Ø Saudis raise July Arab light crude price to Asia by $6.10
Ø PSBs disburse Rs 8,320-cr loan to MSMEs
Ø HUL to focus on e-commerce, modern trade channels
Ø SEBI censures Astrazeneca Pharma's promoters
Ø Complete IBC suspension for defaults may hurt creditors
Ø MHA holds discussions with 17 cos for making arms
Ø AstraZeneca approaches Gilead about potential merger
Ø Banking to be a 'strategic sector', Govt. discussing privatising some PSBs
Ø Jio Platforms' 7th deal in less than 7 weeks: Abu Dhabi Investment Authority to invest Rs 5,683.50 cr
Ø India's steel demand likely to fall by 18% in 2020, Worldsteel report
Ø Gross direct tax collection declines 4.92% to Rs 12.33 trn in FY20
Ø Saving viable cos more important than liquidating unviable ones: IBBI chief
Ø Govt. to invest ₹1 lakh crore to ramp up coal production: Pralhad Joshi
Ø Brigade Group to reopens its hotels from June 8
Ø District-level growth will spur national growth: Suresh Prabhu
Ø Brookefield likely to buy Emami Power
Ø CCI pulls up Tata Steel, 3 others for cartelisation
Ø L&T has a bulging order book, but labour shortage is a hurdle
Ø Steel mills revived production in May
Ø Risk-averse lenders press pause on new home loans
Ø Saudi Arabia makes biggest oil price hike in 20 years after Opec+ cuts
Ø Recovery prospects for MFs’ stressed assets turn bleak
Ø Economy to take further hit after likely 5% contraction, 10% permanent GDP loss if these risks materialise
Ø Make in India: Govt. takes another move to give more preference to local suppliers
Ø Cool weather, lower industrial consumption widens power demand slump to 19.7% in June first week
Ø OPEC, Russia extend record oil cuts to end of July
Ø China exports fall 3.3% in May, imports shrink 16.7%
Ø CRISIL affirms Yes Bank's Rs 18,000 crore bonds rating at BBB
Ø Despite disagreements, US offers help in cleaning huge Russian oil spill
Ø India's economy to contract by 3.2% in FY 20-21: WB
Ø RBI proposes easier securitisation, loan sale guidelines
Ø World faces largest downturn since 1940s: World Bank
Ø India plans to hike edible oil import taxes
Ø RBI proposes framework for sale of loans
Ø Third case filed against Franklin for shutting schemes
Ø ONGC Videsh output may fall in FY21
Ø Bank credit growth to hit multi-decade low of 0-1% in FY21: CRISIL
Ø IBC suspension during Covid-19 will give firms breathing space: Experts
Ø Telecom sector may remain three-player market, Vodafone Idea seen surviving
Ø US FDA grants orphan drug status to mexiletine hydrochloride: Lupin
Ø SBI to cut MCLR by 25 basis points from June 10 across all tenors
Ø Indian economy will shrink 5% in FY21, stimulus not enough: S&P Ratings
Ø Govt. may consider extending deadline for availing 15% corporate tax rate benefit
Ø Tata Power signs MoU with MG Motor for EV chargers
Ø Voltas plans to set up new production unit in South India
Ø NCLAT upholds liquidation of IVRCL as a going concern
Ø IL&FS sells 50% stake in GIFT City to Gujarat Government
Ø SC agrees to hear plea by Oil ministry against recovery of $499 mn by Vedanta
Ø Govt. open to extend deadline for lower tax rate on new manufacturing investments
Ø Competition Commission initiates studies on telecom sector, M&A in digital market
Ø IDBI Bank now among India's five most valuable private banks
Ø Axis, IIFL, ICICI Prudential AMCs lead race to buy out L&T Mutual Fund
Ø Japan still in recession, but economy shrank at lower rate
Ø PVR reports net loss of Rs 74.61 crore in Q4
Ø PNB scam: Court allows confiscation of Nirav Modi’s assets
Ø Power demand falls 15% in May on muted factory usages
Ø No full recovery in airline sector before 2023: Moody's
Ø Yes Bank case: ED raids five premises of Cox and Kings in Mumbai
Ø Govt. comes out with methodology for rationalisation of coal linkages
Ø Airlines expected to lose $84.3 billion in 2020 globally: IATA
Ø IRDAI scraps all packaged long-term motor covers
Ø Maruti cuts production by 98 pc in May
Ø Life insurers record negative business growth in May
Ø Anil Agarwal seeks PM Modi's help for Tuticorin plans
Ø PSBs sanctions loans worth Rs 20,000 crore under emergency credit line guarantee scheme
Ø IPO offers dry up amid Covid-19 scare; filings with SEBI lowest in 6 years
Ø 6 PSUs now 'fallen angels' after India's sovereign rating cut: Moody's
Ø Adani wins world's largest solar project order; to invest Rs 45,000 cr
Ø CSR biggies cross Rs 7,500 cr in Covid-19 spend: CRISIL Foundation report
Ø Steel demand to nosedive 60-65% in Q1 of 2020-21, recovery unlikely soon
Ø US employers laid-off 7.7 mn workers in April amid Covid-19 outbreak
Ø WTO: US, China ask India to roll back telecom tariffs
Ø Late-stage funding in India remained strong in Q1 of 2020
Ø UVARCL gets NCLT nod to take over Aircel
Ø Micro, tiny units with no access to bank loans left in lurch
Ø Finance Ministry eyes decriminalisation of select offences
Ø Go the extra mile to ensure funds reach MSMEs, FM tells Bank Chiefs
Ø Covid-19 impact: Hero MotoCorp Q4 net declines 15% to ₹621 cr
Ø NSE NOW shuts shop, ODIN slashes fees by 50% to fill vacuum
Ø SC defers case seeking clarification on eligibility of NBFC for loan moratorium
Ø Borrowing costs for top NBFCs finally start to fall
Ø Hiring activities declines by 61% in May due to lockdown: Report
Ø Mining & construction, finance, insurance, real estate to drive Q3 job market in India
Ø Latin America and Caribbean region stares at deepest economic recession
Ø Survey finds no enthusiasm among consumers for post lockdown shopping
Ø World Bank says global economy to shrink 5.2%, worst recession since WWI
Ø Fuel prices rise on 3rd day; Petrol hiked by 54 paise, diesel by 58 paise
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👉🏻Govts ask everyone to wear fabric face masks in public areas - WHO
(World Health Organization has renewed its guidance to recommend that governments ask everyone to wear fabric face masks in public areas where there is a risk of transmission of COVID-19)
👇🏻 👇🏻 👇🏻
https://bit.ly/3eWfDDz
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👉 Postponement of Re-Opening Of On-line Facility (Correction Window) for Seeking Change of Examination Centre for Appearing in July 2020 CA Examinations. -
https://www.icai.org/new_post.html?post_id=16573&c_id=219
👉 The due date for filing GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) and GSTR 9Afor FY 2018-19 is extended to 30th Sep 2020.
👉 Lets' Stop COVID-19, Check out Today's Online Resources for you
https://www.icai.org/new_post.html?post_id=16375
👉 Exposure Draft of Guidance Note on Report under Section 92E of the Income-Tax Act, 1961 (Transfer Pricing) (comments to be received by 30th June, 2020) -
https://resource.cdn.icai.org/59838citax48656.pdf
👉 Wk in 10 stocks: 204 names that rallied up to 90%
https://economictimes.indiatimes.com/markets/stocks/news/the-week-that-was-in-10-stocks-tata-motors-bajaj-finance-ril-and-stocks-that-rallied-up-to-90/articleshow/76241386.cms
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Same transaction can’t be taxed in the hands of two assessees. Rajesh Gupta Vs ITO (ITAT Delhi). The issue under consideration is that whether A.O. is correct in taxing the same turnover in the hands of two assessees
Share transfer without consideration under family arrangement cannot be treated as sham transaction. Case Name : Glebe Trading Pvt. Ltd. Vs ITO (ITAT Delhi)
Supreme Court of India gave an important judgment regarding cenvat credit of duty paid on LSHS even though final product was exempt from excise duty in case of Commissioner of Central Excise, Vadodara-II v. Gujarat Narmada Valley Fertilizers Co. Ltd [2020] 113 taxmann.com 225 (SC)
IBBI has framed new guidelines for setting up a panel of insolvency professionals for appointment as interim resolution professionals, liquidators, resolution professionals and bankruptcy trustees by the Adjudicating Authority (say NCLT or DRTs) with effect from July 1.
Finance minister has announced the suspension of fresh insolvency proceedings for up to one year. During this period, the Insolvency and Bankruptcy Code, 2016 (IBC) will not be available for debt resolution and distressed companies and their creditors may turn to ‘schemes’ under the Companies Act, 2013.
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👉🏻Sovereign Gold Bond to open on Monday, issue price fixed at Rs 4,677/gm
( The Sovereign Gold Bond Scheme 2020-21 Series III will be opened for subscription for June 8 to June 12. Sovereign Gold Bonds are part of the central government’s market-borrowing programme)
👇🏻 👇🏻 👇🏻
https://bit.ly/37cuI0U
👉🏻MSME Series - Part 1 to 4
(Overview, Classification, Eligibility, Benefits Activities not covered for MSME Registration)
👇🏻 👇🏻 👇🏻
https://bit.ly/2AQVpMx
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Key Expectations from 40th GST Council Meeting to be held on 12th June 2020.
✍️ 1. Waiver of Late Fees on GSTR-3B,
✍️ 2. No Calamity Cess or introduction of Calamity Cess on Demerit goods,
✍️ 3. Increase in GST rates for Non-essential goods and services,
✍️ 4. Increase in Customs duties to reduce the import consumption - Considering Atmanirbhar Bharat Compaign,
✍️ 5. Further extension in GST returns n compliances, Audit and Annual Returns
✍️ 6. Relief Measures for specified sectors viz. aviation, restaturant, hospitality, real estate sector, MSMEs and other similar sectors.
✍️ 7. Suspension of GST payment for 6 months for the above-mentioned sectors.
✍️ 8. Payment of GST would be on cash basis instead of invoice based system based on certain classes of taxpayers.
✍️ 9. GST rates would reduce for real estate sector.
✍️ 10. GST relief on sales for which payment is not received.
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Whether Bad Debts qualify FOR reduction in output tax under GST?
The term bad debts usually refers to accounts receivable (or trade accounts receivable) that will not be collected. This could be due to non recovery of money receivable from trade debtors.
Under Income Tax Act, this amount is treated as expense of the year in which it is crystallized that amount is irrecoverable.
As per Sec. 36(2) of the Income Tax Act, 1961, this deduction while computing income of the assessee for the previous year shall be allowed. Provided that amount of debt has been taken into account for computing income of the assessee.
Under GST, as per Sec. 34 of the CGST Act, for following reasons, supplier shall be allowed to reduce its output tax liability by way of issuing credit note
Sec 34-Issuance of Credit Notes
Where one or more tax invoices have been issued for supply of any goods or services or both and
1. the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or
2. where the goods supplied are returned by the recipient, or
3. where goods or services or both supplied are found to be deficient,
the registered person, who has supplied such goods or services or both, may issue to the recipient one or more credit notes for supplies made in a financial year containing such particulars as may be prescribed.
For any reason other than mentioned above, reduction in output tax liability is not permitted.
Now, pertinent question here is, whether due to bad debts, amount which is not recovered by the supplier for supply of goods or services made, output tax shall be allowed to be reversed to the supplier?
Event of bad debts is not anything which is mentioned u/s 34 of the Act, it is neither deficient supply of goods or services or goods returned nor taxable value or tax payable changes. Considering all these in mind, one can safely deduce from the existing provisions of the CGST Act, that no benefit of output tax reduction is available in the event of bad debts. This creates an imbalanced and unjust situation for the supplier, on the one hand he could not collect the consideration for the supply of goods or services on the other he is required to pay GST from his own pocket.
Author understands that the similar position was existent in the eartwhile regime of service tax also, but it is highly required to reconsider this position by the law makers now. Author strongly urges the GST Council to take cognizance of the plight of the supplier specially during this economic turmoil caused due this pandemic.
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ITR forms for AY 20-21 notified. Joint property owner can file ITR 1&4. ITR-1 can be used if elec/travel expenses or deposits in current accounts exceed limit.
Revised Form 26AS to contain details of specified financial transactions like those in property, shares etc. also. IT rule 114-| wef 1.6.20.
CBDT said The gross direct tax collection (without deducting refunds) was Rs 12.34 lakh crore in FY20, lower than Rs 12.98 lakh crore in FY19. The growth in direct tax collection for FY 2019-20 has fallen drastically, the government said that the fall in the collection of direct taxes is on expected lines and these reports are not true.
CBIC said in a circular that the customs department will on 8/6/2020 roll out the first phase of the country-wide faceless assessmemt of consignments. Under the system, consignments will be assessed by officials electronically, irrespective of the port where the goods arrive. The first phase will commence in Chennai and Bengaluru. It will cover a specific set of items and will be expanded across India by this calendar year-end.
Delhi High Court gave an important judgment that the GST authorities to permit applicant to file rectified Form GST TRAN-1 either electronically or manually in case of SRC Aviation (P.) Ltd. V. Union of India [2020] 113 taxmann.com 435 (Delhi)
Jharkhand High Court gave an important judgment on Refund of tax permitted when deposited in wrong code where tax wrongfully collected and paid to Central or State Government in case of Shree Nanak Ferro Alloys (P.) Ltd v/s Union of India [2020] 114 taxmann.com 302 (Jharkhand)
UP-RERA has allowed homebuyers association to take over and complete the project. The authority had revoked the registration of the project Sampada Livia after the developer failed to complete it and diverted money collected from homebuyers. While 24 homebuyers moved RERA, an audit by a consultant appointed by Greater Noida Industrial Development Authority revealed diversion of R 47 crore.
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Finance Minister Nirmala Sitharaman on Monday said the government will consider an extension in the deadline for availing the lower 15% corporate tax rate on new investments, due to the COVID-19 pandemic.
High Court of Gujarat gave important order Appeal to be filed against order of detention regarding Confiscation of goods or conveyances and levy of penalty that Appeal to be filed against order of detention instead of writ. in a case of Aashiward Marketing v. State of Gujarat [2020] 114 taxmann.com 326 (Gujarat)
Government''s decision to shield corporate from the Insolvency and Bankruptcy Code (IBC) during the coronavirus pandemic will provide some breathing space to businesses struggling to combat the onslaught of diminishing demand and poor growth prospects, according to experts.
Reserve Bank of India (RBI) said the price discovery process may be deregulated during sale of bad loans by financial institutions such as banks, non-bank lenders and housing finance companies (HFCs).
Sebi eased the compliance norms for companies seeking to list their debt securities such as non-convertible debentures (NCDs) and commercial papers. This will come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in a circular.
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👩🏻🎓 CBIC had released 3 notifications on 09th June 2020. Below is its summary and will be followed by copy of all 3 notifications as well for your reference.
👨🏻🎓 Please share this message with all your professional circle as we believe #sharingIsCaring 🙏🏻
👩🏻🎓45: This notification Seeks to extend the date for transition under GST on account of merger of erstwhile Union Territories of Daman and Diu & Dadar and Nagar Haveli to 31st July 2020. Earlier the date was 31st May 2020
(Old Notification No. .10/2020- Central Tax refer this for complete details of the topic)
👨🏻🎓 46: It extend the period to pass order under Section 54(7) of CGST Act.
This notification shall come into force with effect from the 20th day of March, 2020.
👩🏻🎓 47: it provides extension of validity of e-way bill generated on or before 24.03.2020 (whose
validity has expired on or after 20th day of March 2020) till the 30th day of June.
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Clarification in respect of levy of GST on Director’s Remuneration
Circular No: 140/10/2020 - GST dated 10.06.2020
It is clarified that the part of Director's remuneration which are declared as "Salaries‟ in the books of a company and subjected to TDS under Section 192 of the IT Act, are not subject to GST and not treated as supply in terms of Schedule III of the CGST Act, 2017.
It is further clarified that the part of Director's remuneration which is declared separately other than "salaries" in the Company's accounts and subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Services shall be treated as taxable supply for GST and company is liable to discharge the applicable GST on it on RCM basis.
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