8th January 2K21
Ø Economists to hold virtual meet with PM Modi, FM Sitharaman and MoS Finance Anurag Thakur
Ø Equalisation levy does not discriminate against US firms: India
Ø IBC has delivered 95% rescue rate: MS Sahoo
Ø CBDT issues protocols in case of treaty-exchanged data breach
Ø Unemployment rate surges to 9.1% in December: CMIE
Ø NALCO to invest Rs 30,000 crore on expansion by 2027-28: Pralhad Joshi
Ø Tesla Founder Elon Musk is now the richest person on the planet
Ø India's fiscal deficit likely to be over 7% in 2020/21: Report
Ø Sebi's regulatory cap on NRI investments may affect AIFs GIFT move
Ø RBI to conduct this year's 2nd Operation Twist on January 14
Ø Indian borrowers begin 2021 on a high, sell bonds worth $2.1 billion
Ø US trade deficit jumps to $68.1 billion in November amid surge in imports
Ø Abu Dhabi's ADQ to invest $75 mn in Biocon Biologics for 1.8% stake
Ø Crypto market value tops $1 trillion as Bitcoin hits $37,000: Report
Ø Tata Power bags 110-MW solar power project from KSEBL
Ø ABB India launches circuit breakers for electrical retail market
Ø USTR: India’s equalisation levy is discriminatory, burdens firms
Ø Hiring in Dec 2020 up 14% over Nov: Naukri report
Ø IL&FS Solar Power repays entire debt of ₹845 crore
Ø NHPC gets NCLT's nod to take over Jalpower Corporation
Ø US trade deficit rises to more than 14-year high
Ø Oil touches fresh 11-month highs after US inventory fall
Ø L&T Hydrocarbon bags offshore contract from ONGC
Ø Lupin gets USFDA nod for generic diabetes drug
Ø BSE-listed companies' m-cap zooms to record ₹193.18 lakh crore
Ø Income tax dept. conducts surveys at Flipkart and Swiggy offices
Ø Govt procures 521.5 lakh tonnes of paddy so far at MSP, costing ₹98,457 crore
Ø GDP estimates point at sustained V-shape economic recovery: Finance Ministry
Ø India implemented several measures to facilitate trade during 2015-20: WTO
Ø RBI ask banks to align internal audit function with global best practices
Ø Petrol price at all-time high, diesel crosses Rs 81 in Mumbai
Ø Saudi Arabia to lift Qatar embargo, easing the Gulf crisis
Ø Skoda to roll out mid-size SUV Kushaq in 18 months
Ø Tatas plan to infuse Rs 3,500 crore in Tata Cliq
Ø Reserve Bank of India to be on a long-pause in rates on sticky non-food inflation: Report
Ø Maruti Suzuki's production rises 34 pc at 1,55,127 units in December
Ø Thermal coal imports at major ports fall 16% to 55 MT in Apr-Dec period: IPA
Ø NBFCs may see 7-9% growth in AUM next fiscal: Icra
Ø Tata Motors eyes lost ground, brings back Safari to push SUV sales
Ø Govt to hold spectrum auctions from March 1; DoT invites applications
Ø Delhi HC asks SBI to maintain status quo on accounts of Anil Ambani's firms
Ø Sale of 21 MTNL land assets hits roadblock as DoT refuses to give up funds
Ø Currency in circulation expands 22% in 2020 amid Covid-19 pandemic
Ø Alibaba Group plans to sell up to $8-billion bonds in show of strength
Ø Great Depression, rather than Roaring 20s, is NITI Aayog’s post-pandemic world view
Ø WTO: India frequently changing tariffs creates trade uncertainties
Ø $646-million NDB loan for AP road projects
Ø Coal India hopes to end the fiscal with auction bookings of 120 mt
Ø Amazon-Future Retail case: Singapore Arbitration Centre appoints third arbitrator
Ø Videocon’s lenders give nod to Vedanta’s ₹3,000-crore offer
Ø Sebi sets stage for new bourses, depositories
Ø Crude collapse hands payday to oil trader Pierre Andurand
Ø Electricity sector to recovery in FY22 after a dismal Covid year: ICRA
Ø SBI raises $600 mn through offshore bonds
Ø JK Tyre enters partnership with Hyundai Motor India for its SUV Creta
Ø Covid impact: Housing sales down 37%, office leasing dips 35% in 2020
Ø EPFO, PFs can now invest in Bharat Bond ETFs: Centre
Ø India considers creating bank with $13.7 billion equity capital to fund roads
Ø Rupee falls to 73.18 on wider trade deficit worries
Ø Private lenders report healthy loan growth in Q3
Ø NBFC AUM growth would revive in FY22 to about 7-9%: Icra
Ø india has third largest startup ecosystem, home to 21 unicorns: Ambassador to US
Ø UPI transactions in 2020 break record, grow by more than 100 per cent
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⚫The Centre’s fiscal deficit will touch at least 6.1% of GDP in FY21.This is based on the first set of advance growth estimates released by the Govt, ahead of the Union Budget.
⚫Gross Value Added for agriculture and allied activities is expected to grow at 3.4% at constant prices in the financial year 2020-21, lower than last year but the best growth among all other sectors battered in the pandemic.
⚫The Jammu and Kashmir administration announced a new industrial developmental scheme with a total outlay of Rs 28,400 crore to encourage new investment and to take industrial development to the block level.
⚫LIC launched a campaign where lapsed policies can be revived.
The insurance behemoth has launched a Special Revival Campaign starting from Jan 7 till March 6 for its customers to revive their lapsed individual policies subject to certain conditions.
⚫Petrol price climbed to Rs 84.20 a litre in the national capital on Thursday. This marks the highest ever price at which petrol has been sold in New Delhi.
⚫The I-tax dept is conducting surveys at Instakart, a group company of e-commerce giant Flipkart, and food delivery firm Swiggy in Bengaluru. The surveys are related to an alleged bogus input tax credit connected to the external vendors of these firms.
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Important changes in Bank branch audit
*No cooling period for Bank Branch Audit for CAs.*
Norms on eligibility, empanelment and appointment of Statutory Branch Auditors in Public Sector Banks from the year 2020-21 and onwards
Policy finalised by RBI, major changes done as below rest point same
1.A. Norms for selection of branches of Public Sector Banks (PSBs) for Statutory Audit
i. Statutory branch audit of PSBs should be carried out so as to cover 90% of all funded and 90% of all non-funded credit exposures of a bank. The selection of branches for statutory audit shall include a representative cross section of rural/semi-urban/urban and metropolitan branches, predominantly including branches which are not subjected to concurrent audit. CPUs/LPUs/and other centralised hubs, by whatever nomenclature called, would be included for branch audit every year. The selection of branches shall be finalised by each PSB with the consent of their Statutory Central Auditor/s.
IMPACT
Removal of mandatory audit of 1/5 branch with advance size less than 20 cr
***Now not compulsory to cover all branches, it may reduce no of branches in audit...
2. Policy point no 4. The concept of compulsory rest for two years for audit firms located in the specified centres, after completion of four years of continuous branch audit, followed till FY 2019-20 has been done away with. Instead, the branch auditors across all the centres of the country, on completion of four years of continuous branch audit, will be subjected to the policy of rotation i.e. they may be considered for appointment as SBAs of any other PSB. However, the audit firms will not be eligible to be re-appointed as SBAs, in the same bank where they completed their audit assignment prior to rest/rotation, at least for one cycle of four years.
IMPACT:-
cooling concept removed now no cooling after end of 4 years in all cities
3. The definition of ‘exclusive association’, ‘professional staff’, and ‘standing of the audit firm’ will be the same as defined in the norms for empanelment of Statutory Central Auditors of Public Sector Banks...
IMPACT :-
Remuneration limit also applicable under sba like CAG.
4. New policy also removed line :- max 3 branches per firm
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Advisory on Invoice Furnishing Facility (IFF) for Taxpayers under QRMP Scheme
An Invoice Furnishing Facility (IFF) facility has been provided to taxpayers under QRMP Scheme (Quarterly filers of Form GSTR-1 and also of Form GSTR-3B returns), as per sub-rule (2) of Rule-59 of the CGST Rules, 2017. Taxpayers who have opted for quarterly filing frequency under the scheme can file their details of outward supplies (B2B invoices only) for first two months of a quarter (M1 and M2 respectively of a Quarter) in IFF. For e.g. for Apr-June qtr., B2B invoices only for the months of April (M1) and May (M2) can be filed in IFF by a taxpayer.
The IFF is a facility similar to Form GSTR-1, and it allows filing of details of B2B invoices in following tables only:
a.4A, 4B, 4C, 6B, 6C - B2B Invoices
b.9B - Credit / Debit Notes (Registered) - CDNR
c.9A - Amended B2B Invoice - B2BA
d.9C - Amended Credit/ Debit Notes (Registered) – CDNRA
The option to upload details in IFF can be availed till 13th of the subsequent month. Any invoices remaining to be furnished, can be filed using the IFF in the subsequent month IFF or in the quarterly Form GSTR-1. For e.g. for Apr-June qtr., B2B invoices for the month of April (M1) can be filed in IFF by a taxpayer till 13th May. Any IFF which is not filed till the due date of 13th of the subsequent month will expire.
To file the IFF form for M1 and M2 of the month, login to GST Portal and navigate to Returns > Services > Returns Dashboard > File Returns and then
oSelect the Financial Year & Return Filing Period (M1/M2 of a quarter) and click on SEARCH button to file the IFF forms for M1 or M2 month.
IFF is an optional facility provided to taxpayers under QRMP scheme to pass on Input Tax Credit (ITC) to their recipients for M1 and M2 months of a quarter. However, filing of Form GSTR-1 for M3 month of a quarter is mandatory.
a.Records uploaded in IFF by the Supplier will reflect in Form GSTR-2A/2B of the Recipient.
b.Supplier Taxpayers can also upload details in their IFF, through JSON file, generated using Returns Offline Tool.
c.Records filed in IFF need not be filed again in Form GSTR-1 of that quarter.
d.Only the details saved in IFF can be deleted/edited using RESET button. Once submitted or filed, these details can’t be deleted.
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FAQs > Furnishing Documents in Invoice Furnishing Facility (IFF) under QRMP Scheme
Overview
1. What is Invoice Furnishing Facility (IFF)?
Invoice Furnishing Facility (IFF) is a facility provided to quarterly taxpayers to file their details of outward supplies in first two months of the quarter (M1 and M2). The facility will be similar to FORM GSTR-1 but will allow filing for only following tables:
a. 4A, 4B, 4C, 6B, 6C – B2B Invoices
b. 9B – Credit/ Debit Notes (Registered)
c. 9A – Amended B2B Invoices
d. 9C – Amended Credit/ Debit Notes (Registered)
2. Do I need to compulsorily file my invoices in M1 and M2 of every quarter in the IFF?
No, IFF is an optional facility provided to quarterly taxpayers only.
3. Can I late file my invoices after the 13th of the month?
No, the option to upload details by IFF will end after the 13th of the month. Any invoices remaining may be filed using the IFF of the subsequent month or in the quarterly Form GSTR-1.
4. Will my recipient view these invoices in his Form GSTR-2A / 2B?
Yes, all invoices filed by you via IFF will flow in Form GSTR-2A and GSTR-2B of the recipient.
5. Is there any late fee applicable on late filing of IFF?
No, there will be no late fee applicable on late filing of IFF as the taxpayer will not be allowed to file IFF after the end date.
Pre-requisites
6. What are the pre-requisites for filing IFF?
Pre-requisites for filing IFF are:
a. The taxpayer should be a registered taxpayer as regular or opted in or opted out of composition.
b. The taxpayer should have a valid User ID and password.
c. The taxpayer should have opted to file GSTR-1 on quarterly frequency.
Login and Navigate to IFF page
7. Where can I view the IFF form to be filled for a month?
To view the IFF form for M1 and M2 of any month, login to GST portal using your valid credentials and the navigate to Returns > Services > Returns Dashboard.
The File Returns page is displayed. Select the Financial Year & Return Filing Period (Month1 of a quarter) for which you want to file the return from the drop-down list and click the SEARCH button. The pending IFF forms for M1 and M2 will get displayed.
8. Will IFF option be available every month?
No, IFF option will be available for month M1 and M2 for every quarter. The option to file such invoices will expire by the 13th of the next month. For example, the facility for the month of January will expire by 13th of February.
Enter Details in Various Tables
9. Do I have to re-enter the details entered through invoice furnishing facility in the GSTR-1 for the quarter?
No, once details have been filed in IFF, the same need not be filed again in GSTR-1 for the quarter.
10. Does IFF include all the tables that are there in Form GSTR-1/ IFF?
No, IFF includes that only the following tables, in which you are expected to fill details.
a. 4A, 4B, 4C, 6B, 6C - B2B Invoices
b. 9B - Credit / Debit Notes (Registered) - CDNR
c. 9A - Amended B2B Invoice - B2BA
d. 9C - Amended Credit/ Debit Notes (Registered) – CDNRA
11. What happens if I miss the End date of IFF?
Post IFF end date, you will be able to only view or download the IFF form and not Save or Submit the form. However, submitted IFF can be filed even after IFF end date. Further, you can reset the details filled and saved before the end date by clicking the RESET button on GSTR-1/ IFF page.
12. Where can I view the filed IFF forms?
You can view the filed IFF forms under the ‘View Filed returns’ and ‘Track return status’ option.
RESET Function
13. For which all months of a quarter will I be able to delete saved data using the RESET button?
You can use the RESET button to delete all the saved data for all the return periods, irrespective of your filing preference or profiles (monthly or quarterly taxpayers).
14. I am not a quarterly profile taxpayer; will I still be able to view and click the RESET button to delete details?
Yes, the RESET button is available for all the taxpayer profile.
15. I have submitted IFF details, will I still be able to delete the details using RESET button?
No, you cannot delete the submitted IFF details. The RESET button is used to delete only the saved details and not submitted or filed.
Generate IFF Summary
16. How can I view the summary of details that I entered in different tiles of IFF?
You can click the GENERATE IFF SUMMARY button available at the end of tiles on IFF dashboard page, to generate and view summary of details entered.
17. How frequently can I generate the summary of details using GENERATE IFF SUMMARY button?
The summary is generated by the GST Portal automatically at an interval of every <30 minutes>.
In case you want to see the summary instantly, after you have added the invoices, you can also generate the summary by clicking the GENERATE IFF SUMMARY button. However, summary can be generated only at interval of 10 minutes. In case you attempt to generate summary, earlier than 10 minutes, you will notice an error message on top of the page.
Preview IFF
18. Do I have any option to view details, that I filled in IFF form, before submitting the form?
Yes, you can click the PREVIEW IFF button available at the bottom of the GSTR-1/ IFF page to view the details that you entered in the IFF form.
Acknowledge and Submit IFF
19. I have filled details in all the relevant tables of IFF for M1, how do I submit the details?
You can submit the details by clicking the SUBMIT button available at the bottom of the GSTR-1/ IFF page.
20. I have submitted my GSTR-1/ IFF for a month, can I make changes in the form before filing IFF of that month?
The submit button will freeze the invoices uploaded in the GSTR-1/ IFF for that particular month. You will be not able to upload any further invoices for that month. In case you have missed adding any invoice, you can upload those invoices in the next month.
File GSTR-1/ IFF
21. Is filing of GSTR-1/ IFF form is different from filing GSTR-1 or any other return?
No, the filing of GSTR-1/ IFF form is similar to filing any other return form.
22. Which call options can I use to file GSTR-1/ IFF?
You can use either of File with DSC or File with EVC options to file GSTR-1/ IFF form
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Income Tax: No capital gain tax liability on receipt of credit in partner’s capital account due to revaluation of firm. Case Name : Lupin Investments Private Limited Vs DCIT (ITAT Mumbai)
Ministry of Finance has issued a Press Release dated January 01, 2021 regarding GST Revenue collection for December 2020 recorded all time high since implementation of GST INR 1,15,174 crore gross GST revenue collected in December Revenues for December 2020 are 12% higher than the GST revenues in the same month last year.
Central Board of Indirect Taxes and Customs has issued a Notification No. 01/2021 – dated January 01, 2021 - Seeks to make amendment (2021) to CGST Rules, 2017:
Registered person shall not be allowed to furnish GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;
Registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of 99%, shall not be allowed to furnish GSTR-1 if he has not furnished the return in FORM GSTR-3B for preceding tax period.
RCM IS APPLICABLE ON DIRECTOR FEES AS PER CIR 140/10/2020 AS WELL AS IF TDS IS DECDUTED ON DIRECTOR REMUNERATION U/S 194 J EVEN THOUGH RCM IS APPLICABLE UNDER GST.
Congratulations Reserve Bank of India announced operational guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, aimed at encouraging deployment of more digital payments infrastructure across tier-3 to tier-6 centres. The fund will be used to subsidize banks and non-banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved.
ICAI has clarified that under the provisions of Chartered Accountants Act,1949 it is not permissible to members to share client information with the CRAs, except if permitted by the Auditee client.
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NSDL latest e-TDS TCS RPU Version 3.5 and FVU from FY 2007-08 download
Key Features – Return Preparation Utility (RPU) version 3.5
1.Addition of Section code 194O for Form 26Q:-
194O –TDS on e-Commerce transactions
This section will be applicable for regular and correction statements pertaining to FY 2020-21 for quarter 3 onwards.
2.Addition of Section codes 206C-O, 206C-P, 206C-Q and 206C-R for Form 27EQ:-
206C-O-Collection at source on remittance under LRS for purchase of overseas tour program package
206C-P-Collection at source on remittance under LRS for educational loan taken from financial institution mentioned in section 80E
206C-Q-Collection at source on remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution
206C-R-Collection at source on sale of goods
These sections will be applicable for regular and correction statements pertaining to FY 2020-21 for quarter 3 onwards.
3.Addition of three new columns for Form 27EQ
New columns “Whether the payment by collectee is liable to TDS as per clause (a) of the fifth proviso to sub-section (1G) or second proviso to sub-section (1H) and whether TDS has been deducted from such payment (if either “F” or “G” is selected in 680)”
AND
“Challan Number”
AND
“Date of payment of TDS to Central Government” will be added under Annexure I (Deductee details)
The above will be applicable for regular and correction statements pertaining to FY 2020-21 for quarter 3 onwards.
4. Addition of new remark value ‘D’ for section code 206CQ of Form 27EQ
D –“No collection is on account of the first proviso to sub-section (1G) of section 206C”
The above will be applicable for regular and correction statements pertaining to FY 2020-21
5. Addition of new remark value ‘E’ for section code ‘206CO’, ‘206 CP’ and ‘206CQ’ of Form 27EQ
E -“No collection is on account of the fourth proviso to sub-section (1G) of section 206C”
The above will be applicable for regular and correction statements pertaining to FY 2020-21
6. Addition of new remark value ‘F’ for section code ‘206CO’, ‘206CP’ and ‘206CQ’ of Form 27EQ
F –“No collection is on account clause (i) or clause (ii) of the fifth proviso to sub-section (1G) or in view of notification issued under the clause (ii)”
The above will be applicable for regular and correction statements pertaining to FY 2020-21
7. Addition of new remark value ‘G’ for section code 206CR of Form 27EQ
G -“No collection is on account of the second proviso to sub-section (IH) of section 206C”
The above will be applicable for regular and correction statements pertaining to FY 2020-21
8. Addition of new remark value ‘H’ for section code 206CR of Form 27EQ
H –“No collection is on account of sub-clause (A) or sub-clause (B) or sub-clause (C), or in view of notification issued under sub-clause (c), of clause (a) of the Explanation”
The above will be applicable for regular and correction statements pertaining to FY 2020-21
9. Merger of Union territories “Dadra & Nagar Haveli” and “Diu Daman
”Union Territories of “Dadra & Nagar Haveli” and “Daman and Diu” have been merged with name “Dadra and Nagar Haveli and Daman and Diu”.
Incorporation of latest File Validation Utility (FVU) version 7.0 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.166 (applicable for TDS/TCS statements from FY 2007-08 up to FY 2009-10).
This version of RPU is applicable with effect from January 2, 2021
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⚫Total market capitalisation of all listed co's on the BSE has zoomed to a record high of over Rs 191 lakh crore till Monday's trade.The markets recorded their ninth straight session of gain. The BSE Sensex closed above the 48,000 mark for the first time on Monday.
⚫FM will present the Union Budget on Feb 1, after Parliament meets on January 29 with protocols in place for the coronavirus pandemic. The Budget session would be held in two parts: from Jan 29 to Feb 15 and then from March 8 to April 8.
⚫The RBI's payment infrastructure development fund scheme, intended to create three million touch points in the country every year for digital payments with focus on developing payment infrastructure in tier-3 to tier-6 centres, has been operationalised. It will be valid for three years, effective Jan 1, 2021, but can be extended by two more years, if required.
⚫The Dept of Telecom is expected to issue the notice for upcoming spectrum auction this week that will have timelines and rules to bid for airwaves.The Union Cabinet approved a proposal for the auction of 2,251.25 MHz of spectrum worth Rs 3.92 lakh crore at the base price.
⚫British PM cancelled a planned trip to India later this month, citing the need to oversee the pandemic response at home.
⚫Let down by the Chinese vaccine candidates which have run into a major credibility crisis, Brazil has now turned to India to secure consignments of the more reliable AstraZeneca-Oxford vaccine made by the Pune-based Serum Institute of India.
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Amendments introduced with effect from 01st Jan'2021
GST New Return with effect from 01.01.2021- Invoice Furnishing Facility (IFF)
The registered person opting for the quarterly filing of GSTR-3B would be required to quarterly filing of GSTR-1;
Quarterly Return Monthly Payment (QRMP) Scheme
A registered person having aggregate turnover up to five crore rupees in the preceding financial year may be allowed to furnish quarterly return along with monthly payment of tax;
Facility to avail the Scheme would be available throughout the year.
A registered person can opt in for any quarter from 1st day of second month of preceding quarter to the last day of the first month of the quarter.
For example: - The option for the following quarter can exercise as follows: -
Sl. No.
For the quarter
Option can exercise
April, 2021 to June, 2021 During 1st Feb, 2021 to 30th April,2021
July, 2021 to Sept, 2021 During 1st May, 2021 to 31st July,2021
Oct,2021 to Dec,2021 During 1st August, 2021 to 31st Oct,2021
Jan, 2021 to March,2021 During 1st Nov, 2021 to 31st Jan,2021
The person opted for quarterly filing of GSTR-1 have the facility (Invoice Furnishing Facility-IFF) electronically on the common portal to furnish the details of such outward supplies to registered person. This facility is not mandatory and is only optional facility for the first and second months of a quarter. Not exceeding the value of fifty lakh rupees in each month. Due date for such GSTR-1 is 1st day of the month till 13th day of the succeeding month.
For Example: - For the quarter (January – March 2021)
For the month of January, from 1st February till 13th February
For the month of February, from 1st March till 13th March.
Invoices furnished using the Invoice Furnishing Facility in the first two months are not required to be furnished again in Form GSTR-1.
Registered persons can opt for the option to opt for Quarterly/Monthly return from 5th of December 2020 to 31st of January 2021.
Restriction on filing of GSTR-1 with effect from 01.01.2021
In following situations Registered person has been restricted to file GSTR-1 or Invoice Furnishing Facility (IFF):
GSTR-3B not furnished for preceding 2 months
e.g., If GSTR-3B not furnished for Jan’21 and Feb’21then the respective GSTN is not able to furnish GSTR-1 or Invoice Furnishing Facility (IFF) for the month of Mar’21.
Where the Registered person has been restricted from using the amount available in Electronic Credit Ledger (ECL) to pay liability towards tax in excess of 99% of such tax liability as per Rule 86B of CGST Rules,2017 and has not filed GSTR-3B for preceding tax period.
e.g. If GSTR-3B has not been filed for the month of Jan’21 due to restriction as per Rule 86(B) then respective GSTN is not able to furnish GSTR-1 or Invoice Furnishing Facility (IFF) for the month of Feb’21.
Restriction of payment through ITC with effect from 01.01.2021- Rule 86(B)
Payment of taxes through utilization of balances from Electronic Credit Ledger (ECL) has been restricted upto 99% of such tax liability. However, this rule is not applicable for exempt supply, Zero rated Supply and where the taxable supply is upto 50 lacs in a month.
Following are further exceptions in which the rule will not apply:
the said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file return of income under subsection (1) of section 139 of the said Act has expired; or
the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54; or
the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of unutilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54; or
the registered person has discharged his liability towards output tax through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year; or
the registered person is –
Government Department; or
a Public Sector Undertaking; or
a local authority; or
a statutory body:
E-Invoicing mandatory for businesses having aggregate turnover above Rs.100 crore with effect from 01.01.2021
The threshold limit for e-invoicing has been reduced to aggregate turnover of 100cr. of any of preceding financial year 2017-18 onwards.
The registered person falling in the threshold limit of 100 cr. will be required to report for the invoice registration portal (IRP) with effect from 01-Jan-2021.
Applicability of E-Invoicing:
E-invoicing is not Applicable for:
SEZ Units
Insurance
Banking company
Financial institutions
Goods transport agency
Passenger transport agency
Services by way of admission to exhibition of cinematographic films in multiplex screens.
E-invoicing is Applicable for: E- invoicing is required for B2B transaction and exports for following documents:
Invoice
Debit Notes
Credit Notes
E-way Bill Amendments with effect from 01.01.2021
Reduction in validity of E-way Bill period w.e.f 01-01-2021
Now the travelling distance in a day has been increased to 200 kms in a day from 100 kms in a day against E-way Bill. Thus only 1 day will be permissible for transportation of goods under cover of E-way Bill for 200 kms.
Restrictions on availment of ITC with effect from 01.01.2021
Rule 36(4) has been amended. The restriction on availment of ITC has been reduced from 10% to 5%. Now, recipient can take credit upto 105% of the eligible credit available on invoices/Debit Note which have been furnished by the supplier in GSTR-1 w.e.f 01-01-2021.
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👉🏻RBI introduces identification number to track large value transactions
(RBI said legal entity identifiers will be mandatory for all large value transactions.The LEI is a 20-digit number used to uniquely identify parties involved in financial transactions world over)
👇🏻 👇🏻 👇🏻
http://bit.ly/394iZ6f
👉🏻Management Representation Letter (MRL)
(Importance of MRL in Audits (Statutory Audits / Tax Audits and others) with Illustration)
👇🏻 👇🏻 👇🏻
https://bit.ly/3q5G6nV
👉🏻Due date for filing GST Returns for period October - December is January 13 - GSTN
(The date currently being shown in the GSTR-1 tile is 31.01.2021 which is erroneous and the correct date i.e. 13.01.2021 will be displayed on the portal soon," GSTN clarified)
👇🏻 👇🏻 👇🏻
http://bit.ly/2Xeb2FZ
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BCL Industries:Tdg @ 3.3xFY22EEPS
TP:250
✅Most Undervalued Agri/Diversified story
BCL Industries is one of the largest grain based ethanol supplier in the nation. It is the only company in the South East Asian region to have a forward and backward integrated distillery plant engaged in the manufacturing and bulk supply of Extra Neutral Alcohol (ENA) / Ethanol and bottling of liquor. The company is further coming up with another grain based ENA / Ethanol plant with a capacity of 200 KLPD and 10 MW co-generation power plant, in Kharagpur, West Bengal, which is expected to be commissioned in the second half of FY22 which will ensure strong growth over FY22 and FY23. The company is also diversified into edible oils and has monetised its land bank through real estate development, the proceeds of which would be used to repay of the debt of the company and *can potentially make the company debt free*. The company has had a 11% CAGR in topline and 40% CAGR in bottomline over the last 3 years.
💎 Investors may remember Prakash Pipes was advised @ 35 just 6 months back.
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⚫The Supreme Court said it would hear on Jan 11 a batch of pleas challenging the new farm laws as also the ones raising issues related to the ongoing farmers' protest at Delhi borders. Union leaders said thousands of farmers would take out the tractor march from all protest sites on January 7.
⚫Domestic drug market bounces back in Dec, ends CY20 with 3.1% growth. Clocks 8.5% growth in December, up sharply from November's 1% due to revival in volume growth.
⚫The union Govt has allowed the employees' provident fund organisation to invest in public sector debt exchange traded funds such as Bharat Bond.The Bharat Bond ETF is a debt ETF that invests in AAA rated bonds of PSUs such as IOC, Hudco among others.
⚫India will hold spectrum auctions from March 1, offering 2251.25 megahertz worth Rs 3.92 trillion, according to DoT
⚫Finmin move to catch fake GST bills to hit genuine taxpayers too: industry says ministry's new curbs will impact businesses that usually have accumulated credits, as they will have to discharge output tax liability in cash instead of available credit balance.
⚫One in five elderly persons in India has mental health issues. Around 75% of them suffer from a chronic disease & 40% have some or other disability. These are the findings released by the health ministry.
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Income Tax: No capital gain tax liability on receipt of credit in partner’s capital account due to revaluation of firm. Case Name : Lupin Investments Private Limited Vs DCIT (ITAT Mumbai)
Ministry of Finance has issued a Press Release dated January 01, 2021 regarding GST Revenue collection for December 2020 recorded all time high since implementation of GST INR 1,15,174 crore gross GST revenue collected in December Revenues for December 2020 are 12% higher than the GST revenues in the same month last year.
Central Board of Indirect Taxes and Customs has issued a Notification No. 01/2021 – dated January 01, 2021 - Seeks to make amendment (2021) to CGST Rules, 2017:
Registered person shall not be allowed to furnish GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;
Registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of 99%, shall not be allowed to furnish GSTR-1 if he has not furnished the return in FORM GSTR-3B for preceding tax period.
RCM IS APPLICABLE ON DIRECTOR FEES AS PER CIR 140/10/2020 AS WELL AS IF TDS IS DECDUTED ON DIRECTOR REMUNERATION U/S 194 J EVEN THOUGH RCM IS APPLICABLE UNDER GST.
Congratulations Reserve Bank of India announced operational guidelines for the Payments Infrastructure Development Fund (PIDF) scheme, aimed at encouraging deployment of more digital payments infrastructure across tier-3 to tier-6 centres. The fund will be used to subsidize banks and non-banks for deploying payment infrastructure, which will be contingent upon specific targets being achieved.
ICAI has clarified that under the provisions of Chartered Accountants Act,1949 it is not permissible to members to share client information with the CRAs, except if permitted by the Auditee client.
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👉🏻NCLT allows restoration of a company struck off from ROC
(NCLT has allowed the restoration of a company which was struck off from Registrar of Companies, after the Income Tax Department pleaded that the company had pending dues)
👇🏻 👇🏻 👇🏻
http://bit.ly/3bgIZ0U
👉🏻Taxation of Shares and Securities
(Taxation of Shares and Securities | Income tax on Shares and Securities)
👇🏻 👇🏻 👇🏻
https://youtu.be/cPFuLOm14LU
👉🏻RBI unveils guidelines for digital payment infra fund
(The primary focus of the fund will be to create payments acceptance infrastructure in tier-3 to tier-6 cities, with a special focus on the northeastern states)
👇🏻 👇🏻 👇🏻
http://bit.ly/3nlKo8L
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