©orporate Updates on 13.09.2019
Ø Aug retail inflation rate climbs, rate cut hopes high
Ø RBI cuts risk weight on consumer credit to 100 percent
Ø U.S., China tariffs could lower global GDP by 0.8%:IMF
Ø Domestic air passenger traffic slips to 1.8% in July
Ø Govt. cover for borrowers with bad credit score
Ø SBI revises service charges from October 1
Ø Altico defaults on interest payment, raises concern
Ø RIL's e-auction mechanism for new KG-D6 gas; bidding likely on Oct 11
Ø Hindustan Unilever emerges front-runner for Dinshaw's Dairy Food
Ø For the first time in FY20, RBI becomes net seller of dollars in July
Ø L&T bags contract worth up to Rs. 2,500 crore in Maharashtra and Odisha
Ø Bhushan Power: JSW Steel to move NCLAT on Sept 13
Ø Finance Secretary to chair review meeting of PSBs
Ø Saudi, Russia call for compliance with OPEC+ supply curbs
Ø India Inc revenue growth in Q1 skids to 11-quarter low of 5.7%
Ø Reliance moots ‘supply or pay’ model for new gas fields
Ø Vedanta Sesa Goa working on drought mitigation measures in Chitradurga
Ø RBI increases banks' loan exposure limit to single NBFC
Ø PE-backed real estate lender Altico defaults on debt payment
Ø ECB cuts key rate, to restart bond purchases
Ø Ola, Uber factor not major reason for auto slowdown: Maruti to FM
Ø SBI launches OFS to sell stake in life insurance biz
Ø Hiranandani plans ₹2,000 crore investment in warehousing business
Ø Finance Secretary Rajiv Kumar to meet heads of PSU banks on September 19
Ø NCLAT to hear Shapoorji Pallonji’s plea on Adani Power bid for Korba West Power
Ø Govt. may provide incentives to leather sector to boost exports
Ø Rupee rises for 6th day, spurts 52 paise to 71.14 vs USD on trade truce hopes
Ø Iron ore glory days numbered as China slows
Ø Retail inflation inches up to 10-month high of 3.21 pc in August
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GST – West Bengal AAR - The Applicant has been set up under Notification of the Department of Health & Family Welfare, Government of West Bengal, as a fully owned body for managing the procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities - Managing procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities is an activity in relation to establishment and maintenance of hospitals and dispensaries. The Applicant is a body established by a State Government Notification, with 100 per cent participation by way of equity and control. It is, therefore, a Governmental Authority as defined under para 2(zf) of the Exemption Notification No 12/2017-CT(Rate) dated 28.06.2017 - the Applicant is eligible for exemption under Sl. No. 5 of the Exemption Notification on supply of any service, including composite supplies like works contract service whatever be the proportion of goods, in relation to establishment and maintenance of hospitals and similar health facilities
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GST – West Bengal AAR - The Applicant is supplying cleaning and sweeping service, which is a composite supply having supply of cleaning material ancillary or incidental to the principal supply of cleaning and sweeping service - 'Sanitation and similar services', classified under SAC 99945, includes sweeping and cleaning, but only with reference cleaning of a road or street. Cleaning of hospital premises is not, therefore, classified under 'Sanitation or similar service' - Benefit of exemption from the payment of GST is not available to the Applicant under Notification No 12/2017-CT(Rate) dated 28.06.2017 for the supply of security services and cleaning and sweeping services
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Customs/DGFT – petitioner aggrieved by the impugned order denying the benefit of export obligation for failure/ non-supply of bill of export – HELD - there is no dispute that Additional Director General of Foreign Trade who passed the impugned order was satisfied that the Petitioner has fulfilled the export obligation but he denied the benefit of export obligation to the Petitioner only on the ground of non-furnishing of bill of export. This view taken by the impugned order is contrary to the binding decision of this Court upheld by the Supreme Court - non-availability of bill of export would not by itself lead to denial of benefit of fulfillment of export obligation, if the export to SEZ can be evidenced by other contemporaneous documents - fulfillment of export obligation in respect of supplies made to SEZ can be established by the documents others than the bill of export, if the same is not available – the petitioner is now entitled to make an application to the Director General of Foreign Trade for issuance of MEIS scrip – answered in favour of petitioner
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GST Council, at its meeting on Sept 20, may also consider extending exemption to FY19
Small Goods & Services Tax (GST) assessees are likely to be exempted from filing annual returns for a year or so.
According to officials, small assessees could be categorised into two groups — those with annual turnover up to ₹2 crore and those with annual turnover of up to ₹5 crore. As on June 30, there are nearly 1.39 crore total assessees. Of these, nearly 86 per cent have a turnover of up to ₹2 crore. If the threshold of ₹5 crore is taken into account, it will cover 92 per cent of the assessees.
The GST Council on September 20 will consider a proposal to exempt assessees up to a certain threshold from filing annual return for the financial year 2017-18 only or for the financial year 2018-19 as well, an official told BusinessLine. It is believed that the Law Committee associated with the GST Council has cleared a proposal for such an exemption, but this can be implemented only after the Council gives a nod and a notification is issued.
Experts are divided over the proposal. Anita Rastogi, Indirect Tax Partner with PwC, felt that for small tax payers, this will be a relief and a step towards improving the ease of doing business. But for large tax payers, the form needs to be simplified. However, Rajat Mohan of AMRG felt that scrapping of annual filing for any taxpayer due to tech glitches is not a good sign for a prospective digital economy. When the return dates were extended, the government had cited technical glitches as the reason.
“This scrapping may also affect the revenue distribution of States to the extent of unreported ineligible tax credits,” he said.
Every GST assessee has to file an annual return in GSTR 9. Among these assessees, every registered taxable person whose turnover during a financial year exceeds ₹2 crore will also be required to get his accounts audited by a chartered accountant or a cost accountant and then submit a reconciliation statement in GSTR 9C along with GSTR 9. Assessees under the composition scheme (businesses with turnover up to ₹1.5 crore) will be required to file the GSTR 9A form. The last date for filing all these returns for the financial year 2017-18 has been extended to November 30 from August 31. The last date for financial year 2018-19 is December 31, 2019.
A cause of concern
However, assessees, particularly the smaller ones, are still struggling with the returns. Though the annual return is a compilation of all the monthly/quarterly return already filed, it gives a clearer idea about the tax liability or credit. Experts say bifurcation of credit into input and input service, vendor-wise bifurcation of inward supplies under reverse charge, HSN (harmonised system of nomenclature) and rate-wise summary of inward supplies and HSN code reporting at six- digit level are some of the additional requirements troubling taxpayers.
Besides, these forms were issued by the government after the close of statutory audits for financial year 2017-18, which created problems for taxpayers as the books of accounts were already closed for the financial year, and indirectly these forms required taxpayers to capture additional data at the input level stage, which was practically not possible.
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👉🏻All India level raids find bogus firms, fraudulent GST claims
(The raids were conducted on Wednesday by 1,200 officers at 336 different locations spread across 27 cities. It showed a potential fraud of around INR 470 Cr of input tax credit on an invoice of INR 3,500 Cr)
👇🏻 👇🏻 👇🏻
http://bit.ly/2lOdXpk
👉🏻RBI increases banks' loan exposure limit to single NBFC
(RBI increased loan exposure limit of banks to a single NBFC (excluding gold loan companies) from 15% to 20% of its capital base)
👇🏻 👇🏻 👇🏻
http://bit.ly/2m9Dsl3
👉🏻RPF for Appointment of Experts for filing Statutory returns by IBBI
(IBBI invites Request for Proposal for Appointment of Experts for filing Statutory returns.)
👇🏻 👇🏻 👇🏻
http://bit.ly/2lOe3xc
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CBDT issues A one-time facility to apply for compounding of income tax offences has been launched and taxpayers can avail this opportunity by December 31.
CBDT notified E Assessment Scheme Under Income Tax Act which is published in official gudget of India on 12 September 2019.
Income Tax Second Instalment of Advance Tax for FY 2019-20 is last date for depositing 15.09.2019.
Biggest ever pan-India joint operation by Directorate General of GST Intelligence and Directorate General of Revenue Intelligence against fraudulently claiming refund of IGST by exporters.
GST regime and the IBC are locked in a seemingly intractable impasse, entangling companies undergoing resolution. Some are planning to take the indirect tax department to court over the issue. The GST software doesn’t allow companies to pay current or future taxes without clearing dues from earlier years. But under IBC, the tax department has to wait until all creditors get their dues before beginning recovery.
MCA SPICe form containing relevant changes for incorporating Nidhi Companies is likely to be deployed on 12th Sep 2019 for filing purposes.
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👉The GST Council could lower levies for sectors such as Automobiles, Biscuits and other fast-moving consumer goods (FMCG) at its September 20 meeting .
👉SEBI asks listed companies to settle their outstanding dues to the SEBI, Exchanges and depositories before filing 'schemes of arrangement' such as mergers and demergers with the exchanges.
👉SEBI is likely to defer the Budget proposal of raising Minimum Public Shareholding in Listed Companies to 35%
👉Due date to file FY19 GST returns may be extended beyond 31 December
