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Wednesday, 28 August 2019

28 August 2019 News and Updates


© orporate Updates on 28.8.2019

Ø China's new pharma law may open door for India: Report
Ø Jio beats Airtel to be top telecom revenue earner
Ø Bank recapitalisation unlikely to deliver much: S&P
Ø Major relief to stressed realty sector on the anvil
Ø Mutual funds are not there to provide risk capital: SEBI chief

Ø HDFC Life will continue to beat industry growth: CMD
Ø Rupee posts biggest single-day gain in 5 months
Ø RBI's fund transfer eases Centre's gross tax revenue target to 16%
Ø RBI's bonanza to give govt ammunition to fight slowdown, boost capex
Ø Govt. to consider relaxing FDI norms in single brand retail on Wenesday

Ø Microfinance industry to cross Rs 1 trn loan portfolio in Q2 FY20: Report
Ø SEBI asks MF trustees to be more proactive, not wait for regulator to act
Ø India calls for uniform GAP standards in SAARC nations
Ø Chemical industry seeks restoring tax incentive for R&D
Ø Tata Metaliks plans to double ductile iron pipe production

Ø Elgi Equipments’ US-subsidiary Pattons expands into LA
Ø IndiGo looking for new formula to induct wide-body aircraft: CEO
Ø PFC gets shareholders’ approval to raise ₹70,000 cr in a year
Ø S&P places IDBI Bank on credit watch negative owing to capital breach
Ø Antitrust watchdog CCI to assess media, broadcasting sector

Ø CG Power to monetize non-core assets, raise fresh equity
Ø IRDAI sets up single point of contact for regulatory sandbox
Ø DHFL seeks board's approval to raise funds via share sale
Ø FM Nirmala Sitharamana blasts critics of RBI transfer of surplus funds to govt
Ø SBI says doesn’t need capital from government

Ø Cabinet to soon consider India-Mauritius free trade agreement for approval
Ø Government says FDI in chemical industry very low; asks industry to introspect
Ø With aim to create 40,000 jobs, vivo to pump in Rs. 7500 cr to ramp up mfg in India
Ø Maruti Suzuki cuts 3,000 contract jobs
Ø Infosys closes Rs 8,260 cr buyback offer, takes back 11.05 cr shares

Ø Indian economy set for weakest quarter of growth in five years: report

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 In Shiv Kumar Jatia vs. State of NCT of Delhi
An individual who has perpetrated the commission of an offence on behalf of the company can be made an accused, along with the company, if there is sufficient evidence of his active role coupled with criminal intent.
Read full article at : https://dasgovernance.com/2019/08/27/supreme-court-in-shiv-kumar-jatia-vs-state-of-nct-of-delhi/
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GST – Tamil Nadu AAR - the supply of 'Complementary Weaning Food Containing Amylase Activity' is naturally bundled with the delivery at the designated centres as specified as per the bid and agreement and hence, this is a composite supply as per Section 2(30) of the CGST - The applicable rate is 5% GST subject to fulfillment of the conditions of Notification No. 39/2017-Central Tax (Rate) dt 18.10.2017 - As the entire supply of the food and delivery together is a composite supply, the transportation/ delivery alone is not a “Goods Transport Agency service” - This Authority cannot specify how the invoices are to be raised for this composite supply
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Appellate AAR, Rajasthan:

ITC of GST paid on hotel accommodation in Haryana by a taxable person registered in Rajasthan is not available in terms of Section 8(2) of IGST Act,2017 as in this case both the location of the supplier and place of supply of the services are in the State of Haryana.
[Section 8(2) of IGST Act,2017 : Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply:
Provided that the intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit.]
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GST - Tamil Nadu AAR - Rate of tax on “Oil Lubrication Systems” and applicable HSN code – HELD - To arrive at the classification and the applicable rate of tax, the applicant during the hearing undertook to submit the technical write-up, along with usage, drawings, description of each component for each of the categories option that a buyer can buy. The said details are necessary to arrive at the proper classification and the rate of tax. The applicant after being extended enough opportunities has not furnished the required documents. In the circumstances, the Ruling sought for by the applicant could not be furnished for want of the necessary technical details - The application is rejected as the relevant technical details of the supply for which classification and rate of CGST/SGST is being sought, have not been produced
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GST – Tamil Nadu AAR - Whether the amount received on or after 01.07.2017 towards interest, late fee penalty relating to the services other than continuous supply of services (CSS) rendered by the applicant before 01.07.2017 is liable to GST – HELD – applicant has tolerated the delayed payment of consideration of lease/rent which the recipients should have paid much before. Therefore, this tolerance on the part of the applicant for the delayed payment of lease/rent by collecting an interest/late fee /penalty is a separate supply of service as covered under Section 7(1) (a) of the CGST Act, 2017 - The amounts received on or after 01.07.2017 towards interest, late fee penalty relating to the services of lease / rent, due to delayed payment of consideration for those services rendered by the applicant before 01.07.2017, are liable to GST
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 GST - Tamil Nadu AAAR - Fish seeds, prawn/shrimp seeds are classifiable under 0301, are exempt from GST under Sl. No.18 of Notification No.2/2017-C.T. (Rate) dated 28.06.2017 as amended - Live fish is classifiable under 0301, are exempt from CGST under SI. No.19 of Notification No.2/2017-C.T. (Rate) dated 28.06.2017 as amended - Artemia cysts are classifiable under 0511, are taxable at 5% GST - Research and development activities of applicant are towards breeding, developing new species, genetic testing of Seed and adults of diversified aquaculture species, Gene sequencing for confirmation of species, under SAC 9981, are taxable at 18% GST - Consultancy services of applicant are towards nursery technology, cage farming hatching are classifiable under SAC 9986, are exempt from CGST - Testing for pathogens of soil, water, feed etc. and chemical analysis of water and soil and Gene sequencing of pathogens, classifiable under SAC 9983 are taxable at 18% GST - training services to farmers, hatcheries which are support services for rearing of fish, crab, prawn, etc. and are agricultural extension services covered under SAC 9986 and hence are exempt from CGST - The training activities to students, academia who are not directly involved in rearing of fish, aquaculture etc. are covered under SAC 9992 and taxable at 18% GST - the order of the Advance Ruling Authority is upheld
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Government’s decision to partially roll back the additional tax surcharge on share trades has come as a relief to several overseas funds, but promoters and private equity firms wanting to sell their stake off-market will have to pay higher taxes if they are selling their stakes by direct transfer of shares especially in mergers and acquisitions.

The last date for furnishing of Annual Return in the FORM GSTR-9 / FORM GSTR-9A and Reconciliation Statement in FORM GSTR-9C for the financial year 2017-18 has been extended from 31st August, 2019 to 30th November, 2019. RoD Order No. 07/2019-CT dtd. 26.08.2019.

SEBI has eased the regulatory and compliance framework for Foreign Portfolio Investors (FPI) in a bid to boost investments and expedite the registration process for FPI's.

Finance minister announced a slew of relief measures for the economy on Friday, which included allowing NBFCs to directly onboard those customers whose credentials have already been vetted by banks from the UIDAI maintained Aadhaar database.
ICAI is to inform you that the last date for filling the questionnaire to express your interest to serve foreign clients at  https://www.icai.org/cecaswto/  has been extended till 31st August 2019.
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Road ministry seeks GST rate cut for hybrid cars and CNG vehicles:"
READ MORE- https://www.gststation.in/road-ministry-seeks-gst-rate-cut-for-hybrid-cars-and-cng-vehicles/
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GST – Tamil Nadu AAR - The applicant is not entitled to take credit of input tax charged on the inward supply of medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these, which are used to provide medical facilities to the employees, pensioners and dependents in the in-house hospital – the goods and services are used for providing personal medical care to the individuals who are the employees and pensioners of the applicant. They are in effect used for personal consumption of the employees, pensioners and dependents. Therefore, as per Section 17(5) (g) of CGST Act, input tax credit is not available for medical, diagnostic equipment, apparatus, instruments, consumables, disposables, spares and repairing services for these which the applicant is procuring for the consumption of its employees and pensioners and their dependents
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GST fraud: Ghaziabad-based dealer arrested in Hyderabad for evading Rs 20.08 crore:
READ MORE- https://www.gststation.in/gst-fraud-ghaziabad-based-dealer-arrested-in-hyderabad-for-evading-rs-20-08-crore/
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MACRO MEDIA DIGITAL IMAGING PVT LTD: 19.08.2019 - GST – West Bengal AAR - Whether printing of advertising material is a supply of service - The Applicant, being a printer of trade advertising material classifiable under heading 4911 of the Tariff Act, is making a composite supply, where the service of printing, is the principal supply. The goods supplied, having no use other than displaying the printed matter, is ancillary to the principal supply of printing
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GST – West Bengal AAR - Whether evacuation and disposal of ash from the ash pond of a thermal power station is an exempted supply – HELD – The State Government allowed Purba Medinipur Zilla Parishad to undertake evacuation and disposal of the settled ash from the ash ponds of Thermal Power Station to ensure uninterrupted power generation, protection of environment and augmentation of the local fund. Having been issued under section 212 of the West Bengal Panchayat Act, 1973, execution of the above work is an activity in relation to the functions entrusted to a Panchayat under Art 243G of the Constitution - The Applicant's supply to Purba Medinipur Zilla Parishad is a composite supply classifiable under SAC 995433 and exempt under Sl. No. 3A of Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017
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GST – West Bengal AAR - GST implication on the lump-sum received before the implementation of GST and its recovery by KMRCL against the Applicant's sales invoices issued post introduction of the GST - whether GST shall be charged on the gross amount of the invoice or the net amount after adjusting the lump-sum amount outstanding as on 30/06/2017 – HELD - The Contract is to be valued as provided under section 15(1) of the GST Act, which does not restrict in any way the scope of time of supply, as provided under section 13(2) of the GST Act. Moreover, 'consideration' under the GST Act has a wider scope and includes deposits if applied as consideration. In that context, whether the mobilisation advance is earnest money or not is of little relevant - The Applicant is deemed to have supplied works contract service to M/s Kolkata Metro Rail Corporation on 01/07/2017 to the extent covered by the lump-sum that stood credited to its account on that date as mobilisation advance and GST is leviable thereon accordingly. The value of the supply of works contract service in the subsequent invoices as and when raised should, therefore, be reduced to the extent of the advance adjusted in such invoices. The GST should, therefore, be charged on the net amount that remains after such adjustment
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Mobilization advance given for works contract before GST implementation is leviable to GST. (Siemens Ltd. – 19th August, 2019).
Applicant has entered into a contract with Kolkata Metro Rail Corporation (KMRCL) for 'design, supply, installation, testing and commissioning' of power supply and distribution system, third rail system and SCADA system for entire line and depot of Kolkata East-West Metro Rail Project. According to Contract, applicant received mobilisation advance, which was 10 per cent of original contract value prior to 01-7-2017.
The applicant wants to know whether GST shall be charged on gross amount of invoice or net amount after adjusting lump-sum amount outstanding as on 30-6-2017.
The Contract is to be valued as provided under section 15(1), which does not restrict in any way the scope of time of supply, as provided under section 13(2) of the GST Act. Moreover, 'consideration' under the GST Act has a wider scope and includes deposits if applied as consideration. ln that context, whether the mobilisation advance is earnest money or not is of little relevance. Hence, the applicant is deemed to have supplied works contract service to KMRCL on 1-7-2017 to the extent covered by the lump-sum that stood credited to its account on that date as mobilisation advance and GST is leviable thereon accordingly.

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LTCG from penny stocks cannot be treated as bogus if documentation is in order and no fault found by Assessing Officer. Chandra Prakash Jhunjhunwala Vs DCIT (ITAT Kolkata)

The LRS is extensively used by HNIs to transfer funds abroad up to the permitted limit of $250,000 every financial year. Under LRS, there is no restriction on the use of funds remitted abroad –– it can be gifted, spent freely, invested in financial securities, purchase of properties in any part of the world and so on.

CBEC said the designated committee will take a decision within 60 days on declaration made by an assessee for relief under the service tax and excise duty amnesty scheme. Sabka Vishwas - Legacy Dispute Resolution Scheme, 2019, will become operational for four months beginning September 1.

GST Council will hold its 37th meeting on September 20 in Goa, but is unlikely to consider any rate reduction. Many sectors are clamouring for a rate reduction. They range from automobile to cement to biscuit. Now, if it is done for one sector, it can open floodgates. We should not forget the revenue situation.

Supreme Court has said a deposit made by a debtor to show his bonafides in a case of loan settlement cannot be considered a secured asset under the SARFAESI Act and has to be refunded.“The deposit was not towards satisfaction of the debt in question, and that is precisely why the High Court had directed that the deposit would be treated (as) a deposit in the Registry of the High Court.
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Govt to study impact of measures announced: FM Nirmala Sitharaman:
READ MORE- https://www.gststation.in/govt-to-study-impact-of-measures-announced-fm-nirmala-sitharaman/


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