©orporate Updates on July 8, 2019
Ø Deutsche Bank may close most Asia-Pacific equity biz
Ø Iran ratchets up tensions with higher enrichment, draws warnings
Ø Centre open to 100% stake sale in Air India
Ø Coal India arm builds Lal Bahadur Shastri’s statue at Varanasi Airport
Ø Seven of top-10 firms add Rs 53,732 cr in m-cap; HDFC biggest gainer
Ø Maruti Suzuki slashes production by 16% in June, posts fifth cut in a row
Ø Adi Godrej's FY19 remuneration 114-time higher than median employee pay
Ø NCLT Mumbai asked to pass order on insolvency plea against 15 Videocon group companies in 3 weeks
Ø Foreign investors pull out Rs. 475 cr from markets in first week of July
Ø Budget impact: Most FPIs stare at 14.25% peak LTCG
Ø MRPL plans 251 retail outlets in Karnataka, Kerala
Ø PNB reports over ₹3800 crore fraud by Bhushan Power & Steel
Ø Growth stage investments hit a record $1 bn in January-June
Ø Green certificate sales down 22% to 6.98 lakh in June
Ø Deutsche Bank’s $8 billion overall includes exit from global equities
Ø Christine Lagarde must shift ECB policy, German ruling party head says
Ø Monsoon deficiency drops to 21 per cent but large parts of country still under deficient rainfall category
Ø Highest personal I-T rate in India still lower than in China, US, South Africa
Ø FM Nirmala Sitharaman to address RBI board today
Ø UK envoy calls Trump’s executive 'dysfunctional, inept': report
Ø Govt duty bound to achieve fiscal deficit of 3 pc as per law: FM
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Supreme Court on classification between Financial Creditor and Operational Creditor
Read full article at : https://dasgovernance.com/2019/07/08/supreme-court-on-classification-between-financial-creditor-and-operational-creditor/
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Income Tax Return Last date of filing for year ended 31.3.2019 is 31st July, 2019 for non- audit, non-corporate assessees. Please file the return within time to avoid penalties.
Risk capital investors will breathe a sigh of relief after the finance minister that investments in startups from a more diverse set of funds will now be exempted from the dreaded angel tax, an issue that has plagued the country’s new economy for nearly a decade. The so-called angel tax refers to Section 56 (2) (viib) of the Income Tax Act.
Investors putting money in exchange traded funds (ETFs) that bet on public sector companies will get tax benefits like that of tax-saving equity mutual schemes. Under Equity Linked Savings Schemes, or ELSS, investments of up to Rs 1.5 lakh every year is tax exempt.
Budget has proposed a significant rejig in basic customs duties to encourage manufacturing in the country. This involves raising customs duties on a number of products, withdrawing exemption from some and lowering rates for others to encourage value addition.
SEBI will now have to transfer 75 per cent of its surplus from the general fund every year to the Consolidated Fund of India that is managed by the Central Government. An announcement to this effect was made in the Budget via a proposed amendment to SEBI Act 1992. SEBI has a surplus of Rs. 3,170 crore as per its 2017 balance sheet.
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Budget 2019: Govt has laid foundation for India’s growth and development
READ MORE- https://www.gststation.in/budget-2019-govt-has-laid-foundation-for-indias-growth-and-development/
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State to pursue GST rate cut on multimodal transport
READ MORE- https://www.gststation.in/state-to-pursue-gst-rate-cut-on-multimodal-transport/
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Madras High Court has asked the ITAT not to dismiss appeals merely because a taxpayer failed to make an appearance before its bench, and instead take a proper decision based on the merits of the case. Experts said the judgment will set a precedent in several cases as the ITAT currently dismisses almost all appeals against tax claims if the affected taxpayer is not able to present his case at the hearing.
Input Tax Credit will not be available on the GST paid on expenses incurred towards promotional schemes, an order by the Maharashtra Authority for Advance Ruling (AAR) has said. Although AAR rulings are applicable for the applicant and the jurisdictional tax officer in a particular matter, the same can be used a persuasive tool in similar matters.
GST dept has extended by three months till July 31 the deadline for service providers with turnover of up to Rs 50 lakh to opt for the composition scheme and pay 6% GST. The GST Council has permitted such service providers to opt for composition scheme and pay taxes at reduced rate of six per cent beginning April 1, 2019. This is against the higher rates of 12 and 18 per cent levied for most services under GST.
MCA notifies Nidhi (Amendment) Rules, 2019 and notified new Form NDH-4 i.e Form for filing an application for a declaration as Nidhi Company and for updating of status by Nidhi's which shall come into force with effect from 15 August, 2019.
Securities Appellant Tribunal (SAT) remanded the matter to Sebi, directing the capital markets regulator to hear out all parties involved and pass a final order by July 17. According to the SAT’s directives, all parties involved have to submit their representation to Sebi by July 8.
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GST Updateon Form CMP-02
Due Date Extended for FORM GST CMP-02 from 30.04.2019 to 31.07.2019
(regarding availing the benefit of Alternate Composition Scheme)
http://enlightengovernance.blogspot.com/2019/07/due-date-extended-for-form-gst-cmp-02.html
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Auditors Independence
In today's world, Will someone actually finds it acceptable that an Auditor can work with full independence while the client holds the exclusive right to appoint any of Auditor of his/her own preference.
How an Auditor can report independently if he is being appointed by the Clients for themselves while paying the fees from their own pocket?.
Above point was raised by MCA Secretary on CA Day while talking about the independent allotment of Audit work.
ICAI needs to take action
Modi Govt. had given the clear hint that this is the time when ICAI needs to take necessary corrective action on its own. Otherwise, Govt will step-in in his own unique way to correct the position (Something similar to NFRA).
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Section 50 CGST Act - The Finance Bill 2019
An amendment to levy interest on the net amount of GST (output liability minus ITC) has been introduced in CGST Act by the Finance Bill 2019. The said amendment will be applicable from the date it is notified after the passing and notification of the Finance Bill, 2019. The said amendment will be effective prospectively and not retrospectively.
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Budget 2019: Individuals must deduct TDS on these 3 types of payments now
While the government's aim is to widen and deepen the tax base through these steps, it increases the financial accounting liability for individuals impacted by these rules.
With Budget 2019 increasing their TDS responsibilities, individuals will now have to deduct tax at source in three different types of situations. "High value payments made by individuals have now come in the compliance net and require tax deduction at source (TDS). An individual or HUF (Hindu Undivided Families) availing contractual or professional services will have to deduct TDS at the rate of 5 per cent in case the aggregate payments made to a single service provider during the year exceeds Rs 50 lakh," Shalini Jain, tax partner, EY India. Budget 2019 proposes to make it mandatory for individuals to deduct tax at source on:
(i) Payments of over Rs 50 lakh to contractors, professionals
It has been proposed to make it mandatory for individuals and HUFs to deduct tax at source (TDS) on any payment of Rs 50 lakh per annum to contractors and professionals. This means if the total payments you have made to a single contractor for wedding functions, house renovation or to a single professional during a financial year exceeds Rs 50 lakh, then TDS will be cut at 5 percent.
(ii) Payment of parking charges, maintenance charges etc when buying a house
Charges such as club membership fees, car parking fees, electricity and water facility fees, maintenance fee, advance fee etc. will soon need to be added into the cost of buying property amount while determining the amount of tax to be deducted at the time of buying the property. This amendment will come into effect from September 1, 2019.
Currently, these charges were excluded while calculating the amount of tax to be deducted at the time of making payment for property. Only amount paid for buying a house is considered to determine the amount of tax to be deducted. Currently one has to deduct tax only on the payment made to buy a house.
(iii) TDS on monthly rent payments above Rs 50,000
These are in addition to the existing responsibility to deduct tax at source from rent payments exceeding Rs 50,000 per month.
Individuals and HUFs who are not required to get their financials audited and are paying rent of more than Rs 50,000 per month have to deduct 5 percent of the rent paid in a financial year as tax. And if you do not comply, you have to pay 1% interest for every month of delay in deducting the tax. The penalty is higher at 1.5% per month if the tax has been deducted but not deposited.
While the government's aim is to widen and deepen the tax base through these steps, it increases the financial accounting liability for individuals impacted by these rules.
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MANDATORY FURNISHING OF RETURN OF INCOME (ITR) BY CERTAIN PERSONS PRESCRIBED BY BUDGET 2019
Currently, a person other than a company or a firm is required to furnish the return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions.
Therefore, a person entering into certain high value transactions is not necessarily required to furnish his return of income. In order to ensure that persons who enter into certain high value transactions do furnish their return of income, it is proposed to amend section 139 of the Act so as to provide that a person shall be mandatorily required to file his return of income, if during the previous year, he-
(i) has deposited an amount or aggregate of the amounts exceeding One Crore Rupees in one or more Current Account maintained with a Banking Company or a Co-operative Bank; or
(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding Two Lakh Rupees for himself or any other person for travel to a Foreign Country; or
(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding One Lakh Rupees towards Consumption of Electricity; or
(iv) fulfils such other prescribed conditions, as may be prescribed.
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GST NEWS 08-07-2019
Budget 2019: 2% Interest Subvention for GST-Registered MSMEs On Fresh Loans
GST on Electric Vehicles Reduced to 5 Percent, Tax Benefits Upto Rs 1.5 Lakh on EV Loan: Union Budget 2019
Sabka Vishwas Legacy Dispute Resolution Scheme to resolve litigations involving more than Rs. 3.75 Lakh Crore of Pre-GST Regime
Haryana at 2nd place in identifying GST evaders: Capt Abhimanyu
Budget 2019: Lowering of GST will Motivate Investors
Solar Thermal Industry Seeks Replacement of 18% GST with 5%
Cut in GST share will hit Karnataka Hard
Temporary Reduction In GST Rates Needed To Boost Auto Industry: Dr. Goenka, MD, Mahindra
Govt has Sought Lowering of GST on Electric Vehicles from 12pc to 5pc, says Sitharaman
Sitharaman Reduces FY20 GST Collection Estimate by 13% to Rs 6.63 Trillion
One Nation One Tax: Fin Min Proposes Merging of 17 Taxes into one with GST; Fully Automated GST Refund Module to be implemented
Nirmala Sitharaman Explains How GST Filing Will Be Simplified
Budget 2019: Amnesty Scheme to Resolve Legacy Tax Issues
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Decisions of Ethical Standards Board 🍎
A CA Firm may register itself on Udyog Aadhar, a web portal of Ministry Micro, Small and Medium Enterprises.
There is no prohibition for internal auditor of a company to acquire/purchase shares of the said Company.
It is not permissible for a member to use WhatsApp to send messages to make people aware about his practice, and mention the services provided therein.
A Chartered Accountant in practice being Director Simplicitor in a Company cannot sign ROC Forms of the Company as it is a direct conflict of role.
A Chartered Accountant in practice can act as Authorized Representative of a Foreign Company, provided he is not the auditor of the said Company.
It is permissible for two or more Chartered Accountants in practice collectively to have joint training session for their clients on GST, and share the fees collected from the clients thereof.
A Chartered Accountant in practice can provide services through kiosk only if the services provided are professional activities of a practicing chartered accountant, permitted under the Act.
A Chartered Accountant in service is allowed to take e-return registration if it does not conflict with employment obligation. However, he cannot certify the return.
In case where Chartered Accountant in practice is a non-executive director in a company, he or a Firm in which he is a partner, should not accept the appointment as a statutory auditor of a Company which is a joint venture of the original Company, as it would impact independence.
A Chartered Accountant in practice may be an equity research adviser, but he cannot publish retail report, as it would amount to other business or occupation.
A Chartered Accountant, who is a member of a Trust, cannot be the auditor of the said trust.
A Chartered Accountant in practice may engage himself as Registration Authority (RA) for obtaining digital signatures for clients.
A Chartered Accountant can hold the credit card of a bank when he is also the auditor of the bank, provided the outstanding balance on the said card does not exceed Rs 10000 beyond the prescribed credit period limit on credit card given to him.
A Chartered Accountant in practice can act as mediator in Court, since acting as a “mediator” would be deemed to be covered within the meaning of “arbitrator’; which is inter-alia permitted to members in practice as per Regulation 191 of the Chartered Accountants Regulations, 1988.
A Chartered Accountant in practice is not permitted to accept audit assignment of a bank in case he has taken loan against a Fixed Deposit held by him in that bank.
The Ethical Standards Board in 2013 generally apply the stipulations contained in the then amended Rule 11U of Income Tax generally, wherein statutory auditor /tax auditor cannot be the valuer of unquoted equity shares of the same entity.
A Chartered Accountant in practice cannot become Financial Advisors and receive fees/commission from Financial Institutions such as Mutual Funds, Insurance Companies, NBFCs etc.
A Chartered Accountant cannot exercise lien over the client documents/records for non-payment of his fees.
It is not permissible for CA Firm to print its vision and values behind the visiting cards, as it would result in solicitation and therefore would be violative of the provisions of Clause (6) of Part-I of First Schedule to the Chartered Accountants Act, 1949.
It is not permissible for chartered accountants in practice to take agencies of UTI, GIC or NSDL.
It is permissible for a member in practice to be a settlor of a trust.
A member in practice cannot hold Customs Brokers Licence under section 146 of the Customs Act, 1962 read with Customs Brokers Licensing Regulations, 2013 in terms of the provisions of Code of Ethics.
A Chartered Accountant in service may appear as tax representative before tax authorities on behalf of his employer, but not on behalf of other employees of the employer.
A Chartered Accountant who is the statutory auditor of a bank cannot for the same financial year accept stock audit of the same branch of the bank or any of the branches of the same bank or sister concern of the bank, for the same financial year.
A CA Firm which has been appointed as the internal auditor of a PF Trust by a Government Company cannot be appointed as its Statutory Auditor.
A concurrent auditor of a bank ‘X’ cannot be appointed as statutory auditor of bank ‘Y’, which is sponsored by ‘X’.
A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund under the new Companies Act (2013).
👉Above to be complied in the interest of profession