©orporate Updates on July 19, 2019
Ø SEBI chief reignites autonomy debate over sharing surplus funds to govt
Ø Credit, deposit growth manage to remain in double- digits
Ø SEBI proposes tighter disclosure on auditor resignation
Ø India's CAD grew to $68 billion in 2018-19: IMF
Ø Direct Tax Code report to be submitted by July 31: FM
Ø Yes Bank stabilised in Q1 in terms of asset quality
Ø REC raises $650 million via bonds, aids sovereign sales
Ø No relief from super-rich tax for FPIs structured as trusts: Sitharaman
Ø Vodafone Idea hires Bank of America, Morgan Stanley for $1.9-bn fibre sale
Ø IL&FS senior management asked ICRA for 'desired ratings': ED probe
Ø 17% of corporate social responsibility fund unspent among listed companies
Ø Draft labelling regulations for packaged food and beverages divide industry
Ø Jet Airways interim RP receives claims worth Rs 24,000 cr from lenders
Ø Escorts eyes double-digit growth in construction equipment biz
Ø ACC’s profit up 39% on higher realisation
Ø EU clears Vodafone’s $22 billion deal to expand in Europe
Ø BHEL bags ₹750-cr order from NTPC-Railways JV
Ø HDFC m-cap tops ₹4-lakh cr mark as shares zoom to record high
Ø Consumer goods growth slows as rural demand cools: Report
Ø India's current account balance deficit grew to $68bn in 2018-19: IMF
Ø IL&FS conducts forensic audit of group firms' rating agencies in last 10 years
Ø New amendments to IBC will protect interest of homebuyers: Centre to SC
Ø Ultratech to complete Century Cement merger by September: Kumar Mangalam Birla
Ø IL&FS: NCLT allows Govt to prosecute auditors Deloitte, BSR
Ø CCI approves Nippon Life Insurance’s acquisition of up to 75 percent stake in RNAM
Ø Government considering capital infusion in BSNL
Ø ADB cuts India’s GDP growth forecast to 7 per cent for FY20
Ø Amid a row over RBI reserves, Modi govt eyes SEBI funds
Ø ICRA revises rating for Reliance Powers’ Rs 8,015-crore debt to ‘default’
Ø G7 ministers reach consensus on taxing tech giants like Google, Amazon: France
Ø Gold rises by Rs 170 on jewellers' buying, silver jumps Rs 910
Ø Rupee skids for 3rd straight day; settles 15 paise down at 68.97 vs USD
Ø Sensex tanks 318 pts; Nifty closes below 11,600
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2 years of GST: Over Rs 45,000 crore worth of frauds unearthed so far; what govt is doing to limit frauds:
READ MORE- https://www.gststation.in/2-years-of-gst-over-rs-45000-crore-worth-of-frauds-unearthed-so-far-what-govt-is-doing-to-limit-frauds/
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Two GST officers caught accepting Rs 25,000 bribe:
READ MORE- https://www.gststation.in/two-gst-officers-caught-accepting-rs-25000-bribe/
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Charging Rs 2 GST on curd costs restaurant Rs 15,000 as fine in Tamil Nadu:
READ MORE- https://www.gststation.in/charging-rs-2-gst-on-curd-costs-restaurant-rs-15000-as-fine-in-tamil-nadu/
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Goa to seek addl 5 years for GST compensation:
READ MORE- https://www.gststation.in/goa-to-seek-addl-5-years-for-gst-compensation/
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GST Composition Scheme: Bizmen fail to file tax even as deadline ends:
READ MORE- https://www.gststation.in/gst-composition-scheme-bizmen-fail-to-file-tax-even-as-deadline-ends/
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Authority for Advance Ruling (GST) Maharashtra In Re: Nagpur Integrated Township Pvt. Ltd dated 02.04.2019 Application No. 107 dated 07.01.2019
FACTS: The applicant is having developmental rights in respect of the land owned by Maharashtra Airport Development Company Ltd. (MADC) and also having exclusive rights to design, finance and to lease/transfer same to prospective customer.
They are receiving the lease amounts from their customers during the construction process. Maintenance of the said flats will also be borne by the customers.
ISSUE INVOLVED
1.Whether the transaction between Applicant and lessee is outside the preview of GST as a transaction in immovable property?
2.If not, what is the appropriate classification and rate of GST?
BASIS OF RULING
The entire consideration will be received by the applicant before issuance of completion certificate which doesn’t generally happen in lease transaction and therefore we conclude that the said transaction is only being given a colour of a lease transaction. Since, lease of a residential property is exempt from tax, thereby applicant innovated a colorable device to evade payment of taxes.
RULING
1. The transaction is not outside the preview of GST.
2. The transaction is a composite supply of works contract as defined section 2(119) of the CGST Act, 2017 and would attract tax @ 18%.
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CBDT HAS CHANGED SCHEMA UTILITY ON TODAY, 19-07-2019 AND EFFECTED FROM 20TH-JULY-2019,
1. ITR-5, updated Validation rule document, updated Schema change document, Schema rules.
2. ITR-6, updated Schema change document and Schema rules.
3. ITR-3, Updated Validation rule document.
So, Pls Don't Upload ITR-3, ITR-5, and ITR-6 for while and Wait for new Software Updates.
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🍒New amendments make it impossible for companies to escape CSR responsibility
The Union cabinet has approved changes to the Companies Act of 2013 that make it mandatory for companies to create a ring-fenced escrow account for corporate social responsibility expenditure and transfer unused funds to the National CSR Fund.
The changes also seek to extend dematerialisation of shares to all companies in a phased manner. The Cabinet also extended the term of the Finance Commission by a month to November 30 and expanded its terms of reference to address concerns regarding funds for defence and internal security.
🍒Parliament Clears New Bill to Amend Companies Act, 2013
The government Wednesday approved 43 amendments to the companies law as it seeks to further strengthen the regulatory framework and ensure stricter action for violations.
From de-clogging of the National Company Law Tribunal (NCLT) to bolstering corporate governance standards and tweaking provisions for unspent CSR funds, a slew of changes were cleared by the Union Cabinet on Wednesday.
Read more at:
https://www.news18.com/news/politics/parliament-clears-new-bill-to-amend-companies-act-2013-2234931.html
🍒Difficult to enforce new public holding rule: SEBI
The Securities and Exchange Board of India (Sebi) has told the government that recent budget proposals could undermine its role as regulator, particularly with respect to the recommendation that the minimum public shareholding be raised to 35 per cent from 25 per cent. Already, government-owned companies are laggards in raising this level to the current 25 per cent norm, said a senior SEBI official.
“Going forward, this has to go up from 25 per cent to 35 per cent and ensuring compliance would be greatly impacted particularly from PSUs as SEBI has to depend on government for funding,” the official said. FM Nirmala Sitharaman’s July 5 budget proposals require the regulator to transfer its surplus funds to the Consolidated Fund of India (CFI). It will also need prior government approval for its annual capital expenditure plans, she has proposed.
🍒Auditor resignation: SEBI moots stricter disclosures
Capital-markets regulator SEBI on Thursday proposed to tighten disclosure norms with respect to resignations of statutory auditors in listed companies.
Under the proposed norms, if the auditor of a listed company or a material unlisted subsidiary of the listed entity proposes to resign, and if the auditor has signed the audit report for all the quarters (limited review/audit) of a financial year, except the last quarter, then the auditor should finalize the audit report for the said financial year before giving effect to the resignation. In all other cases, the auditor should issue limited review or audit report for that quarter before such resignations.
🍒Govt may revisit restrictions on issuance of DVRs
The government will review restrictions on shares with differential voting rights (DVRs) in the Companies Act to make it easier for promoters of startups to raise equity capital without losing control. In particular, the government will reconsider the cap of 26 per cent of paid up share capital on DVRs as well as companies requiring a three-year track record of distributable profit to issue such shares. This follows the regulator announcing a new DVR framework starting July 1st
Separately, the government will also review the norm mandating creation of debenture redemption reserves equivalent to 25 per cent of outstanding debentures, considered onerous by the industry.
🍒SEBI tweaks disclosure norms for listed banks
Markets regulator SEBI has revised the disclosure requirements for listed banks regarding divergence in provisioning of assets.
The changes made in the disclosure norms are "in line with the revised RBI requirements," the regulator said in a circular dated July 17.
As per the circular, listed banks will have to disclose to the stock exchanges divergences in the asset classification and provisioning if "the additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the reported profit before provisions and contingencies for the reference period."
Circular:
https://www.sebi.gov.in/legal/circulars/jul-2019/disclosure-of-divergence-in-the-asset-classification-and-provisioning-by-banks_43594.html
IBC & RESTRUCTURING RELATED NEWS
🍒IL&FS case: Ratings were allegedly doctored by agencies, says Grant Thornton
A football match, property deal and contribution to a trust are some of the points flagged by Grant Thornton India where professional judgements of credit ratings agencies were allegedly compromised while they assessed IL&FS group companies.
According to the report, IL&FS Financial Services (IFIN) had invited an official of ratings agency Brickworks to a Real Madrid match in Europe, helped a senior person in Fitch Ratings in negotiating a property deal, and had contributed to Sameeksha Trust – the publisher of the prestigious academic journal Economic & Political Weekly in which former Icra chairman DN Ghosh was associated.
🍒IL&FS: NCLT allows govt to prosecute auditors Deloitte, BSR; C Sivasankaran and 2 independent directors
The NCLT has given a go-ahead to government to prosecute Deloitte and BSR Associates for their failure to detect and report the scams that took place across the now bankrupt IL&FS group and 21 other entities, when they were the auditors of IL&FS Financial Services.
The NCLT in an order posted on its website on Thursday said the corporate affairs ministry can go ahead with prosecution based on the findings of the probe conducted by the Serious Fraud Investigation Office (SFIO).
🍒NCLT allows the Ministry of Corporate Affairs plea to implead 22 more parties
The Mumbai bench of the National Company Law Tribunal (NCLT) has allowed the petition of the Ministry of Corporate Affairs (MCA) to implead 22 more parties as accused in the alleged financial misappropriation in the debt-laden Infrastructure Leasing & Financial Services (IL&FS). This brings the total number of respondents to 343 in the case. The latest move to implead 22 parties includes leading auditors - Deloitte and BSR & Associates, an affiliate of KPMG.
On Thursday, the division bench presided over by VP Singh and Ravikumar Duraisamy allowed the inclusion of Udayan Sen, Deloitte Haskins and Sells LLP, BSR and Associates LLP, and Surinder Singh Kohli, an independent director of IL&FS Financial Services and others.
🍒Fund diversions in bankruptcy cases: Govt panel to check 'fraud' by promoters
The government has set up a screening committee to track the status of bankruptcy cases in which promoters are suspected to have siphoned off funds as it looks to crack down on such diversions, four people aware of the matter told ET.
The committee will check if there is fraud by communicating directly with the resolution professional (RP) in charge of the process so that prompt action can be initiated by the government. The government is excluding lenders as they may not be forthcoming with crucial information in certain cases, said the people cited above.
MSME & STARTUPS RELATED NEWS
🍒MSME credit continues to grow at a healthy rate signalling rapid revival
The sixth edition of TransUnion CIBIL- SIDBI MSME Pulse Report shows continued growth at 12.4% year-on-year (YOY) in the quarter ending Mar’19. Total debt in India has increased at a CAGR of 13.3% to reach the level of INR 253 trillion in a five year period from Mar’15 to Mar’19. Total debt includes government debt, debt of corporate entities and individual borrowers.
The growth in aggregate debt in the past four years is powered by a 22% CAGR growth on lending to individuals (including consumer loan, business loan to individuals and other loans), 13.4% CAGR of lending to commercial entities (including MSME and corporate entities) and a 10.6% of government debt. The comparatively higher rate of individual lending has translated into a major shift in the composition of the lending industry in favour of individuals.
🍒Key takeaways from Union Cabinet decisions on July 17
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday extended the 15th Finance Commission’s term by a month and cleared amendments to other important bills.
🍒Govt likely to move RTI Amendment bill
The government will today introduce a bill to amend the RTI Act which will change pay and allowances of information commissioners, who currently enjoy benefits equivalent to election commissioners.
The move has been criticised by activists who said it will affect independence and neutrality of the transparency panel.
The bill proposes to amend the Right to Information Act, 2005 so as to provide that the term of office of, and the salaries, allowances and other terms and conditions of service of, the Chief Information Commissioner and Information Commissioners and the State Chief Information Commissioner and the State Information Commissioners, "shall be such as may be prescribed by the Central Government."
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SEBI Update 19.07.2019
SEBI Issued circular on Procedure and formats for limited review/audit report of the listed entity and those entities whose accounts are to be consolidated with the listed entity
Applicable with respect to the financial results for the quarter ending September 30, 2019, and after.
https://enlightengovernance.blogspot.com/2019/07/sebi-circular-procedure-and-formats-for.html