GST collection slips below Rs 1 trillion in March after four months:
READ MORE- https://www.gststation.in/gst-collection-slips-below-rs-1-trillion-in-march-after-four-months/
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👉 New Delhi, Mar 30 The National Company Law Appellate Tribunal (NCLAT) on Monday directed that the lockdown period, as announced by the government, would be excluded for the purpose of counting of days for all ongoing insolvency matters, which are time bound.
Passing a suo motu order, a three-member NCLAT bench headed by Acting Chairperson Justice B L Bhat said that it would applicable in all the corporate insolvency resolution process, which has been initiated or pending, or pending in Appel before the benches of NCLTs or before the appellate tribunal.
Besides, any interim order passed by the NCLAT or National Company Law Tribunal (NCLT) would continue till the next date of hearing, which would be notified once the tribunal and the appellate tribunal starts functioning.
The NCLT and the NCLAT have closed their hearing amidst the three weeks lockdown imposed by the government to contain the spread of pandemic of Covid-19.
"The period of lockdown ordered by the central government and the State Governments including the period as may be extended either in whole or part of the country, where the registered office of the corporate debtor may be located, shall be excluded for the purpose of counting of the period for ''Resolution Process under Section 12 of the Insolvency and Bankruptcy Code, 2016, in all cases where ‘Corporate Insolvency Resolution Process’️ has been initiated and pending before any Bench of the NCLT or in Appeal before this Appellate Tribunal,†it said.
“It is further ordered that any interim order/ stay order passed by this Appellate Tribunal in anyone or the other Appeal under Insolvency and Bankruptcy Code, 2016 shall continue till the next date of hearing, which may be notified later,†the NCLAT added.
The appellate tribunal has directed to communicate this order to the registrar of NCLT asking to circulate the same to all benches of NCLT across the country.
👉 The monitoring committee attached to the insolvency resolution process of Chennai-based Orchid Pharma has implemented the approved resolution plan by Gurgaon-based Dhanuka Laboratories, which would fetch the secured lenders close to 32.3% recovery of their dues. Besides, the lenders will also receive around 4,08,164 equity shares of Orchid Pharma, at an issue price of Rs 10 each for part of their debt, sources in the know told FE.
According to a regulatory filing by Orchid Pharma on Tuesday, the paid-up equity share capital of the company has been reduced from Rs 88.96 crore to Rs 40.81 crore, with cancellation of 88.56 million equity shares of Rs 10 each. A meeting of the monitoring committee also approved issue of 0% non-convertible, non-marketable, cumulative redeemable debentures of value of Rs 3,650 crore to Dhanuka Pharmaceuticals — a special purpose vehicle formed by Dhanuka Laboratories — for subsuming equivalent outstanding debt of Orchid Pharma by the SPV for consideration other than cash.
Sources said that the lenders had been able to recover around Rs 1,106.50 crore out of the total admitted debt of around Rs 3,526.74 crore, apart from the 1% shares. Dhanuka will hold around 98% shares following the deal and may have to look for dilution of shares as per the relevant regulation.
The 4,08,164 equity shares are to be issued to 22 secured financial creditors depending upon their exposure in the company, and State Bank of India will get 72,915 equity shares, while Bank of India will get 41,228 shares and Union Bank of India and Allahabad Bank will receive around 28,000-29,000 shares each.
Dhanuka’s resolution plan was finally taken for implementation after the Supreme Court had set aside the National Company Law Appellate Tribunal (NCLAT) order that nullified the Chennai bench of NCLT’s approval of a resolution plan by Gurgaon-based Dhanuka Laboratories for the debt-ridden company Orchid Pharma.
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Odisha hoteliers seek GST holiday, tax waiver due to COVID-19 lockdown:
READ MORE- https://www.gststation.in/odisha-hoteliers-seek-gst-holiday-tax-waiver-due-to-covid-19-lockdown/
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Realme increases smartphone prices due to GST hike, rupee dip:
READ MORE- https://www.gststation.in/realme-increases-smartphone-prices-due-to-gst-hike-rupee-dip/
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👉🏻RBI announces further measures for dealing with the COVID-19 pandemic
(Disruption caused by COVID-19, RBI now come to the rescue of state govts, exporters and also provide relief to banks' capital concerns)
👇🏻 👇🏻 👇🏻
https://bit.ly/2UVcnQn
👉🏻GST collections for March stand at Rs 97597 Cr
(GST collections for March, 2020 stood at Rs. 97,597 Cr, lower than Rs. 1.05 lakh Cr collected in Feb, 2020)
👇🏻 👇🏻 👇🏻
https://bit.ly/2R2VXV6
👉🏻MCA gives an opportunity to regularise deactivated DINs without fee
(MCA has given a one-time opportunity for ‘ACTIVE non-compliant’ companies to become compliant without forking out any fees)
👇🏻 👇🏻 👇🏻
https://bit.ly/3bLbb9a
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👉 New Delhi: As equity investors lost about Rs 50 lakh crore wealth in the brutal selloff triggered by the coronavirus outbreak, one stock rallied over 1,000 per cent in last two months.
Not just that! The stock also scripted a trailblazing comeback from 52-week lows, as the company emerged out of the NCLT after a corporate insolvency resolution process.
We are talking about smallcap stock Ruchi Soya Industries, which was acquired by Patanjali Ayurved in late 2019. The stock has since risen over 5,300 cent to hit all-time high of Rs 162 on March 30, rising from a 52-week low of Rs 3.28 hit on July 24, 2019.
The scrip is on a secular bull run and has been hitting upper circuit limits ever since January amid huge demand. It traded at Rs 17 on January 27, 2020.
However, the average traded quantity on the counter in the past two weeks has been just 334. “After its acquisition by Patanjali, the shares were consolidated in the 100:1 ratio. Thus, there is no float available,” said Arun Mukherjee, a Kolkata-based investor and founding partner of SA Investment Advisers.
Investors fancy the stock, but there are no sellers. “It’s mainly demand-supply economics at play, leading to the rally,” Mukherjee said.
Ruchi Soya is one of the largest manufacturers of edible oils in India. It makes and sells edible oils, bakery fats and soya food primarily in India.
The edible oil range holds a number of oil and soya product brands, such as Mahakosh and Nutrela, which is the largest selling soya foods brand in the country with more than 50 per cent market share.
👉 The lockdown period will not be counted in the timeline set to finalise resolution plans for stressed companies under the insolvency process, the Insolvency & Bankruptcy Board of India has said, providing in a breather for lenders, bidders and resolution professionals.
“The period of lockdown imposed by the central government in the wake of the Covid-19 outbreak shall not be counted for the purposes of the timeline for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process,” IBBI said in a notification on Sunday. “This would, however, be subject to the overall time-limit provided in the code.”
About 2,000 companies are currently undergoing resolution process under the Insolvency and Bankruptcy Code (IBC), including Jet Airways, Reliance Communications, Videocon Group and Lavasa.
The board has taken a view that It is difficult for the resolution professional (RP) to continue to conduct the process, for members of the committee of creditors (CoC) to attend the meetings, and for bidders to submit resolution plans, during the period of lockdown. Hence the decision to exclude the lockdown period from timeline for resolution process.
“The Government is well aware of the issues faced by various stakeholders and is also conscious of uncertainty created by COVID – 19 situation,” said Raj Panchmatia, Partner at Khaitan & Co. “It is actively taking steps to alleviate any hardship that may have been created. Bringing this specific amendment is all the more relevant given the strict timelines under the Code and to also address the issues faced by the stakeholders due to lockdown.”
National Company Law Tribunal (NCLT) had recently allowed 90 days extension for the resolution process of Jet Airways while in the case of RCom lenders have approved the resolution plan currently submitted to the tribunal for its approval.
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Govt should mandate force majeure for all civil aviation contracts: FICCI
READ MORE- https://www.gststation.in/govt-should-mandate-force-majeure-for-all-civil-aviation-contracts-ficci/
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Impact of COVID – 19 on Ind AS/Converged IFRS Financial Statements:
Going Concern assessment [Ind AS 1 and 10] Presentation of Financial Statements [Ind AS 1] Post Balance Sheet Events [Ind AS 10] Provisions, Contingent Liabilities and Contingent Assets [Ind AS 37]
Measurement of Inventories [Ind AS 2] Property, Plant and Equipment [Ind AS 16] Borrowing Costs [Ind AS 23] Impairment of Non-Financial Assets [Ind AS 36] impairment of Financial Assets [Ind AS 109 and Ind AS 107]
Hedge Accounting [Ind AS 109] Fair Value Measurements [Ind AS 113] Leases [Ind AS 116] Revenue [Ind AS 115] Income Taxes [Ind AS 12] Modifications of contract and arrangements [Relevant Ind AS]
Consolidated Financial Statements [Ind AS 110] Interim Financial Reporting [Ind AS 34]
Important FAQ’s – Attached herewith.
By: CA. Kapileshwar Bhalla
MCA applicability from From 1st April, 2020:
Every Pvt Co. having Paid up share capital of Rs 10 Crore or more needs to appoint a Whole Time Company Secretary.
Every Pvt Co. having total outstanding debt of Rs 100 Cr. or more from Banks and Financial Institutions have to appoint Secretarial Auditor.
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👉🏻RBI denies banks' request for stay on asset classification norms amid COVID-19 Crisis
(RBI has denied a request from banks to put a stay on the asset classification norms, according to a reports)
👇🏻 👇🏻 👇🏻
https://bit.ly/2wPwOXb
👉🏻FinMin extends Motor, Health Insurance validity till April 21
( FinMin amended the law and extended validity of insurance papers till April 21, 2020. If your policy has expired in this time period (March 25-April 15) then you will get continuation of coverage and continuity of benefits)
👇🏻 👇🏻 👇🏻
https://bit.ly/2UCPzWx
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Central government collected Rs 10.27 trillion as direct taxes during 2019-20, a record shortfall of Rs 1.45 trillion, or 12.2 per cent, compared with the revised estimates (RE). This may prompt the revenue department, under the finance ministry, to reset its Budget math for 2020-21.
Government has issued an ordinance to give effect to the relaxation in several compliances including extension in last dates to June 30 for making investments in instruments such as National Savings Certificates, Public Provident Fund for claiming income tax benefits. Income tax Act, Benami Act are being sought to be amended via the ordinance - Taxation and Other LAws(Relaxation of Certain Provisions) Ordinance, 2020. The ordinance also seeks to amend the Income Tax Act to enable 100% deduction to donations made to the PM's Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund, set up to enable citizens to contribute to government’s containment efforts against the Covid-19 outbreak.
GST: Builder held guilty of profiteering and discount after increasing price cannot be considered as passing on of benefit of additional ITC. Pradeep Kumar (Applicant) Vs. Fusion Buildtech Pvt. Ltd.
GST collections in the month of March stood at a mere Rs 97,500 crore. In March CGST collections stood at Rs 19,183 crore, SGST at Rs 25,601 crore, IGST at Rs 44,508 crore and Cess at Rs 8,306 crore. With this, the full-year GST collection has grown only 4 per cent than the previous year. While the GST for the domestic transaction has shown a growth rate of 8 per cent in FY20, over the revenues last year.
Sebi has rejected promoters’ requests to exempt them from extending trading restrictions that apply at the time of results. The regulator had recently allowed listed companies to file fourth-quarter and annual earnings by June 30, rather than May 31. This means the trading window will have to be closed for promoters and management from April 1 till 48 hours after declaration of quarterly results. Sebi rejected the demand, saying insiders would still have access to most of the unpublished annual financials for FY20.
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GST down y 8 per cent in 6 days, worry mounts for April:
READ MORE- https://www.gststation.in/gst-down-by-8-per-cent-in-6-days-worry-mounts-for-april/
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👉🏻Donation to PM CARES Fund to be fully exempted under section 80G of I-T Act
(As the date for claiming deduction under section 80G of the IT Act has been extended up to June 30, the donation made up to that date will also be eligible for deduction from income of FY 2019-20.)
👇🏻 👇🏻 👇🏻
https://bit.ly/2UUn6dJ
👉🏻Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI) through KCC - RBI
(Short Term Crop Loans including agriculture gold loans into KCC loans by June 30, 2020 with commensurate extension of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit against such accounts till June 30, 2020)
👇🏻 👇🏻 👇🏻
https://bit.ly/2Juinub
👉🏻Govt issues Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020
(Govt has brought in an Ordinance on 31.03.2020 which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the Rules or Notification which are prescribed/ issued under these Acts)
👇🏻 👇🏻 👇🏻
https://bit.ly/2yjU7bK
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New Delhi: In order to give effect to the announcements made by the Union Finance Minister vide Press Release dated 24.03.2020, regarding several relief measures relating to
statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak, the govt has brought in an Ordinance on 31.03.2020 which provides for extension of various time limits under the Taxation and Benami Acts. It also provides for extension of time limits contained in the Rules or Notification which are prescribed/ issued under these Acts.
It may be noted that the outbreak of Novel Corona Virus (COVID- 19) across many countries of the world has caused immense loss to the lives of people, and accordingly, it has been termed as pandemic by the World Health Organisation and various Governments including Government of India. Social distancing has been unequivocally accepted to be the best way to contain its spread, leading to announcement of complete lockdown in the country. Keeping in view the challenges faced by taxpayers in meeting the compliance requirements under such conditions, the Union Finance Minister had announced several relief measures relating to statutory and regulatory compliance matters across sectors in view of COVID-19 outbreak on 24.03.2020 vide a press
release.
Some of the important features and time limits which get extended by this Ordinance are as under: - Direct Taxes & Benami:
Extension of last date of filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) to 30th June, 2020.
Extension of Aadhaar-PAN linking date to 30th June, 2020.
The date for making various investment/payment for claiming deduction under Chapter-VIA-B of IT Act which includes Section 80C (LIC, PPF, NSC etc.), 80D (Mediclaim), 80G (Donations), etc. has been extended to 30th June, 2020. Hence the investment/payment can be made up to 30.06.2020 for claiming the deduction under these sections for FY 2019-20.
The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20.
The date for commencement of operation for the SEZ units for claiming deduction under deduction 10AA of the IT Act has also extended to 30.06.2020 for the units which received necessary approval by 31.03.2020.
The date for passing of order or issuance of notice by the authorities under various direct taxes& Benami Law has also been extended to 30.06.2020.
It has provided that reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalisation Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.
Under Vivad se Vishwas Scheme, the date has also been extended up to 30.06.2020. Hence, declaration and payment under the Scheme can be made up to 30.06.2020 without additional payment.
Indirect Taxes:
Last date of furnishing of the Central Excise returns due in March, April and May 2020 has been extended to 30th June,2020.
Wherever the last date for filing of appeal, refund applications etc., under the Central Excise Act, 1944 and rules made thereunder is from 20th March 2020 to 29th June 2020, the same has been extended to 30th June 2020.
Wherever the last date for filing of appeal, refund applications etc., under the Customs Act, 1962 and rules made thereunder is from 20th March 2020 to 29th June 2020, the same has been extended to30th June 2020.
Wherever the last date for filing of appeal etc., relating to Service Tax is from 20th March 2020 to 29th June 2020, the same has been extended to30th June 2020
The date for making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 has been extended to 30th June 2020 thus giving more time to taxpayers to get their disputes resolved.
In addition to the extension of time limits under the Taxation and Benami Acts as above, an enabling section has got inserted in the CGST Act, 2017 empowering the Government to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council.
PM CARES FUND
A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Corona virus. The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund. Therefore, the donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on deduction of 10% of gross income shall also not be applicable for donation made to
As the date for claiming deduction u/s 80G under IT Act has been extended up to 30.06.2020, the donation made up to 30.06.2020 shall also be eligible for deduction from income of FY 2019-20. Hence, any person including corporate paying concessional tax on income of FY 2020-21 under new regime can make donation to PM CARES Fund up to 30.06.2020 and can claim deduction u/s 80G against income of FY 2019-20 and shall also not lose his eligibility to pay tax in concessional taxation regime for income of FY 2020-21.
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Here are some changes in income tax rules that will come into effect from April 1, 2020, as announced in Budget 2020:
1) New tax slabs, as announced in Budget 2020, will come into effect. However, the old tax slabs will also remain in effect, giving a choice to the individual to opt between the two.
Under the new tax rates announced in Budget, there is zero tax for income up to 2.5 lakh; 5% for income between 2.5 lakh and up to 5 lakh; 10% for income between 5 lakh and up to 7.5 lakh; 15% for income between 7.5 lakh and up to 10 lakh; 20% for income between 10 lakh and up to 12.5 lakh; 25% for income between 12.5 lakh and up to 15 lakh; 30% for income above 15 lakh.
But under this new lower tax rates, the individual will have to give up on a lot of deductions that could help reduce taxable income like standard deduction, the popular deductions under Section 80C, exemptions on house rent allowance, leave travel allowance (LTA) and the deduction on interest paid on home loans. Tax experts say whether an individual should choose the new tax regime or the old one depends on a case to case basis.
"The alternative tax regime will benefit relatively the young taxpayers as they would not be committed much to expenditures like insurance, tuition fees of children, etc. The same could also be said for senior citizen taxpayers as well. Availability of NPS deduction under both the options will certainly continue to give it a boost. The relief to startups for deferment of tax on ESOPs will certainly help ease cash flow issues for their employees on receipt of ESOP," said Sandeep Sehgal, director of tax and regulatory at Ashok Maheshwary & Associates LLP.
2) Dividends received from mutual funds and domestic companies will be taxable at the recipients hands. For example, dividends the recipients will earn from their mutual fund investments will be taxed at their slab rates. Earlier, the dividend was tax-free in the recipients hands but the mutual funds deducted a dividend distribution tax (DDT) at a rate of 11.2% for equity-oriented funds and 29.12% for debt-oriented funds.
The new tax regime from April 1 increases the tax burden on investors in higher tax brackets, while lowering it for people in low tax brackets. However, it is to be noted that TDS or tax deduction at source at the rate of 10% will be levied if the dividend received by an investor in a financial year exceeds 5,000.
3) If the employer's contribution exceeding 7.5 lakh in a year towards NPS, superannuation fund and EPF, it will taxable in the hands of the employee. This change in income tax rule will be applicable in both the old and new tax regime.
It should be noted that if an individual opts for the new tax slabs, he can still claim income tax deduction on employer contribution towards employee’s NPS account. If your employer is contributing towards your NPS account, a deduction of up to 10% of salary (basic + DA) irrespective of any limit qualifies for income tax deduction under Section 80 CCD(2). Central government employees enjoy a higher limit of 14% of the salary. For others, the limit is 10%.
4) For those who are buying house for the first time and if the value is up to 45 lakh, the government has extended the date for availing additional tax benefit by a year to March 31,2021. House owners who have taken loans to purchase homes up to 45 lakh will be eligible to claim an additional tax deduction of 1.5 lakh on interest in addition to the existing deduction of 2 lakh.
Earlier, this deduction was allowed on housing loans sanctioned on or before March 31, 2020.
5) In a relief to employees of startups, the new tax regime from April 1 allows deferment of tax payment on shares allotted to them under ESOPs or employee stock ownership plan. The new tax regime, from April 1, has deferred the tax payment from the exercise date to 48 months after exercise, cessation of employment or sale of shares, whichever is earliest.
Currently, ESOPs are taxable when the vested options are exercised by the employees
Thanks for reading
