Recap -
Ø SEBI to consider easier rules for buybacks, reward for informants
Ø NCLAT refuses relief to Deloitte, BSR Associates
Ø Economists estimate GDP growth of 5.5-5.6% in Q1 FY20 amid slowdown
Ø Bharti Airtel may not buy 5G spectrum and 'expensive' 700 MHz airwaves
Ø IL&FS board seeks NCLT nod to sell wind assets to Orix Corp for Rs 4,800 cr
Ø SEBI board mulls tighter checks on rating agencies
Ø COAI urges cut in USO fee to 3%, licence fee to 4%
Ø Govt. allows airlines to use Jet slots till end Dec
Ø NCLT admits Insolvency resolution plea against HDIL
Ø Karnataka govt cancels NMDC lease for Donimalai mine, opts for auction
Ø EY sets 18-month timeline for merger of three insurance companies
Ø Dr Reddy’s gets 8 observations from USFDA for its Duvvada facility
Ø Emami Agrotech plans Rs 700-cr cap-ex over next 12 months
Ø Floods, landslides lay waste areca plantations on 1,900 acres
Ø IndiGrid eyes power transmission assets worth Rs. 8,000 cr
Ø Govt. cancels coal block jointly allocated to NTPC, JKSPDC
Ø Compliance culture of Indian banks unsatisfactory: RBI deputy governor
Ø Apple to pump in $6 billion to compete with Amazon, Netflix
Ø TCS surpasses RIL to reclaim most valued firm by market capitalisation
Ø Lenders may be forced to convert Rs 4,00,000 crore of their DHFL debt into equity: Union Bank
Ø Jaiprakash Associates to appeal against CCI order
Ø GAIL to invest Rs 45,000 crore in expansion of pipelines, city gas network
Ø Rupee hits fresh 6-month low of 71.71; dives 28 paise
Ø Gold touches fresh all-time high of Rs 38,770 on jewellers' buying
Ø Crude oil futures up on positive cues
Ø Hyundai to put in Rs 7,000 crore
.
=======>
.
©orporate Updates on 22.8.2019
Ø Reserve Bank allows e-mandates on cards
Ø SEBI okays Rs 1 cr reward for corporate whistle blowers
Ø Data usage revenue jumps to 54,671 crore in 2018: TRAI
Ø China slowdown to hit banks in Asian market: Fitch
Ø Changes in STT on Options from September 1
Ø EPFO appoints UTI AMC, SBI MF as fund managers
Ø From simplified KYC process to re-categorisation, SEBI eases norms for FPIs
Ø Need to examine issues on 35% minimum public shareholding plan: SEBI chief
Ø SEBI mandates full disclosure on loan defaults with rating agencies
Ø Rupee can depreciate another 4% against the USD by 2019-end
Ø Regulatory worries, price erosion may pull down Dr Reddy's US revenues
Ø Centre to amend MMDR Act to expedite coal exploration
Ø Nippon Life Insurance increases stake in RNAM to 54%
Ø Centre keeps cancellation of NMDC’s Donimalai mining lease in abeyance
Ø Zydus Cadila gets USFDA nod to market generic chronic angina drug
Ø Supreme Court issues notice to DLF, SEBI on non-disclosure of key information in QIP
Ø Fixing weak growth is highest priority: RBI MPC minutes
Ø SEBI eases rules for ‘muni bonds’ to help smart cities raise funds
Ø JPMorgan is shutting down its Chase Pay app
Ø INX Media case: P. Chidambaram to be produced in court, will plead for bail
Ø SEBI reverses previous decision prohibiting debt MFs to invest in unlisted NCDs
Ø Not in race to pick stake in Coffee Day Enterprises: ITC
Ø RTGS system for customer transactions to open at 7 am from August 26: RBI
Ø SEBI will look into details gathered on CG Power, says Ajai Tyagi
Ø Second leg of ideation exercise for PSU banks to begin from Thursday
Ø Rupee recovers 16 paise to close at 71.55 a dollar
Ø Gold hits new high of Rs. 38,820; silver jumps Rs. 1,140
Ø India Inc reports lower revenue, profit growth in Q1: Report
Ø SENSEX tumbles 268 points; Tata Motors tanks 9 per cent
Ø SBI plans to establish nearly 10 lakh YONO Cash Points
.
=======>
.
Income Tax : Key recommendations in Task Force's Report
The Government has constituted a task force in November 2017 to draft a new direct tax laws in consonance with economic needs of the country. The proposed new Income-tax law, if accepted, will replace the existing Income-tax Act, 1961 which is a 58 years old legislation. The task force headed by the CBDT member, Mr. Akhilesh Ranjan has submitted its report on the new Income-tax law. However, the details of report and its recommendations have not been made public as yet.
As gathered from different sources, it appears that the task force has submitted following recommendations in respect of new Income-tax law:
1.Incentives for start-ups
The task force has proposed a slew of incentives for start-ups in its report. With an emphasis on reducing litigation, the report has suggested that the tax treatment for start-ups should be separate.
2.Change in reassessment Rules
The task force has suggested major changes in reassessment provisions in a bid to reduce the litigation. The report has suggested various changes in the current provisions of sections 147 and 148 which empower the Assessing Officers to re-open the assessments. It is recommend to increase the threshold limit for re-opening of cases. Further, the pre-defined criteria to select cases for re-assessment should be more stringent.
3. Abolish Dividend Distribution Tax (DDT)
The task force has recommended to abolish the dividend distribution tax ('DDT'). DDT is a tax which is required to be paid by the companies distributing dividends to its shareholders. It is recommended that instead of levying DDT on companies, the tax should be levied in the hands of shareholders.
4. Reduced 25% tax rates for all corporates
It is recommended to reduce the tax rates for all the corporates to 25%. The existing tax rates for a domestic company and a foreign company are at 30% and 40% respectively.
5. New slab rate for persons having income up to Rs. 50 lakh
The existing Income-tax Act, provides for levy of 5% tax on income ranging between Rs. 2.5-5 lakhs, 20% for Rs. 5-10 lakhs and 30% for more than Rs. 10 lakhs. The task force has recommended to introduce a new slab for those earning up to Rs. 50 lakhs so as to grant relief to individual taxpayers.
6. Assessment units should conduct assessment instead of Assessing Officer
Under the Income-tax Act, Assessing Officers are empowered to carry out assessments of the taxpayers. The report has suggested that regular assessments shall be carried out by 'Assessment Units' instead of 'Assessing Officers'. The task force has proposed to replace the word 'Assessing officer' with 'Assessment Units' in the new Income-tax laws.
7. Functional units would be established based on IRS officer sectorial specialization
The task force has recommended to establish the functional units based on sector-wise specialization of IRS officers. The functional units will carry out transfer pricing assessments and handle industry specific tax matters.
8. Litigation management unit to manage tax litigation process
The number of litigations relating to various provisions of Income-tax Act, 1961 are enormous. To handle such litigations, the Task force has recommended to establish a separate litigation management unit to manage the entire tax litigation process.
9. Taxpayer would be able to approach CBDT for clarification
The task force has recommended to introduce the concept of 'public ruling' whereby taxpayers can approach CBDT for clarification on controversial tax matters.
10. Branch profit tax on repatriation of funds by foreign companies to foreign headquarters
Foreign companies will have to pay branch profit tax in addition to normal tax on repatriating funds to foreign headquarters.
11. Penal of mediators for settlement of the tax disputes
The task force has recommended to form a penal of 'mediators' who would assist in negotiation between tax department and the taxpayers for the settlement of tax disputes.
12.Transfer pricing assessment would be carried out by separate functional unit
The task force has recommended to separate transfer pricing assessments from regular assessments. Further, transfer pricing assessment will be carried out by functional unit.
13. No inheritance tax
There were speculations that the Government may reintroduce the Inheritance Tax in the Union Budget 2019 to enhance tax revenue but no such proposal was actually made in the Budget. The task force has also not recommended to levy inheritance tax.
14.Video recording of statements
The task force has recommended video recording of statements made during the course of search & seizure and survey operations. This will help dept. to have evidence that no pressure or coercion was applied on person while recording the statement.
15.Restructuring of MAT provisions
Minimum Alternate tax (MAT) is payable by the companies whose tax on total income is less than 18.5% of 'book profit'. The task force has recommended restructuring of existing MAT provisions.
16 Artificial intelligence for tax compliance
The report has suggested use of artificial intelligence (AI) in the tax-compliance and administration process. It has been proposed to introduce collaborative compliance in direct tax administration which will integrate data from banks, financial institutions and GST network. This will done to ensure that the scope of taxable income increases.
17.Abolish tax on long-term capital gain arising from transfer of listed securities
The Finance Act, 2018 has withdrawn the exemption under section 10(38) of the Income-tax Act, 1961 and has introduced a new section 112A which provides that long-term capital gains (LTCG) arising from transfer of a long-term capital asset, being an equity shares or specified units, shall be taxable at the rate of 10% if such capital gains exceed Rs. 1 lakh. The task force has recommended to remove such tax in the new Income-tax law.
.
=========>
.
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. CA Ishaq Esmail Lakkadghat Versus Income Tax Officer, 11 (3) -1 Mumbai.
CBDT instructions No 3/2003 dated 20.05.2003 makes it mandatory for the AO to make a reference to the TPO. The failure to make reference to the TPO renders the Transfer Pricing Adjustments made therein are bad in law though the assessment order is good. (Favour of Assessee) PCIT vs. S. G. Asia Holding (I) Pvt. Ltd (Supreme Court).
DTC panel recommended A substantial cut in personal income taxes to bring relief to India’s middle classes as also a lower corporation tax. The panel has also likely proposed that dividend distribution tax (DDT) be taxed only in the hands of recipient and not in the hands of companies.
Due date for GSTR-3B return for July 2019 has been extended to 22/08/2019.
Days after the government agreed to decriminalise non-compliance with corporate social responsibility spending norms, the Ministry of Corporate Affairs (MCA) is planning to look at several other penal provisions in the Companies Act, 2013, and treat them as civil offences.
Sebi is planning to ease its norms for buyback of shares by listed companies, especially those having subsidiaries in housing finance and NBFC sectors. the buyback offer cannot exceed 25 per cent of the aggregate paid-up capital and free reserves of the company, but shareholders' approval is required through a special resolution in case of the size exceeding 10 per cent.
.
=======>
.
👉🏻Date extension the only solution for GST annual return & GST audit
(Postpone the due date for filing Annual Returns and GST Audit Reports for the fiscal year ended March 2018 to November 30, 2019 and for year ended March 2019 to March 31, 2020)
👇🏻 👇🏻 👇🏻
http://bit.ly/2KK5Ow2
👉🏻Govt moves to appoint heads of BoI, BoB, PNB and Canara Bank
(Banks Board Bureau has invited applications for the post of managing director (MD) and chief executive officer (CEO) in four leading public sector banks—Bank of India (BoI), Bank of Baroda (BoB), Punjab National Bank (PNB) and Canara Bank.
👇🏻 👇🏻 👇🏻
http://bit.ly/2Zl4Mii
👉🏻NCLAT Refuses To Stay NCLT Hearing In IL&FS Case
(NCLAT was hearing the auditors’ appeals against the order of the Mumbai bench of the NCLT. NCLAT also said that it will not pass any final order till its next hearing on September 20)
👇🏻 👇🏻 👇🏻
http://bit.ly/2KK7INc
.
=======>
.
Slashing GST rate can help bring back growth in auto industry: Hyundai CEO:
READ MORE- https://www.gststation.in/slashing-gst-rate-can-help-bring-back-growth-in-auto-industry-hyundai-ceo/
.
=======>
.
FM Nirmala Sitharaman calls for efficient resolution of tax disputes:
READ MORE- https://www.gststation.in/fm-nirmala-sitharaman-calls-for-efficient-resolution-of-tax-disputes/
.
=======>
.
Kerala tightens GST screws, expects Rs 1,500-crore in fine:
READ MORE- https://www.gststation.in/kerala-tightens-gst-screws-expects-rs-1500-crore-in-fine/
.
=======>
.
Taxman to ‘vigorously pursue’ non-filers of GST:
READ MORE- https://www.gststation.in/taxman-to-vigorously-pursue-non-filers-of-gst/
.
=======>
.
GST: non-compliance will attract heavy penalty:
READ MORE- https://www.gststation.in/gst-non-compliance-will-attract-heavy-penalty/
.
=======>
.
Direct Tax Code - Significant recommendation and proposed changes which may come in Income Tax
In order to review the Income-tax Act, 1961 and to draft a new direct tax law in consonance with the economic needs of the country, a Task Force was constituted by the Government in November, 2017. The new direct tax code will replace the existing income tax act of 1961.
After giving extension for more than 3 times the Direct Tax Code was submitted to FM on 19th Aug 2019. The Task force headed by Akhilesh Ranjan, Member of Central Board of Direct Taxes (CBDT), has submit its Direct tax code (DTC) report to Finance Minister Nirmala Sitharaman
The members of the task force also include Girish Ahuja (chartered accountant), Rajiv Memani (chairman and regional managing partner of EY India), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G.C. Srivastava (retired IRS and Advocate).
The actual Direct Tax Code copy will be made public at the later date once government has studied it Following are some of the expected changes which are proposed as per the source based information
1) Changes in Tax Bracket
2) Separate treatment for Start up from Normal Business
3) Anonymous assessment
4) Lower corp tax rate
5) Removal of Surcharge, DDT and Cess
6) Fewer Sections than Income Tax Act
Proposed DTC to have far fewer sections than over 700 in the Income Tax Act. Expected 300 sections only
7) System-based cross verification of the financial transactions, reduction in litigation and expeditious disposal of appeals
8) No inheritance tax
9) Video recording of statements
10) Artificial intelligence for tax compliance
.
======>
.
GST dept yet to implement high court’s order on ITC:
READ MORE- https://www.gststation.in/gst-dept-yet-to-implement-high-courts-order-on-itc/