CA Rohit Jaiswal: January 2020

Friday, 31 January 2020

31 January 2020 News and Updates

31st January 2K20

Ø SBI Q3 profit set to double on Essar Steel resolution

Ø US economy misses Trump's 3% growth target in 2019

Ø India on target list for post-Brexit UK trade campaign

Ø China demand for Land Rover boosts Tata Motors

Ø PSU banks employees to go on 2-day strike from Friday

Ø Trai extends deadlines on net neutrality rules paper

Ø Power Finance Corporation, REC merger hits a wall

Ø Govt plans to sell 15% stake in HAL via offer for sale, bid by Feb 21

Ø Coal India production not to exceed 640 million in FY20: Official

Ø SAT directs Irdai to recalculate unlawful gains in SBI Life Insurance case

Ø India's food ministry seeks over $28 billion for food subsidies: Report

Ø Bank of England holds interest rate at 0.75% after slowdown fears allay

Ø Tata Motors Q3 net profit at Rs 1,756 cr

Ø FinMin summons Infosys on GST tech glitches

Ø Textile exporters bleed as Govt asks them to repay sops availed

Ø Domestic airline industry may post net loss of ₹ 7,800 crore: ICRA

Ø Bajaj Auto posts 8.32% rise in net profit

Ø Dabur India consolidated profit rises 8.7% in Q3

Ø India on target list for post-Brexit UK trade campaign

Ø Global firms queue up to board private trains

Ø Colgate-Palmolive (India) Q3 net profit up 3.6%, volume growth slips to 2.3%

Ø Marico reports 11% rise in Q3 profit at Rs272 crore

Ø Prime Venture Partners to back up to six firms in fintech, SaaS, healthcare

Ø SC allows transportation of iron ore mined till March 2018

Ø HAL disinvestment: Govt plans to sell 15 per cent stake in defence firm via offer for sale

Ø Sri Lanka in third rate cut after Easter bombings

Ø UK economy seeks to balance Brexit with global strains

Ø Torrent Power facing land, tariff issues in executing 600 MW Gujarat wind projects

Ø Axis Bank to raise up to Rs 4,175 crore via NCDs

Ø India's gold demand falls 9 pc on record prices in 2019: WGC

Ø Asian currencies fall as worries mount over coronavirus epidemic

Ø Facebook warns revenue growth slowing, costs remain high

Ø Britain to finally exit the European Union on Friday

Ø Govt. notifies rules for winding up of cos under Cos Act

Ø Ind-Ra keeps YES Bank on rating watch negative

Ø IRDAI slaps Rs 1 cr penalty on ICICI Lombard, Tata AIG

Ø NCLT extends Videocon's insolvency resolution process

Ø Cognizant-led consortium wins deal from Network Rail

Ø Ind-Ra expects states fiscal deficit to touch 3% of GDP in FY21

Ø DHFL diverted Rs 12,700 cr into 79 shadowy firms linked to promoters: ED

Ø Banks looking to restructure major chunk of Rs. 2-trn MSME loans by March

Ø Vedanta to raise up to Rs. 2,500 crore through non-convertible debentures

Ø Coffee Day posts Q2 net loss of Rs 190 crore, revenue dips to Rs 843 crore

Ø Saudi Telecom looking to expand, in talks to buy 55% stake in Voda Egypt

Ø Pharma exports post highest-ever growth in third-quarter at 14.6%

Ø Birla Corp’s Q3 profit jumps over 200%

Ø India Venture Capital market ended on a high note in 2019

Ø Sundram Fasteners posts drop in Q3 net, revenue; opens ₹110-cr unit in Sri City

Ø NTPC to be consultant for 300-MW solar power projects in West Africa

Ø Jubilant FoodWorks Q3 net up 7.5% at Rs. 103.7 crore

Ø IndiGrid acquires another Sterlite transmission line for ₹1,020 crore

Ø Bajaj Finance posts 52% rise in Q3 profit, sets aside ₹85 crore for Karvy loan

Ø RBI fines HDFC Bank ₹1 crore for non-compliance of KYC norms

Ø Tata Power PAT rises as it dials down Mundra losses

Ø FICCI survey projects FY20 GDP growth at 5%, to improve to 5.5% in FY21

Ø States fiscal deficit seen jumping to 3% in FY21

Ø DHFL’s administrator orders three transaction audit reports

Ø IDBI Bank to raise Rs 1,500 crore via bonds

Ø Cargo traffic at non-major ports grew 4.8 pc to 447.21 MT in Apr-Dec

Ø Reliance seeks to counter India plastics pushback with new road project

Ø Apple logs double-digit growth in iPhone sales in India in Dec qtr

Ø Tata Sons may bank on TCS to clear telecom arms' AGR dues

Ø Tata takes charge to build EV ecosystem

Ø Govt directs banks to address pending disciplinary cases

Ø IRDAI issues norms to help merging PSBs' customers

Ø Pharma industry likely to grow at 10-13 pc in FY'21

Ø Bharti’s $3 billion fundraising settles viability concerns

Ø MCA notifies winding-up rules: Shutting business now easier for small firms

Ø Tata Steel, JSW, Adani likely to bid for Neelachal Ispat's Odisha plant

Ø Alembic Pharma gets final nod from USFDA for infection treatment drug

Ø Five banks willing to invest Rs 2.5 trillion in highway projects: Gadkari

Ø Infosys completes divestment of its stake in Unsilo A/S for over $800,000

Ø Cochin Shipyard mulls cautious expansion, to grow ship repair business

Ø Maruti Q3 profit rises 4% to ₹1,587 crore amid cost cuts, lower expenses

Ø US-based DEP unveils EV scooter prototype for Indian market

Ø Coal India posts double-digit growth in output in January

Ø Abhijit Banerjee bats for wealth tax to combat inequality

Ø Tube Investmentsposts ₹78 cr PATin third Quarter

Ø Airtel Africa’s Q3 profit after tax falls 21% to $103 million

Ø FinMin eases pressure on PSB heads in fraud probes

Ø Indian online food delivery market to hit $8 bn by 2022: Report

Ø Prestige Group to raise $300-400 million before REIT listing

Ø Allcargo increases stake in Gati to 20.8%

Ø India for elimination of trade-distorting subsidies on agriculture in WTO

Ø India begins dumping probe into chemical imported from China

Ø India’s crude steel output rises 1.8 per cent to 111.2 MT in 2019, says report

Ø Commerce ministry puts Bharti Airtel in denied entry list

Ø HDFC plans to invest Rs 100 cr per year in tech startups: Parekh

Ø India renews push to sell Air India, puts entire stake on the block

Ø India's crude steel output rises 1.8 pc to 111.2 MT in 2019: report

Ø IndiGo cuts capacity growth forecast for second straight quarter

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Income tax department issues list of all official emails and SMS ids and inform taxpayers to not trust messages from any other source

Here is a full list of all official emails, SMS ids and websites used by the income tax department

The list of all email ids, SMS sender ids and even websites used by the taxman to communicate with taxpayers. To avoid any phishing attempts, the income tax department has asked all taxpayers to not open any messages from any sender other than the ones mentioned in the list.

"Always check, before you click. Trust only these sources," reads an email sent out to taxpayers and also warns them to never disclose their personal or financial details. Several taxpayers have reported phishing messages to the income tax department. Such fraudulent attempts made through SMSes and emails are often done to extract sensitive information from taxpayers by posing as officials from the income tax department.

List of official emails used by the income tax team:

@incometax.gov.in

@incometaxindiaefiling.gov.in

@tdscpc.gov.in

@cpc.gov.in

@insight.gov.in

@nsdl.co.in

@utiitsl.com

The last two email ids belong to NSDL and UTIITSL, the only two agencies authorised by the I-T department to issue PAN cards.

List of SMS source code or sender IDs used by the income tax dept:

ITDEPT

ITDEFL

TDSCPC

CMCPCI

INSIGT

SBICMP

NSDLTN

NSDLDP

UTIPAN

The last three ids are meant for PAN card related communication while the rest are used the I-T officials to send out various messages, reminders, etc to taxpayers.

Apart from this, the income tax department has two official websites -- www.incometaxindia.gov.in and www.incometaxindiaefiling.gov.in. The first one is a departmental website while the other one is meant for e-filing of income tax returns (ITR).

The I-T department also runs www.tdscpc.gov.in which gives out all information related to TDS (tax deduction at source). Other sites include www.insight.gov.in (compliance and reporting portal), www.nsdl.co.in and www.utiitsl.com (both for PAN cards).

"If you receive an e-mail for find a website you think is pretending to be of income tax department, forward the e-mail or SMS or website URL to webmanager@incometax.gov.in or incident@cert-in.org.in," the income tax department says.

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# New Functionality in your Income Tax Profile available > Under Compliance > namely "Prescribed Payment Modes"

In order to comply with Section 269SU, Taxpayers with Turnover above INR 50 Crores have to report as to how/What prescribed mode of Electronic Acceptance of Payment they have made available. Failure to comply with Section 269SU shall lead to a Penalty of INR 5,000/= Per Day.

# ICAI: On-line facility for seeking change of Centre/Group/Medium for appearing in CA examinations - Correction Window. - https://resource.cdn.icai.org/58072exam47355.pdf

# SEBI revises Margin Framework for Commodity Derivatives Segment - Circular No.SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 dated 27/01/2020.

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👉 NCLT clears SNJ's takeover of Empee Distilleries - Homegrown liquor maker SNJ Group's bid to acquire the beleagaguered Empee Distilleries for Rs 475 crore, has been approved by the National Company Law Tribunal (NCLT), Chennai bench. Empee Distilleries, promoted by MP Purushothaman, has intere sts across liquor, hospitality, power and sugar. It ran into rough weather on the back of expansion into hospitality and glut in sugar business. Union Bank of India dragged the com pany to NCLT under Corporate Insolvency Resolution Process (CIRP) to hammer out a reconstruction package.

👉 Two Indiabulls Group entities have moved the NCLT against IDBI Trusteeship Ltd. to recover dues against loans assigned to them by Dewan Housing Finance Ltd. DHFL, a non-banking finance company, had entered into an arrangement for assignment of loans with Indiabulls Commercial Credit Ltd. and Indiabulls Housing Finance Ltd. for a consideration. As per the arrangement, the Indiabulls entities beca me assignee of the loans and DHFL ceased to hold any rights in such loans after the assignment. The non-b ank lender continued to act as a collecting agent for the two Indiabulls entities. It deposited the collections with IDBI Trusteeship. As per the arrangement, IDBI Trusteeship was entitled to 20 percent of the collections deposited with it against certain loans.

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Net direct tax collections so far this financial year were Rs 7.3 lakh crore against Rs 7.7 lakh crore in the corresponding period in FY19, finance ministry officials said. This implies a shortfall of about Rs 40,000 crore or over 5%.

Penalty for Non – Filling of GSTR-9C within due date the taxpayer has to pay Rs. 25000/- as no specific clause for it. thus general penalty RS 50000/- 9C and Gstr-9( 100+100=200) per day max. Upto 0.25% of total turnover of that year including amendment made by dealer(Gstr-9 penalty)

Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed.

Gujrat High Court in the case of Mohit Mineral Pvt. Ltd. v. UOI has declared levy of IGST on ocean freight & corresponding notifications as ultra-vires the IGST Act, 2017 for lacking legislative competence and also declared these notifications as unconstitutional. It is concluded that no IGST is leviable on the ocean freight for the services provided by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.

MCA is expected to take a major step to revamp the auditor’s report that accompanies company balance-sheets, placing more onus on statutory auditors to fulfill their professional responsibilities. The move is expected in February. Besides overhauling the Companies Auditors Report Order (CARO), the government is also likely to make changes to the secretarial audit reporting that is mandated under the company law.

National Company Law Tribunal, Cuttack has granted post-facto approval in terms of Section 33(5) of Insolvency & Bankruptcy Code, 2016 to a Liquidator for initiation of a legal proceeding on behalf of the corporate debtor.

SEBI has specified the uniform structure for imposing fines as a first resort for non-compliance with LODR regulations and the standard operating procedure for suspension and revocation of trading of specified securities.

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Supreme Court stays the operation of IBC ordinance which restricted the right of home buyers to approach NCLT . The ordinance mandated at least 100 home buyers or 10% for a project to file jointly before NCLT.

The said ordinance being arbitrary was challenged by PSP Legal through Piyush Singh Adv and Aditya Parolia Adv by way of a writ petition no. 47/2020.

The said writ petition was listed today and Supreme Court has intervened and stayed the ordinance. The impact will be all cases can now continue before NCLT which were filed by single home buyer.

This is a huge victory for home buyers as there were over 1000 cases pending before NCLT of single home buyers and in case this ordinance would not have been stayed then all cases would have been deemed dismissed on 28 January 2020.

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# New optional field to enter UDIN details for Tax Audits and CA attestations on E filing website

# Companies (Winding Up) Rules 2020 Notification Dated 24th January 2020

http://www.mca.gov.in/Ministry/pdf/Rules_28012020.pdf

# Due Date this week

# 31.01.2020 is LAST DATE to pay ICAI membership & COP Fees for FY 2019-20 for all CAs.

# 31.01.2020 is the due date to file TDS Return (24Q, 26Q, 27Q) for QIII of F.Y. 2019-20.

# 01.02.2020 is the due date to IMPLEMENT mandatory payment facility through “RUPAY, BHIM-UPI” for businesses with turnover *more than INR 50 crores.

#GST 31.01.2020 is the due date to file GSTR-9/9C for F.Y. 2017-18.

# 31.01.2020 is the due date to file GSTR-1(turnover upto INR 1.50 crores) for Q3 (2019-20).

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👉 Empanelment of Members to act as Observers at the Examination Centres for The Chartered Accountants Examinations May, 2020 - (30-01-2020) https://resource.cdn.icai.org/58105exam47430.pdf

👉 ANNOUNCEMENT FOR ICAI-CAMPUS (February- March, 2020) ASPIRANTS.

https://cmib.icai.org/postedcontent/adminuploads//ANNOUNCEMENT%20FOR%20ICAI%20Campus%20Aspirants.pdf

👉 Brochure Campus Placement Programme Feb- March,2020

https://cmib.icai.org/postedcontent/adminuploads//ICAI%20Campas%20Programme%2019-12-2019.pdf

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CBIC (@cbic_india) Tweeted:Taxpayers may kindly note that the last date of filing Annual Return in FORM GSTR-9 and GSTR-9C for 2017-18 is 31.01.2020. https://twitter.com/cbic_india/status/1222120912910049280?s=20

CBIC (@cbic_india) Tweeted:

Over 80000 GSTR-9 and over 38000 GSTR-9C filed on 28th January 2020 alone. https://twitter.com/cbic_india/status/1222544262052495360?s=20

GST: Late Fee for delayed filing of GSTR 9 is likely to be waived. There is no late fee for non-filing or delayed filing of GSTR9C except the levy of Penalty of Rs.50000 (cgst 25 gst 25) which can be initiated only through process of issue of Show Cause Notice which is also expected to be waived.

SEBI has further tightened norms for commodity futures trading by categorising commodities based on its volatility and imposing identical margins across exchanges. Due to wide variation in liquidity and volatility among different commodity derivatives, SEBI has categorised commodities as per their realised volatility and has prescribed floor values of initial margin and IMPOR (initial margin period of risk) depending upon their categories.

Manufacturing companies in India may need to fulfil 1,984 compliances under various central and state laws, which are time-consuming and increase the cost of doing business, industry lobby group Ficci has told top government functionaries ahead of the Union Budget.

IBC: Supreme Court has held that there is no requirement under the Insolvency and Bankruptcy Code that the resolution plan should match the liquidation value of the corporate debtor in the case of Maharashtra Seamless Ltd (MSL) v Padmanabhan Venkatesh and others.

MCA: Allahabad High Court has upheld the constitutional validity of Section 164(2) of the Companies Act 2013 which stipulates that a Director whose Company has not filed financial statements or annual returns for any continuous period of three financial years shall be disqualified from holding the position for five years.

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👉 EPC lenders move NCLT against Mauritian bidder - In November 2019, the Mumbai bench of the NCLT approved a resolution plan by Mauritius-based Royale Partners for EPC Constructions to revive the company that was previously known as Essar Projects India. The foreign investor had offered to put in around Rs 900 crore to revive the company, which owed more than Rs 7,700 crore to its financial and operational creditors.

👉 NCLT extends Videocon's insolvency resolution process - "This is for the extension of the CIRP process as it ends on 4th of February. Public notices are being given for the submission of bids on 31st of Jan and we see a lot of it coming in, so we request the CIRP process be extended further," said the counsel representing Videocon Industries. Videocon Group had sought EoIs for its 13 group companies.

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👉🏻MCA may soon tighten reporting norms for Auditors

(MCA might tweak the Companies Auditors Report Order (CARO) and the audit reporting standards as mandated under the Companies Act.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2GAmC68

👉🏻MCA notifies rules for winding up of Companies under Companies Act

(MCA notified rules for winding up of companies, making it easier for smaller firms to wind up businesses without taking approval)

👇🏻 👇🏻 👇🏻

http://bit.ly/2t86k0Y

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LATE FEE GSTR-9 & GSTR-9C

GSTR-9

Late fees is mentioned in Section 47(2) of the Act, i.e

Section 47(2):- Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount calculated at a quarter percent of his turnover in the state or union territory.

Hence for GSTR-9 the Late fees both under SGST and CGST is Rs. 200 per day subject to the maximum as mentioned above.

GSTR-9C

There is No late fee for delayed filling of GSTR-9C and further there is no specific penalty for GSTR-9C in the GST Act. However it may be serve by General Penalty Section 125.ie

Section 125:-Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.

The penalty under section 125 is not a mandatory penalty and the amount is not fixed because it may extend to Rs. 25000.00 i.e. from Re.1 to 25000.00

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MCA Update

Form AOC-4 NBFC (Ind-AS) and Form AOC-4 CFS NBFC (Ind-AS)

MCA will deploy two new eForms Form AOC-4 NBFC (Ind-AS) and Form AOC-4 CFS NBFC (Ind-AS) from January 31 and February 17 respectively. The last date for filing these forms are March 31 for F.Y. 2018-19 without late fees.

Official Circular: http://www.mca.gov.in/Ministry/pdf/Circular_30012020.pdf

Thanks for reading

Tuesday, 28 January 2020

28 January 2020 News and Updates

28th January 2K20

Ø Eyeing leadership position in EV segment: Tata Motors

Ø Govt. in no position to bail out banks: Abhijit Banerjee

Ø Franklin Templeton MF sidepockets exposure to Voda

Ø NTPC may not conclude THDCIL, NEEPCO deal soon

Ø Gold imports dip 6.77 per cent during April-Dec 2019

Ø Oil industry torn between Thunberg & Trump

Ø Smaller towns driving demand for regional content, OTT viewership growth

Ø TCS plans consolidation of business units to boost revenue growth

Ø Govt. likely to allow Indian companies list their equity shares overseas

Ø RIL's partnership with Saudi Aramco not a retreat from energy biz: Report

Ø Govt's fiscal woes likely to climb as gross spending to rise by 20%: Report

Ø Easier FDI norms coming for ‘most favoured nations’

Ø ‘Biggest challenge in any sector is poor customer demand’

Ø Force Motors plans ₹600-cr capex to develop 2 new models

Ø MG Motor India eyes 30% production hike for Hector SUV

Ø Signs of recovery: Cargo handling at ports gains momentum

Ø Oil slumps as fears grow over impact of China’s coronavirus

Ø Tax department gets a ₹10,000 cr windfall from pact with MNCs

Ø FPIs pour in ₹1,624 cr in Jan so far as US-China trade deal boosts sentiment

Ø Half a dozen global firms are in talks for billion-dollar deals: Hiranandani

Ø UK to use high tariff threat to raise pressure in trade negotiations

Ø Assessing current economic situation major challenge: RBI

Ø Warehousing sector to add 40 million sq ft space across top 8 cities this year: Report

Ø India, Brazil sign 15 accords across range of sectors to better ties

Ø India may raise import duties on more than 50 items this week

Ø India's rice exports fall sharply over Iran's payment delay

Ø I-T refunds of Rs 1.7L cr to hurt FY20 direct tax mop-up

Ø SEBI takes steps to avoid rerun of IndiGo feud

Ø HDFC Q3 profit jumps 4 times to Rs 8,372 cr

Ø IndiGo Q3 profit zooms over 2-fold to Rs 496 crore

Ø Don't allow zero-duty palm oil from Nepal: Trade body

Ø Maruti hikes prices of select models by up to 4.7%

Ø SEBI panel proposes overhaul of norms governing related party transactions

Ø PFC lists $750 million bonds at NSE IFSC; increases foreign borrowing

Ø Dr Reddy's posts Rs 570-cr net loss due to heavy impairment charge

Ø Govt. to sell 100% stake in Air India; sets March 17 as deadline for bids

Ø Income mismatch probe: 5,000 companies under tax department lens

Ø Qatar rejects India’s request for renegotiating existing LNG contracts

Ø Four per cent rise recorded in tea production in 2019

Ø Net direct tax collection posts a shortfall of 5.4%

Ø Tata Projects bags multiple orders worth ₹6,000 crore from BPCL, HPCL Rajasthan

Ø IndiGrid InvIT looking to buy four transmission assets for ₹7,000 crore

Ø Vodafone, Airtel in the red as PIL against non-payment of AGR dues moved in SC

Ø Dewan Housing Finance withdraws draft resolution plan

Ø Furniture imports may face restrictions to boost domestic manufacturing

Ø Bengaluru airport investing ₹13,000 crore on infrastructure expansion

Ø Urban cooperative banks reported nearly 1,000 frauds in five years: RBI

Ø SEBI, NHB issue notice to DHFL over non-compliance of guidelines

Ø India & Brazil agree to resolve Sugar subsidies issue bilaterally

Ø Bank of Baroda says fresh NPA accretion nearly peaked

Ø Employees of PSU banks threaten to go on two-day strike from January 31

Ø India needs to re-examine long-term gas pricing with Qatar: Pradhan

Ø Nestle buys Allergan business to expand in medical nutrition

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Action point regarding GST notices

It is observed from last few days there are series of notices from the department in which it is instructed by the department to pay the excess ITC along with interest .

In the first instance all these notice are without DIN ( Document Identification Number ) and department has itself declare that any communication from the department without DIN has no relevancy .

Assessee need to check ,whether he is in fault in respect to the matter as specified in the notice and should do the necessary rectification .

Notices in respect to Rule 36(4) in which it is asked to reverse the excess credit taken .It is pertinent to note here that the applicability of relevant section is from 9th October 2019 and as such any the difference between the ITC taken in 3 B and as appearing in 2A can not be more than 20 percent . For a return which is filed after 9 th October 2019 ,it has its applicability irrespective of the fact that the tax period is of period before 9 th October 2019

From 1st Jan the same limit is 10 percent .

It is advisable to make it a point to rectify any error of excess credit sue moto ,else one has to pay interest @18 percent.

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👉 A functionality has been enabled in the e-filing login of the taxpayers whose business turnover exceeds Rs.50 crores to provide the prescribed mode of electronic acceptance of payment made available to the customers Refer Notification | [Refer Circular] https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/notification_105_2019.pdf

https://www.incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF_News/circular_32_2019.pdf

👉 Committee for Capacity Building of Members in Practice, ICAI is organising 6 CPE hours Training Programme on Auditors engagement in Procurement post review for World Bank Funded projects to be held on 31st January, 2020 at New Delhi. https://www.icai.org/event.html?event=5098

👉 GSTR 1 (T.O. upto 1.5 Crore) Quarterly 31st January

👉 GSTR 9 (T.O. more than 2 Crore) Annually (FY 2017-18) 31st January

👉 GSTR 9A (T.O. more than 2 Crore) Annually (FY 2017-18) 31st January

👉 GSTR 9C (T.O. more than 2 Crore) Annually (FY 2017-18) 31st January

https://blog.saginfotech.com/gst-due-dates-e-filing-of-tax-return

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Tax collections in the current fiscal may fall short of targets by as much as Rs 2 lakh crore on faltering economy, leaving a very little room for Finance Minister for offering any meaningful reduction in personal income tax rates. corporate tax collections are likely to miss FY2020 targets by as much as Rs 1.5 lakh crore while indirect taxes may fall short by about Rs 50,000 crore on drop in GST in a sluggish economy.

India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion worth of imports from China and elsewhere.

GST department has come out with an important circular for exporters. To identify fake exporters or fake refund by exporters as well as to assist genuine exporters, it says that exporters can suo moto file details as prescribed in the circular, such as :-

Details of Directors / Partners /

Proprietor

Turnover

GST Liability

ITC availed

Refund Claimed

Summary of e way bill generated

Bank details. Once the above information has been filed, department will conduct verification of such exporters within 14 days of filing

If such verification is not done within 14 days, the exporters can mail the matter to Commissioner at the email id provided in the circular. Commissioner will then get verification completed within 7 days.

The circular also says that if refund application is pending for more than one month, such exporters can register their grievances at www.cbic.gov.in/issue. ( Ref: Circular no 131 DT 23rd Jan 2020).

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👉🏻5000 Companies under scanner over mismatch between Income Tax and GST filings

(Around 5,000 companies have come under the scanner of tax authorities due to alleged discrepancies between their Goods and Services Tax (GST) filings and Income Tax (I-T) returns)

👇🏻 👇🏻 👇🏻

http://bit.ly/3aMT5Uz

👉🏻Govt blocks Rs 40,000 Cr GST claims on returns mismatch

(CBIC has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities)

👇🏻 👇🏻 👇🏻

http://bit.ly/36xS9A2

👉🏻Analysis of Rule 86A - Blocking of ITC

(Analysis of Rule 86A - Blocking of ITC by CA. Bhavesh Mittal)

👇🏻 👇🏻 👇🏻

http://bit.ly/30ZkpKE

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👉 It's time for govt to rethink the investor-State dispute regime - As per reports, the finance ministry has mooted a 40-page draft proposal that envisages the appointment of mediators and the setting up of fast-track courts to resolve disputes with foreign investors. While the proposal is being reviewed, it certainly would be a welcome step in rethinking the investor-State dispute regime.

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OECD chief Angela Gurria said the international body's plan to help solve digital tax problems has got support of 137 countries and new rules must be put in place to stop evasion worth hundreds of billions of dollars.

Gujrat High Court in the matter of Mohit Minerals Pvt Ltd decided that Under GST, an importer is not liable to pay tax under Reverse Charge Basis on Ocean Freight if the import has been made on CIF basis.

Sebi is planning to set up a data lake project for improving surveillance to monitor and analyse social media posts to keep a tab on possible market manipulations. The regulator is in the process of acquiring the technology and has already floated tenders for the same.

RBI bought Rs 10,000 crore of three long-term securities while selling a same amount of three short-term bonds. The RBI had announced to simultaneous purchase and sale of government securities (G-Secs) under open market operations (OMOs) for Rs 10,000 crore each.

Madras High Court has held that acceptance of Corporate Insolvency Resolution Plan under Section 31 of the Insolvency and Bankruptcy code, 2016 cannot be a ground for quashing the prosecution initiated under Section 138 of the Negotiable Instruments Act, 1881 against the Corporate Debtor and its officials.

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👉🏻Tax Invasion is a Social Injustice to fellow citizens - CJI

(Chief Justice of India has said that the Tax Invasion is a Social Injustice to follow citizens and arbitrary or excessive tax is also results in injustice to tax payers)

👇🏻 👇🏻 👇🏻

http://bit.ly/2RPQYGK

👉🏻GST authorities to block GST Credit of over 1,000 Taxpayers

(GST authorities to block input tax credit of about 1,000 taxpayers who have allegedly claimed more credit than they were eligible for)

👇🏻 👇🏻 👇🏻

http://bit.ly/38HDfc1

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👉 Creditor take Gurgaon realty firm into NCLT - The Delhi Bench of National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution proceedings (CIRP) against a Lotus Green Group Company, the Gurgaon based Bright Buildtech Pvt. Ltd.

👉 30 days for appeal file u/s 61(2) count from the date of issuance of certified copy-Damodar Valley Corporation Vs. Divya Jyoti Sponge Iron Pvt. Ltd. & Ors. -NCLAT

NCLAT held that in terms of the Section 61(2) provision, if we count from the date of issuance of certified copy i.e. 28th August, 2019, we find that the appeal has been filed beyond 30 days of the said order. This Appellate Tribunal is empowered to condone delay for a period not exceeding 15 days after expiry of the aforesaid period of 30 days, if it is satisfied that there is sufficient cause for not filing such appeal. Even if it is accepted that there was a sufficient cause in not preferring the appeal during period of vacation i.e. 2nd October, 2019 to 13th October, 2019, the delay having exceeded more than 15 days beyond 30 days, we hold that this appeal under Section 61 is not maintainable being barred by limitation.

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Professional Information

👉 31.01.2020 is LAST DATE to pay ICAI membership & COP Fees for FY 2019-20 for all CAs.

👉 31.01.2020 is the due date to file TDS Return (24Q, 26Q, 27Q) for Q3 of F.Y. 2019-20.

👉 GST 31.01.2020 is the due date to file GSTR-9/9C for F.Y. 2017-18.

👉 31.01.2020 is the due date to file GSTR-1 (turnover upto INR 1.50 crores) for Q3 (2019-20).

👉 The CCBMP Committee has taken up Various Initiatives for the Benefit of Members of ICAI

In this regard, an Exclusive Portal https://cmpbenefits.icai.org/ has been Launched

Some Key Initiatives

Tally.ERP 9 Gold Edition (Multi-User version)

Group Term Insurance

Antivirus Software : “Quick Heal Total Security”

Health Insurance

Professional Indemnity Insurance

Motor Vehicle Insurance

Personal Accident Insurance

Householder’s Insurance

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👉 NCLAT sets aside insolvency proceedings against Raheja Developers- Earlier, on August 20 last year, the Delhi-based principal bench of the National Company Law Tribunal (NCLT) had directed to initiate insolvency proceedings against the company over the plea filed by one of its flat buyers citing delay in the project and appointed an interim resolution professional.

👉 Uttam Galva Steel on Tuesday challenged Deutsche Bank's application at the National Company Law Tribunal (NCLT) for the recovery of $20 million (Rs 142 crore). The Singapore branch of Deutsche Bank had given a $20 million credit facility to Uttam Galva on May 2, 2013. Uttam Galva has raised two contentions opposing the petition — one that the debt was time-barred and the other that the loan agreement was not stamped. Since the document is not stamped in Maharashtra, Deutsche's claim cannot be enforced, argued Khaitan Legal Associates, the law firm representing Uttam Galva at the NCLT.

👉 NHPC's Rs 165-crore bid for Jal Power's 120 MW Rangit project gets lenders' nod - "NHPC Ltd has been declared as the Successful Resolution Applicant by the Committee of Creditors (CoC) of Jal Power Corporation Limited (120 MW Rangit Stage IV HE Project) subject to approval of Resolution Plan by the Hon'ble National Company Law Tribunal, Hyderabad Bench,"

Thanks for reading

Friday, 24 January 2020

24 January 2020 News and Updates

24th January 2020

Ø Govt may raise Rs 10K cr from 7th CPSE ETF tranche

Ø RBI raises VRR limit for FPIs to Rs 1.50 lakh crore

Ø Jio's operating income may double in 2 yrs: CLSA

Ø Kuwait firm to set up Rs 49K cr oil refinery in TN: CM

Ø US judge rules against outsourcing firm

Ø Govt. may go for $28 bn off-budget borrowings: Sources

Ø SEBI may seek forensic audit of Infosys books amid whistleblower charges

Ø Global value chains need to reinvent itself to cope with tariff wars

Ø 137 countries on board for OECD digital tax plan: Gurria at WEF Davos

Ø Malaysia hikes sugar import from India to resolve palm oil spat: Report

Ø RBI buys Rs 10,000 cr of long-term securities in 4th special open mkt ops

Ø Assam Government requests Central Government to divest BPCL's stake in NRL to Oil India

Ø PVR Q3 consolidated net at Rs 36.25 cr

Ø KEC bags orders worth ₹1,255 crore

Ø Textile industry worried as Govt. scraps export sops

Ø Agri-tech start-ups set to bloom on huge investments

Ø Biocon Q3 net profit dips 7 per cent to Rs 203 cr

Ø RBI ups investment limit for FPIs in Govt., corporate bonds

Ø Reliance Jio clears its AGR dues of 195 crore till January 31

Ø Cable maker KEI Industries launches QIP to raise up to ₹500 crore

Ø Lenders set terms for DHFL liquidation after big loss

Ø PNB Housing Finance Q3 net falls 22% to ₹237 crore, misses estimates

Ø ITI fixes price band for FPO at ₹72-77 per share

Ø Tata Projects bags Rs 6,000-crore orders in oil, gas refinery sector

Ø DoT seeking Rs 3 lakh crore from GAIL, other non-telecom PSUs result of communication gap: Dharmendra Pradhan

Ø Japan’s Ajinomoto plans to expand market share in Indian MSG market

Ø ONGC gets 28 bids for 50 oil, gas fields in 1st bid round

Ø Investors bullish on Asian currencies as trade worries fade: report

Ø Malaysia to buy more sugar from India to help resolve palm oil spat: sources

Ø PE/VC investments ris to 1.7 per cent of GDP in 2019

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Message1:

(i) Stakeholders may please note that as part of Government of India’s Ease of Doing Business(EODB) initiatives, the Ministry of Corporate Affairs would be shortly notifying & deploying a new Web Form christened ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form.

(ii) SPICe+ would be an integrated Web form offering multiple services viz. name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra) and Opening of Bank Account. It will also facilitate allotment of GSTIN wherever so applied for by the Stakeholders. After deployment of SPICe+ web form, RUN shall be applicable only for change of name of existing companies.

(iii) Upon notification & deployment, all new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only

(iv) However, incorporation of companies for names reserved through the existing RUN service shall continue to be filed in the existing SPICe eform along with related linked forms as applicable and if marked under resubmission shall be resubmitted in SPICe eform.

(v) Resubmission of SPICe forms submitted prior to date of deployment of SPICe+ web form shall also be filed in the existing SPICe eform and related linked forms as applicable.

Message2:

Due to the proposed changes to the RUN web service (for companies), RESUBMISSION OPTION for name reservation SHALL NOT BE AVAILABLE from 1st Feb 2020 ONWARDS for approximately 15 days. Hence, after 01 Feb 2020, stakeholders are advised to EITHER AWAIT DEPLOYMENT OF SPICe+ AND THEN APPLY FOR NAMES through SPICe+ web form or perform due diligence while submitting any application in existing RUN web service for name reservation. RUN applications (for companies) filed w.e.f 1st February 2020 onwards shall either be approved or rejected based on checks performed by CRC officers. Stakeholders may kindly note and plan accordingly.

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# GSTN has issued FAQ and User Manual on New Return Dashboard.

It is a possibility that new returns will be available from 01.04.2020 with a transition cycle and will become mandatory for all soon.

Link: https://tutorial.gst.gov.in/userguide/newreturns/index.htm#t=returns_dashboard_faq.htm

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👉 GSTN has issued FAQ and User Manual on New Return Dashboard.

It is a possibility that new returns will be available from 01.04.2020 with a transition cycle and will become mandatory for all soon. https://tutorial.gst.gov.in/userguide/newreturns/index.htm#t=returns_dashboard_faq.htm

👉 ICAI: Training Prog for Peer Reviewers at Delhi. on 27 Jan. https://resource.cdn.icai.org/58078prb47365.pdf

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👉🏻RBI raises short-term investment limit of FPIs to 30% from 20% of portfolio

(RBI increased the short-term investment limit of such investors. It doubled the limit in case they voluntarily disclose their investment plan before hand.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2TP50et

👉🏻Alberta invites Express Entry candidates with CRS scores of 350

(Alberta issued 150 invitations, or Notifications of Interest (NOIs), to candidates in the federal Express Entry Pool.Candidates with Comprehensive Ranking System (CRS) scores as low as 350 were given NOIs)

👇🏻 👇🏻 👇🏻

http://bit.ly/2urrh7y

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IGST on ocean freight held illegal. pleased to share that on (23.01.2020) Gujarat HC in most awaited and landmark judgment in batch of petitions taking lead petition (Mohit Minerals SCA No.726 of 2018) held that collection of IGST on ocean freight under the impugned Notifications is not permissible in law. The High Court further held that "The impugned Notification No.8/2017 – Integrated Tax (Rate) dated 28th June 2017 and the Entry 10 of the Notification No.10/2017 – Integrated Tax (Rate) dated 28th June 2017 are declared as ultra vires the Integrated Goods and Services Tax Act, 2017, as they lack legislative competency. Both the Notifications are hereby declared to be unconstitutional."This judgment will have long lasting effect in taxation policy under GST. Which lead to this judgments in favour of taxpayers.

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👉 The Applicant who is an Advocate filed Application u/s 9 of IBC claiming that Corporate Debtor (CD) had not paid his professional fees for legal services rendered by him as a lawyer to the CD in a case filed by a Bank against CD for realisation of Rs 168.78 Crores with future interest @ 15.25 percent with monthly rests from 16.12.2009 filed before DRT Ernakulam.

Applicant claimed that he had conducted the case for 7 years. The case was settled out of Court for Rs 80 Crores as against 168.78 Crores plus interest @15.25 percent with monthly rests from 16.12.2009.

Applicant further claimed that as per Rules framed by Kerala High Court a lawyer is entitled to receive 5 percent of the subject matter of the case or if it is settled out of court then it will be 50 percent i.e 2.5 percent.

👉 NCLAT defers hearing on JSW Steel's Bhushan Power buyout till Jan 31

The ED has said a recent amendment in IBC would not apply to the JSW Steel-BPSL deal as it was approved last year, before the amendment came into force. Moreover, it has also hinted that promoters of JSW and BPSL are related parties as they had a joint venture for a coal block.

Thursday, 23 January 2020

23 January 2020 News and Updates

Corporate Snippets on Jan 23

Ø IMF cuts India’s FY20 growth forecast to 4.8%

Ø CCI approves Reliance's divestment of Jio tower assets

Ø India attracted $49 billion FDI in 2019: UNCTAD

Ø DoT seeks Rs. 48,000 crore from OIL in telecom dues

Ø NIC approves merger proposal with two other insurers

Ø Cut in duty-free liquor quota may hit Adani, Zurich

Ø Telcos to file plea in SC for time to pay AGR dues

Ø OMCs to be weak on refining front in Q3

Ø AGR dues: Telcos dial SC again, seek change in 90-day payment deadline

Ø 30,000 tonnes of palm oil stuck at Indian ports after curbs on Malaysia

Ø Indian Railway Finance Corporation files IPO draft papers with SEBI

Ø MCA unearths Rs. 700 cr scam in Unitech, says funds diverted to 16 shell cos

Ø OMCs float season's 2nd tender, seek 2.5 bn litres ethanol from sugar mills

Ø India still fourth-most attractive market, shows PwC Global CEO survey

Ø Finance Ministry to block ITC for entities caught using fake invoices

Ø BEL commissions real time train info system for Railways

Ø Hindustan Zinc net down 27% on lower realisation

Ø Tata International eyes ₹1,000-cr revenue from leather products

Ø Ashok Leyland sees pick up in demand for tippers and ICVs

Ø Power Exchange India upgrades its trading platform

Ø India's richest 1% holds over 40% of national wealth: Report

Ø IMF trims global economic outlook but tones down risk warnings

Ø Dubai's biggest bank goes after debt-laden Al Jaber’s land in finance hub

Ø Ujjivan Small Finance Bank eyes small businesses amid retreat by NBFCs

Ø Altico NPAs swell nearly 40% of total credit in Dec, lenders trying to cut debt

Ø Govt. cuts reserve prices of wheat, rice to make space for new crop yield

Ø Federal Bank profit surges 32% boosted by higher income, lower provisions

Ø Consumer spendings drop again in January amid concerns for economy

Ø India makes around Rs 33-crore payment to WTO for 2020 in advance

Ø World’s richest 2,000 people hold more than poorest 4.6 billion combined: Oxfam Report

Ø Interim dividend issue may come up in next RBI's board meeting

Ø No dearth of money, plan to spend Rs 5 lakh cr on infra: Gadkari

Ø Govt. plans to extend urad imports till June on likely domestic shortage: sources

Ø ITI's Rs 1,600-cr FPO to open on Friday

Ø South Indian Bank to raise Rs 500 crore from bonds

Ø Nominal GDP needs to grow above 10% for wage growth

Ø GAIL to invest Rs 45k cr to create gas-based economy

Ø Axis Bank Q3 profit up 4.5%, misses Street estimates

Ø Adani Group aims to be largest solar power by 2025

Ø SEBI cuts notice period for rights issue to 3 days

Ø SEBI to rope in independent agencies to dispose of attached assets

Ø State govts slash price of electricity generated by sugar mills by 50%

Ø Fee-charging advisors fear SEBI move on net worth may undermine business

Ø Telcos to miss Jan 24 AGR deadline, wait for 'modification' plea hearing

Ø New York's Interups plans to acquire assets worth $8 billion in India

Ø Japan's NTT to invest estimated $1.5 billion in data centres in India

Ø L&T profit rises 13.8% to ₹2,161 crore in December quarter

Ø IndiGrid Q3 profit jumps over 2-folds to ₹131.83 crore

Ø Apollo Tyres keen to burn rubber despite testing economic times

Ø Syngene Q3 profit rises 6% with 11% increase in revenue

Ø IndianOil signs MoU with Ghana’s National Petroleum Authority

Ø RBL Bank’s net drops 69% as provisions balloon

Ø TCS brand value grew nearly six-fold since 2010 to $13.5 bn in 2019: Report

Ø Sun Pharma recalls batches of anti-migraine drug, testosterone injection in US

Ø ReNew Power raises $450 million via dollar bonds

Ø Shriram Capital halts 3-way merger after RBI request

Ø DHFL depositors move Supreme Court seeking stay on plans to resume lending

Ø Telcos to take a call on paying AGR dues today

Ø US criticises CPEC, says no transparency in projects undertaken by China

Ø RBI allows NBFCs to auction gold pooled from multiple branches

Ø Cabinet approves closure of Hindustan Fluorocarbons Ltd

Ø Supreme Court stays recovery suit against Tata Steel BSL

Ø Housing sales down 9 pc, new supply falls 10 pc in Oct-Dec: report

Ø One-fifth taxpayers file returns on last day: GST Network

Ø Nirav Modi's seized assets to be auctioned

Ø Lebanese focus fury on banks amid severe financial crisis

Ø Global device shipments to grow 0.9 per cent in 2020

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Bombay High Court In the case of PCIT vs. Pinaki D. Panani Even if the purchases made by the assessee are to be treated as bogus, it does not mean that entire amount can be disallowed. As the AO did not dispute the consumption of the raw materials and completion of work, only a percentage of net profit on total turnover can be estimated (Favour of Assessee).

Jaipur ITAT quashes the final assessment order passed without issuing draft assessment order u/s 144C of the Income Tax Act, 1961 (‘Act’). Jaipur ITAT notes that the TPO had made additions pertaining to domestic transactions and assessee was an eligible assessee as defined u/s 144C(15). Further, it was held that service of draft order was not merely a procedural requirement but a mandatory procedure to be followed by the AO– Jhandewala Foods Limited vs ACIT

GST Taxpayer not entitled to additional GST due to faulty contract clauses. HC of Kerala dated 20th March, 2019 regarding levy and collection of tax in case of Jilmon John V. State of Kerala [2019] 112 taxmann.com 62.

GST :Goods and Transport vehicle cannot be detained by the department on the ground of non filing of GSTR 3B and GSTR 1 ( Ref : Relcon Foundation Pvt Ltd - Kerela High Court )

DIRECTORATE GENERAL OF GST INTELLIGENCE (HQRS) F.No. 587/CE/167/Po1/2019/11219-11269 dated 13.01.2020 regarding Blocking of Input Tax Credit under rule 86A(1)(a) of CGST.

Central Goods & Services Tax (CGST) administration has started blocking input tax credit (ITC) for assessees who availed credit against fake invoices, or against invoices without the receipt of goods or services, or both.

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👉CMI&B of ICAI is conducting 51st Campus Placement Programme in the month of Feb-March, 2020. https://www.icai.org/new_post.html?post_id=16245&c_id=240

👉RBI issues directions for permitting Rupee derivatives (with settlement in foreign currency) to be traded in International Financial Services Centres (IFSCs). https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49202

👉Money Market Operations as on January. https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49204

👉 With a view to ‘boost foreign investment’, GoI is reportedly planning to introduce a new law for ‘safeguarding’ the rights of foreign investors.

As per reports, the finance ministry has mooted a 40-page draft proposal that envisages the appointment of mediators and the setting up of fast-track courts to resolve disputes with foreign investors. While the proposal is being reviewed, it certainly would be a welcome step in rethinking the investor-State dispute regime.

👉 In a significant change in the liquidation framework, the Insolvency and Bankruptcy Board of India (IBBI) has prohibited secured creditors from selling assets of a company to any person restricted from submitting an insolvency resolution plan.

The move will close doors on promoters regaining control of their insolvent firms during liquidation proceedings. The IBBI said it has notified changes to the regulations with effect from January 6. The amendment also provides for a stakeholder to withdraw from the corporate liquidation account.

👉Setting up of IFSC Banking Units (IBUs) – Permissible activities. https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11794&Mode=0

👉On-line facility for seeking change of Centre/Group/Medium for appearing in CA examinations - Correction Window. - https://resource.cdn.icai.org/58072exam47355.pdf

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👉🏻Income tax dept serves notices to over 44,000 cases under e-assessment scheme

(After the launch of e-assessment facility in October last year, out of 58,322 cases selected for faceless assessment, digitally signed notices were served in 44,285 cases)

👇🏻 👇🏻 👇🏻

http://bit.ly/2TLWcGj

👉🏻SEBI notifies norms, scraps upfront fees for portfolio management services

(SEBI notified its norms for portfolio managers, doubling the minimum investment amount to be taken from clients to Rs 50 lakh and asking such managers to raise their net worth to Rs 5 Cr within three years of notification)

👇🏻 👇🏻 👇🏻

http://bit.ly/38nLJom

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Several jewellers have been put under scrutiny by the income tax department in cases of alleged large and disproportionate cash deposits during the demonetisation period (November 9-December 30, 2016). In some cases, some of these jewellers have been found to have deposited nearly 1,000 times as much cash during this period compared to the year-ago period.

Bombay High Court In the matter of Madhuri Doulatram Choitram Vs Lachmandas Tulsiram Nayar (HUF) : a member of the family other than, or in the absence of, a Karta, may be permitted to prosecute the suit on account of special circumstances of a given case.

Income tax commissioners in Mumbai decided to allow “deserving” assessees pay in instalments the amount they are required to fork out after challenging a tax demand order. After receiving a demand order from the assessing officer of the Income Tax department, a tax payer has to pay 20% of the demand within a month once the order is challenged before the CIT (Appeals). This amount can now be paid in multiple instalments till end March.

Government may be losing Rs. 5 trillion in indirect tax revenue a year, amounting to 40% of its GST collection target, because of defaults and evasion, according to the Fifteenth Finance Commission (FFC), confirming policymakers’ fears that businesses are not paying their fair share of taxes.

NCLT order had cast doubt on debt resolutions of several companies including Videocon Industries and Essar Projects, where former bank officials are working as IRPs.

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IRDA has issued a circular yesterday wherein the earlier circular dated June 28, 2017 in which the effective date of implementation of Ind AS was deferred to FY 2020-21 stands withdrawn and the requirement of Proforma Ind AS financial statements being submitted on a quarterly basis also stands dispensed with.

Since, IASB has taken a considered view to amend IFRS 17: Insurance Contracts, due to the concerns raised around accounting treatments, operational complexity and implementation challenges raised by various stakeholders and indicated to issue the final amendments in mid-2020. Once the final standard (with amendments) is notified, the equivalent standard Ind AS 117 will be notified by MCA in India.

Hence, The effective date of implementation shall be decided after the finalization of IFRS 17 by IASB. Accordingly, the earlier circular dated 28th June 2017 stabds withdrawn.

Relevant circular is attached for ready reference

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# GSTR-3B due dates now rescheduled:-

1) For Annual Turnover Rs.5.00 crore & more in previous year - 20th of next month

2) For Annual Turnover up to Rs.5.00 crore in previous year -

A) 15 various states including MP, MH, CG, Guj etc. - 22nd of next month.

B) 22 various states including UP, Delhi, Raj, etc. - 24th of next month.

# The ICAI Board of Studies is pleased to launch the Intermediate Course e-books for May 2020 Examinations along with embedded video lectures and self-assessment quizzes. To avail, visit: https://learning.icai.org/elearning

In case of any queries, students may write to Helpdesk at boslearning@icai.in

# ICAI - Announcement for the 1st Batch of the

Certificate Course on Public Finance & Government Accounting - (21-01-2020) - https://www.icai.org/new_post.html?post_id=16246&c_id=240

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👉🏻Govt can’t invalidate PAN for lack of Aadhaar linkage - HC

(Gujarat High Court said that PAN does not become invalid for filing income tax returns and making transactions just because it is not linked to their Aadhaar card.

👇🏻 👇🏻 👇🏻

http://bit.ly/30WlvXP

👉🏻Canada invites 3,400 Express Entry candidates to apply for PR

(The Government of Canada issued 3,400 invitations to apply for Canadian Permanent Residence to Express Entry candidates in a draw held January 22.)

👇🏻 👇🏻 👇🏻

http://bit.ly/30IZ2gG

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Kerala High Court in the matter of Kannangayathu Metals decided that if transportation vehicle is carrying proper E way bill and Tax Invoice but the truck driver has taken some other route to reach the destination, vehicle and goods cannot be detained solely because driver has opted for a different route.

GST Network said a total of 65.65 lakh returns for December were filed till January 20, out of which 13.30 lakh returns were filed on the last day itself. “There have been few issues about one-time passwords (OTPs) being received with some time lag on account of delay by the email service provider or local internet issues.

Calcutta High Court held that the corporate insolvency resolution procedure enumerated under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be used as a tool to curtail any claim which arose prior to the commencement of the insolvency proceedings.

Allahabad High Court has upheld the constitutional validity of section 164(2) of the companies Act 2013, which stipulates that a Director whose company has not filed Financial Statements or Annual Returns for any continuous period of three financial years, shall be disqualified from holding the position for five years

Regards

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Mca Update

#MCA #SPICE #ROC #Company #Incorporation

Message

(iii) Upon notification & deployment, all new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only

(v) Resubmission of SPICe forms submitted prior to date of deployment of SPICe+ web form shall also be filed in the existing SPICe eform and related linked forms as applicable.

Thanks for reading

Monday, 20 January 2020

20 January 2020 News and Updates

Corporate Snippets on Jan 20

Ø State-owned firms may be able to dodge the Rs 2.4L cr AGR bullet

Ø Passenger vehicle exports rise 6% in April-Dec

Ø Government mulls corporatising KVIC’s marketing unit

Ø Govt. considering specific excise duty on ATF

Ø National database of workers in informal sector in the works

Ø RIL's earnings parity expected by FY22 in consumer, core business

Ø China to increase US imports according to 'market principles': Official

Ø Piramal Enterprises' Rs 3,650-cr rights issue subscribed 8% ahead of close

Ø ArcelorMittal-Nippon plans to take control of captive jetty at Hazira

Ø IOC ties up with Cummins for bulk dispensing of diesel exhaust fuel ‘ClearBlue’

Ø Commerce Ministry wants tighter curbs on duty-free sale of alcohol, tobacco

Ø Govt’s reforms have been transformative: Sitharaman

Ø Power generation, demand continue to slide for fourth straight quarter

Ø Kia Motors eyes full capacity utilisation with slew of new models

Ø RIL outperforms industry in petrol, diesel sales from its 1,400-odd outlets

Ø Despite its limited success, RBI needs to persevere with Operation Twist

Ø Tailwinds to domestic growth may add more potency to pharma’s Q3

Ø India may miss tax collection target for 2019-20 by nearly Rs. 2.5 lakh cr: Garg

Ø Interim dividend issue may be on the agenda of next RBI board meeting

Ø Neighbourhood First: India-Bangladesh to sign trade agreement soon

Ø DLF asked to register transfer of shares to investor’s legal heirs

Ø HCL Technologies expects strong demand across sectors in coming quarters

Ø Stainless steel industry seeks zero duty on ferro-nickel, scrap in upcoming Budget

Ø Investment in equity MFs drops 41% to Rs 75,000 cr in 2019 on slow economy

Ø M&M subsidiary to acquire e-com market platform Fifth Gear Ventures

Ø Over 70 per cent dip in 100 days work under MGNREGA

Ø Bank unions call two-day strike from Jan 31

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GST In an Appeal filed before Appellate AAR under GST, West Bengal by Ashish Ghosh [2020 (32) G.S.T.L 225]- Applicant procured contracts for filing in the compound, tank, lowland with silver sand and earthwork in layers. WBAAR held that such activity is not the contract for supply of goods but transfer of property in such goods in the course of site preparation and thus Works Contract. Applicant contention that in the said involves 90% as supply of sand and 10% being service, hence the said contract is "composite supply". WBAAAR held that appellant work is improvement and modifications of land for future construction and hence appellant content that supply of sand being principal supply is not correct.

*- In an Application filed before AAR under GST, Jharkhand by P.K Agarwalla [2019 (20) G.S.T.L 605]- Major part of contract involving earth related to clearing of earth, excavation, supplying and laying of earth and impervious clay.

a. Clearing of site of all permanent construction

b. Supply and transport of earth

c. Supply and transport impervious clay

d. Supplying laying and compacting uniformly graded filters of crushed stone

e. Providing and laying stone

The major part of the contract involves earth work i.e., more than 75% of the work involves earth work, we hold the same. Earth Work’, we find that the said work order qualifies for the benefit of Serial No. 3 of Notification No. 39/2017, dated 13-10-2017. GST will be applicable at the rate of 5%

* In an application filed before AAR under GST, Mizoaram by Sheldia Associates, INC, USA [2020 (32) G.S.T.L 240] – Applicant to provide services by way of providing engineering, Project Management, Project Planning, Construction Supervision Services of 81KM length of State Highways and major District Roads to PWD, Govt of Mizoram.

Pure Services are exempted subject to

a. Excluding works contract service or other composite supplies involving supply of any goods)

b. provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity

c. in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.

State Highways and District Roads are not within the limits of Panchayats and Municipalities. Since third condition could not be satisfied, hence such services are outside the ambit of exemption.

GST/ST Alert 286- In an Appeal filed before Appellate AAR, GST Odisha by Penguin Trading and Agencies Limited- Licensing services for Right to use Minerals including its exploration and evaluation being Lease by Government not being lease of any goods. Conditional rate of tax applicable to sale of like goods cannot be imported for prescribing the rate of GST applicable to leasing of Mining Area. Impugned service to be covered under revised Entry No (viii) of Notification No. 11/2017 C.T Rate attract GST @ 18%.

While Importing Goods Mention Correct HSN Code in Bill of Entry

Industry minister Piyush Goyal warned against imports under the ‘others’ category, the ministry issued a trade notice on Friday asking traders to strictly mention the respective tariff codes (called HS code in trade parlance) in their bills of entry at the time of imports, failing which the government will consider imposing restrictions for inbound shipments of those goods

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Revenue department has set a target of Rs 1.18 lakh crore of average monthly Goods and Services Tax (GST) collection in the remaining three months of the fiscal (January-March) and has asked the indirect tax department to specially focus on fraudulent input tax credit (ITC) claims as revealed in data analytics review.

GST authorities have zeroed in on about 40,000 companies for claiming excess or wrongful tax rebates, who will now be pursued for recovery of tax dues. If the authorities are not able to recover tax dues from the identified companies with the electronic communication such as emails and text messages, they will be visited by officials and further steps will be taken.

Ahmadabad bench of National Company Law Tribunal has admitted a petition filed by IDBI bank to initiate corporate insolvency resolution process (CIRP) against Anil Ambani's Reliance Naval and Engineering Limited (RNEL) for failing to repay the debt.

Central Government agreed to take over troubled real estate giant Unitech to streamline the management of the company which is in a financial mess caused by siphoning off of more than 50% of money deposited by individuals and financial institutions.

Reserve Bank of India has included the National Population Register letter as an officially valid document (OVD) for Know Your Customer (KYC) verification for opening bank accounts or applying for credit cards. The Reserve Bank of India has also allowed a video based customer identification process for verification.

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👉Pending Due Dates for JANUARY 2020

▶ Today 20 Jan 2020 :-

# GSTR-3B Return - Due date for filling GSTR – 3B return for Previous month

# GSTR-5A:- Return by person providing online information and database access or retrieval services by a person located outside India made to Non-Taxable persons in India for the previous month

*GSTR-5* - Due date of GSTR-5 (for Non-resident Taxable person) for the Previous month.

▶ 30-01-2020

# Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/IB in month of Dec 19.

# Furnishing challan-cum-statement in respect of tax deducted under section 194M in the month of December, 2019

▶ 31 Jan 2020 :-

# TDS Quarter Return: - Quarterly statement of TDS deposited for the previous quarter.

# GSTR – 01 - GST Filing of returns by registered person with aggregate turnover up to 1.50 crores.

# GSTR-9 Annual Return - Annual Return to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation center.

# GSTR-9A -Taxable Persons paying tax under Section 10 of CGST Act, the composition scheme, are required to submit their annual returns in Form GSTR 9A.

# GSTR-9B - Annual Return to be filed by e-commerce operators who have filed GSTR 8 during the financial year.

# GSTR-9C - Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C.

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Transitional Credit- GST- There were several decisions in 2019 that with proof of technical glitches one can seek opening of portal by revenue.

NOW ONE WITH - Proof of technical glitches not required- Delhi HC in the case of SRC AVIATION (P) LTD observed rightly –

The credit standing in favour of an assessee is “property” and the assessee could not be deprived of the said property save by authority of law in terms of Article 300 (A) of the Constitution of India. There is no law brought to the notice of the Court which extinguishes the said right to property of the assessee in the credit standing in their favour. Missed credits application to be made, where rejected resubmitted with the support of this case law.

Enterprises (Guj HC) in Sep 2019 discussed article 300A in same sprit.

And further P&H HC on 04.11.2019 in case of Adfert Technologies also dealt article 300A and given its verdict in bit twisted manner by allowing credit to persons who could not filed the form Tran 1 & also doesn’t have the evidence to show that they tried to file.

Sunday, 19 January 2020

19 January 2020 News and Updates

Corporate Snippets on Jan 19

Ø UN expects India growth to pick up in 2020

Ø IL&FS: NCLAT to distribute proceeds among creditors

Ø RECP offers $125 billion market for domestic companies

Ø Thomson gets Android license, to make TVs in India

Ø Deutsche Bank-led group a step closer to Jindal deal

Ø *IBBI amends voluntary liquidation process regulations*

Ø CBI books Adani Enterprises, 2 ex-NCCF officers

Ø SEBI's proposal to put cap on fee to put investment advisers in a lurch

Ø NSE colocation case: Sebi acquits Ravi Narain, 8 other exchange officials

Ø Nestle to invest $2.1 bn in 5 yrs to switch to food-grade recycled plastics

Ø Govt. plans increase in thickness of polyethylene bags to 125 microns

Ø Moody's places YES Bank's long-term foreign currency rating under review

Ø Edible oil industry seeks restrictions on import licences

Ø Amazon not doing a favour by investing additional $1 billion in India, says Goyal

Ø Gold sentiment to remain soft in India in 2020, says world body

Ø Wockhardt gets DCGI nod for two novel antibiotic drugs

Ø CCI to probe JSW Paints’ complaint against Asian Paints

Ø ‘Centre is taking steps to revive consumption, growth’

Ø Airtel, Vodafone Idea mull curative plea to stall ₹1.47 lk cr dues on telcos

Ø Iran expects India to source its oil, devise new barter trade: Iranian minister

Ø Vodafone Idea loses 36 million subscribers in November: TRAI

Ø After a turbulent Q2, IndiGo and SpiceJet are poised to take off in Q3

Ø FinMin exempts mutual funds from being categorized as foreign investors

Ø India not contemplating any import curbs for Malaysia, Turkey: Piyush Goyal

Ø TRAI to telcos: Deposit unclaimed subscriber money to telecom consumer education fund

Ø GAIL board approves raising Rs 1,500 crore in debt

Ø Yes Bank acquires 10.25 per cent stake in Sical Logistics

Ø GMR Infra to sell 49 pc stake in airport business to Tata Group entity

Ø IOC to decide on bidding for BPCL after Govt. lays out rules: Chairman

Ø SEBI proposes stricter norms to rein in investment advisors

Ø Lack of transparency in China’s Belt and Road projects: EU firms

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👉🏻HC clears confusion over contentious issue of composite supply under GST

(The Kerala high court has tried to clear the air over the contentious issue of composite supplies under the GST which experts say may become guiding principles to decide cases in litigation.

👇🏻 👇🏻 👇🏻

http://bit.ly/2TkyZL4

👉🏻Budget may make faking input tax non-bailable crime for buyers too

(Govt is likely to make fraudulent claims for input tax credit a non-bailable offence in the hands of recipients of goods and services in the February 1 budget by tightening the GST law)

👇🏻 👇🏻 👇🏻

http://bit.ly/35ZEa5X

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Kerala high court has tried to clear the air over the contentious issue of composite supplies under the Goods and Services Tax (GST) which experts say may become guiding principles to decide cases in litigation. If more than one good or service are supplied by a company, these could be considered composite or mixed under the GST system.

Ministry of Corporate Affairs is set to notify new rules for the treatment of third party assets of a stressed financial company under the Insolvency and Bankruptcy Code.

Government appointed Michael Debaprata Patra as the deputy governor of the Reserve Bank of India (RBI). The appointment of Patra, who is currently an executive director at the central bank, comes nearly six months after former deputy governor Viral Acharya’s pre-mature resignation.

Securities Appellate Tribunal (SAT) on January 14 upheld the fine of over Rs 2,423 crore levied by markets regulator SEBI on four directors of PACL Ltd for illegal fund mobilisation through various schemes from public.

Bombay High Court has appointed a committee for speedy disposal of assets of Housing Development and Infrastructure Ltd.—a borrower to crisis-hit Punjab and Maharashtra Cooperative Bank. The three-member committee will determine how proceeds from the sale of the properties will be used.

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👉🏻SEBI comes out with disclosure format for listed debt securities

(In cases where the listed entity is not required to have an audit committee, the word 'audit committee' needs to be replaced with board of directors)

👇🏻 👇🏻 👇🏻

http://bit.ly/2R2jDJB

👉🏻High Court Decision on Communication or NOC from Previous Auditor

(Delhi High Court Decision on Communication or NOC from Previous Auditor explained by CA.(Adv) S.S.Sharma.)

👇🏻 👇🏻 👇🏻

https://youtu.be/p5msbZ_RZuI

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👉A liquidator will have to deposit unclaimed dividends and undistributed proceeds in a separate account before seeking dissolution of a corporate debtor under the voluntary liquidation process, according to the IBBI. The Insolvency and Bankruptcy Board of India (IBBI) has notified changes to the voluntary liquidation process regulations.

With the amendments, a liquidator has to deposit unclaimed dividends and undistributed proceeds in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account before submission of an application for dissolution of the corporate person, a release said on Thursday.

The amendments also provide a process for a stakeholder to seek withdrawal from the Corporate Voluntary Liquidation Account

👉 There is a fresh twist to the resolution of Odisha Slurry Pipeline Infrastructure (OSPIL).ArcelorMittal’s resolution plan approved by the committee of creditors (CoC) has been challenged by the unsuccessful resolution applicant, Thriveni Earthmovers as well as Srei Infrastructure Finance, a lender.

👉Promoters or related parties disqualified from taking part in the insolvency resolution will now be debarred from participating in the liquidation process, according to a notification issued by the Insolvency and Bankruptcy Board of India (IBBI) on Tuesday.

Such persons will also not be eligible to enter into any settlement or arrangement with the creditors of the insolvent company under Section 230 of the Companies Act, the IBBI has clarified. The notification for the Liquidation Process (Amendment) Regulations, 2020, comes into effect from January 6.

Thursday, 16 January 2020

16 January 2020 News and Updates

Corporate Snippets on Jan 16

Ø Wipro Q3 results: Profit drops 3% to Rs 2,463 crore

Ø No interim relief to broadcasters in tariff order case

Ø SAT upholds SEBI's Rs 2,423 cr fine on PACL directors

Ø SBI cuts long-term FD interest rates by 15 bps

Ø US removes currency manipulator label on China

Ø BSE to offer incentives to boost crude oil trading

Ø Tatas arranging Rs 14,000 crore to clear telecom arm's outstanding AGR dues

Ø India's annual electricity demand grows at slowest pace in 6 years

Ø RBI ranked sixth among central banks in buying gold abroad

Ø Real estate sector sentiments revive to optimistic zone in Q3: Report

Ø Bandhan Bank's net profit more than doubles to Rs 731 crore in Q3

Ø FMCG stocks lose sheen, valuation premium declines to 11-year low

Ø Over-regulation is killing the auto sector: Rajiv Bajaj

Ø BSNL looking to launch 4G services by March 1

Ø IndusInd Bank Q3 profit rises 32% to ₹1,300 crore

Ø India-China trade dips by nearly $3 billion in 2019

Ø Fitch gives ‘BB’ rating to Glenmark’s proposed US dollar-denominated unsecured notes

Ø Jio declared highest bidder for Reliance Infratel, and UVARC for RCom, RTL

Ø Yes Bank to seek shareholders’ nod to raise ₹10,000 crore

Ø Canara Bank calls off divestment process of entire stake in Can Fin Homes

Ø Rupee falls against US dollar on losses in Asian currencies

Ø Yes Bank acquires 30% stake in Reliance Power arm

Ø E-commerce giant Amazon pumps in over Rs 1,700 cr into India units

Ø Govt. needs to infuse Rs 1.5 – Rs 2 lakh crore to pump economy, arrest slowdown, says FICCI

Ø California wants partnership with India to create inclusive economic growth: US official

Ø Indian Oil Corp seeks six LNG cargoes for April-Dec delivery: sources

Ø Govt. appoints Michael Patra as RBI Deputy Governor

Ø Bajaj Auto launches Chetak electric scooter; bookings start from Jan 15

Ø WPI inflation surges to 2.59 per cent in December

Ø Trade deficit narrows to $11.25 billion in December

Ø Synergy, Delhi-based firm show interest in Jet Airways

Ø Budget Session of Parliament to commence on Jan 31

Ø Airtel, Jio, Voda Idea submit applications for 5G trials

Ø Government saves Rs 350 crore fake IGST refund

Ø Jio and 6 other firms to list CPs worth Rs 8,812 cr

Ø Government plans new law to safeguard foreign investment, says report

Ø Axis Bank moves SAT seeking status quo against SEBI order on Karvy

Ø India's exports dip for fifth straight month in Dec, trade deficit narrows

Ø Bank employee unions to go on nationwide strike on Jan 31, Feb 1

Ø Birla group firms tapping international market to raise $3.1 billion

Ø Future Retail raises $500 million from international bond market

Ø L&T Construction bags orders for various segments

Ø McDonald’s India signs partnership with Zomato for food delivery in North and East region

Ø Alembic gets USFDA nod for capsules used to treat spasticity

Ø Mindtree Q3 net profit up 3 per cent to Rs 197 crore

Ø OPEC expects lower demand for its oil as US hits new milestone

Ø Oxford University to raise $1 billion, selling bonds maturing in 100-year from now

Ø IMD to announce new dates for normal onset, withdrawal of monsoon this April

Ø Newly appointed deputy governor to look after RBI's monetary policy division

Ø No action against top bankers for alleged frauds before CVC panel's nod

Ø China’s trade with BRI countries surges to $1.34 trillion in 2019

Ø Centre begins commercial coal auction process

Ø PMC Bank scam: Bombay HC sets up panel for sale of HDIL assets

Ø Government will put restrictions on imports of products under ‘others’ category: Piyush Goyal

Ø Airtel special committee clears issue price of USD 3 billion fund raising

Ø Amazon chief says to invest USD 1 bn in digitizing small businesses in India

Ø Wipro reports 2.2 pc dip in Q3 net income at Rs 2,460 crore

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Ministry of Corporate Affairs is set to notify new rules for the treatment of third party assets of a stressed financial company under the Insolvency and Bankruptcy Code.

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👉Register for Exclusive Sixth Weekend Batch of Spanish Language (60 hours) for ICAI Members and Students at New Delhi – 1st February, 2020. https://www.icai.org/new_post.html?post_id=16233&c_id=240

👉Budget 2020 should cut income tax slabs, offer tax breaks to boost investment: EY

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Friday, 31 January 2020

Tuesday, 28 January 2020

Friday, 24 January 2020

Thursday, 23 January 2020

Monday, 20 January 2020

Sunday, 19 January 2020

Thursday, 16 January 2020