©orporate Updates on July 17, 2019
Ø Iran to invest in Indian refinery, says ambassador
Ø WTO opens way for Chinese sanctions against U.S.
Ø India's Vedanta to invest $650 million in new oil blocks
Ø Banks bad loans down at Rs 9.34L crore: Sitharaman
Ø Lenders to DHFL ready for haircut in rescue - sources
Ø Centre cuts interest on GPF by 10 bps to 7.9 per cent
Ø Cox and Kings defaults again; shares at record low
Ø 10-year bond yield hits lowest level since demonetisation, closes at 6.33%
Ø Moody's affirms Baa1 rating to state-owned ONGC over better oil prices
Ø Future of Wipro will outshine everything done so far: Azim Premji
Ø Goyal backs multi-brand FDI policy, says no changes in the offing
Ø Federal Bank Q1 net profit up 46% to Rs. 384 crore as bad loans ease
Ø SEBI provides new format for compliance report on corporate governance
Ø HDFC AMC Q1 net profit zooms 42 per cent, at ₹292 crore
Ø Jet Airways creditors set insolvency process in motion
Ø Passenger vehicles retail sales dip 4.6 per cent in June: FADA
Ø Bharat Dynamics eyeing ₹25,000 cr order book in next four years
Ø Retail investors can also participate in the primary market issues of G-secs
Ø Essar Steel case: Lenders move SC against NCLAT order
Ø DCB Bank Q1 profit jumps 16.63% at ₹81.06 crore
Ø Creditors' committee of Jet Airways to vote on $10-million interim funding
Ø Bombay HC quashes permits for ₹14,000-crore coastal road project
Ø 2,500 drugs samples out of 76,000 examined found substandard in 2018-19
Ø Oil India signs contract for 12 oil blocks; Vedanta 10, ONGC 8
Ø Taxmen detect Rs 37,946 crore fraud in FY19
Ø India’s renewable energy capacity crosses 80GW-mark, says RK Singh
Ø NSE to exclude DHFL shares from equity derivatives segment from Sept 27
Ø Rupee falls 17 paise against USD on rising crude, capital outflow
Ø Private banks’ share in MF holdings nears 20 per cent
Ø *KPMG makes bid to revive Videocon
GST collection of states rises to Rs 5.18 trillion in FY19: FM Sitharaman:
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READ MORE- https://www.gststation.in/gst-collection-of-states-rises-to-rs-5-18-trillion-in-fy19-fm-sitharaman/
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The CBIC has issued GST Audit Manual 2019 after approval by the Board. The Board vide its letter F. No. 221/03/2013 – CX-6 dated August 30, 2018 requested to Directorate General to prepare a manual on Audit in GST for the consideration of the Board. The said GST Audit Manual contains a Check List for verification of Records/Registers during the course of Audit verification in GSTAM – Annexure IX.
Following are the list of Records and Registers to be maintained by the taxpayers for Goods and Services as per GSTAM -Annexure IX is as under:
PART–I: GOODS
I. Records to be verified in the marketing and outward supplies department:-
Purchase Orders
Price Circulars
Delivery Challans
Material transfer note
Sales Book
Outward supply book
II. Records to be verified in the stores department (Where applicable):-
Store ledger
Goods Receipt Note (GRN)/Material Receipt Note/Inspection Cum Receipt Report (ICRR)
Material Return Note
Rejected Goods Register
Waste Register
Physical Stock Verification Statement
Job work/Sub-contract Register
III. Finance & Accounts related records:-
Ledgers
Debit Note
Credit Note
Journal Voucher
Internal Audit Reports
Purchase Book
Purchase Return Book
Income Tax Audit Report
Income Return
Fixed Assets Register
Monthly Stock Statement to Bank
PART-II –SUPPLY OF SERVICES
A. RECORDS TO BE VERIFIED
I. Marketing and sales department:-
Purchase Orders/Agreements/MOUs
Outward supply book
II. Stores department:-
Stores Ledger
Job work/Sub-contract Register
III. Finance & Accounts related records:-
Ledgers
Debit Note
Credit Note
Journal Voucher
Internal Audit Reports
Purchase Book
Purchase Return Book
Income Tax Audit Report
Income Return
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GST: RBI Examining Priority Sector Lending Norms For Export Credit:
READ MORE- https://www.gststation.in/gst-rbi-examining-priority-sector-lending-norms-for-export-credit/
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Fake invoice fraud: Case studies presented to PM Narendra Modi:
READ MORE- https://www.gststation.in/fake-invoice-fraud-case-studies-presented-to-pm-narendra-modi/
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IIMB gets GST exemption for all long-duration programmes:
READ MORE- https://www.gststation.in/iimb-gets-gst-exemption-for-all-long-duration-programmes/
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GST rate on cement, steel, pipes, roofing sheets and other building materials: Implications on housing sector:
READ MORE- https://www.gststation.in/gst-rate-on-cement-steel-pipes-roofing-sheets-and-other-building-materials-implications-on-housing-sector/
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100-day plan of Modi 2.0: Strategic sales, simplifying GST slabs, credit to MSMEs:
READ MORE- https://www.gststation.in/100-day-plan-of-modi-2-0-strategic-sales-simplifying-gst-slabs-credit-to-msmes/
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GST: Taxmen detect Rs 37,946 crore fraud in FY19:
READ MORE- https://www.gststation.in/gst-taxmen-detect-rs-37946-crore-fraud-in-fy19/
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SEBI Update:
16 July, 2019
Circular on Modification of circular dated September 24, 2015 on ‘Format for compliance report on Corporate Governance to be submitted to Stock Exchange (s) by Listed Entities’
https://www.sebi.gov.in/legal/circulars/jul-2019/circular-on-modification-of-circular-dated-september-24-2015-on-format-for-compliance-report-on-corporate-governance-to-be-submitted-to-stock-exchange-s-by-listed-entities-_43582.html
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Some Replies received from GSTN for CMP-08 & GSTR-4
Problem reported: Concern regarding CMP-08 is not reflecting on return dashboard.
Resolution: This is in reference to our telephonic conversation, we informed you that the functionality for filing CMP- 08 is currently unavailable on GST portal, we request you to wait for further notification and keep yourself updated with www.gst.gov.in.
Problem Reported: Return GSTR-4 for first quarter for financial Year 2019-2020 and CMP-08 is not visible in return dashboard.
Resolution: This is in reference to your concern regarding GSTR-4 for first quarter for financial Year 2019-2020 and CMP-08 is not visible in return dashboard. We would like to inform you that GSTR4 return form is discontinued from financial Year 2019-2020 and functionality for filing CMP- 08 is currently unavailable on GST portal, we request you to wait for further notification and keep yourself updated with www.gst.gov.in.
Further, filing of GSTR-4 for the financial Year 2018-19 and 2017-18 will continue in the usual manner if taxpayers have not filed the same till date.
For more clarification regarding this, you may contact to CBIC (Central Board of Indirect taxes and Customs)
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# CBIC issued Circular No. 19/2019 dt. 16-07-2019 : Implementation of PGA eSanchit- Paperless Processing under SWIFT- Uploading of Licenses/Permits/Ceritificates/Other Authorizations (LPCOs) by PGAS
http://www.cbic.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2019/Circular-No-19-2019.pdf
# CBDT issues clarification that no changes in the notified ITR forms; only the utility has been updated to facilitate the taxpayers. Therefore, the assertion that numerous changes have been made in ITR-2 and ITR-3 on July 11, 2019 is not correct.
# DAAB of ICAI organizing 3 days Hands on Experience Training on Forensic Analytics using CAAT Tools on 19-21 July, 2019 at Noida
https://resource.cdn.icai.org/55568daab44948.pdf
# Upcoming Due Date : 20-07-2019
- GSTR-3B for the m/o June 2019
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SEBI or CAG should appoint statutory auditors in listed companies, says former ICAI President CA Anarjeet Chopra
Market regulator SEBI or Comptroller & Auditor General of India should appoint statutory auditors in listed companies to promote and ensure independence of auditors, suggested Amarjit Chopra, a former President of the CA Institute.
“For listed companies, we should not allow the promoters to decide as is the case now. SEBI or CAG will be better placed to decide the auditors for companies, particularly listed and those above a specific turnover threshold,” Chopra told
A discussion on the issue has been triggered by a statement made by Corporate Affairs Ministry Secretary Injeti Srinivas who underscored the need for a “new mechanism” to protect the independence of statutory auditors in listed companies.
Srinivas had flagged this point during his address at the recent Foundation Day event of the CA Institute. He had highlighted the auditor appointment system in state-oriented enterprises (CAG selects the auditors) and how it had worked well for the country.
Currently, statutory auditor appointment in listed companies are governed by the Companies Act provisions that provides that shareholders will appoint statutory auditors in general meetings. However, the prevailing norm on the ground is that the promoters of the listed companies play huge influential role in deciding the statutory auditor and such choice is usually approved by shareholders without any objections.
Srinivas said for a CA to do justice to his or her work, it is absolutely essential that they are independent. “The whole crux of the debate is independence — how does a chartered accountant be independent from the person who engages them, from a person who pays their fees… that is the issue,” he said.
“It’s unfortunate that everybody wants to only target auditors for the high profile corporate failures. Nobody wants to look at the real issue. The main issue is corporate governance and who appoints auditors,” Chopra said.
Experts contend that auditor independence is not protected till the time the promoters have an influential role in deciding the appointment and the pay. Ashok Haldia, former Secretary of the CA Institute, said the audit is carried out in public interest. “Therefore, severance of nuptial cord between management and auditor, in form as well as in substance, is key to restoration of public trust in audit,” Haldia said.
Public trust
For this, appointment of the auditors and fixing their remuneration have to be totally and effectively made independent of the management, he said.
“Any measure short of this like the one introduced through the Companies Act 2013 routing the appointment of auditor through the audit committee or restrictions on non-audit services provided by the auditor or requiring auditors for separation of audit and non-audit services through the notion of Chinese wall would fall short in ensuring quality audit,” according to Haldia. It is universally recognised that quality technical standards, tools and techniques are effective only if auditors remain independent and objective to be able to challenge management decisions, he said.
In the case of public sector banks, the Central Statutory auditors are appointed by the management. As for the audit of bank branches, the list of audit firms are screened by the Reserve Bank of India and then sent to banks. Some banks have now started using a CA Institute approved software application to assign the branch audit work for various CA firms.
As for central public sector enterprises, the CAG currently empanels the list of CA firms and makes the appointment.
Chopra felt that the earlier adopted ‘committee’ approach should be restored for deciding on the central statutory auditors of PSBs.
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👉🏻Income Tax Dept snooping on social media posts is a misconception - CBDT
(It is a "misconception" to think that the Income Tax Department is snooping on social media posts related to exotic foreign tours or possession of expensive goods to check undisclosed income)
👇🏻 👇🏻 👇🏻
http://bit.ly/30z39uh
👉🏻Disciplinary proceedings initiated by IBBI cannot be quashed by NCLT - NCLAT
(In a significant ruling, NCLAT has held that NCLT can’t quash the disciplinary proceedings initiated by the insolvency regulator IBBI)
👇🏻 👇🏻 👇🏻
http://bit.ly/2YUyHdO
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AAR, Maharashtra :
Air conditioner supplied with installation, testing & commissioning services under a contract is ‘composite supply’. (Nikhil Comforts – May 24, 2019).
In contract entered into by GSIDC a wholly owned Government Company and applicant, major part of contract is supply of goods. i.e. VRF Indoor & Outdoor Units, refrigerant piping with insulation, drain piping with insulation, MS stands, Cabling, Additional Refrigerant and associated electrical works etc. These goods are delivered to client by the applicant and such goods that are supplied are used by the applicant to provide services of installation, testing and commissioning of units. Without these goods, services cannot be supplied by applicant and, therefore, it is found that goods and services are supplied as a combination and in conjunction and in course of their business where principal supply is supply of goods.
Thus, the transaction is a Composite supply liable to tax at rate applicable to Air Conditioners which are principal goods involved in transaction under Schedule IV, Sr. No. 119 of Notification No 1/2017 (Central tax rate) dated 28-6-2017
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ITax Update - In case of LTCG on shares fill new Schedule 112A in ITR for each share/unit sold & give ISIN code, name of company, no. of shares, FMV on 31.1.18 etc.
GST Gyan-In Table 14 of GSTR-9C, reconciliation of input tax credit availed on only those expenses where ITC availed, is required. Press Release of 3.7.19.
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The increase in effective tax rate to 43% for those earning Rs 5 crore and more has spread disquiet in India Inc’s Csuite, raising the possibility of salary reviews. As per the latest records available, 144 executives of BSE 500 companies on average earned Rs 11.4 crore annually.
GST collection of states and union territories increased to Rs 5.18 lakh crore in the financial year 2018-19, a significant rise from Rs 2.91 lakh crore in 2017-18, Finance Minister said the Centre government released Rs 81,177 crore compensation to the states during the fiscal year 2018-19 against Rs 48,178 crore released in FY18.
RBI said it has slapped a penalty of Rs 7 crore on the country's largest bank SBINSE 1.11 % for non-compliance with norms related to NPA identification and fraud risk management, among others.
NCLAT on August 8 will hear global steel major ArcelorMittal's plea, challenging Royale Partners' bid to acquire EPC Construction India Ltd (ECIL), currently under insolvency proceedings.
Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets, Fitch Ratings said.
Ministry of Labour & Employment: The Union Cabinet has approved for the introduction of the Code on Occupational Safety, Health and Working Conditions Bill, 2019 in the Parliament.
Ministry of Housing and Urban Affairs (MHUA) released the draft Model Tenancy Act, 2019, which aims to regulate rental housing by a market-oriented approach.
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GST: Tax arrears of Gujarat industrial units at Rs 30,000 crore:
READ MORE- https://www.gststation.in/gst-tax-arrears-of-gujarat-industrial-units-at-rs-30000-crore/
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Since GST rollout in July 2017, Rs 45,682.83 crore fraud detected:
READ MORE- https://www.gststation.in/since-gst-rollout-in-july-2017-rs-45682-83-crore-fraud-detected/
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GST: Bombay High Court sets aside AAAR order denying input tax credit on ‘cash carry’ vans:
READ MORE- https://www.gststation.in/gst-bombay-high-court-sets-aside-aaar-order-denying-input-tax-credit-on-cash-carry-vans/