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Saturday, 11 August 2018

11 August 2018 Updates

Income Tax Department has accepted 99.65 per cent of tax returns as it is and has picked only 0.35 per cent cases for detailed scrutiny, chairman CBDT

RBI has informed that it has issued Guidelines for appointment of Statutory Central Auditors (SCAs) and Statutory Branch Auditors in Public Sector Banks (PSBs), which covers the norms on eligibility, empanelment and selection as well as the procedure for appointment of such auditors.

MCA notifies new provisions for Issue of shares on private placement basis - Notification No. File No. 1 /21 /2013-CL-V - (07/08/2018)

Registration U/s. 12AA cannot be denied for non-filing of books & vouchers - B.S.A. College Vs CIT (ITAT Agra)

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Application of IEC simplified and auto generated:
DGFT revises FTP para 2.05 and HBP para 2.08 with regards to IEC and modification of IEC vide notification no. 24 dt. 08.08.2018 and public      notice no. 27 dt. 08.08.2018

As per the amendments,

1. Only those service exporters who wish to take chapter 3 benefits under FTP are required to take IEC.

2. Procedure of IEC online has been moved from FTP para 2.05 to HBP para 2.08

3. IEC will now be issued by system auto generated and applicant will be informed through e-mail and sms. Applicant can also view and print E-IEC from IEC module on DGFT website.

4. Requirement of digital signature is also done away with for application of IEC /modification of IEC

The old IEC module is closed from 5pm on 8th aug. And new IEC module will be active from 9th aug 2018 - 11am.

notification 24/2015-20 dt. 08.08.2018
http://www.dgft.gov.in/sites/default/files/notification-24-8.8.18%28e%29.pdf

public notice no. 27/2015-20 dt 08.08.2018
http://www.dgft.gov.in/sites/default/files/pn-27-8.8.18%28e%29_0.pdf
Submission of moc & adverse comments in mef-2018-19 have become optional.

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*👉🏻Cabinet approves signing of MoU with India-Canada CA Institutions*
(Cabinet approved the signing of the Memorandum of Understanding (MoU) between Institute of Chartered Accountants of India (ICAI) and Chartered Professional Accountants of Canada (CPA Canada)
👇🏻 👇🏻 👇🏻
https://goo.gl/fVx1QD

*👉🏻CBDT to scrutinise 0.35% Income Tax returns filed last year*
(CBDT Chairman Sushil Chandra said the income tax department picked only 0.35 per cent tax evasion cases for scrutiny of the 68.6-million returns filed for the 2018-19 A.Y.)
👇🏻 👇🏻 👇🏻
https://goo.gl/iUvejq

*👉🏻SC asks NCLT to deal with insolvency proceedings against Jaypee group*
(SC asked NCLT to deal with the insolvency proceedings against Jaypee Infratech Ltd and barred the group or its promoters from participating in the fresh bidding process)
👇🏻 👇🏻 👇🏻
https://goo.gl/T8KyhQ

*👉🏻Bank of Baroda invites applications for Appointment of Concurrent Auditors*
(Appointment of Concurrent Auditor For each of the following Zones of Bank of Baroda Namely Ahmedabad Zone and Mumbai Zone To carry out Concurrent Audits of branches/RLBO/CBOs/TFBO/CPC/Other Units)
👇🏻 👇🏻 👇🏻
https://goo.gl/dZP4Qa

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Abridged Board’s Report for Small Companies and OPCs
August 10, 2018[2018] 96 taxmann.com 191 (Article)16 Views
Simran JalanExecutive, Vinod Kothari & Company
Background

1. MCA vide its notification dated July 31, 20181 has brought out the Companies (Accounts) Amendment Rules, 2018 which broadly deal with two changes:

1. Additional disclosures for companies other than small companies and OPCs;
2. Abridged list of contents for small companies and OPCs
Even though the aforesaid amendment to the said Rules have been brought in line with the proposed changes in section 134 of the Companies Act, 2013 ('CA, 2013') under the Companies (Amendment) Act, 2017, yet, the said amended section has not been enforced till date.

Additional disclosures for companies other than small companies and OPCs

2. The additional disclosures required to be made are with respect to:

♦ Maintenance of cost records in accordance with section 148(1) of the CA, 2013 in case the same is applicable on such company.
♦ A statement on constitution of Internal Complaints Committee under the Sexual Harassment of the Women at workplace (Prevention, prohibition and Redressal) act, 2013.
Relief for small companies and OPCs

3. The Rules state that small companies and OPCs are not required to make the disclosures stated under Rule 8. Instead, as per Rule 8A of the aforesaid Rules, an abridged list of disclosures have been given for small companies and OPCs, which are as follows:

♦ The web address of the company, where the annual return has been placed;
♦ Number of meetings of the Boards;
♦ Director's Responsibility Statement;
♦ Details of frauds reported by auditors to Central Government as per section143(12) of the CA, 2013;
♦ Explanations or comments by Board on every observation made by the auditor in his report;
♦ The state of the Company's affairs;
♦ The financial summary or highlights;
♦ The material changes in the nature of business and its effect on the financial position of the Company;
♦ The details of appointment/resignation of directors;
♦ Details of material orders passed by regulators/courts/tribunals which can impact the going concern status of the company and its operations in future;
♦ The Board's Report shall also include the particulars of the contract or arrangements entered into with related parties as per section 188(1) of the CA, 2013 in the Form AOC-2.
Conclusion

4. Following the aforesaid changes, there are basically three categories of board's report:

Category ICategory IICategory III

Listed Company and Public Company with PUSC2 of Rs.25 crores or more

Unlisted Company and every public company with PUSC of less than Rs. 25 crores
Small Companies and OPCs
All the matters in the Board's report as specified in Section 134(3) of the CA, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014 ('Account Rules').

All matters in the Board's report as specified under section 134 (3) of the CA, 2013, read with Rule 8 of the Accounts Rules except for the following:

♦ Section 134 (3) clause(p)

"a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors;"

♦ Rule 8 sub-rule (4) of the Accounts Rules

"a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors."

All the matters in the Board's report as specified under Rule 8A of the Accounts Rules.

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🔊 The following changes will come in to existence for GST :

Period : July 2018 to March 2019.

1.  GSTR 3B- as usual i.e by 20th of next month.

2. GSTR1 -for turnover upto 1.5 cr

A. July 18- Sep 18- by 31st oct 2018.

B. Oct 18- Dec 18- by 31st Jan 2019.

C. Jan 19- March 19- by 30th october 19.

3. GSTR1- For turnover above 1.5 cr.- by the 11th of the following month.
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SEBI

SEBI has constituted a Committee on Fair Market Conduct in August, 2017 under the Chairmanship of Shri T.K. Viswanathan, Ex-Secretary General, Lok Sabha and Ex- Law Secretary. The Committee was mandated to review the existing legal framework to deal with market abuse to ensure fair market conduct in the securities market. The Committee was also mandated to review the surveillance, investigation and enforcement mechanisms being undertaken by SEBI to make them more effective in protecting market integrity and the interest of investors from market abuse. The Committee comprised of representatives of law firms, mutual funds, brokers, forensic auditing firms, stock exchanges, chambers of commerce, data analytics firms and SEBI. The committee has submitted its report to SEBI on August 08, 2018 wherein it has recommended amendments to SEBI Act,1992, SEBI (Prohibition of Insider Trading) Regulations, 2015 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Markets) Regulations, 2003. SEBI has invited Comments from public are invited on the recommendations given by the Committee on Fair Market Conduct, in the prescribed format, latest by August 24, 2018.

 

DGFT

DGFT Authorities have made Amendments to Handbook of Procedure 2015-2020 and accordingly, Application of iec is now simplified and shall be auto generated. DGFT revises FTP Para 2.05 and HBP Para 2.08 with regards to IEC and modification of IEC. According to the amendments, Only those service exporters who wish to take chapter 3 benefits under FTP are required to take IEC; Procedure of IEC online has been moved from FTP Para 2.05 to HBP Para 2.08. Further, IEC will now be issued by system auto generated and applicant will be informed through e-mail and sms. Applicant can also view and print e-IEC from IEC module on DGFT website. Requirement of digital signature is also done away with for application of IEC /modification of IEC. The old IEC module is closed from 5 pm on 8th August, 2018 and new IEC module will be active from 9th August, 2018 at 11am.
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How many e-way bills are required to be generated to ship a consignment to a customer involving multiple transporters (having different Transporter IDs) in between?

How will the one invoice-one e-way bill validation be complied here since end customer is only one?

One e-Way bill needs to be generated against the Invoice.

Above situation is known as “Transshipment”.
Transporter can also re-assign another transporter by updating transporter ID on the eway bill portal.
Once transporter re-assigns another transporter, seller cannot make any changes to assigned transporter.
So, the user has to generate different delivery challans against the invoice based on the different Transporter ID, because different e-way bills against a single invoice is not possible and will also cause the problem in populating the data in the GSTR-1.
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EWAY Bill

Is e-Way bill required, if the value of shipment per customer per day exceeds Rs 50,000* ?

How will we take multiple invoices under single e-way bill?

Here, it depends whether the supplier himself is the transporter or not. If he is the transporter, then he is required to generate the e-way bill for all the invoices but if not, then the transporter will be required to generate the e-way bill against all the invoices in the Vehicle.