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Friday, 14 August 2020

14 August 2020 News and Updates

14 August 2020 News and Updates

Ø  Balance of payments to be 'very, very strong' this year, green shoots visible in economy: Piyush Goyal
Ø  Spectrum of bankrupt telcos who owe statutory dues cannot be sold: Govt to SC
Ø  Petroleum and Natural Gas Regulatory Board Chairman bats for unified gas price
Ø  India's economy is slowly recovering, shows Nomura India Business Resumption Index
Ø  India to promote manufacturing of some products to boost market share
Ø  Govt to unveil more steps to attract investment in defence sector: Rajnath
Ø  Imports from related party will be scrutinised by Customs: Expert
Ø  Debt recast to give relief to Rs 3 trn retail, small corp debt: Crisil
Ø  Market regulator cracks whip on front runners at Reliance Securities
Ø  Saudi Aramco to go ahead with plans to boost oil output capacity, says CEO
Ø  Equity MFs see outflows for first time in 4 years: AMFI
Ø  Auto sector expects recovery this month: FADA
Ø  Around 68% rural Indians faced ‘high’ monetary difficulty during lockdown: Survey
Ø  IndiGo plans to raise up to ₹4,000 crore through QIP
Ø  Titan reports consolidated Q1 net loss of ₹297 cr
Ø  Equitas Holdings June qtr net down 25% at ₹52.5 cr
Ø  Sebi issues guidelines to help trustees of MFs in monitoring AMCs' activities 
Ø  FinMin calls for real-time monitoring of key infra projects to push growth
Ø  South Indian Bank to set up non-financial subsidiary
Ø  JSW Cement pushes IPO plans to 2022 as cement demand crashes
Ø  Bank of Baroda Q1 result: Net loss of ₹864 cr due to higher provisions
Ø  Commerce ministry’s investigation arm recommends anti-dumping duty on Chinese chemical
Ø  UBS Principal Capital Asia sells Axis Bank shares worth over Rs 150 crore
Ø  ICICI Bank sets floor price at Rs 351.36 for QIP
Ø  RIL-Aramco deal: Still working on deal to invest in Reliance, says Aramco CEO
Ø  Andhra's new industrial policy holds out juicy land sops for investors
Ø  India GDP to shrink by 4.5% in 2020: Report
Ø  India defers certificate for rice export to EU
Ø  RIL breaks into top 100 global companies
Ø  Debt recast to worsen asset quality: Fitch
Ø  Airbnb contributed $320 million to the Indian economy in 2019: Oxford Economics
Ø  Allow JSPL to pay $55 mn to subsidiary: HC
Ø  I-T dept cracks down on Chinese entities
Ø  Foreign investors get tax compliance relief for AIF investment in IFSC
Ø  About 5-8% of loan book will be recast under RBI scheme, says ICRA
Ø  Axis Bank raises Rs 10,000 cr via allotment of equity shares to QIBs
Ø  Singapore's economy sees worst ever quarterly contraction of 13.2%
Ø  Moody's assigns B3 rating with negative outlook to Vedanta's USD notes
Ø  IndiGo in talks to leaseback 12 of its ATR aircraft to raise funds
Ø  Adani Ports Q1 net profit falls 26 per cent to ₹758 crore
Ø  Tata Motors bets big on automatics in Covid-19 times
Ø  Bosch reports Q1 net loss at ₹121 cr
Ø  Freshworks, Hexaware announces global partnership
Ø  JSW Steel output down 5% in July
Ø  ADIA, HDFC MF buy Inox Leisure shares in bulk deal
Ø  DAC approves proposals to buy ₹8,722.38 crore military hardware
Ø  S&P 500 on verge of reclaiming February highs due to US stimulus hopes
Ø  Mahindra among 14 global CEOs to endorse road map for better economic system 
Ø  Households’ FMCG consumption in April-June highest in two years: Report
Ø  COVID-19 may accelerate shift in global trade relations, supply chains: Moody’s
Ø  CIAL reports Rs 72 crore loss in Q1 of current fiscal
Ø  India levies anti-dumping duty on black toner from China, others
Ø  Corona lockdown effect: Industrial production declines by over 16 per cent in June
Ø  RBI asks large UCBs to implement system-based asset classification from June 2021
Ø  Deutsche Bank infuses funds in India ops
Ø  23 players including Bombardier, Alstom attend meeting on running private trains: Railways
Ø  NMDC hikes iron ore rates by Rs 300 to Rs 2,950 a tonne effective from August 12
Ø  Equalisation levy: MasterCard moves HC
Ø  Govt panel proposes 2 formats for BRSR
Ø  NCLAT rejects plea to start insolvency proceedings against Tata Chemicals
Ø  Gadkari calls for increased global investment in highways, MSME sectors
Ø  Over 1,700 big wilful defaulters together owe Rs 37,020 crore to PNB
Ø  Reliance Commercial Finance gets 13 EoIs from global, domestic investors
Ø  Bharat Forge reports consolidated loss of Rs 127.3 crore in Apr-Jun qtr
Ø  Japan to provide financial assistance to 10 Japan-India tech tie-ups
Ø  BSE getting traction on gold trade
Ø  PM to unveil next phase of direct tax reforms on Thursday
Ø  Ashok Leyland reports ₹389 cr net loss in Q1 due to Covid-19 lockdown
Ø  Sundram Fasteners reports Q1 loss of ₹23 crore
Ø  Brigade Enterprises posts ₹63.90 crore loss for Q1
Ø  India's fuel demand dips 11.7% in July
Ø  Mahindra Finance's ₹3,089 cr rights issue subscribed 1.3 times
Ø  Centre allows registration, sale of EVs without pre-fitted battery
Ø  ABN Amro exits trade, commodity finance in wider industry shake-up
Ø  Tata Power merges Mundra plant into parent for capital support
Ø  RBI asks urban cooperative banks to implement system-based asset classification from June 2021
Ø  UK’s deep economic recession may send strong global headwinds to India
Ø  CIL seeks lower rail tariff for coal transportation
Ø  I-T Department raids premises of Chinese entities in money laundering case
Ø  US signs $1.5 billion COVID-19 vaccine deal with Moderna for 100 million doses
Ø  Medtronic to invest Rs 1,200 crore to expand Hyderabad R&D centre
Ø  Retail inflation inches up to 6.93% in July
Ø  US jobless claims fall below 1 million
Ø  India is a difficult market to be in at this moment of time, says Carlsberg Global CEO
Ø  Eicher Motors and Volvo JV to acquire Volvo's India bus business
Ø  JSPL starts supply of special grade rail tracks for new phase of Kolkata Metro
Ø  Railways rules out fare regulator for pvt trains, to allow competition in transport sector
 Ø  Tata Steel reports Rs 4,648 cr net loss in Q1 due to reduced income
Ø  China extends anti-dumping duties on Indian optical fibres for 5 years
Ø  SBI eyes three-fold rise in retail, MSME gold loan business in FY21
Ø  PE/VC investments drop 51% to $4.1 billion as big deals shrink in July
Ø  French unemployment rate hits 37-year low in Q2 2020 as lockdown bites
Ø  Godrej Industries Q1 net profit down 40% at ₹106 cr
Ø  US budget deficit climbs to record $2.81 trillion
Ø  FPIs continue to repose faith in private insurers
Ø  GAIL (India) profit plunges to ₹643 crore in Q1
Ø  Grasim net down 67% on weak demand
Ø  JSW Group revenue down by $2 billion in FY20
Ø  Need to upgrade Ordnance Factories to lower import dependence, say defence experts
Ø  Government to switch ₹28,000 crore of bonds for longer term securities
Ø  BPCL's net profit up 22% for April-June quarter
Ø  Tata Motors launches India's biggest tipper truck
Ø  Lenders, govt diverge on sale of spectrum with bankrupt telcos
Ø  RBI tightens regulations for core investment companies
Ø  SIP inflows hit 22-month low in July at ₹7,831 crore
Ø  RBI remains net purchaser of US dollar in June, buys USD 9.814 billion
Ø  Search and seizure, international tax cases out of faceless assessment ambit: CBDT
Ø  Larsen & Toubro wins ‘significant’ contracts for various businesses
Ø  PM unveils new tax platform, says tax paying to become seamless, painless, faceless
Ø  J&J ties up with Biological E for manufacturing Covid vaccine in India
Ø  Gems, jewellery exports dip 38% in July as virus slows global demand

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Some points to be remember in case of company incorporation:-

1) While filling data online in spice+ Part A, fill all data very cautiously. Also if possible attach main object(as approved by client).
2) Every time, if possible, take screenshot of Spice+ Part A,I.e. RUN.
3) If you proceed for payment and an amount has been deducted from your bank account and Spice+ Part A page get expired or forcefully logged out you, then dont panic & after again logged in MCA may show you message that challan or SRN is marked as unpaid then still dont cancel your SRN.
4) Its MCA error. Wait for 48hours. Your challans will be shown as paid after 48hrs. Also advice clients that due to lockdown or system/techical error of MCA, a process of company incorporation may get delayed.
5) Same case with Spice+ Part B, Save your data at every stage. Then keep ready all docs.with you before filling Part B.
6) Give name to all attachments in small letters. Avoid capital letter, commas, space. Check size of attachments before attaching it to Spice+ Part B. This will help you to avoid extra size reduction of attachments and duplication of work, after downloading of forms.

7) In case of any company, now stamp paper & notary is not required at all. It is done away with.
8) In case PAN TAN not received then call to CRC to ask 15 digit application number. Mention contact number & email id of client very cautiously. Coz soft copy will be deliver to client's mail id.
9) In case if you are using google Chrome for filling data in spice+ Part B, and forms are unable to download then dont panic, use Internet explorer or mozilaa firefox.
10) Also at the time of starting your day always do following steps
clear temporary files %temp%

clear google/internet explorer/mozilla firefox browser history

clear cache memory. The reason for this👆🏻 is there are lots of changes done by MCA. Due to such changes, MCA get cluttered with old technical files. So we need to clear it.

11) At the end of part B dont attach MOA and AOA to the site. It is only mandatory in some specific cases only. Like section 8 Co., producer Co,etc.
12) And please note that there will be 5 files that everyone need to download and upload on mca In following sequence only:- 
1. Part B
2.MOA
3. AOA
4. AGILE
5. INC-9
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 Income Tax Form 26AS: Hotel bills of over Rs 20,000 will now reflect in your ITR; check other changes

In a move to curb widespread tax evasion, the Government of India has proposed to widen the scope and reduced the threshold of various transactions to further include even white good purchases, property tax payment, medical and life insurance premium and even hotel payments.

Prime Minister Narendra Modi on August 13 launched the 'Transparent Taxation' platform while announcing multiple reforms to improve tax compliance, faceless assessment and ease of filing returns. As part of the rehaul, the government has also proposed to reduce the threshold of various transactions for tax disclosure. This is aimed at widening the income tax base and checking tax evasion.

The list will now include white good purchases, property tax payment, medical and life insurance premium and even hotel payments.

So, the next time you pay a hotel bill or medical insurance premium of more than Rs 20,000, incur an expenditure of amount exceeding Rs 50,000 on life insurance or more than Rs 1 lakh for school fee, purchase white goods, jewellery, marble or paintings, be mindful that the entity you have made the payment to will be informing the government of your transaction.

Even payments made to the government such as property tax and electricity bills would be reported if they exceed Rs 20,000 and Rs 1 lakh, respectively. Business-class airline travel, whether domestic or foreign, would be reported, as per communication from the Ministry of Finance. These would be reflected in an individual's tax account statement called Form 26-AS.

“Earlier, a majority of the high-value transactions were linked to the financial sector such as banks, demat accounts, but now this move aims to bring everyone under the lens. So, even normal payments for school fees and white goods or painting purchases above Rs 1 lakh would be reported and even bank account deposits would be checked”.
Some of these had already been announced earlier during the Union Budget or are being captured through income tax returns. But a formal implementation has been announced. Under the existing scenario, property purchase above Rs 30 lakh, Rs 10 lakh invested in shares, mutual funds, demat, credit card and fixed deposit transactions above Rs 10 lakh were reported.

The limit for cash deposits in banks has been enhanced from Rs 10 lakh to Rs 25 lakh for savings account and Rs 50 lakh for current account. But, if you have bank transactions exceeding Rs 30 lakh then you would have to file a tax return, whether your transaction has been reported or not.

“Government has introduced new sections and is making reporting of certain transactions mandatory to unearth black money. This is because the number of people subjected to scrutiny is being reduced. The tax department wants to say have faith that taxpayers won’t be harassed as they are relying on data analytics,” While it remains to be seen how this would be implemented and whether individual taxpayers would be burdened with additional compliance. But since June 2020, many notices have been issued to taxpayers to verify whether they have incurred certain high-value transactions.

“Notices to confirm transactions reported under the taxpayers' PAN have already been issued based on the information reported to the government. The taxpayer simply needs to log-in to confirm whether the transactions belong to him or her”. Once you verify or decline the transaction, the tax department would cross verify with your income tax returns if any.

The options for an individual include, whether the information is correct, wrong or duplicate. “If you decline the information then they would verify with the company that supplied the information. If you are proved wrong then you would have to revise your income tax return”.

Another case in point is whether the threshold limits for certain transactions have been set low to include everyone under the tax net. A big group of diners at the restaurant would exceed Rs 20,000 in hotel bill, school payments have been exceeding the Rs 1 lakh mark for many, while Mediclaim premium would be beyond Rs 20,000 for a family for four.

“The threshold may seem low if we take into account bigger cities like Mumbai, Bangalore and Delhi, but they are reasonable from the government standpoint, which would take into consideration smaller towns".

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Key highlights of PM Modi’s speech (13 August, 2020) on Tax Reform:

1. Faceless Income Tax Scrutiny – Now, Income tax assessment shall be done completely faceless. No local officer shall be involved in the process. Such process shall be secretive to tax payer as well as tax officers.

2. Seamless, faceless and tireless process now. 

3. Faceless Income Tax Appeals

4. No issue on transfer posting of Income tax officers

5. Only 1.5 Crores Indian pays Income Tax out of 130 Crores. Hence, taxpayers should come forward to pay their taxes properly.

6. In last 6 year, about 1500 laws and regulations have been abolished by Modi’s Govt. for ease of business in India.
7. Introduced TaxPayer’s Charter, wherein the commitment of Income Tax department and expectations of the TaxPayers have been set.

Hope, this will improve the quality of assessments, even if there would be more litigation at ITAT/HC/ SC level due to difference of opinion of Tax Payers and Income Tax Department.
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⚫Promoting a transparent and fair tax regime, PM unveiled ‘taxpayers’ charter’, enshrining rights of assesses in a statute under the Income tax law. With this, India joined ranks with a handful of countries like the US, Australia and Canada that have such a provision in their law.
⚫With the launch of ‘Transparent Taxation — Honoring the Honest’ platform, PM also unveiled faceless appeal and expanded the scope of faceless assessment, eliminating physical interface between taxpayers and tax authority. It does away with territorial jurisdiction and substitutes individual discretion with team based assessment, thereby bringing in transparency.
⚫India's retail inflation rose to 6.93% in July on higher food prices, remaining above the RBI's medium-term target for a 10th straight month.
⚫The RBI imposed a total penalty of Rs 10 lakh on four cooperative banks for deficiencies in regulatory compliance. The penalty has been imposed for contravention of the directions issued by RBI on 'Exposure Norms and Statutory/Other Restrictions-UCBs.
⚫With a record single-day increase of 66,999 cases, India's COVID-19 tally rose to 23,96,637, while the death toll climbed to 47,033 with 942 people succumbing to the disease.
⚫A record high of over 8 lakh tests have been done for detection of COVID-19 in a span of 24 hours, taking the cumulative testing figure in India to 2.68 crore.

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Income Tax update in F.Y. 2020-21
All transaction show in 26AS and also fill in Income Tax return---

1) payment of educational fee/donations above Rs. 1 lac p.a.
2) electricity bill Rs. 1 lakh Or above
3) Domestic business class air travel/foreign travel. 
4) payment to hotels above Rs. 20000/-
5) Purchase Of jewellery, painting, mobile etc above Rs. 1 lac. 
6) deposit in current account above Rs. 50 lakh. 
7) Deposit in saving account above Rs. 25 Lakh. 
8) payment bof property Tax above Rs. 20000 p.a.
9) life insurance premium above Rs. 50000/-
10) health insurance premium above Rs. 20000/-
11) Share Transactions/D-mat accounts/ Bank Lockers
Compulsory Filing of return by the person having bank transaction above Rs. 30 Lakh, all professionals, business having turnover above Rs. 50 Lakh, payment of rent above Rs. 40000/-
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✒️ Supreme Court held that daughters would have equal coparcenery rights in Hindu Undivided Family (HUF) properties even if they were not alive at the time of the 2005 amendment to the Hindu Succession Act, 1956.
✒️ Supreme Court has observed that considerable unexplained delay on the part of Drug authorities to test a sample can render any penalty under Drugs and Cosmetics Act, 1940, based upon the said analysis of the sample, as void.
✒️ Supreme Court has dismissed plea filed by Mahua Moitra which challenged the Centre's circular which states that Chief Minister's Funds or State Relief Funds will not come within the purview of Corporate Social Responsibility (CSR) activities under Section 135 of the Companies Act, 2013.
✒️ Supreme Court has sought the Centre's response on whether Telecom Spectrum can be sold/ auctioned in the insolvency proceedings faced by the telecommunication companies.
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⚫The Supreme Court  ruled that the daughters cannot be deprived of their right of equality and will have equal coparcenary rights in joint Hindu family property even if the father died before the Hindu Succession (Amendment) Act 2005.   
⚫The IIP contracted by 16.6% in June compared to 33.8% in May and a record 57.6% slide in April. This is likely to pull down first-quarter GDP of 2020-21, the data for which would be released this month-end.
⚫The I-Tax dept unearthed a massive nexus of Chinese co's and individuals that had allegedly created several shell firms to carry out money laundering and hawala transactions of over Rs 1,000 crore.
 
⚫With tighter debt recast norms announced by the RBI, the likely restructuring by banks will be around 5-8% of their overall loan book
⚫The Railways has stated that all regular passenger train services will remain suspended till further notice, but 230 special trains will continue to be in service.
⚫Over 10 lakh Indians have returned from abroad after the Govt launched the "Vande Bharat" evacuation mission.
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CBDT has conveyed that it is targeting to complete close to 49,500 Scrutiny Assessments under Faceless e-Assessment Scheme by September-15-2020. Till date out of Total 58,319 Cases picked up for Faceless Scrutiny Assessment for the AY 2018-2019, 8,700 Cases have been disposed off.  
Dear Members keep follow up the pending Scrutiny cases and no excuse of Covid-19 this time.
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Central Board of Direct Taxes (CBDT) chief set a monthly target of disposing of pending appeals by sending communication through the e-filing portal and or through emails only.
Dear Members keep follow up the pending Appeal Before CIT(A).
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⚫PM is likely to unveil new measures to promote tax-friendliness and transparency, during a video conference with officers and taxpayers scheduled for Thursday. These measures may include the unveiling of a taxpayer charter to empower assessees by outlining their rights to get time-bound services, and expansion of the scope of faceless assessment to prevent harassment.
⚫FPI in domestic equities has turned positive for the year. Sustained flows over the past four months have helped erase the deficit caused by record selling in March and April. 
⚫The 1787 big wilful defaulters owe more than Rs 37,000 crore to PNB as of the end of the first quarter of 2020-21, according to the list of wilful defaulters with outstanding of Rs 25 lakh and above as of June 30 uploaded on the PNB website.
⚫The country's gem and jewellery exports contracted by 38.10% in July to $1.35 billion due to weak global demand on account of the Covid-19, according to the Gems and Jewellery Export Promotion Council.
⚫Half of the world's youth population is subject to anxiety or depression-causing circumstances and more than a third are uncertain of their future career prospects due to the Covid-19, according to a survey by International Labour Organization.
⚫India has recorded its worst spike of 67,066 coronavirus cases, taking its total to 2,395,471. With 950 fatalities India's death toll now stands at 47,138.
⚫PM is likely to unveil new measures to promote tax-friendliness and transparency, during a video conference with officers and taxpayers scheduled for Thursday. These measures may include the unveiling of a taxpayer charter to empower assessees by outlining their rights to get time-bound services, and expansion of the scope of faceless assessment to prevent harassment.
⚫FPI in domestic equities has turned positive for the year. Sustained flows over the past four months have helped erase the deficit caused by record selling in March and April. 
⚫The 1787 big wilful defaulters owe more than Rs 37,000 crore to PNB as of the end of the first quarter of 2020-21, according to the list of wilful defaulters with outstanding of Rs 25 lakh and above as of June 30 uploaded on the PNB website.
⚫The country's gem and jewellery exports contracted by 38.10% in July to $1.35 billion due to weak global demand on account of the Covid-19, according to the Gems and Jewellery Export Promotion Council.
⚫Half of the world's youth population is subject to anxiety or depression-causing circumstances and more than a third are uncertain of their future career prospects due to the Covid-19, according to a survey by International Labour Organization.
⚫India has recorded its worst spike of 67,066 coronavirus cases, taking its total to 2,395,471. With 950 fatalities India's death toll now stands at 47,138.
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👉🏻HC issues notice to Govt challenging the restriction of ITC u/s 36(4) of GST

The Hon’ble Bench of Rajasthan High Court has issued notice to Govt, in case of Rule 36(4), which places a restriction on availment of ITC @10/20% over and above amount reflected in GSTR 2A, despite having valid Tax Invoice. discussed by CA. Satuti Mahajan 
👇🏻 👇🏻 👇🏻
https://youtu.be/JDH6IKOdaNE
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✒️ Punjab and Haryana High Court has stayed two notifications of the Government of Haryana including the OBC 'Gadaria' community as Scheduled Caste, noting that the State Government has no power under Article 341 of the Constitution of India, 1949 to specify any caste, race or tribe, or part or group.
✒️ Punjab and Haryana High Court has imposed costs of Rs. 1,00,000/- on the Directors of a Mumbai-based company, who had appeared before it against disqualification order passed against them, only to reap benefits of a precedent set by the High Court, without there being territorial jurisdiction.
✒️ Jammu and Kashmir High Court has sought comments from the Union Territory Administration as to how to make all recruitments and promotions strictly in terms of the Rules governing the post and not in-charge basis, noting that because of ad-hocism in recruitment and promotions, a lot of litigation is being generated by the government.
✒️ Karnataka High Court has directed the Registrar General of the High Court to register a suo-motu criminal Petition under Section 482 of the Code of Criminal Procedure, 1973 to quash a private complaint lodged against a Judicial Magistrate First Class.
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Chinese Exports To India Fall By 24.7 Per Cent Even As India's Exports To China Rise By 6.7 Per Cent
Aug 10, 2020 12:43 PM

Time to boycott products made in China to show solidarity with the martyred soldiers.
The Chinese exports to India since January have fallen by 24.7 per cent year on year to $32.28 billion amid growing calls to boycott China after its aggression along the Line of Actual Control (LAC), India Today has reported.

The total trade between the two countries has thus been slashed to $43.47 billion - a drop of 18.6 per cent.

One of the biggest blows to China has come in the form of its share in the Indian smartphone market which has come down from 81 per cent to 72 per cent.

Incidentally, the exports from India to China though have registered a growth of 6.7 per cent since January to rise to $11.09 billion. China imported a record high 27,207 metre of PVC from India in June - more than five times compared to 5,174 metre recorded in May as India accelerated PVC exports during the Covid-19 lockdown.

The central government is also scrutinising a list of Chinese import items which can instead be supplied by local industries under the Atmanirbhar Bharat campaign.
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⚫The Nomura India Business Resumption Index, which tracks the pace of economic activity, showed a slight improvement in the week ended August 9, but economists said the data point to an uneven recovery and largely reflect pent-up demand.
⚫The market value of the world's equities has risen above the dollar value of the global economy, which some investors say is a sign of overheated markets.Total market capitalisation reached $87.83 trillion, compared with the 2019 GDP of all countries, at $87.75 trillion. 
⚫Daily road construction during the three-month-long nationwide lockdown hovered around 18 km a day as the Govt and the NHAI used labour optimally to complete work with minimal hindrance.
⚫To provide Rs 50,000 crore equity support to stressed MSME units, a Fund of Funds announced as part of the Rs 20.97 trillion Aatmanirbhar Bharat Abhiyan package is expected to get operation soon.
⚫Crisil said that the central bank's move on restructuring will help soften the Covid-19 impact on the asset quality of banks. Without this, gross NPAs could have touched a two decade high of 11.5% by March 2021, but will now likely print considerably below that level.
⚫The coronavirus cases in India jumped to 2.22 million with the country reporting 62,064 new infections on Monday. The death toll from the pandemic reached 44,597.
⚫Healthy and well spread rainfall this year raises hope amid the woes stemming from the Covid-19. Never­theless, as the monsoon season progresses, select regions are experiencing a shortage in rainfall, while others have to deal with an abundance of it. 

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