Ø RBI brings large NBFCs, UCBs under risk based audit system
Ø Outward remittances slows down during the pandemic
Ø MCA initiates decriminalisation of LLP Act
Ø Government has no plan to close down BSNL, MTNL: Dhotre
Ø Few mid, emerging corporates opt for RBI's one-time restructuring: Report
Ø DoT accepts telcos' plea to accept bank guarantees valid for 1 year
Ø Reliance gets world's first 'carbon-neutral' oil from United States
Ø Public sector banks in turmoil after mega merger: Parliament panel
Ø Bharti Airtel back in the black, posts Rs 854-cr profit in Q3
Ø Hero MotoCorp sets up separate unit to sell Harley motorcycles
Ø Ant Group reaches agreement with Chinese regulators on overhaul
Ø India Inc’s external borrowing down 40% in first three quarters of FY21
Ø Govt steps for modernisation, expansion of Railways is welcome: Chief Strategy Officer, Tata Projects
Ø IEX notches highest ever electricity sales volume in January
Ø CIL in ₹2,900-cr deal to buy mining equipment
Ø Adani Green Energy back in black in third quarter
Ø Company rules liberalised, fast track process for mergers extended to start-ups
Ø Brookfield REIT IPO subscribed 15% on Day 1
Ø Apollo Tyres Q3 net profit zooms over two-fold to ₹444 cr
Ø Tata Motors passenger vehicles unit valued at ₹9,417 crore
Ø To go for ₹1 tn LIC IPO at one go is not advisable: DIPAM Secretary
Ø Slower consolidation to constrain India’s fiscal strength over medium term: Moody’s
Ø RBI’s MPC starts deliberations on monetary policy
Ø City Union Bank Q3 net down 11% on higher provisioning
Ø Delhi HC asks Future Group to keep status quo on Reliance deal
Ø SC orders disbursal of Rs 9K cr to unitholders of Franklin Templeton's 6 MF schemes
Ø Pfizer sees $15 billion in 2021 sales from COVID-19 vaccine
Ø Tesla to recall 134,951 U.S. vehicles under pressure from auto safety regulators
Ø Government expects lower dividend from RBI in the next fiscal year
Ø Sugar output up 25.37% at 17.68 million tons during October-January: ISMA
Ø Bharat Biotech, Ocugen sign pact for supply of Covaxin to US market
Ø Indian Oil may form subsidiary for retail assets to unlock value
Ø January exports rise 5.37% on healthy pharma, engineering growth
Ø 3 PSU banks likely to be out of PCA framework by March: DFS Secretary
Ø Bad loans fall to Rs 8.08 trn in Sep 2020 from Rs 10.36 trn in Mar 2018
Ø Delhi HC orders status quo on $3.4 bn Future Group-Reliance Retail deal
Ø PFC raises $500 million in India's longest-tenure issue of USD bonds
Ø HDFC Q3 standalone profit slips 65% YoY to Rs 2,926 cr, revenue tanks 42.2%
Ø GSFC posts ₹83-crore standalone Q3 profit
Ø Bajaj Auto sales rise 8% at 4,25,199 units in January
Ø Ajanta Pharma Q3 net profit up 64 per cent to ₹177 cr
Ø Siemens Gamesa selects Infosys for SAP deployment
Ø Lincoln Pharma Q3 net up 31%
Ø Tata Consumer to acquire Kottaram Agro Foods for ₹155.8 cr
Ø Finance Bill proposes 27 amendments in LIC Act
Ø GameStop breaks below $100 as rout erases $28 bn in value
Ø Fund houses to contribute ₹150 cr for setting up of LPCC: Sebi
Ø Brookfield REIT raises ₹1,710 cr from anchor investors ahead of IPO
Ø Sebi revises objective, eligibility criteria of innovation sandbox
Ø BPCL, Air India stake sale by September; LIC IPO post October: DIPAM Secy
Ø High fiscal deficit may invite rating agencies’ ire, Fitch may downgrade: Report
Ø Airtel board to mull fund raising plans, financing strategies on February 3
Ø RBI appoints external firm to audit HDFC Bank's IT infra in view of service outages
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Budget 2021: Alarming Situation for Taxpayers Registered under GST
With the insertion of Clause(aa) in Section 16(2) of the CGST Act by the Finance Act, 2021, now it is clear that Input Tax Credit (ITC) claimed on the basis of invoices which are not uploaded by the supplier in his GSTR-1, is required to be reversed and tax/interest/penalty has to be paid under section 73(5) of the CGST Act.
However, this amendment is not as per the basic principle of law which is formed for seamless flow of credit; so section 16(2)(aa) of the CGST Act and its similar Rule 36(4) of the CGST Rules are in contravention of GST Act as well as the Indian Constitution, but we have to accept these provisions and have to pay tax/ interest/ penalty as per the amended provisions of law.
What We have to Do to Avoid Tax/ Interest/ Penalty
We all know that we can’t do anything except paying tax/ interest/ penalty or filing appeal to the appellate authority or recover tax amount from supplier, if we have availed ITC up-to F.Y. 2018-19 on the basis of invoices which are not uploaded by the supplier in his GSTR-1 (only if this section will be inserted retrospectively). But we can take actions on invoices which are related to F.Y. 2019-20 and up-to this month of F.Y. 2020-21.
To Avoid Extra Payment in F.Y. 2019-20 and 2020-21:
Reconcile ITC as claimed in GSTR-3B and as populated in GSTR-2A of relevant F.Y. and contact suppliers to upload invoices in their GSTR-1, so that you will be eligible to avail ITC as per Section 16(2)(aa),
If payment is already made to the l supplier for invoice which is not uploaded by him in his GSTR-1 and he is not ready to upload that invoice in GSTR-1 of upcoming months, deduct the amount of GST from payment to be made to him in future so that you can recover the amount of ITC from the supplier
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⚫The benchmark indices notched record closing highs as the buying frenzy triggered by the Budget continued for the second day. The Sensex pierced the historic 50,000 mark in intra-day trade for the second time. The index rallied as much as 1554 points extending its two day gain to 3512 points, or 7.6%.
⚫India’s merchandise exports grew by 5.4% in January to $27.24 billion. This was the second consecutive month of growth, similar to imports, which grew 2.07% during the month.
⚫FM Budget attempts a delicate balancing act. The focus has been on smoothening the GST structure and removing anomalies, as well as closing loopholes to curb fraudulent practices
⚫NHAI said it has come out with a strict policy to deal with major lapses in structures that provides for a fine up to Rs 10 crore for defaulters besides debarment of the firm or personnel for up to three years.The move is aimed at maintaining high-quality standards in highway development.
⚫The PM CARES fund, set up to provide relief during the pandemic, has contributed over Rs 2,200 crore for the first phase of vaccination drive, which is looking to inoculate frontline healthcare workers.
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👉 Companies (compromises, arrangements and amalgamations) Amendment Rules 2021Pdf(1.05 MB)
http://www.mca.gov.in/Ministry/pdf/AmalgamationsAmndtRules_02022021.pdf
👉 Companies (Specification of Definition details) Amendment Rules 2021Pdf(1.05 MB)
http://www.mca.gov.in/Ministry/pdf/SpecificationAmndtRules_02022021.pdf
👉 Companies (Incorporation) 2nd Amendment Rules 2021Pdf(4.67 MB)
http://www.mca.gov.in/Ministry/pdf/SecondAmndtRules_02022021.pdf
👉 CBDT has further extended the due date for filing declaration under Vivad Se Vishwas Scheme till February 28, 2021.
👉 CBIC - clarified that Section 35 and 44 of CGST Act are proposed to be amended in Finance Bill 2021. However, these proposals will come into effect from a date to be notified later.
For FY 2019-20, the existing provisions shall continue.
👉 Highlights of Tax Proposals - Union Budget 2021-22 - (02-02-2021)
https://www.icai.org/post/highlights-of-tax-proposals-union-budget-2021-22
👉 FAQs on Compliance functions in banks and Role of Chief Compliance Officer (CCO)
https://www.rbi.org.in/Scripts/FAQView.aspx?Id=139
👉 Risk Based Internal Audit (RBIA) in NBFCs/UCBs
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51063
👉 like , Subscribe and Share Following links For Further videos and updates
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Wef AY 21-22, Late deposit of Employee contribution to ESI, PF etc by the employer not to be allowed as deduction to the Employer.
15th Finance Commission has suggested that the 12 per cent and 18 per cent slabs under the GST be merged into one standard rate, and GST be rationalised to a three-rate structure, complemented by the 5 per cent merit rate and 28-30 per cent de-merit rate. This has been a long-standing demand from economists and the Opposition, and has found a way in the Commission’s recommendations.
RBI has appointed an external IT firm for carrying out a special audit of its IT infrastructure in the aftermath of repeated service outages at the country's largest private sector lender HDFC Bank over the past two years. RBI has appointed an external professional IT firm for carrying out a special audit of the entire IT infrastructure of the bank under Section 30 (1-B) of the Banking Regulation Act, 1949..., at the cost of the Bank under Section 30 (1-C) of the Act.
MCA has notified the Amendments as announced in the Budget 2021, for OPCs. As per the Amendments introduced: 1. Thresholds of Paid-up capital exceeding Rs 50 lakhs or turnover exceeding Rs 2 crores for Compulsory conversion into non-OPC Public/Private Company is removed.
2. Form INC-6 can now be used for both - conversion from Private/Public to OPC or OPC to Private/Public.
For conversion of a non-OPC to OPC, thresholds of Paid up capital Rs 50 lakhs or less and turnover of Rs 2 crores or less is removed. Irrespective of Capital/turnover, non-OPC can get itself converted into OPC.
Form INC-5 is omitted.
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⚫The Sensex closed above the 50,000 mark for the first time as the Budget fuelled rally continued for the third straight session. The index rose 458 points, to finish at 50,256, gaining close to 9% in the last three trading sessions. Investor wealth has jumped by Rs 12.31 trillion since the Budget day, taking the market capitalisation of all BSE listed companies to a record Rs 198.43 trillion.
⚫Foreign portfolio investors continue to bet big on ‘India story’ with their net investment in Indian equities already hitting $31.7 billion mark in FY21.
⚫The MPC will keep the policy repo rate on hold, unanimously, despite the prospect of a drop in CPI inflation to 5% in Q4 and then likely to average 4.5% in FY22
⚫The RBI unveiled the risk-based internal audit system for select non bank lenders and urban co-operative banks, with a view to enhance the quality and effectiveness of their internal audit system.
⚫Govt likely to fetch around Rs 15,000 crore from sale of Air India. Prospective bidders are perhaps ascribing zero value to the equity of the financially stressed company.
⚫With 188,762 more vaccinations across India on Tuesday, the total count of those inoculated reached 4,138,918.
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Moody’s Says Slower Fiscal Consolidation Will Impact India’s Medium Term Strength
Rating agency Moody’s said India’s fiscal deficit projections are higher than expected and slower consolidation will constrain its fiscal strength over the medium term. The U.S.-based agency said it expects India’s nominal GDP growth to rise to closer to 17% in fiscal 2021, higher than 14.4% projected in the Budget. Moody’s Vice President and Senior Credit Officer William Foster said while the headline deficit projections are larger than the agency expected, they reflect both credible budgetary assumptions and greater transparency than in past budgets. Evening update – US market witnesses mixed bag … Brent Crude spikes … European market gains
· Stocks were mixed after the biggest back-to-back rally in about three months as traders assessed corporate earnings. S&P 500 was little changed, the Nasdaq 100 outperformed major benchmarks and the Dow Jones retreated (down 0.3%). Google’s parent Alphabet Inc. jumped almost 8% after reporting sales that beat Wall Street estimates.
· European stocks extended a risk-on advance as concern over retail speculation faded and investors embraced optimism over earnings, while Italian shares jumped after Mario Draghi took on the mandate of premier-designate. FTSE and CAD Index declined marginally while DAX Index gained 0.4%. Italy Index gained 2%
· Oil extended gains after closing at the highest level in more than a year as declines in U.S. and Chinese crude stockpiles added impetus to a rally driven by tightening global supplies. Brent Crude surged 2% to $58/bbl
· Gold prices were headed higher Wednesday, with investors attributing its early, modest rise in the session to an attempted recovery from selling in the precious metal and its sister commodity silver. Gold is trading at $1834/ounce.
· FIIs net buyers Rs2521cr while DIIs net sellers Rs400
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MCA Update on LLP
1) To initiate the process of decriminalization of compoundable offences under the LLP Act.
2) To introduce the concept of Small LLPs.
3) To allow LLPs to raise capital through Issue of Fully Secured Non-Convertible Debentures.
4) To reduce the additional fee of Rs. 100 per day by suitably amending Section 69 of the LLP Act.
In all, twelve (12) offences are proposed to be decriminalized and one (1) provision (Section 73) entailing criminal liability is proposed to be omitted. The 12 de-criminalized offences would then get shifted to IAM thereby de-clogging the criminal courts from routine cases._
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Higher TDS for payments made to non filers (applicable from 1st July, 2021):
1. On Payments made to specified persons, TDS shall be deducted at twice the normal rate of TDS or 5%, whichever is higher.
2. In case the specified person does not have PAN, Sec 206AA shall be applicable ie TDS @ 20%.
3. Who is the specified person?
The one who has not filed ITR in the immediately previous two years.
There must be an aggregate of TDS and TCS liability of atleast Rs 50,000 in each of the two years.
4. For whom not applicable?
The specified person shall not be a non resident who does not have a permanent establishment in India. So not applicable in that case.
5. Does the sec apply for all TDS deductions?
It does not apply to TDS on salary, lottery, horse racing and cash withdrawals.
6. Absurdity of the provision:
The deductor is supposed to now know whether the vendor has filed returns for the last 2 years and whether his TDS liability was Rs 50,000 in each of the 2 years.
In the absence of data in public domain, how can he be expected to rely on the information provided by the vendor?
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• CBIC, via their official Twitter handle, has clarified that GST Audit will be applicable for FY 19-20. CBIC notifies that Sections 35 and 44 of CGST Act are proposed to be amended in Finance Bill 2021. However, these proposals will come into effect from a date to be notified later. For FY 2019-20, the existing provisions shall continue.
#MCA
• MCA has released the Companies (Specification of Definition details) Amendment Rules 2021, to further amend the Companies (Specification of Definitions Details) Rules, 2014. They shall come into force on the 1st day April, 2021. In the Companies (Specification of Definitions Details) Rules, 2014, in the rule 2, in sub-rule (1), after clause (s), the following clause shall be inserted, namely:
“(t) For the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and turnover of the small company shall not exceed rupees two crores and rupees twenty crores respectively.
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👉🏻Salary Is A Fundamental Right - Delhi HC
(Denial Of Salary Not Allowed Even If The Employer Has No Funds. Delhi High Court made judgement demanding accountability)
👇🏻 👇🏻 👇🏻
https://bit.ly/3cFrrfG
👉🏻RBI issues audit norms for NBFCs, UCBs
(RBI issued guidelines on a risk-based internal audit system for non-banking financial companies (NBFCs) and urban cooperative banks (UCBs)
👇🏻 👇🏻 👇🏻
https://bit.ly/3cCswVh
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