Analysis of NCLT Judgement in Andhra Bank vs. Sterling Biotech Ltd.
Resolution Professional was entitled to hold the meetings and take a decision on CIRP within the statutory period and after the expiry of 270 days, any such decision cannot be taken by the Resolution Professional.
Read full case analysis at : https://dasgovernance.com/2019/04/19/analysis-of-nclt-judgement-in-andhra-bank-vs-sterling-biotech-ltd/
.
=========>
.
MCA Update :
Forms to be filled for this year:
# Initial MSME 1 : within 30 days from date of availability of form on MCA portal
# One time DPT 3 : within 90days from date of notifications i.e 20th April 2019
# E form Active ( INC 22A) : on or before 25the April 2019
# DIN 3KYC : on or before 30th April 2019
# MSME 1 (1st half) : on or before 30th April 2019
#Annual DPT 3 : on or before 30th June 2019
# Annual Filling AOC 4: on or before 30th October 2019
# MSME 1 (2nd half) : on or before 30th October 2019
#Annual Return MGT 7: on or before 29th November 2019
.
=========>
.
Notice to Samsung for not passing GST cut benefit to consumers:
READ MORE- https://www.gststation.in/notice-to-samsung-for-not-passing-gst-cut-benefit-to-consumers/
.
=========>
.
CBDT has notified changes in Form 16, the certificate issued by employers for tax deducted at source (TDS) for salaried employees, seeking disclosure of more details, especially about exempt allowances.
Form 16 is a certificate issued by an employer detailing the TDS deducted with respect to payment to its employees. According to current income tax rules, every employer is required to issue the Form 16 with details of the salary paid and tax deducted at source of each of its employee. The Form 16 is usually issued by mid-June.
Tax department has sought detailed bifurcation about exemptions taken by salaried employees under Section 10 of Income-tax Act, which include leave travel allowance (LTA), life insurance, pension, gratuity, leave encashment, transport allowance and house rent allowance.
Earlier, where the disclosure of various deductions was mentioned in a consolidated manner, ranging from 80C, 80CCD, 80E, 80G would now be required to be disclosed separately
It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources.
The Standard deduction which was introduced has to be mention separately in Form 16
The above changes will help in scrutinising income tax returns (ITRs) more precisely and plug possibility of tax leakage.
PAN of Lender Mandatory in case of Loan for House Property
The notified changes in Form 16 and Form 24Q, the quarterly TDS statement with respect to salaries, would be effective from May 12. The tax department has also made it mandatory for employer to furnish Permanent Account Number (PAN) of the lender other than a financial institution in case the employee has taken loan for house property and claimed deduction for interest paid. Permanent Account Number of landlord shall be mandatorily furnished where the aggregate rent paid during the previous year exceeds one lakh rupees. Permanent Account Number of lender shall be mandatorily furnished where the housing loan, on which interest is paid, is taken from a person other than a Financial Institution or the Employer. Remuneration for Other Employer also need to disclose separately.
The revised Form, which has been notified by the Income Tax department, will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16
.
=========>
.
HC dismisses petitions against arrest by GST officials:
READ MORE- https://www.gststation.in/hc-dismisses-petitions-against-arrest-by-gst-officials/
.
=========>
.
👉CBDT places the report of the Committee on Profit Attribution on Online Public Domain and invites Suggestions/Comments to be furnished electronically within 30 days from the date of publication. The document can be accessed at www.incometaxindia.gov.in and comments can be sent to email address: usfttr-1@gov.in.
👉RBI proposes that Fintech Start-Ups could set up Regulatory Sandbox or Live-Testing of Innovative Products and Services in Segments such as Retail Payments, Money Transfer, Artificial Intelligence and Data Analytics in the Financial Sector
👉In the absence of general guidelines from the RBI, State Bank of India (SBI), on behalf of the Lenders’ Consortium, seeks Special Permission from the RBI for conversion of Debt into Equity in Jet Airways (India) Ltd. This comes after the Supreme Court quashed the RBI’s 12 February circular allowing such conversions in Companies with Negative Net Worth.
👉SBI plans to raise $2.5 Billion (about Rs 17,000 Crore) through Bonds to Fund Expansion of Overseas Business. The Executive Committee of the Central Board will take a decision in this regard on April 24
👉Central Government, constitutes a Tribunal to resolve the disputes relating to the ICAI Election held in December 2018
.
=========>
.
Smaller accountancy firms want India to implement UK regulator report on big four
The CMA report called for a separate management, CEO and board for the audit practice, besides a separate bonus and compensation structure.
Non-Big Four accounting firms in India have seen their market share erode over the last two decades due to dominance of the big firms.
Mumbai: A report by UK’s competition watchdog calling for operationally splitting up the big four accountancy firms — Deloitte, PwC, EY and KPMG — could lead to some action in India too, industry trackers say.
Smaller accountancy firms in the country want Indian regulators to implement the radical proposals, such as operationally splitting the Big Four’s audit and non-audit businesses and mandatory joint audits, put forth in Competitions and Markets Authority’s report, the sources said.
Market regulators across the globe have been keenly anticipating the CMA report because it examined globally relevant contentious issues such as the oligopolistic structure of the audit market and inherent conflict of interest amongst audit and non-audit businesses of the firms.
In India, too, the Big Four firms are in the spotlight after corporate failures like IL&FS and Jet Airways. The CMA report called for a separate management, CEO and board for the audit practice, besides a separate bonus and compensation structure.
It also suggested mandatory joint audits with non-Big Four firms because the current structure of the industry heavily favoured Big Four firms and restricted choice.
The report also highlighted a need for more robust regulatory oversight of the audit committees to make them more accountable. Over the years, the audit market has consolidated from Big Eight firms to Big Four and experts feel that the market structure limits choice and is not resilient.
Implementing the Competitions and Markets Authority’s proposals will help increase choice in the market, end the Big Four oligopoly, and fix other longstanding problems, their smaller rivals said.
ADVERTISEMENT
“Indian regulators can start joint audits with Nifty 50 and then extend based on their experience,” said Vishesh Chandiok, CEO at Grant Thornton India.
“The report recommendations present an immensely progressive view of how to finally address the ‘demand side’ problems in the large audit market that will spread from the UK to other major markets and address this issue of auditor choice once and for all. It’s definitely the end of this long standing oligopoly and finally moving towards a free and transparent market,” he said.
All solutions proposed for these issues until now had stopped short of addressing how to create demand for challenger firms outside the big firms and little was done to focus on audit quality, top executives in smaller firms said. They believe supply side barriers on capability and capacity are not difficult to build if there was demand.
Non-Big Four accounting firms in India have seen their market share erode over the last two decades due to dominance of the big firms.
Experts said deeper reforms such as mandating joint audits are needed to fix quality issues. “If joint audit is being introduced, this would redefine the way audits would be delivered by audit firms,” said Milind Kothari, CEO at BDO India.
.
=========>
.
Analysis of SAT Judgement in Jignesh Shah vs. SEBI
The proximity of time between the buy and sell orders may not be conclusive in an isolated case, however, if such trades take place over a period of time then such trades could be considered to have been executed by way of fraudulent/ manipulative exercise with prior meeting of minds.
Read full case analysis at : https://dasgovernance.com/2019/04/20/analysis-of-sat-judgement-in-jignesh-shah-vs-sebi/
.
=========>
.
CBDT has directed the Income-Tax Department to initiate penalty proceedings by June 30 against non-filers and ‘drop filers’ of tax returns. According to the non-filer monitoring system (NMS) of the I-T department, data for 20.4 million non-filers has been obtained between 2013 and 2017, of which 2.5 million are those who are inconsistent — popularly known as ‘dropped filers’.
CBDT Committee on 'Profit Attribution to Permanent Establishment (PE) in India' said MNCs that are incurring global losses or a global profit margin of less than 2 per cent and have operations in India will be deemed to have made a profit of 2 per cent of Indian revenue or turnover and will be taxed accordingly.
All Companies which got incorporated on or before 31st Dec 2017 shall file Form ACTIVE-INC-22A on or before 25th April 2019, thereafter late fees of 10,000 shall be levied.
RBI has released a draft framework for setting up a regulatory sandbox (RS) or live testing of products or services by fintech firms. The draft framework suggested that areas that can potentially get a thrust from the RS include microfinance, innovative small savings and micro-insurance products, remittances, mobile banking and other digital payments.
.
=========>
.
👉Hyderabad Bench of ITAT in the case of Shri Challa Ramakrishna Anantapur v. ACIT holds that u/s 45(2) stock-in-trade can be considered as transferred only in the year in which the assessee had ‘executed the sale deed transferring the stock-in-trade.
👉Telangana HC dismisses a petition seeking a direction to the Hyderabad GST Commissionerate officials not to arrest them and set aside summons issued.
👉Uttarakhand HC in the case Director of Income Tax International Taxation v. M/s. Schlumberger Asia Services Ltd. holds that the amount reimbursed to the assessee (service provider) by the ONGC (service recipient), i.e. the service tax paid earlier by the assessee to the Govt of India, would not form part of the aggregate amount referred to in clauses (a) and (b) of sub-section(2) of Section 44BB of the Income Tax Act.
👉RBI sets up an inter-regulatory WG under the chairmanship of Executive Director, Department of Banking Regulation (DBR) to look into and report on the granular aspects of FinTech, to leverage on the developments in FinTech space.
👉The Directorate General of Anti-Profiteering (DGAP) serves a notice on technology major Samsung India for allegedly not passing on the benefits of GST reduction to its customers and in turn making undue profits.
👉Muted Govt spending and high election-related spending creates a liquidity deficit of Rs 70,000 crore in the banking system, stymieing the RBI's record liquidity infusion via bond purchases and the innovative dollar-rupee swap, blunting the recent rate cut and clogging the efficacy of policy transmission. The deficit is at Rs 70,266 crore on April 16 compared to Rs 31,396 crore on April 3, data from the Bloomberg India.
👉The Indirect Tax Dept that had arrested many promoters for circular trading and escaping goods and services tax may have to rethink its strategy after the Mumbai High Court granted bail to many of them.
.
=========>
.
GST Alert:
Due date for GSTR-3B for the month of March 2019 is extended to 23rd April 2019
