Tran-1
Hon’ble Delhi High Court has held that period of 90 days for claiming input tax credit in TRAN-1 is directory and therefore, period of limitation of 3 years under the Limitation Act would apply. The Court has directed the Department to allow all assessees to claim input tax credit in TRAN-1 by 30.6.2020. The direction would apply in rem to all those who could not file TRAN-1 and claim input tax credit*
The court has further directed that it should be advertised that all taxpayers who have not filed TRAN 1 can do so by 30.6.2020. The judgment has been made applicable to all irrespective of whether the taxpayer has approached the court or not.( Judgment yet to be uploaded on HC site)🙏
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🌹 GST Update
1.) Annual Return and GST Audit
For the finacial year 2018-19: GSTR-9 & GSTR-9C due date extended to 30th September 2020.
Source: Notification No. 41/2020
2.) E-Way Bill
Validity of E-Way Bill issued on or before 24th Mar 20 expiring between 20th Mar 20 to 15th Apr 20, extended to 31st May 2020.
Source: Notification No. 40/2020
3.) GSTR-3B EVC
Companies can now file GSTR-3B (from 21st Apr 20 to 30th June 20) through EVC mode.
Source: Notification No. 38/2020
4.) Nil Return
GST Nil Return can be filed by a short SMS vide insertion of rule 67A
Source: Notification No. 38/2020
5.) RP/IRP Registration
IRP / RP, be treated as a distinct person of the corporate debtor, and shall be liable to take a new registration in each of the States or Union territories where the corporate debtor was registered earlier.
Source: Notification No. 39/2020
6.) Clarification on returns of J&K, Ladakh
GSTR-3B to be filed as per notification due dates.
Source: Notification No. 42/2020
Source: CG-DL-E-05052020-219298, The Gazzete of India
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👉 Investors who have bid for assets under the Insolvency and Bankruptcy Code (IBC) are expected to reassess their offers as cash flow projections have gone awry amid the covid-19 pandemic and the ensuing nationwide lockdown, experts said.
The Insolvency and Bankruptcy Board of India (IBBI) has already said the period of lockdown imposed by the government will not be reckoned in the resolution timeline. The lockdown has been in force since 25 March and ends on 18 May, if not extended further.
Karan Mitroo, partner at law firm Luthra & Luthra said, the entire thought process of investors has changed due to covid-19 and investors are trying to assess its potential impact on businesses.
“There is a likelihood of resolution applicants, who have already submitted bids, negotiating the pricing again, since the financial assumptions on which they had bid may have changed on account of covid-19," said Mitroo, adding that bidders may also use clauses like Material Adverse Effect or similar clauses, if the same have been provided in the resolution plans for such negotiations.
Since its inception, the IBC process has been mired in last-minute litigations with promoters trying hard to retain control of their companies. Take for instance - the case of Essar Steel. While IBC prescribes any asset resolution within 330 days, Essar Steel’s resolution and sale to ArcelorMittal took 866 days.
👉 National Company Law Tribunal invites application for the post of Law Research Associates purely on contractual assignment.
Name of the Post: Law Research Associates
Essential Qualification and Experience
Law Graduates (fresh or experienced) who have passed final year L.L.B examination with a minimum aggregate of 50% marks from a recognized university.
The candidate must be enrolled with any Bar Council.
The age of the candidate shall not be above 30 years as on last date of receipt of applications.
The candidate must have knowledge of computer operation including retrieval of desired information from various search engines/ processors such as Manupatra, SCC Online, etc.
How to apply?
The interested candidates who are willing to serve in the NCLT may submit their applications on the enclosed format at the address along with self-attested copies of requisite certificates to The Assistant Registrar, National Company Law Tribunal, 6th Floor, Block No. 3, C.G.O. Complex, Lodhi Road, New Delhi - 110 003.
The last date to apply is 01.06.2020
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Grant of Income Tax refund u/s 143(1):
Till AY 2016-17, if a scrutiny notice u/s 143(2) is issued, the return is not required to be processed u/s 143(1) for grant of refund to the assessee. From AY 2017-18 & onwards, a different regime is prescribed by Parliament. S. 241-A requires separate recording of satisfaction on part of the AO that having regard to the issue of notice u/s 143(2), the grant of refund is likely to adversely affect the revenue. The withholding of refund requires the previous approval of the PCIT with reasons to be recorded in writing. Vodafone Idea Ltd vs. ACIT (Supreme Court)
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Validity of E-Way Bill issued on or before 24th Mar 20 expiring between 20th Mar 20 to 15th Apr 20, extended to 31st May 2020
Source: Notification No. 40/2020
NBFC and microfinance institutions (MFI) want the Reserve Bank of India (RBI) to extend the moratorium till at least June 30 — for both customers and para-banking institutions — and allow the restructuring of NBFC loans due to banks.
MCA has constituted a seven-member committee to examine the comments received on the consultation paper floated by it for enhancing audit independence and accountability in the country. The committee will examine the comments and make recommendations requiring any amendments in law, rules and standards to achieve the objective of enhancement of audit independence and accountability. The panel has been asked to submit its report by June 30. The committee members are: Amarjit Chopra, Past President of CA Institute; KVR Murty, Joint Secretary, MCA; PR Ramesh, former Deloitte India Chairman; Ajay Bahl, Co-Founder & Managing Partner, AZB Partners; Sridhar Pamarthi, Joint Director, MCA; NK Dua, Joint Director, MCA, and Atma Sah, Deputy Director, MCA.
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GST TRAN 01 Update
HC held that period of 90 days for claiming input tax credit in TRAN-1 is directory and therefore, period of limitation of 3 years under the Limitation Act would apply. The Court has directed the Department to allow all assessees to claim input tax credit in TRAN-1 by 30.6.2020. The direction would apply in rem to all those who could not file TRAN-1 and claim input tax credit. The court has further directed that it should be advertised that all taxpayers who have not filed TRAN 1 can do so by 30.6.2020. The judgment has been made applicable to all irrespective of whether the taxpayer has approached the court or not.
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FAQ ON UDIN FOR BANK AUDIT BY ICAI:
1. Whether UDIN is mandatory for Statutory Bank Audit?
For Statutory Bank Audit, UDIN is not mandatory.
However, for all Certificates to be signed while conducting Bank Audit, generation of UDIN is mandatory as UDIN is already mandatory on all Certification w.e.f 1st, 2019.
2. While conducting Bank Audit, whether separate UDIN has to be taken for all Certificates as there are bulk of certificates to be signed?
UDIN has to be generated per Assignment per Signatory.
In Bank Branch Audit, One Branch is one assignment, hence, one UDIN for all certificates will suffice.
However, care should be taken that a list of all certificates bearing same UDIN should be compiled and handed over to management under a covering letter so that the UDIN generated cannot be misused by affixing on any other certificate which has not been signed by you.
3. In case if some Certificates are signed by one Partner while others are signed by another Partner, whether different UDIN is required for each such Partner?
UDIN has to be taken per Assignment per Signatory.
Bank Branch Audit per Branch is one assignment and hence one UDIN for all certificates is enough.
However, if different partners are signing different certificates then separate UDIN has to be taken per signatory for the certificates signed by them.
4. Whether UDIN is mandatory for Tax Audit?
In the 2nd phase of UDIN applicability, ICAI Council has made generation of UDIN mandatory for all GST Audit and All Tax Audit from 1st April, 2019.
Hence in Bank Branch Audit, separate UDIN has to be taken for Tax Audit.
5. Whether same UDIN which was generated for Certificates in Bank Branch Audit can be used for Tax Audit of the same Bank Branch?
Tax Audit is the separate assignment.
Hence separate UDINs have to be taken while conducting Bank Branch Audit for each Branch.
Therefore, 2 separate UDINs are to be generated – one for Certificates and other for Tax Audit Report.
However, if certificates are signed by more than one partner then more UDINs on certificates have to be generated.
6. Whether UDIN is applicable to both Statutory Central Auditors (SCAs) and Statutory Branch Auditors (SBAs)?
Yes, UDIN is applicable to both SCAs and SBAs for Certificates and Tax Audit Reports while conducting Bank Audit.
7. Whether UDIN is to be generated for LFAR and / or other Bank Audit Reports?
As per UDIN applicability in 2nd Phase, UDIN is not required to be generated for LFAR and other Bank Audit Reports now.
8. What is the process to generate UDIN for certificates under Bank Audits?
For generating UDIN, the “Document type” is to be selected as “Certificates”.
Thereafter, date of signing of the document is to be mentioned. Under “Type of Certificate” select “Certificate issued by Statutory Auditors of Banks”.
There are 3 mandatory fields for entering the financial figures / values from the document and the description of the figure/ value so entered.
The names of the Certificates are to be mentioned under the Caption “Document Description”.
9. How to generate one UDIN for more than one Certificate when there are 3 mandatory filled to be given from the Certificates?
While generating one UDIN for all the Certificates, some common figures /parameters should be given in 3ZS mandatory fields and if no common figure is there then name of the Bank and Branch, Advances, Deposits etc must be the one common field which can be correlated with all the certificates.
10. Whether UDIN is mandatory for Tax Audit Reports that are filed online using Digital Signature?
UDIN will be applicable both for manually as well as digitally signed Reports / uploaded online.
In case of digitally signed / online reports, UDIN has to be generated and retained for providing the same on being asked by any third party/ authority.
ICAI FAQ
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👉 The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the sale of Uttam Value Steel Ltd and Uttam Galva Metallics to a joint consortium of CarVal Investors and Nithia Capital Resources Advisors for ₹2,300 crore, said a person aware of the development.
“This is among the first resolutions where the corporate insolvency resolution process (CIRP) of two companies worked in tandem. The two companies are interlinked in terms of production and therefore getting two different resolution plans for them made no sense," said the person quoted above. He added that Uttam Galva Metallics was filed in NCLT Chandigarh, the petition against the other company was filed in Mumbai.
these connected companies, the case was transferred from Chandigarh to Mumbai," the person said.
The resolution plan would allow lenders to get close to 40% of their claims for both the companies. While the resolution professional (RP) admitted ₹3,634 crore of financial creditor claims in Uttam Galva Metallics, it was at₹2,479 crore for Uttam Value Steel, as on 9 April. Union Bank of India has the highest exposure in Uttam Galva Metallics at ₹921 crore, followed by Bank of Baroda at ₹680 crore and Punjab National Bank at ₹571 crore, among others.
Union Bank of India also has the highest exposure in Uttam Value Steel, at ₹589 crore. The other lenders are Punjab National Bank at₹466 crore, State Bank of India at ₹416 crore and Bank of Baroda at ₹277 crore, among others.
While the joint resolution plan was approved by the committee of creditors (CoC) in April last year, SSG Capital, the other bidder for these assets contested the decision. The case to decide on SSG’s claims was then heard by a two-judge bench in Mumbai NCLT, where both judges took opposing views. The matter was then heard by the principal bench of the NCLT in New Delhi which dismissed SSG’s plea.
👉 The National Company Law Tribunal (NCLT) has approved the resolution plan submitted by a consortium of CarVal Investors and UK-based Nithia Capital Resources Advisors to acquire debt-laden Uttam Value Steels Ltd under insolvency proceedings.
The NCLT’s Mumbai bench, in its order on April 30, said the resolution plan submitted by a consortium of CarVal Investors LLP (Carval Funds) and Nithia Capital Resources Advisors LLP stands approved, Uttam Value Steels informed the stock exchanges.
In June 2018, the Mumbai-based iron and steel manufacturer, along with another associate firm Uttam Galva Metallics Ltd, was admitted for resolution under the Insolvency and Bankruptcy Code (IBC).
While the corporate insolvency resolution process (CIRP) of Uttam Galva Steels was withdrawn by petitioner State Bank of India (SBI) on November 1, 2018, Uttam Value Steels continued to be under the IBC process.
Engaged in the manufacturing of steel and capital equipment products, Uttam Value Steels’ admitted claims as on August-end 2019, stood at Rs 196 crore.
In April 2019, lenders-led by SBI had approved the resolution plan of a consortium of Arcil and CarVal Investors, an arm of US-based food and agriculture group Cargill Inc., which had offered the sum for two stressed units of Uttam Galva – Uttam Value Steels and Uttam Galva Metallics.
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