27th May 2K20
Ø Fitch projects Indian economy to contract 5% this fiscal
Ø GDP growth seen at 1.2% for Q4 FY20: SBI report
Ø 67% of 92 FPOs' biz hit due to COVID-19 lockdown
Ø Discoms to get interim relief from Rs 90K cr: IndRa
Ø States deficit jumps to 4.5 pc of GDP: Report
Ø India jobless rate continues to hover above 24%
Ø Firms may get input tax credit for masks, PPEs
Ø Reliance Power wins lawsuit challenging validity of arbitration award
Ø Govt to ask Central PSUs to ramp-up dividend payouts, share buybacks
Ø Revised inter-creditor pacts may do away with need for 66% lenders' nod
Ø PFC lends Rs 22,000 cr to Narmada Basin Projects for 225 Mw hydel project
Ø JSPL's Q4 consolidated profit at Rs 306 cr, cuts net debt by Rs 4,379 cr
Ø India Ratings estimates States borrowings at ₹8.25-lakh cr in FY2020-21
Ø PSBs to provide emergency credit to MSMEs at 7.5% interest rate
Ø Resolution of stressed thermal power assets set to trip
Ø JK tyre rolls out its 20 millionth Truck/Bus Radial tyres
Ø Tata BlueScope launches smart steel structures to fight Covid-19
Ø Bharti Airtel promoter sells over $1 bn stake to Societe Generale, others
Ø Mukesh Ambani may consider overseas IPO for Jio Platforms
Ø Warner Music kicks off $1.8 billion Nasdaq IPO
Ø Reliance's rights issue subscribed 3.13% on Day 4
Ø Tech due diligence will be top priority for firms eyeing M&As
Ø India facing its worst recession in current fiscal, says Crisil
Ø SC issues notice to Centre, RBI on plea against interest on loans during moratorium
Ø Vedanta seeks shareholders nod for delisting; e-voting till June 24
Ø RBI to auction 84-day CMBs worth Rs 80,000 crore
Ø Singapore cuts GDP outlook again as virus batters economy
Ø India's Glenmark to test potential covid19 drug combination
Ø Oil climbs as suppliers stick to output cuts, coronavirus lockdowns ease
Ø India may need to pump $20 billion into state banks
Ø April manufacturing IIP to contract by 50-60%: Report
Ø One in six young people out of work due to Covid: ILO
Ø Renault and Nissan rule out merger, unveil survival plan
Ø NCLT approves IL&FS stake sale in GIFTCL to Gujarat
Ø Cos' PM Fund donations to qualify as CSR expenditure
Ø India, Australia bilateral virtual summit on June 4
Ø India's Q1 GDP may contract 40%, states to lose Rs 30 trillion: Report
Ø Anti-dumping duty likely on a rubber imported from China, 3 other countries
Ø Govt may launch coal blocks auction under commercial mining on Jun 11
Ø JP Morgan chief economist forecasts 'strong rebound' in Indian markets
Ø Exchanges report 38% decline in daily average commodity volumes in May
Ø Sebi unlikely give result disclosure waiver to India Inc for Q1FY21
Ø GDP growth may rebound to 5% in FY22: Former RBI governor
Ø Government considering to bring natural gas under GST: Petroleum Secretary
Ø If plans fructify, NHPC will become world’s largest floating solar company
Ø Dabur Q4 profit slides 24% due to Covid-19 impact
Ø NTPC eyes majority stake in ADAG’s Delhi power utilities
Ø IndiGrid InvIT expects to continue growth trajectory in FY21
Ø Now, Microsoft looks to grab a $2 billion stake in RIL’s Jio Platforms
Ø Sun Pharma delays FY21 sales guidance on covid-19 uncertainty
Ø Adani Power gets nod to set up 1,320 MW plant in Madhya Pradesh
Ø Patanjali to hit bond markets, to issue NCDs
Ø SBI to automatically extend moratorium by another three months
Ø Dabur India net profit slumps 24% in Q4; Chyawanprash sales surge
Ø Need for growing NDB into global development institution: FM Nirmala Sitharaman
Ø India initiates anti-dumping probe into imports of polyester yarn from 4 countries
Ø ICRA expects muted participation in spectrum auction, sees industry debt rising
Ø Despite pandemic, Tamil Nadu attracts 17 investors worth Rs.15,128 Cr
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Issues emerging From Covid 19
AVAILABILITY OF ITC ON MEDICAL INSURANCE?
Section 17(5) of the CGST Act blocks ITC on health insurance service.
However, ITC is available where an employer is obliged under any law to provide the same to employees.
The Ministry of Home Affairs vide Order No.40-3/2020-DM-I(A) dated April 15, 2020 prescribed Standard Operating Procedure (‘SOP’) to be followed by factories, offices, workplaces and other establishments.
This SOP made medical insurance mandatory for workers. The said order and SOP was applicable only till May 17, 2020 and then withdrawn by latest MHA Order dated May 17, 2020.
Through SOP, insurance has been made mandatory for workers, SOP is meant for all type of organisations like factories, offices etc. Thus, the word ‘workers’ under SOP should be read as employees and contractual workers.
Hence, taxpayers can claim ITC on medical insurance policy taken for its employees, contractual workers only if such policy was taken between April 15, 2020 and May 17, 2020.
However, ITC shall continue to be available for insurance taken to comply any law in force.
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Voluntary Transfer Pricing adjustment eligible for Income Tax Deduction u/s 10AA: ITAT grants Relief to EY [Read Order]
Read more at: https://www.taxscan.in/voluntary-transfer-pricing-adjustment-eligible-for-income-tax-deduction-u-s-10aa-itat-grants-relief-to-ey/58872/
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👉 The NCLAT has set aside an NCLT order to implead the Corporate Affairs Ministry as a party in all proceedings related to insolvency and company matters before it.
Allowing the plea filed by the Ministry of Corporate Affairs (MCA), a two-member bench of the appellate tribunal said the NCLT's direction was "beyond the power" and amounted to "imposition of a new rule in a compelling fashion".
Earlier, in an order on November 22, 2019 the principal bench of the National Company Law Tribunal (NCLT) has directed to make MCA a party in all applications filed under the Insolvency and Bankruptcy Code as well as the Companies Act before all benches, so that authentic record is made available by the office for proper appreciation of the matters.
Rejecting the order, the NCLAT said: "The impugned order making it applicable throughout the country to all the Benches of the National Company Law Tribunal is untenable one and the said order suffers from material irregularity and patent illegality in the eye of Law".
"As a logical corollary, this Tribunal set aside the impugned order dated November 22, 2019 in (IB)-939(PB)/2018 in furtherance of substantial cause of justice. Consequently, the present Appeal succeeds," said a two-member NCLAT bench comprising Justice Venugopal M and V P Singh.
The National Company Law Appellate Tribunal (NCLAT) said the order was passed by the NCLT to ensure that authentic record is made available by the MCA officers for proper appreciation of the matter but "such a wholesale, blanket and omnibus directions cannot be issued in single stroke".
👉 Liquidation of companies under the Insolvency and Bankruptcy Code (IBC) continues to account for a larger share than resolution of such entities, Care Ratings said in a report, citing data from the Insolvency and Bankruptcy Board of India (IBBI).
Of the total 3,774 cases admitted for resolution under IBC, 57% continue to still remain in the resolution process and 914 have ended in liquidation (24% of the total cases admitted).
According to the data, around 9% of cases have been closed on appeal or review or settled and 4% have been withdrawn under Section 12A of the IBC.
Mint reported on 20 May that the January-March quarter of fiscal 2019-20 was quite fruitful for banks in terms of stressed asset resolution and recovery under IBC, with lenders realising 64% of their dues. This was primarily led by ₹23,223 crore coming from the resolution of Jaypee Infratech Ltd.
While Jaypee's insolvency proceedings began in August 2017, the resolution plan was approved just two months ago, with state-owned NBCC emerging as the successful buyer of the troubled company. The resolution plan for Jaypee Infratech, however, has been challenged in the National Company Law Appellate Tribunal (NCLAT).
“The number of cases admitted for corporate insolvency resolution processes (CIRPs) over the last 11 quarters has increased significantly and has been generally increasing every quarter, with a major portion of these cases being admitted over the last eight quarters, thereby highlighting the rising acceptance of IBC as an effective debt resolution mechanism," Care Ratings said.
The cumulative share of operational creditors, the report said, increased to 56% at the end of Q4 FY20 from 51% at the end of Q1 FY20, while financial creditors’ share remained at a similar level as of end of Q1FY20. The manufacturing sector accounts for the highest share at 40% of the overall cases followed by real estate (20%), construction (11%) and trading sectors (10%).
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Its a pleasure to inform that after successful implementation of E-hearing, the disciplinary mechanism of ICAI has been further digitized and a separate portal https://disc.icai.org has been hosted.
On this portal all pertinent information related to disciplinary mechanism of ICAI is available such as *procedure to file complaint (physically or through e-filing), Cause List, Orders passed by the Disciplinary Committee, Committee compositions, details of meeting(s), etc.
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✅ Empanelment of CAG -2020-21 (Provisional)
Status of provisional empanelment of the firms and provisional point score for the year 2020-2021 had been furnished on the website @ www.care.cag.gov.in from 28 May 2020 till 4.June 2020.
Complement for rectification of clerical mistakes in the data should become sent by email at sao2ca5@cag.gov.in by 4 June 2020.
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👉 In an appreciable move, the Bengaluru Bench of the National Company Law Tribunal has decided to conduct an online training programme to make Advocates and other stake holders in the Tribunal familiar with its e-filing software.
As the e-filing system is running successfully in some of the NCLT's benches, the principal Bench of NCLT at Delhi has decided to extend this benefit to all its benches. It has been intimated that the online Court system for e-filing will enable online filing of petitions, IAs, objections, re-joinder, etc.
Accordingly, NCLT Bengaluru has decided to provide training to all Advocates, practicing Company Secretaries, practicing Chartered Accountants and practicing Cost & Management Accountants today, i.e. May 27, 2020.
Yesterday, speaking at the inauguration ceremony of the Virtual Courts for Traffic Challan cases at the Madras High Court, Supreme Court Judge, Justice DY Chandrachud had emphasized that the courts' focus must be on imparting training to lawyers in operating e-courts, to make them 'e-enabled'.
👉 The National Company Law Tribunal (NCLT) has allowed the debt-ridden IL&FS to sell its 50 per cent stake in the GIFT City to the Gujarat government for an aggregate consideration of Rs 32.70 crore.
A two-member NCLT bench headed by acting president B S V Prakash Kumar allowed IL&FS to sell its 3.27 crore shares, having a face value of Rs 10 each, of the Gujarat International Finance Tec-City Company Limited (GIFTCL) or GIFT City to the Gujarat Urban Development Company Ltd (GURDCL).
While granting permission, the tribunal observed, "It is evident that the sale consideration is higher than the fair market value of the stake of the applicant in GIFTCL" as determined by RBSA, the agency appointed for valuation.
The GIFT City is India's first operational smart city and international financial services centre in Ahmedabad, Gujarat.
Sale of stake in the GIFT City is a part of the resolution process of the IL&FS, which along with its over 300 group companies had a cumulative debt of Rs 94,215 crore. The newly constituted board of the company has decided to adopt an "asset level resolution" with regard to various group companies and entities.
In 2007, IL&FS had entered in to a Memorandum of Understanding (MOU) with the Gujarat government to develop an integrated township/ International Financial Services City (IFSC).
The joint venture agreement provided an exit option to either of the parties with a right of first refusal to the other.
In January 2019, when IL&FS communicated its intention to divest the shareholding in GIFTCL, the Gujarat government also expressed its willingness to purchase IL&FS shares.
The sale was subsequently approved by IL&FS' Committee of Creditors in terms of the approved resolution framework and was placed before Justice (Retd) D K Jain who supervises the operation of IL&FS resolution process.
IL&FS thereafter moved the NCLT to consummate the sale agreement.
While approving the sale, the NCLT said sale of shares of the GIFT City held by IL&FS to GURDCL shall be €œfree and clear from all encumbrances, liens, security interest and third-party claims including any statutory or tax claims€? upon receipt of sale consideration.
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