Ø High debt-to-GDP could strain India's rating: Fitch
Ø S&P affirms India’s 'BBB-/A-3' sovereign rating
Ø Fed holds rate, sees zero rates through 2022
Ø 80% working Indians experience income loss: Study
Ø Govt restricts export of swabs, probes, primers
Ø 'Jio-FB platform approach can open a $2 tn mkt by 2025'
Ø Government extends validity of certain e-way bills
Ø Indian economy to bounce back with growth of 9.5% in next fiscal: Fitch
Ø Irdai asks insurers, TPAs to disclose infra details of hospitals in network
Ø Oil slides below $41 a barrel as US inventory rise revives glut worries
Ø Jindal Stainless Hisar Q4 FY20 profit up 43% on back of reduced expenses
Ø IOC aims to operate refineries at 90% capacity in June as demand recovers
Ø Overseas borrowing of NBFCs zooms 100% in FY20
Ø GSK gears up to make 1 b doses by 2021
Ø Cipla to acquire 21.85% stake in GoApptiv
Ø Century Textiles net profit down 44% in March quarter
Ø Welspun enters health and hygiene segment with face masks, wipes, disposable linens
Ø BPSL case: Supreme Court directs CoC to clarify stand on JSW Steel petition
Ø SEBI calls CREDAI's plea on moratorium clarification a 'proxy litigation'
Ø Apollo Global, ICICI Ventures to end India JV
Ø Indian Hotels Q4 net profit drops 38% to ₹76.29 crore
Ø Supreme Court to hear AGR case tomorrow
Ø Johnson & Johnson to begin human trials of Covid-19 vaccine in 2nd half of July
Ø Shriram Transport Finance Q4 profit falls 70% at Rs223.38 crore
Ø Japan’s wholesale prices sink at fastest pace in 4 yrs as pandemic hits demand
Ø Inflation likely to have hit six-month low in May: Poll
Ø Anand Mahindra to invest $1 million in this Gurgaon based technology startup
Ø Loan moratorium: Forcing banks’ hands to be ruinous, Sebi tells SC
Ø In four hikes, petrol prices go up by Rs 2.14 per litre, diesel by Rs 2.23
Ø Global gas demand set for largest decline on record in 2020, says IEA
Ø Panacea Biotech to partner with US firm Refana for COVID-19 vaccine
Ø Hindustan Petroleum delays Rs 209 billion Vizag refinery expansion
Ø Voda Idea, Airtel have a plan for AGR payments
Ø DoT to seek legal view on AGR dues for PSUs
Ø RBI bars People's Co-op Bank from granting fresh loans
Ø Exports improving, down by 36 pc in May: Piyush Goyal
Ø RBI to conduct Rs 27,000 crore switch auction
Ø RBI plans to overhaul corporate governance structure of banks
Ø RBI proposes 10-yr term for bank promoter-CEOs, 15 yrs for non-promoters
Ø India's forex reserves near $500 bn, but RBI won't let rupee rise: Experts
Ø Average monthly rating downgrades rise 22% amid Covid-19 pandemic: ICRA
Ø Irdai issues guidelines for standardisation of indemnity health products
Ø Govt to convert Rs 27,000 cr of short term bonds into longer tenure
Ø SBI to dilute 2.1% stake in SBI Life Insurance via offer for sale
Ø Net financial assets of households climb to 7.7 per cent of GDP in FY20: RBI study
Ø RBI moves in to strengthen governance in commercial banks
Ø Nearly 90% of our domestic project sites are now working, says L&T CEO Subrahmanyan
Ø GDP growth may dip this year: CEA
Ø ILO probes CTUs’ complaint on unfair labour laws
Ø CIL looks to domestic coal to help enhance supplies
Ø Retail auto sales dive 87% in May amid lockdown
Ø S&P downgrades Kerala's sub-national rating to BB-
Ø MSMEs struggle to stay afloat even as dues pile up
Ø Oil India Ltd’ Assam oil and gas production affected due to protests
Ø HDFC to raise up to ₹4,000 cr via bonds
Ø Petroleum products consumption down 23% in May
Ø Proposed 20% basic customs duty on solar cells to hit units in SEZs
Ø Labour safety code revised to address PMO concerns
Ø Exports improving, down by 36 per cent in May, says Piyush Goyal
Ø ITC refund to be allowed for certain supplies even if purchase invoice not uploaded: CBIC
Ø Petrol, diesel gets costlier by 60 paise/litre each; 5th straight daily increase
Ø India lifts export ban on hydroxychloroquine
Ø Vehicle registrations down 89% in May: FADA
Ø Dr Reddy's acquires select business divisions of Wockhardt
Ø Fuel demand jumps nearly 50% in May as lockdown restrictions ease
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GST UPDATE:
Clarification in respect of levy of GST on Director’s remuneration
Independent Directors terms of section 149(6) of the Companies Act, 2013:
✅The said Director is not an employee
✅RCM is Applicable and Taxable
Director not an employee of the company (including Non Whole Time Director):
✅The said director not an employee
✅RCM is Applicable and Taxable
Director who is an employee of the company (including Whole Time Director in employment)
✅The said director an employee
✅RCM NOT Applicable and No Supply
Whole Time Director not in employment of the company (Illogical to certain extent)
✅The said Director is not an employee
✅RCM is Applicable and Taxable
Managing Director (Who is an employee)
✅The said director an employee
✅RCM NOT Applicable and No Supply
NOTE:
🌟“contract of service” or “contract for service” is an important element to be ascertained for an employee director.
🌟contractual relationship of master and servant
🌟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:
TO BE TREATED AS SALARIES (SCHEDULE III) AND NO RCM
🌟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 (Fees for professional or Technical Services):
TO BE TREATED AS TAXABLE AND RCM APPLICABLE
🌟Company, is liable to discharge the applicable GST on it on reverse charge basis.
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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.
👉 Vacancy Circular for Executive Director in NFRAPdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Noticee_09062020.pdf
👉 Extension in last date of applications for the posts of AGM, Manager and Assistant Manager in NFRA on deputation/ short term contract basis.Pdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Noticea_09062020.pdf
👉 Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS)- Adv. Information Technology Test – Home Based Mode - (10-06-2020)
https://www.icai.org/new_post.html?post_id=16582&c_id=219
👉 Draft Frameworks for Sale of Loan Exposures and Securitisation of Standard Assets
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49920
👉 Government extends validity of certain e-way bills
https://economictimes.indiatimes.com/news/economy/policy/govt-extends-validity-of-certain-e-way-bills-till-june-end/articleshow/76305038.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23
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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.
👉 Vacancy Circular for Executive Director in NFRAPdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Noticee_09062020.pdf
👉 Extension in last date of applications for the posts of AGM, Manager and Assistant Manager in NFRA on deputation/ short term contract basis.Pdf(40 KB)
http://www.mca.gov.in/Ministry/pdf/Noticea_09062020.pdf
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Income Tax -New disclosures asked in the New ITR forms 1 to 7 are:
House ownership: Individual taxpayers who are joint owners of house property cannot file ITR-1 or ITR-4.
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 traveling 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.
Extension - 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/corporate.
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.
GST Special Provision for Resolution Professional Webinar Video and PPT by CS Payal Kataria ji is available at https://youtu.be/zwgfy_zL8cM kindly watch and subscribe our YouTube channel to get more informations about our Webinars on different topics.
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FM Smt. Nirmala Sitharaman announces 1st decision of 40th @GST_Council meeting
1⃣ For all those who have no tax liability but have not filed GST returns for tax period July 2017 - Jan 2020 (prior to #COVID19 period), there shall be no late fee at all
2️⃣ For people who have tax liabiity, maximum late fee for non-filing of GSTR-3B returns for period Jul 2017 - Jan 2020 has been capped to ₹ 500
This will apply to all returns submitted during Jul 1, 2020 - Sep 30, 2020
3️⃣For small tax payers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9% if filed before 30th Sept 2020
4️⃣ Small tax payers whose aggregate turnover is up to ₹ 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020, no late fee or interest
5️⃣ Tax payers who could not get cancelled GST registrations restored in time are being given an opportunity to apply for revocation of cancellation of registration up to September 30, 2020 - In all cases where registration has been cancelled till June 12, 2020
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