Ø SoftBank said to near a deal to sell British chip designer arm
Ø Steel demand surges on the back of rise in automotive sales
Ø CBDT deploys two-third of its workforce for faceless assessment scheme
Ø ArcelorMittal, Dastur set to research on solution for carbon capture
Ø Auto component industry seeks long term roadmap for regulatory changes
Ø Tata Motors plan to achieve net debt zero target by FY24
Ø Sebi issues clarification on asset allocation framework for multi-cap MFs
Ø BEL upbeat on defence biz prospect, seeks to ride govt's self-reliance push
Ø Retail inflation to come down with easing of lockdowns: CEA Subramanian
Ø Discoms' outstanding dues to power gencos rise 36% to Rs 1.29 trn in July
Ø India to be self-reliant in fertilisers production by 2023: Gowda
Ø Listed power cos have ₹11,252 cr of bills pending for over 2 years
Ø Marico plans to inject a booster dose to foods biz
Ø CBIC suspends licence of 56 Customs brokers
T.R
Ø Clinical trial resumes on AstraZeneca-Oxford University Covid-19 vaccine
Ø MFs to seek time to comply; plan alternatives to ‘protect’ investors
Ø ByteDance tells US it won’t sell TikTok’s algorithm: Report
Ø Mutual funds withdraw ₹17,600 crore from stocks in July-August
Ø Covid treatment accounted for 11% of health insurance claims in Apr-Aug: Study
Ø FPIs turn net sellers in September, pull out ₹2,038 cr so far
Ø Carlyle may pick up $2 billion stake in RIL’s retail arm
Ø India’s coal import drops 35% in Aug on lower demand from power, cement players
Ø SBI Card to enrol ‘delinquent’ customers in restructuring plans: MD
Ø 13 lakh new retail investors added in stock market in past one month.
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All about Indian Insolvency Laws
All about Personal Guarantor
Answer of your questions on Personal Guarantee
2.3 Pre-initiation of CIRP against Principal Borrower
2.3.1 Pre insolvency right of the creditor does not undergo any metamorphosis on the principle
2.3.2 Whether the application u/s 7 of the Code is maintainable against the Corporate Guarantor
without initiation of CIRP against the principal borrower (principal debtor)
2.3.3 Can a financial creditor file an insolvency application against a company which has issued
corporate guarantee in connection with the loan made available by the financial creditor to an
individual or sole proprietorship?
2.3.4 Whether a Guarantor (third party) can be treated as Financial Creditor of the principal debtor
when it makes repayment of the loan that had been advanced by a financial creditor to the
principal debtor?
2.4 During ongoing CIRP of Principal Borrower
2.4.1 Separate application for initiation of resolution process require to be filed against the
Guarantor before the same very Bench of the AA who is hearing the CIRP or liquidation proceeding
against principal Corporate Debtor
2.4.2 Whether the CIRP can be initiated against two Corporate Guarantors simultaneously for the
same set of debt and default? The question can be looked from another angle. Whether the
Financial Creditor can claim same amount from the Resolution Professional appointed pursuant
to the CIRP against the Corporate Guarantor No.1, as also from the Resolution Professional
appointed pursuant to CIRP initiated Corporate Guarantor No.2?
2.4.3 Once the Financial Creditor’s claim has been collated and admitted by the IRP in its entirety,
invoking of jurisdiction of the Adjudicating Authority at its instance for triggering a fresh CIRP
against the Corporate Guarantor would amount to duplicity of claims being pressed.
2.5 During ongoing CIRP of Corporate Guarantor
Whether a creditor in whose favor an entity has provided a corporate guarantee file a claim with
resolution professional, if the creditor has not invoked the corporate guarantee prior to
commencement of CIRP of corporate guarantor?
2.6. After Approval of Resolution Plan of Principal Borrower
Whether the liability of a guarantor of a debt of a corporate debtor stands reduced/extinguished
upon an Insolvency Resolution Plan in respect of the corporate debtor, being approved under the
Insolvency and Bankruptcy Code, 2016?
………….and more, all at one place.
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⚫The Govt is mulling to leverage power for cooking in a big way to help the poor.The power will provide poor strata of the society a cheaper option for their day to day requirement, move the nation towards self reliance and make it independent from imports (petroleum).
⚫The CBDT has deployed two-third of its workforce to deal with the faceless assessment scheme. ReAC has also been increased to 34 from 8 earlier.
⚫SEBI said that mutual funds have many options to meet with the requirements of its circular pertaining to asset allocation framework for multi cap schemes based on the preference of their unit holders.It clarified that apart from rebalancing their portfolio in the Multi Cap schemes, mutual funds (MF) could inter-alia facilitate switch to other schemes by unit holders, merge their Multi Cap scheme with Large Cap scheme or convert their Multi Cap scheme to another scheme category, for instance, Large cum Mid Cap scheme.
⚫The finance ministry said banks have sanctioned loans worth over Rs 1.63 trillion to more than 4.2 million business units under the Rs 3-trillion Emergency Credit Line Guarantee Scheme for the MSME sector.
⚫The Dept for Promotion of Industry and Internal Trade is working on two schemes -- credit guarantee and seed funds -- to support startups in the country. There would be a corpus in the credit guarantee scheme which would be given to banks and they will leverage that to lend.
⚫Minister of Health and Family Welfare has said that India may get a vaccine against the coronavirus in the first quarter of 2021.
⚫Parliament is fully prepared for the 18-day Monsoon Session from Monday under the shadow of the pandemic with many firsts, including sitting of the two Houses in shifts without any off day, entry only to those having a negative report and compulsory wearing of masks.
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GST UPDATE ON ITC AVAILABILITY ON TRANSPORTATION SERVICES AVAILED FOR EMPLOYEES
The restrictions as regards availment of input tax credit on hiring of motor vehicles has created confusion in the minds of employers regarding admissibility of input tax credit on transportation services availed for the commutation of their employees from third parties. This issue was recently raised before the Hon’ble Maharashtra AAR in the case of M/S TATA MOTORS LTD. which is the subject matter of discussion in our present update.
In this case, applicant had engaged third party service provider to provide transportation facility to its employees in non-air-conditioned buses having seating capacity of more than 13 persons. To ensure that transportation facility is used only by authorized persons/employees, applicant is issuing pass to employees and nominal amount is recovered on monthly basis. The applicant has sought an advance ruling to determine availability of ITC on GST charged by service provider on hiring of bus/motor vehicle for transportation of employees and applicability of GST on such nominal amount recovered from employees. It also sought that if ITC is available, whether it will be restricted to the extent of cost borne by the applicant.
The AAR observed that with effect from 1-2-2019, section 17(5) of CGST Act, 2017 has been amended to allow ITC on leasing, renting or hiring of motor vehicles, for transportation of persons having approved seating capacity of more than thirteen persons (including the driver). Since in the given case, the applicant is using non-air conditioned buses having seating capacity of more than 13 persons, it shall be eligible for ITC but only after 1-2-2019.
On question of chargeability of GST on nominal amount charged from employees, AAR observed that once employee ceases to be in employment with applicant, he/she is not authorized to use the transportation facility. In other words, employer-employee relationship is must to avail this facility and the facility can be treated as perquisite given by the applicant to its employees. As per clause 1 of the Schedule III of the CGST Act, services by an employee to the employer in the course of or in relation to his employment shall he treated neither as a supply of goods nor a supply of services. Since the applicant is not supplying any services to its employees, in view of Schedule III, GST is not applicable on the nominal amounts recovered by applicants from its employees.
Further, on question of restriction of ITC to the extent of cost borne by the applicant employer, AAR referred the decision given by the Hon'ble High court of Bombay in the case of CCE, NAGPUR V. ULTRATECH CEMENTS LTD. and held that ITC is not admissible to applicant on the portion of cost borne by employee and thus, ITC will be restricted to the extent of cost borne by the applicant.
The ruling is no doubt favourable to the assessee but we wish to add our point regarding non-taxability of GST on nominal charges recovered by employer from the employees for transportation facility provided to them. Reference may be made to AAR ruling in the case of M/S. POSCO INDIA PUNE PROCESSING CENTER PRIVATE LIMITED [2019 (21) G.S.T.L. 351 (A.A.R. - GST) and M/s ION TRADING INDIA PRIVATE LIMITED wherein it was held that premium amount recovered for making payment to insurance company for providing mediclaim facilities by employer to its employees cannot be treated supply of service by employer under GST law because employer is not engaged in providing insurance services and the said activity is not in course or furtherance of its business so as to levy GST. It appears that this reasoning is convincing and was missed while ruling that the amount recovered from employees for transportation facility is not liable to GST. It is hoped that similar advance ruling is pronounced for other facilities provided by employers such as canteen facilities which is also in terms of employment contract.
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✒️ Supreme Court has dismissed yet another plea seeking for postponement of the NEET UG-2020 examination in wake of the COVID-19 pandemic and floods ravaging the country.
✒️ MCA has issued a circular to provide Relaxation of additional fees and last date of filing form CRA-4 to 30th November 2020
✒️ Karnatak High Court while dismissing a plea filed by a rape convict stated that the court shall act as Lord Shri Krishna of Mahabharatha to protect in order to protect safety of women.
✒️ Delhi High Court ruled that an accused has a right to be heard to oppose an application for extension of time for completion of investigation accruing out of the proviso to Section 167 of the Cr.P.C. as modified by Section 43(D)(2) of the Unlawful Activities (Prevention) Act, 1967 for investigations under UAPA.
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⚫Industrial production contracted for the fifth consecutive month in July, by 10.4%. All the components of the Index of Industrial Production (IIP) — mining, manufacturing, and electricity — saw contraction, albeit at a smaller magnitude compared to the previous month.
⚫Moody’s expects India’s real GDP to contract 11.5% in the FY21, becoming the latest agency to cut forecast after the first-quarter data showed a sharper-than-expected contraction and a sluggish recovery in indicators thereafter.
⚫The country's foreign exchange reserves rose by USD 582 million to reach a lifetime high of USD 542.013 billion in the week ended Sept 4.
⚫The banking sector needs to increase focus on the artificial intelligence strategy, data management, internal digitisation, talent creation and developing safe systems, the Institute for Development and Research in Banking Technology said.
⚫India has recorded its biggest 24-hour spike of 97,654 coronavirus cases. With this, India's tally has surged to 4,657,379. In the past seven days, India has recorded 636,889 Covid cases.
⚫India's armed forces are ready for any eventuality, even as tensions between India and China remain high following "provocative behaviour of Chinese frontline troops" along the LAC.
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✅ GST Updates GSTR-3B May-2020
🌴 Aggregate Turnover upto Rs. 5 Cr in preceding FY
🎯 Whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.
🎯Note: If GSTR-3B is filed after 12.09.2020 but upto 30.09.2020, then Interest @9% p.a. and Late Fees Upto Rs. 500 shall be levy.
🎯Important Note: If GSTR-3B is filed after 30.09.2020, then Interest @18% p.a. and Late Fees shall be Rs. 50/20 per day w.e.f. 23-05-2020.
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⚫China has mobilised thousands of soldiers, tanks and howitzers within rifle range of Indian Army deployment at Spanggur Gap in the southern part of Pangong Tso in eastern Ladakh, even as Indian troops are on high alert.
⚫The ED has issued seizure orders on properties worth Rs 89 crore held by DMK MP S Jagathrakshakan and his family members.The assets are equivalent in value to foreign securities that were illegally acquired from a Singapore based Co in contravention of Section 4 of FEMA.
⚫India's mid and small cap stocks are set to receive a boost after the regulator tweaked rules for multi-cap mutual funds, a move analysts say could push about 400 billion rupees to the broader market. Multi-cap funds must hold at least 75% of their assets in equities -- up from 65% at present -- with 25% each in large, medium and smaller companies to ensure they stick to their mandate of investing in a wide set of stocks.
⚫Over 1.5 million candidates are expected to appear in medical entrance exam NEET on Sunday which will be conducted amid strict precautions in view of the Covid-19.
⚫India reported its biggest single-day jump in total coronavirus cases. The total count of cases is now at 4659984, with 97,570 cases getting added in 24 hours.
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👉 Update regarding enabling on e-invoice portal (https://einvoice1.gst.gov.in/)
https://www.gst.gov.in/newsandupdates/read/399
👉 Relaxation of additional fees and extension of last date of filing of CRA-4 (form for filing of cost audit report) for FY 2019-20 under the Companies Act, 2013Pdf(761 KB)
http://www.mca.gov.in/Ministry/pdf/circular_10092020.pdf
👉 Completion of MCS Course and Advanced IT Course through Virtual Mode as one-time measure due to COVID -19 by the students who have passed Final exam on or before November 2018 and were already registered in www.icaionlineregistration.org for physical mode training-(10-09-2020)
https://www.icai.org/post/completion-mcs-course-advit-course-vm
👉 Invitation of Comments on SEBI Consultation Paper on The Format for Business Responsibility and Sustainability Reporting - (10-09-2020)
https://www.icai.org/post/invitation-comments-on-sebi-consultation-paper-srsb
👉 Registrar of Companies of various regions have extended the time for holding of Annual General Meeting (AGM) for the financial year ended on 2019-20 by three months from the due date - (10-09-2020)
https://www.icai.org/post/registrar-companies-various-regions-ext-agm
👉 Compliance functions in banks and Role of Chief Compliance Officer (CCO)
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11962&Mode=0
👉 RBI Bulletin - September 2020
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50349
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