business expenditure*
?? IT - Where *transfer of property was completed* in terms of section 2(47) by giving possession of property on date of sale agreement, but *registration was delayed due to some problem related to title of property, capital gains* was *subjected to tax in year of transfer of property and not in year of its registration*
[2018] 91 taxmann.com 266 (Kolkata - Trib.)
11/05/2018
MCA has notified amendment to various rules under Companies Act, 2013. The amendments are effective from May 07, 2018. The amended provisions have been discussed as under:
1. MCA has amended the Companies (Meetings of the Board and its Powers) Rules, 2014. A new provision has been inserted to Rule 4 of the said rules providing that any other director may participate through video conferencing or other audio visual means if there is quorum in a meeting through physical presence of directors.
2. MCA has amended the Companies (Audit and Auditors) Rules,2014. Amendment has been made to rule 3 whereby proviso to sub-rule 7 of Rule 3 and explanation thereunder have been omitted. Which means that the requirement of ratification of appointment of Auditor in every annual general meeting (AGM) till the conclusion of sixth AGM has been removed. Further Rule 9 of the said rules has been omitted. Rule 10A and Rule 14 have also been amended.
3. MCA has amended the Companies (Registration Office and Fees) Rules, 2014. A new provision has been inserted under to Rule 10(3) providing that - Registrar shall allow fifteen days' time for re-submission in case of reservation of name through web service -RUN for rectification of defects if any. Earlier re-submission was not allowed in case of re-submission of application through RUN.
4. MCA made An amendment in Annexure I of the Companies (Registration Office and Fees) Rules, 2014 prescribing additional fee of Rs. 100 per day effective from July 1, 2018 for delayed in filing of annual return and financial statements. The additional fee shall also be applicable to revised financial statement or board report as well as Secretarial audit report.
5. MCA has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 whereby amendment has been made to Rule. The revised norm provides that in case of appointment of Independent Director, none of the relatives of such independent director should be indebted to the company, its holding subsidiary or associate Company or their promoters, or directors; or has given a guarantee or provided any security in connection with indebtness of any third person to its holding, subsidiary or associate company or their promoter or directors for an amount of Rs. 50 Lakhs at any time during the two immediately preceding financial years or during current financial year.
6. MCA has amended the Companies (Prospectus and Allotment of Securities) Rules, 2014. The amendment prescribes omission of rule 4 - Reports to be set out in the Prospectus, rule 5- Other matters and reports to be stated in the prospectus and rule 6- Period for which information to be provided in certain cases.
10/05/2018
Proposed Impact of digital payments on Gst
*A brief Understanding on the outcome of 27th GST council meeting, on Concession GST rates* held on 4th May,2018
it is *_proposed_* that there will be 2% GST concession ( 1% each act i.e. CGST & SGST) (where tax rate is 3% or more) on B2C supplies, if payment is made through cheque or digital mode, subject to celling of Rs 100/- per transaction.
*_Few Examples for better understanding :_*
*FAQ 1*: Mr. A wants to purchase AC worth Rs 35,000/- plus 28% GST i.e. 9,800/-, what amount Mr. A will have to pay for this purchase if he use this AC in his home.
Solution: If Payment in cash: Rs 44,800/- but if payment is made through cheque or digital mode then 2% concession on GST will be allowed i.e. now he will have to pay Rs 44,100/- i.e. 35,000/- plus 26% GST, but one need not forgot celling limit of Rs. 100/-per transaction therefore in this case Mr. A must pay Rs. 44,700/- for AC.
*FAQ 2*: What happened to above transaction if Mr. A purchase AC for his proprietorship business?
Solution: in this case he must pay Rs 44,800/- whatever the mode of payment i.e. either in cash or online.
*FAQ 3*: Mr. B purchased unworked precious stone worth Rs. 2,00,000/- plus 0.25% GST i.e. Rs 500/- , what amount Mr. B will have to pay for this transaction if he purchased for personal use?
Solution 3: He must pay full amount i.e. Rs. 2,00,500/-, means without concession because rate of GST is less than 3% , which is basic requirement of availing concession.
*FAQ 4*: Mr. C purchased one pizza for Rs. 400/- plus 5% GST i.e. Rs. 20/-, what amount will he have to pay?
Solution: If payment made in cash then Rs. 420/- but if through online mode then Rs. 412 i.e. Rs 400/- plus 3%. This means Rs 8/- benefit will be there which is under celling limit of concession.
*FAQ 5*: How will pizza shop will create invoice in above case assuming there is online payment by Mr. C?
Solution: They will charge Rs 400/- plus 1.5% CGST and 1.5% SGST.
*FAQ 6*: Is there any concession if there is IGST involved?
Solution: Council clearly mention B to C sale, which means there will not be any scope of concession if sale is made interstate, because in most of the cases B To C sale attracts Place of supply which is generally place of seller.
Analysis why this concession is given:
There must be two parameters one is crystal clear that our officials want India as digital nation the another one is to provide benefits to end user who cannot take credit of their purchases and which leads extra burden on pocket of consumer, this 2% concession will reduce some amount of burden on the consumer.
Conclusion:
One must check all the aspects before allowing any concession i.e. mode of payment, nature of purchase, celling amount of concession and rate of GST on supply.
10/05/2018
*Important GST News*
??Nestle to Pay up for Failing to Pass on GST Cut Benefit
??CBIC Chief asks Officials to Expedite Process of Approval of GST Practitioners
??Government may seek Explanations for Discrepancy in Income Tax, GST Returns
??GST: No FMCG Demand Jump Despite Price Drop
??Sugar Cess goes against Idea of Tax Reforms through GST, say Experts
??Despite GST, India'â„¢s Tax Regime Second most Complex in Asia-Pacific Region: UN ESCAP report
??New GST Returns may Remove the Leeway given to Companies with less than Rs 1.5 cr turnover
??GST, Bank Balance sheet Problems pushed India'â„¢s economic growth downward but Recovery Expected: UN
??GOM on Incentivising Digital payments under GST to meet on May 11
*Latest GST Ruling'â„¢s*
??India Gate Basmati rice: GST Profiteering charge against KRBL dismissed
??Reinstatement and Access charges paid to Municipal Authorities liable to GST: AAR Mumbai
??GST Registration to be Granted from 01-07-2017 If Registration Delayed due to Wrong PAN Quoted in VAT Returns
??HC Directs Authorities to Release Seized Goods as E-Way Bill was Generated Before Seizure Order
??Mere Non-Mentioning of Vehicle No. in E-Way Bill couldn'â„¢t be reason for Seizure of Goods: HC
??HC Issues Notice to Advocate General as Transitional ITC Provision under Gujarat GST was Challenged
??Mere Mentioning Name of Aditya Birla on Cereal Packs to be construed as Bearing Brand Name; GST Leviable: AAR
??Caesarstone Classifiable as 'Å“Other than Natural Sands', 18% GST applicable: AAR
??Trophies of Only Base Metals would be covered under Chapter Heading No. 8306: AAR
??PVC Floor Mat could be classified as 'ËœFloor Coverings of Plastics'â„¢; Taxable at rate of 18% GST: AAR
??Supply of Food and Beverages in Trains doesn'â„¢t amount to Service; Considered as Supply of Goods: AAR
??Reinstatement Charges paid to Municipal Authorities for Restoring Dug-Up Patches attract 18% GST: AAR
??Fludeoxyglucose or FDG'â„¢ could be classified as 'Ëœradioactive isotopes & compounds'â„¢: AAR
??E-Rickshaw Tyres Classifiable as 'ËœNew Pneumatic Tyres of Rubber'â„¢; Taxable at Rate of 28%: AAR
??Classification of Service under 'ËœCommercial training or coaching service'â„¢ referred to larger bench of Tribunal
??Supply of Machine with condition that Company logo must be visible was liable to ST as Franchise Service
*Latest GST Summations*
??E-way Bill for Intra-State Supplies Applicable from May 25, 2018 in Maharashtra
??E-way Bill for Intra-State Supplies Applicable from May 16, 2018 in Assam
08/05/2018
? The *Assam Government* notified that the provisions of the *e-way bill rules* for intra-State movement of goods from 16th May 2018. An earlier notification issued by the Government said that for intra-State supplies, e-way bill provisions are mandatory from 1st March 2018. The present notification rescinded the said notification.
Under the E-way Bill provisions, both the inter-State and intra-State movement of goods above Rs 50,000 is required to be pre-registered online. Over 150 items of common use, including LPG cylinders, vegetables, food grain and jewellery, will be exempt from such transport permits, which can be checked by designated tax officials by intercepting a transporting vehicle.
Goods moved on non-motorised conveyance, such as carts, are also outside the net.
? Companies get scrutiny notices for mismatch in gst returns .
Gst officers have started sending scrutiny notices to companies whose tax payment did not match with sales returns after revenue audit of gst . 34% of businesses paid Rs 34000 crore less tax between july to Dec as per revenue department .
? coaching classes to pay 18% gst , students bear the brunt - AAR
The AAR bench pointed out that the coaching class did not have any specific curriculum and did not conduct any examination or award any qualification recognised by law.
? News & MCA Updates The Companies (Registration Offices and Fees) Second Amendment Rules 2018 has been notified on 7th May 2018. Accordingly, in case the due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013 expires after 30/06/2018, the additional fee @Rs.100 per day shall become payable in respect of
MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.
In all other cases where the belated annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act,1956 (23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A) or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable. Stakeholders are advised to take note and plan accordingly
04/05/2018
Good Morning
? New ITr forms vs Old methodology of ITr forms
The new forms will lead to correlating and reconciling of inter-connected information of a particular assessee from various touch points like GST turnover details vis-a-vis details in tax returns (albeit at the peril of small assessees being saddled with more effort at their end).
These forms also fortify the essence of timeliness of compliances, by automatically including the late filing fee aspect in the return form itself.
? New details sought in ITR-1
Until now, the Sahaj form was used by salaried employees, who had only one house property and interest income.
The details of 'salary' only required the information on the taxable salary.
Similarly, the 'income from house property' also required the taxable amount only in earlier forms.
These bare minimum requirements made it easy for individual assessees having limited sources of income to carry out the tax return procedure on their own, and hence was called Sahaj.
Under salary income, the new ITR-1 now requires assessees to provide the break-up of salary further into pure salary component, taxable allowances, the value of perquisites, profit in lieu of salary and deductions claimed under Section 16 of the Income Tax Act, 1961.
At the same time, from the perspective of 'income from house property', the new form now requires the break-up of annual value, municipal taxes paid, standard deduction and interest on borrowed capital.
? ITR 4 - More disclosures from small businesses
Sugam, on the other hand, deals with the returns that are to be filed by the assessees under the presumptive tax arena.
The presumptive tax regime allows the relevant assessees with small business operations to pay a fixed percentage of their total turnover as tax, without maintaining extensive books of accounts.
The earlier Sugam required the assessee to only furnish details of sundry debtors, sundry creditors, stock-in-trade and cash balance.
The new ITR-4, on the other hand, requires an array of additional information like partners or members' own capital, secured loans, unsecured loans, advances, other liabilities, total capital and liabilities, fixed assets, inventories, cash-in-hand, loans and advances and other assets.
This is in addition to the earlier information regarding sundry debtors, sundry creditors, stock in trade and cash balance.
Assessees need to provide GST-related details
In addition, there are disclosures or compliances that have been added that will impact all proposed return forms, namely, compulsory fees under Section 234F for delayed furnishing of return, GST number of the assessee, turnover based on GST return filed by the assessee and full bifurcation of CGST, IGST and SGST amounts.
? In case of assessee having capital gains income, or income from other sources, and claiming any treaty benefit, s/he will need to give details like rates according to the Income Tax Act versus the rate according to the treaty, the particular section of the Income Tax Act, and applicable rate.
While the objective of the government is to promote better compliance and ensure adequate disclosures, the additional information in ITR-1 comes at the cost of 'optically' complicating the forms -- optically because the majority of the information break-up sought will be available in Form 16 itself.
The set of assessees that may be impacted more than optically will be the ones subject to presumptive taxation (Sugam).
? The new disclosure requirements cast an onerous responsibility on them to indirectly maintain books of accounts, which they were not required to until now.
The question: Should the names Sahaj and Sugam be changed to align them with their renewed purpose
03/05/2018
*Revenue withdraws SLP challenging HC'â„¢s interim order on GST transitional credit limitation*
SC allows Revenue to withdraw SLP challenging the interim order of Delhi HC which had allowed the petitioners to avail transitional credit notwithstanding the 1 year restriction envisaged u/s 140(3)(iv) of CGST Act;
Dismisses petitions aswithdrawn in view of the fact that the HC is finally hearing writ petitions filed before it : SC
1/05/2018
GST: Bombay HC Extends Due Date for Filing TRAN-1 for Identified Taxpayers
While disposing of a bunch of writ petitions relating to return filing glitches in the GST portal, a division bench of the Bombay High Court extended the due date to file TRAN-1 by identified taxpayers to *10th May 2018*
Earlier, in compliance with the Bombay High Court orders, the Central Board of Indirect Taxes (CBIC) had decided to give a fresh opportunity to certain taxpayers who could not file TRAN 1 on or before 27.12.2017 due to technical glitches in the official portal, Goods and Services Tax Network ( GSTN ).
As per the circular issued by the Board, such taxpayers identified by the GSTN can file TRAN-1 by 30th April.
29/04/2018
*GST alert: Digital transactions proposed to be incentivised*
Soon, cashbacks to businesses, price benefit to customers for digital transactions; details here
The government is working on a proposal to incentivise digital transactions by providing cashbacks to businesses and price benefits to consumers, a source said.
The proposals to encourage digital transactions are likely to be placed before the GST Council, chaired by Finance Minister Arun Jaitley and comprising state ministers, on May 4. (IE)
The government is working on a proposal to incentivise digital transactions by providing cashbacks to businesses and price benefits to consumers, a source said.
As per the proposal being worked out by the Revenue Department, consumers paying through the digital mode would be offered a discount over the maximum retail price (MRP).
The discount would be capped at Rs 100. Businesses, on the other hand, could get a cashback based on the quantum of turnover through the digital mode.
The proposals to encourage digital transactions are likely to be placed before the GST Council, chaired by Finance Minister Arun Jaitley and comprising state ministers, on May 4. According to the source, the issue of providing incentive for digital transaction was discussed at a meeting held in the Prime Minister'â„¢s Office.
During the meeting, three possible modes of incentivising businesses to go in for digital transactions were discussed.
Apart from cashbacks, a proposal to allow businesses to obtain tax credit on the basis of turnover obtained through digital mode was also discussed. This would have worked like the input tax credit mechanism wherein businesses can credit for taxes paid on raw materials.
Besides, the option of allowing businesses to offset their GST liability up to a threshold for using digital transaction was also deliberated.
The source said the Revenue Department has zeroed in on the option of cashback to businesses based on a threshold of digital transaction.
This would be easier to implement and cannot be misused by unscrupulous elements. As a matter of precaution, the department will ascertain the veracity of the digital transactions reported by the businesses and then credit the cashback to their bank account.
During the PMO meeting, it was also discussed if any incentives could be given for digital transaction from the direct taxes side.
The direct tax department, the source said, has outlined the steps it had taken to discourage cash dealings. Besides, for small businesses opting for presumptive taxation scheme, it had reduced the rate for calculation of deemed profit from 8 per cent to 6 per cent in respect of the amount of total turnover or gross receipts received through banking channel/digital means.
The source said since the incentives would have been on the basis of the turnover of the businesses, it was felt that the indirect tax department would be better placed to incentivise the businesses and hence the GST Council would have to give a final go ahead.
28/04/2018
CGST Rules have been notified for the first time on 19th June 2017 vide Notification No. 3 /2017-Central Tax and after that it has been updated multiple times.
It is being updated on a average of two times in a month from the date of rollout of GST from 1st July 2017.
These are updated for the 19th time vide Notification No. 21/2018-Central Tax (Dated 18th April, 2018).
There are 19 chapters and 162 Rules in the CGST Rules
The updated CGST Rules can be accessed from here
Here is the list of notifications though which it got updated from time to time
Notified vide Notification No. 3 /2017-Central Tax (Dated 19th June 2017)
Notification No. 7/2017-Central Tax (Dated 27th June 2017),
Notification No. 10/2017-Central Tax (Dated 28th June 2017),
Notification No. 15/2017-Central Tax (Dated 1st July 2017),
Notification No. 17/2017-Central Tax (Dated 27th July 2017),
Notification No. 22/2017-Central Tax (Dated 17th August 2017),
Notification No. 27/2017-Central Tax (Dated 30th August 2017),
Notification No. 34/2017-Central Tax (Dated 15th September 2017),
Notification No. 36/2017-Central Tax (Dated 29th September 2017),
Notification No. 45/2017-Central Tax (Dated 13th October 2017),
Notification No. 47/2017-Central Tax (Dated 18th October, 2017),
Notification No. 51/2017-Central Tax (Dated 28th October, 2017),
Notification No. 55/2017-Central Tax (Dated 15th November, 2017),
Notification No. 70/2017-Central Tax (Dated 21st December, 2017) ,
Notification No. 75/2017-Central Tax (Dated 29th December, 2017),
Notification No.03/2018 " Central Tax (Dated 23rd January, 2018),
Notification No. 12/2018 " Central Tax (Dated 07th March, 2018),
Notification No. 14/2018-Central Tax (Dated 23rd March, 2018) and
Notification No. 21/2018-Central Tax (Dated 18th April, 2018)
27/04/2018
*Issuance of Passport & Police Verification to be simplified*
The Centre plans to merge the process with Crime and Criminal Tracking Network and Systems Project (CCTNS), a project first conceptualised by the UPA government in 2009; this will eliminate the need of doing the physical police verification for getting a new passport.
With the implementation of CCTNS, the manual process of police verification could be simplified with just a few clicks. Also, the old process which resulted in bribing the local police officers when they come to verify the address and identity will come at a halt.
As per the Union Home Secretary Rajiv Mehrishi said the CCTNS, an exhaustive national database of crimes and criminals was expected to be linked with the passport service of the External Affairs Ministry. CCTNS will check the past history and background of the applicants with a single click.
Mr. Mehrishi told reports 'Å“For passport credentials, police is already using CCTNS in some states. Police will be given handheld devices to upload applicant'â„¢s details upon reaching their home. This will not only minimize the contact of the applicant with the police officer to curb bribing but also reduce the time for getting the passport.'
After Home Minister Rajnath Singh launched the CCTNS project, which will connect all the 15,398 police stations of the county, Mr. Mehrishi said the CCTNS had been expanded for further use by incorporating citizen-centric services like " tenant verification, which could be done with the consent of the person being verified, connecting the network with criminal justice delivery system and quick registration of FIR in any crime.
*Gst collections till March 2018*
Total revenue collected under Goods and Services Tax (GST) for eight months upto March this year has been Rs 7.19 lakh crore with an average monthly collection of Rs 89,885 crore during the period.
"Including the collection of July 2017, the total GST collection during the financial year 2017-18 stands provisionally at Rs. 7.41 lakh crore," an official statement said here on Friday.
This indirect tax regime was rolled out on July 1, 2017.
26/04/2018
E Way Bill Simplification
There is some good news for the Rs 8.5 lakh crore transport industry - the Electronic-way (E-way) bill operations could see further simplification.
The E-way bill is a document that is required for movement of goods that are valued above Rs 50,000, from one place to another under the goods and services tax (GST) regime. The process has been facing practical difficulties including time taken for bill verification during transit and the number of times it is verified.
GST collections up
As far as collections under GST are concerned, while there were fluctuations post the July 1 implementation of the tax regime, it has now stabilised.
Menon added that collections are going up. "We have seen about Rs 96,000 crore as of end of March 2018. This increase could be partly due to the input credit carry forward, close of financial year and also due to the anticipation of the e-way bill coming in."
Anti-profiteering rules
Under GST, anti-profiteering has been an area of concern as well. While authorities do not want companies to pocket the profits arising from a reduction in taxes, implementation challenges have remained.
"It has been sought that increased input credit and reduced GST has to be passed on to the end customers. However, at present, a complainant may not be able to cannot find out whether input credit has passed on," Menon said.
Currently, there are no guidelines on anti-profiteering norms under GST. However, adjudication has already started.
Honda dealer case
In March, the the National Anti-Profiteering Authority (NAA) had dismissed a complaint against a Bareilly-based Honda car dealer related to tax reduction benefits not being passed on.
"Nearly 73 complaints have been filed under the anti-profiteering rules, but only one has been adjudicated. This process takes time and 8-10 months for an outcome to be reached," said Menon.23/11/2019
Delhi HIgh Court directed ITAT to Deal with cases in which there is stay of Tax recovery on higher priority: Case Name : PCIT Vs Nokia Solutions & Networks India Pvt. Ltd. (Delhi High Court)
Income Tax Section 68 additions cannot be made merely on doubts, conjectures or surmises. Case Name : ITO Vs. Ambika Metalchem Impex P. Ltd. (ITAT Mumbai)
CBIC to act tough following lower-than-expected tax mop-upThe Goods & Services Tax (GST) Administration plans to act tough with non-filers of returns and cancel their registration. It has also decided to update the progress made in this regard on a daily basis.
GST CLARIFICATION ON JOB WORK : 12% GST is levied only job work services which are provided by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, 18% GST is levied only on such services which are carried out on physical inputs (goods) which are owned by persons other than those registered
Smaller businesses with annual turnover of less than Rs 5 crore are hit by the recent change in GST rule, which restricts the amount of input tax credit (ITC) a business can claim. The rule that was amended last month mandates that ITC claims can only be fully availed if all the relevant invoices are uploaded by the suppliers in its GSTR-1 (the returns where all the outwards sales are detailed).
25/04/2018
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