1st June 2K20
Economic Times
Ø Govt decides to disinvest in certain pharma PSUs
Ø US moves closer to visa fee hike
Ø Early signs of recovery are encouraging: Panasonic
Ø LIC listing, IDBI Bank stake sale may be postponed
Ø Maharashtra govt extends lockdown in state till June 30
Ø India for TRIPs flexibility to ensure drugs’ access
Ø TCS revenue growth from Tata Group slows in FY 20
Ø Cognizant to retain digital talent in slowdown, anticipating recovery
Business Standard
Ø BEML to firm up partnerships with Czech, Japanese firms to indigenise tech
Ø Indian economy on course for full-year contraction: DBS Bank economist
Ø 17 independent power producers to forgo imported coal for domestic supply
Ø YES Bank acquires 24.19% stake in Dish TV through pledged shares
Ø Target 300 million tonnes: Steel companies gear up for value creation
Business Line
Ø RIL to be debt-free by year-end
Ø GSTN enables registration functionality for companies under IBC
Ø CBDT notifies I-T returns forms for 2019-20
Ø Dues from discoms land Easun Reyrolle in NCLT
Ø MSMEs seek quick action from banks on availing of credit facility
Ø Medical device industry to get over ₹3,000 crore boost
Mint
Ø Non-government GDP growth at lowest since FY09
Ø Biocon arm conducts trial for drug to treat severe covid-19 complications
Ø Toyota Kirloskar Motor posts sales of 1,639 units in May
Ø MFs invest ₹1,230 crore in equities during lockdown
Ø SBICAP Ventures reduces rate of return on funding stalled projects to 12%
Ø GST Council meeting likely to be held on June 14
Financial Express
Ø Covid opens door to ideas new and old for a better economy
Ø Indian economy on course for full-year contraction: DBS
Ø China’s manufacturing still sluggish as virus hits exports
Ø UPPCL seeks state guarantee for 21,000-crore PFC-REC loan
Ø Reliance converts Alok Industries into PPE maker; to produce Covid gears at one-third cost
Deccan Chronicle
Ø Global energy leaders call for greater investment in electricity systems
Ø Sebi fines Rs 3 crore on five entities in Bank of Rajasthan insider trading case
Ø Three Indian companies get licence to manufacture NASA's coronavirus ventilators
Ø Auto dealers seek higher sales margin, cost reduction measures amid Covid19 crisis
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👉 A member (judicial) of National Company Law Tribunal (NCLT) has moved the Delhi High Court against the order transferring him from the Mumbai Bench to the Kolkata Bench of NCLT.
The challenge is with respect to two transfer orders, dated April 30 and May 12, through which a number of members posted in various cities were transferred to different cities. This includes the transfer of the Acting President of NCLT, by the Acting President of NCLT, from Chennai to Mumbai.
Thus, such orders are contended to be "in violation of the statutory provisions of law, the rules of transfer and also the law laid down by the Hon'ble Supreme Court of India, in this regard."
The petitioner, who was appointed as a judicial member in May 2019 and posted in Mumbai, apprises the Court of the Order dated May 12, whereby it is informed that BSV Prakash Kumar, the Acting President, has been transferred to Mumbai by the competent Authority. The competent authority to order transfers is the President himself, adds the petitioner.
Apropos this, the petitioner goes on to highlight that the Order dated May 12, through which he was transferred to Kolkata, and a separate Order with the same date, through which Kumar was transferred to Mumbai, do not specify the authority under which they were passed.
Further, it is informed that Kumar was transferred out of Mumbai vide order dated 18.9.2018, the present transfer order is against the law.
"The action of the Respondent No.2 (Acting President, NCLT) in issuing the transfer orders transferring Petitioner, is in violation of rule 15A of the NCLT (Salary, Allowances & other Terms and Conditions of Service of President and other Members) Rules, 2015, as amended from time to time as also the law laid down by the Hon'ble Supreme Court of India.
The "competent authority'' is the President of the NCLT, so effectively, the second respondent has ordered his own transfer to Mumbai. Further, since Respondent no. 2 was transferred out of Mumbai on 18.09.2018, the transfer is in violation of Rule 15A(2)(d) of the NCLT Rules."
👉 Power transmission components manufacturer, Easun Reyrolle, has wound up in the insolvency courts.
Following the expiry of the deadline for submitting bids against a public notice calling for bids, the Resolution Professional, Benegal Parameshwara Udpa, will call for a meeting of the Committee of Creditors to take the issue further.
State Bank of India claims Easun Reyrolle owes it Rs 205 crore; Canara Bank claims another Rs 59.31 crore. While these two banks have proceeded against the company at the National Company Law Tribunal (NCLT), it is understood that a few other banks are owed moneys.
For the year 2018-19, the last year for which full-year financial results have been announced, the company achieved a turnover of Rs 88 crore (consolidated) and a reported a net loss of Rs 10 crore.
When contacted, Easun Reyrolle’s Managing Director, Raj Easwaran said he did not wish to make a comment. However, going by the company’s submission to the courts and its statements in the annual report for 2018-19, the company believes that its woes are due to the what it is owed by government companies, mainly the various state electricity distribution companies.
In its annual report, it notes its working capital cycle was severely affected by “slow collection from the Government sector undertakings.”
While the NCLT judgement (dated May 5) ordering corporate insolvency resolution proceedings against Easun Reyrolle notes that discoms owe the company Rs 103 crore, the company’s annual report for 2018-19 shows Rs 168.58 crore as ‘trade receivables’, of which Rs 136 crore were due for over a month.
The high overdues, from government-owned entities, resulted in “cash crunch and liquidity issues”.
Discoms owe electricity suppliers Rs 97,000 crore and are unable to pay, partly because while they are forced to supply power to farmers and poor sections of the society at zero or subsidized rates, they have not been getting the subsidy reimbursements from the state governments. State governments’ total subsidy dues to discoms are around Rs 54,000 crore. On top of that, the dues—in terms of unpaid bills— of state government departments are another Rs 60,000 crore. As a result of this, discoms have to borrow more from the market for their operations and are sitting on a Rs 2.5 lakh crore of debt, taking the annual interest burden on their heads. This situation has resulted in many companies, such as Easun Reyrolle—that supply to discoms (power, equipment and other services) pushed into bankruptcy.
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👉 New Delhi, May 31 (PTI) The Delhi High Court will hear on Monday a plea by an NCLT member (judicial) challenging the transfer orders issued by the National Company Law Tribunal acting president in April and May.
The plea, filed by Rajasekhar VK, member (judicial) seeking to set aside the order transferring him from NCLT Mumbai to Kolkata bench, is listed for hearing on June 1 before Justice V Kameswar Rao.
He has also challenged two other orders by which NCLT acting president BSV Prakash Kumar has transferred himself from NCLT Chennai to Mumbai bench and the transfer of eight other members, contending that the orders are illegal.
The acting president by April 30 and May 12 orders had shuffled the posting of the NCLT members.
The petition, filed through advocate Vandana Sehgal, also sought a direction to appoint an eligible member as the acting president, in place of Kumar.
Rajasekhar was appointed was NCLT member (judicial) on May 3, 2019 and was posted to the Mumbai bench.
The plea has sought a status quo in respect of postings of members of NCLT till the time a regular president is not appointed and that the president or acting president of the tribunal shall remain at the principal seat, that is Delhi, in terms of the statutory provisions.
The plea said Kumar has only worked as a district judge and as a member of Company Law Board before being a member of the NCLT and since he was not a high court judge, he was not eligible to be appointed as president, particularly, when Justice Rajesh Dayal Khare, a retired high court judge, was available and functioning as member (judicial) at NCLT, Allahabad bench.
"As acting president, the second respondent (Kumar) cannot ask for a transfer, nor can he be transferred to any place, as he has to remain at the principal bench at New Delhi so long as he is acting as president of the tribunal,†the petition contended.
👉 The National Company Law Appellate Tribunal (NCLAT) has issued a standard operating procedure for conducting virtual hearing of urgent matters from June 1. The appellate tribunal has decided to hear all urgent matters through video conferencing only from June 1, and all works, including mention of urgent matters, would be done online.
Court fee would be deposited online through Bharat Kosh, it said.
“In order to contain the spread of coronavirus (COVID-19), and after considering the various instructions and advisories relating to coronavirus control and lockdown issued by the government, Acting Chairperson, NCLAT has decided that all urgent cases will be heard through video conferencing mode from June 1, 2020,” the tribunal said in a communication.
For urgent matters, application has to be submitted only by e-mail to the registrar and if it is allowed, then a hard copy has to be filed as per procedure.
“After curing all the defects, the cases would be enlisted in the cause list to be published on the NCLAT website. The court fee shall be paid through Bharat Kosh,” it said.
Moreover, the mentioning application must contain a separate paragraph giving consent for taking up the matter through virtual mode. During the virtual hearing, parties would be permitted to rely upon only on documents filed with the application.
The tribunal has also asked lawyers and parties to have a stable and smooth connectivity of their devices such as desktop, laptop or tablet used for video conference.
The matters would be heard by the NCLAT through web-based video-conferencing system on the ‘Vidyo’ platform hosted on the servers of the National Data Centre of National Informatics Centre. Vidyo is also being used by the Supreme Court, which is also conducting virtual hearing in the wake of the lockdown.
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Income Tax New disclosures asked in the new ITR forms 1to7 are: 1. House ownership: Individual taxpayers who are joint owners of house property cannot file ITR 1 or ITR4.
Passport: One needs to disclose the Passport number if held by the taxpayer. This is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, it will be made mandatory in other ITR Forms as and when they are notified.
Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the FY.
Foreign travel: If you have spent more than Rs 2 lakh on travelling abroad during the FY, you need to disclose the actual amount spent.
Electricity consumption: If your electricity bills have been more than Rs 1 lakh in aggregate during the FY, you need to disclose the actual amount.
Investment details: Details of investment qualifying for deduction under chapter VIA with bifurcation of details of investment made during the period from April 1, 2020 to June 30, 2020.
For every assessment year, the last date for filing tax returns is July 31, However, this year ITR filing date has been extended till November 30, 2020 due to pandemic Covid-19.
Income Tax Exemptions and Deductions that you can claim under the New Tax Regime for FY 2020-21 (AY 2021-22): Withdrawal by an employee from the Employees' Provident Fund (EPF) is not taxable after 5 years of continuous service.
Withdrawal from National Pension Scheme (NPS) on maturity or premature closure up to 40% of the amount received on such withdrawal remains tax free for all. In case of partial withdrawal from NPS, up to 25% of the contributions made by the individual will be tax free. Employer’s contribution to NPS up to 10% of their basic salary and dearness allowance also remains tax free.
Under Section 10 (10D) of the Income Tax Act, the sum assured and any bonus paid on maturity or surrender of the life insurance plan is tax free. Maturity proceeds continue to be exempt under Section 10(10D) even in the new regime. The maturity amount including interest received on the Sukanya Samriddhi Yojana will not attract any tax.
Conveyance Allowance granted to meet expenditure incurred on conveyance in performance of duties of an office and any allowance granted to an employee to meet the cost of travel on tour or on transfer (including relocation) are tax free. Interest received from post office savings account balance up to ₹3,500 annually per individual will remain free from tax.
Any scholarship granted to meet education costs is tax exempt under Section 10 (16) of the Income Tax Act. Gratuity received from the employer up to ₹20 lakh after rendering 5 years of continuous service. Leave encashment received at the time of resignation or retirement up to ₹3 lakh.
Form 26AS will now be a complete profile of the taxpayer w.e.f. 01.06.2020, CBDT vide Notification dated May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. Key takeaways are:
New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.
Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal will also be shared in this form 26AS.
Information on this form 26AS will not be a one-time affair at year end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.
Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing. This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.
Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import , export etc. will also be put in this form 26AS so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.
This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.
The implication of this new form 26AS will be that banks , financial institutions or any other authority or customer , buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.
This will now make difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc.
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Ministry of Commerce issued PN 08/2015-2020 dated June 01, 2020 to increase the duration of validity of scrips issued under SEIS/MEIS and provided relaxation in last dates for filing application.
Summary
1. Validity of Duty Credit Scrips (issued between March 01, 2019 and June 30, 2018) extended till September 30, 2020.
2. MEIS application, which were attracting late cut as on March 01, 2020, shall continue in the same criteria, if filed till June 30, 2020.
3. a. SEIS application for FY 2016-17 - Late cut charges of 10% shall be applicable, if application is filed within June 30, 2020 and then shall become time barred.
b. SEIS application for FY 2017-18 - Late cut charges of 5% shall be applicable, if application is filed within June 30, 2020 and thereafter, 10% late cut charges for application submitted within March 31, 2021.
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