Corporate Snippets on June 29
Ø Govt. defers EOI deadline for Air India divestment to August end
Ø IRDAI asks insurers to offer Corona Standard Policy by July 10
Ø Employees allowed to claim I-T exemption on conveyance allowance under new tax regime: CBDT
Ø MEA to create online database of workers to map their skills
Ø Railways completes 200 delayed projects during lockdown
Ø Government launches 7.15% floating rate bonds
Ø Dexamethasone and remdesivir included in Covid-19 treatment protocol
Ø Piramal sells 20% in Pharmaceutical business to Carlyle for $490 mn
Ø Flipkart says 90% sellers back on platform, 125% rise in new MSMEs
Ø OIL pre-tax profit jumps two-fold in Q4 over reversal of deferred tax
Ø NTPC registers 14% increase in PBT in FY20 amid low power demand
Ø Adani Green Energy gets shareholders' nod to raise Rs 2,500 crore
Ø RBI can frame revival plan for all banks without imposing moratorium
Ø Weak assets of Indian banks may shoot up to 14% by March 2021: S&P
Ø EU narrows down on list of countries to allow travel, US may get dropped
Ø PMC Scam effect: Ordinance to bring cooperative banks under RBI regulation notified
Ø Requested Commerce Ministry to allow export of PPE kits: Nitin Gadkari
Ø New MSME definition to significantly help Gems, Jewellery Sector : GJEPC
Ø NHPC Net Profits dives 60 per cent to Rs 238.68 crore in Q4 of 2020.
Ø Google seeks patent for mobile device security for e-payments
Ø Rural development ministry presents funds requirement for Pradhan Mantri Gram Sadak Yojana
Ø India’s oil demand to rebound by September-end; recovery to be sooner than IEA, OPEC estimates
Ø Axis Bank clarifies S&P made an error by Downgrading it to Credit Watch
Ø SBI working on setting up e-commerce portal for MSMEs: Rajnish Kumar
Ø Govt. offers filing of NIL GST statement in form GSTR-1 through SMS
Ø RBI extends enhanced borrowing limit under MSF till 30 September
Ø Indian IT Professionals hit by US visa restrictions may look at Canada
Ø Infosys well-prepared to address H-1B Visa ban Challenges : COO
Ø Eight states contributed 85.5% of active virus cases, 87% of total deaths: Govt.
Ø Covid-19 Lockdown: MSMEs could see Profits decline by up to ₹1.2 Trillion
Ø China's Luckin Coffee to delist from Nasdaq
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👉 Relief in opting for Composition by Taxpayers & filing other Returns
https://www.gst.gov.in/newsandupdates/read/385
👉 Relief in payment of interest to Taxpayers filing Form GSTR-3B
https://www.gst.gov.in/newsandupdates/read/384
👉 Relief in late fee to Taxpayers filing Form GSTR-3B and Form GSTR-1
https://www.gst.gov.in/newsandupdates/read/382
👉 companies (Appointment and Qualifcation of Directors) 3rd Amendment Rules 2020Pdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Rule2_25062020.pdf
👉 companies (Meetings of board and its powers) 2nd Amdt Rules 2020Pdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Rule1_25062020.pdf
👉 National Online Quiz on Insolvency and Bankruptcy Code,2016 from 1st July,2020 -31st Jul,2020Pdf(23 KB)
http://www.mca.gov.in/Ministry/pdf/quiz_24062020.pdf
👉 Digital Accounting and Assurance Board, ICAI is organizing Live Webinar on Overview of SAP ERP on 03rd July, 2020 (Friday) from 4.00 to 6.00 PM
https://resource.cdn.icai.org/60040daab48933.pdf
👉 Committee for Members in Practice (CMP), ICAI along with IA is organizing a ICAI-Edinburgh Group Global SMP Webinar on Future Ready SMP - Vital for Global Economy from 5.30 p.m. to 8.00 p.m. on the eve of International SMP Day on 27.06.2020
https://resource.cdn.icai.org/59990cmp48886.pdf
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CARE : Latest on MSME
Ministry of Micro, Small and Medium Enterprises vide notification dated 26th June, 2020 has issued new guidelines for existing MSMEs and the upcoming MSMEs. Some highlights are as follows:
1. All existing enterprises registered under UDYOG AADHAR Memorandum shall register again on or after 01.07.2020
2. Registration will be called UDYAM Registration
3.Classification of Enterprises
4. Turnover Calculation
5. Investment calculation
6. Registration Process for new enterprises
7. Registration for existing enterprises
8. Facilitation and Grievance redressal of Enterprises
9. Information of Turnover will be linked to IT Act or CGST Act and GSTIN
10. Effective date will be 01.07.2020
For more info, please read at:- http://egazette.nic.in/WriteReadData/2020/220191.pdf
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COVID 19: Cost Accountants Institute issues Advisory on Disclosures in Audit Report [Read Advisory]
Read more at: https://www.taxscan.in/covid-19-cost-accountants-institute-issues-advisory-on-disclosures-in-audit-report/62151/
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ICAI announces Certificate Course on Forex and Treasury Management
Read more at: https://www.taxscan.in/icai-announces-certificate-course-on-forex-and-treasury-management/62142/
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👉🏻SEBI initiates process to recruit executive directors
(SEBI has begun the process for recruiting two executive directors for faster and more effective execution of regulatory work.)
👇🏻 👇🏻 👇🏻
https://bit.ly/2BJ71BQ
👉🏻GST में मिली बड़ी राहत | Further Extension of GST Due Dates
(GST में मिली बड़ी राहत | Big relief to tax payers - Further Extension of GST Due Dates, Notification No. 52/53/54 discussed by CA. Meenakshi Arora)
👇🏻 👇🏻 👇🏻
https://youtu.be/X9p82qEeDZ0
👉🏻Relaxation of time gap between two board/ Audit Committee meetings of listed entities - SEBI
(SEBI Circular Dated 24/06/2020 regarding Relaxation of time gap between two board/ Audit Committee meetings of listed entities owing to the CoVID-19 pandemic)
👇🏻 👇🏻 👇🏻
https://bit.ly/2BcS7nq
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👉 The National Company Law Tribunal on Friday asked the government to appoint two nominees to the governing body of Delhi Gymkhana Club as well as set-up a five-member committee to look into the alleged “irregularities”, officials told Hindustan Times.
The NCLT in its verbal judgment also said that the Delhi Gymkhana club, which is in the midst of a take-over battle by the Centre, will be allowed to make no “new policy decisions, appoint new members and/or begin new constructions”. The next date of hearing has been set at 7 September when the five-member committee will submit its report.
Delhi Gymkhana president Lt. Gen. D.R. Soni (retd.) said that the “club will work with whatever orders are issued”.
“We will do our best to follow whatever orders are issued, earlier restrictions have been continued,” Soni told Hindustan Times.
“This a big win for the government as the interim orders addresses the concerns that were raised,” an MCA official privy to the developments told Hindustan Times.
The Delhi Gymkhana, which shares a wall with the Prime Minister’s residence, has been under investigation for around three years. The central government has cited “parivarwaad” (nepotism), financial irregularities, misuse of allocated land and issues related to membership as the primary reasons behind its move to acquire the Delhi Gymkhana Club.
The ministry of corporate affairs (MCA) filed a petition, seen by the Hindustan Times, with the National Company Law Tribunal (NCLT) seeking to take over the premier club.
👉 When a company is a going concern, it is possible and sometimes inevitable for the inter se priorities of various creditors to be upset. To wit, a beneficiary of an ESCROW account stands to get his dues paid ahead of secured creditors thanks to the dedicated funds coming his way to pay off his dues. Indeed companies may comply even in the absence of an ESCROW account if the creditor supplies key raw materials or machinery the absence of which would bring production to a screeching halt.
But once the liquidation process kicks in, every one has to fall in the queue as per the waterfall mechanism laid down by Section 53 of the Insolvency and Bankruptcy Code, 2015 (IBC). This is the long and short of the salutary ruling of the National Company Law Appellate Tribunal (NCLAT) verdict of June 21, 2020, in the Surana Power case.
On January 20, 2019, the Chennai Bench of National Company Law Tribunal had admitted the insolvency plea against Surana Power. And as no resolution plan was approved, the company was ordered to be liquidated. During the liquidation process, BHEL succeeded in its arbitration case against Surana Power and an award was passed in its favour.
Based on the arbitral award, BHEL had been granted lien over the equipment and goods lying at the site of Surana Power. It had not dawned on the arbitrator that once a liquidator is appointed, his role came to an end. Strangely, BHEL too did not deem it fit to quietly bide its time as per the waterfall mechanism — the order of priority for payment when on liquidation funds are inadequate to pay off every claimant fully. Both allowed the arbitration to go through blissfully unaware or pretending to be unaware of the appointment of the liquidator.
Meanwhile, the liquidator, who was unable to make any headway on account of BHEL’s refusal to relinquish its security interest, approached the NCLT. However, his plea was rejected by the NCLT on November 20, 2019, mainly on the ground that BHEL is a secured creditor, entitled to realise its security interest outside the IBC waterfall mechanism. The NCLT had clearly erred. It was against this miscarriage of justice that the liquidator had moved the NCLAT.
And the Tribunal rightly rejected the claim of exclusivity of BHEL over Surana Power assets. Indeed the arbitration award was untenable as it is the fundamental principle of company law that if and when the liquidation process is rolled out, the liquidator becomes the single window for entertaining the claims and counter-claims of various creditors, secured and unsecured.
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CBDT amends Rule 2BB [which prescribes allowances for the purposes of Sec. 10(14)], allows exemption claim u/s. 10(14) in respect of salaried employees opting for new tax regime u/s. 115BAC, in certain cases(concessional tax rates);
Clarifies that such an assessee can claim exemption u/s. 10(14) only in respect of – 1) Tour / Transfer allowance, 2) Daily travel allowance
3) conveyance allowance and 4) Transport allowance for handicapped,
subject to the conditions mentioned therein;
Also amends Rule 3 [dealing with perquisites valuation], states that “the exemption provided in the first proviso in respect of free food and nonalcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC.”;
Amended Rule shall come into force from the 1st day of April, 2021 and shall accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years.
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GST UPDATE: DATE Extended (certain aspects)
Notification 55/2020 dt 27th June 2020
Date of Expiry of compliances for period between 20th March to 30th August is now 31st August 2020
Notification 56/2020 dt 27th June 2020
Date of Expiry of refund order extended to 31st August, 2020
It is only for
(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or
(b) filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above;
Such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below –
(a) Chapter IV;
(b) sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
(c) section 39, except sub-section (3), (4) and (5);
(d) section 68, in so far as e-way bill is concerned; and
(e) rules made under the provisions specified at clause (a) to (d) above;
#IndiaFightsCorona #StayHome #StaySafe #UnitedIndia
Source- Gazette of India
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Radicon Infrastructure & Housing denies benefit of ITC to buyers of Flat under Project ‘Vedantam’: NAA imposes Penalty [Read Order]
Read more at: https://www.taxscan.in/radicon-infrastructure-housing-denies-benefit-of-itc-to-buyers-of-flat-under-project-vedantam-naa-imposes-penalty/61958/
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GST: CBIC further extends Time Limit for Completion or Compliance of any Action, till Aug 30, 2020 [Read Notification]
Read more at: https://www.taxscan.in/gst-cbic-further-extends-time-limit-for-completion-or-compliance-of-any-action-till-aug-30-2020/62283/
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GST Update
Nil GSTR-1 File through SMS
New way to file GSTR 1 , in case of NIL return you can file with SMS from 1st week of July 2020.
The taxpayer who wish to file NIL statement in their FORM GSTR 1 are to send SMS to 14409 as NIL <space> R1<space> GSTIN <space> Tax period (in MMYYYY) .
For example :- NIL R1 09XXXXXXXXXXXZC 042020 ( for monthly return of period April 2020) or
NIL R1 09XXXXXXXXXXXZC 062020 ( for quarterly return of April-June 2020)
After this they will get a Six digit code with validity up to 30 minutes & can confirm their NIL statement filing by sending CNF<space> R1<space> Code to 14409 . On successful code validation , return will be filed & taxpayer will be receiving an Acknowledgement number through SMS.
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👉 City-based Vrihis Properties has emerged as a successful bidder for the Jet Airways' Bandra Kurla Complex-situated premises and the company has "decided" to accept its offer at Rs 490 crore, now-defunct Jet Airways said in a regulatory filing on Saturday.
The Jet Airways RP had issued a public notice on June 13 for the sale or transfer of third and fourth floors of the company's building in "Jet Airways Godrej BKC", by way of public auction at a reserve price of Rs 490 core.
"Pursuant to the e-public auction held on June 26, 2020, Vrihis Properties Private Limited has emerged as the successful bidder. The company has decided to accept the offer of the successful bidder for the transfer of the immovable property, at a price of Rs 490 crore.
"The proceeds from the sale will be utilised as per the directions of the NCLT, Delhi," Jet Airways' Resolution Professional said in the filing.
The successful bidder is not a part of the promoter group of the company or a group company and the proposed transaction will not qualify as a related-party transaction, the company said.
The insolvency professional had sought permission of the NCLT for the sale of the premises after a resolution was passed at the 10th committee of creditors (CoC) meeting held on April 24 with approval of 74.45 per cent votes.
The Principal Bench of the NCLT in its order on June 11 granted permission to the grounded airline to sell the premises for utilising the proceeds to settle Rs 360 crore dues of HDFC, as against the mortgage lender's claim of Rs 424 crore.
The immovable property is not a core asset of the company and will not impact its prospects of reviving its aviation business, the RP said in the filing.
The cash-strapped airline, which was grounded in April 2019, owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure.
The National Company Law Tribunal (NCLT) Mumbai-bench had on June 20, 2019, admitted the insolvency petition filed by the lenders' consortium led by State Bank of India against Jet Airways.
👉 The National Company Law Tribunal (NCLT) in a scathing interim judgment on Saturday said the Delhi Gymkhana Club still reeks of an “imperial mindset”, as it continues to embrace the colonial past and panders to the privileged and elites in keeping with its Lutyens’ Delhi setting.
“It is on record that soon after independence, the word “Imperial” is wiped off from the club’s name. But, I doubt whether it has been wiped off from its mindset,” stated the judgment, accessed by HT. “It is not a barb against the club…. there is no space to commoners unless they are positioned on the highest pedestal …”
On Friday, the NCLT had asked the government to appoint two nominees to the club’s governing body and also set up a five-member committee to look into the alleged “irregularities”, officials told HT.
The judgment said the club, which is in the midst of a takeover battle by the Centre, would be allowed to make no “new policy decisions, appoint new members and/or begin new constructions”.
September 7 has been set as the next date of hearing, when the five-member panel will submit its report.
The club, which shares a wall with the Prime Minister’s residence at 7 Lok Kalyan Marg, has been under investigation for around three years. The government has cited “parivarwaad” (nepotism), financial irregularities, misuse of allocated land and issues related to membership as the primary reasons behind its move to acquire the club.
The Union Ministry of Corporate Affairs (MCA) filed a petition, seen by HT, with the NCLT seeking to take over the club.
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👉🏻CBDT notifies certain exemptions to employees opting for lower Income Tax regime
(Central Board of Direct Taxes has now amended Income Tax rules to prescribe certain exemptions which can be availed by the employees)
👇🏻 👇🏻 👇🏻
https://bit.ly/2CRhKL9
👉🏻RBI extends enhanced borrowing limit under MSF till Sep 30
(RBI has also extended the relaxation on the minimum daily maintenance of the CRR at 80 per cent till September 25, 2020)
👇🏻 👇🏻 👇🏻
https://bit.ly/2AgHD6e
👉🏻20,000 Crore Subordinate Debt for Stressed mSMEs | MSME Series - Part 7
(Credit Guarantee Scheme for Subordinate Debt | Distressed Assets Fund - Subordinate Debt for Stressed MSMEs scheme notified by Govt of India and discussed by *CA. Vivek Khurana*)
👇🏻 👇🏻 👇🏻
https://bit.ly/2NAoorl
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CBDT has issued a Notification fot further extending the time limits of compliances under Income Tax Act:
Due date for filing Income Tax Return for F.Y 2019-20 has been extended to 30.11.2020 .
Due date for furnishing of report of audit under any provision of Income Tax for FY 2019-20 has been extended to 31.10.2020 .
Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31.07.2020 for FY 2019-20.
Government notified new norms to allow online registration of new enterprises based on self-declaration, doing away the requirement to upload documents and certificates, from July 1. Officials said that this has been made possible with the integration of the Udyam Registration process with the Systems of Income Tax and GST and the details filled in can be verified on the basis of PAN number or GSTIN details.
RBI governor said measures adopted by the central bank had ensured that interest rates had declined across the board. He was speaking at a meeting of the central board of the RBI that took stock of the economic situation and the impact of the loan repayment moratorium.
National Company Law Tribunal asked the government to appoint two nominees to the governing body of Delhi Gymkhana Club as well as set-up a five-member committee to look into the alleged “irregularities. The NCLT in its verbal judgment also said that the Delhi Gymkhana club, which is in the midst of a take-over battle by the Centre, will be allowed to make no “new policy decisions, appoint new members and/or begin new constructions”.
YouTube: If you want to see our previous Webinar Video and want to know about our forthcoming Webinars, Please Subscribe and Like our Raj Chawla YouTube Channel - https://www.youtube.com/channel/UCd5at_zoG6vM6WtuUxbaZQA?view_as=subscriber
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👉 Investors had a huge sell-off in The Investment Trust Of India stock price on Monday after the company received NCLT approval for merging its reinsurance arm under its ambit.
The stock has touched a lower circuit of Rs95.20 per piece tumbling by 5% on Sensex at around 12.30 pm.
In its notification, the company informed that "the Order passed by the National Company Law Tribunal (NCLT) Mumbai Bench for approval of Scheme of Amalgamation of ITI Management Advisors Limited (formerly known as ITI Reinsurance Limited) a wholly-owned subsidiary with The Investment Trust of India Limited and their respective shareholders & creditors".
The company had received the approval last week.
The Investment Trust of India is primarily engaged in the financial services business including stockbroking, underwriting, portfolio management, corporate advisory services, financial advisory, asset management, fund mobilization, lease financing and other financial services.
On Sensex, the stock opened at Rs99.45 per piece slightly lower compared to the previous closing of Rs99.80 per piece.
👉 he Insolvency and Bankruptcy Code(Amendment) Ordinance, 2020 (ordinance), provides that no application to start a corporate insolvency resolution process (CIRP) in respect of a corporate debtor may be made for any default arising on or after 25 March 2020 for a period of six months, which may be extended to one year, and that no application shall be filed at all for any default occurring in that period of six months. It is therefore important that operational creditors reassess their recovery strategies. These measures are beneficial and intended effectively to divert the cash flow of debtors from financial creditors to operational ones in a bid to address the present lack of liquidity.
To comprehend this, it is necessary to understand how operational creditors would have fared without the suspension of the Insolvency and Bankruptcy Code, 2016 (IBC), especially as the Supreme Court in Committee of Creditors of Essar Steel India Limited v Satish Kumar Gupta has held that most operational creditors are unsecured. Operational creditors are thus ranked just above shareholders under the IBC waterfall mechanism.
The IBC suspension has to be understood in the context of key measures introduced by the government and the Reserve Bank of India (RBI). These include the freezing of asset classification downgrades; the extension by the RBI of the one-time settlement scheme for micro, small and medium enterprises (MSME) to 31 December 2020; the proposed resolution framework for MSMEs under section 240A of the IBC; the boost by the RBI to small industries through a special refinance facility for the Small Industries Development Bank of India, and the RBI’s COVID-19 Regulatory Package. This last measure provides for the rescheduling of payments of term loans and working capital facilities, the extension of the moratorium by financial creditors, and allowing lenders to defer the recovery of interest in respect of cash credit, overdraft and related facilities until 31 August 2020. These measures are all aimed at increasing liquidity and putting back the preference of payments to financial creditors.
The government has not, however, completely reversed the effects of the IBC. Section 10A as inserted by the ordinance provides that the IBC suspension is not a blanket one. Defaults prior to 25 March 2020 can be taken before the National Company Law Tribunal (NCLT) under the IBC. Many non-performing asset accounts in respect of which the 180-day resolution period in the RBI’s prudential framework expired before 1 March 2020 have yet to be taken to the NCLT. The RBI issued notifications dated 17 April and 23 May 2020 clearly stating that in respect of all other accounts the provisions of the prudential framework shall be in force without any modifications.
