14th May 2K19
Economic Times
Ø Automated GST refund for exporters by next month
Ø Arcelor paying Rs 39,500 crore for Essar Steel and not Rs 42,000 cr: SCB counsel Kapil Sibal
Ø Tata Power, Mahanagar Gas ink pact to offer various services
Ø India smartphone market grew 7% in Q1 2019: IDC
Business Standard
Ø India's car sales decline 16% in April, the worst in eight years: Siam
Ø Saudi oil tankers attacked as Gulf tensions soar amid US, Iran standoff
Ø Hudco wants Rs 190 cr bite out of McDonalds-Bakshi deal, NCLAT to hear plea
Ø US antitrust probe singes India's pharmaceutical firms; Sun Pharma falls 9%
Ø Amazon introduces new machines that pack orders and replace jobs
Business Line
Ø SEBI slaps two showcause notices on HDFC AMC
Ø Oriental Bank back in black, net profit in FY’18-19 at Rs 55 cr
Ø Pre-monsoon showers may see a 5-year low
Ø Retail inflation may rise to 4 per cent in FY20: Crisil
Mint
Ø Relief for TCS as US court rejects CSC's demand for restraining order
Ø Kwality insolvency: Lenders to vote on deadline extension for submitting bids
Ø United Bank of India posts profit in Q4, after seven quarter of losses
Ø US markets tumble, treasuries rally on China tariffs
Financial Express
Ø Vodafone Idea loss at Rs 4,881.9 crore in Q4 amid brutal tariff war, triggered by Reliance Jio
Ø April retail inflation climbs to 6 month high of 2.92% as food prices rise again
Ø India likely to add 80 GW of renewable energy capacity in next 5 years: Survey
Ø Ola credit card: Uber rival is marrying digital payment with mobility in India
Deccan Chronicle
Ø Home Ministry cancels registration of Infosys Foundation
Ø Nabard announces Rs 700-cr VC fund for agri, rural startups
Ø ITC Q4 net profit rises 18.72 pc to Rs 3,481.9 crore; Sanjiv Puri is new Chairman
Ø Amul expects revenue to grow by 20 per cent to Rs 40,000 cr in 2019-20
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GST Updates -
ED Seeks Details of Fake GST Invoice Scam for Probe
FMCG Distributors Face GST Scrutiny for Post-Sale Discounts
Car Dealers on Taxman’s Radar over Discounts & Freebies to Customers
GST Anti-Evasion Unit Submits Detailed List of Alleged Tax Evaders to CBIC
Offer up to Rs 1 Cr Overdraft to MSMEs on Turnover Reported in GST Returns: ICICI Bank
Prime Accused in Rs 1,000 Crore GST Scam Nabbed in Gujarat
GST Anti-Evasion Unit Goes After Car Dealers For Retrospective Tax
LATEST GST LEGAL UPDATES
ITC Can be Claimed on Inward Supplies by the Recipient When Consideration is Paid Through Book Adjustment
HC Directed GST Authorities Not to Impose Demand/Penalty as Revised GSTR-3B Was Filed Manually Due to Problem in System
Seller Booked for Profiteering for Increasing Base Price Despite GST Rate Reduction on Sale of Electric Chimney
‘Tata Harrier’ Vehicle Used for Transportation of Persons is a ‘Motor Car’ Classified under Tariff Item 8703 32 91
Applicant Taken into Custody for Claiming ITC Illegally, to be Released on Bail on Execution of Bond with One Surety
LATEST GST PORTAL UPDATES
GST Portal has Enabled the Tab for Accounting and Billing Software
Availability of GSTR-9, GSTR-9A & GSTR-9C Offline on GST Portal
LATEST GST LAW UPDATES
Due Date for Availing Option for Residential Real Estate Project is Extended till May 20, 2019
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Gujarat High Court in the matter of Octagon Communications Pvt Ltd Vs Union of India allows filing of GSTR-3B without payment of GST.
MCA: (Strike off of Companies)
MCA fees doubled from now i.e. from 5000₹ to 10000₹. All necessary compliances have to be done before filing STK-2.
Before filing STK-2, annual returns and financial statements needed to be filed upto the end of financial year in which company cease to carry on its business.
If company wants to file STK-2 after the action been initiated by ROC under section 248(1) then company needs to file all over due returns in AOC-4 and MGT-7.
Statement of account needed to be given in stk-8 format only. If notice issued under STK-7 by ROC, then company cannot file STK-2.
In STK-4 one point to be added as company has fulfilled all pending compliances, if any ( only applicable in case an application under section 248(2) has been filed after the initiation of action under 248(1).)
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👉🏻Govt inspected Jet Airways' Books after allegations of fraud
(ROC had submitted a report to the MCA highlighting instances of violation of Companies Act and certain unexplained trail of funds in the books of the airline)
👇🏻 👇🏻 👇🏻
http://bit.ly/2vU3wlP
👉🏻Date of filing ER-1/ER-2 return for April 2019 extended to 10th June 2019
(Extension of time limit for filing of Monthly Return for production and removal of goods and other relevant particulars and CENVAT credit specified in Form ER-1 and specified in ER-2)
👇🏻 👇🏻 👇🏻
http://bit.ly/2E3Ap43
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Notification No.10/2019-Central Tax (Rate), dt. 10-05-2019- To amend notification No. 11/ 2017- Central Tax (Rate) so as to extend the last date for exercising the option by promoters to pay tax at the old rates of 12%/ 8% with ITC.
READ MORE- https://www.gststation.in/cgst-rate-notifications-3/
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👉CBDT releases ITR-2 & ITR 3 Utility for F.Y 2018-19 (A.Y 2019-20). As of now ITR 1, 2, 3 & 4 for AY 2019-20 is now available for e-Filing in Excel format and ITR 1, 2, & 4 for AY 2019-20 is available in Java utility format.
👉In the most recent circular, SEBI issues Directive and asks the Mutual Funds to provide various details about Artificial Intelligence and Machine Learning-Based Systems used by them on a quarterly basis.
👉Central Government amends Rule 84 of the NCLT Rules, 2016 to further specify the thresholds required for filing Class Action Suits. NCLT (Second Amendment) Rules, 2019 have been notified by the MCA while exercising its powers under Section 469 of the Companies Act, 2013. The Amendment Rules came into force on May 8, 2019.
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In GST regime, trucks covering 10-15% more distance in a day:
READ MORE- https://www.gststation.in/in-gst-regime-trucks-covering-10-15-more-distance-in-a-day/
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GST Council to introduce new tax returns filing system to simplify the compliance procedures for MSMEs:
READ MORE- https://www.gststation.in/gst-council-to-introduce-new-tax-returns-filing-system-to-simplify-the-compliance-procedures-for-msmes/
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PVR Q4 profit at Rs 47 crore; strong box office biz, GST cut aid performance:
READ MORE- https://www.gststation.in/pvr-q4-profit-at-rs-47-crore-strong-box-office-biz-gst-cut-aid-performance/
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Commerce Ministry requests MCA to ease Compliance, exclude Certification of Returns by CA / CS [Read Letter]
Read more at: https://www.taxscan.in/commerce-ministry-requests-mca-to-ease-compliance-exclude-certification-of-returns-by-ca-cs/35634/
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NOTIFICATIONS DATED ON 11-05-2019
Notification No.24/2019-Central Tax- Seeks to extend the due date for furnishing FORM GSTR-3B for the month of for the month of April, 2019 for registered persons in specified districts of Odisha till 20.06.2019.
Notification No.23/2019-Central Tax- Seeks to extend the due date for furnishing FORM GSTR-1 for taxpayers having aggregate turnover more than Rs. 1.5 crores for the month of April, 2019 for registered persons in specified districts of Odisha till 10.06.2019.
READ MORE- https://www.gststation.in/cgst-notifications-2/
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MCA prescribes norms for determining requisite number of members to file class action suit
The MCA has notified the National Company Law Tribunal (Second Amendment) Rules, 2019 ('NCLT rules') vide notification no. G.S.R. 351(E) dated May 08, 2019 whereby procedure to determine requisite number of members to file a class action suit has been provided. The Amendment is effective from May 08, 2019. The amendment to the NCLT Rules with regard to requisite number of members in case of class action are discussed hereunder:
👉In case of Company having share capital: Under the revised norms, in case of Co. having share capital, at least 5 % of total members of Co.or 100 members whichever is less is the requisite number of members to file class action suit.
👉In case of un-listed Company: In case of an unlisted-Co., member(s) having shareholding of not less than 5% are required to file class action suit.
👉In case of listed Company: In case of a listed company, member(s) holding not less than 2% of shareholding shall be the requisite number to file class action suit.
👉In case of depositors: The requisite number of depositor(s) to file application u/s 245 shall be atleast 5% of total number of depositor of the company or 100 depositors of the Company whichever is less or if a depositor(s) to whom company owes 5% of total deposits of the Company
✌The concept of Class action suit u/s 245 was introduced in the Companies Act, 2013 which comes to the rescue of poor investors, especially the small and retail investors. A class action law suit is a set of claims filed on behalf of certain group of people who have been injured or negatively affected by the actions or negligence of a particular company and its management.
✌The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), inter-alia, entertain class action law suits.
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Indirect Tax Legal updates:
1. Service Tax - Demand under Reverse Charge Mechanism (RCM) for Technical Consultancy Services- As per the agreement when a subscriber of the appellant travels outside India, he will be able to use the mobile network of the Foreign Telecom Operator. For such services provided to the appellant, the appellant has to discharge service tax under RCM. When the said services fall under the category of‘Telecommunication Services’, the very same activity cannot be taxed as 'Business Support Service' (BSS). Held, demand cannot be raised under BSS. The penalties are set aside and appeal is partly allowed.
2019-VIL-273-CESTAT-CHE-ST
2. Central Excise- Related party- The Department contended the relationship between two Directors as relatives and members of Hindu Undivided Family and pointed out the use of common basic infrastructure and staff to be construed as related party and demanded duty on clearances made. Held there is no evidence that two companies are related in terms of Section 4(3)(b) of the Central Excise Act. The assessee appeals are allowed and appeal filed by the Revenue is dismissed .
2019-VIL-271-CESTAT-AHM-CE
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New Auditors Report formats - New and Revised Auditors’ reporting standards (w.e.f. accounting periods starting 01/04/2018) - https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=8490
# Companies Incorporation Fifth Amendment Rules, 2019
http://www.mca.gov.in/Ministry/pdf/CompaniesIncorporationFifthAmendmentRules_12052019.pdf
# Upcoming Due dates 15-05-19
- Quarterly statement of TCS deposited for the quarter ending March 31, 2019
- Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o March'19
Due dates for Compliance under Companies Act in MAY : 30-05-2019 – Form MSME -1 (One-time Return as at 22.01.2019) AND LLP Form - 11 (Annual Return)
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👉🏻Government plans further curbs on Audit Firms
(Audit firms may face more restrictions on the juicy non-audit assignments they could accept from statutory audit clients)
👇🏻 👇🏻 👇🏻
http://bit.ly/2WEiQio
👉🏻NCLAT dismisses insolvency plea against SpiceJet
(NCLAT has dismissed a plea for initiation of insolvency proceedings against Spicejet by Ramco Systems Ltd, an operational creditor of the low-cost carrier)
👇🏻 👇🏻 👇🏻
http://bit.ly/2W3aYK4
👉🏻MCA-21 version 3 to offer ease of doing biz, online compliance monitoring
(MCA-21 V 3.0 will have features like single source of truth, ease of doing business, e-adjudication, online compliance monitoring, all aimed at improving the authenticity and comprehensiveness of corporate data)
👇🏻 👇🏻 👇🏻
http://bit.ly/2JJjtnl
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ITR-3 ( Excel Utilities) has been issued by CBDT on 10/05/2019 for assessment year 2019-20 (i.e. for financial year 2018-19) Now Tax audit can be done by Chartered Accountants for Individual & HUF.
Managerial remuneration : Where a company made provision for payment of managerial remuneration to assessee, same created an obligation on assessee to bear tax liability on salary - V. Ramakrishnan v. Deputy Commissioner of Income Tax, Central Circle-III(4), Chennai - [2019] 104/389 (Madras).
Hindustan Coca-Cola Beverages (HCCB) and distributors of FMCG and consumer durable firms have come under the lens of the goods and services tax (GST) authorities over so-called post-sale discounts offered by manufacturers.
GST payable on freight charges recovered from customers without issuance of consignment note. Case Name: In re Siemens Limited (GST AAR Maharashtra)
Delhi High Court Reversing Advance Authority Ruling (AAR) , says Hindi vocabulary practice books are GST-exempt.
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ICAI has launched a dedicated YouTube Channel where in all the webcast are hosted free of charge. A series of videos on GST including Form 9 and Form 9C are available. The topics are dealt by eminent speakers. The following is the link to the channel
👇👇👇👇👇👇👇👇
https://www.youtube.com/channel/UCJWoqdlufpqvWIMQED1qNQA/videos
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GST collection is increasing by simplifying GST provisions:
READ MORE- https://www.gststation.in/gst-collection-is-increasing-by-simplifying-gst-provisions/
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IBC LEGAL UPDATES
1.NCLAT sets aside NCLT order and allow the appeal filed by appellant u/s 7 of IBC against principal borrower,wherein NCLT dismissed petition holding that substantial amount of loan has been repaid. It held that where the default is more than rs.1lakh the petition is liable to be admitted.
LSI-213-NCLAT-2019(NDEL)
2. NCLAT sets aside NCLT order wherein NCLT reject the application filed by appellant on mere ground of pre existence of dispute. It held that where respondent issued cheques in favour of appellant but the same bounced due to lack of funds in respondent's account and where the civil suit is pending before High Court, it does'nt affect the proceedings under IBC. Hence, pendancy of suits regarding bounced cheques is no bar for initiating insolvency resolution process as per sec. 238 of IBC.
LSI-212-NCLAT-2019(NDEL)
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MCA update:-
General Circular on ADT-1 filed through GNL-2
For ADT-1 filed as attachment in GNL-2 *during 01/04/2014 to 20/10/2014 , One time opportunity to file e-form ADT-1 for the said appointment without an fee till 15/06/2019.
No relaxation for GNL-2(s) filed post 20/10/2014
MCA Weblink :- http://www.mca.gov.in/Ministry/pdf/GeneralCircular13052019.pdf
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Exporters ITC refunds to be processed online from June:
READ MORE- https://www.gststation.in/exporters-itc-refunds-to-be-processed-online-from-june/
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Delhi High Court in the matter of Sonka Publication India Pvt. Ltd. v. Union of India and Ors. WP (C) 10022/2018, setting aside ruling of AAR, that the books published and sold by the are classifiable under HSN 49.01 (Printed Books- Exempt) and not HSN 48.02 (Exercise Books- Chargeable to GST at 6%).
MCA Rule 8 with regard to undesirable names have been substituted. Now, rule 8 pertains to provisions dealing with “Names which resemble too nearly with name of existing company” and rule 8A pertains to “Undesirable Names”.
RBI thrust on economic growth and beefing up cash in the banking system is signaling to some investors that the nation’s bonds are set to turn a corner. Demand for rupee sovereign notes is seen picking up as bets emerge that the central bank will cut benchmark rates again next month while continuing to inject funds through its open-market debt purchases.
Supreme Court has held that a person has no "right" to be represented by a lawyer in "in-house" proceedings initiated by banks or financial institutions to declare him willful defaulters for non-payment of dues.
BSE has introduced facility in the Listing Centre for filing of Annual Secretarial Compliance Report under Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, by listed entities and their material subsidiaries
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Compulsory Payment of tax before filing of GSTR-3B – Inconsistent working of GST portal:
READ MORE- https://www.gststation.in/compulsory-payment-of-tax-before-filing-of-gstr-3b-inconsistent-working-of-gst-portal/
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GST: Tweaked norms boost sentiment in realty sector:
READ MORE- https://www.gststation.in/tweaked-norms-boost-sentiment-in-realty-sector/
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Demonetisation & GST no dampener for Patna traders:
READ MORE- https://www.gststation.in/demonetisation-gst-no-dampener-for-patna-traders/
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GST ghost returns to haunt ITC; should you buy on dips?
READ MORE- https://www.gststation.in/gst-ghost-returns-to-haunt-itc-should-you-buy-on-dips/
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👉Exporters of goods and services as well as suppliers to SEZ units are most likely to get GST refunds automatically from June as the Revenue Dept plans to introduce faceless scrutiny of refunds and faster claim settlement.
👉ITAT, Bengaluru bench holds that the depreciation under Section 32 of the Income Tax Act, 1961 is allowable on the customer relationship rights since the same would amount to goodwill.
👉Rajasthan Authority for Advance Ruling, in an application filed by M/s Tata Projects Ltd. holds that the works contract service for construction of Nuclear Fuel Complex supplied by the applicant for the provision of electricity shall be subject to 18% GST.
👉EEPC India, the apex body of the engineering exporters, is lobbying hard with the Reserve Bank of India (RBI) to extend the Interest Equalisation Scheme (IES) for exporters to the entire MSME sector, so that the linkage with exports goes away and comply with the WTO norms.
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VIP Industries under lens for profiteering under GST:
READ MORE- https://www.gststation.in/vip-industries-under-lens-for-profiteering-under-gst/
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CBDT further deferred furnishing of GST & GAAR details in Form 3CD till March 31, 2020
Circular no. 09/2019, dated 14-05-2019
Section 44AB of the Income-tax Act, 1961 requires specified persons to furnish the tax audit report along with the prescribed details in Form no. 3CD. The existing Form 3CD was amended by the Central Board of Direct Taxes (CBDT) vide notification no. 666(E) dated 20-07-2018. Various clauses have been amended and a few new clauses have been inserted in the new Form 3CD. However, the reporting under clause 30C (pertaining to GAAR) & clause 44 (pertaining to GST) was kept in abeyance till March 31, 2019 vide Circular No. 6/2018 dated 17-08-2018.
Now, considering the representations with regards to further deferment of such reporting, the CBDT has decided that the reporting under clauses 30C & 44 of tax audit report shall be kept in abeyance till March 31, 2020.
