©orporate Updates on 3.9.2019
Ø Foreign borrowings double to $4.98b in July: RBI
Ø China’s stimulus measures set to boost cooper price
Ø Public sector banks' heads told to reform boards
Ø No tax demand from startups sans appellate tribunal nod
Ø Growth of eight core industries slows down to 2.1%
Ø Maruti cuts production for 7th straight month in August
Ø PNB Board to consider Rs 18,000 cr capital infusion
Ø Economists predict deeper interest-rate cuts, slow economic growth
Ø ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
Ø NHAI to offer roads as collateral, in talks with SBI to fund projects
Ø Apple gets to bite into Indian retail as policy hurdles are removed
Ø ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
Ø Manufacturing growth slows to 15-month low in August: PMI
Ø Jet Airways fails to attract new bidders
Ø India Inc’s overseas borrowings more than double to $4.98 billion in July
Ø SAIL to provide land for pellet plant joint venture with KIOCL
Ø JK Tyre promoter take control of pledged shares after repaying Rs 200 crore loan
Ø FDI cap in digital media may hit valuations, fundraising
Ø Fintech panel for legislative changes for issuance of FDs in demat form
Ø Sitharaman-led panel weighs ordinance to ban e-cigarette sales
Ø Modern Foods acquires 75% stake in Supreme Baker
Ø 'Economic slump an opportunity for expansion, acquisitions, hiring talent'
Ø DBS revises India’s real GDP growth to 6.2 per cent for FY20
Ø Panel blames lack of level playing field, discriminatory regulation for high level of cash in system
Ø Tata Steel announces closure of UK factory, nearly 400 jobs on the line
Ø Government restores duty-free replenishment facility for jewellery exporters
Ø Coal India output drops 10.3 per cent in August
Ø Tea profit likely to contract 140-150 bps: CRISIL
Ø New FDI norms in single brand retail to increase exports
Ø SBI Cards says IPO process initiated, decision on timing to hit mkt soon
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After taking steps to aid growth, govt must now work to rationalise GST rate:
READ MORE- https://www.gststation.in/after-taking-steps-to-aid-growth-govt-must-now-work-to-rationalise-gst-rate/
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Updates:
Income Tax Department will automatically issue PAN to a taxpayer using Aadhaar number for filing returns as part of a new arrangement to link the two databases.
According to a notification issued by the CBDT on August 30, a person who furnishes Aadhaar, as they do not have PAN, “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any more documents. The rule has come into effect from September 1, it said.
The notification said the tax department will “obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)” for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.
CBDT chairman P C Mody had told PTI in an interview in July that the department would “suo motu” allot a fresh PAN to a person who files I-T Returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.
In cases where Aadhaar is being quoted and PAN is not there, we could possibly think on the terms of allotting a PAN to the person (who is filing income tax return).”
The law provides that the assessing officer can suo motu allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked,” the CBDT chairman had said.
Mody was asked if the Income Tax Department-issued PAN will be dead after Finance Minister Nirmala Sitharaman in her Budget speech on July 5 announced that PAN and Aadhaar are being made interchangeable as the government will allow those who do not have PAN to file I-T returns by simply quoting their Aadhaar number and use it wherever they are required to quote PAN.
Linking of the two databases is now compulsory and backed by law, the CBDT chief had said. While Aadhaar is issued by UIDAI to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to a person, firm or entity.
Aadhaar holds all vital information of an individual such as name, date of birth, gender, photo and address, and also biometrics. The same set of information is required to get a new PAN.
As per data, over 120 crore Aadhaar numbers have been issued in the country and about 41 crore PAN numbers have been generated. Out of these, more than 22 crore PANs are linked with Aadhaar.
Section 139 AA (2) of the I-T Act stipulates that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate their Aadhaar number to tax authorities.
After the Supreme Court upheld the section 139AA, the government in March this year declared that the deadline for linking PAN-Aadhaar was available till September 30.
The apex court, in September last year, had declared the Centre’s flagship Aadhaar scheme was constitutionally valid and held that the biometric ID would remain mandatory for filing of I-T returns and allotment of PAN.
The latest notification said the tax department will be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof”.
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GST: Income tax collections are woefully short, implement DTC:
READ MORE- https://www.gststation.in/gst-income-tax-collections-are-woefully-short-implement-dtc/
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Cut GST before festival season: Carmakers to government:
READ MORE- https://www.gststation.in/cut-gst-before-festival-season-carmakers-to-government/
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CBIC asks officers to meet GST refund target:
READ MORE- https://www.gststation.in/cbic-asks-officers-to-meet-gst-refund-target/
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Rs 70 crore GST scam: Chandigarh to scan transactions of 20 bogus firms:
READ MORE- https://www.gststation.in/rs-70-crore-gst-scam-chandigarh-to-scan-transactions-of-20-bogus-firms/
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Kerala finance minister says no to GST rate cut on cars, bikes:
READ MORE- https://www.gststation.in/kerala-finance-minister-says-no-to-gst-rate-cut-on-cars-bikes/
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Slow GDP growth to hit GST, tax revenues; RBI surplus transfer to provide cushion:
READ MORE- https://www.gststation.in/slow-gdp-growth-to-hit-gst-tax-revenues-rbi-surplus-transfer-to-provide-cushion/
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👉🏻Income tax dept creates world record with filing of 49 lakh ITRs in one day
(The Income Tax Department made a history with an all time high record of 49 lakh 29 thousand ITRs filed in a single day on August 31)
👇🏻 👇🏻 👇🏻
http://bit.ly/2LfXrZx
👉🏻GST collection slips below Rs 1 Lakh Cr mark to Rs 98,202 Cr in August
(This is the second time during this year that the revenue collection from the GST has slipped below the Rs 1 lakh Cr mark. First, it happened in June when the collection was Rs 99,939 Cr)
👇🏻 👇🏻 👇🏻
http://bit.ly/2ZJOoEd
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Govt addressing issues sectorally, more action soon: FM Nirmala Sitharaman:
READ MORE- https://www.gststation.in/govt-addressing-issues-sectorally-more-action-soon-fm-nirmala-sitharaman/
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CBDT notified creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. An order issued by the CBDT said that the 'startup cell' will be headed by the member (Income Tax and Computerisation) of the board.
GST Notification No. 38/2019-Central Tax dated 31.08.2019 issued waiving requirement to furnish declaration in FORM ITC-04 for the period July, 2017-March 2018 and FY 2018-19.
GST Notification No. 40/2019- Central Tax dated 31.08.2019 issued to extend the last date for furnishing GSTR-7 for the month of July, 2019 to 20.09.2019 in J&K and specified 58 flood affected districts of 7 States.
GST Notification No. 41/2019- Central Tax dated 31.08.2019 issued to waive the late fees for the month of July, 2019 for FORM GSTR-1 and GSTR-6 to be filed by taxpayers in J&K and 58 flood affected districts across 7 States provided the said returns are furnished by 20.09.2019.
Mutual Fund houses can now join hands with banks to rejig exposure and throw lifeline to stressed corporates albeit with a few conditions. In the past five years mutual funds have bank rolled several corporates by subscribing to debt instruments finance by investing in commercial papers issued by companies as well as financed holding companies of business houses directly controlled by promoters.
ICAI All matters to be communicated online only.. Visit ICAI.org.. open Self Service Portal SSP. Register yourself. Login ID six digit membership no@icai.org mobile and email to be updated file declaration. ICAI will approve. After that set password. Now member can communicate with ICAI. Annual Fee, any change in firm particulars, all to be filed online. Confirmation via OTP on Mobile and Email.
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✅ Capital Market Talk ✅
🔘DHFL is likely to issue fresh capital to meet its financial requirements. A positive for this cash-strapped company. Accumulate.
🔘Reports suggest that Philip Morris International, owner of Marlboro cigarettes, is likely to enhance stake in Godfrey Philips (India). A positive for the company. Accumulate.
🔘Power Finance Corporation, a Navratna company, is available at rock bottom prices and it pays good dividends. Buy for the long term.
🔘NMDC’s share price fell on news of losing some of its mines in Karnataka. However, investors overlooked the fact that it has won a bid for a gold mine in Chittoor, Andhra Pradesh. Accumulate.
🔘Strides Pharma Science will soon be out of the F&O list. However, its workings remain strong. In fact, it recently acquired a company in Florida. An attractive buy.
🔘Hindustan Petroleum Corporation has lined up Rs.74000 crore capex over the next 5 years. Its future looks bright. Buy.
🔘Maruti Suzuki is working overtime to retain its No.1 spot in all segments including product development. The management is optimistic about the company’s future. Accumulate.
🔘Hindustan Unilever has slashed the prices of some of its major brands in order to retain its market share. It may be prudent to stay away from this counter until the dust settles.
🔘HSBC recently upgraded Bharat Heavy Electricals on the back of fresh orders worth over Rs.2500 crore. Accumulate.
🔘Indian Oil Corporation intends to scale up its presence in the e-mobility segment. Buy for the long term.
🔘PNC Infratech plans to scale up its presence in the Railway and Highway segments, with ~30% growth in revenues. Buy for about 50% returns within a year.
🔘Ramco Cements has the potential to improve its capacity utilisation on the back of strong demand. Buy for the long term.
🔘After the CEO of Lakshmi Vilas Bank resigned, the market sentiment for Indiabulls Housing Finance (IBHF) turned bearish. A good opportunity to accumulate IBHF.
🔘After a sharp fall, Mahindra & Mahindra has started rising again. With rural demand picking up, its future looks bright. An attractive buy.
🔘CEAT has once again shown breakout patterns. The stock is available at cheap valuations. Buy.
🔘Bank of Baroda intends to buy Rs.6000 crore NBFC loans in this quarter. Accumulate in small quantities.
🔘Talwalkars Better Value Fitness has lost ground after its statutory auditor resigned. The stock is on its downward journey. Accumulate later at lower levels.
🔘Mukesh Ambani holds 72% stake in Hathway Cable & Datacom through Jio distribution companies. He bought stake in February 2019 through an open offer at Rs.32/share. This counter witnessed heightened activity after the broadband/cable plans were announced by Mr. Ambani at the Reliance AGM. Investors should keep an eye on this potential multibagger.
🔘GNA Axles has grown at a rate of ~25% since 3-4 years and expects similar growth this fiscal as well. The stock trades cheap at 6x. Buy for good returns in the next few months.
🔘State Trading Corp. (STC) and MMTC are likely to get merged in the upcoming parliament session. If this happens, expect STC to double or even treble from its current level as historically both STC and MMTC trade at similar valuations. STC, which currently trades at 20% valuations of MMTC, is an attractive Buy.
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GST: Tax on cinema tickets to boost Corpn. coffers:
READ MORE- https://www.gststation.in/gst-tax-on-cinema-tickets-to-boost-corpn-coffers/
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Sitharaman to propose GST cut on automobiles:
READ MORE- https://www.gststation.in/sitharaman-to-propose-gst-cut-on-automobiles/
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GST: Ways to get taxpayers back into the system:
READ MORE- https://www.gststation.in/gst-ways-to-get-taxpayers-back-into-the-system/
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NCLT : In Asset Reconstruction Company (India) Pvt. Ltd. vs. Shivam Water Treaters Pvt. Ltd.
Once the Adjudicating Authority ordered Moratorium under Section 14 of I&B Code, Municipal Corporation had no authority to seal the property of the Corporate Debtor in view of Section 238 of I&B Code.
Read full article at : https://dasgovernance.com/2019/09/03/nclt-in-asset-reconstruction-company-india-pvt-ltd-vs-shivam-water-treaters-pvt-ltd/
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Tax mismatch: 443 Chandigarh businessmen get notices:
READ MORE- https://www.gststation.in/tax-mismatch-443-chandigarh-businessmen-get-notices/
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CBDT member Akilesh Ranjan, is arguing for a new tax regime for individuals. It has proposed dramatic changes to the Income Tax Act, which dates back 58 years. People earning between Rs 5 lakh and Rs 10 lakh per year may have to pay 10% income tax.
CBDT has withdrawn enhanced surcharge on tax payable on the transfer of certain assets. In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharge levied by Finance Act, 2019.
CBDT Clarification on applicability of Tax Deduction at Source on cash withdrawals. 2% TDS on cash withdrawals of more than 1 crore in aggregate from a bank account. Applicable from 1 September 2019. Cash withdrawals done from 1 April 2019 till 31 August 2019 shall be counted for TDS purposes. Read details in TO NOTE section
RBI released The macroeconomic environment remains “unsettled and financial markets are experiencing considerable flux” as the financial year 2019-20 progresses. “The key question that confronts the Indian economy as it looks ahead to the rest of 2019-20.
Finance Minister announces merger of PSB Banks
A. PNB + OBC + United Bank.
B. Canara Bank + Syndicate Bank.
C. Union Bank + Andhra Bank + Corporation Bank.
D. Indian Bank + Allahabad Bank.
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TO NOTE😊
Cash withdrawal of more than 1 Cr will attract 2 percent TDS, limit to be calculated from 1 April 2019.
The Central Board of Direct Tax said that if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019, in the current fiscal, 2 per cent TDS shall apply on all subsequent cash withdrawals
The Budget 2019 has introduce new provision under section new section 194N said that the 2 per cent tax deduction at source (TDS) on cash withdrawals of over Rs 1 crore will come into effect from September 1
The government had made the provision of levying 2 per cent TDS on cash withdrawals exceeding Rs 1 crore in the Union Budget with an aim to discourage cash transactions and move towards less cash economy.
Important clarification government has given via Press Release on 30 August 2019
1) Limit of 1 Crore to be calculated from 1 April 2019 onwards and not from 1 September 2019. So for example if you have withdrawn more than 1 crore from 1 April 2019 till 31 August 2019, any withdrawal from 1 September will attract 2% TDS
2) Any cash withdrawal prior to September 1, 2019, will not be subjected to the TDS
3) if a person will withdrawn Rs 1 crore or more in cash from one or more accounts maintained with a banking company or a cooperative bank or a post office, the 2 per cent TDS would apply on all subsequent cash withdrawals
4) Cash withdrawn from same bank is easily tracked as most bank has centralised system to monitor and report consolidate cash withdrawn per PAN. It would be interesting to see how Cash withdrawn from different banks will be clubbed to apply limit of 1 Crore
This section 194N will be applicable for withdrawals made by any taxpayer including:
An Individual
A Hindu Undivided Family (HUF)
A Company
A partnership firm or an LLP
A local authority
An Association of Person (AOPs) or Body of Individuals (BOIs)
The following payers are covered under this section:
Any bank (private or public sector)
A co-operative bank
A post office
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NCLAT : In M/s. Power Finance Corporation Ltd. vs. M/s. Shree Maheshwar Hydel Power Corporation Ltd. and Ors.
To raise additional grounds or to produce additional evidence which were not raised or produced in the Tribunal can be filed in appeal only after getting leave of the Appellate Tribunal.
Read full article at : https://dasgovernance.com/2019/09/02/nclat-in-m-s-power-finance-corporation-ltd-vs-m-s-shree-maheshwar-hydel-power-corporation-ltd-and-ors/
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👉CBDT to get details of Indians with Swiss accounts on September 1, as the automatic exchange of information regime kicks off between the two countries. India will receive information of the calendar year 2018 in respect of all financial accounts held by Indian residents in Switzerland.
👉In another indicator of economic slowdown, GST collection in the month of August dropped below Rs 1 Lakh Crore mark to Rs 98,202 Crore.
👉Finance minister Nirmala Sitharaman indicated that the Govt may cut GST on automobiles in the near term. Currently automobiles come under 28% GST slab.
👉The Reserve Bank of India and the Enforcement Directorate are investigating Several Companies that have received investments from their foreign subsidiaries or affiliates on the ground that such fund flows could indicate possible round-tripping. They have also started issuing notices to some individuals who have invested in Indian companies through investment arms registered abroad.
Thanks for reading