Navigate

Tuesday, 30 April 2019

30 April 2019 Updates 💡

Supreme Court vs RBI: Naming and shaming will curb wilful defaults, usher in transparency – https://www.financialexpress.com/industry/banking-finance/supreme-court-tells-rbi-to-disclose-loan-default-info-under-rti-naming-and-shaming-will-curb-wilful-defaults-usher-in-transparency/1560037/

👉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 GST. 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.

👉RBI gets SC ultimatum on RTI Act disclosures. The Supreme Court orders the RBI to disclose its Annual Inspection Reports of Banks, along with the list of Wilful Defaulters and information related to them under the RTI Act.

👉RBI to introduce new 'Greenish-Yellow' Rs 20 Note shortly

👉SEBI reduces Minimum Net Worth Requirements for Clearing Corporations operating in International Financial Services Centre (IFSC)

👉YES Bank reports a surprise loss of Rs 1,506.64 crore for the quarter ended March 31 on spike in provisions and contingencies.

.
========>
.
Recent and Important Changes in GST

1. AAR Ruling:- 18% GST is applicable on licensing services for right to use minerals including its exploration & evaluation [Read Order]:: http://www.taxknowledge.in/gst/5caf0b6106ac1065082a17a0

2. AAR rejected application for seeking advance ruling on the ground as applicant has not deposited fees  [Read Order] :: http://www.taxknowledge.in/gst/5ca3360b06ac1065082a177e

3. Big shock to the assessee as HIGH COURT confirmed action of department for charging interest in GST on gross amount without giving benefit of ITC available, despite of council meeting wherein they have recommended interest to be paid on net tax liability

High Court:- Be Ready to pay more by way of interest as High Court confirmed action on charging interest u/s 50 on gross basis without giving benefit of ITC [Read Order]:: http://www.taxknowledge.in/gst/5cbda67506ac1065082a17be

4. CBIC has released new functionalities on GST website [Read More]:: http://www.taxknowledge.in/gst/5cbebb5406ac1065082a17c1

5. New RCM for promoter of Residential Real Estate Project [Read More]:: http://www.taxknowledge.in/gst/5cbd9cfb06ac1065082a17b

5. CBIC has issued various Notifications/Circulars on 23.04.2019 [Read Circular/Notifications]:: http://www.taxknowledge.in/gst/5cc010d506ac1065082a17c9

6. CBIC:- GST Return Non-filers wont be able to generate E-way Bills from 21st June 2019 [Read Notification]:: http://www.taxknowledge.in/gst/5cc00ca406ac1065082a17c8

7. CBIC clarified about how ITC can be utilized towards payment of GST tax by way of circular [Read Circular]:: http://www.taxknowledge.in/gst/5cbff94b06ac1065082a17c7

8. Good News for Composition Dealer under GST as due date of filing GST Return has been changed for composition dealer [Read Notification]:: http://www.taxknowledge.in/gst/5cc05bac06ac1065082a17cc
.
========>
.
CAPITAL MARKET UPDATES🏦
April 29 - May 05, 2019

✅ In spite of declining refining margins, Reliance Industries posted 10% higher PAT for Q4 on account of good business from Jio. Accumulate.

✅ NBCC has revised its bid to acquire debt-ridden Jaypee Infratech and complete over 20,000 delayed apartments in  Noida. Buy for the long term.

✅ Ultratech Cement posted excellent results for Q4 on account of an improved sales mix on acquiring Binani Cement  last year. Accumulate.

✅ Coal India is finding ways to help importers reduce their dependence on foreign supplies. This move will boost its  profitability. Buy for the long term. 

✅ With about 8% higher PAT for Q4, ICICI Lombard General Insurance Co. is likely to fare well going forward. Buy for the long term.

❎ The grounding of Jet Airways is a clear signal. Avoid companies with high leverage. 

✅ Aided by strong credit growth, RBL Bank posted about 39% higher PAT for Q4. This trend is likely to continue. Buy.

⁉ Volumes in the PC Jeweller counter are rising on expectations of a good FY19 performance. Investors with a small risk appetite may enter with a strict stop loss.

✅ With recovery in the power sector, transmission and distribution (T&D) companies are likely to report higher profitability, which in turn will help them reduce their debt. Buy Power Finance Corporation. 

✅ IPCA Laboratories has acquired Ramdev Chemical. A big positive for the company. Accumulate.

✅ In spite of a small blip in profitability due to higher provisioning, IndiaBulls Housing Finance declared an interim dividend of Rs.10/share. The demand for housing finance, which was stagnant in the last quarter due to GST implications, is likely to improve. Buy.

✅ Volumes at the ITC counter are rising on expectations of a good FY19 performance. The stock has the potential to rise by about 20% in the next six months.

❎ Tata Global Beverages disappointed the markets with a huge one-time loss from an associate company. The stock may fall up to 40%. Sell now and buy later.

✅ Mahindra & Mahindra Financial Services posted a 47% jump in Q4 PAT and declared a special dividend. Buy for the long term.

❎ ICICI Prudential Life Insurance Co. posted lower PAT for Q4 in spite of 14% growth in premium. The pressure is likely to continue for some time. Sell now and buy later. 

✅ Oil & Natural Gas Corp. shows signs of revival with USA’s attempt to squeeze supplies from Iran. Buy for the long term.

✅ Muthoot Capital Services posted 15% lower PAT on account of lower two-wheeler sales. Stay away from this 
counter for a while.

✅ A recent study reveals that one out of every four Bombayite is a diabetic patient. Buy Biocon for the long term.

✅ Religare Enterprises is focused on improving its business prospects by restructuring its debt or considering other  options. Buy selectively.

✅ Volumes in the Grasim Industries counter are rising as the paper pulp and cement sectors are expected to fare well in the coming quarters. Accumulate.

✅ French car maker Groupe PSA plans to source €2 billion worth of components from India over the next 3-5 years. A big positive for companies like Rico Auto Industries. 

✅ Saksoft is set to notch an EPS of Rs.45+ for FY19. The stock is poised to touch Rs.400.

✅ Funds and HNIs are accumulating HCL Technologies on expectations of a robust Q4 performance. The stock is likely to touch Rs.1400.

✅ Shreyans Industries is set to notch an EPS of Rs.32 for FY19. Buy for about 30% returns in the short-to-medium term.

✅ Indiabulls Real Estate plans to sell a London property for £200 million to Sameer Gehlaut (group founder) to pare debt. The stock can rise by about 30% in the short-to-medium term.

✅ An Ahmedabad-based analyst recommends Bank of Maharashtra and Super Crop Safe.
.
========>
.
.
========>
.
Analysis of Supreme Court Judgement in The Government of Haryana PWD Haryana Branch vs. M/s. G.F. Toll Road Pvt. Ltd. & Ors.

In first entry, the words “is an” indicates that the person so nominated as an Arbitrator is only disqualified if he/she is a present/current employee, consultant, or advisor of one of the parties.

Read full case analysis at : https://dasgovernance.com/2019/04/29/analysis-of-supreme-court-judgement-in-the-government-of-haryana-pwd-haryana-branch-vs-m-s-g-f-toll-road-pvt-ltd-ors/
.
========>
.
Soon, businesses may have to generate GST e-invoice on govt portal:

READ MORE- https://www.gststation.in/soon-businesses-may-have-to-generate-gst-e-invoice-on-govt-portal/
.
========>
.
ITC, Patanjali now on GST anti-profiteering list, says report:

READ MORE- https://www.gststation.in/itc-patanjali-now-on-gst-anti-profiteering-list-says-report/
.
========>
.
Money laundering Act to curb GST frauds?

READ MORE- https://www.gststation.in/money-laundering-act-to-curb-gst-frauds/
.
========>
.
👉More than 50 Property Developers, including some of India’s Top Builders, are being investigated for profiteering under the GST Regime. The investigation by the Directorate General of Anti-Profiteering (DGAP) is trying to find out if the Builders made undue profits by failing to pass on to buyers the benefit of Input Tax Credit that was available to them.

👉In a move to tackle fund diversion, RBI proposes sterner rules on opening and running of Current Accounts of Corporate Borrowers. Current accounts, according to a Draft Circular shared by the RBI with the banking industry, can “only be opened” with the lead bank in a Lending Consortium while other banks having Collection Accounts will have to transfer funds at the end of the day to the current account with the consortium leader.

👉RBI's Revised Guidelines for Resolution of Stressed Assets likely before May 23. 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.

👉RBI asks Bank Auditors to keep a close watch on 5 Key Parameters and is to reassign its Senior Supervisory Authority in charge of the inspection of specific banks. The twin changes have been set in motion to better leverage the skills of the wider auditor fraternity and its internal staffers.

.
========>
.
Dream11, other eGaming companies face potential tax bouncer on GST:

READ MORE- https://www.gststation.in/dream11-other-egaming-companies-face-potential-tax-bouncer-on-gst/
.
========>
.
MCA UPDATE

1) eForm MSME (Form for furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprises) will be available on MCA21 Company Forms Download page w.e.f 1st May 2019.

2) Form DPT-3 is likely to be revised on MCA21 Company Forms Download page w.e.f 1st May, 2019.

Stakeholders are advised to check the latest version before filing.
.
========>
.
Housing sales down 5% in Jan-Mar 2019 on changes in GST rates:

READ MORE- https://www.gststation.in/housing-sales-down-5-in-jan-mar-2019-on-changes-in-gst-rates-rules-proptiger/
.
========>
.
Restaurants, small B2C entities under scanner for GST evasion:

READ MORE- https://www.gststation.in/restaurants-small-b2c-entities-under-scanner-for-gst-evasion/
.
========>
.
Analysis of High Court of Delhi Judgement in Prakash Gupta vs. SEBI

Compounding at the initial stage has to be encouraged, but not at the final stage since it will not be in the interest of justice to discharge the accused without the consent of SEBI as it will defeat the objective of the SEBI Act.

Read full case analysis at : https://dasgovernance.com/2019/04/30/analysis-of-high-court-of-delhi-judgement-in-prakash-gupta-vs-sebi/