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No Tax on Sale of Agricultural Land after its Conversion into ‘Industrial Land’: ITAT* [Read Order]
Read more at: http://www.taxscan.in/tax-sale-agricultural-land-conversion-industrial-land-itat/25711/
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No ITC on packing materials used for exempted supply of seeds: AAR
GST : Where applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on packaging material used for said exempted supply of seeds, whereas, if applicant supplies only packing material to own branches in other States, then ITC involved in purchase of such packing material could be availed as per section 17(2) of Chhattisgarh Goods and Services Tax Act, 2017
• The applicant, VSPL with multiple registrations under GST in various States is involved in business of supplying seeds in packaged form using packaging materials for sowing purpose. The seeds are exempted from GST whereas packing materials and other consumables are taxable. It also used to transfer aforesaid taxable inputs like packaging materials and other consumables from one branch to another and from one processing unit to another. The applicant has filed the application under section 97 of Chhattisgarh Goods & Services Tax Act, 2017 (CGST Act) requesting advance ruling to keep Input Tax Credit (ITC) of the packaging material till they are into their stock and regarding ITC while transferring goods between their own branches.
• The applicant contended that it transfers aforesaid taxable inputs within its own branches situated in various States across India and are required to pay GST merely for these inter-branch transfers. It was thus their contention that they are liable for multiple tax which is against the core principles of GST.
• As per provisions of section 17(2) of CGGST Act, 2017 any registered recipient can claim ITC to extent of taxable stock or taxable outward supply shown in their returns. The registered recipient cannot claim ITC on amount of taxable supply component included in total amount of exempted supply. The amount of unclaimed ITC shall also be reversed in electronic ledger of same month. Thus, it is clear from the provisions of section 17(2) of CGGST Act, 2017 that if applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on packaging material used for said exempted supply of seeds, whereas, if applicant supplies only packing material to own branches in other States, then ITC involved in purchase of such packing material could be availed as per section 17(2) of CGGST Act, 2017.
• Thus, the applicant is not entitled to ITC on packaging material used for packaging seeds, while making such exempted supply of seeds to their own branches and to other purchasers. They are however, entitled for ITC (of tax involved in purchase of such packing material) on exclusive taxable supply of such packing material made to their own branches in other States, in terms of section 17(2) of Chhattisgarh Goods and Services Tax Act, 2017.
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ITAT confirms Addition for Bogus Purchases based on Incomplete Purchase Bill & Illogical Mode of Transport Used* [Read Order]
Read more at: http://www.taxscan.in/itat-addition-bogus-purchases-incomplete-purchases-bill-illogical-mode-transport-used/25688/
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MCA
MCA has notified the Companies (Acceptance of Deposits) Amendment Rules, 2018 which shall come into force from 15-08-2018. According to the amendments, Certificate of statutory auditor of the company is required to be attached in form DPT-1 shall state that the company has not committed default in the repayment of deposits or in payment of interest on such deposits accepted either before or after the commencement of the Act or in the payment of interest on such deposits, the certificate shall state that the company has made good the default and a period of 5 years has lapsed since the date of making good the default as the case may be. MCA after extending the period twice has finally omitted the provisions w.r.t Manner and extent of Deposit Insurance. Further, for Maintenance of Liquid Assets and Creation of Deposit Repayment Reserve Account, the amount remaining deposited shall not at any time fall below 20% of the amount of deposits maturing during the financial year.
NSE
In continuation of earlier circular dated January 27, 2017 whereby all members were required to identify their KMP(s) and update their PAN details alongwith the PAN details of their Directors on the Exchange system. All members are required to note that they have to upload PAN copy against each and every Director under Directors Details module on ENIT NEW COMPLIANCE alongwith updation of KMP(s) details. Members are also required to note that any change in the aforesaid information/details has to be updated within 7 days of such change. Failure to adhere will be treated as non-compliance. Members are required to ensure due compliance with the aforementioned requirement latest by July 31, 2018 to avoid penal actions.
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MCA
MCA has issued an advance alert on its website w.r.t the DSC of directors to be used on Form DIR - 3KYC. The Form DIR-3 KYC has already been notified vide Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2018 dated 5th July 2018 and would be made available shortly for filing purposes on the MCA website. While filing DIR-3 KYC form, all stakeholders are requested to use PAN based DSC in case of Indian Nationals i.e., DSC should contain PAN as specified in the form. Further, In respect of foreign nationals, applicant's name in DSC would be matched with his / her name entered while filing the form (DIR-3 KYC). In case the PAN /Name in DSC does not match with PAN / Name entered in the form, they would be required to get a DSC with PAN/Name as specified in the form. All stakeholders are requested to keep the same in mind and arrange for the documents and DSC in accordance with the requirements stipulated by the MCA.
SEBI
SEBI has released a Master Circular for Mutual Funds which is a compilation of all the circulars issued by SEBI on Mutual Funds, which are operational as on June 05, 2018. For effective regulation of the Mutual Fund Industry, Securities and Exchange Board of India (SEBI) has been issuing various circulars from time to time. In order to enable the industry and other users to have an access to all the applicable circulars at one place, Master Circular for Mutual Funds has been prepared. The Master Circular has 18 Chapters which include Governance norms, Disclosures and Reporting norms, Loads, fees and expenses, among other things. This Master Circular shall supersede the previous Master Circular CIR/IMD/DF/ 18/ 2014 dated October 01, 2014. Further, in case of any inconsistency between the master circular and the applicable circulars, the contents of the relevant circular shall prevail.
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MCA
The MCA has notified the much-awaited amendments through the Companies (Registration of Charges) Amendment Rules, 2018, which shall come into force from the date of their publication in the Official Gazette i.e 05-07-2018. A Company or charge holder shall within a period of 300 days, instead of 30 days, from the date of payment or satisfaction in full or any charge registered, give intimation of the same to the Registrar in Form No. CHG-4 along with the prescribed Fee. Further, if the form is filed beyond 300 days, the Registrar shall not register the same unless the delay is condoned by the Central Government.
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GST Department Arrests Company Director for Evasion of Service Tax*
Read more at: http://www.taxscan.in/gst-arrests-company-director-evasion-service-tax/25766/
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# *IT*: Threshold Monetary Limits for filing *Departmental Appeals* has been increased in case of (i) *ITAT / CESTAT* from Rs.10 Lac to Rs.20 Lac; (ii) *HCs* from Rs.20 Lac to Rs.50 Lac; and in case of (iii) *SC* from Rs.25 Lac to Rs.1 Cr. Source: https://twitter.com/FinMinIndia/status/1017017768057532416?s=17
# *ICAI* invites comments by 10.08.2018 on Exposure Draft of Accounting Standard (AS) 19, Employee Benefits.
# *MCA* has issued an advance alert on its website w.r.t the DSC of directors to be used on Form DIR-3KYC. The PAN based DSC in case of Indian Nationals and in case of foreign nationals, applicant's name in DSC would be matched with his / her name entered while filing the form (DIR-3 KYC).
# *TDS*: TDS u/s 194A - composition of the NOIDA Authority is statutorily provided by Sec-3 of 1976 Act itself, hence, there is no denying that Authority has been constituted by Act itself - NOIDA is a Corporation - No TDS liability on interest paid to NOIDA – CIT (TDS) & Anr Vs. Canara Bank (2018 (7) TMI 664 - SC).
# *IT*: Penalty u/s 271(l)(c) - The legislature does not intend to penalize every person whose claim is disallowed. This is not the aim of the legislature – Pr.CIT Vs. Samtel India Ltd. (2018 (7) TMI 660 - Delhi HC).
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Key Features – Return Preparation Utility (RPU) version 2.3:
A new column for “Deduction under Section 16 (ia)” is added under Annexure II (i.e. Salary details) for Form 24Q-Q4
The above referred deduction is applicable for regular and Correction statements for Form 24Q-Q4.
Deduction under Section 16 (ia) will be applicable for statements pertaining to F.Y. 2018-19 onwards. Introduction of new remark code for Form 26Q
A new remark code “R” is introduced under field “Remarks” in Annexure I (i.e. deducted details) for deduction on interest income for Senior Citizens.
This will be applicable only for section code 194A (i.e. interest other than interest on securities). Same will be applicable for Regular and Correction statements pertaining to Form 26Q from F.Y. 2018-19 onwards.
Incorporation of latest File Validation Utility (FVU) version 5.8 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.3 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).
This version of FVU is applicable with effect from June 29, 2018.
The Date for updation Of Entity Master Form on RBI website has been extended to 20th July 2018.
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CBIC launches Web-Help Service to address Queries of Taxpayers*
Read more at: http://www.taxscan.in/cbic-web-help-queries-taxpayers/25786/
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GST Portal updates Facility of Online filing of Appeal*
Read more at: http://www.taxscan.in/online-filing-appeal-gst-portal/25799/
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*Candidates of GST Practitioners shall pass Exam before 31st December 2018, says Fin Min*
Read more at: http://www.taxscan.in/gst-practitioners-exam-december-2018/25809/
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CBIC launches Web-Help Service to address Queries of Taxpayers*
Read more at: http://www.taxscan.in/cbic-web-help-queries-taxpayers/25786/
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*Candidates of GST Practitioners shall pass Exam before 31st December 2018, says Fin Min*
Read more at: http://www.taxscan.in/gst-practitioners-exam-december-2018/25809/
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wrongdoing by the assessee has to be established*
CASE BRIEFS HIGH COURTS
Delhi High Court: A Division Bench comprising of Ravindra Bhat and A.K. Chawla, JJ. dismissed Revenue’s appeal holding that Income Tax Appellate Tribunal (ITAT) was right in holding that the assessee was not liable to penalty under Section 271(1)(c) of Income Tax Act, 1961.
The assessee, manufacturers of TV parts, purchased some machinery for Rs 3.34 crores, which they were not able to remove from the port due to inability to mobilize funds. The assessee decided to write off the machinery into account books, which was disclosed in Annual Accounts. Subsequently, while filing the IT return, the above-mentioned amount was claimed as revenue loss. The revenue Authorities held that the writing off of the said amount was not justified. The penalty was levied on the assessee under Section 271(1)(c) for making the wrong claim in the return. On appeal, ITAT held that no penalty could be levied on assessee in the present case. Revenue appealed against the order of ITAT.
The High Court perused the section and observed that a plain reading of the provision shows that penalty is levied only on an assessee who either ‘conceals’ or ‘furnishes inaccurate particulars of his income’, these are the two essentials. Supreme Court decision in T. Ashok Pai v. CIT, (2007) 7 SCC 162, was relied upon wherein it was held that penalty under the section is not automatic in nature; the conditions under the section must exist before the penalty is imposed; Revenue had the responsibility of showing intentional wrongdoing. It was observed that though the petitioner made a wrong claim, the Parliament had no intention to penalise everyone who makes a wrong claim of deduction. The Court held that the essentials of Section 271(1)(c) were not satisfied. Hence, the decision of ITAT was upheld and the appeal was dismissed. [PR CIT-8 v. Samtel India Ltd., ITA No. 43 of 2017, dated 09-07-2018]
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Failure to fill Part-B of E-way Bill would attract Penalty: Madhya Pradesh HC* [Read Judgment]
Read more at: http://www.taxscan.in/part-b-e-way-bill-penalty-madhya-pradesh/25822/
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10 Key Amendments Proposed in GST Laws
A whopping 46 amendments have been proposed in the GST Laws. All of these proposed amendments have been targeted to make compliances less cumbersome and to ensure ease of doing business. Comments from the stakeholder has been on invited on the proposal by July 15, 2018. Once the amendments are finalized by the Revenue Dept., they shall be moved to the GST Council for approval and to the legislators for enactment. These proposals are relating to the Supply, Reverse Charge, Composition Scheme, Input Tax credit, returns, etc.
The key draft proposals for amendments to the GST Laws are enumerated below:
1. As per Section 9(4),a registered person is liable to pay GST under reverse charge on goods or services purchased from unregistered supplier. However, this provision has deferred till September 30, 2018. It has been proposed that only notified registered persons should be liable to pay GST under reverse charge mechanism to benefit the small and medium enterprises.
2. Presently, registered persons engaged in the supply of services (other than restaurant services)are not eligible for the composition scheme. Thus, manufacturers or traders couldn't opt for the scheme if they are engaged in supply of allied services even if they are negligible. Therefore, it has been proposed that composition scheme should be allowed even if proportion of 'Service' is upto 10% of total turnover in the preceding financial year or Rs. 5 lakhs, whichever is higher.
3. Changes in negative list of input tax credit has been proposed. It is proposed that input tax credit should be allowed for the taxes paid on following:
a) Supply of food, transport and insurance provided to employees if it is obligatory for the employer.
b) Purchase of motor vehicle if it used for transportation of money for or by a banking company or a financial institution.
4. It is proposed that ane-Commerce operator, who is not required to collect TCS, should be exempted from taking compulsory GST registration. In that case, the registration should be obtained only if other conditions are fulfilled, inter-alia, turnover exceeding the threshold limit, inter-State supply, etc.
5. At present, a credit or debit note can be issued only against its underlying invoice, which is quite cumbersome to correlate. Thus, it is proposed that parties should be allowed to issue consolidated credit or debit note to reduce the compliance burden for taxpayers.
6. Allow the taxpayers to amend the GST returns. This provision would enable the taxpayers to correct inadvertent mistakes by filing an amendment return.
7. Any department of the Central or State Govt. or Local Authority which is subject to audit by CAG should not be required to get their books of account audited by any Chartered Accountant or Cost Accountant irrespective of prescribed limit of Rs. 2 Crores.
8. As per the existing provisions, a person seeking registration shall be granted a single registration in a State or Union territory. However, if he has multiple business verticals in a State or Union territory, he may obtain separate registration for each business vertical. Now, it has been proposed that such persons should be allowed to obtain separate registration for his each place of business in a State or Union territory.
9. Once a registered person has applied for cancellation of GST registration, the proper officer should temporarily suspend its registration till the procedural formalities for cancellation are completed. This amendment would relieve the compliance burden of taxpayers.
10. In case of import of goods, by virtue of Circular No. 3/1/2018-IGST, Dated May 25, 2018, IGST would be payable only at the time of clearance of goods from Custom bonded warehouse for home consumption. This deferment of levy of GST is done so as to avoid the double taxation. It has been proposed that such situations should be mentioned as 'No Supply' in Schedule III of the CGST Act, 2017 itself.
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Standard Deduction Of Rs 40,000 Available For Pensioners.
Income Tax (IT) department clarified that pension qualifies as salary and is thus eligible for standard deduction of up to Rs 40,000.
Updated : April 06, 2018 07:07 IST
Standard deduction of Rs 40,000 from taxable income is expected to benefit 2.5 crore salaried employees.
Pensioners are eligible for standard deduction up to Rs 40,000 from their taxable income, the government clarified on Thursday. Earlier, Budget 2018 had amended the Finance Act and provided a standard deduction of Rs 40,000 to all salaried individuals in their taxable income. However, there was some confusion as to whether pensioners too are eligible to claim this standard deduction, said an official statement. In response, the Income Tax (IT) department clarified that pension qualifies as salary and is thus eligible for standard deduction of up to Rs 40,000, according to an official statement from Central Board of Direct Taxes (CBDT).
"The Central Board of Direct Taxes (CBDT) has clarified that the pension received by a taxpayer from his former employer is taxable under the head "Salaries". The Finance Act, 2018 has amended Section 16 of the Income-tax Act, 1961("the Act") to provide that a taxpayer having income chargeable under the head "Salaries" shall be allowed a deduction of Rs 40,000/- or the amount of salary, whichever is less, for computing his taxable income. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of Rs 40,000/- or the amount of pension, whichever is less, under Section 16 of the Act," said the press release.
This additional deduction of Rs 40,000 was proposed in Budget 2018 in place of the former deductions of Rs 19,200 for transport allowance and Rs 15,000 for medical reimbursement. The move is expected to benefit 2.5 crore salaried employees.
(Also Read: 10 Key Changes In Income Tax Rules That Came Into Effect From April 1)
Earlier, standard deduction available for salaried individuals until it was abolished with effect from assessment year 2006-07.
The benefits arising from standard deduction depend on the tax bracket of a particular salaried individual.
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Failure to fill Part-B of E-way Bill would attract Penalty: Madhya Pradesh HC* [Read Judgment]
Read more at: http://www.taxscan.in/part-b-e-way-bill-penalty-madhya-pradesh/25822/
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Rs 20 Crore GST evasion detected in Bangalore*
Read more at: http://www.taxscan.in/20-crore-gst-evasion-bangalore/25843/
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GST Portal updates Facility of Online filing of Appeal*
Read more at: http://www.taxscan.in/online-filing-appeal-gst-portal/25799/
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*Pre-Deposit Paid for First Appeal Adjustable on Filing Second Appeal before Tribunal: CESTAT* [Read Circular]
Read more at: http://www.taxscan.in/pre-deposit-paid-first-appeal-adjustable-filing-second-appeal-tribunal-cestat/25796/
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*👉🏻RBI makes it mandatory to mention buyer's name on demand draft*
(The decision has been taken to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering. The new rule will be applicable from September 15.)
👇🏻 👇🏻 👇🏻
https://goo.gl/C8cTgn
*👉🏻GST Practitioners required to pass examination before 31.12.2018*
(The schedule of examination, syllabus of examination and the website for registration for examination will be notified in due course)
👇🏻 👇🏻 👇🏻
https://goo.gl/E2yvEQ
*👉🏻DIR-3 KYC will be available on MCA21 wef 14th July 2018*
( DIR-3 KYC will be available on MCA21 Company Forms Download page w.e.f 14th July 2018 for filing purposes)
👇🏻 👇🏻 👇🏻
https://goo.gl/AZv9MQ
*👉🏻Opportunities for Professionals to act as Insolvency Professional & Registered Valuer*
(IBBI provides opportunities to the Professionas to act as Insolvency Professional & Registered Valuer. Members can act as IRP, RP, IP, Liquidators and Registered Valuers)
👇🏻 👇🏻 👇🏻
https://goo.gl/FVMusZ
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CBDT & CBIC has increased the monetary threshold limits for departmental appeals at various levels — appellate tribunals, high courts, and the Supreme Court.This is the second time in two years that the threshold has been hiked for the (CBDT) and (CBIC).
Appeals in Income Tax mattersMonetary Limits (in Rs.)
1 Before Appellate Tribunal20,00,000/-
2 Before High Court50,00,000/-
3 Before Supreme Court1,00,00,000/-
ITAT Mumbai has sought further investigation into cases linked to HSBC’s Geneva branch involving A US-based NRI. A list of people of Indian origin having bank accounts in Geneva was handed to India by France in 2011.
MCA has notified the constitution of the Jaipur Bench of National Company Law Tribunal w.e.f. 01-07-2018. It is now further informed to all the Stakeholders and companies that all matters having territorial jurisdiction at NCLT, Jaipur Bench, as filed under the different provisions of the Companies Act, 2013 and / or Insolvency & Bankruptcy Code, 2016 have been transferred from NCLT, New Delhi Bench to NCLT, Jaipur Bench.
India is now the world's sixth-biggest economy, having muscled past France. India is expected to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019, leaving its nearest rival China behind.
Ministry of Law & Justice, vide Circular No F.No: A-12023(1)/2/2018-Admn.III(LA) dated 06.07.2018, has invited applications for appointment to the posts of Judicial & Accountant Members of the Income Tax Appellate Tribunal.
Membership Open For Ccatax (Tax Bar) Chd Ca Taxation Association Apply Online At WWW.CCA.Tax No Membership Fees , Only Tax Practitioner May Apply Membership Only For Chandigarh Region.
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AA confirms Punishment to Chartered Accountant for preparing fake Financial Statements* [Read Order]
Read more at: http://www.taxscan.in/chartered-accountant-fake-financial-statements/25855/
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Cenvat Credit allowable on Service Tax paid on Director Sitting Fees: CESTAT* [Read Order]
Read more at: http://www.taxscan.in/cenvat-credit-allowable-service-tax-director-sitting-fees-cestat/25838/
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*Buyer’s Name mandatory in Demand Drafts: RBI* [Read Notification]
Read more at: http://www.taxscan.in/buyers-name-demand-drafts-rbi/25866/
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ITAT deletes Disallowance of Partners Remuneration of CA Firm* [Read Order]
Read more at: http://www.taxscan.in/itat-deletes-disallowance-partners-remuneration-ca-firm/25876/
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No Tax on Sale of Agricultural Land after its Conversion into ‘Industrial Land’: ITAT* [Read Order]
Read more at: http://www.taxscan.in/tax-sale-agricultural-land-conversion-industrial-land-itat/25711/
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ITAT confirms Addition for Bogus Purchases based on Incomplete Purchase Bill & Illogical Mode of Transport Used* [Read Order]
Read more at: http://www.taxscan.in/itat-addition-bogus-purchases-incomplete-purchases-bill-illogical-mode-transport-used/25688/
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ITAT deletes Disallowance of Partners Remuneration of CA Firm* [Read Order]
Read more at: http://www.taxscan.in/itat-deletes-disallowance-partners-remuneration-ca-firm/25876/
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CBDT invites Comments for amending IT Rules relating to Significant Economic Presence for Determining Tax Liability of Foreign Entities* [Read Notification]
Read more at: http://www.taxscan.in/cbdt-invites-comments-amending-significant-economic-presence-determining-tax-liability-foreign-entities/25899/
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What’s new in Annual return (section 92)
As like earlier, every company shall prepare and file an annual return with the ROC in e-form MGT 7 within 60 days of the AGM, where it is held, or within 60 days from the date when it should have been held (i.e, with an extended date).
Such return shall be signed by a Director and Company Secretary,or Practicing Company Secretary, if Company has no Company Secretary.
However, in case of Listed and public companies having Paid up >= 10 crores, or Turnover >=50 crore, the return shall also be certified by practicing Company Secretary in form MGT 8.
Since, so far, the section from Stakeholders point of view contained some complexities, therefore, the MCA has recently been amended the provision by notification dated 7th May 2018.
Section 92(3) of the 2013 Act has mandated the filing of an extract of the annual return as part of the board’s report. This requirement was leading to duplication of information being reported to the shareholders. To avoid duplication, the 2017 Amendment Act states that instead of filing of an extract of the annual return, the web address/link of the annual return filed by the company and hosted on its website, if any, should be provided in the board report.
However, there is nothing to be worried about the amendment has been taken place in section 92 of the Companies Act 2013. The total 2 out of 6 changes so far have been made to make the section more comprehensive also includes steps to promote electronic corporate governance.
We have made every efforts to bring for you all the changes in Section 92 of Companies Act, 2013 at a place in the precise manner as discussed below for your convenience:
The clause (c) of sub section 1 has been omitted;
In clause (j), the words “indicating their names, addresses, country of incorporation, registration, and percentage of shareholding held by them” shall be omitted;
A new proviso has been inserted to give powers to the central government to define an abridged set of annual return for OPC, Small company and other class or classes of companies as may be prescribed through rules;
The sub-section 3 has also been substituted with the insertion of a new subsection in place which mandate & promote electronic Corporate Governance that “every company shall host its annual return on its website if any, and also give a reference to the web link in its board report;
Under subsection 4 & 5 of section 92, the reference to section 403 has been substituted with the word “therein”
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SEBI
SEBI has issued circular w.r.t. Discontinuation of acceptance of cash by Stock Brokers. SEBI has taken a decision keeping in view, various modes of payment through electronic means available today, directed all the Stock Brokers not to accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker. Accordingly, all payments shall be received / made by the stock brokers from / to the clients strictly by account payee crossed cheques/ demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. Further, the stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Exchanges are further directed to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above direction immediately.
RBI
RBI has mandated for Incorporation of Name of the Purchaser on the Face of the Demand Draft. In order to address the concerns arising out of the anonymity provided by payments through demand drafts and its possible misuse for money laundering, it has been decided that the name of the purchaser be incorporated on the face of the demand draft, pay order, banker’s cheques, etc., by the issuing bank. These instructions shall take effect for such instruments issued on or after September 15, 2018. Accordingly, Section 66 of the Master Direction on KYC dated February 25, 2016, as amended on April 20, 2018, has been amended.
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IBC
The Insolvency and Bankruptcy Board of India (IBBI) has expressly prohibited the empanelment of Insolvency Professional Entities with market participants. IBBI has observed that a few market participants are seeking empanelment of IPEs and a few IPEs are also seeking empanelment with market participants. Given the role of an IPE, the IPEs are directed to refrain from seeking empanelment with or joining any panel of any market participant. Further, Section 206 of the Insolvency and Bankruptcy Code, 2016 prohibits a person from rendering services as an insolvency professional (IP) unless he is enrolled as a member of an Insolvency Professional Agency (IPA), and registered with the IBBI. An IPE is neither enrolled as a member of an IPA nor registered as an IP with the IBBI. It cannot act as IP under the Code.
