25 November 2021 Updates

⚫India received USD 87 billion in remittances in 2021, and the USA was the biggest source, accounting for over 20% of these funds, the World Bank said.

⚫Domestic brokerages remain bullish on market; retail investors key driver. A majority of brokerages believed equities would be the best asset class for the next one year.

⚫Oil prices slumped, driving benchmarks to their lowest closing levels since early October, after OPEC and the International Energy Agency warned of impending oversupply and rising COVID-19 cases in Europe increased the downside risks to demand recovery.

⚫Banks collectively sanctioned loans of Rs 76,012 crore to 1.75 million borrowers during the festival period from Oct 16 to Nov 7 through the nationwide credit outreach programme.

⚫Google launched new Google Maps features that includes Area Busyness and Directories.The company said that users can use new feature that combines live busyness trends to help them instantly spot when a neighbourhood or part of town is near or at its busiest.

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🔮 Ethics of the Day🕵🏻

🏵️ FAQ : Whether a member in practice can provide equity research service, and publish retail research report? 

👉 Ans : A member in practice may be an equity research adviser, but he cannot publish retail report as it would amount to other business or occupation,

which is not permissible in view of the provisions of Clause (11) of Part

I of First schedule to the Act..

🏵️ FAQ*:  Whether a member holding Certificate of practice will be deemed to be in practice even if he is not serving any clients?

👉 Ans : Yes, a member is deemed to be in practice, not only when he is actually

engaged in the practice of accountancy, but also when he offers to render accountancy services, whether or not he in fact does so..

🏵️ FAQ Whether a member not in practice can use any other description? 

👉 Ans : A member not in practice may use, as per the provisions of Section 7

of the Act, the designation of “chartered accountant”. However, if he

chooses to use the designation of “chartered accountant”, he shall not

use any other description, whether in addition, or in substitution thereof.

However, such a member is not prohibited from adding any other description or letters to his name, if entitled thereto, to indicate membership of such other Institute of accountancy, whether in India or elsewhere, as may be recognised in this behalf by the Council, or any other qualification that he may possess,

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Eggs are agri-produce, transport not to incur GST: AAR

   

Delhi : The debate over what came first — the chicken or the egg — may never end. However, the Karnataka bench of the GST Authority for Advance Rulings (AAR) may have put an end to the debate on whether or not eggs are an agricultural produce. The AAR was approached by SAS Cargo, which transports consignments across India using leased railway containers. It sought clarity on applicability of goods and services tax (GST) on transportation of eggs. The AAR said, in view of the notification No. 12/2017 dated June 28, 2017, eggs are indeed an agricultural produce. Thus, transportation of eggs will not attract GST.

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⚫The Supreme Court’s recent verdict upholding the jurisdiction of the RERA, in two different matters is expected to help homebuyers escape unnecessary harassment and put pressure on unscrupulous developers to toe the line.

⚫The Economic Advisory Council to the  PM sought to suggest that the next Budget should devote increased revenues generated from higher growth towards capital expenditure and human development since Covid had led to a human capital deficit. It also said the clear road map of privatisation and growth orientation of FY22 Budget should be maintained in FY23 as well.

⚫Domestic air traffic rose 27.1% to 8.9 million on a sequential basis, as festive season demand, increased vaccination led to a rise in travel. The Govt increased the capacity cap on operations to 85% from 72.5%.

⚫The excess money lying in the cash ledger for the purpose of paying  GST would be able to take it out even after two years of the date of paying tax, a move that would ease the cash flow of the companies. That time bar has been lifted by the Govt.

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 🔮 Ethics of the Day🕵🏻

🏵️ FAQ : Whether public notice published in the newspaper by a Chartered Accountant individually or jointly with an Advocate in respect of acquisition of land by their client is permitted? 

👉 Ans :Yes, in terms of the provisions of Paragraph 3.8.1 of Council Guidelines for Advertisement, 2008, appearing in Volume II of the Code of Ethics, the public notice published in the newspaper in respect of acquirement of land by their client is permissible.

🏵️ FAQ: Whether the members in practice can print their photograph on their visiting cards?

👉 Ans :No*, it is not permissible for the members in practice to print their photograph on their visiting cards. 

🏵️ FAQ: Whether it is permissible for a member in practice to publish an advertisement in the press for recruiting staff in the member’s own office?? 

👉 Ans :*Yes*, in terms of the provisions of Paragraph 3.8.1 of Council Guidelines for Advertisement, 2008, appearing in Volume II of the Code of Ethics, it is permissible for a member in practice to publish an advertisement in the press for recruiting staff in the member’s own office provided that only the name and address of the member or that of his firm, with the description Chartered Accountant(s) is mentioned in such advertisement and the advertisement is not displayed more prominently than is usual for such advertisements or the name of the member or that of his firm with the designation Chartered Accountant(s) appears in type not bolder than the substance of the advertisement. 

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⚫The Govt is considering changes in the I-tax Act to bring gains made from transactions in cryptocurrencies under the tax net in the Budget next year. It is also looking at imposing GST on the trade in virtual currencies.

⚫Indian pharmaceutical industry said that the target of touching a $130 billion size for the Indian drug industry by 2030 would not be possible without focus on innovation. India is a leading player globally when it comes to generic or copy cat drugs, but has failed to move up in the value chain when it comes to innovative drugs.

⚫Investors turn to hybrid funds on high valuations. In October, hybrid schemes received net inflows in excess of Rs 10,000 crore, taking the total inflows in such schemes in FY22 to Rs 79,431 crore.

⚫Term insurance plan premiums may go up by 20% in Dec-Jan. Price hike could hold good in medium term, but unlikely to impact demand.

⚫With over 600 lives lost and thousands of crores of rupees of economic loss for exchequer, the cost of farm protests has been very high.

⚫Sebi likely to quiz investment bankers on Paytm's listing fiasco. Regulator to also probe the trading pattern on listing day.

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🔮 Ethics of the Day🕵🏻

🏵️ FAQ : What should be the sequence /order of designations, while a member also uses the designation ‘Dr.’ along with ‘CA’?? 

👉 Ans :The member is free to use the designation ‘Dr.’ along with ‘CA’ in whichever sequence/order he wants to. 

🏵️ FAQ: Which designation(s) can be mentioned by a member in practice empanelled as Insolvency Professional on his visiting cards, letter heads and other communication?

👉 Ans :A member in practice empanelled as Insolvency Professional can mention “Insolvency Professional” on his visiting cards, letter heads and other communication, as this is recognized by the Central Government in terms of Clause (7) of Part –I of First Schedule to Act. Mention of any other nomenclatures/designations, including membership of any IPA is not allowed.

🏵️ FAQ: Whether a Chartered Accountant in practice can accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing? 

👉 Ans :No, a Chartered Accountant in practice cannot accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing. It will be in violation of Clause (8) of Part I of First Schedule to the Act.

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✅ Multipurpose Empanelment Form for 2021-22 extended to 25/11/2021

Due date for submission of MEF for Bank Audit for the Year 2021-22 is extended to 25/11/2021. To file now click at -  https://meficai.org/

✅ ICAI Announcement – ISA (AT) for January 2022

Next Information Systems Audit (ISA) Course Assessment Test (Old as well as New Syllabus) will be held on 08/01/2022. Applicant is required to apply on-line at isaat.icaiexam.icai.org from 26/11/2021 to 10/12/2021.

https://resource.cdn.icai.org/67779exam54367.pdf 

✅ Income Tax Department conducts searches in Gujrat

As per Press Release dt. 21/11/21, ITD carried out search and seizure operations on 18/11/2021 in the case of a prominent group engaged in manufacturing of chemicals and development of real estate.

https://incometaxindia.gov.in/Lists/Press%20Releases/Attachments/1013/Press-Release-IT-Department-conducts-searches-in-Gujarat-dated-21-11-2021.pdf 

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⚫With the net direct tax collection till October closing in on Rs 6 lakh crore and average monthly GST mop-up likely around Rs 1.15 lakh crore this fiscal, Govt's tax collection kitty will surpass budget estimates this FY.

⚫Inflows in the mutual fund industry through SIPs reached close to Rs 67,000 crore in the first seven months of the ongoing fiscal.

⚫Big four professional services firms see big growth post Covid-19. Tech adoption by businesses, rise of unicorns, M&A activity drive gains.

⚫Bankers are seeing better days ahead with expectations of a pickup in credit growth in the next few quarters as corporate India readies to invest. 

⚫Bharti Airtel increased prepaid tariff by 20-25% and data top-up plans by 20-21% for telecom subscribers for a range of services effective, saying the decision was for a "financially healthy business model".

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⚫The country's GDP growth is likely to be around 8.1% in the 2nd quarter of the current fiscal year and in the range of 9.3-9.6% during  FY22, according to an SBI research report.

⚫The Indian markets posted their sharpest decline in nearly seven months on Monday as a tsunami of factors impacted investor sentiment.Paytm’s listing fiasco, the sharp drop in shares of index heavyweight RIL, and the rollback of farm laws were among the domestic factors that weighed on sentiment. The resurgence of Covid-19 in Europe and fears around US tapering, too, played on investors' minds.

⚫Investors' wealth eroded by a massive Rs 8,21,666.77 crore on Monday as the market saw a massive sell-off not seen in many months.

⚫The affordable housing segment offers investment opportunities of around Rs 45 lakh crore, as 3.5 crore quality homes need to be developed in urban cities for those staying in substandard housing.

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⚫The Govt has listed a bill for the upcoming session of Parliament, starting November 29, seeking to ban all private cryptocurrencies. This is among the 26 pieces of legislation, including the repeal of farm laws. 

⚫FM asserted that the Govt is tough on defaulters, particularly fugitives, getting back their assets through legal process and giving it to banks because of which their bad assets have come down. 

⚫FM handed over credit sanction letters of Rs 306 crore to beneficiaries in J & K and announced a host of initiatives, including a Rs 200 crore cluster development fund.

⚫Paytm debacle roils market for unlisted shares. Market experts say the Paytm IPO fiasco will lead to investors asking more questions and more importance to metrics such as cash flows and PE ratio.

https://www.facebook.com/groups/802167523225569/?ref=share

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GSTR-1 NIL RETURN FILING PROCESS ON THE GST PORTAL

👉GSTR 1 is a form that is used for outward services and goods.  GSTR 1 contains information related to the outward services and goods wherein the taxpayer will have to file a return form with detailed information related to the credit notes, invoices, revised invoices, and credit notes for outward services and goods.

👉 The Importance of Filing a GSTR1 Nil Return

The GSTR-1 serves as the foundation for recipients of supply to claim an input tax credit on their returns. As a result, timely and precise declarations in GSTR-1 are required to avoid future complications with beneficiaries and to ensure that only legitimate input tax credits are claimed.

The due date for filing GSTR 1: The GSTR 1 needs to be filled on the 11th of next month.

👉 A process on how to file GSTR 1 Nil return

• Go to the GST website and log in.

• Select the returns dashboard from the drop-down menu under services.

• From the drop-down menu, choose the month and year of filing.

• Under the GSTR-1 tile, click ‘Prepare Online.’

• Fill in the details

• Click on the GSTR1 summary, at the end of the return

• On the right end corner of the return, click the SUBMIT button

• After the verification, GSTR1 Nil return will be filed

👉 Procedure for tracking the status of a Nil GSTR-1 return that has been filed

After logging on to the GST site, the taxpayer can trace the status of a Nil GSTR-1 return by following the same processes for any taxpayer and using the ARN received by browsing to ‘Services’ > ‘Returns’ > selecting the ‘Track Return Status’ option.

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⚫Wilful defaults Rs 62,000 crore higher than before Covid pandemic. PSB's accounted for 77.4% of the total amount outstanding at Rs 5.3 trillion as of June.

⚫India is considering a proposal to treat cryptocurrencies as a financial asset while safeguarding small investors.

⚫SEBI came out with operating norms for silver ETF a move that will make it convenient for investors to have an exposure to such commodity in a transparent manner.

⚫New Wage Rate Index series released; base year revised to 2016 from 1963-65.

⚫PM will lay the foundation stone of an international airport at Jewar in Gautam Buddha Nagar. It will be UP's fifth international airport and work on it starts weeks before the state announces elections.

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CBDT issues more clarifications on deduction and collection of tax at source under sections 194-O, 194Q & 206C(1H)

Circular 20 of 2021, dated 25-11-2021.

Regards 

On Twitter @vedjainca

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17 November 2021 Updates

✅ MCA update on Disqualification of DIN

DINs eligible to be de-flagged on expiry of the period of disqualification are in the process of verification. Necessary action shall be taken shortly.

https://www.mca.gov.in/bin/dms/getdocument?mds=XFJgFhH%252BTbjDWd81KdDXbg%253D%253D&type=open 

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⚫India is set to open up its sovereign bond market to individual buyers as it seeks to widen the investor base to fund the Govt’s massive borrowing programme.Retail investors can open and maintain their Govt securities account with the RBI free of cost.

⚫High prices of commodities yet to hit India Inc's overall profits. Combined net profit of 42 Nifty 50 co's increases 19.2% YoY in Q2.

⚫The Govt is working on measures to increase the sales of electric vehicles and in the next two years the cost of EVs in India will drop to the level of petrol vehicles.

⚫The commerce ministry has shared a list of as many as 102 products whose imports are high and are increasing consistently such as coking coal, certain machinery, some chemicals, and digital cameras to different ministries to look at ways for enhancing their domestic capacity with an aim to reduce imports.

⚫The Supreme Court warned of imposing exemplary costs on state Govts in case of failure to submit a status report within a week regarding the vacancies, including on the infrastructure, in State Consumer Dispute Redressal Commission. The bench said it would take stern action if reports are not submitted and a cost of Rs 2 lakh will be imposed on them which will be recovered from officers.

⚫PM is scheduled to launch two innovative customer centric initiatives of the RBI. PM will launch the initiatives.

These initiatives are the RBI Retail Direct Scheme and the Reserve Bank - Integrated Ombudsman Scheme.

⚫A clutch of Indian companies have turned increasingly vocal about their inflation concerns, setting the stage for raising prices that could test the central bank’s resolve to keep borrowing costs lower for longer to support the economy.

⚫From 2025, all new vehicles sold in India will need to be E20compliant. E20 is petrol blended with extent to 20% ethanol.

⚫The corporate affairs ministry will start rigorous testing of its new MCA21 portal’s Version 3, which is expected to be launched by the end of this FY. The ministry is taking every precaution to avoid the probl­ems like those faced by the recently launched new income-tax portal.

⚫Taking excess tax credit while filing your returns could lead to a notice from the i-tax dept.

⚫New international travel guidelines: No Covid test for kids below 5 years.However, if found symptomatic on arrival or during home quarantine period, they would have to undergo testing and be treated as per laid down protocol.

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CBDT notifies pension fund, namely, ‘School Employees Retirement System of Ohio’ under sub-clause (iv) of clause (c) of the Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 in respect of eligible investment made by it in India on or after 2nd November, 2021 but on or before the 31st day of March, 2024 vide Notification No. 130/2021-Income Tax Dated: 2nd November, 2021.

👉S.O. 4592(E).—In exercise of powers conferred by sub-clause (iv) of clause (c) of the Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the ―Act”), the Central Government hereby specifies the pension fund, namely, the School Employees Retirement System of Ohio, (hereinafter referred to as ―the assessee”) as the specified person for the purposes of the said clause in respect of the eligible investment made by it in India on or after the date of publication of this notification in the Official Gazette but on or before the 31st day of March, 2024 (hereinafter referred to as ―said investments”) subject to the fulfillment of the following conditions, namely:-

👉(i) the assessee shall file return of income, for all the relevant previous years falling within the period beginning from the date in which the said investment has been made and ending on the date on which such investment is liquidated, on or before the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act;

👉(ii) the assessee shall furnish along with such return a certificate in Form No. 10BBC in respect of compliance to the provisions of clause (23FE) of section 10 of the Act, during the financial year, from an accountant as defined in the Explanation below sub-section (2) of section 288 of the Act, as per the provisions of clause (vi) of rule 2DB of the Income –tax Rules, 1962;

👉(iii) the assessee shall intimate the details in respect of each investment made by it in India during the quarter within one month from the end of the quarter in Form No. 10BBB, as per the provisions of clause (v) of rule 2DB of the Income-tax Rules, 1962;

👉(iv) the assessee shall maintain a segmented account of income and expenditure in respect of such investment which qualifies for exemption under clause (23FE) of section 10 of the Act;

👉(v) the assessee shall continue to be regulated under the law of the State of Ohio, United States of America;

👉(vi) the assessee shall be responsible for administering or investing the assets for meeting the statutory obligations and defined contributions of one or more funds or plans established for providing retirement, social security, employment, disability, death benefits or any similar compensation to the participants or beneficiaries of such funds or plans, as the case may be;

👉(vii) not more than ten per cent. of the total value of the assets administered or invested by the assesse are allowed for the purpose other than the purpose listed at clause (vi) provided such assets are wholly owned directly or indirectly by the State of Ohio, United States of America and such assets vest in the State of Ohio, United States of America upon dissolution;

👉(viii) the earnings and assets of the assessee should be used only for meeting statutory obligations and defined contributions for participants or beneficiaries of funds or plans referred to in clause (vi) and no portion of the earnings or assets of the pension fund inures any benefit to any other private person; barring any payment made to creditors or depositors for loan or borrowing [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act] taken for the purposes other than for making investment in India;

👉(ix) the earning from assets referred to in clause (vii) may be used for purpose other than the purpose listed as in clause (viii) provided that the said earnings are credited either to the account of Government of State of Ohio, United States of America or any other account designated by such Government so that no portion of the earnings inures any benefit to any private person;

👉(x) the assessee shall not have any loans or borrowings [as defined in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10 of the Act], directly or indirectly, for the purposes of making investment in India;

👉(xi) the assessee shall not participate in the day to day operations of investee [as defined in clause (i) of Explanation 2 to clause (23FE) of section 10 of the Act] but the monitoring mechanism to protect the investment with the investee including the right to appoint directors or executive director shall not be considered as participation in the day to day operations of the investee.

👉2. Violation of any of the conditions as stipulated in the said clause (23FE) of section 10 of the Act and this notification shall render the assessee ineligible for the tax exemption.

👉3. This notification shall come into force from the date of its publication in the Official Gazette.

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🔮 Ethics of the Day🕵🏻

🏵️ FAQ Whether a member in practice or a Firm may give link of its website on a social networking site? 

🌀 Ans : Yes, a member in practice or a Firm may provide link of its webpage

on Social Networking site. However, the members should not solicit people to visit or request to like their respective page(s) on such social

Networking site.  

🏵️ FAQ: Whether members in practice can list themselves with online Application based service provider Aggregators?

🌀 Ans : No, Council Guidelines for Advertisement, 2008 appearing in VolumeII of Code of Ethics prohibits members in practice to list themselves with online Application based service provider Aggregators, wherein other categories like businessmen, technicians, maintenance workers, event organizers etc. are also listed..

🏵️ FAQ Can a Chartered Accountant in practice allow any person to practice in his name as a Chartered Accountant? 

🌀 Ans : No, Clause (1) of Part-I of the First Schedule to the Act prohibits a Chartered Accountant in practice to allow any person to practice in his name as a Chartered Accountant unless such person is also a Chartered Accountant in practice and is in partnership with or employed by him. 

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⚫India’s retail inflation inched up to 4.48% in the demand-driven festive month of October from 4.35% in Sept, reversing the downward trend. Core inflation, which relates to non-food and non-oil items, rose to 5.8% in the month after remaining at 5.6 % in August and Sept.

⚫With two-wheelers accounting for 80% of vehicle sales in a country where public transportation is inadequate and cars are out of reach for most, the potential for growth in the electric segment is enormous.

⚫Banks' core earnings face heat from poor credit growth, low yields on loans. Their gross interest income shrank for 2nd consecutive quarter in Q2FY22 while their core earnings, or pre-provisioning profit, were down 1.5% YoY.

⚫Dip in provisions helps PSB profits jump 94% to Rs 17,312 crore in Q2. The second quarter marked a gradual improvement after experiencing a setback from the pandemic in the April-June period.

⚫China has become India’s biggest security threat and the tens of thousands of troops and weaponry that New Delhi rushed to secure its disputed Himalayan border last year will not be able to return to base for a long time, the Chief of Defence Staff said.

⚫PM chaired a meeting related to cryptocurrency and their future in India, where there was a consensus that the crypto platforms are misleading the youth of the country and their non-transparent advertisements should be stopped.

⚫The Supreme Court asked the central and Delhi Govts to come up with an emergency plan to tackle New Delhi's toxic air quality and dangerous smog conditions, calling the situation "very serious". 

⚫RBI has received a healthy response for its customer centric initiative of Retail Direct Scheme.The scheme provides a new medium of investment in Govt securities.

⚫Delhi pollution: Schools closed for a week, offices to operate in WFH mode.

⚫Authorities cut off internet and enforced a four day curfew in Maharashtra's Amravati city on Saturday after fresh violence during a shutdown.

⚫The Govt passed two Ordinances extending the tenures of the CBI and ED chiefs to up to five years.

⚫The Govt will soon enhance the funding under the production linked incentive scheme for the domestic solar cells and module manufacturing to Rs 24,000 crore from the existing Rs 4,500 crore to make India an exporting nation.

⚫India Inc earnings hit record Rs 2.4 trillion in September quarter. Banks, oil & gas, metal firms lead 46.4% rise in profit in Q2.

⚫The Indian Agriculture Research Institute shows that stubble burning incidents this year are considerably lower in most states, except in Haryana, where it has grown by 48.5% between September 15 and November 13.

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✅ ITAT Mumbai held – BCCI entitled to claim exemption & registration under Section 12A

ITAT held that so long as the IPL profits are used for the BCCI's objective of promoting cricket, it is entitled to claim exemption & registration under Section 12A

✅ Extended last date for Multipurpose Empanelment Form 2021-22 is 20/11/2021

MEF has been Activated for Empanelment of Bank Audit for the Year 2021-22 at https://meficai.org/

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⚫The wholesale price inflation rate jumped to a five-month high of 12.54% in October, a festival period, against 10.66% in Sept as the rate of price rise in raw materials showed an upswing.

⚫Merchandise exports grew for the eleventh consecutive month to $35.65 billion, up 43% on year in October, as external demand continued to remain robust.

⚫Cryptocurrency must be regulated and not banned: that was the consensus view in a meeting of a Parliamentary panel .

⚫The aggregate demand in the economy is improving and overall monetary and credit conditions are conducive for a durable economic recovery to take root, while the quality of the Govt expenditure has seen an improvement in the second half, said RBI in its 'state of economy' report.

⚫RBI unions to step up stir with mass casual leave on Nov 30 over wage deal.The unions said: "exhausted all avenues of peaceful solution", and unanimously decided to start their agitation process.

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⚫Fitch Ratings has retained India's ratings at the lowest investment grade and outlook on them at negative due to high debt and limited fiscal headroom of the central and the state Govts. The move on outlook is in contrast to that of Moody's Investors Service which recently upgraded outlook to stable from negative.

⚫India attracted record FDI over the last several years and the trend is expected to continue, considering the major structural reforms being undertaken by the Govt, commerce and industry minister said.

⚫After pumping in $9 bn, FPIs in retreat mode on valuation concerns. Since October, overseas investors have yanked out close to $2.6 bn.

⚫Bankers will start reaching out to potential anchor investors in the IPO of LIC of India next week, as they seek to ensure there’s enough demand for what’s set to be the nation’s biggest share sale.  

⚫The SEBI has proposed to tweak rules governing IPOs to bring in more transparency and accountability.The regulator has sought a cap on the amount companies, mainly start-ups, can raise for inorganic growth initiatives and also on the quantum existing shareholders can offload in the IPO. Further, Sebi has proposed to increase the lock-in period for anchor investors from 30 days to 90 days.

⚫PM inaugurated the 341-kilometre long Purvanchal Expressway and termed it as the 'pathway to development of new UP'.

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10 November 2021 Updates

✅  CBIC issued much awaited Guidelines for disallowing debit in electronic credit ledger under Rule 86A of CGST Rules. 2017 on 02/11/2021

https://www.cbic.gov.in/resources//htdocs-cbec/gst/Guidelines%20on%20Rule%2086A.pdf;jsessionid=6295EF95D23345E33D222EBFD0464E66

✅  Government issued Notification for reduction of Excise duty on Petrol & Diesel - 

https://www.cbic.gov.in/resources//htdocs-cbec/excise/cx-act/notifications/notfns-2021/cx-tarr2021/ce09-2021.pdf 

✅  RBI issues revised Prompt Corrective Action (PCA) framework for Scheduled Commercial Banks which will be effective from 1st Jan, 2022 

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12186&Mode=0 

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DIFFICULTY IN EXERCISING OPTION TO GET POLLING BOOTH RE-ALLOTTED

👉Members may kindly refer to the Announcement dated 14th October 2021 vide which the procedure to exercise option to get polling booth re-allotted was specified in pursuance to Rule 5 and sub-rule 2 of Rule 6 of the Chartered Accountants (Election to the Council) Rules, 2006. The said Announcement is hosted on www.icai.org 

👉Of late, certain instances have been brought to the notice specifying issues like :

👉-   Delay in receipt of OTP through email;

 

👉-    Requesting to do away with requirement of OTP through email;

 

👉-   Registered Mobile Number and/or Email Id different than SSP;  and

 

👉-   Error message at the submission stage.

👉The entire online process of submission of options for re-allotment of polling booths as well its architecture was re-visited and no technical inconsistency or glitch came to notice. On further close examination, the following has been noted.

👉-   Delay in receipt of OTP through email can be attributed to email host server being used by the member;

👉-   OTP through email is a system authentication process and ought to stay;

👉 -   Members may please get their mobile number and /or email updated on the Self-service portal of the Institute; and

👉-   Error message at the submission stage could be a local internet issue at user end.

👉In all such cases where the member is unable to enter his request successfully for re-allotment of polling booth despite repeated attempts, he may send scanned image of his request letter in the format duly signed from his registered email id to election2021@icai.in.

👉The format by email only duly filled-in, signed and scanned image should be received by the undersigned on or before :

👉11th November, 2021 if the change sought is from a city to new city in a different regional constituency in terms of Rule 6(2).

👉18th November 2021 if the change sought is from a polling booth to another polling booth in the same regional constituency in terms of Rule 5.

👉It is however clarified that the Returning Officer, may at his discretion, permit such manual request wherever he is satisfied that the request is genuine.

Link to download the form

https://resource.cdn.icai.org/67390election2021-54189format.pdf

Link to changing the pooling booth

https://changebooth.icai.org/

Link to Check your Pooling Booth

https://appforms.icai.org/elections/knowyourbooth2021.html

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MEF UPDATE

LAST DATE FOR SUBMITTING MEF 2021-22 extended

FROM NOVEMBER 10 TO NOVEMBER 20,2021

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🔮 Ethics of the Day🕵🏻🌴

🏵️ FAQ : Whether the Chartered Accountant who is appointed as a liquidator of a company can do the audit of that company? 

👉 Ans  No, Clause (4) of Part I of the Second Schedule to the Act and Regulations framed there under may be referred. 

🏵️ FAQ: Whether a statutory auditor can accept the system audit of same entity?

👉 Ans :Yes, the statutory auditor can accept the assignment of a system audit of the same entity, provided it did not involve any scrutiny/review of financial data and information. 

🏵️ FAQ: Whether a Chartered Accountant is qualified to be appointed as statutory auditor of one associate company when he is the internal auditor of another fellow associate company.? 

👉 Ans :Yes, the statutory auditor of one associate company can accept internal audit of the fellow associate company, because there is no holding-subsidiary relation between such companies, and therefore there is no violation of provisions of Companies Act, 2013.

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⚫The UK Govt said that India's Covaxin will be added to its list of approved COVID-19 vaccines for international travellers from November 22, meaning that those inoculated with the Bharat Biotech manufactured jab will not have to self-isolate after arrival in England.

⚫India’s stock exchanges have decided to jointly introduce the T+1 settlement cycle in phases from February 25, beginning with the bottom 100 stocks by market capitalisation.

⚫The Govt is again examining the proposal to tax the blockchain ecosystem, which includes cryptocurrencies and such digital tokens. 

⚫The Great Return to office begins in IT after a long Covid-induced hiatus. TCS, the largest IT services player, has told all its employees to be back at their deputed locations by November 15

⚫RBI imposed several restrictions on Maharashtra based Babaji Date Mahila Sahakari Bank, including capping withdrawals at Rs 5,000 for customers, amid deterioration in the lender's financial position.

⚫India is poised to achieve an ambitious services export target of $1 trillion by 2030, commerce and industry minister. The minister said that the opening up of the domestic legal services sector will benefit Indian lawyers as they would get huge opportunities in countries such as Europe, Australia and America.

⚫FM is scheduled to meet heads of public sector banks next week to review performance of the lenders and progress made by them to support the economy battered by the COVID-19 pandemic.

Banks would be urged to sanction loans for productive sectors to accelerate revival of the economy.

⚫Over 2.38 crore income tax returns have been filed for 2020-21 fiscal so far, the I-T department said. Of this, over 1.68 crore ITRs have been been processed, while refunds have been issued in more than 64 lakh cases.

⚫RBI lifted restrictions on credit card issuer Diners Club International, allowing it to onboard fresh customers, in view of the satisfactory compliance of RBI norms on local data storage as stipulated by the central bank.

⚫The past year has seen an influx of new investors putting their hard-earned money into equities. What was unique this time round was that the investors chose to invest in stocks directly rather than opt for the mutual fund route.

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The Income Tax Department has announced the roll-out of a new statement - AIS (Annual Information Statement). This will give you all the details (well almost all!) about YOUR financial transactions during the year.                       

What is AIS (Annual Information Statement)

You know earlier Income Tax used to give statement 26AS. AIS is a much detailed one - with many more details included - like your Savings Interest, all Mutual Fund transactions during the year etc.       

Will 26AS be stopped?

Now you can get both 26AS and also AIS.

Both put together, Income Tax department knows all your financial transactions.

You will find it very easy to know and submit details for your Income Tax returns.     

How to access my AIS?

Log in to your Income Tax account at http://incometax.gov.in

Go to Services Tab

Last option in this tab is the AIS option.

It will open a new tab with below two options:

Left side - Tax Information Summary (TIS)

Right side - AIS

Both are the same.  TIS is a summary and AIS is the detailed statement.  You can download both. When you download you get a pdf statement  (There is a jpeg option also, but let's stick to PDF now).

PDF will be password protected.

Password is ur PAN Number (in CAPITAL) + Date of Birth (DDMMYYYY)

AIS will capture all financial transactions of the previous year.

Stocks

Insurance

Credit Cards

Purchase of property

Mutual Funds

Salary or Business income

Dividends

Interest on SB A/c and Deposits.

The above list is just indicative.  It is your overall financial profile and will getting fine-tuned to include more categories

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📲 Download my official Android app "Updates by CARJ" 📚 to stay connected with latest news and updates 📝

https://carohitjaiswal.blogspot.com/p/update-android-app.html?m=0

Thanks for reading

3 November 2021 Updates

Happy Diwali to you and your Family. May God bless all of us with Happiness and Peace of Mind. 

Income Tax Dept rolls out the new Annual Information Statement (AIS) on the Compliance Portal. It provides a comprehensive view of information to taxpayer, with facility to capture online feedback. Click on link 'AIS' under the 'Services' tab on http://incometax.gov.in to access.

Leaders of the world's biggest economies endorsed a global minimum tax on corporations, a linchpin of new international tax rules aimed at blunting the edge of fiscal paradises amid skyrocketing profits of some multinational businesses. The endorsement aims to deter multinationals from stashing profits in countries where they pay little or no taxes--commonly known as tax havens.

Vacancy Allowance - The undisputed fact is that the assessee was receiving a monthly rent. This means that now the properties rent which is less than the previous rent. Considering the facts in totality we are of the considered view that the assessee is entitled for vacancy allowance for a period October, 2012 till 04th March, 2013 and we direct the AO to allow the vacancy allowance on the ALV determined by him. (Favour of Assessee) Love Kumar Khosla Vs. JCIT, 13/07/2021, ITAT-Delhi

Government implemented rate parity between 'right to use' and 'transfer of right to use' under the GST framework, which will affect transactions where brand names are held in a separate business and subsidiaries are 'allowed' to use it for a fee, say tax experts. Following the move, the tax authorities may begin investigating various groups and corporations about how much their brand names and trademarks are worth and whether or not they impose GST on the amount. 

MCA Update– No Additional fees will be levied upto 31/12/2021 for filing AOC-4 & MGT-7 forms for the Financial Year ending on 31.03.2021. 

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Madras High Court has issued notice to the union government on a writ petition challenging the constitutional validity of the faceless assessment system under the Income Tax Act. The petition challenged the faceless assessment regime as manifestly arbitrary, opaque, contrary to the settled principles of natural justice and administrative law in general and violative of provisions of the equality before law among others in the Constitution.

Income Tax Submission of Form 3CA-3CD,3CB-3CD for AY 2021-22, AY 2020-21 is enabled on e-Filing portal www.incometax.gov.in. 

Income Tax department has asked multiple foreign portfolio investors (FPIs) to cough up more taxes on their capital gains after denying set-off and tax treaty benefits. The notices were issued by the Centralised Processing Centre (CPC) of the I-T department under Section 143(1) of the Income-tax Act.

Supreme Court set aside a Delhi High Court order which allowed Bharti Airtel’s plea for fund of Rs 923 crore in excess GST paid by it from July to September 2017 saying that rectification of errors and omissions is permissible only at the initial stages. A bench allowed the appeal filed by the Centre against the high court’s May 5, 2020 judgement which permitted Airtel to rectify Form GSTR-3B, GST summary return form for the period.

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👉🏻Shaktikanta Das reappointed as RBI Governor for three more years

(Govt has approved the reappointment of Shaktikanta Das as Governor of the Reserve Bank of India for a period of three years)

👇🏻 👇🏻 👇🏻

https://bit.ly/2ZDAFUU

👉🏻RBI allows banks to open current accounts for borrowers availing credit from other banks

(Banks may open current accounts for borrowers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system, said RBI)

👇🏻 👇🏻 👇🏻

https://bit.ly/3mqqmfY

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⚫French President said that France shares ambitions in the environment, health and innovation with India and the two countries will continue to work together towards concrete results, especially in the Indo Pacific region.

⚫Leaders of the world's biggest economies on Saturday endorsed a global minimum tax on corporations, a linchpin of new international tax rules aimed at blunting the edge of fiscal paradises amid skyrocketing profits of some multinational businesses.The endorsement aims to deter multinationals from stashing profits in countries where they pay little or no taxes.

⚫The Purchasing Manager's Index was at 49.2 in October, down from 49.6 in September, data from the National Bureau of Statistics. Hurt by persistently high raw material prices and softer domestic demand, pointing to more economic disquiet in the final quarter of 2021.

⚫Vector-borne diseases like dengue, chikungunya and malaria have been made as notifiable diseases under the Epidemic Diseases Act.

The notification makes it compulsory for all hospitals to provide information to the Govt about any such case that they receive.

⚫Petrol, diesel prices were hiked for the fifth day in a row on October 31, taking rates to their highest levels across the country. In Mumbai, petrol touched 115.15, while diesel touched a new high of Rs 106.23.

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⚫India's economy takes 'formal' leap as informal shrinks.15-20% of economy informal now as against 52% in FY18.

⚫Realtors see residential housing sales hitting new peak in 2 years. Stamp duty cut, low-interest rates, lower prices are a trigger.

⚫With Indian jewellery market already on the robust recovery path, the jewellers are expecting strong Diwali sales in the Dhanteras as the festive mood remains high with low Covid third wave possibility and softer gold price this season.

⚫The Govt's collection from levy of excise duty on petroleum products has risen 33% in the first six months of the current fiscal when compared with last year and is 79% more than pre-Covid levels.

⚫Adani, Tata and Reliance Industries go on acquisition spree. The conglomerates are planning to offer personal loans, travel bookings, and movie tickets to create a consolidated digital platform that will support their existing offline businesses.

⚫Amazon to Microsoft, big technology firms bet big on India. International technology giants have pulled out all the stops in backing the country's robust digital consumption story.

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Roll out of new Annual Information Statement (AIS)

👉Income Tax Department has rolled out the new Annual Information Statement (AIS) on the Compliance Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback. The new AIS can be accessed by clicking on the link “Annual Information Statement (AIS)” under the “Services” tab on the new Income tax e-filing portal (https://www.incometax.gov.in) The display of Form 26AS on TRACES portal will also continue in parallel till the new AIS is validated and completely operational.

👉The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc. The reported information has been processed to remove duplicate information. Taxpayer will be able to download AIS information in PDF, JSON, CSV formats.

👉If the taxpayer feels that the information is incorrect, relates to other person/year, duplicate etc., a facility has been provided to submit online feedback. Feedback can also be furnished by submitting multiple information in bulk. An AIS Utility has also been provided for taxpayers to view AIS and upload feedback in offline manner. The reported value and value after feedback will be shown separately in the AIS. In case the information is modified/denied, the information source may be contacted for confirmation.

👉A simplified Taxpayer Information Summary (TIS) has also been generated for each taxpayer which shows aggregated value for the taxpayer for ease of filing return.  TIS shows the processed value (i.e.the value generated after deduplication of information based on pre-defined rules) and derived value (i.e. the value derived after considering the taxpayer feedback and processed value). If the taxpayer submits feedback on AIS, the derived information in TIS will be automatically updated in real time. The derived information in TIS will be used for pre-filling of Return (pre-filling will be enabled in a phased manner).

👉Taxpayers should remember that Annual Information Statement (AIS) includes information presently available with the Income Tax Department. There may be other transactions relating to the taxpayer which are not presently displayed in Annual Information Statement (AIS). Taxpayersshould check all related information and report complete and accurate information in the Income Tax Return.

👉The taxpayers are requested to view the information shown in Annual Information Statement (AIS) and provide feedback if the information needs modification. The value shown in Taxpayer Information Summary (TIS) may be considered while filing the ITR. In case the ITR has already been filed and some information has not been included in the ITR, the return may be revised to reflect the correct information.

👉In case there is a variation between the TDS/TCS information or the details of tax paid as displayed in Form26AS on TRACES portal and the TDS/TCS information or the information relating to tax payment as displayed in AIS on Compliance Portal, the taxpayer may rely on the information displayed on TRACES portal for the purpose of filing of ITR and for other tax compliance purposes.

👉Taxpayers may refer to the AIS documents (AIS Handbook, Presentation, User Guide and FAQs) provided in "Resources" section or connect with the helpdesk for any queries through “Help”section on the AIS Homepage.

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✅ ITD rolls out new Annual Information Statement

The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc. with facility to submit online feedback for any corrections required. Press Release https://pib.gov.in/PressReleasePage.aspx?PRID=1768560

✅ DGFT issued Clarity on export policy of SCOMET Items

The DGFT vide Public Notice No. 32/2015-2020 dated 29/10/2021 has made amendment in Para 2.76 of Handbook of Procedures of the FTP 2015-20 to bring out clarity on export policy of SCOMET items for supplies / exports from DTA to SEZ / EOU and outside the country. 

https://content.dgft.gov.in/Website/dgftprod/866b7474-ef7a-4cec-9abb-29908c58f7a6/PN%2032%20English.pdf

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⚫PM Modi gave a five pronged target for India and finally committed to a Net Zero emission target by 2070, joining the likes of the US, the UK and China.

⚫GST collected in October rose to Rs 1.3 trillion, which is 24% higher than in the same period a year ago and 36% more than the collection in the equivalent month of 2019-20, which was before the pandemic.The growth was driven by higher demand for items such as engineering goods, petroleum products, gems and jewellery as well as organic and inorganic chemicals.

⚫October exports up 42% to $35.47 bn, trade deficit narrows to $19.9 bn.

⚫UPI registers record 4.21 bn transactions worth Rs 7.71 trn in October.

⚫The Rajasthan Police arrested Pratip Chaudhuri, former SBI chairman, in Delhi in connection with an alleged loan scam. He’s been sent to judicial custody for 14 days for an alleged sale of a NPA, Hotel Gaudavanto Alchemist ARC at a low value.

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👉🏻GST revenue collection for October second highest in history

(The GST revenues for October 21 have been the second-highest ever since the introduction of GST, second only to that in April this year.

👇🏻 👇🏻 👇🏻

https://bit.ly/3nNwnCY

👉🏻Income Tax Deptt Roll out of new Annual Information Statement (AIS)

(Income Tax Department has rolled out the new Annual Information Statement (AIS) on the Compliance Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback)

👇🏻 👇🏻 👇🏻

https://bit.ly/3GL0iEr

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📲 Download my official Android app "Updates by CARJ" 📚 to stay connected with latest news and updates 📝

https://carohitjaiswal.blogspot.com/p/update-android-app.html?m=0

Thanks for reading