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Wednesday, 1 September 2021

1 September 2021 News and Updates

Ø Maruti Suzuki to raise prices in September
Ø Maruti Suzuki output may fall further due to Malaysia lockdown
Ø Bharat Forge may sustain premium valuation amid higher revenue visibility
Ø Anmi expresses concern over T+1 settlement proposal
Ø Motilal Oswal sees 18% upside in freshly-debuted Clean Science
Ø Go Airlines gets Sebi nod for Rs 3,600 crore IPO
Ø Ola picks banks for $1 billion IPO, may file papers in October
Ø Telecom tariff hikes are imminent: Nitin Soni, Fitch Ratings
Ø SBI to raise up to Rs 4,000 crore via AT1 bonds
Ø Unitholders of Franklin’s six shut debt schemes to get Rs 2,918 crore
Ø SSWL inks pact with Tata Steel Long Products to supply round bars
Ø Rakesh Jhunjhunwala-backed Rare Enterprises to invest in Syska LED
Ø NSE co-location case: Sebi slaps Rs 6 lakh fine on Parwati Capital Market
Ø Carlyle preferred bidder for Baring PE's Hexaware in $3 bn deal: Report
Ø NTPC ups coal output, seeks to boost stocks to meet electricity demand
Ø Aluminium industry staring at 3-5 day coal inventory amid CIL's supply cut
Ø Airtel's fundraise to provide ammo for 5G, fortify position: Analysts
Ø India power-sector financier REC plans first loan using Libor heir
Ø Exports from SEZs up 41.5% to Rs 2.15 trillion during Apr-June 2021
Ø L&T wins significant contracts for various businesses
Ø Moody's assigns B1(hyb) rating to Axis Bank's proposed AT-I capital bonds
Ø Depositors of stressed banks to get up to Rs 5 lakh back from Nov 30
Ø MapMyIndia plans Rs 1,200 crore IPO
Ø Jindal Steel and Power seek shareholder nod to divest power biz
Ø FinMin extends deadline for making payments under Vivad se Vishwas scheme till September 30
Ø Economic resurgence: FDI equity inflows jump 168% in Q1
Ø Coal shortage drives spot power prices to record high of Rs 20 per unit
Ø Tracking investments: Ministries asked to move faster on PLI schemes
Ø Zomato invests over $100 million in Grofers
Ø Gujarat Gas rating – Buy: Sharp price hike to aid profitability
Ø Sebi cuts lock-in period for promoters to 18 months post-IPO
Ø ICICI bank files cheating case against Karvy Stock Broking Ltd
Ø New drone regulations wind in the sails for racers, hobbyists
Ø Amazon asks Sebi to order withdrawal of Future-RIL deal approval
Ø Shriram City looks to disburse up to ₹23,000 cr in FY22
Ø RBI imposes monetary penalty on 2 co-op banks, 1 NBFC
Ø NHPC signs MoU with PFC to fund hydro projects, acquisition of stressed projects
Ø Domestic air travel bookings pick up pace amid festive season
Ø FMCG earnings don’t paint a pretty picture of the economy
Ø Mumbai court allows restoration of Nirav Modi's confiscated properties to PNB
Ø Ixigo takes aim at MakeMyTrip with ₹1,600-crore IPO
Ø Jeh Wadia steps down from roles at more Wadia firms
Ø India's space-tech startups steering a rough ride
Ø China’s biggest solar giant is extending its global reach
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⚫Demand for work under the MGNREGA continues to be robust in the first five months of the FY22. 77% of budget used up in five months.
⚫India’s digital loan market is becoming a battleground for co's as they seek a foothold in what’s set to be a $1 trillion industry. Facebook said India would be the first country where it rolls out its small business loan program offering loans via a partner to firms that advertise on its platform. The loans will range from rs.500,000 to 5 million with interest rates of 17%-20%, potentially without collateral.  
⚫General and health insurers have received almost 1.4 times the number of Covid-related health claims so far in FY22 than what they had received in entire FY21.
⚫America's 20-year-old military presence in Afghanistan has ended.  The USA withdrew all of its soldiers from the war-ravaged country.
⚫Sivakasi, home of fireworks, is losing its spark. The pandemic, muted festivals and pollution concerns may slash sales by half.
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Multipurpose Empanelment Form (MEF) - 2021-22 - (20-08-2021)

Professional Development Committee
The Institute of Chartered Accountants of India
20th August, 2021Multipurpose Empanelment Form (MEF) – 2021-22

You may be aware that the Professional Development Committee of the ICAI hosts the Multipurpose Empanelment Form every year to be filled by the CA Firms and Members applying for the Bank Audits and other assignments. The form is generally hosted on MEF site in the month of August/ September. For the year 2021-22, we wish to inform that we are in the process of upgrading the said form so as to make it comprehensive and more user friendly.

In view of the above, members may kindly note that the Revised MEF Form for the year 2021-22 is expected to be made live (at meficai.org) in the month of October 2021.

Upon hosting, we will be also sending an email in your mail ID registered with us.

This is for your kind information.


Professional Development Committee
The Institute of Chartered Accountants of India
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 📱 iPads not substitute for computers, ineligible for depreciation at 60% - ITAT Bench of Amritsar held in the case of Kohinoor Indian Pvt. Ltd. vs ACIT [ITA Nos. 234 & 316/Asr/2017]

🌴 Facts and findings: The Assessee Company claimed depreciation on iPads at 60% (rate applicable on computers), for AYs 2012-13 & 2013-14, whereas Revenue distinguished iPads from MacBooks and found it similar to iPhones to hold that the iPads were eligible for depreciation at 15%. The ITAT observed that in the absence of definition of computer in the Income-tax Act, definition of "computer" under Information Technology Act, 2000 can be taken as an aid of interpretation and also applies the common parlance test. The ITAT remarked that in the age of technology, most gadgets are working with the aid of computer but the predominant purpose of iPad is communication as its *main features are email, whatsapp, call, facetime, music, films etc. and thought it discharges some of the functions of the computers, but it cannot be used as a computer.

👉 ITAT bench held that iPads to be a communicating device, not a substitute for computers, thus, ineligible for higher rate of depreciation of 60%.
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⚫Foreign direct investment into the country rose by more than twofold to USD 17.57 billion during April-June this fiscal on account of measures such as policy reforms and ease of doing business.
⚫A strong economic growth rebound is expected on the back of rapid vaccinations, a recovering monsoon boosting agricultural output, thrust on infrastructure investments by the Govt, and growth in export.
⚫UIDAI said that there have been no outages in its Aadhaar EPFO linking facility. 
⚫CBDT releases draft regulations for withdrawal of retro tax demands.
⚫The Centre asked all states and UT's to ensure there is no large gathering during the upcoming festival season and, if necessary, impose local restrictions to check the spread of coronavirus.
⚫US Embassy urges Americans to leave vicinity of Kabul airport due to threat.
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🌺 Where there is no principal agent relationship, the expense is not considered as commission for TDS under section 194H of the Act – High Court of Gujarat held in the case of CIT (TDS) vs Intas Pharmaceuticals Ltd. - [2021] 129 taxmann.com 347

🌴 Facts and Findings: The assessee, a pharmaceuticals company has incurred expenses for providing services such as taxi services, booking of air-tickets, cost of souvenir, etc. for conferences of doctors. As a fact, such doctors were not bound to prescribe medicines as suggested by the assessee. The High Court of Gujarat held that since no agency relationship between assessee and doctors existed, thus said expenses incurred by assessee for doctors could not be treated as "commission" and accordingly not liable for deducting tax at source under section 194H of the Act.
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Implementation of the Rule-59(6) on GST Portal

You will not be able to file GSTR-1 if GSTR-3B has not been filed for previous 2 months effective Sep 1, 2021. 

Read the new rules below:
1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases :

a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;

b) a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period;

2. This Rule will be implemented on GST Portal from 1st September, 2021. On implementation of the said Rule, the system will check that whether before the filing of GSTR-1/IFF of a tax-period, the following has been filed or not:

a) GSTR-3B for the previous two monthly tax-periods (for monthly filers),
OR

b) GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict filing of GSTR-1/IFF till Rule-59(6) is complied with.

3. This check will operate on clicking the SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not met. It may be noted that records which have been saved in GSTR-1 will remain saved and filing of such records will be permitted after Rule-59(6) is complied with.

4. Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & un-blocking of e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR-1.

5. To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards may do so at the earliest.
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Fair & Independent allotment of Audits

Dear Seniors & Professional Colleagues,
During felicitation programs of President & VP by EIRC, I had given the following suggestions for betterment of CA fraternity:
1) Allotment of Bank Branch Audit by Software: 
a) ICAI allotment of bank branch audit software , should be programmed in such a way that those who have longest gestation period, should be allotted first i.e.  those who have not allotted for last , say 10 years be allotted first, than 9 years, 8 years........
b) All banks should allot bank branch audit by using this software only.
2) Allotment of Tax Audit: We should impress PMO & finance minister to use this software for transparent & independent system of allotment, pointing out deficiency of existing system of allotment by assessee himself. 
3) Allotment of Company audit: This software should be used. 
4) Allotment of other audits: 
This software should be used. 
5) Mapping concept & use of AI: Above software should use address mapping concept & artificial intelligence to reduce time & cost of both auditors & auditees .
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CBDT extends due dates for electronic filing of various Forms under the Income-tax Act, 1961
On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms. The further details are as under:

The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022.

The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022.

The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021.

 The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021.

The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be furnished on or before 31st December, 2021.

Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021.

 Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31st December, 2021.

 Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 as per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021.

Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular No.15 of 2020 dated 22.07.2020, may be made on or before 31st December, 2021.

 Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021.

 Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021.

Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.

 Report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021.

Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.  CBDT Circular No. 16/2021 in F.No.225/49/2021/ITA-II dated 29.08.2021 issued. 

 CDBT Extends the last date of payment to be made under VsV (without any additional amount) from 31.08.2021 
to 30.09.2021 as per PIB press release dated 29-08-2021. The official circular will follow.

GST Amnesty Scheme Extended:
CBIC has issued a Press Release in order to extend the following due dates:

GST Amnesty Scheme for GSTR-3B (July, 17 to April, 21) has been extended from 31.08.2021 to 30.11.2021.

The last date of Option of filing GSTR-3B/1/IFF by EVC for Companies (instead DSC) extended from 31.08.2021 to 31.10.2021.

The due date of filing REVOCATION application in relation to cancellations between 01.03.2020 to 31.08.2021 has been extended to 30.09.2021.

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⚫Air travel sees recovery, hotels and travel firms see brisk weekend demand. During the first ten days of August, some 90,000 passengers travelled via Delhi airport daily, which is five times higher than in mid-May.
⚫Rs 1-trillion m-cap club nears half-century; 19 companies join in 2021.
⚫Sebi bars Kotak AMC from launching FMPs for 6 months, imposes fine.
⚫MCA is working to issue code of conduct for creditors under IBC.
⚫Govt set to extend key ITR filing dates amid portal tech glitches. The total numbers of returns filed for FY21 are just 14% of returns filed for FY20.
⚫India recorded the highest single-day vaccine coverage with over 10 million doses of vaccines administered across the country.

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✅ITAT, Bangalore bench in its recent ruling in the case of Jindal Aluminium Limited has inter alia held that the *payment of interest on late payment of TDS under Section 201(1A) of the Income Tax Act cannot be treated as a deductible expenditure* under the Income Tax Act, 1961.
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