AAR Ruling:- Supplier is required to pay GST on sales in the month of sales, but he is not eligible to take ITC of very same goods purchase but not received
The Input tax credit can be availed only and only on the physical receipt of the goods by the applicant. Legal provisions in this regard are clear to the extent that where the goods invoiced are received in lots and installments, the registered person shall be entitled to take a credit upon the receipt of the last lot or installment. So physical delivery/receipt of goods is mandatory for the availment of an input tax credit. It covers the situations where the goods are supplied on "Bill to-Ship to" basis. Therefore, input tax credit on goods is only available when the applicant has received the goods.
Authority of Advance Ruling (AAR) Haryana in case of M/s Pasco Motor LLP vide its Ruling No:- HAR/HAAR/R/2018-19 11
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Place of supply & State to be mentioned on all invoices in case of inter-State supply: (Circular No. 90/09/2019-GST)
All registered persons making supply of goods or services or both in the course of inter-State trade or commerce need to mandatorily specify the place of supply along with the name of the State in the tax invoice in terms of rule 46(n) of the CGST Rules, 2017.
Non-compliance of the said provision will attract penalty under sec 122 or 125 i.e. penalty up to Rs. 25,000/-.
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👉Government Detects GST Evasion of Rs 20,000 Crore between April 2018 and February 2019, out of which 50% i.e. Rs 10,000 crore has been recovered
👉CBDT Chairman P C Mody directs Income Tax Officials to Shore Up Revenue Collection without Harassing Taxpayers. The directives come at a time when the Department is grappling to achieve the Direct Tax Collection Target. The Income-Tax (I-T) Department has to collect Rs 4.2 Lakh Crore to meet the revised target this financial year.
👉The Income Tax Refund Process will be issued through online only from March 2019. The amount will be credited to the Bank Account Linked with the PAN. Further, the taxpayers have to pre-validate your bank account with the Income Tax E-Filing Portal to receive a tax refund.
👉SEBI plans to put in place a Stricter Framework for providing Exemption from Open Offer Requirements with respect to Corporate Debt Restructuring Activities. It is planning to do away with the provision that allowed a ‘Competent Authority’ to Exempt an Acquirer from the requirement of an open offer. Only a court or a tribunal would be allowed to provide such exemptions
👉RBI will infuse Rs 1 Lakh Crore in cash into the Banking System to ease Liquidity, which normally remains tight ahead of the Financial Year-End. It will conduct 4 Long-Term Variable Rate Repo Operations, mechanism to increase cash.
👉Govt. is looking at the possibility of Merging Regional Rural Banks (RRBs) operating within the Same State and has urged the State-Owned Banks to explore such options, as it wants further consolidation among RRBs. It eventually wants to bring them down to a more manageable number of 10-15. There are 56 RRBs functioning in the country, and SBI is the biggest sponsor with 14 RRBs. Already, around 10 have been merged which will be effective from April 1 this year.
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Omission by Chartered Accountant Reasonable Cause for not claiming Refund in Time: Delhi High Court [Read Judgment]
Read more at: https://www.taxscan.in/chartered-accountant-reasonable-cause-delhi-high-court/33757/
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🏢Upload registered office details- MCA has released the form INC-22A
It has become applicable from today and needs to be filed on or before 25th April, 2019. If not filed, then after 26th April, 2019 the company status will be shown as “ACTIVE non compliant”. Now the filing fees is NIL upto 25th April, 2019. Thereafter the filing fees will be Rs.10,000/- per form.
The 14 requirements for this form are as follows:
1) Photo of the registered office is required – One Photo of the exterior of the building showing the name of the building and another photo of the inside of the registered office is required.
2) Photo of the Director signing by DSC is required. Therefore, please take photograph of the Director sitting inside the registered office is required. Please take frontal photo of the Director.
3) Both photos to be in PDF format.
4) If there is no activity in the registered office, then please show some activity. The name board of the company should be affixed outside the commercial premises of the company indicating therein the name, address, CIN, telephone no. e-mail id, website address, if any, GSTIN, if any. In case any registered office does not have any business activity, then please ensure change in registered office before filing of this form.
5) e-mail id of the company – such as contact@abc.com or office@abc.com or if it is yahoo mail – companyname@yahoo.com. E-mail id in the name of directors, auditors or third persons will not be allowed.
6) e-mail id is subject to OTP;
7) in the address field, the latitude and longitude of the registered office is required to be given. This can be obtained from Google maps.
8) list of all directors as on date of filing – all directors’ DIN should be in active mode. if the KYC of any Director is not done, then it is better to get to done immediately before filing this form
9) details of statutory auditors appointed;
10) details of cost auditors, if any;
11) details of MD, CEO or WTD of the company – in case company is required to have a MD or WTD as per the Rules, then it should have it or else appointed before filing of this form. MD required in case of listed companies or public companies with paid up share capital of more than Rs.10 crores.
12) details of company secretary – in case the company is required to appoint a company secretary as per the Rules and it does not have, then it is better to appoint one before filing of this form. CS is mandatorily required in listed companies, public companies with paid up share capital of more than Rs.10 crores or private company having paid up share capital of more than Rs.5 crores.
13) details of CFO – in case the company is required to appoint a CFO as per the Rules and it does not have, then it is better to appoint one before filing of this form. CFO is required in listed companies or public companies with paid up share capital of Rs.10 crores or more.
14) details of annual filing for financial year 2017-18. In case the annual e-forms i.e. AOC-4 & MGT-7 for FY 2017-18 is not filed, then it is better to have these forms filed first before filing form INC-22A.
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👉Cabinet approves Rs1,450 Crore for the Share Capital of RBI in the National Housing Bank(NHB). Subsequent to the payment of this amount to RBl, the subscribed capital of NHB shall stand transferred to and vested in the Central Government.
👉SEBI wants the Govt to do away with the practice of its board having a nominee from the RBI, or alternatively provide for a Cross-Representation of the 2 regulators on each other's boards.
👉RBI approves Amalgamation of 'DBS Bank, India' with 'DBS Bank India', the entity which has been granted permission to operate as a Wholly Owned Subsidiary (WOS) of the Singaporean lender. It can be noted that DBS used to operate in the 'Branch Model' and is among the first Foreign Lenders to come forward and operate as a WOS.
👉RBI Constitutes a Task Force headed by Former RBI Deputy Governor Usha Thorat to examine issues related to Offshore Rupee Markets and Recommend Policy Measures to Ensure Stability of the External Value of the Domestic Currency.
👉RBI and Bank of Japan completes signing of the Bilateral Currency Swap Agreement for $75 billion that will help in bringing greater stability in foreign exchange and capital markets in the country.
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📥New Messages from GSTIN
1. Dear Taxpayer,The ITC for the domestic purchases for Oct-Dec 2018 claimed in GSTR-3B exceeds Rs.1.00 lakh when compared with the credit available in GSTR-2A
2. Dear Taxpayer, you have under reported tax liability in GSTR-3B as compared to GSTR-1 by more than Rs. 1.00 lakh for Oct-Dec 2018. Please take corrective action
Please take Corrective Actions if require i.e. Recheck ITC & Output Tax and do ITC reversal or deposit Tax in next returns.
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📋SEBI Board Meeting
The SEBI Board met in New Delhi today and took the following decisions:
I. Amendments to SEBI (Infrastructure Investment Trusts) Regulations, 2014 and the SEBI (Real Estate Investment Trusts) Regulations, 2014
The Board considered and approved the following Amendments to SEBI (Infrastructure Investment Trusts) Regulations, 2014 and the SEBI (Real Estate Investment Trusts) Regulations, 2014:
1. The minimum allotment and trading lot for publicly issued InvITs and REITs shall be in following manner:
a. Allotment by REIT/InvIT shall be made in the multiples of a lot, each consisting of 100 units.
b. Value of such allotment lot for InvITs shall be Rs one lakh and for REITs shall be Rs fifty thousand.
c. After listing trading will be in multiple of one lot.
2. The leverage limit for InvITs increased from existing 49% to 70% of InvIT assets. The enhanced limit shall be subject to certain additional disclosure and compliance requirements, such as,
a. The consolidated debt of the InvIT and the project debt, have a credit rating of AAA or equivalent from a rating agency registered with the Board;
b. The InvIT has a minimum track record of 6 distributions on a continuous basis, post listing, in the years just preceding to the Financial Year in which the enhanced borrowings are proposed to be made.
3. A separate framework for privately placed unlisted InvITs, which provide sufficient flexibility to both issuers and investors shall be created. These include, inter alia the following:
a. The minimum number of investors shall be as determined by the issuer including the maximum holding of units by a single investor;
b. Leverage shall be as determined by the issuer after consultation with investor(s);
c. The underlying assets can be completed, under construction or both;
d. The minimum investment by an investor shall not be less than Rs 1 crore.
II. Framework for Innovators Growth Platform
The Board, in its last meeting held on December 12, 2018, approved, in principle the proposals for the amendments to the Regulations pertaining to the Institutional Trading Platform (“ITP”) in the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”). One of the aforesaid proposals pertains to Accredited Investors (“AIs”) for the purpose of the Innovators Growth Platform (“IGP”). The Board has now approved the framework for the process of accreditation of investors for the purpose of IGP. Under the framework, the investor, having a demat account with a Depository, will make an application to the Stock Exchanges/Depositories in the manner prescribed by them for recognition as an AI. The Exchanges/ Depositories will grant accreditation to investors subject to their eligibility, which shall be valid for a period of three years.
III. Corporate Debt Restructuring
The Board approved that, in the context of corporate debt restructuring, exemptions from applicability of conditions for preferential issue provided in SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations) and from the obligation of making an open offer provided in SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Regulations”) will be restricted to all scheduled commercial banks (excluding Regional Rural Banks) and all India Financial Institutions for acquisitions in their ordinary course of business. Such exemptions will not be available for acquisition of shares by persons other than aforesaid lenders by way of allotment by the target company or purchase from lenders. The Board also noted that relevant exemptions including open offer obligations are available under the aforesaid SEBI Regulations for acquisition pursuant to a resolution plan approved under Insolvency and Bankruptcy Code. Further, Takeover Regulations provide for exemption from open offer for any acquisition pursuant to a scheme of arrangement / reconstruction pursuant to an order of a court or a tribunal or a competent authority under any law or regulation, Indian or foreign. The Board has approved that the reference to approval by “Competent Authority” in the Takeover Regulations shall be deleted.
IV. Valuation of money market and debt securities by Mutual Funds
1. The Board after deliberation approved, inter-alia, the following proposals to make the existing valuation practices more reflective of the realizable value of money market and debt securities with residual maturity upto 60 days
a. The residual maturity limit for amortization based valuation by Mutual Funds shall be reduced from existing 60 days to 30 days.
b. The threshold maintained between reference price and valuation price shall be
±0.025%. Further, reference price shall be taken as security level price given by the valuation agencies.
2. Further, the Board also approved inter-alia the following proposals to *bring uniformity and consistency across the Mutual Fund industry on valuation* of money market and debt securities rated below investment grade:
a. The valuation agencies appointed by Association of Mutual Funds in India (AMFI) may provide valuation of money market and debt securities rated below investment grade.
b. As Asset Management Companies are responsible for fair valuation, they may deviate from the valuation provided by the valuation agencies subject to recording of detailed rationale for such deviations, appropriate reporting to the Board of AMC and Trustees and appropriate disclosures to investors.
V. Participation of Institutional Investors in Commodity Derivatives Markets in India
The Board deliberated and approved the proposal contained in the memorandum to enable participation by Mutual Funds and Portfolio Managers in Exchange Traded Commodity Derivatives in India subject to certain safeguards. Further, Category – III Alternative Investment Funds which are already permitted to participate in Commodity derivatives, have now been permitted to deal with goods received in delivery against physical settlement of such contracts, if any.
VI. Amendments to SEBI (Debenture Trustee) Regulations, 1993, SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and SEBI (Listing Obligations and Disclosure Requirements), 2015
In order to secure the interests of the debenture holders and to enable Debenture Trustees (DTs) to perform their duties effectively and promptly, SEBI Board has approved amendments to the regulatory framework for DTs which, inter-alia, include the following:
1. The minimum net worth requirement of a DT shall be increased from existing Rs. 2 crore to Rs. 10 crore.
2. The requirement of calling for a meeting of debenture holders in the event of default in payment obligation by issuer in case of public issue of debt securities shall not be obligatory.
3. E – Voting shall be a valid option for DTs to obtain consent of the debenture holders wherever applicable.
4. In case of delay in creation of charge in favour of DT within the specified period, the issuer shall pay additional interest as specified in the Trust Deed and disclosed in the Offer Document to the debenture holders for the period of delay in creation of charge.
5. In case of issuers having both listed equity and debt securities, the certificate from the DT as per the requirement of Reg.52 (5) of LODR shall be submitted to the stock exchange(s) by the issuer within 7 working days from the date of submission of financial results to the stock exchange(s).
VII. Permitting permanent registration to Custodians
The Board approved the proposal to amend the SEBI (Custodian) Regulations, 1996 to grant permanent registration to custodians instead of periodical renewal every three years. This will facilitate ease of doing business for the custodians.
VIII. Revision of SEBI’s fee structure
SEBI has been following the practice of calibrating the fees either upwards or downwards from time to time so as to keep a balance between the transaction cost on Securities market and the financial resources required to ensure regulatory efficiency. Keeping this objective in mind and taking into consideration the projected income and expenditure of SEBI for the next 3 financial years, the Board has decided to revise the fee structure w.e.f. April 01, 2019, in respect of certain market participants, which are as under:-
1. The fees payable by brokers has been reduced by 33.33%, i.e. from Rs.15/- per crore of transactions to Rs.10/- per crore of transactions.
2. The fees payable by brokers for Agri-Commodity derivatives transactions has been reduced by 93.33%, i.e. from Rs.15/- per crore of transactions to Rs.1/- per crore of transactions.
3. It has been decided to reduce the fees payable by the issuers for one refiling of offer documents by 50% from the current levels, if the refiling is done within one year of validity of observation letter.
4. In order to rationalise the regulatory fee rate payable by the stock exchanges, it has been decided to reduce this fee rate by 80% from the current Rs. 1 cr plus Rs. 6/- per crore for the turnover in excess of Rs. 10 Lac crore to Rs. 1 cr. Plus Rs. 1.20/- per crore for the turnover in excess of Rs. 10 Lac crore without any upper ceiling.
