25th June 2K20
Economic Times
Ø Transport ministry scraps Bulk Data Sharing Policy
Ø All transactions fully protected under RBI, NPCI Guidelines : Google Pay
Ø ICICI Bank mulls raising up to $3 Billion in Stake Sale : Report
Ø Coal India exploration arm adds 7.8 Billion tonnes to proven Coal Reserves
Ø HG Infra Q4 results: Consolidated PAT up 41% to Rs 54 Crore
Ø SEBI comes out with Guidelines on order-to-trade ratio for algo trades
Ø Beware Second wave of Coronavirus , medics warn Britain
Ø States failed to use Rs 6,700 Crore Labour fund: CAG
Business Standard
Ø Hinduja Brothers battle over $11 Billion family Fortune in UK High Court
Ø Covid-19 Impact : IMF projects Indian economy to contract by 4.5% in FY21
Ø Govt okays Ordinance to give more teeth to RBI over Co-operative Banks
Ø GAIL Consolidated Profit before tax rises 62% in Q4 to Rs 3,598 Crore
Ø Blackstone sells Embassy Office Parks REIT units for Rs 2,270 Crore
Ø GIC Re reports 7.8% drop in Pre-tax profit at Rs 1,101 Cr in Q4FY20
Ø Competition Commission approves Facebook-Jio deal worth $5.7 Billion
Ø IndianOil reports Rs 17,318 Cr loss in Q4FY20 on inventory, demand issues
Ø India Inc gets till July 31 to file Q4 results in second deadline extension
Ø Foodgrain Stocks top 100 Million Tonnes, triggering calls for Liquidation
Ø DoT sets stage for Spectrum Auctions this year; MSTC selected as auctioneer
Financial Express
Ø E-tailers backs govt move for displaying Country of Origin for Products sold
Ø Karur Vysya Bank Net Profit rises 40% at Rs 84 Crore in Q4
Ø Tamilnad Mercantile Bank net up 58% to Rs 408 Crore in FY20
Ø Suzlon resolution plan may get implemented by June 30
Ø RBI asks Banks to adhere to fair practices code guidelines while lending via digital platforms
Ø Covid disruption brings down Housing Sales in April-June
Ø US safety regulators order new fix for grounded Boeing 737 Max Planes
Ø Cabinet approves additional investment by OVL in Myanmar Gas Blocks
Ø MSME Sector gets another push from govt; distressed MSMEs to get Rs 20,000 Cr Guarantee Cover
Ø Bharti Infratel extends deadline for merger with Indus Towers till August 31
Mint
Ø Myntra sells 10 mn Products in first E-commerce sale this year
Ø WHO Chief expects Coronavirus cases to hit 10 Mn next week
Ø Oil down $2 as U.S. Crude Inventories swell, Pandemic resurgence feared
Ø Govt to provide 2% interest subsidy to 'Shishu' borrowers under Mudra Yojna
Ø Dell partners Nasscom to help SMEs, Startups with Business continuity
Ø PAN Card, Aadhaar Card linking deadline extended to March 31 next year
Ø Railways to generate 8 Lakh Man days of Employment for Migrant Workers
Ø IMF reverses its Optimism for India, sees 4.5% GDP contraction in FY21
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INCOME TAX UPDATE
CBDT has issued a notification today further extending few of the time limits of compliances under Taxation & Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 as under:
Due date for filing Income Tax Return for F.Y 2018-19 has been extended to 31st July, 2020
Waiver of interest u/s 234A in cases where self assessment tax is upto Rs 1 lac
Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31st July, 2020
The date for furnishing of TDS/TCS statements for the quarter ending on 31st March, 2020 has been extended to 31st July, 2020
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Deadline for FY19 ITR filing extended until July 31, Aadhaar-PAN linkage until March 2021
https://www.moneycontrol.com/news/business/economy/centre-extends-deadline-for-filing-i-t-returns-for-fy2018-19-until-july-31-2020-5452991.html
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CBIC has issued various notifications today to give effect to the recommendations of the 40th GST Council Meeting which are as follows:
👉 *Notification No. 49/2020 –Central Tax: To bring into effect certain provisions of the Finance Act, 2020
👉 *Notification No. 50/2020 – Central Tax: Notifying rates of GST for Composition Taxable Persons under Rule 7 of CGST Rules
👉 *Notification No. 51/2020 – Central Tax: Conditional waiver of interest in excess of 9% p.a for registered persons having aggregate turnover upto 5 crores for GSTR 3B for the months of February to July 2020 if filed by specified dates
👉 *Notification No. 52/2020 – Central Tax: Conditional waiver of late fees for registered persons having aggregate turnover upto 5 crores for GSTR 3B for the months of February to July 2020 if filed by specified dates
Waiver of late fees which is in excess of an amount of two hundred and fifty rupees for the registered person who failed to furnish the return in FORM GSTR 3B for the months of July, 2017 to January, 2020, by the due date but furnishes the said return between the period from 01st day of July, 2020 to 30th day of September, 2020
Also, waiver of late fees for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to January, 2020, by the due date but furnishes the said return between the period from 01st day of July, 2020 to 30th day of September, 2020.
👉 *Notification No. 53/2020 – Central Tax: Conditional waiver of late fees for all registered persons for GSTR 1 for the months/quarters ending March to June 2020 if filed by specified dates
👉 *Notification No. 54/2020 – Central Tax: Extension of due date for filing of GSTR 3B for the month of Aug 2020 to 1st/3rd Oct, 2020
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.☝🏻 CBDT has issued a notification today further extending few of the time limits of compliances under Taxation & Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 as under:
👉 Due date for filing Income Tax Return for F.Y 2018-19 has been extended to 31st July, 2020
👉 Waiver of interest u/s 234A in cases where self assessment tax is upto Rs 1 lac
👉 Deductions under Ch-VIA like Sec 80C, 80D, 80G, etc can now be made upto 31st July, 2020
👉The date for furnishing of TDS/TCS statements for the quarter ending on 31st March, 2020 has been extended to 31st July, 2020...
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Payment of GST by Real Estate Promoter / Developer, in case of shortfall from Threshold from 80%, GST Form DRC-03 can be used to pay Tax Electronically: CBIC
Read more at: https://www.taxscan.in/payment-of-gst-by-real-estate-promoter-developer-in-case-of-shortfall-from-threshold-from-80-gst-form-drc-03-can-be-used-to-pay-tax-electronically-cbic/61932/
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SEBI Circular Dated : 25th June 2020
Further extension of time for submission of Annual Secretarial Compliance Report by listed entities due to the continuing impact of the CoVID-19 pandemic
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👉 The market regulator’s new framework, which facilitates trading in defaulted debt, is likely to create a distressed bond market in India, industry experts said, potentially helping asset management companies, among others, to repay investors .
While there is a market for stressed bank loans in India, where several large global distressed asset funds and asset reconstruction companies (ARCs) are active, industry experts maintain that the move to allow trading of ‘D’ category debt papers and bonds will allow bond holders such as mutual funds to exit exposures faster.
“This is an attempt to create liquidity for securities that at present would be rendered illiquid in case of a default. All in all, it seems that this new framework will give rise to a distressed bond market, where more experienced hands could come and buy these bonds. Sebi is trying to create new avenues to deal with emerging issues in debt, distressed assets and ensure that they do not face legal impediments," said Ajay Shaw, partner, DSK Legal.
This comes at a time when many issuers are struggling to honour their debt obligations in view of the covid-19 related financial hardships.
Nirmal Gangwal, founder and chairman of Brescon & Allied Partners LLP, a debt restructuring advisory firm, said certain things need to change before this can become effective.
“If a debenture goes for a default in India, there are no takers for it as our market is not mature and liquid enough. Secondly, the security structure and the enforcement of security is very convoluted in India. Whether it is the NCLT (national company law tribunal) or the DRT (debt recovery tribunal), the investor is at the mercy of the system. This will take some time and until the security enforcement is simplified, no investor would be willing to buy these bonds," he said.
👉 Market regulator Sebi’s new framework which enables trading in defaulted debt is likely to create a distressed bond market in India potentially allowing asset management companies among others to return money to investors faster, said industry experts. While there is a market for stressed bank loans in India, where several large global distressed funds and Asset Reconstruction Companies ( ARCs) are active, industry experts maintain that the move to allow trading of default category debt papers and bonds will allow sellers such as mutual funds to exit exposures faster to return money to investors.
“This is an attempt to create liquidity for securities that at present would be rendered illiquid in case of a default. All in all, it seems that this new framework will give rise to a distressed bond market in India, where more experienced hands could come and buy these bonds. Sebi is trying to create new avenues to deal with emerging issues in debt, distressed assets and ensure that they do not face legal impediments," said Ajay Shaw, Partner, DSK Legal. According to a senior executive at a distressed asset fund, the move will be beneficial as it will lead to development of the stressed debt market in India.
According to Sudip Mahapatra, partner at law firm S&R Associates, distressed debt funds, hedge funds and asset reconstruction companies will be the primary buyers of these distressed debt securities. According to a debt fund manager in a mid-sized fund house, this lays the foundation of the new market however it would take some time to develop. Debt funds which have side-pocketed assets to the tune of₹4000 crore can specially make use of this framework, he said. “Perhaps not all the ARCs, or distressed funds have an appetite for these bonds currently but this lays the foundation for more experienced hands to get into the space of defaulting bond and ensure recoveries," he said declining to be named.
As per the new norms effective 1 July, within 2 working days from the date of intimation of default on payment obligations, the depositories in co-ordination with stock exchanges shall update the ISIN (code for stocks and debt securities) master file and lift restrictions on transactions in such debt securities.
Nirmal Gangwal, founder and chairman of Brescon & Allied Partners LLP, a debt restructuring advisory firm concurs that certain things need to change before this can become effective.
“If a debenture goes for a default, in India there are no takers for it as our market is not mature and liquid enough. Secondly, the security structure and the enforcement of security is very convoluted in India, whether it is the NCLT or the DRT, the investor is at the mercy of the system. This will take some time and until the security enforcement is simplified, no investor would be willing to buy these bonds," he said.
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Medical Stores Run by Charitable Trusts Need GST Registration
The Authority of Advance Ruling (AAR), Gujarat has ruled that all the medical stores, that are providing the medicines at lower rates, amount to the supply of Goods and all the medical stores, run by any charitable trust, are required to get them registered under the Goods and Services Act 2017.
The ruling was provided in a case where M/s Nagri Eye Research Foundation filed an application to seek the ruling of the authority on whether the registration under GST is required by a medical store run by a charitable trust with a motive to help the public and whether such or any other medical stores, providing medicines at lower prices, amounts to the supply of goods or not. The applicant, being one such charitable trust, is operating a medical store to provide medicines at lower rates as compared to others with a motive to help others, rather than earning profits.
The bench of the authority, with Mohit Agarwal and Sanjay Saxena as members, ruled that it is mandatory for the medical stores, run by a charitable trust, to get them registered under the GST Act 2017 and supplies made by such and other medical stores, providing medicines at lower prices, amounts to the supply of goods.
“Applicant is selling medicines from its medical store. Medicine is goods as per subsection 52 of Section 2 of the CGST Act, 2017. Medicine is a taxable supply as per subsection 108 of section 2 of the CGST Act, 2017 and GST is leviable on medicine as per Chapter-30 of HSN code. Therefore, the sale of medicine by the applicant is a taxable supply of goods. The applicant is providing medicines from its medical store at a lower rate so the price paid by the customers is a consideration for the applicant as defined in subsection 31 of Section 2 of the CGST Act, 2017. Further, the activity of the supply of goods by the applicant does not fall under the list appearing in Schedule-III of the CGST Act, 2017. Therefore, we conclude that the applicant is making taxable supply from its medical store, so as and when aggregate turnover (here medicine) of applicant exceeds threshold limit as specified in sub-section(1) of Section 22 of the CGST Act, 2017, the applicant has to obtain registration under the relevant provisions of the CGST Act, 2017,” the AAR said.
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