24 November 2019 News and Updates

Corporate Snippets on Nov 24

Ø SEBI tightens disclosure norms on loan defaults; shorten timeline for Rights issues

Ø MFs will join DHFL resolution process: Sebi chief

Ø Bank credit grows by 8.07%, deposits 9.92%: RBI data

Ø Housing projects worth $66 bn face IBC proceedings

Ø Govt mulls forex loan at cheaper rate to exporters: Goyal

Ø BSNL-MTNL merger may be completed in 2 yrs: Govt.

Ø Govt. clears Code on Industrial Relations Bill; retrenchment norms not eased

Ø Cabinet approves strategic sale of Govt. stake in BPCL, 4 other CPSEs

Ø Subhash Chandra to sell 16.5% stake in Zee, become minority shareholder

Ø Tariff hike may cause slower net user addition for telcos: BofA-ML report

Ø Piramal gets waiver on debt contract after offering to pay Rs. 15 bn early

Ø Telecom, aviation, auto sectors report highest losses in Q2

Ø Better rainfall led to lower power demand in October: Power Ministry

Ø CIL to develop 55 new coal mines in next 5 yrs: Minister

Ø Company continuously working on a resolution plan: Suzlon

Ø ECU Worldwide buys controlling stakes in Hong Kong and Singapore logistics firms

Ø Singapore’s Cube wins highways bid

Ø Cabinet approves two-year moratorium on spectrum payments for telcos

Ø Tata Motor's JLR to face challenging times even in next fiscal: Moody's

Ø Asia needs $800 billion over the next decade to feed itself

Ø Homebuyers have filed over 1,800 cases under insolvency law: Govt.

Ø NCLAT extends deadline for implementation of Patanjali's bid for Ruchi Soya

Ø Central American nation Costa Rica seeks Preferential Trade Agreement with India

Ø China cuts new benchmark rate to boost economy

Ø NCLAT rejects DBS Bank’s plea challenging distribution of funds from Ruchi Soya resolution plan

Ø India appeals against WTO panel ruling on export incentive schemes 

Ø Reserve Bank of India supersedes DHFL board

Ø Rupee settles 10 paise lower at 71.81 against US dollar

Ø Moody's assigns Baa1 rating to ONGC's proposed senior unsecured notes

Ø Telcos have to pay Rs 1.47 lakh cr dues; no proposal to waive off penalty: Prasad

Ø Govt. plans incentives for 324 foreign manufacturers

Ø India appeals against WTO's ruling on export incentives

Ø AIIB to invest upto $2.5 bn in urban transport projects

Ø DoT asks telcos to share broadband infra in Govt. bldgs

Ø Voda Idea, Airtel lose over 49 lakh users in Sep: TRAI

Ø PSBs reported frauds of over Rs. 95,700 cr in Apr-Sep

Ø Vodafone Idea presses for Rs. 7,000 cr tax refund

Ø MF industry folio influx hits 3-month high in Oct

Ø Phone makers seek clarity on export duty relief scheme

Ø Cabinet may consider proposal to lower Govt. stake in CPSEs to less than 51%

Ø Govt has no plans to revise fiscal deficit target, says MoS Finance Thakur

Ø Allahabad Bank's merger with Indian Bank gets in-principle Govt. nod

Ø RBI unions want Govt. to raise deposit insurance cover to Rs. 10 lakh

Ø RBI slaps Rs 2.50 crore fine on Bank of Baroda over non-compliance

Ø Patanjali's Apr-Sep revenue at Rs. 3,562 cr, highest for a half-year period

Ø India quit RCEP in national interest: Goyal

Ø India vulnerable to oil price, capital flows shocks: YV Reddy

Ø Jet Airways’ bidder Synergy gets extension till December 16

Ø Steel Ministry proposes setting up integrated steel hubs

Ø MRPL makes first export shipment of BS-VI-grade diesel

Ø Lupin launches generic hypokalemia drug in US

Ø Dilip Buildcon bags Rs. 2,123 cr order from Coal India arm

Ø Losses incurred by 71 central PSUs during FY18 rise to ₹31,261 cr

Ø ICICI Bank may raise ₹20,000 crore aiming to fill credit gap left by NBFCs

Ø 15 foreign banks keen to open branch in India

Ø Scrappage policy hits another roadblock after NITI Aayog flags issues

Ø Reserve Bank likely to refer DHFL, Altico to bankruptcy court

Ø Employment growth slowed down in last two years: Report

Ø Supreme Court stays SAT order that quashed SEBI ban on Price Waterhouse

Ø Govt. mulls setting up dedicated cell to promote agri startups

Ø Central Bank of India reports higher Rs. 6,430 cr loss for FY19 due to NPA divergence

Ø RIL achieves another feat, first firm to hit Rs 9.5 lakh cr m-cap mark

Ø Financial crunch due to Centre's failure to release GST dues

Ø Gold rises Rs. 328, silver prices jump Rs. 748

Ø Passenger vehicle retail sales jump 11 pc in Oct on festive demand: FADA

Ø Private banks stay in profit, PSBs return to losses

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Important GST Update: 

CBIC vide circular no 126/45/2019-GST dated 22.11.2019 clarified the doubt in regards the rate of tax on job work services to be charged by the job worker.

👉 CBIC on the outcome of GST council meeting reduced the rate of tax on job work services to 12% with affect from 01.10.2019, which resulted in a doubt as the rate on job work services also had a residuary tax rate under item (iv) of heading 9988 stating Manufacturing services on physical inputs owned by other no anywhere mentioned shall be charged at 18%. Hence charging 12% or 18% on such services was the point of conflict.

Simplification : CBIC clarified that job work as defined under the law is process of job work on inputs belonging to REGISTERED PERSONS.

Hence if the principal is unregistered and getting the job work done from any job worker then such services shall not be covered under the scope of job work service and reduced tax rate i.e 12% shall not be applicable.

Hence, If the job worker is providing the job work services to registered person, tax at 12% has to be charged else 18%

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👉🏻Income Tax dept launches web portal for exchange of information

(The tax department has launched a portal that will provide information, including about procedures, related to automatic exchange of information under common reporting standard.) 

👇🏻 👇🏻 👇🏻

http://bit.ly/37vQ5KA

👉🏻RBI mulling new rules on corporate governance; wants banks to disclose more

(RBI is looking at introducing new rules on corporate governance for banks in sync with global ones, and would also like lenders to disclose more)

👇🏻 👇🏻 👇🏻

http://bit.ly/2OG4vzd

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👉NCLAT order may pave the way for Reliance Industries (RIL) to delist Alok Industries and take it private.

👉NCLT can no longer co-opt the role of the CoC by mandating how proceeds should be distributed.

👉Former Bhushan Power and Steel Ltd chief Sanjay Singal arrested by ED in connection with its probe in a multi-crore money laundering case linked to an alleged bank loan fraud.

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1. Delhi HIgh Court directed IiTAT to Deal with cases in which there is stay of Tax recovery on higher priority: Case Name : PCIT Vs Nokia Solutions & Networks India Pvt. Ltd. (Delhi High Court)

2. Income Tax  Section 68 additions cannot be made merely on doubts, conjectures or surmises. Case Name : ITO Vs. Ambika Metalchem Impex P. Ltd. (ITAT Mumbai)

3. CBIC to act tough following lower-than-expected tax mop-upThe Goods & Services Tax (GST) Administration plans to act tough with non-filers of returns and cancel their registration. It has also decided to update the progress made in this regard on a daily basis. 

4. GST CLARIFICATION ON JOB WORK : 12% GST is levied only job work services which are provided by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, 18% GST is levied only on such services which are carried out on physical inputs (goods) which are owned by persons other than those registered

5. Smaller businesses with annual turnover of less than Rs 5 crore are hit by the recent change in GST rule, which restricts the amount of input tax credit (ITC) a business can claim. The rule that was amended last month mandates that ITC claims can only be fully availed if all the relevant invoices are uploaded by the suppliers in its GSTR-1 (the returns where all the outwards sales are detailed). 

6. ROC Annual Return Filing extended due Date -e-forms AOC-4, AOC (CFS) AOC-4 XBRL upto 30.11.2019 and -e-form MGT-7 upto 31.12.2019, by companies without levy of additional fee.

7. Sebi approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.

8. Sebi also extended the Business Responsibility Report (BRR) requirement to top 1,000 companies, from 500 currently.

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Rectified TRAN-1 Form can be Filed for Distribution of Accumulated Credit of Pre-GST Regime: Kerala HC [Read Judgment]

Read more at: https://www.taxscan.in/rectified-tran-1-form-filed-distribution-accumulated-credit-pre-gst-regime-kerala-hc/39945/

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👉NCLT orders insolvency process for low-cost carrier Air Costa.

👉NCLAT gives 30 days more to Sterling Biotech promoters to settle dues.

👉1,821 cases filed by homebuyers pending with NCLT. 

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Finance Commission chairman NK Singh stressed that the government must complete unfinished tax reforms to improve the woefully inadequate tax buoyancy witnessed in the past one-and-a-half years, while advocating that simple direct tax code should be implemented soon and that the GST Council ought to go to the drawing board to address compliance issues.

No Arrest of Chartered Accountant or Advocates who had filed Returns but are not beneficiary or part of fraud without any Corroborative Evidence: Punjab & Haryana High Court. Read more at: https://www.taxscan.in/no-arrest-chartered-accountant-advocates-filed-returns-beneficiary-fraud-corroborative-evidence-punjab-haryana-hc/39845/

Delhi High Court  issues notice in challenge to National Financial Reporting Authority's power to investigate, punish Chartered Accountants. https://bar.app.link/fktWkxUCJ1

DHFL may become the first NBFC to go under NCLT insolvency proceedings. Follow the link to know more http://www.cnbctv18.com/finance/dhfl-may-become-the-first-nbfc-to-go-under-nclt-insolvency-proceedings-4724361.htm

Hon’ble  Madurai Bench of MADRAS High court got convinced and directed the revenue to issue GST refund within 6 weeks. Court pronounced if processing of refund is not possible through system then process the same manually.

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👉🏻CBDT notifies New Form no. 16D & 26 QD for TDS Payment & Retun

(Amendment of Income-tax Rules, 1962 for notifying Challan-cum statement for the purposes of section 194M of the Income-tax Act, 1961)

👇🏻 👇🏻 👇🏻

http://bit.ly/2rTCiNs

👉🏻HC issues notice to Centre over input tax credit denial to restaurants

(Gujarat High Court has issued a notice to the Centre seeking to know why the option of input tax credit under GST regime is not available for restaurants)

👇🏻 👇🏻 👇🏻

http://bit.ly/2pv9HNE

👉🏻CBDT seeks to widen net for appointment of members, makes younger officers eligible for post

(CBDT is seeking to widen the net for the appointment of members to its board by inviting applications from relatively younger officers.) 

👇🏻 👇🏻 👇🏻

http://bit.ly/35sUoEP.

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👉🏻Cabinet approves Taxation Laws (Amendment) Bill, 2019

(Union Cabinet has approved the proposal for introducing the Taxation Laws (Amendment) Bill, 2019 in order to replace the Ordinance.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2O4cvLg

👉🏻Marco Mendicino appointed new Canadian immigration minister

(Prime Minister Justin Trudeau has named Marco Mendicino as Canada’s next Minister of Immigration. Refugees and Citizenship (IRCC)

👇🏻 👇🏻 👇🏻

http://bit.ly/2QBcVKD 

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GST: Economists must share some blame for the current slowdown:

READ MORE- https://www.gststation.in/gst-economists-must-share-some-blame-for-the-current-slowdown/

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👉NCLAT denies RIL waiver to delist Alok Industries.

👉The Forum for People's Collective Efforts (FPCE) has urged the prime minister not to bar the homebuyers from approaching NCLT.

👉NCLAT rejects Singapore-based DBS Bank’s claim for bigger share of Ruchi Soya resolution proceeds.

👉RBI takes over DHFL board, appoints an administrator in its place, in a step towards referring the debt-laden mortgage lender to a bankruptcy court. DHFL is set to become the first non-bank lender to be referred to the NCLT.

👉Delhi HC issues notice in challenge to IBBI Order imposing penalty on Bhushan Steel RP for violation of IBC.

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GST –

Petitioner submitted that by virtue of the notification dated 14th November, 2017 rate  of tax for the restaurant sector has been fixed at 2.5 % without any input tax credit and option to pay 18% GST with full ITC has been removed for the restaurant sector - Petitioner case that in case of other services, there is an option to pay a higher rate of tax and avail of input tax credit, whereas in case of the restaurant sector, such option has not been granted which amounts to total denial of input tax credit – challenge to subject Notification on the ground that the provision whereby the right of the petitioner is restricted is introduced by virtue of a notification and is not prescribed by the rules. Moreover, under sub-section (1) of section 16 of the CGST Act, a condition or a restriction can be imposed; however, it is not permissible to deny/extinguish the right to avail of credit thereunder –

HELD - issue notice, returnable on 11th December 2019. In the meanwhile, the respondent shall consider and report to this court as to what amount can be taken to secure to the petitioners the option to discharge GST either at the rate of 18% with full input tax credit or at the rate of 5% without input tax credit.       

                       

ST - It cannot be said that salary of guards, PF, ESI are reimbursable expenditures to be deducted from gross value of security service: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM3

CX - Commissioner (A) is required to deliberate upon point which has been raised in the appeal by appellant and record his findings, which has not been done: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMz

ST - Tribunal, being only an interpreter of notification, cannot rewrite notification by introducing any extraneous words into same - Amending notification 4/2015-ST is prospective: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM2

CX - Benefits of a claim under EXIM Policy as implemented through a specific notification under the taxing statute and notification, however akin it may be, is not a permissible substitution: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMx

ST - Sale deed was executed after occupation certificate was obtained, no service tax: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM1

CX - Correctness of statements can only be tested if same is processed through cross-examination by appellant who are affected by it - non-affording of opportunity of cross-examination is violation of principles of natural justice: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMy

ST - Legal Consultancy Service - Notification 25/2012-ST does not use word 'business turnover' instead has used word 'business entity with a turnover', hence, it is clear that entire proceeds of business entity has to be considered: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM0

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Judge is duty bound to pass the order correctly by applying the correct law

If a Judge of a subordinate court fails to conduct himself in a manner expected of the Judicial Officer, it is not only bound to lower the dignity and majesty of the Court but it may even tend to shake the faith and trust of the litigant who is the most important stake holder in the justice dispensation system.

Read full article at : https://dasgovernance.com/2019/11/22/judge-is-duty-bound-to-pass-the-order-correctly-by-applying-the-correct-law/

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# ICAI Membership Fees: The extended due date for payment of ICAI Membership fee including COP fee is upto 30th November, 2019. 

# Use this link to pay membership fees if any issues in SSP (Annual Membership Fees (2019-2020)

https://www.icai.org/new_post.html?post_id=15946

# ICAI: GST Conclave at Hotel Le-Meridien, Delhi on 23 Nov 2019 10am-5pm.Register at https://bit.ly/2KxlVwN. NIRC annual group members-No fee.

# GST Latest: Watch full video on New ITC Rule of 20%, Relaxation & Changes in GSTR 9 and 9C

https://youtu.be/-HiSL64s4Vo

# Cabinet approves Taxation Laws (Amendment) Bill, 2019 - The Union Cabinet has approved the proposal for introducing the Taxation Laws (Amendment) Bill, 2019 in order to replace the Ordinance.

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👉🏻PSU Banks report fraud of more than Rs. 95700 Cr in 6 months

(PSBs reported 5,743 incidents of fraud involving a total amount of Rs 95,760.49 crore from April 1 to September 30 (based on the date of reporting)

👇🏻 👇🏻 👇🏻

http://bit.ly/2XD3USI

👉🏻RBI finally discloses list of large Wilful defaulters

(In response to a Right to Information (RTI) application filed by The Wire in May 2019, the RBI has released a list of 30 major wilful defaulters)

👇🏻 👇🏻 👇🏻

http://bit.ly/2D2Di4e

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👉RBI dissolves the board of defaulting finance company Dewan Housing Finance Ltd (DHFL), with an intention to initiate insolvency proceedings against it. 

👉The Confederation of Real Estate Developers Association of India (CREDAI)-NCR demands amendment in NCLT Act to not allow a single homebuyer initiate the insolvency proceedings and RERA have sole jurisdiction over customer disputes.

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