© orporate Updates on 22.9.2019
Ø Oil crisis to have limited impact on inflation: RBI Guv
Ø Banks won't declare NPA for MSME loans till March: FM
Ø TRAI floats paper to simplify, speed up M&A approvals
Ø Coming up: Rs 20k-cr fund for non-NPA housing projects
Ø Rana Kapoor sells 2.3% stake in YES Bank
Ø Telecom body approves Rs. 8,588 crore infra projects
Ø JSW Steel promoters release pledged shares worth Rs. 1,150 crore
Ø Bank stake sales in mutual fund, insurance subsidiaries hit a wall
Ø RCom resolution professional seeks status quo on spectrum licences
Ø Lenders approve Rs 5071 crore debt restructuring plan of three IL&FS firms
Ø Aluminium producers likely to see pressure on profits, says NALCO chief
Ø Reliance Jio has widest 4G network, Airtel's network grows 3-fold: TRAI
Ø Tata Motors rolls out new EV powertrain tech
Ø Apollo Hospitals in pact with US firm to launch healthcare drones
Ø Modi to attend two round tables with CEOs of US companies
Ø No economic crisis in India, Govt. taking steps to make it stronger: Javadekar
Ø Sitharaman may announce more measures on Friday to support economy
Ø Wipro Consumer Care and Lighting sets up venture fund to invest in startups
Ø RBI caps term for banks' concurrent auditor at three years
Ø Banks to hold public meets with NBFCs until 15 Oct in 400 districts: Sitharaman
Ø Coal mine allottees must do their bit to start output: Secy
Ø Factory investment at 3-year low of Rs 3.31 lakh cr in 2017-18: Survey
Ø Global steel industry facing surplus production, says Union minister Dharmendra Pradhan
Ø CBDT member hints at lower tax rates in direct tax code regime
Ø Essel Group seeks time till March 2020 from mutual funds to clear dues
Ø Rupee slips 10 paise to 71.34 against USD
Ø Maruti Suzuki crosses 10-lakh-exports milestone from Mundra Port
Ø Parliament nod on pesticide and seed bills likely next session: MoS Agri
Ø Carcinogen scare sets off global race to contain ranitidine
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👉🏻RBI issued Revised Guidelines for Concurrent Audit System of Banks
(The Reserve Bank of India ( RBI) has revised the norms for concurrent audit system of banks)
👇🏻 👇🏻 👇🏻
http://bit.ly/2kqi8Hx
👉🏻NFRA to cover Public Sector Banks' Auditors too
(has made it clear that it has oversight powers on the auditors of nationalised banks (public sector banks) as well)
👇🏻 👇🏻 👇🏻
http://bit.ly/2kI0mjo
👉🏻Govt notifies 8.65% interest rate for EPFO members
(Government has approved 8.65 per cent interest rate on deposits in Employees Provident Fund for 2018-19)
👇🏻 👇🏻 👇🏻
http://bit.ly/2mmsqZS
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👉Sebi sets up panel to suggest norms for social stock exchanges .
👉RBI revises norms for concurrent audit system of banks .
👉The government has set a direct tax collection target of Rs 13.35 lakh crore for the current fiscal, which includes Rs 7.66 lakh crore from corporate tax and Rs 5.69 lakh crore as income tax.
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🍓Finance Minister Proposals
👉🏽Corporate tax rate to be 22%
👉🏽No Minimum Alternate Tax (MAT) applicable on such companies
👉🏽Effective corporate tax rate after surcharge to be 25.17 percent
👉🏽To attract investment in manufacturing, local companies incorporated after 1st October 2019 will pay tax at 15 percent
👉🏽That effective tax for new companies shall be 17.01 percent, including cess and surcharge. Companies enjoying tax holidays would be able to avail concessional rates post the exemption period.
👉🏽Will give MAT relief for those opting to continue paying surcharge and cess. MAT has been reduced to 15 percent from 18.5 percent for companies who continue to avail exemptions and incentives.
👉🏽To stabilise flow of funds into the market the enhanced surcharge announced in Budget 2019 will not apply on capital gains arising on sale of any security, including derivatives by foreign portfolio investors (FPI)
👉🏽For listed companies which made announcement for public buyback before July 2019, it is provided that tax on buyback on shares of such companies will not be charged
👉🏽Total revenue foregone by undertaking these measures is Rs 1.45 lakh crore per year.
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🍓GST Council Meeting Outcome-
1. Hotel Tariffs Rs. 7,500 and above GST at 18%.
2. Hotel Tariffs Rs. 1,000 upto 7,500 GST at 12%.
3. Hotel Tariffs below Rs. 1,000 GST at Nil rate.
4. Outside Catering GST rate reduced at 5%.
5. Diamond Job-work GST rate reduced at 1.5% and Other Job-work GST rate reduced to 12% from 18%.
6. Council amended rules regarding Refund by Appellate Authority.
7. Council amended rules regarding GST Practitioners and Consumer Welfare Fund.
8. Cups/Plates made from Flowers leaves GST rate Nil from 5%.
9. GST Annual Returns GSTR-9, 9A Optional for those with turnover upto 2cr for FY 17-18 & 18-19.
10. Those with turnover above 2cr to still file GSTR9.
11. No relief in case of GSTR-9C as it’s applicable only where turnover exceeds 2cr.
12. GSTR-9 also to be made “Saral”.
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Total revenue forgone for Government is estimated around Rs 1.45 lakh crore per year because of tax cut. CSR 2% spending to include government, PSU incubators and public funded education entities, IITs.
RBI has revised Concurrent Audit Fees which should be commensurate with the scope and coverage of audit, skill sets required, number of staff required and the time to be devoted for the audit. https://rbi.org.in/Scripts/NotificationUser.aspx?Id=11691&Mode=0
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FAQ on Presentation of Dividend and Dividend Distribution Tax on 17th September 2019.
Post amendment in Ind AS 12 Vide MCA notification dated March 30, 2019, Para 57A has been introduced in Ind AS 12 and due to which there was an ambiguity regarding recording of DDT in P&L, OCI or Equity.
The recently published FAQ clarifies following presentation:
Presentation of Dividend:
If a financial instrument is classified as debt, the dividend or interest paid thereon is in the nature of interest which is recognized in profit or loss. Dividend or interest paid on a financial instrument which is classified as equity, should be recognized in the Statement of Changes in Equity.
Presentation of DDT:
DDT should be recognised in P&L if the dividend/interest itself is recognized in P&L. If the dividend is recognized in equity, the presentation of DDT should be consistent with the presentation of dividend, i.e., to be recognized in equity. The FAQ issued by ICAI has suggested that the DDT in India to be treated as Withholding tax, thus it will get covered by Para 65 A and hence, it should be presented in equity.
Thanks for reading