30 August 2019 News and Updates

©orporate Updates on 30.8.2019

Ø NBFC funding to commercial sector plunges 20%: RBI

Ø Govt. to announce two big steps to boost industry

Ø Bank fraud touches Rs 71,543 crore in 2018-19: RBI

Ø Stimulus package "too little, too late": Fitch

Ø Wipro expands its partnership with Google Cloud

Ø Client securities: SEBI extends deadline by a month to implement new provisions

Ø Banks contain gross NPAs at 9.1% in FY19: RBI

Ø Currency in circulation increases 17% in FY19 to Rs 21.1 trillion: RBI

Ø Coal India gets jittery over 100% FDI, commercial mining in sector

Ø ONGC plans to borrow $2 billion through overseas debt programme

Ø Foreign players to get nod for offshore G-secs: RBI annual report

Ø Tiger Global, WestBridge Capital lead $42 million funding round in Vedantu

Ø ADB willing to lend over $12 billion to India over the next three years

Ø Ambani: India will be leader in adopting technologies of 4th industrial revolution

Ø Essel to sell solar power assets to Adani Green Energy for ₹1,300 cr

Ø Despite mild inflation, crops expected to get better prices

Ø JM Financial’s PE arm invests ₹45 cr in Mumbai-based Innovcare Lifesciences

Ø Mutual funds continue to cut exposure to debt of NBFCs

Ø MG Motor ties up with Delta Electronics for setting up charging stations

Ø RBI’s FY19 profit rises over three-fold at Rs1.76 trillion

Ø Adani Green to pick up 205MW of solar assets from Essel for ₹1300 crore

Ø Reliance Jio market share may jump to 45%: India Ratings

Ø RBI to soon issue new salary norms for private, foreign bank heads

Ø Tata Projects executes 41.42-km transmission line in Thailand

Ø RBI plays down deepening slowdown as just ‘cyclical downswing’

Ø Microfinance industry grew by 42.9 per cent in Q1 of FY20

Ø SENSEX tanks 383 points on F&O expiry; Nifty ends below 11,000

Ø Gold crosses record Rs 40,000-mark as recession fears seep in

Ø Auto sales to decline sharply across segments this fiscal

Ø Retail FDI norms to increase exports

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GST - Section 67 of CGST Act, 2017 –

Petitioner seeking direction to the Director General of GST Intelligence to supply the documents seized during search operation - Petitioner also seeking direction to the Respondents to hand over copies of the documents seized – Respondents stand that if the copies are given, they may be manipulated or fabricated to evade the payment of tax - HELD - Section 67(5) of the Act creates a right to receive the copies by a person from whose custody the documents are seized. The said person need not give justification why he needs the copies of the documents seized. Therefore, the argument that the Petitioner must show a cogent reason why the Petitioner needs copies and only an inspection by the Chartered Accountant will suffice has to be rejected - The legislative intent is clear that the documents or books seized must not be kept in the custody of the officer for more than the period necessary for its examination and copies thereof need to be given to the person from whose custody the said documents or books are seized. The reasonableness of the action depends on the facts of each case. If the right to get copies of the documents and the power of the authorities to refuse the same has to be balanced, then the balance may shift by the passage of time and continuing withholding of copies can become unreasonable assuming it is justified at the inception. The documents were seized in January 2019, and the petition is being heard in the middle of August 2019. The prejudice to the Petitioner has been demonstrated - refusal by the respondent to give copies of the documents to the Petitioner which are seized under Panchanama dated 9/10 January 2019 is not justifiable – the respondent-authorities to furnish copies of the documents within two weeks - The writ petition is disposed of
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Customs/DGFT – EOU to DTA clearance - claim of CST refund –

Applicant seeking CST refund in respect of inputs procured from other EOUs and in respect of inputs used in production of final products cleared into DTA – HELD - the issue with regard to the goods supplied by the EOUs to EOUs is concerned, is no longer res integra and settled in favour of applicant - the provisions in the Foreign Trade Policy govern the statutory scheme of the policy, and in such circumstances, the appendix or the Handbook of Procedures cannot override the Foreign Trade Policy provisions. In case of a conflict, the Foreign Trade Policy provisions should prevail vis-a-vis the appendix in Handbook of Procedures, which are nothing but a subordinate legislation - The Foreign Trade Policy, more particularly, para 6.11(c)(i) makes it clear that an EOU shall be entitled to the reimbursement of the CST goods manufactured in India. If that be so, the appendix of the Handbook of Procedures could not have been relied upon - the policy making authority never invited to distinguish the raw materials used for the production of goods cleared into the DTA vis-a-vis the raw materials used in the final product used for other clearance for the grant of refund of the CST products on the same raw materials - this petition succeeds and allowed
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 Due date for submitting income tax returns is 31st Aug 2019 for all cases in which income tax audit is not mandatory.

Task force on direct tax code has recommended abolishing the dividend distribution tax while retaining the longterm capital gains tax and securities transaction tax, a source in the know of the matter said.

MCA has notified on its website that as per the Companies (Incorporation) Fourth Amendment Rules, 2018 dated 18th December 2018 a new form RD GNL-5 and changes to Form RD-1 has been notified.

RBI’s balance sheet should be strong enough to support banks if there is a need to recapitalise them during a financial crisis, said the report of the committee to review the economic capital framework (ECF) of the central bank.

RBI Governor may have ruled out an Asset Quality Review for NBFCs, but an ongoing central bank inspection of the books of non-bank companies shows that the exercise is as stringent as the official scrutiny that had earlier pushed high-street lenders to declare higher bad loans.

Multipurpose Empanelment Form for the year 2019-20 is live at www.meficai.org. last date for submission of online MEF Form for the year 2019-20 is 11th September, 2019 and online Declaration is to be submitted within 10 days of the filling of MEF but not later than 18th September, 2019.

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Sabka Viswas Legacy Dispute Resolution Scheme, 2019 under the Finance (No. 2) Act, 2019 applicable from 1st September, 2019 to 31st December, 2019

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Merely because builder has been provided a different time-line for completion of project to RERA would not cut any ice because IBC overrides RERA and secondly financial creditor is not a party to any such transaction and, therefore, time provided in contract for completion of project is to be followed. There is no question of a conflict between two enactments and both will have an overriding effect in fields exclusively assigned to them.

Moreover, RERA was notified on 1-5-2016 and IBC was notified later on different dates commencing from 5-8-2016. The provisions of section 238 were enforced with effect from 1-12-2016. It is well settled that later statues would override earlier one on account of its overriding provisions as law maker are supposed to have knowledge of all existing laws.
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XLOOKUP : Excel is Exciting me More and More, everyday.

XLOOKUP is the successor to the VLOOKUP and HLOOKUP..

Why release a new lookup function?

While VLOOKUP was widely used, it has several well-known limitations which XLOOKUP overcomes:

1. Defaults to an “Approximate” match:

Most often users want an Exact match, but this is not VLOOKUP’s default behavior. To perform an Exact match, you need to set the 4th argument to FALSE. If you forget (which is easy to do), you’ll probably get the wrong answer.

2. Does not support column insertions/deletions:

VLOOKUP’s 3rd argument is the column number you’d like returned. Because this is a number, if you insert or delete a column you need to increment or decrement the column number inside the VLOOKUP.

3. Cannot look to the left:

VLOOKUP always searches the 1st column, then returns a column to the right. There is no way to return values from a column to the left, forcing users to rearrange their data.

4. Cannot search from the back:

If you want to find the last occurrence, you need to reverse the order of your data.

5. Cannot search for next larger item:

When performing an “approximate” match, only the next smaller item can be returned and only if correctly sorted.

6. References more cells than necessary:

VLOOKUP 2nd argument, table_array, needs to stretch from the lookup column to the results column. As a result, it typically references more cells than it truly depends on. This could result in unnecessary calculations, reducing the performance of your spreadsheets.

Read more at https://techcommunity.microsoft.com/t5/Excel-Blog/Announcing-XLOOKUP/ba-p/811376

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NCLAT : In M/s. C. Mahendra International Ltd. vs. Shri Naren Sheth and Anr.

The Appellate Tribunal inclined to grant relief to the application for resolution plan submitted by the shareholder of the Corporate Debtor, being ineligible in terms of Section 29A.

Read full article at : https://dasgovernance.com/2019/08/30/nclat-in-m-s-c-mahendra-international-ltd-vs-shri-naren-sheth-and-anr/
           

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GST – ascertainment of whether the appellant is either a consignee or a consignor and whether the invoice and other documents are genuine documents – HELD - The appellant can always contend before the concerned authority that in view of the circular dated 31st December 2018, in particular clause (6) thereof, the appellant will have to be treated as the owner of the detained goods and therefore, the penalty payable will be as per clause (a) of sub-section (1) of Section 129 of the CGST Act, 2017. Though the notice proceeds on the footing that clause (b) of sub-section (1) of Section 129 is applicable, the concerned authority will have to consider the applicability of sub-section (1) of Section 129 and if prayed to that effect, whether the appellant is entitled to the benefit of clause (c) of sub-section (1) of Section 129 of the said Act of 2017 - the exercise of factual finding that the appellant will have to be treated as the owner under the circular dated 31st December 2018, will have to be left to the authority – writ appeal is disposed of
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GST - Petition seeking rectification of GSTR 3B – inadvertent mistake in reporting IGST input tax credit - petitioner contention that in the absence of any provision in Section 39 of CGST Act, 2017 or the relevant rules, it is entitled to rectify the mistake that has crept in GSTR-3B Returns – HELD – a prima facie case is made out by the petitioner and as the issues raised in the writ petition require detailed examination, this is a fit case to grant the interim order - the petitioner is permitted to rectify GSTR-3B statements for the months of August and December, 2017 and January and February, 2018 manually subject to the outcome of the writ petition. It is made clear that if the petitioner submits rectified statements for the above purpose, the respondents

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CBDT issues Clarification in respect of filling-up of the ITR wrt Directors, Foreign assets and NRIs.

CBIC extends the officer interface facility to resolve GST invoice mismatches for shipping bills filed upto July 31, 2019.

EPFO Circular dated 28 August 2019 issued is with reference to the Supreme Court of India ruling dated 28 February 2019 on the coverage of allowances under basic wages for calculation of Provident Fund contributions.

MCA has issued the companies (Incorporation Seventh Amendment Rules, 2019. They shall come into force from the date of publication in the Official Gatette. It has amended form RD-1 and introduced new form RD GNL-5 for filing any application with the Regional Director.

RBI has notified the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2019 w.r.t Acceptance of Deposits by the issue of Commercial Papers.