3 December 2022 Updates

Few amendments carried out in the GST Law vide Finance Act, 2022 have been notified wef October 1, 2022. The important amendment being 

👉 1. The last date for claiming the input tax credit for any financial year has been extended from due date of returns for the month of September to November 30 following the end of the Financial Year.

👉 2. The last date for reporting the credit note has also been extended from September to November 30 following the end of the Financial Year.

♻️ Please note that these changes will apply to FY 21-22 as well. However, it is important to note that the ITC and Credit Notes are required to be reported by November 30, 2022 which effectively means that these need to be reported in the GSTR 3B for the month of October 2022 which is due by November 20, 2022.

🌐 Effectively, due date has been extended by one month.

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👉🏻GST offences up to Rs 5 Cr may be decriminalised

(Govt is working on a proposal to decriminalise certain offences under GST by raising the threshold limit from Rs 2 Cr to Rs 5 Cr in tax evasion cases)

👇🏻 👇🏻 👇🏻

https://bit.ly/3gJq7fN

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👉🏻NFRA warns Auditors against non-accrual of interest on NPA borrowings

(Mere classification of the company’s loans as NPAs by the lender banks does not relieve the borrowing firm from its liability towards payment of interest or the principal)

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https://bit.ly/3Widb0u

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✅The CBDT has condoned the delay up to 25.11.2022 in the filing of Form no. 10A which was required to be filed electronically on or before 31.03.2022.

The Form 10A is required to be filed for re-registration of existing trust registered u/s 12A/12AA, for re-approval of existing trust or institution approved under section 10(23C)/80G and for filing of intimation by a research association or institution under section 35.

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✅ Income Tax Department proposes to introduce Common ITR Form to replace ITR 1 to ITR 7.

For this, the ITD has issued. Draft dated 1.11.2022 seeing inputs from stakeholders.

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✅ W.e.f. 01.11.2022 : Axis Bank, Indian Bank, Central Bank of India & ICICI Bank have been migrated from OLTAS e-Payment of Taxes facility to e-Pay Tax facility of E-Filing portal

Bank of India, Canara Bank, Bank of Maharashtra and Indian Overseas Bank have been already migrated

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👉🏻Govt. plans to deregister over 40,000 dormant companies

(MCA plans to deregister over 40,000 dormant companies which did not start business activities even after six months since incorporation)

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https://bit.ly/3NFEcY6

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Income Tax Department releases FAQs on Challan Status Inquiry; Only TAN users can download CSI file using their TAN as the User ID by following the steps to download CSI file through screenshots of the e-filing portal; Clarifies that CSI file cannot be downloaded by filtering challans based on the Assessment Year or Type of Payment and it can be download only by filtering challans paid during a specific period not exceeding 24 months.

Also clarifies that CSI file for period prior to 01.07.2022 cannot be downloaded through e-filing portal but from the click here button at the bottom of the e-Pay Tax screen, will redirect to “Protean portal (NSDL)” for downloading CSI file for the prior period.

Taxpayers should check their annual information statement every quarter and flag any discrepancies to help curb instances of wrongful HRA deductions.

India is looking to further fire up its manufacturing and export-intensive sectors through more support measures in the upcoming budget, eyeing the space created by a slowing Chinese economy. 

In a major setback to the builders in Noida and Greater Noida, the Supreme Court recalled its 2020 order, capping the interest rate at 8 per cent, for delay in payment of land cost by builders to the authorities. 

MEF - 2022-23 Last Date to file Multipurpose Empanelment form (MEF Form) is 9th November 2022.

Information forwarded by the Investigation Wing to the AO after the search at the assessee's premises and some slips of papers referred to by AO do not exist in the assessment records and are not referred to in the assessment order. 

Assessments made by the AO u/s 153A in the absence of any incriminating material are bad in law and therefore no addition could be made u/s 68 by treating the share capital and share premium as unexplained credit. UMA Polymers Ltd Vs. DCIT, 05/01/2022 (ITAT-Mumbai). 

Education is not a business to earn profit and tuition fees shall always be affordable, the Supreme Court has said while upholding the Andhra Pradesh High Court order quashing the state government's decision to enhance the tuition fee in medical colleges to Rs 24 lakh per annum. 

A bench of Justices M R Shah and Sudhanshu Dhulia imposed a cost of Rs 5 lakh on the petitioner, Narayana Medical College, and Andhra Pradesh to be deposited with the court registry within a period of six weeks. "To enhance the fee to Rs 24 lakh per annum i.e., seven times more than the fee fixed earlier was not justifiable at all. Education is not the business to earn profit. The tuition fee shall always be affordable,

Stepping up its anti-evasion drive, the goods and services tax (GST) wing of the Central Board of Indirect Taxes and Customs (CBIC) has started a process of issuing show-cause notices to thousands of entities for alleged evasion or under-payment of tax. 

It has already issued notices in about 20,000 cases among 34,000 scrutinised for tax evasion in 2017-18, the year in which the comprehensive indirect tax was rolled out, sources said. The tax department reckons that evasion by the entities in the year were to the tune of Rs 2,000 crore. It is also sending out notices to another lot of 35,000 cases for the year 2018-19. 

MEF Last date for submission of Multipurpose Empanelment Form extended from 9th November 2022 to 15th November 2022.

The Supreme Court Constitution Bench has by 3:2 majority upheld the validity of the 103rd Constitutional Amendment which introduced 10% reservation for Economically Weaker Sections (EWS) in education and public employment.

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👉🏻CBIC started a process of issuing show-cause notices to thousands of entities

(GST Deptt already issued notices in about 20,000 cases among 34,000 scrutinised for tax evasion in 2017-18, It is also sending out notices to another lot of 35,000 cases for the year 2018-19)

👇🏻 👇🏻 👇🏻

https://bit.ly/3UIaJyP

GST authorities have detected GST fraud of 55,575 crore over the last two years and arrested over 700 persons for causing loss to the exchequer. Over 22,300 fake GST identification numbers (GSTIN) were detected by the officers of the Directorate General of GST Intelligence (DGGI).

The SEBI Settlement Scheme, 2022, aims at providing settlement opportunities to entities that executed reversal trades in the illiquid stock options segment of the BSE between April 1, 2014 and September 30, 2015, and against whom proceedings were initiated and are pending before any forum or authority such as the Securities Appellate Tribunal.

A significant change in FTP- Export Incentives for Export realization in INR. DGFT Issues Notification for consideration of INR payments under new mechanism for Export Incentives.

The much-awaited update to recognize the INR Payments received for exports as per the new RBI Circular dated 11th July 2022 to be made eligible for various Export Incentives under the FTP.

DGFT vide Notification No. 43/2015-20 dated 09.11.2022 and Public Notice No. 35/2015-20 dated 09.11.2022 has announced the same.

Export proceeds realized in INR as per the new mechanism under para 2.52(d) (ii) would be eligible for fulfillment under Export Obligations under FTP (2015-20) [Para 2.53 has been modified]

Status Holder Certificate criteria would be considered on basis of FOB in free foreign exchange or INR under para 2.53 [Para 3.20 has been modified]

Currency of Realisation has been modified to state that Export Proceeds must be realized in freely convertible currency or INR as per Para 2.53 [Para 4.21 has been modified]

Realisation of Export proceeds under Chapter 5 (EPCG) has been allowed in FFE or INR as per para 2.53.

CMIB of ICAI is organising CEO/ CFO meetings on 23/11/2022 at Hotel Radisson Blu, Noida and on 24/11/2022 at Hotel Le Meridien, Gurgaon. for participation contact cmib@icai.in

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National Financial Reporting Authority

👉NFRA introduces audit quality inspections

👉The National Financial Reporting Authority (NFRA) has published its audit quality inspection guidelines as a step towards further improving the quality of audit profession.

👉 The inspection guidelines are on the lines of the best practices followed by International Audit Regulators. In fact, Audit quality inspections are integral to the functioning of independent audit regulators, world-wide. The International Forum for Independent Audit regulators (IFIAR), which comprises independent audit regulators from 54 countries, requires that audit regulators, should as a minimum, conduct recurring inspections of audit firms undertaking audits of public interest entities in order to assess compliance with applicable professional standards, independence requirements and other rules, laws and regulations.

👉Also, in response to a NFRA’s consultation paper “Enhancing Engagement with Stakeholders’ in 2021, many stakeholders had suggested onsite inspection of audit firms by NFRA to help inspection teams familiarize themselves with the systems and processes followed by audit firms and also to enable the audit firms to comply with auditing standards, guidance etc in its audits.

👉NFRA’s inspections are intended to identify areas and opportunities for improvement in the audit firm’s system of quality control. Inspections will consist of firm-wide review of audit quality (SQC 1) and individual file reviews on test-check basis to evaluate the level of compliance with applicable auditing standards and quality control policy and processes. NFRA has clarified that inspections by nature, are distinct from investigations. 

👉However, in certain cases, test-check by the inspection teams may provide basis for enforcement or investigation under applicable provisions of the Act and Rules.

👉Audit quality inspections will provide an opportunity for feedback and course correction to the audit firms and at the same time foster a greater mutual understanding of the policies and procedures that underlie audit quality management. The inspections are intended to bring about systemic improvements in overall financial reporting framework in the country. The inspection guidelines are available at:

https://nfra.gov.in/sites/default/files/Inspection%20guidelines%20Final.pdf

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NFRA Introduces Audit Quality Inspection Guidelines for Audit Firms

(National Financial Reporting Authority (NFRA) brought out a set of guidelines for monitoring the audit firms’ quality and compliance standards)

👇🏻 👇🏻 👇🏻

http://surl.li/drbvb

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The National Financial Reporting Authority (NFRA) has published its audit quality inspection guidelines as a step towards further improving the quality of the audit profession. The inspection guidelines are on the lines of the best practices followed by International Audit Regulators. 

In fact, Audit quality inspections are integral to the functioning of independent audit regulators, world-wide. The International Forum for Independent Audit regulators (IFIAR), which comprises independent audit regulators from 54 countries, requires that audit regulators, should as a minimum, conduct recurring inspections of audit firms undertaking audits of public interest entities in order to assess compliance with applicable professional standards, independence requirements and other rules, laws and regulations.

Also, in response to a NFRA’s consultation paper “Enhancing Engagement with Stakeholders’ in 2021, many stakeholders had suggested onsite inspection of audit firms by NFRA to help inspection teams familiarize themselves with the systems and processes followed by audit firms and also to enable the audit firms to comply with auditing standards, guidance etc in its audits.

NFRA’s inspections are intended to identify areas and opportunities for improvement in the audit firm’s system of quality control. Inspections will consist of firm-wide review of audit quality (SQC 1) and individual file reviews on test-check basis to evaluate the level of compliance with applicable auditing standards and quality control policy and processes. NFRA has clarified that inspections by nature are distinct from investigations. However, in certain cases, test-check by the inspection teams may provide basis for enforcement or investigation under applicable provisions of the Act and Rules.

Audit quality inspections will provide an opportunity for feedback and course correction to the audit firms and at the same time foster a greater mutual understanding of the policies and procedures that underlie audit quality management. The inspections are intended to bring about systemic improvements in the overall financial reporting framework in the country.

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Government is considering tightening the TDS framework for the online gaming sector to ensure that a better audit trail can be established for the money spent and earned from such activities and check evasion.

Supreme Court ruling on Section 194H TDS on actual gross fare charged by travel agents. Case Name : Singapore Airlines Ltd. Vs C.I.T (Supreme Court of India)

MAT provisions are not applicable if Gross Total Income and total income of assessee are nil. [Nijhawan Travel Service (P) Ltd. v. ACIT (2022) 144 taxmann.com 113 (ITAT Delhi)]

Insurance Regulatory and Development Authority (IRDAI) and the Pension Fund Regulatory and Development Authority's (PFRDA) have agreed to streamline the procedure of issuing annuity to NPS subscribers by using a withdrawal form.

Recovery for creditors from the resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) improved in the three months through September and stood at 30.2% of their admitted claims, according to the data compiled by the insolvency regulator.

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Income tax department offers an option of Co-browsing, which is also referred to as collaborative browsing. This enables help desk representatives to work alongside the taxpayer's browser in real-time and agents can monitor the taxpayer's browser screen and lead them interactively.

Supreme Court dismisses Special Leave Petition against Madras High Court judgment dismissing writ petition challenging the appointment of two Vice Presidents of ITAT where the Petitioner’s grievance was that the procedure for selection was contrary to Supreme Court ruling in Roger Mathew v. South Indian Bank Ltd. and Others – [Aniruthan v. Union of India & Ors. 

Expenditure incurred to modify lease premises to run ‘Domino’s outlet’ is allowable as revenue expenditure. [PCIT v. Jubilant Foodworks Ltd. (2022) 144 taxmann.com 128 (All.)]

Long Term Capital Gain (LTCG) on land co-owned cannot be assessed in the hands of a single owner. Case Name : E. Murugan Vs ITO (ITAT Chennai)

India and the Gulf Cooperation Council (GCC) are expected to launch negotiations for a free trade agreement on November 24 with an aim to boost economic ties between the two regions. GCC is a union of six countries in the Gulf region - Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain. 

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Condonation of delay up to 25.11.2022 in the filing of Form no. 10A which was required to be filed electronically on or before 31.03.2022. 

The Form 10A is required to be filed for re-registration of existing trust registered u/s 12A/12AA, for re-approval of existing trust or institution approved under section 10(23C)/80G and for filing of intimation by a research association or institution under section 35.

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✅ GSTR-9

Requirement : Turnover exceeding 2 Crs

Due Date : 31st December 

✅ GSTR-9C

Requirement : Turnover exceeding 5 Crs

Due Date : 31st December

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Economic Times

📝 Domestic air traffic crosses 4 lakh-mark for two straight days

📝 Bharat Biotech’s intranasal vaccine gets CDSCO nod

📝 Fusion MicroFinance Q2 Results: Net profit at Rs 95 crore on improved repayment collection efficiency

📝 Dharmaj Crop Guard IPO subscribed 1.79 times on Day 1

📝 Govt's paddy procurement up 9 pc at 306 lakh tonnes so far this year

📝 Centre prepares monthly plan under Gati Shakti for awarding 235 critical road projects

📝 Bank credit grows to 17.2 per cent in September, reveals RBI data

📝 Ola Electric opens 14 new experience centres in India, plans 200 by year-end

📝 NBCC gets Rs 271.62 crore order in stalled projects of erstwhile Amrapali Group

📝 Startup Homesfy Realty raises $1.1 million from investors; files draft paper to launch IPO

📝 Specialty chemicals startup Covvalent raises $4.3 million in seed funding from Nexus VP, others

📝 Dhruva Space looking to raise $20-25 million in 2 years for satellite infra facilities

📝 If delay in FTA talks, GCC nations can join India-UAE trade deal

📝 Reise Moto introduces two-wheeler tyre for domestic market in joint-venture

📝 Bird Group's Roseate Hotels to develop first hotel near Noida airport

📝 Mankind Pharma acquires stake in Upakarma Ayurveda for undisclosed sum

📝 Sebi gives nod to appointment of Ramamurthy as MD & CEO of BSE

📝 NDTV promoter firm RRPR Holding transfers 99.5% shares to Adani's VCPL

📝 Passenger vehicle makers to spend Rs 65,000 cr on capacity expansion: Icra

📝 Bharat Biotech gets nasal vaccine nod for use as mix-match booster

📝 HCLTech signs multi-year contract with Swiss MRO firm SR Technics

📝 Welspun One Logistics Parks Fund 1 commits Rs 500 crore warehousing AIF

📝 Shapoorji Pallonji Real Estate raises Rs 450 crore from Motilal Oswal

📝 Centre gets huge dividend tranche of Rs 5,001 crore as dividend from ONGC

📝 C4D Partners gets Sebi's nod to launch fund to invest in Indian startups

📝 S&P Global Ratings lowers India's FY23 GDP growth forecast to 7%

📝 Kotak Bank arm may raise up to $1 bn for data centre fund

📝 Fintech lenders disburse Rs 14k-crore loans in second quarter of FY23

📝 Expert panel to restructure MGNREGS

📝 Pakistan, IMF begin online talks on $7 billion loan review

📝 Power Ministry launches schemes to procure 4,500 MW electricity supply for five years

📝 Rupee rises 5 paise to close at 81.66 against US dollar

📝 US to auction almost 1 million acres off Alaska for oil drilling

📝 Firms cautious of capex amid global uncertainties: BofA

📝 TVS-backed Ultraviolette eyes exports to US, Europe

📝 Aditya Birla’s TMRW invests Rs289 cr in eight D2C brands

📝 Irish watchdog fines Meta $277 million in latest privacy case

📝 Govt upgrades IT to check cyber threats

📝 Fed's Williams says more rate rises needed, sees higher unemployment

📝 Dhanlaxmi Bank to raise ₹200 Cr via Tier 2 bonds

📝 Karnataka govt launches remote ICU services in 41 state-run hospitals

📝 Jet Airways resolution plan totters due to disagreement with creditors: Report

📝 FM Sitharaman concludes pre-Budget consultations.

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