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Friday, 28 February 2020

28 February 2020 News and Updates

28th February 2K20

Economic Times
 
Ø  Jio doesn't have a single Chinese part: Ambani to Trump
Ø  Coronavirus outbreak could impact India Inc: Report
Ø  India's gas demand at inflection point, to rise by 66%
Ø  DCC meet likely on Friday to discuss AGR relief: Source
Ø  Jet lenders to seek fresh Expression of Interest
Ø  Voda Idea wants 7-8 times hike in mobile data tariffs
Ø  Tata Group comes under CCI lens, again

Business Standard

Ø  India scores better than US in regulatory action by USFDA in 2019
Ø  CRR-exempt loans: Deduction only on incremental lending, clarifies RBI
Ø  Ind-Ra lowers outlook on domestic steel sector from stable to negative
Ø  PFRDA chief mulls separate trust to manage private sector pension funds
Ø  Sebi wants MFs to be agile in stress events, warns industry on mis-selling

Business Line
 
Ø  Commerce Ministry assessing impact on pharma ingredient supplies from China
Ø  HPCL buys 17.28% stake in Petronet MHB for Rs 185.38 cr
Ø  JSW Steel takeover of BPSL to be delayed as the case moves to SC
Ø  Australia keen to partner India in energy and resources sector
Ø  India among top suppliers of pharma drugs used in trafficking: UN report
Ø  Pidilite Industries buy majority stake in Tenax India Stone Products for ₹80 crore
 
Mint

Ø  PNB fraud case: Sebi slaps penalty of ₹5 crore on Mehul Choksi, others
Ø  IndiGo launches co-branded credit card Ka-Ching with HDFC Bank, MasterCard
Ø  Bank credit growth slows to 6.3% for the fortnight ended 14 February
Ø  IndiaMART becomes first B2B marketplace in India to register 10 crore users
Ø  Hindustan Unilever, Nestle India top access to nutrition rankings

Financial Express
 
Ø  Shared economy in India to be $2 billion industry by 2020-end: Maple Capital
Ø  Coronavirus may hit global GDP by over $250 billion: Industry body
Ø  IOC invests Rs 3,000 crore to upgrade Haldia refinery for BS-VI fuel
Ø  UK court extends Nirav Modi remand to March 24 in PNB fraud case
 
Deccan Chronicle

Ø  India's GDP Seen Growing At 4.7% In December Quarter, With Virus Impact To Come
Ø  India-US Relationship Extraordinary; Progress Made In Bilateral Ties, Says Donald Trump
Ø  India Fines Jewellery Firm Gitanjali Gems For Withholding Information In $2 Billion Bank Fraud
Ø  HFCL Selects Audiocodes For Major Govt Telecom Network
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👉 NCLT clears GSK-HUL merger, paves way for GSK Plc’s exit through huge block deal - The National Company Law Tribunal’s (NCLT) Chandigarh branch on Wednesday cleared the scheme of merger between consumer goods giant GlaxoSmithKline Consumer Healthcare (GSKCH) and Hindustan Unilever. This clears the decks for GSK Plc to cash out its 5.7 per cent stake in Hindustan Unilever making it potentially the largest block trade in India.

Officials aware of the developments say Morgan Stanley is readying the share sale process, ET had reported on December 16.

👉 SC restores NCLT order asking Jaiprakash Associates to return pledged land to group firm JIL - The Supreme Court Wednesday restored the National Company Law Tribunal (NCLT) order directing Jaiprakash Associates Ltd (JAL) to return 758 acres of land, which was pledged with several banks, to its debt-laden subsidiary firm Jaypee Infratech Ltd (JIL). The NCLAT had allowed the pleas of all banks as well as JAL and held that the transactions were genuine and the allegation of undervaluation was not justified.
The NCLAT had quashed the verdict of NCLT, Allahabad, which on May 16, 2018 had held that the mortgage of properties of JIL, which was facing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), in favour of the lending financial institutions of holding firm JAL cannot be countenanced.


Thursday, 27 February 2020

27 February 2020 News and Updates

27th February 2K20

Economic Times
 
Ø  Govt closely monitoring coronavirus impact on economy: FM Sitharaman
Ø  Sebi allows investors to directly transact in mutual fund units on bourses
Ø  India's oldest port plans to monetise its land bank
Ø  Investors low on confidence on 5G, globally: Study
Ø  Jet creditors to ask court to extend liquidation deadline
Ø  Bharti Infratel awaits SC verdict for Indus merger

Business Standard
 
Ø  India to go slow on trade deal with US, both sides to work on wider FTA
Ø  GDP growth to stay flat at 4.5% in October-December, say SBI economists
Ø  Global recession likely if COVID-19 becomes pandemic: Moody's Analytics
Ø  AGR dues: Voda Idea seeks relief; asks DoT for Rs 8,000 crore GST refund
Ø  USFDA issues warning letter to Cipla for Goa manufacturing facility

Business Line
 
Ø  Car sales to stabilise in 2020 due to stimulus measures, discounts: Moody’s
Ø  India faces WTO heat to exempt food for humanitarian needs from export curbs
Ø  CCEA approves National Mission for Technical Textiles with allocation of ₹1,480 crore
Ø  Government to stick to April 1 deadline for amalgamation of 10 PSBs
Ø  Apollo Tyres raises ₹1,080 cr through Warburg Pincus
 
Mint

Ø  Banks to link floating rate loans to medium enterprises with external benchmarks
Ø  Adani Wilmar eyes value-added staples, ready-to-cook food segment
Ø  PFRDA plans alternative to compulsory annuity in NPS
Ø  LIC’s IPO to benefit insurance industry, says Fitch Ratings
Ø  GMR receives ₹5,248 crore from Groupe ADP
Ø  India’s retail market to touch $1.1-1.3 trillion by 2025: BCG

Financial Express

Ø  Crisil Report: Credit growth expected to pick up in next fiscal
Ø  Reliance Jio user base rising rapidly but Vodafone Idea still the telco king in rural India
Ø  Microfinance industry growth slows to 24.22% in Q3
Ø  GE Renewable bags order to supply turbines for wind farm in Gujarat
 
Deccan Chronicle

Ø  Asian shares slide on fears virus will stunt global economy
Ø  Gulf states cut Iran links m rise in Covid-19 cases
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👉🏻RBI issues clarification on CRR Calculation
(RBI issued further clarifications on the recently announced relaxation on cash reserve ratio (CRR) calculations for incremental credit extended for automobiles) 
👇🏻 👇🏻 👇🏻
http://bit.ly/2T1ZOTw

👉🏻SEBI gives direct access to stock exchanges for mutual fund investments
(SEBI has asked stock exchanges to allow investors to buy and sell mutual funds directly on their platforms)
👇🏻 👇🏻 👇🏻
http://bit.ly/2uySIwt 

👉🏻Ceiling on the No.of Audits can be done by Chartered Accountant | Statutory Audits | Tax Audits
How many Audits a Chartered Accountant in Practice can do?
- Statutory Audit under Companies Act.
- Tax Audit under Income Tax Act.
👇🏻 👇🏻 👇🏻
http://bit.ly/2TpAdDk

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👉 Chandigarh NCLT approves Hindustan Unilever, GSK Consumer Healthcare merger - FMCG major Hindustan Unilever Ltd (HUL) on Wednesday said the Chandigarh bench of National Company Law Tribunal (NCLT) has approved the scheme of amalgamation for the merger of the company and GlaxoSmithKline Consumer Healthcare (GSKCH). 
On December 3, 2018, Anglo-Dutch FMCG giant Unilever had announced the acquisition of health food portfolio, including popular brands Horlicks and Boost, from GlaxoSmithKline in India and over 20 other markets for 3.1 billion pounds (about 27,750 crore).
👉 DHFL dues: Fixed deposit holders set to move NCLT - The fixed deposit (FD) holders of Dewan Housing Finance (DHFL) will move the National Company Law Tribunal (NCLT), Mumbai
In a CoC meeting held on February 20, the authorised representative of FD holders raised the demand for payment to FD holders, especially in case of medical emergencies, and proposed that the evaluation matrix should include a statement as to how a bidder caters to fixed deposit holders. However, other than FD holders, CoC was of the view that preference could be given to one class of financial creditors.

Wednesday, 26 February 2020

26 February 2020 News and Updates

26th February 2K20

Economic Times
 
Ø  Bandhan Bank gets relief from the RBI
Ø  India-US ink three MoUs, elevate bilateral ties 
Ø  India's import of US oil jumps 10-fold to 2,50,000 bpd
Ø  Slowdown in bank lending may bottom out soon: Crisil
Ø  12.67 lakh new jobs created in Dec: ESIC payroll data
Ø  RBI MPC may consider virus impact on India: Report
Ø  RBI announces two LTROs on March 2 and 9

Business Standard
 
Ø  FPIs from Mauritius eligible for registration, after more scrutiny: Sebi
Ø  NFRA to serve notice on Deloitte in IL&FS Financial Services case
Ø  Sebi mulls larger role for debenture trustees, proposes new norms
Ø  SBI Cards & Payment IPO price band fixed at Rs 750-755, opens on March 2
Ø  Moody's downgrades corporate family rating of HPCL-Mittal Energy to 'Ba2'

Business Line
 
Ø  Oil refiners push for extra pricing for supplying BS-VI fuel
Ø  Navin Fluorine bags $410-million global contract
Ø  SC upholds NCLT order in United Seamless Tubulaar case
Ø  ‘Recalibrate NFE rules to draw investments to SEZ’
Ø  Sugar mills yet to clear ₹2,400-cr dues to farmers
 
Mint

Ø  Tariff hike by telcos results in wireless subscribers' exodus: Trai Dec report
Ø  Govt implements EPFO's decision to restore pension commutation
Ø  Retail opportunities at transport hubs may grow to $21.6 billion by 2030: Report
Ø  Bank of Baroda moves Supreme Court against Calcutta HC order on bank guarantee

Financial Express
 
Ø  HDFC Bank aims to be dominant, go-to bank for startups, says official
Ø  Castor seed output likely to grow by 88%
Ø  Fitch revises outlook on JSW Steel’s long-term IDR to ‘negative’
 
Deccan Chronicle

Ø  India, US have finalised defence deals worth USD 3 billion: Trump on talks with Modi
Ø  Govt may extend deadline to bid for Air India to March 17
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CARO reporting to be done by auditor has been amended..
Important changes are as follows: 

1. Reporting on revaluation of Property, Plant and Equipments by company
2. Reporting of proceedings under the Benami Transactions (Prohibition) Act, 1988.
3. Reporting if the stock statements filed with banks are in line with books of accounts, if company was sanctioned working capital limits in excess of five crore rupees or more from banks or financial institutions.
4. Reporting of investments in or  providing of any guarantee or security or granting any loans or advances. 
5. Loans overdue for more than 90 days, evergreening of loans, reporting on any loan default, etc. 
6. Reporting of compliances with RBI directives and the provisions the Companies Act with respect to deemed deposits.
7. Reporting with respect to transactions not recorded in the books of account but now surrendered or disclosed as income in the income tax proceedings.
8. Reporting on treatment by auditor of whistle-blower complaints received during the year by the company 
9. Reporting on internal audit system
10. Reporting on cash losses
11. Reporting on resignation of the statutory auditors
12. Reporting on uncertainty of company capable of meeting its liabilities
13. Reporting transfer of unspent CSR amount to Fund specified in Schedule VII
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👉 Number of insolvency cases surged 30.29 per cent between October-December, 2019 - Nearly four years back when the Insolvency and Bankruptcy Code (IBC) came into effect, the perception was that the corporate defaults would come down drastically as the law enforces separation of the promoters from their bankrupt businesses. 
Of the 3,312 companies admitted for insolvency resolution, the process is going on in 1,961 cases. The resolution process ended in 40.8 per cent of companies. In 17.2 per cent of companies, the resolution plan has been approved or went for review or the company has withdrawn the insolvency petition under Section 12 A. The liquidation process has started in 23.6 per cent (780 companies) of bankrupt companies.

👉 Bankruptcy code fetches creditors peanuts, get only Rs 96 cr out of Rs 9,900 cr - The closure of cases through liquidation under the Insolvency and Bankruptcy Code (IBC) has seen a massive value erosion of companies. This should worry the policymakers as large number of insolvency cases are being closed through the liquidation process.
According to data collated by the Insolvency and Bankruptcy Board of India (IBBI), of the 51 liquidation cases in which final reports have been submitted till 31 December 2019, only Rs 96 crore were recovered against Rs 9,870 crore claims admitted. Of the realised amount, Rs 92 crore has been disbursed among the creditors.
Of the 551 ongoing liquidation cases, whose data was available with the IBBI, the total claim amount is Rs 4.47 lakh crore, while the liquidation value is just Rs 21,147 crore.
  Under IBC, if a resolution plan is not approved by the committee of creditors within the stipulated 270 days, the National Company Law Tribunal (NCLT) can order liquidation of the defaulting company. The liquidation process had to be completed two years earlier, but now it has been shortened to 12 months.

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👉🏻SEBI bans transfer of clients’ securities to broker accounts
(Markets regulator Sebi on banned transfer of clients' securities to demat accounts of trading and clearing members)
👇🏻 👇🏻 👇🏻
http://bit.ly/2VivsOm

👉🏻Companies (Auditor's Report) Order 2020
(Revised CARO 2020 Notified today by MCA with particular clause of Qualified Reporting by Auditors with Specific comments) 
👇🏻 👇🏻 👇🏻
http://bit.ly/3calTHi

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Income Tax : About 70-80% of the direct tax disputes – nearly 5 lakh involving tax demands of Rs 9.5 lakh crore at last count and piling up – may get resolved in one stroke, as the government has decided to move the Supreme Court, pleading for definitive rulings on 20 issues identified by the tax department as being at the heart of these disputes. 

GSTR 9 and 9C has opened for few but has following errors: 2A 3B and GSTR 1 summary not being fetched,  ONly table 4 5 6 and 9 have data rest all are showing errors, Trans 1 credit is reappearing , No effect of table 10 11 12 13 of 17-18 in 18-19, Utillity of 18-19 awaited.

MCA: Revised CARO 2020 Notified with particular clause of Qualified Reporting by Auditors with Specific comments...

MCA revises the effective date of implementation of the revised Incorporation procedure through the Companies (Incorporation) Amendment Rules, 2020 to 23rd February, 2020. 

Final Bank Branch Auditors Panel for the year 2019-20 has been hosted on https://app.meficai.org/panel. Please input your MEF code or your Firm Registration Number (FRN) to view the same.

Delhi High Court has held that the provision for filing written statements under section 8 of the Arbitration and Conciliation Act is governed by the law of limitation.
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👉 Live Webcast on MCA E- Form SPICEe+ - Compliance and other aspects on 26th February, 2020 from 4.00 pm – 6.00 pm by CL&CGC ICAI in association with MCA.
https://www.icai.org/new_event.html?event=5128

👉 Companies (Auditor's Report) Order, 2020Pdf(56 kB)
http://www.mca.gov.in/Ministry/pdf/Orders_25022020.pdf

👉 Empanelment of firms (Partnerships /Limited Liability Partnerships/Proprietary Concerns) of Practicing Chartered Accountants as Technical Reviewers(TRs)
http://www.mca.gov.in/Ministry/pdf/notices_11022020.pdf

👉 Banking Landscape in the 21st Century - Shri Shaktikanta Das, Governor, Reserve Bank of India - February 24, 2020 - at the Mint’s Annual Banking Conclave, 2020
https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1094

👉 RBI Working Paper No. 03/2020: Nowcasting Indian GDP growth using a Dynamic Factor Model
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49433

Thanks for reading

Tuesday, 25 February 2020

25 February 2020 News and Updates

25th February 2K20

Economic Times

Ø  DoT seeks Rs 7,608 crore from GAIL in dues for FY18
Ø  CCI orders detailed probe against Make My Trip, OYO
Ø  Govt extends time till Mar 6 for queries on AI sale
Ø  Bharti Infratel extends Indus merger deadline to Apr 24
Ø  India gets rare oil cheap as virus grips China
Ø  Fitch assigns 'BBB-' rating to REC notes
Ø  Telecom industry revenue rises 9% in Q3

Business Standard

Ø  India, US in discussion for a 'fantastic' trade agreement, says Trump
Ø  ITC, Godfrey Phillips India bet on flavours to burn illicit trade
Ø  Adani group joins race to buy Air India, plans to submit EoI by next month
Ø  Tech Mahindra to acquire US-based Zen3 Infosolutions for Rs 460 cr
Ø  Govt asks telcos to submit supporting documents on AGR self-assessment

Business Line

Ø  TCS, DLF seek govt nod to set up SEZs
Ø  CAG, govt officials hold talks to improve audit quality
Ø  Australia willing to consider bilateral FTA with India on the lines of RCEP
Ø  Indian Hotels Company achieves 50% of vision 2022 in 40% of allocated timex`
Ø  NTPC’s 74.5% stake-buy in THDC India gets nod of competition panel

Mint

Ø  RBI not as surprised as others on slowing GDP growth: Shaktikanta Das
Ø  ExxonMobil inks cooperation pact with IndianOil and Chart Industries
Ø  Aditya Birla Capital gets ₹1,000 cr foreign investment from Jomei
Ø  Sebi reviews margin framework for cash, derivatives segments
Ø  SoftBank leads $165 million capital boost for liquid biopsy firm Karius

Financial Express

Ø  GAIL to invest Rs 1.05 lakh crore to create infrastructure for gas-based economy
Ø  Government reallocates 6.5 lakh tonnes of unused sugar export quota
Ø  Air India sale: Govt extends time till March 6 for bidders to pose queries

Deccan Chronicle

Ø  Reserve Bank of India devises new plan for fin inclusion
Ø  US likely to be India’s top trading partner for 2nd year
Ø  China, India in talks over delay in granting permission to IAF flight: China
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Revised CARO 2020 Notified today with particular clause of Qualified Reporting by Auditors with Specific comments...
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👉 CBDT has notified Rule 114AAA u/s 139A(2)  for notifying date to make PAN inoperative if the same is not linked to Aadhar of the PAN holder up to 31.3.2020, except those who are not eligible to obtain Aadhar number and those who are exempted to link u/s 139AA(3).

👉 Invitation for Public Comments on the Draft Competition (Amendment) Bill, 2020. Last Date for Comments is March 06, 2020
http://feedapp.mca.gov.in/

👉 Advertisement for filling up post of PS in SFIO on deputation basis.Pdf(56 kB)
http://www.mca.gov.in/Ministry/pdf/SFIO_24022020.pdf

👉 Advertisement of filling up post of Deputy Director Investigation in SFIO on deputation basis. Pdf(1.2 MB)
http://www.mca.gov.in/Ministry/pdf/DDSFIO_24022020.pdf

👉 Final Bank Branch Auditors Panel for the Year 2019-20 has been hosted on MEF ICAI Website.  

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👉 RCom CoC to vote on resolution plan today - RCom was referred to the NCLT in May last year after an offer from Reliance Jio to buy its assets did not find favour with the creditors
The Committee of Creditors (CoC), tasked with finding buyers for the Anil Ambani-promoted Reliance Communications (RCom) and its two companies, will vote on a resolution plan today
the Resolution Professional (RP) will submit the final plan to the Mumbai Bench of the National Company Law Tribunal (NCLT) on March 5, 2020, sources close to development had told BusinessLine.
The consortium of 38 lenders is hoping to recover a substantial portion of the secured debt worth ₹33,000 crore from the process.

👉 Insolvency regulator moots rule change to replace Authorised Representative - 
Plans are also afoot to provide for simultaneous voting on two or more qualifying resolution plans
A class of creditors may soon be allowed to seek an alternate ‘Authorised Representative’ (AR) to represent their claims and deal with their grievances if they are not satisfied with the performance of their present AR.
The Insolvency and Bankruptcy Board of India (IBBI) proposes to amend the Corporate Insolvency Resolution Process (CIRP) to enable the creditors in a class to replace an AR with 66 per cent of voting power of the class, similar to the replacement of a Resolution Professional (RP) in a CIRP. The insolvency regulator has sought public comments on this through a discussion paper.
Currently, there is no explicit provision for the replacement of an AR once he/she is appointed by the Adjudicating Authority.
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👉🏻CAG holds meeting with Ministries to seek suggestions on Auditing
(This would help in understanding their concerns and would also supplement the risk-assessment exercise being undertaken by the CAG in the course of finalising the annual plan of audit activities)
👇🏻 👇🏻 👇🏻
http://bit.ly/38URevC
👉🏻Insolvency and Bankruptcy Code amendment | Effects of IBC Amendments on Home Buyers
(Amendment in Insolvency and Bankruptcy Code And Its effect on Home Buyers explained by CA.Charu Gupta)
👇🏻 👇🏻 👇🏻
http://bit.ly/2TaaxKA 

👉🏻Seminar on ICAI MOU with CPA Australia & CPA Canada at Jalandhar
(Jalandhar Branch of NIRC of ICAI is organising 3 CPE hrs Seminar on ICAI MoU with CPA Australia, CPA Canada, VISA Process, PR System, PNP and Code of Ethics on 26.02.2020 from 5 PM Onwars by CA. Vivek Khurana)
👇🏻 👇🏻 👇🏻
http://bit.ly/2SMpCD7

👉🏻EOI for Concurrent Audit for ABS and Investment at HPSCB
(EOI for Concurrent Auditor for ABS Investment and PASS sections at Himachal Pradesh State Co-operative Bank Limited) 
👇🏻 👇🏻 👇🏻
http://bit.ly/3c7i0Tx

👉🏻Final Bank Branch Auditors Panel for the Year 2019-20 has been hosted on MEF ICAI Website. Plz check
[25/02, 8:25 pm] +91 97171 56303: New (Toll-free) number of GST Portal Help Desk: 1800-103-4786 from 26th Feb 2020. 

The existing no. 0120-4888999 will be discontinued.

Thanks foe reading

Monday, 24 February 2020

24 February 2020 News and Updates

24th February 2K20

Economic Times
 
Ø  RBI reviewing monetary policy framework: Das
Ø  Officials meet to discuss relief for AGR-hit telcos
Ø  IndiGo in talks with Jetstar, Qantas for partnership
Ø  USFDA reopens investigation of Aurobindo’s facility
Ø  AGR test checks standard audit procedure: COAI
Ø  Pine Labs to deploy 1.5L Android POS devices by next yr

Business Standard
 
Ø  US surpasses China as India's biggest trading partner at $87.95 billion
Ø  Govt keen to sell stake in THDCIL, NEEPCO to NTPC this fiscal: Report
Ø  Natural gas prices in India likely to be cut by steep 25% from April
Ø  RCom creditors meet on Monday, may vote on Jio bid for Rs 4,700 cr assets
Ø  Adani's Rs 400 crore bid for posh Aditya Estates in Delhi gets NCLT nod

Business Line

Ø  Reliance Retail tops list of 50 fastest growing retailers globally
Ø  Coal-fired power falls 3% in April-Dec 2019
Ø  Ruias gear up for Essar 2.0 with investment-led growth plan
Ø  Coal imports at major ports drop 15% in April-January
Ø  Trade ‘protectionism’ to figure in US talks
 
Mint

Ø  G-20 finance chiefs on alert with world economic growth at risk
Ø  US and India to discuss 5G during Donald Trump's visit
Ø  IndianOil expected to ink agreement with ExxonMobil & Chart Industries
Ø  Central Bank of India plans to exit housing finance subsidiary
Ø  FPIs remain bullish on India, invest ₹23,102 crore in Feb so far

Financial Express

Ø  Coronavirus puts global economy recovery at risk, says IMF to G20
Ø  Court restrains firm from using trade secrets of popular e-commerce player
Ø  Crisil downgrades PNB Housing Finance’s NCDs, bank loans
Ø  RBI monitoring four banks’ efforts under PCA scheme
 
Deccan Chronicle

Ø  Reserve Bank of India devises new plan for fin inclusion
Ø  Telecom companies' owe Rs 22,600 crore as licence fees, rest is interest-cum-penalty
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CBDT has released a notification called the Income-tax (4th Amendment) Rules, 2020 which shall come into effect on April 1, 2020. The CBDT has introduced Forms 10-IC and Form 10-ID to opt for reduced tax rates as declared under Section 115BAA and Section 115BAB respectively for domestic companies.

Indirect tax department wants the software companies to value the global brand names and logos used in India, charge a fee on that and pay 18% goods and services tax (GST) on top of it, Industry trackers said currently there is no valuation mechanism for global technology companies in India. 

Foreign portfolio investors (FPIs) seem to like the Indian market compared to other emerging markets, going by the relatively high inflows for the second consecutive month. The impact of coronavirus on other emerging markets and buying in the primary markets are the main reasons for FPI inflows. 

MCA: The acquirer making an application should deposit at least 50 percent of the total consideration to be payable pursuant to takeover offer at the time of making an application to the NCLT.

MCA has notified the Companies (Registration Offices and Fees) Amendment Rules, 2020 which shall come into force on the date of their publication in the Official Gazette i.e 19-02-2020. 
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👉 Direct Taxes Committee of ICAI is organizing a LIVE Webcast on “Vivad Se Vishwas Bill 2020 - Issues & Challenges” on 25th February 2020 (Tuesday) from 3:00 p.m. to 5:00 p.m. at ICAI, HO, New Delhi.
https://www.icai.org/new_event.html?event=5127

👉 Empanelment of Concurrent Auditors through ... - Andhra Bank
https://customer.andhrabank.in/audit/
Last date for filing of Online Application is 29.02.2020.

👉 22.02.2020 – Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep

👉 24. 02.2020 Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi

👉 25-02-2020– PF Return filling for Jan 2020 (including pension & Insurance scheme forms.

👉 28-02-2020-GST– Details of Inward Supplies to be furnished by a person having UIN and claiming refund – GSTR 11 for January.
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CBDT has released a notification called the Income-tax (4th Amendment) Rules, 2020 which shall come into effect on April 1, 2020. The CBDT has introduced Forms 10-IC and Form 10-ID to opt for reduced tax rates as declared under Section 115BAA and Section 115BAB respectively for domestic companies.

Indirect tax department wants the software companies to value the global brand names and logos used in India, charge a fee on that and pay 18% goods and services tax (GST) on top of it, Industry trackers said currently there is no valuation mechanism for global technology companies in India. 

Foreign portfolio investors (FPIs) seem to like the Indian market compared to other emerging markets, going by the relatively high inflows for the second consecutive month. The impact of coronavirus on other emerging markets and buying in the primary markets are the main reasons for FPI inflows. 

MCA: The acquirer making an application should deposit at least 50 percent of the total consideration to be payable pursuant to takeover offer at the time of making an application to the NCLT.

MCA has notified the Companies (Registration Offices and Fees) Amendment Rules, 2020 which shall come into force on the date of their publication in the Official Gazette i.e 19-02-2020.
[24/02, 12:16 am] +91 91058 87186: *Guidelines for Selection of Cases for Scrutinty*

The CBDT has issued the parameters for manual selection of returns vide F.No.225/169/2019/ITA-11 dated 05th September, 2019 by which it has laid down the procedure and criteria for compulsory manual selection of returns/cases requiring scrutiny during the financial-year 2019-2020. It is also stated that cases are also being selected under CASS-2019 (Computer Aided Scrutiny Selection) on the basis of broad based selection filters and in a non-discretionary manner in two categories of Limited Scrutiny & Complete Scrutiny.

The details are as under:

(1) Guidelines for selection of cases for Income Tax scrutiny
1. Cases involving addition in an earlier assessment years(s) on a recurring issue of law or fact of following amounts: the

in excess of Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengalurti, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, while at other charges, quantum of such addition should exceed Rs. 10 lakhs
for transfer pricing cases, quantum of such addition should exceed Rs. 10 crore and where:

a) such an addition in assessment has become final as no further appeal was/has been filed; or

b) such an addition has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or

c) such an addition has been confirmed at 1st appeal stage in favour of revenue or subsequently and further appeal of assessee is pending.
 
2. All assessments pertaining to Survey under section 133A of the Income-tax Act, 1961 (‘Act’) should exclude following cases:

where books of accounts, documents etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year.

Further, please note that, where the assessee retracts from disclosure made during the Survey, such cases will not be covered by this exclusion.

3. Assessments in search and seizure cases to be made under section (s) 158B, 158BC, 15881), 153A & 153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.

4. Return filed in response to notice u/s 148 of the Act.
 
5. Cases where registration/approval under various sections of the Act such as 12A, 35(1)(ii)/(iii), 10(23C) etc. of the Act have not been granted or have been cancelled/withdrawn by the competent authority, yet the assessee has been claiming tax-exemption/deduction in the return. However, where such order of withdrawal of registration/approval has been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

6. Cases in respect of which specific and verifiable information pointing out tax-evasion is given by any Government Department/Authority. However, before selecting a case for scrutiny under this criterion, Assessing Officer shall take prior administrative approval from the concerned jurisdictional Pr. CIT/Pr.DIT/CIT/DIT.

(2)  *CASS (Computer Assisted Scrutiny Selection)*
Cases are also being selected under CASS 2019 on the basis of broad based selection filters and in a non-discretionary manner in two categories. Limited Scrutiny and complete Scrutiny in a centralized manner.

List of such cases is being separately intimated by Pr.DGJT (system) to the jurisdictional authorities for further action in these cases.

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CBDT has notified Rule 114AAA u/s 139A(2)  for notifying date to make PAN inoperative if the same is not linked to Aadhar of the PAN holder up to 31.3.2020, except those who are not eligible to obtain Aadhar number and those who are exempted to link u/s 139AA(3).

High Court Allows Filling of Tran-1 despite absence of any evidence of technical glitches.
Samrajyaa and Company Vs DCCE (Madras High Court).

Reserve Bank of India Governor Shaktikanta Das has said the central bank has already initiated discussions with some institutions and efforts are on for inclusion of government bonds in global indices as quickly as possible.

DHFL draft forensic report by KPMG had found the lender had disbursed loans and advances to inter-connected entities, which were likely linked to the promoters.

Supreme Court In the matter of PNB- Nirav Modi scam, the has granted relief to Usha Ananthasubramaniam, former MD and CEO of Punjab National Bank, by setting aside the order passed by NCLT by which her assets were frozen.
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👉 24.02.2020 GSTR 3B for the month of January 2020 should be furnished by February 24, 2020 for all the taxpayers from 22 States/UTs GSTR-3B

👉 Cash Flow Statement is not required to be prepared for SMALL COMPANY (Turnover  INR 2 crores AND Paid up Capital of INR 50 lakhs), OPC, Dormant Company and Start-up Company

👉  Production of Books not Relevant in Cheque Bounce Cases | Section 138 | NI Act. D. K. Chandel Vs Wockhardt Ltd. & Anr. (Supreme Court)
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👉 Vodafone Idea can exit only after NCLT okays, Registrar of Companies records deal - Vodafone Idea (VIL) will not be able to cash out of the Bharti Infratel-Indus Towers merged entity early enough to generate money to help pay off a bigger part of its huge adjusted gross revenue (AGR) dues by March 17, the deadline set by the Supreme Court, said industry executives and analysts.

There are two more steps left before the deal can be closed and these would take another two-three months, they said. The merger will have to be first cleared by the National Company Law Tribunal-Chandigarh and then taken on record by the Registrar of Companies.

  👉 Adani's Rs 400 crore bid for posh Aditya Estates in Delhi gets NCLT approval - Business conglomerate Adani group has won a bid to acquire Aditya Estates Pvt Ltd, which holds a posh 3.4 acre residential property near Mandi House in the heart of the national capital, through an insolvency process for a total deal value of Rs 400 crore. The Delhi-based Principal bench of the National Company Law Tribunal (NCLT) has approved the resolution plan of Adani Properties to acquire Aditya Estates for Rs 265 crore. Another Rs 135 crore would go towards meeting the statutory charges, taking the total deal value to Rs 400 crore.
The Committee of Creditors (CoC) of Aditya Estates led by ICICI Bank PLC had already approved by 93.01 per cent vote share, Adani's Rs 400 crore offer, which includes an upfront payment of Rs 265 crore.

Thanks for reading

Friday, 21 February 2020

21 February 2020 News and Updates

21 February 2K20

Ø  Telecom sector broken, Voda Idea on brink: Ex secy

Ø  Govt panel for ban on export of 12 drug formulations

Ø  Kotak Bank gets RBI nod for trimming promoters' stake

Ø  CCI finds no collusion by IndiGo, SpiceJet, others

Ø  'Consumer durables growth to pick in last qtr of FY20'

Ø  NSDL plans to raise over Rs 1,000 crore via IPO

Ø  Slow economy, weak sentiment to continue weighing on auto sales: Fitch

Ø  DoT still working on final AGR dues due to varying accounting practices

Ø  US DoJ drops charges against Droom founder in insider trading case

Ø  BHEL bags battery energy storage system order under TERI consortium project

Ø  Dish TV-Bharti Airtel deal called off due to differences over valuation

Ø  Transition to BS-VI fuel on track, say auto/oil industry bodies

Ø  AGR risk remains for GAIL, Oil India and Power Grid, says Fitch Ratings

Ø  Arnab Goswami owns over 82% of Republic TV: Company

Ø  Reliance, Aramco accelerate refinery stake sale talks

Ø  NHAI extends ₹260 crore to Reliance Infra subsidiary P S Toll Road

Ø  Telecom sector under stress for 3.5 years: Sunil Mittal

Ø  Renault and Nissan to maintain their alliance in India: Fabrice Cambolive

Ø  Swiggy raises $112 million in ongoing funding round led by Naspers

Ø  Govt approves ₹4,558 cr scheme for the dairy sector: Prakash Javadekar

Ø  India ranks 131 on flourishing index: Report

Ø  Govt considering compulsory registration for paper imports

Ø  Govt to formulate national action plan on business and human rights

Ø  Govt invites Germany’s state-run KfW to fund transmission projects

Ø  PMO holds meeting on merger of 10 public sector banks

Ø  Accelerating women entrepreneurship in India can generate 150–170 million jobs

Ø  Kiran Mazumdar Shaw fears shortage of drugs due to Covid-19 outbreak

Ø  Four social enterprises helping to curb air pollution in India

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✅# GSTN has enabled the option to file Annual Return i.e. GSTR-9 & Reconciliation Statement i.e. GSTR-9C for the F.Y 2018-19. Now the taxpayers can download the system computed draft Annual Return i.e. GSTR – 9 for the F.Y 2018-19.

✅# MCA has issued a Consultation paper to examine existing provisions of law related to enhancing audit independence and accountability.

http://www.mca.gov.in/Ministry/pdf/Comments_08022020.pdf

ICAI invites suggestions/comments from members on various questions framed in this regard at https://forms.gle/uwDoPdgEL7ucsYyy7

✅# PAN-Aadhaar Inter-Linking: As per New Rule 114AAA of the Income Tax Rules, if a PAN is not linked with Aadhaar No at the Website of the Income Tax Dept ; then such PAN shall become inoperative from April-01-2020. The PAN shall again become active upon the intimation of Aadhaar Number to the ITD.
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Itax update- CBDT vide Circular No. 6/2020 dated 19.02.2020 condones the delay in filing the Return of Income by Trust for the Assessment Year 2016-17 onwards under Section 119(2)(b) of Income Tax Act 1961 where form 9A & From 10 has been filed and, the Return of Income has been filed on or before 31st March of respective Assessment Year 2016-17, 2017-18 & 2018-19.
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👉 Companies (Registration Office and Fees )Amendment Rules, 2020 Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/rule_19022020.pdf

👉 This stock rose 155% last year, but still below IPO price
https://economictimes.indiatimes.com/markets/stocks/news/this-stock-rose-155-in-last-one-year-but-still-trades-below-ipo-price/articleshow/74218864.cms

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👉🏻CGST wing detects Input Tax Credit fraud of more than Rs 214 Cr in Delhi

(Over 35 entities are involved in the bogus transactions, involving fake invoicing to the tune of Rs. 214.74 crores and tax evasion of Rs. 38.05 Cr)

👇🏻 👇🏻 👇🏻

http://bit.ly/39NOcJr


👉🏻Canada Largest Express Entry draw ever issues 4,500 invitations

(Invitations to apply for Canadian Permanent Residence have been issued to 4,500 Express Entry candidates in the largest draw ever held by the Govt of Canada on February 19)

👇🏻 👇🏻 👇🏻

http://bit.ly/2P9uvEh


👉🏻Interest Calculation under GST - Gross Vs Net

(Interest Calculation under GST - Gross Vs Net   explained by CA. Bhavesh Mittal with latest Case Laws. Confusion after CBIC Tweets)

👇🏻 👇🏻 👇🏻

http://bit.ly/2HH1XxM


👉🏻ESB of ICAI selected Faculties from Northern Region

(Ethical Standard Board of ICAI organised Two days Faculty development  program in Oct 2019 and selected 10 eminent speakers as faculties for Code of Ethics)

👇🏻 👇🏻 👇🏻

http://bit.ly/38Jy5g2

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Madras High Court in a recent order has opined that the faceless tax-assessment system “can lead to erroneous assessment, if officers are not able to understand the transactions and statement of accounts of an assessee without a personal hearing”. The court, however, said electronic-assessment — introduced to curb cases of corruption and harassment of tax payers by officials— was a laudable initiative.

Central Board of Indirect Taxes & Customs (CBIC) has instructed its officers to initiate measures to recover interest payable for delayed filing of monthly returns (GSTR-3B). As per FE (February 13), the instruction from Member of the Board puts the figure at over Rs 46,000 crore.

Bombay High Court has held that an application made for withdrawal of an amount deposited with the court does not amount to a suit/proceeding/execution within Section 14 of IBC, and therefore, the party that deposited the amount cannot oppose such an application merely because it is undergoing moratorium.

MCA has allowed the Filing of forms in the registry of MCA-21 by the Insolvency Professional (IP), Interim Resolution Professional (IRP) or Resolution Professional (RP) or Liquidator as appointed under Insolvency Bankruptcy Code, 2016.

SEBI has notified the new norms & Guidelines governing Portfolio Managers and their services. The SEBI has mandated that portfolio managers cannot charge an upfront fee, either directly or indirectly, from clients and the only brokerage at actuals should be charged to clients as an expense.
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👉 NCLT The National Company Law Tribunal reserved its order on a plea by a former director of Dewan Housing Finance Corporation Ltd. seeking to allow him to be a part of the committee of creditors’ meetings.

A two-member bench comprising judicial member Rajasekhar VK and technical member Ravikumar Duraisamy declined to pass any interim direction or provide any immediate relief to Dheeraj Wadhawan but reserved the matter for orders.

Wadhawan had moved the tribunal after the Reserve Bank of India-appointed administrator rejected his plea to attend the CoC meetings.

The central bank superseded the home financier’s board in November under the Reserve Bank of India Act, 1934. The Section 45-IE of the act grants power to the RBI to supersede the board of any non-banking financial company if its affairs are conducted in a manner detrimental to the interest of its depositors or creditors. This supersession can last for a maximum period of five years.

  👉 The National Company Law Appellate Tribunal has referred the ongoing dispute between General Electric and Triveni Turbines over their joint venture back to the Bengaluru bench of the National Company Law Tribunal (NCLT).

An interim order by the NCLAT bench which permitted GE to sell its stake in subsidiary Baker Hughes, as long as the deal would not affect the business of GE Triveni will remain in effect till the NCLT decides on the matter. The interim order had also noted that the obligations of Baker Hughes and GE towards the joint venture would remain unchanged and that any stake sale would be subject to the decision of the tribunal.

Triveni Turbines had opposed the proposed stake sale, stating that it would “de-link” GE from the joint venture in violation of the terms of their deal and its obligations to provide GE Triveni with technology, marketing services and access to its international sales network.
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👉 Invitation for public comments on the Competition (Amendment) Bill,2020 Pdf(1.4 MB)
http://www.mca.gov.in/Ministry/pdf/rule_20022020.pdf

👉 Companies (Registration Office and Fees )Amendment Rules, 2020 Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/rule_19022020.pdf

👉 Minutes of the Monetary Policy Committee Meeting February 4 to 6, 2020
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49424

👉 Coronavirus impact: Why 2020 could be yr of rate cuts
https://economictimes.indiatimes.com/markets/stocks/news/coronavirus-impact-dollar-equities-and-gold-rally-why-2020-could-be-a-year-of-rate-cuts/articleshow/74234950.cms

👉 Stock, forex markets shut today for Maha Shivratri
https://economictimes.indiatimes.com/markets/stocks/news/stock-bond-and-forex-markets-shut-today-for-maha-shivratri/articleshow/74230079.cms

👉 Hindujas, Cerberus may partner for YES Bank stake
https://economictimes.indiatimes.com/markets/stocks/news/hindujas-cerberus-may-partner-to-bid-for-yes-bank-stake/articleshow/74224923.cms

Thanks for reading

Wednesday, 19 February 2020

19 February 2020 News and Updates

19th February 2K20

Economic Times

Ø  Telcos oppose Trai's tariff plan transparency
Ø  GAIL wants India's dirty fuel-reliant steel plants to guzzle gas
Ø  Russian govt backed fund shows interest in Jet Airways
Ø  'PE, VC investments hit record high of $48 bn in 2019'
Ø  GFG Alliance acquires Adhunik Metaliks and Zion Steel
Ø  India Ratings downgrades Vodafone’s NCDs
Ø  FM allays fears of price rise due to virus outbreak 
Ø  PFC-REC merger stuck, Centre reaching out to PSUs to pick up stake
Ø  Irdai chief asks general insurers to cut expenses, improve efficiency
Ø  Cut in lending rates insufficient to boost credit growth: BofA Securities
Ø  IBBI proposes simultaneous CoC voting on two or more resolution plans
Ø  UTI MF, Nippon India MF side pocket Vodafone Idea exposure of Rs 413 cr
Ø  EESL inks pact with BSNL for 1,000 EV charging stations across country
 
Business Line

Ø  Indian Pharma industry has only 2-3 months stock of Chinese APIs
Ø  ‘Hike in import duty could lead to 100% surge in MRP of toys’
Ø  PE/VC-backed startups created over 26 lakh jobs in 2019: Report
Ø  London-based GFG Alliance acquires Adhunik Metaliks, its arm to mark India entry
Ø  Vodafone Idea’s cash balance is just $1.8 billion, AGR liability of $6.3 billion: Report

Mint

Ø  Reliance, Saudi Aramco accelerate refinery stake sale talks
Ø  GAIL in talks with Tata Steel, SAIL to spur gas demand
Ø  SAT gives Sebi time till 10 March to pass final order in CG Power matter
Ø  Yes Bank to be dropped from Nifty 50 from 27 March; Shree Cement to move in
Ø  Govt pegs record wheat output at 106.21 million tons for 2019-20
Ø  Sun Pharma, others on regulator’s radar as drugs flunk quality tests

Financial Express

Ø  Jet Airways stake sale: Deadline for bids extended to March 10
Ø  Ind-Ra revises outlook on textile sector to negative from stable
Ø  India’s sugar export may cross 5 million tonne this year: ISMA
Ø  HCL Tech bags IT deal from New Zealand’s Fonterra Co-operative

Deccan Chronicle

Ø  Moody's revises India GDP forecast to 5.4 pc in 2020
Ø  Sensex, Nifty clock fourth successive loss under AGR, coronavirus clouds
Ø  Kumar Mangalam Birla meets telecom secretary in Vodafone Idea rescue mission
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Finance minister said that the government was considering suggestions received on taxation liability imposed on unit holders of REITS and InvITs after the Budget reverted to the classical system of taxing dividend in the hands of recipient. 

Taxpayers availing of the Vivaad Se Vishwas Scheme will have to pay only half of the disputed amount in cases where the income tax department has filed an appeal, as per recent amendments to the Direct Tax Vivad Se Vishwas Bill that were cleared by the Cabinet. The Bill, which was introduced in the Lok Sabha during the just-concluded Budget session, is expected to come up for passage in the next session beginning March 2.

GST portal to file GSTR - 9C for the year 2018-19 is now operational. As on date the due date to file the same is March 31, 2020. In case of any difficulties please send email to gst@icai.in with a copy to rk@icai.in

Sebi said it is actively looking at re-categorisation of mid cap and small cap mutual fund schemes. The move is expected to permit these products to invest in a wider set of stocks, according to industry experts. In order to ensure uniformity in respect of the investment universe for equity schemes, the regulator, in 2017, had defined large cap, mid cap and small cap.

MCA has notified the Nidhi (Second Amendment) Rules, 2020 which shall come into force on the date of their publication in the official Gazette i.e 14-02-2020. 

SEBI Introduces New System to Detect Broker Misuse of Client Securities. An online register will record brokers' holdings of client securities, clubbing all such information collected by exchanges, depositories and clearing corporations for all types of trades. 


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👉🏻Income Tax dept issues notices to directors of defaulting Cost
(Directors are being held accountable for the tax compliance of the companies they work for under section 179 of the Income Tax Act dealing with recovery of dues.)
👇🏻 👇🏻 👇🏻
http://bit.ly/324Ymms

👉🏻Search and Inspection under GST
(Generally in case of search mostly shortage of Stock found in premises or without bills transport goods found which is confiscated but it is rarely excess stock found in Premises)
👇🏻 👇🏻 👇🏻
http://bit.ly/325EkrO

👉🏻Filing of forms by IRP, RP or Liquidator in Registry (MCA21)
(MCA Circular regarding Filing of forms in the Registry (MCA-21) by the IP, IRP or Resolution Professional RP or Liquidator appointed under IBC, 2016.
👇🏻 👇🏻 👇🏻
https://youtu.be/MRzpTTrDzQ4
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👉 Accounting and Billing Software Providers can enrol with GSTN to receive regular updates on e-invoice
https://www.gst.gov.in/newsandupdates/read/354

👉 A webinar has been scheduled on19th February 2020 at 4.30 pm IST on the topic Appeal in Tamil
https://www.gst.gov.in/newsandupdates/read/355

👉 Advisory for Opting in for Composition (filing Form GST CMP-02)
https://www.gst.gov.in/newsandupdates/read/356

👉 Due dates of filing Form GSTR 3B, for the month of January, 2020
https://www.gst.gov.in/newsandupdates/read/357

👉 Educational Material on Indian Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance - (18-02-2020)
https://www.icai.org/new_post.html?post_id=16331&c_id=240

👉 ICAI invites suggestions/comments from members on Consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability by 12.00 Noon on 21st February, 2020. - (18-02-2020)
https://resource.cdn.icai.org/58436icaimcp180220.pdf

👉 National CSR Awards Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/InviNomNCSRA_24122019.pdf

👉 Invitation for inputs for India's National Action Plan on Business and Human Rights Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/NationalPlanBusinessHumanRight_13022019.pdf

👉 Stocks in news: YES Bank, Voda Idea, Vedanta, Airtel
https://economictimes.indiatimes.com/markets/stocks/news/stocks-in-the-news-yes-bank-vodafone-idea-shree-cement-vedanta-and-bharti-airtel/articleshow/74201112.cms

👉 Live: Sensex off opening high, up 250 points
https://economictimes.indiatimes.com/sensex-nifty-live-today-2020-02-19/liveblog/74201234.cms
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👉 NCLT Grants Three Days To Cox & Kings’ Suspended Directors To Submit Records - The National Company Law Tribunal on Monday granted three days to suspended directors of Cox & Kings (India) Ltd. for submitting statutory information and records to the resolution professional. The resolution professional of the tours and travel company told the tribunal that the former directors and the erstwhile auditor are not submitting statutory information and records, which is making the insolvency process difficult. The Mumbai bench of the NCLT in October 2019 admitted an insolvency application against Cox & Kings after the tour operator defaulted on its debt obligations to the company's financial creditor, Ratan India Finance Ltd.

  👉 HDIL resolution process: NCLT allows exclusion of over 100 days - The dedicated bankruptcy court has allowed exclusion of around 106 days from the corporate insolvency resolution process (CIRP) of Housing Development and Infrastructure
We are seeking exclusion of about 106 days, which will help us to complete the time-bound process smoothly,” Abhay Narayan Manudhane, the resolution professional, said through his counsel. “In September, NCLAT had stayed the formation of the committee of creditors of the company, but subsequently that stay was lifted in the month of December and that time we are seeking to be excluded from CIRP.

Thanks for reading

Tuesday, 18 February 2020

18 February 2020 News and Updates

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.

……….

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.

Thanks for reading

Monday, 17 February 2020

17 February 2020 News and Updates


Corporate Snippets on Feb 17
 
Ø Govt. may finally get a fraction of AGR dues on Monday

Ø Deloitte to stop non-audit services to audit clients

Ø DLF plans to raise Rs 2K cr via sale of commercial land

Ø Govt allows Indian firms to list GDRs at IFSC

Ø OIL to move TDSAT against DoT seeking Rs 48,489 cr

Ø Unichem, Macleods Pharma recall drugs from US market
 
Ø ArcelorMittal- Nippon Steel in talks to buy 500 Mw Bhander power unit

Ø JSW shakes up the paints market dominated by Asian Paints, Berger

Ø In an 'all-share deal', LIC Housing-IDBI Bank merger on fast track

Ø Amazon, trade bodies' courtroom battle may impact e-commerce policy

Ø Calcutta HC asks RBI to take appropriate action against Bank of Baroda
 
Ø FRBM not breached in the Budget, says Sitharaman

Ø India in talks with Russia for long-term import of crude oil

Ø IMG clears BPCL sale bid documents, to be issued after ministerial group nod

Ø MMTC Q3 net profit falls 62% to Rs 12.48 cr

Ø Tata Power eyes ₹6,000 crore from asset sales

Ø USFDA seeks voluntary action at Dr Reddy’s Duvvada facility in AP

Ø  Tata Steel capex likely to touch 9,000 cr in FY20
 
Ø Creditors to Videocon Group likely to appeal against insolvency tribunal’s order

Ø Indian firms’ Q3 net sales fall to over five-year low

Ø Consumption slump hits innovation at FMCG firms

Ø Vodafone Idea to part pay AGR dues from loans and internal reserves

Ø Deutsche Bank’s risky debt decision loses bite

Ø Move over Mauritius, FPIs now eye Singapore to channel funds
 
Ø ITC-invoices mismatch: Huge sums sought as GST credit denied

Ø Coronavirus could damage global economic growth in 2020: IMF

Ø About 92% of large taxpayers filed annual returns for 2017-18: GSTN

Ø FPIs remain net buyers in first half of February, invest Rs 24,617 crore
 
Ø Credit growth momentum gathering pace: RBI chief

Ø Covid19 may cut supply of generic drug ingredients from China
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👉 Decision of the Council of the Institute regarding cut-off date for condonation of cases for the year 2020-21 - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16311&c_id=240

👉 Extension of the Last Date for submission of application for Empanelment of Chartered Accountants firms/LLPs with O/o C&AG for the year 2020-21 - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16312&c_id=240

👉 Draft report of the High Level Independent Committee on Exam Processes and Regulations - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16314&c_id=219

👉 NIDHI (Second Amendment )Rules, 2020.Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/rule_14022020.pdf

👉 Vacancy circular for Direct Recruitment of Manager and Assistant Manager in NFRAPdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/notices_14022020.pdf

👉🏻CBDT notifies forms for Cos to avail lower corporate taxes
(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)
👇🏻 👇🏻 👇🏻
https://bit.ly/2tXVafF

👉🏻SEBI rolls out system to detect misuse of client securities by brokers
(SEBI introduced a system to monitor and detect misuse of client securities by stock brokers, Under the new system an online register will record brokers’ holdings of client securities)
👇🏻 👇🏻 👇🏻
http://bit.ly/39AcPJv

👉🏻PAN to become inoperative after March 31 if not linked with Aadhaar
(Till January 27, 2020, over 30.75 crore PANs have already been linked to Aadhaar. However, 17.58 crore PANs are yet to be linked with Aadhaar) 
👇🏻 👇🏻 👇🏻
http://bit.ly/31Wn4VX
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New Income Tax Forms- (a) Form No. 10-IC and (b) Form No.10-ID Notified: In order to choose the Option of Lower 22% Corporate Tax Rate for the AY 2020-2021, a Domestic Company shall be required to file Form No.10-IC as per the provisions of Section 115BAA; and;

In order to choose the Option of 15% Corporate Tax Rate, a New Domestic Manufacturing Company shall be required to file its Application on Form No.10-ID as per the provisions of Sec.115BAB.

INTEGRATION OF EWAY BILL WITH VAHAN SYSTEM OF TRANSPORT DEPARTMENT: EWB IS NOT GENERATED IF VEHICLE NUMBER IS NOT AVAILABLE.

E-Way bill has been integrated with Vahan System of Transport Department. You can't generateEWB when the Vehicle no. is not available in the Vahan system and user will get ‘Alert Message and can't generate the EWB.

You are requested to check and update the vehicle registration with your concerned Regional Transport Office (RTO). If Vehicle is registered in more than one RTO, You need to approach your RTO and request for updation. Once the details are updated this message will not appear again.

In spite of having a Valid RC of my Vehicle, If it still showing‘ Alert Message’ it is suggested to reach to your concerned RTO. Once the details are updated, the status in e-Waybill system will also get updated.You can always check your vehicle number in Vahan system; https://vahan.nic.in/nrservices/faces/user/searchstatus.xhtml

When you are unable to find your vehicle details on Vahan system then you need to visit RTO with original RC and other documents. If the Vehicle number is with temporary registration, the details are not verified and enter the temporary number starting with TR.

If Vehicle number are shown in Vahan website but not available in e-way bill portal then you need to contact with  the E-way bill Helpdesk and submit your grievance.


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CBDT has inserted a new Rule 114AAA to provide the manner in which the PAN of a person will become inoperative if it is not linked with the Aadhaar on or before 31-03-2020. Once PAN of an assessee become inoperative, it shall be deemed that he has not furnished or intimated or quoted his PAN, as the case may be. The inoperative PAN can be reactivated subsequently by intimating the Aadhaar to the department.            
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 There are some discussions in social media w.r.t. interest calculation on delayed GST payments post a few media reports regarding Rs. 46000 Cr interest on the delayed GST payments to be collected by tax authorities. On this issue of interest calculation, it is clarified that-

The GST laws, as of now, permit interest calculation on delayed GST payment on the basis of gross tax liability. 
This position has been upheld in the Telangana High Court’s decision dated 18.04.2019.

In spite of this position of law and Telangana High Court’s order, the Central Government and several State Governments, on the recommendations of GST Council, amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability.

Such amendment will be made prospectively. The States of Telangana and West Bengal are in the process of amending their State GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country.        

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Madras HC allows writ, holds that interest u/s 50 of CGST Act could be demanded only on 'cash' component of tax remitted belatedly and not on 'ITC' component; Opines that, since ITC is available all the while with the Department to the credit of the assessee, same is neither “belated nor delayed”; Cogitates that, “use of the word 'delayed' connotes a situation of deprival” whereas availability of ITC runs counter to this, as it connotes the enrichment of the State, to this extent; Thus, holds that “Section 50 which is specifically intended to apply to a state of deprival cannot apply in a situation where the State is possessed of sufficient funds to the credit of the assessee; Moreover, the argument that ITC is liable to be reversed if found to have been erroneously claimed, and that it may be invalidated in some situations, is inconsequential as “availment and utilization of ITC are two separate events”; Remarks that recently inserted proviso to Section 50(1), as per which interest shall be levied only on that ‘cash’ part of the tax inserted w.e.f. August 01, 2019, clearly seeks to correct an anomaly in the provision as it existed prior to such insertion, hence “should thus, in my view, be read as clarificatory and operative retrospectively”; Observes that the said amendment to Section 50(1), was only at the stage of press release by Ministry of Finance when the Division Bench of Telengana HC passed order in the case of Megha Engineering and Infrastructures Ltd., however, notes that now “the amendment stands incorporated into the Statute and comes to the aid of the assessee”; Refers to recent Madras HC ruling in Daejung Moparts Pvt. Ltd. & SC ruling under Income Tax Law in the case of Anjum M.H.Ghaswala & Ors: Madras HC
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👉 JetLite staff moves NCLT to be part of Jet’s insolvency resolution - The employees of JetLite, a subsidiary of Jet AirwaysNSE -4.97 %, have moved the dedicated bankruptcy court to be part of the corporate insolvency resolution process of the defunct carrier.

On Friday, the employees approached the Mumbai bench of the National Company Law Tribunal (NCLT) with the argument that when they had approached the resolution professional (RP), their claims were rejected.

“Claims submitted to the Jet Airway’s RP are being rejected and JetLite’s employees are being neglected,” argued the counsel for the employees of JetLite. “Jet Airways and JetLite are interdependent entities. The dues of JetLite employees are around Rs 50 crore.

  👉 Lenders set to recover 43.1% from insolvency proceedings - Successful resolutions of corporate insolvency proceedings till the end of 2019 are set to result in recoveries of Rs 1.52 lakh crore for lenders, averaging 43.1% of their admitted claims of Rs 3.52 lakh crore, according to data released by the Insolvency and Bankruptcy Board of India (IBBI).

Resolutions in the quarter through December 2019, however, yielded only around 12.2%, or about Rs 2,879 crore, of the admitted claims of Rs 23,668 crore. In the preceding quarter, lenders recovered  around 34.4% of their total claims of Rs 78,592 crore.
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V V VIMP 
M/s REFEX INDUSTRIES LIMITED Vs THE ASSISTANT COMMISSIONER OF CGST & CENTRAL EXCISE, CHENNAI

Proviso to Section 50 is operative retrospectively and clarificatory in nature – Anomaly Removed

GST - Section 50 - Interest on delayed payment of tax – retrospective effect of proviso to Section 50(1) - petitioner case that Section 50 of CGST Act, 2017 that provides for levy of interest on belated payments would apply only to payments of tax by cash, belatedly, and would not stand triggered in the case of available Input Tax Credit, since such ITC represents credit due to an assessee by the Department held as such - whether in a case where credit is due to an assessee, payment by way of adjustment can still be termed 'belated' or 'delayed' payment of tax – HELD - The use of the word 'delayed' connotes a situation of deprival, where the State has been deprived of the funds representing tax component till such time the Return is filed accompanied by the remittance of tax. The availability of ITC runs counter to this, as it connotes the enrichment of the State, to this extent. Thus, Section 50 which is specifically intended to apply to a state of deprival cannot apply in a situation where the State is possessed of sufficient funds to the credit of the assessee - the proper application of Section 50 is one where interest is levied on a belated cash payment but not on ITC available all the while with the Department to the credit of the assessee. The latter being available with the Department is neither belated nor delayed - The argument of the Revenue that Input Tax Credit is liable to be reversed if it is found to have been erroneously claimed, and that it may be invalidated in some situations, does not militate with aforesaid conclusion – as per proviso to Section 50(1), interest shall be levied only on that part of the tax which is paid in cash, has been inserted with effect from 01.08.2019, but clearly seeks to correct an anomaly in the provision as it existed prior to such insertion. It should thus, be read as clarificatory and operative retrospectively - the impugned notices are set aside and Writ Petitions are allowed
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92% of large taxpayers filed annual returns for 2017-18 as per GSTN

👩🏻‍🎓The data shows that the number of taxpayers with a turnover of more than Rs 2 crore is 12.42 lakh, which is only 13.4 per cent of the total 92.58 lakh regular taxpayers. This means 80.16 lakh taxpayers are not mandated to file annual returns. (Note that annual return filing is optional for taxpayers having annual turnover up to Rs 2 crore)

👨🏻‍🎓 The top three states where businesses registered under GST recorded maximum return filing are Maharashtra (96 per cent) followed by Rajasthan and Gujarat (95 per cent each).

👩🏻‍🎓 Also, the taxpayers who have not filed by the due date can still file the returns for 2017-18 but will be required to pay the late fee.

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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. 

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👉 Resolutions via IBC see a big fall in third quarter - Realisation by financial creditors through the Insolvency and Bankruptcy Code (IBC) has fallen drastically in the fiscal third quarter, resurfacing industry concerns over slowing recoveries that are increasingly prompting lenders seek out-of-court settlements.

Data from the Insolvency and Bankruptcy Board of India (IBBI) showed that financial creditors realised just 12% of their claims in the quarter-ended December, down from 34% in the quarter-ended September.

  👉 Liquidation remains high in NCLT cases- More than half of the cases admitted to the National Company Law Tribunal (NCLT) are been liquidated as recovery through resolution continues to elude creditors, latest data released by the Insolvency and Bankruptcy Board of India (IBBI) showed. A total of 3,312 cases were admitted in the insolvency courts till the end of the third quarter of the financial year, of which 561 were during the Oct-Dec period. This was the second highest number of cases admitted in a quarter after the July-September period of the current financial year when 565 cases were admitted. Out of a total of 1,351 closed cases, 780 or 58% were closed through liquidation and only 190 cases or 14% were resolved with an average haircut of 57% on admitted claims.

Thanks for reading

Friday, 14 February 2020

14 February 2020 News and Updates

Corporate Snippets on Feb 14 ❤️

Ø IMF sounds an alert over India's rising debt

Ø BPCL Q3 profit triples to Rs 2,051 crore

Ø PSBs hit by fraud cases of Rs 1.17 lakh cr in Apr-Dec

Ø SC to hear telcos’ pleas on AGR verdict on Friday

Ø India Ratings maintains negative outlook on real estate

Ø Veg oil imports down 6% at 11.96 lakh tonnes in Jan

Ø S&P retains India's rating at 'BBB-', says fiscal position precarious

Ø SEBI develops system to detect misuse of client securities by stock brokers

Ø Foreign investors turn net buyers in Dec quarter, pump in $ 6.3 bn

Ø PW India won't offer non-audit service to clients governed by NFRA

Ø TVS Motor increases stake in US-based Scienaptic Systems

Ø Nestle India net surges 38% to ₹473 crore in December quarter

Ø Vodafone Idea Q3 net loss rises to ₹6,438.8 crore

Ø Future Retail Q3 net profit down 16.7 per cent to ₹164.56 cr

Ø Govt. mulls imposition of import restrictions on television sets

Ø Air India Express profit rises 26% to ₹680 cr during April-Sept 2019

Ø RBI new asset recognition norms credit negative for banks: Moody's

Ø Reliance Jio tops 4G download speed chart, Vodafone leads in upload: Trai data

Ø Apollo Hospitals Q3 net profit surges 80% to Rs. 90 crore

Ø Long-term reverse repos to have fixed interest rate: RBI

Ø IMF wants India to focus on medium-term fiscal consolidation

Ø Shell, Reliance Industries win in English High Court against Govt in PMT oil, gas field dispute

Ø PE investment in real estate up 3 pc at Rs 43,704 cr during 2019: Report

Ø US gives Iraq sanctions waiver for vital Iranian gas imports

Ø Damanis to sell 2.3% in Avenue for over Rs 3,000 crore

Ø Edelweiss FoF to invest in US tech firms

Ø G&J exports hit by China shutdown
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👉 DHFL's former directors move NCLT seeking participation in CoC meetings - Former directors of Dewan Housing Finance Corporation Ltd on Wednesday filed an application in the National Company Law Tribunal seeking participation in the committee of creditors' (CoC) meetings.
The DHFL former directors were denied participation in the CoC meetings as its board was superseded by the Reserve Bank of India (RBI) in November 2019.
The participation in the CoC meetings cannot be allowed as the insolvency process was initiated by the RBI, the counsel representing the administrator said.

  👉 Include Videocon foreign arms in insolvency process - The National Company Law Tribunal (NCLT) has ordered the inclusion of Videocon’s oil businesses in Brazil and Indonesia as part of insolvency proceedings being conducted in India, according to two people aware of the matter. The order is the first instance of overseas incorporated subsidiaries being brought under the ambit of local insolvency laws.

The assets include stakes in overseas oil blocks held through Videocon arms incorporated in the Cayman Islands and British Virgin Islands. These were purchased after Videocon entered an agreement with state-run Bharat Petroleum Corporation Ltd 14 years ago to search for foreign investment opportunities jointly. The two partners reportedly invested over $2 billion in development of the assets over the past six to eight years.
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👉 Instant PAN allotment in near to real time is available at free of cost. Individuals (other than minors) with a valid Aadhaar number (with updated Mobile number) can avail the PAN allotment facility.
https://www.incometaxindiaefiling.gov.in/e-PAN/index.html?lang=eng

👉 IT Return Preparation Software
https://www.incometaxindiaefiling.gov.in/downloads/incomeTaxReturnUtilities?lang=eng

👉 Exposure Draft of Guidance Note on Audit of Banks, 2020 edition issued by the Auditing and Assurance Standards Board - (11-02-2020)
https://resource.cdn.icai.org/58285aasb47553.pdf

👉 Companies (Issue of Global Depository Receipts) Amendment Rules, 2020Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/notices_13022020.pdf

👉 Empanelment of firms (Partnerships /Limited Liability Partnerships/Proprietary Concerns) of Practicing Chartered Accountants as Technical Reviewers(TRs)Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/notices_11022020.pdf

👉 RBI to conduct 14-day Variable Rate Reverse Repo auction under LAF on February 14, 2020
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49399

👉 Clarifications / Frequently Asked Questions (FAQs) on LTROs
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49397


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👉🏻FinMin notifies common application form for FPI registration
(Finance Ministry has notified a common application form for registration of foreign portfolio investors in a bid to enhance operational flexibility and ease of access to the Indian capital market)
👇🏻 👇🏻 👇🏻
http://bit.ly/31PWApc

👉🏻Only 2,200 professionals declared income above Rs 1 Cr in FY19
(CBDT reiterated that only 2,200 professionals had indeed declared annual income above Rs 1 crore in FY19)
👇🏻 👇🏻 👇🏻
https://bit.ly/31X8qh9
 
👉🏻How to reply to the GST Dept Notices on ITC
(How to reply to the GST Dept Notices on ITC explained by CA. Mohit Gupta)
👇🏻 👇🏻 👇🏻
http://bit.ly/2u0eE3s

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Income Tax department will share all taxpayers' data like PAN information with Sebi in order to help the capital market regulator in its probe against various entities, including those involved in 'stock market manipulation',

Union Cabinet approved the Signing and Ratification of the Protocol amending the Agreement between India and Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

 Instant PAN allotment in near to real time is available at free of cost. Individuals (other than minors) with a valid Aadhaar number (with updated Mobile number) can avail the PAN allotment facility.

Income Tax Department carried out Search and Seizure action on 6th February 2020 at Hyderabad, Vijaywada, Cuddapah, Vishakhapatnam, Delhi and Pune. More than 40 premises were covered.

Union Cabinet gave its approval for amendment of the Direct Tax Vivad se Vishwas Bill, 2020, so that its scope can be widened to cover litigation pending in various debt recovery tribunals (DRTs). Also, in search and seizure procedures, where the recovery is up to ₹5 crore, this scheme can now be availed of once the Bill is amended. 

 CBIC has issued a Circular informing of implementation of PGA eSANCHIT a Paperless Processing under SWIFT by uploading of Licenses / Permits / Certificates / Other Authorizations (LPCOs) by PGAs.

 DGFT has issued a Trade Notice to request exporters to submit fortnightly statements in the prescribed format on Statement of Origin issued. Further, to respond to the verification requests by EU within the prescribed time limit, failing which the Registered Exporter Number (REX) may be annulled.

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👉 Videocon Insolvency: NCLT Allows Venugopal Dhoot’s Plea To Consolidate Overseas Assets - The National Company Law Tribunal has allowed Venugopal Dhoot’s plea seeking a moratorium on the foreign petroleum assets of the debt-ridden Videocon Group and restraining its lenders from selling the conglomerate’s overseas assets Dhoot, founder of the Videocon Group, had also sought direction from the tribunal to declare assets of the group’s overseas petroleum subsidiary as property of Videocon Industries Ltd.

  👉 The directors & officers’ (D&Os’) insurance policy, which compensates key management personnel of a company against legal actions, is seeing a surge in demand. The cover, which was earlier being purchased by businesses with a global exposure, is now being bought by companies with only domestic stakeholders as well.

The trigger for the renewed demand for this cover has been the amendment to the Companies Act last year. Under this, the government can ask the National Company Law Tribunal to hold directors and key management personnel responsible without any limit to liability in the event of fraud.

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📝2 New Income Tax Forms- (a) Form No. 10-IC and (b) Form No.10-ID Notified:

■ In order to choose the Option of Lower 22% Corporate Tax Rate for the AY 2020-2021, a Domestic Company shall be required to file Form No.10-IC as per the provisions of Section 115BAA; and;

■ In order to choose the Option of 15% Corporate Tax Rate, a New Domestic Manufacturing Company shall be required to file its Application on Form No.10-ID as per the provisions of Sec.115BAB.

Source: Income Tax (4th Amendment), Rules, 2020.

Thanks for reading