30th October 2K19
Economic Times
Ø India has 3rd largest startup ecosystem: PM Modi
Ø 'No perceivable inconsistency in Infosys data points'
Ø Wipro sets up engineering & innovation centre in Virginia
Ø Dividend distribution tax may be scrapped
Ø Govt to take stock of ailing telecom sector
Ø RBI imposes Rs 1 crore penalty on Bandhan Bank
Ø Kamineni clarifies on Apollo demerger reports
Ø Prima facie case for probe against Oyo, Go-MMT: CCI
Business Standard
Ø Tata Sons stake in Tata Motors to rise to 43.73% post preferential issue
Ø India to invest $100 bn in refining, pipeline, gas terminals by 2024: PM
Ø BP profit declines by 40% in September quarter on oil price slide
Ø Banks baulk at Rs 4,000-cr loan to Patanjali for Ruchi Soya acquisition
Ø Petronet LNG Sep-quarter net grows 90% on lower tax to Rs 1,089 crore
Ø Total offers 'attractive' Rs 149.63 per share to Adani Gas shareholders
Business Line
Ø Govt likely to order SFIO probe into DHFL financial irregularities
Ø Hind Zinc net profit up 15 per cent on lower tax outgo
Ø IndiGo places USD 33-billion order for 300 A-320s
Ø Japan’s DMG Mori, LMW tie up to increase machinery production
Ø Steelmakers face debt challenges after ill-timed bets
Mint
Ø Central Bank of India board okays ₹3,353 cr fundraising
Ø Slowdown bites Indian steelmakers as they face debt challenges
Ø India, Saudi Arabia moving towards closer strategic partnership: PM Modi
Ø IOB puts Kolkata-based Jai Balaji Industries' NPA account up for sale
Ø Govt working on policy to allow OTC drugs sale on retail outlets
Financial Express
Ø Input Tax Credit: New GST refund rules create confusion as deadline to file first returns comes close
Ø Inter-ministerial group discusses possibility of further easing FDI policy
Ø Insolvency Code progress report: Nearly 4 times as many cases in liquidation as in resolution
Ø Govt forms high-level panel to look at bailout package for Airtel, Vodafone Idea, other telcos
Ø Bidvest stake buy: GVK to deposit Rs 1,248 crore in escrow account
Deccan Chronicle
Ø Investor wealth rises Rs 2.73 lakh cr in market rally
Ø Aramco to make stock market debut on December 11: report
Ø Sensex rallies over 600 points; Nifty tests 11,800
Ø Poor credit demand may hit deposit growth in H2
Ø Ambani says slowdown in India temporary, reforms undertaken to reverse trend
Ø Amazon pumps in over Rs 4,400 cr in India business
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Failure to deposit tax deducted in Government account – Assessee cannot escape from Prosecution
Read more
https://thetaxtalk.com/2019/10/29/failure-to-deposit-tax-deducted-in-government-account-assessee-cannot-escape-from-prosecution/
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Interesting Judgment : Reassessment not valid if done without disposal of assessee’s objections to reasons for reopening
Read more
https://thetaxtalk.com/2019/10/29/interesting-judgment-reassessment-not-valid-if-done-without-disposal-of-assessees-objections-to-reasons-for-reopening/
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CORPORATE NEWS
🍇Getting back lost shares, dividends now made easier
One of the oldest vexing issues in equity investing, that of lost money and shares, is well on its way to getting solved with the establishment of a digital process for recovering old dividends and shares by the ‘Investor Education and Protection Fund Authority’ (IEPFA).
Historically, the Indian law on reclaiming dividends and other payouts, as well as the underlying shares themselves has been completely unfair. Under the old Companies Act, money that was unclaimed for a number of years had to be transferred by the company to the government. If no claimant ever showed up, then the money basically belonged to the government. In theory, the law said that anyone could turn up and lay claim to the money.
🍇Now, officers to exclusively handle GST, Customs complaints
In line with Prime Minister Narendra Modi's assurance that honest taxpayers would not be harassed and wealth creators would be respected, the indirect tax body - Central Board of Indirect Taxes and Customs (CBIC) has directed to appoint a nodal officer in each CGST and Customs Commissionerate to sort out taxpayer grievances.
Industry and tax experts have hailed the decision saying that the move would ensure an escalation point for taxpayers in case their grievances are not addressed at designated level.
🍇Govt to allow SEZ services' units to accept payments in rupee from DTA players
The commerce ministry is working on a proposal to allow domestic companies to make payments in the rupee currency for services obtained from special economic zone units, sources said.
The proposal is aimed at promoting the growth of IT units in special economic zones (SEZs).
At present, domestic firms are required to pay in foreign exchange for services rendered by a SEZ unit. However, this norm is not applicable for sale of goods, for which payments could be made in the rupee terms.
🍇Govt gives window for inactive firms to update KYC details
The Ministry of Corporate Affairs (MCA) has given a window for non-compliant companies to update their KYC details, including that of directors, so that they can file financial and other information under the Companies Act without attracting penal action by various authorities including the taxman.
The move is aimed at breaking a deadlock as companies which haven’t furnished prescribed information of their directors and other KYC details have virtually been barred from updating their registration and accounting details with the Registrar of Companies.
IBC, DEBT RECOVERY & RESTRUCTURING RELATED NEWS
🍇IBC resolutions exceed new time limit of 330 days prescribed by govt
The average time taken for completion of 156 CIRPs that have yielded resolution plans has overshot the government's revised deadline of 330 days for completion of the process.
According to the Insolvency and Bankruptcy Board of India (IBBI) data, till September 2019, 156 CIRPs have yielded resolutions and the average time taken for resolution, including the time excluded by the adjudicating authority (AA) is 374 days; if the time excluded by the AA is considered then the average time taken would stand at 347 days. Either way, the time taken for resolution is more than the government's revised deadline of 330 days.
🍇NCLAT sets aside insolvency proceeding against Ambience, asks NCLT to decide afresh
The National Company Law Appellate Tribunal has set aside an NCLT order to initiate insolvency proceedings against real estate development company Ambience Ltd over the plea of Vistra ITCL India (formerly known as IL&FS Trust Company).
A three-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya has remitted the matter back to the National Company Law Tribunal (NCLT), directing it to decide afresh as the order was passed by a single member only.
🍇Homebuyers in HDIL’s Nahur Project file plea in NCLAT
Homebuyers of disgraced realty developer Housing Development & Infrastructure (HDIL) have moved the National Company Law Appellate Tribunal (NCLAT) with an intervening application in an ongoing case between the developer and its key lender, Bank of India.
These homebuyers, affected by the delay at the developer’s residential project Majestic Towers in Nahur suburb of Mumbai, recently approached the Mumbai Police’s Economic Offences Wing, alleging fraud and siphoning off funds worth more than Rs 200 crore by the promoters and directors of the company. The EOW has already recorded statements of the homebuyers.
🍇NCLAT sets aside plea to initiate insolvency proceedings against Intex Technologies
The NCLAT has dismissed a plea to initiate insolvency proceedings against smartphone and mobile accessories maker Intex Technologies India Ltd by one of its creditors. A three-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya upheld the order of the NCLT Delhi, which had dismissed the plea of the operational creditor after observing a pre-existence of dispute over the claims.
🍇ED swoop on BPSL has lenders wary of IBC route for debt resolution
The attachment of Bhushan Power & Steel’s (BPSL’s) assets by the Enforcement Directorate (ED) has made lenders wary of taking the Insolvency and Bankruptcy Code (IBC) route for debt resolution.
“As bankers, we are all concerned about the implication of the Prevention of Money Laundering Act (PMLA) on IBC. It would be very difficult to arrive at a resolution under the IBC and this will derail the entire process. For smaller cases, we are not keen on taking companies through the IBC route and waiting indefinitely for resolution,” says Ashok Kumar Pradhan, managing director at United Bank of India (UBI).
🍇ED Operational Creditor under IBC for assets acquired through proceeds of crime, NCLAT expresses prima facie view
The NCLAT expressed its prima facie view that if the assets seized by the Enforcement Directorate are finally held to be purchased out of the ‘proceeds of crime’, the amount which is generated from such assets would come within the meaning of ‘Operational Debt’ under the Insolvency and Bankruptcy Code, 2016.
This Operational Debt would be payable to the Enforcement Directorate for which it may file a claim under Insolvency and Bankruptcy Code, 2016, it stated.
CORPORATE & OTHER GOVERNANCE RELATED NEWS
🍇SBI Life fined Rs 4 lakh by IRDAI for violating norms on protection of policyholders
Insurance sector regulator IRDAI has imposed a fine of Rs 4 lakh on SBI Life Insurance Company Ltd for violating norms on advertisement and protection of policyholders' interest.
The Insurance Regulatory and Development Authority of India (Irdai) said it had examined samples of proposal forms signed on November 30, 2016; December 23, 2016; February 17, 2017; and March 23, 2017.
It was found that provisions prior to the Insurance Laws (Amendment) Act, 2015, were incorporated instead of new provisions.
🍇MCA seeks details from Infosys on whistleblower complaint
The Ministry of Corporate Affairs (MCA) has sought information on the whistleblower complaint, made against Infosys management about irregularities, to the US Securities and Exchange Commission (SEC) and is keeping a close watch.
“This is a usual practice... Details are sought from a company in such situations,” an official said.
The SEC has initiated a probe against the company following the complaint that has alleged “unethical practices” by the top management of Infosys, listed in India and the US. Infosys told ET it doesn’t have anything to add to the statement issued last week.
MSME & STARTUPS RELATED NEWS
🍇Auto MSMEs showing early signs of delinquency
The broad-based slowdown in the auto sector is leading to credit quality of medium and small enterprises of the sector. While the credit quality of micro, small and medium enterprises (MSMEs) in the auto sector continues to fare better than some others, slowing demand and building stress is leading to a higher rate of delinquencies in the sector.
While the auto sector may still have a lower rate of NPAs, the MSME Pulse report for Oc-tober by TransUnion Cibil says that the NPA ratio may be a lag indicator to understand sectoral risk. In order to understand auto MSMEs, the report has attempted to look into the transition matrix of these MSMEs based on CIBIL MSME Rank (CMR).
🍇Electronics industry faces slower revenue growth: CRISIL SME tracker
The electronics industry is expected to see revenue growth decline to 15 per cent during the current fiscal year, from 19 per cent in fiscal year 2019, mainly due to slower growth in mobile phone manufacturing and consumer electronics, which together account for 54 per cent of its revenue.
Small and medium enterprises (SMEs), which account for nearly a third of the industry’s revenue, with a varying share in different segments, are expected to be hit hard.
OTHER NEWS
🍇Service Of Notice On The Chartered Accountant Of A Company Who Acts As Its Agent Is Due Service : SC
Holding that service of notice on the Chartered Accountant of a company who is
acting as its agent is valid service of notice, the Supreme Court refused to recall a judgment which was passed ex-parte.
The order was passed by a bench comprising Justices U U Lalit and Indu Malhotra in the case Principal Commissioner of Income Tax (Central) - I vs NRA Iron and Steel Pvt Ltd.
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1. Income Tax Reassessment not valid if assessee’s objections to reasons for reopening not disposed : Nimitaya Hotel & Resorts Ltd. Vs ACIT (ITAT Delhi)
2. Supreme Court issued a court notice to the assessee-company but no one appeared on behalf of the company. Thereafter, a dasti notice of court proceedings was served to CA, AR but he failed to communicate the same to the company. Therefore, the Supreme Court passed an ex-parte order.
3. The move to restrict input tax credit for non-filing of GSTR-1 is too harsh and could be legally challenged The 37th GST Council meeting held on September 20, 2019, was widely lauded for numerous business-friendly measures, which have significantly boosted trade confidence.
4. ICAI has constituted a High Level Independent Committee on 26th September 2019 to look into the Examination processes and the CA Regulations relating to CA Examinations including Regulation 39(4) of The Chartered Accountants Regulations, 1988 and suggest changes wherever required.
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👉At least 2 out of the 5 petroleum products, including Aviation Turbine Fuel (ATF) and natural gas, are likely to be among the first set of petro products to be included in the GST fold.
👉Financial creditors have realised more than 34% of their outstanding claims from companies whose resolution proposals were cleared in the July-September period, compared with 14% in the previous quarter, according to data from the Insolvency and Bankruptcy Board of India.
👉Over 400 real estate cases being heard at NCLT according to Confederation of Real Estate Developers’ Associations of India (CREDAI).
👉Markets regulator SEBI restrained six entities from accessing securities market for 2 years for carrying out fraudulent trading in the scrip of Vertex Spinning Ltd and DMC International Ltd.
👉Bitcoin gains 44% in 16 months since RBI banned cryptocurrency.
👉RBI imposes a monetary penalty of Rs 1 crore on Bandhan Bank for non-compliance with the guidelines on promoter holding.
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Gas and ATF likely to be brought under GST soon, says govt source:
READ MORE- https://www.gststation.in/gas-and-atf-likely-to-be-brought-under-gst-soon-says-govt-source/
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MCA Update
Forms NDH-1, NDH-2 and NDH-3 notified vide the Nidhi Rules 2014 shall be available for filing as eForms w.e.f 1st November 2019.
Please note that these forms were earlier filed as attachments to forms GNL-2 and RD-1.
However, with the introduction of the eForms, these forms shall now be filed independently.
Stakeholders may please take note and plan accordingly.
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