18th February 2K20
Economic Times
Ø Govt scraps tenders worth Rs 30k-cr to push Make in India
Ø Payment of AGR dues to cut fiscal deficit to 3.5%
Ø Tata, Voda Idea make part payment towards dues
Ø RBI's 3-year repo auction sees hefty demand
Ø No proposal to merge LICHFL with any other entity: LIC
Ø Moody's cuts India growth projection to 5.4% for 2020
Business Standard
Ø JSW Steel gets NCLAT nod to acquire Bhushan Power
Ø India's poverty rate slipped to 6.3% in FY18, says Surjit Bhalla
Ø Decline in global merchandise trade volumes to continue for now: WTO
Ø RBI's maiden long-term repo operation receives Rs 1.94-trillion bids
Ø Sebi board allows non-bank custodians to manage gold products
Ø Sebi to tighten eligibility norms for investment advisers, cap fees
Business Line
Ø Paper and paper board imports jump 16% in last three quarter
Ø Godrej Properties buys 27-acre land in Delhi for ₹1,359 cr from Railways
Ø JSW Energy acquires GMR Kamalanga Energy for ₹5,321 crore
Ø GAIL to move TDSAT against AGR dues demanded by DoT: Report
Ø CCI approves ZF’s purchase of 100% stake in WABCO
Mint
Ø Nirmala Sitharaman says fiscal deficit figures absolutely realistic
Ø Tata Teleservices pays ₹2,197 crore worth of license fees
Ø 15th Finance Commission sets up expert group to boost farm exports
Ø Mistry moves fresh petition at SC seeking directorship at Tata Sons
Ø Vodafone Idea to pay ₹1,000 cr more to DoT before end of week towards AGR dues
Financial Express
Ø India becomes 5th largest economy, overtakes UK, France: Report
Ø Piyush Goyal proposes to discontinue export incentives for services exports under SEIS
Ø Domestic air passenger traffic increased by 2.2% in January: DGCA
Ø General Motors to exit three countries over low ROI
Deccan Chronicle
Ø Airtel coughs up Rs 10K crore towards AGR dues
Ø Covid-19 could hamper global economic growth: IMF
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# ICAI: The Council has Decided to Extend the Cut-Off Date for CAG and MEF Empanelment for 2020-21 till 29th February, 2020
https://www.icai.org/new_post.html?post_id=16311&c_id=240
# MCA has amended Companies (Incorporation) Rules, 2014 and new rule will be effective from 15/02/2020 called Companies (incorporation) Amendment Rules, 2020.
SPICe+ would save as many procedures, time and cost for Starting a Business in India and would be applicable for all new company incorporation w.e.f 15th February 2020
# CPC-TDS Instruction No. 1/2020 dated January-24-2020: - A Taxpayer can now apply for a Lower/or NIL TDS Deduction Order/Certificate u/s 197 of the Act for the Financial Year 2020-2021 (relevant to the Assessment Year 2021-2022) well in advance at any time on or after February-28-2020.
# Madras High Court uphelds Constitutional Validity of Sec 234F of Income Tax Act,1961:
K.Nirai Mathi Azhagan Vs. Union of India (January-2020)
# GST 20.02.2020 | 22.02.2020 | 24.02.2020* are the due dates to file GSTR-3B Returns for the month of January, 2020.
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Application for extension of the time period u/sn 12 can be filed after expiry of 180 days
A question arises whether the application for extension of the time period under section 12 can be filed after expiry of 180 days of CIRP (i.e. applications were filed after the completion of the 180 day period). NCLAT in the matter of Quantum Limited Vs. Indus Finance Corporation Limited held that the provision does not stipulate that such application is to be filed before the Adjudicating Authority within 180 days. If within 180 days including the last day i.e. 180th day, a resolution is passed by the committee of creditors by a majority vote of 75%(now 66%) of the voting shares, instructing the resolution professional to file an application for extension of period in such case, in the interest of justice and to ensure that the resolution process is completed following all the procedures time should be allowed by the Adjudicating Authority who is empowered to extend such period up to 90 days beyond 180th day.
https://ibclaw.in/analysis-on-time-limit-under-section-12-of-the-code-for-completion-of-cirp/
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New Amendment in IBC No backdoor entry of ex-promoters under liquidation
Section 29A of IBC and Section 230 of Companies Act were contradictory in spirit. Therefore, Insolvency and Bankruptcy Board of India(“IBBI”) tried to plug in this loop hole by amending the Liquidation Process Regulations, 2016. The amendment clarifies that a person, who is not eligible according to the Code to submit a resolution plan for insolvency resolution of the corporate debtor under Section 29A, shall not be a party in any manner to a compromise or arrangement of the corporate debtor under Section 230 of the Companies Act, 2013. It also clarifies that a secured creditor cannot sell or transfer an asset, which is subject to security interest, to any person, who is not eligible under the Code to submit a resolution plan for insolvency resolution of the corporate debtor.
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“Independent Directors have even greater responsibility than the normal directors”
Because, they are not only responsible for what all the other directors are responsible for, they also have an additional obligation of ensuring that all the other directors do what they are obliged to do for the sustainable growth of business.
Today, the GOI has taken a very important initiative in the direction of regulating even the Independent Directors in this country.
MCA has started registration of people who wish to offer their expertise and experience as independent directors on the Boards of listed companies. Of course, these people will also have to pass a qualifying Exam.
This in my view, is a very important initiative for implementation of good Corporate Governance in India. It’s truly going to be a game changer, provided there is no mess up in its implementation.
*It’s just a coincident that today, I have been appointed as an Independent Director on the Board of a soon to be listed public company. *
Am really looking forward to it. Wish to add tremendous value to this company in my new role and set very high standards and benchmark in Corporate Governance.
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IT amendment went unnoticed effective from 1st April 2020
Indore: Union finance minister Nirmala Sitharaman has raised alarm bells for those who travel abroad on tour package booked by others, which is a common trend to oblige senior officials in government and private sector in the country.
From April 1, 2020, every foreign traveller will have to pay 5% (PAN holder) and 10% (non-PAN holder) TCS (Tax Collection at Source) on total amount of tour package. By paying TCS, every person will come on the radar of income tax department, which will be able to ascertain his or her income through their income tax returns (ITR).
At present, there is a provision in ITR to mention the passport number in prescribed column. But not many tax payers take it seriously. Even the tax consultants also don’t press their clients to fill the passport number if they visit abroad in the financial year. A large number of people go abroad on leisure trip several times in a year.
Also Read: Budget 2020: At least 80% of taxpayers will move to new scheme, says Finance Ministry
Obviously, they use black money while paying tour package bill. In other cases, high ranking government and private sector officials make foreign tours with family for which other person or people make payment. This is because the latter seek undue favours from officials. And to oblige them, they finance overseas trips of officials, which is a bribe of sorts.
For the first time, such people will come under scrutiny. In the 2020-2021 union budget, Sitharaman has made provision to impose TCS on every foreign tour package bill amount. It means every foreign visitor whether he is an income tax payer or not, has to pay tax. However, there is a provision that if a person whose annual income is under threshold limit (under Rs 5 lakh) visits foreign country, then he will be eligible for TCS refund.
Analysing the provision, tax consultants say income tax department will be able to cross check the standard of living of an Indian who travels abroad through his ITR, which will reveal the actual income and his extravagance.
It will stop black money in overseas travel
Now, foreign travellers will have to pay 5% TCS on total travel package bill. This measure will bring those people on income tax department radar who frequently travel abroad and hide it in their ITR. Through data analytics, department will be able to assess actual income of foreign traveller. This is a challenging provision for government employees and their family members, doctors etc who visit abroad on sponsorship.
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Pointers
Every foreign traveller has to pay 5% and 10% tax collection at sources (TCS) on total amount of tour package
The practice of booking tour package by person who wishes to oblige influential people will stop.
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income tax (I-T) department has notified forms for companies to avail the reduced corporate tax rates that were announced in September last year. CBDT has notified Forms 10-IC and 10-ID for existing companies that want to avail lower I-T rate and new manufacturing firms, respectively.
CBDT To maximise revenue mobilisation via the direct tax ‘Vivad Se Vishwas’ scheme has made tax officers’ performance under the scheme a vital criterion for their annual appraisals for 2019-20 and future postings. “Details of the number of disputed cases, amount involved in disputed cases as well the number of cases resolved and the amount collected under the scheme may be reported in the self-appraisal.
GST Network CEO said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes. “E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries.
Supreme Court has observed that an arbitration clause in an agreement which is required to be duly stamped, was not sufficiently stamped, cannot be acted upon by the Court.
For the purposes of Empanelment in the C&AG Panel prepared by office of C&AG and Bank Branch Auditors’ Panel prepared by ICAI (for which Constitution Certificates as on 1st January, 2020 are issued every year), no condonation of delay in submission of Form 18 beyond 29th Feb., 2020 for the preceding the financial year under audit will be done by ICAI.
APPLICATION FOR EMPANELMENT OF CONCURRENT AUDITORS IN UNION BANK OF INDIA FOR THE FY 2020-21 Are invited by Bank from CA Firms.
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👉🏻MCA seeks views on change in laws to hold Auditors more accountable
(MCA has sought views from other govtt departments, regulatory agencies, and others in general on how to amend the existing laws that would enhance the independence of auditing firm and make sure they are also held accountable for any misdeeds)
👇🏻 👇🏻 👇🏻
http://bit.ly/39Gvx25
👉🏻CBIC starts capturing district-wise data or origin of export goods
(CBIC has now made it mandatory that every GST registered importer and exporter must declare their GSTIN on the import and export declarations)
👇🏻 👇🏻 👇🏻
http://bit.ly/2P1d0pB
👉🏻CBDT notifies Income Tax Form 10-IC and 10-ID for Lower Corporate Taxes
(Income Tax Form 10-IC and 10-ID for Lower Corporate Taxes explained by CA. Shivangi Mittal)
👇🏻 👇🏻 👇🏻
http://bit.ly/39FF2yH
👉🏻Filing of forms by IRP, RP or Liquidator in Registry (MCA-21)
(The IRP/RP/Liquidator would have to first file the NCLT order approving him as the IRP/RP/Liquidator in form INC-28 on the MCA21 portal by selecting the option “Others” at serial no. 5(a)(i) from the drop down menu in the form)
👇🏻 👇🏻 👇🏻
http://bit.ly/38CIkCD
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👉 Empanelment of CA Firms as Technical Reviewers for National Financial Reporting Authority (NFRA). - (17-02-2020)
https://resource.cdn.icai.org/58384icaihrd47592.pdf
👉 Filing of forms in the Registry (MCA-21) by the Insolvency Professional (Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator) appointed under Insolvency Bankruptcy Code, 2016 (IBC, 2016)..Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/Circular_17022020.pdf
👉 Finance Minister addresses the Central Board of Directors of Reserve Bank of India
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49408
👉 DMart’s Navil Noronha wealthiest CEO in India
https://economictimes.indiatimes.com/markets/stocks/news/dmarts-noronha-wealthiest-ceo-in-india/articleshow/74183605.cms
👉 How investing in NPS can help you save tax
https://economictimes.indiatimes.com/wealth/tax/how-investing-in-nps-can-help-you-save-tax/articleshow/73757478.cms
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👉 NCLT reserve order on resolution plan of Aircel - The dedicated bankruptcy court has reserved for order the resolution plan for Aircel, whose proposed buyer is asset reconstruction firm UV Asset Reconstruction Company Ltd. (UVARCL)
According to the resolution plan for bankrupt Aircel, the total realisation for financial creditors will be Rs 6,600 crore, against claims of about Rs 20,000 crore.
In the resolution plan mentioned in National Company Law Tribunal ( NCLT) on Monday, this realisation will happen when UVARCL manages to sell Aircel’s assets. There will be no upfront payment made to the lenders but they will get zero optionally convertible debentures spread over a period of 5 years.
If UVARCL fails to monetise the assets, then Aircel’s lenders get 76% of equity in telco.
👉 Pass order on plea within 2 months: NCLAT to NCLT on GE Triveni issues- The National Compamy Law Appellate Tribunal (NCLAT) on Monday asked the Bengaluru bench of NCLT to make a decision on the arbitration plea, preferably within two months, in the ongoing dispute between the JV partners of GE Triveni Ltd.
The Bengaluru bench of the National Company Law Tribunal (NCLT) had on September 27, 2019 issued notices over the petition filed under Section 45 of the Arbitration & Conciliation Act, 1996 by two service providers seeking arbitration in the issue.
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