©orporate Uodates on June 17, 2019
Ø BHEL bags 200 MW solar energy orders worth Rs 800 cr
Ø NBFC crisis to pull down home loan growth: Report
Ø Trai to determine the unique mobile subscribers base
Ø UCO Bank declares Yashovardhan Birla wilful defaulter
Ø FinMin assessing capital needs of PSU banks
Ø Lakshmi Mittal's South African subsidiary facing charges
Ø SEBI likely to rejig mutual fund categorisation norms to curb credit risk
Ø Cross-border insolvency: Cabinet likely to take up new provisions soon
Ø RBI joins peers to buy gold insurance as US-China trade war escalates
Ø Hindustan Copper plans to increase ore production five times by 2025
Ø Lupin recalls more than 18,000 bottles of antibiotic drug in US market
Ø India draws up plan to gain from US-China trade war
Ø India imposes higher customs duty on 28 US products
Ø Suspect DeMo cash deposits again come under scanner
Ø GST Council may give 1-year extension to anti-profiteering authority
Ø Vedanta lost $200 m on Sterlite plant shutdown: Anil Agarwal
Ø Noose tightens on Swiss account holders; Details of at least 50 Indians shared
Ø India has wage problem, not job problem: Mohandas Pai
Ø NITI asked to follow due process for suggesting CPSE assets for monetisation
Ø Agrochemicals exporters widen their valuation gap vis-à-vis domestic plays
Ø ONGC to auction over 60 fields to private operators
Ø Rainfall deficiency hits 43 per cent; monsoon progress likely in the next 2-3 days: IMD
Ø FPIs remain net buyers in June, invest Rs 11,132 crore
Ø India can boost exports of 300 products to US, China amid trade war, says report
Ø Jaypee Infratech lenders moot fresh plan to complete housing projects
Ø CREDAI seeks bank funding for developers to buy land for affordable housing projects
Ø Round-tripping still rampant in gold exports
Ø Steel industry seeks safeguard duty to counter rise in imports
Ø Start-ups entering listed space via reverse merger
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Ghaziabad businessman arrested for Rs 3.76cr GST fraud:
READ MORE- https://www.gststation.in/ghaziabad-businessman-arrested-for-rs-3-76cr-gst-fraud/
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Postpone last date for filing GST returns in Form GSTR 9, 9A & 9C:
READ MORE- https://www.gststation.in/postpone-last-date-for-filing-gst-returns-in-form-gstr-9-9a-9c/
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Reported some issues in filing their Form GSTR 9/9C, which are clarified below:
(A) Relating to Annual Return Form GSTR 9:
1. Auto-population of ITC figures in Table 8A of Form GSTR-9 based on Form GSTR-2A: Some taxpayers have reported that figures of Input Tax Credit (ITC), as pre-populated in table 8A of Form GSTR-9, do not match with the figures as appearing in their Form GSTR-2A. Please note that this may happen due to following reasons:
a. Figures in GSTR-2A are auto populated based on filed/ saved / submitted Form GSTR-1 of the supplier taxpayer. But figures in table 8A of Form GSTR-9 are auto-populated only on the basis of filed Form GSTR-1 by the supplier taxpayer. In case, Form GSTR -1 is not filed by your supplier, then credit related to those invoices will not appear in table 8A of your Form GSTR-9.
b. Figures in table 8A of Form GSTR 9 are auto populated only for those Form GSTR-1, which are filed by the supplier taxpayer by due date of its filing i.e. 30th April, 2019. Thus, ITC on supplies of the financial year 2017-18, if reported beyond 30th April, 2019, will not get auto-populated in table 8A of Form GSTR-9 but it will be available in Form GSTR-2A.
c. In table 8A of Form GSTR-9, only latest values have been auto-populated based on filed Form GSTR-1, taking into account all the amendments made, if any. Suppose an invoice with taxable value of Rs 100/- with tax of Rs. 18/- was filed in Form GSTR-1 in the month of January, 2018 and same was amended to Rs 90 as taxable value in the month of March, 2018, then
i. the Form GSTR-2A of January, 2018 will show ITC of Rs. 18
ii. the Form GSTR-2A of March, 2018 will show ITC of Rs 16.20 &
iii. the table 8A of Form GSTR-9 will contain ITC of Rs 16.20.
d. In table 8A of Form GSTR-9, ITC related to all such invoices have been excluded in which place of supply lies in supplier's taxpayers State, instead of State of the receiver taxpayer. These figures will be shown in Form GSTR-2A of the recipient. For example if a taxpayer of State A visits State B and stays in a hotel in State B, the tax paid by him to the hotel in State B will appear in his Form GSTR-2A, but the same will not be reflected in table 8A of Form GSTR-9.
e. The Figures in table 8A of Form GSTR-9 do not contain ITC for the period during which the recipient taxpayer was under composition scheme.
2. Proceed to File button not enabled: While filing Form GSTR 9 'Proceed to File' button will be enabled only if 'Compute Liability' is clicked. This button is meant for computation of late fees only. 'Preview Draft GSTR 9 PDF' button is clicked to view the filled up information. Thereafter on checking the declaration box and selecting the authorized signatory details, user has to click on 'File' button to file the return. Please note Form GSTR 9 once filed cannot be revised.
(B) Relating to Form GSTR 9C, Reconciliation statement :
3. Turnover for filing Form GSTR- 9C: Form GSTR-9C is to be filed by all those taxpayers whose aggregate turnover has exceeded Rs 2 crore in a financial year. Turnover of complete year i.e. from 1st April, 2017 to 31st March, 2018 has to be taken into account for calculating the turnover. For example, if a taxpayer has a turnover of Rs. 2.1 Cr for the period 1st April, 2017 to 31st March, 2018 and a turnover of Rs. 1.9 Cr for the period 1st July, 2017 to 31st March, 2018, then the taxpayer is required to file form GSTR- 9C.
4. User getting error message while using Excel version : You are also advised to use Microsoft excel version higher than 2007 while preparing Form GSTR 9C.
5. Providing Membership Number by Auditor: While filing Part B of Form GSTR-9C, Auditors are advised to give their membership number without prefixing '0' in their membership number. If membership number is '016', then auditor should enter '16' on the aforesaid part in the membership number field & not '016'.
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CBIC has enabled new facilities w.r.t filing of various GST Return on GST Portal
CBIC has enabled new facilities to fix the defects with respect to various return filing process for the Taxpayer. Following are the key facilities:
A taxpayer who has not filed their Form GSTR 1 for the month of March 2019 can now amend invoices of July 2017 also, a drop-down will appear for making amendments in the invoices of the July 2017 month.
A numeric character only in Shipping bill field: Shipping bill field in Form GSTR 1 will now accept only numeric character (in the cases of copy & paste to populate the field).
In Form GSTR 10: User can now delete invoices online, in Form GSTR 10 starting with the serial number ‘0’ (zero).
In Form GSTR 9: Now a message is also shown to the taxpayers that Form GSTR-2A has been compiled on the basis of Form GSTR1 filed up to dd/mm/yy and next update will happen on dd/mm/yy. Now updations of Form GSTR-2A is being done on a weekly basis.
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SEBI challenged the Order of NCLT. Will Insolvency Bankruptcy Code overrides SEBI Act
Read full article at : https://dasgovernance.com/2019/06/15/sebi-challenged-the-order-of-nclt-will-insolvency-bankruptcy-code-overrides-sebi-act/
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GST: PM likely to meet FinMin officials on June 20, to discuss road map for boosting growth:
READ MORE- https://www.gststation.in/gst-pm-likely-to-meet-finmin-officials-on-june-20-to-discuss-road-map-for-boosting-growth/
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Negligence in reporting 40A(3) & 40(a)(ia) violation is Professional Negligence – CA awarded punishment of removal of his name from the Register of Members Ignorance & casualness may be a costly. There is not only penalty u/s 271J but also chances of Disciplinary action by ICAI.
Income Tax Department is taking all such matters for disciplinary action with ICAI.
One such instance was found in CA Ishaq Esmail Lakkadghat Versus Income Tax Officer, 11 (3) -1 Mumbai case wherein the Tax auditor was held guilty by the disciplinary committee of ICAI of lack of exercising due diligence, or gross negligence in the conduct of his professional duties.
The Reporting Auditor (CA) stated NIL in the column “amount admissible u/s 40A (3) read with rule 6DD and computation thereof”
The error was deducted in scrutiny assessment for AY 2007-08, when it was found that the assessee has made payment of consultancy charges amounting to Rs.5,45,715/- to various Doctor which exceeds Rs.20,000/-. The assessee has made this payment in cash which is exceeding Rs.20,000/– and no tax has been deducted which is required u/s 194J of the Income Tax Act, 1961. These facts have not been mentioned in the Tax Audit Report certified by the CA.
The matter was reported to the Disciplinary Committee of the ICAI which that on perusal of Profit & Loss Account of the Hospital vis-à-vis working papers of the Respondent, it has been noted that consultancy charges were shown as expenses in the Profit & Loss Account of the Hospital.
The CA submitted
“……since the Doctors did not provide any professional service to the Hospital, the provisions of Section 194J would not be attracted.
As per the judgment passed by the Special Bench in case of “Merilyn Shipping and Transports-vs ACIT, Section 40 (a) (ia) is applicable only to the amounts of expenditure which are payable as on 31st March of every year and it cannot be invoked to disallow the amounts which have been actually paid during the previous year, without deduction of tax at source. Further, all payments were made to the respective doctors before 31st March, 2007. As per his belief, the payment made to the Doctors by way of reimbursement of the fees does not fall under the TDS Act and even if it falls, these payments would not be disallowable u/s 194J of the Income Tax Act.
However the Committee was of the view that it is for the assessee to reply on any judgment for making deduction of TDS on payment of consultancy fees u/s 194J. As per provision of the Income Tax Act, 1961 and Guidance notes on Tax Audit issued by the Institute, the Auditor is required to report as to whether any amount is inadmissible under Section 40 (a) the Income Tax Act, 1961. If the Assessee did not deduct TDS based on a judgment given in a particular case, the Respondent being a Statutory Tax Auditor was required to disclose the same in his report so as to enable the Income Tax Department to know the reason as to why TDS was not deducted by the Assessee u/s 194J of the Income Tax, 1961.
On appeal against the order of the disciplinary committee of ICAI, the Appellate Authority – ICAI the CA further added that as he has passed Chartered Accountancy only in 2005, he was very new in the profession and it is possible that he did not understand the proper interpretation of Section 194J of the Income Tax Act 1961. Therefore he prayed that his mistake may be condoned and lenient view may be taken.
The Appellate Authority – ICAI held as under:
Held that CA did not exercise due diligence in carrying out his professional duties, which is expected from him.
The CA being new in the profession and not being able to understand properly the ambit of section 194J of the Income Tax Act, can’t be a ground to completely ignore the new reporting requirements imposed by the CBDT from 10th August, 2006. (Ignorance of Law in No EXCUSE- supplied)
As regards to the issue of quantum of punishment, the CA prayed for taking lenient view and explained that he was very new in the profession and he might not have been fully aware of the recent amendments in the law, and he also pleaded that the default was for a very small quantum.
It is very clear that the CA was required to report instances where tax was deductible by the auditee but not deducted by him. The CBDT vide Notification No. 208/2006 dated 10th August, 2006 had widened reporting requirements of Form 3CD and thus it was the duty of the CA to report such transactions in the Form 3CD, which he failed to do.
Looking to all the facts involved and the fact that the Appellant fully co-operated in all proceedings at every level of enquiry, we feel that the “ends of justice” would meet, if the Appellant is awarded punishment to “Reprimand”. We, accordingly modify the Impugned Order of the Disciplinary Committee to this extent. Though, further, we direct the Appellant to be more cautious in future while dealing with such situations.
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Wef 1.7.19, Contribution of Employer to ESI to be reduced from 4.75% to 3.25% & that of Employee to be reduced from 1.75% to 0.75%. Press Release of 13.6.19.
Latest regulatory action against Deloitte, EY and KPMG, has seen auditors scampering to de-risk themselves and more differences between auditors and managements will come to the fore in companies with dodgy accounting policies that fail to provide evidence and justifications for their decisions.
Cabinet ratifies Multilateral Instrument (MLI) to implement tax treaty related measures to prevent base erosion & profit shifting (BEPS)
With rising instances of debt defaults and credit rating agencies (CRAs) failing to forewarn the investors of the deteriorating credit profiles of firms, Sebi came out with a set of wider disclosure norms for the CRAs.
RBI cut key policy rates by 25 basis points, the third consecutive time it has done so. The repo rate -- the key interest rate at which the RBI lends to the banks -- will now be 5.75%. The central bank has also changed its stance to ‘accommodative’ from ‘neutral’. Most economists had expected a cut of 25 bps.
MCA: last date for filing ACTIVE(INC-22A) expires on 15th June 2019. If the said ACTIVE form is not filed, the Compliance STATUS for such companies shall be marked as ‘ACTIVE Non-compliant’ and Directors of such ‘ACTIVE non-compliant’ companies shall be marked as ‘Director of ACTIVE non-compliant company’. Penalty Rs.10,000.
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Budget 2019: Economists seek simpler GST, IBC-type framework for NBFCs:
READ MORE- https://www.gststation.in/budget-2019-economists-seek-simpler-gst-ibc-type-framework-for-nbfcs/
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Remove double taxation on commodity trading: CPAI:
READ MORE- https://www.gststation.in/remove-double-taxation-on-commodity-trading-cpai/
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Government likely to bring GST frauds under PMLA; discuss with state FMs at GST Council:
READ MORE- https://www.gststation.in/government-likely-to-bring-gst-frauds-under-pmla-discuss-with-state-fms-at-gst-council/
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Fraudster avails Rs 62 lakh GST refund, FIR filed:
READ MORE- https://www.gststation.in/fraudster-avails-rs-62-lakh-gst-refund-fir-filed/
