17 July 2019 News and Updates

©orporate Updates on July 17, 2019

Ø Iran to invest in Indian refinery, says ambassador

Ø WTO opens way for Chinese sanctions against U.S.

Ø India's Vedanta to invest $650 million in new oil blocks

Ø Banks bad loans down at Rs 9.34L crore: Sitharaman

Ø Lenders to DHFL ready for haircut in rescue - sources

Ø Centre cuts interest on GPF by 10 bps to 7.9 per cent

Ø Cox and Kings defaults again; shares at record low

Ø 10-year bond yield hits lowest level since demonetisation, closes at 6.33%

Ø Moody's affirms Baa1 rating to state-owned ONGC over better oil prices

Ø Future of Wipro will outshine everything done so far: Azim Premji

Ø Goyal backs multi-brand FDI policy, says no changes in the offing

Ø Federal Bank Q1 net profit up 46% to Rs. 384 crore as bad loans ease

Ø SEBI provides new format for compliance report on corporate governance

Ø HDFC AMC Q1 net profit zooms 42 per cent, at ₹292 crore

Ø Jet Airways creditors set insolvency process in motion

Ø Passenger vehicles retail sales dip 4.6 per cent in June: FADA

Ø Bharat Dynamics eyeing ₹25,000 cr order book in next four years

Ø Retail investors can also participate in the primary market issues of G-secs

Ø Essar Steel case: Lenders move SC against NCLAT order

Ø DCB Bank Q1 profit jumps 16.63% at ₹81.06 crore

Ø Creditors' committee of Jet Airways to vote on $10-million interim funding

Ø Bombay  HC  quashes permits for ₹14,000-crore  coastal road project

Ø 2,500 drugs samples out of 76,000 examined found substandard in 2018-19

Ø Oil India signs contract for 12 oil blocks; Vedanta 10, ONGC 8

Ø Taxmen detect Rs 37,946 crore fraud in FY19

Ø India’s renewable energy capacity crosses 80GW-mark, says RK Singh

Ø NSE to exclude DHFL shares from equity derivatives segment from Sept 27

Ø Rupee falls 17 paise against USD on rising crude, capital outflow

Ø Private banks’ share in MF holdings nears 20 per cent

Ø *KPMG makes bid to revive Videocon
GST collection of states rises to Rs 5.18 trillion in FY19: FM Sitharaman:
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READ MORE- https://www.gststation.in/gst-collection-of-states-rises-to-rs-5-18-trillion-in-fy19-fm-sitharaman/
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The CBIC has issued GST Audit Manual 2019 after approval by the Board. The Board vide its letter F. No. 221/03/2013 – CX-6 dated August 30, 2018 requested to Directorate General to prepare a manual on Audit in GST for the consideration of the Board. The said GST Audit Manual contains a Check List for verification of Records/Registers during the course of Audit verification in GSTAM – Annexure IX.

Following are the list of Records and Registers to be maintained by the taxpayers for Goods and Services as per GSTAM -Annexure IX is as under:

PART–I: GOODS

I. Records to be verified in the marketing and outward supplies department:-

Purchase Orders
Price Circulars
Delivery Challans
Material transfer note
Sales Book
Outward supply book

II. Records to be verified in the stores department (Where applicable):-

Store ledger
Goods Receipt Note (GRN)/Material Receipt Note/Inspection Cum Receipt Report (ICRR)
Material Return Note
Rejected Goods Register
Waste Register
Physical Stock Verification Statement
Job work/Sub-contract Register

III. Finance & Accounts related records:-

Ledgers
Debit Note
Credit Note
Journal Voucher
Internal Audit Reports
Purchase Book
Purchase Return Book
Income Tax Audit Report
Income Return
Fixed Assets Register
Monthly Stock Statement to Bank

PART-II –SUPPLY OF SERVICES

A. RECORDS TO BE VERIFIED

I. Marketing and sales department:-

Purchase Orders/Agreements/MOUs
Outward supply book

II. Stores department:-

Stores Ledger
Job work/Sub-contract Register
III. Finance & Accounts related records:-

Ledgers
Debit Note
Credit Note
Journal Voucher
Internal Audit Reports
Purchase Book
Purchase Return Book
Income Tax Audit Report
Income Return
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GST: RBI Examining Priority Sector Lending Norms For Export Credit:

READ MORE- https://www.gststation.in/gst-rbi-examining-priority-sector-lending-norms-for-export-credit/
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Fake invoice fraud: Case studies presented to PM Narendra Modi:

READ MORE- https://www.gststation.in/fake-invoice-fraud-case-studies-presented-to-pm-narendra-modi/
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IIMB gets GST exemption for all long-duration programmes:

READ MORE- https://www.gststation.in/iimb-gets-gst-exemption-for-all-long-duration-programmes/
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GST rate on cement, steel, pipes, roofing sheets and other building materials: Implications on housing sector:

READ MORE- https://www.gststation.in/gst-rate-on-cement-steel-pipes-roofing-sheets-and-other-building-materials-implications-on-housing-sector/
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100-day plan of Modi 2.0: Strategic sales, simplifying GST slabs, credit to MSMEs:

READ MORE- https://www.gststation.in/100-day-plan-of-modi-2-0-strategic-sales-simplifying-gst-slabs-credit-to-msmes/
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GST: Taxmen detect Rs 37,946 crore fraud in FY19:

READ MORE- https://www.gststation.in/gst-taxmen-detect-rs-37946-crore-fraud-in-fy19/
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SEBI Update:
16 July, 2019

Circular on Modification of circular dated September 24, 2015 on ‘Format for compliance report on Corporate Governance to be submitted to Stock Exchange (s) by Listed Entities’

https://www.sebi.gov.in/legal/circulars/jul-2019/circular-on-modification-of-circular-dated-september-24-2015-on-format-for-compliance-report-on-corporate-governance-to-be-submitted-to-stock-exchange-s-by-listed-entities-_43582.html

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Some Replies received from GSTN for CMP-08 & GSTR-4

Problem reported: Concern regarding CMP-08 is not reflecting on return dashboard.
Resolution: This is in reference to our telephonic conversation, we informed you that the functionality for filing CMP- 08 is currently unavailable on GST portal, we request you to wait for further notification and keep yourself updated with www.gst.gov.in.

Problem Reported: Return GSTR-4 for first quarter for financial Year 2019-2020 and CMP-08 is not visible in return dashboard.
Resolution: This is in reference to your concern regarding GSTR-4 for first quarter for financial Year 2019-2020 and CMP-08 is not visible in return dashboard. We would like to inform you that GSTR4 return form is discontinued from financial Year 2019-2020 and functionality for filing CMP- 08 is currently unavailable on GST portal, we request you to wait for further notification and keep yourself updated with www.gst.gov.in.
Further, filing of GSTR-4 for the financial Year 2018-19 and 2017-18 will continue in the usual manner if taxpayers have not filed the same till date.
For more clarification regarding this, you may contact to CBIC (Central Board of Indirect taxes and Customs)
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# CBIC issued Circular No. 19/2019 dt. 16-07-2019 :  Implementation of PGA eSanchit- Paperless Processing under SWIFT- Uploading of Licenses/Permits/Ceritificates/Other Authorizations (LPCOs) by PGAS
http://www.cbic.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2019/Circular-No-19-2019.pdf

# CBDT issues clarification that no changes in the notified ITR forms; only the utility has been updated to facilitate the taxpayers. Therefore, the assertion that numerous changes have been made in ITR-2 and ITR-3 on July 11, 2019 is not correct.

# DAAB of ICAI organizing 3 days Hands on Experience Training on Forensic Analytics using CAAT Tools on 19-21 July, 2019 at Noida
https://resource.cdn.icai.org/55568daab44948.pdf

# Upcoming Due Date : 20-07-2019
- GSTR-3B for the m/o June 2019

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SEBI or CAG should appoint statutory auditors in listed companies, says former ICAI President CA Anarjeet Chopra

Market regulator SEBI or Comptroller & Auditor General of India should appoint statutory auditors in listed companies to promote and ensure independence of auditors, suggested Amarjit Chopra, a former President of the CA Institute.

“For listed companies, we should not allow the promoters to decide as is the case now. SEBI or CAG will be better placed to decide the auditors for companies, particularly listed and those above a specific turnover threshold,” Chopra told

A discussion on the issue has been triggered by a statement made by Corporate Affairs Ministry Secretary Injeti Srinivas who underscored the need for a “new mechanism” to protect the independence of statutory auditors in listed companies.
Srinivas had flagged this point during his address at the recent Foundation Day event of the CA Institute. He had highlighted the auditor appointment system in state-oriented enterprises (CAG selects the auditors) and how it had worked well for the country.

Currently, statutory auditor appointment in listed companies are governed by the Companies Act provisions that provides that shareholders will appoint statutory auditors in general meetings. However, the prevailing norm on the ground is that the promoters of the listed companies play huge influential role in deciding the statutory auditor and such choice is usually approved by shareholders without any objections.
Srinivas said for a CA to do justice to his or her work, it is absolutely essential that they are independent. “The whole crux of the debate is independence — how does a chartered accountant be independent from the person who engages them, from a person who pays their fees… that is the issue,” he said.

“It’s unfortunate that everybody wants to only target auditors for the high profile corporate failures. Nobody wants to look at the real issue. The main issue is corporate governance and who appoints auditors,” Chopra said.
Experts contend that auditor independence is not protected till the time the promoters have an influential role in deciding the appointment and the pay. Ashok Haldia, former Secretary of the CA Institute, said the audit is carried out in public interest. “Therefore, severance of nuptial cord between management and auditor, in form as well as in substance, is key to restoration of public trust in audit,” Haldia said.

Public trust
For this, appointment of the auditors and fixing their remuneration have to be totally and effectively made independent of the management, he said.
“Any measure short of this like the one introduced through the Companies Act 2013 routing the appointment of auditor through the audit committee or restrictions on non-audit services provided by the auditor or requiring auditors for separation of audit and non-audit services through the notion of Chinese wall would fall short in ensuring quality audit,” according to Haldia. It is universally recognised that quality technical standards, tools and techniques are effective only if auditors remain independent and objective to be able to challenge management decisions, he said.
In the case of public sector banks, the Central Statutory auditors are appointed by the management. As for the audit of bank branches, the list of audit firms are screened by the Reserve Bank of India and then sent to banks. Some banks have now started using a CA Institute approved software application to assign the branch audit work for various CA firms.
As for central public sector enterprises, the CAG currently empanels the list of CA firms and makes the appointment.
Chopra felt that the earlier adopted ‘committee’ approach should be restored for deciding on the central statutory auditors of PSBs.

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👉🏻Income Tax Dept snooping on social media posts is a misconception - CBDT
(It is a "misconception" to think that the Income Tax Department is snooping on social media posts related to exotic foreign tours or possession of expensive goods to check undisclosed income)
👇🏻 👇🏻 👇🏻
http://bit.ly/30z39uh

👉🏻Disciplinary proceedings initiated by IBBI cannot be quashed by NCLT - NCLAT
(In a significant ruling, NCLAT has held that NCLT can’t quash the disciplinary proceedings initiated by the insolvency regulator IBBI)
👇🏻 👇🏻 👇🏻
http://bit.ly/2YUyHdO

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AAR, Maharashtra :

Air conditioner supplied with installation, testing & commissioning services under a contract is ‘composite supply’. (Nikhil Comforts – May 24, 2019).

In contract entered into by GSIDC a wholly owned Government Company and applicant, major part of contract is supply of goods. i.e. VRF Indoor & Outdoor Units, refrigerant piping with insulation, drain piping with insulation, MS stands, Cabling, Additional Refrigerant and associated electrical works etc. These goods are delivered to client by the applicant and such goods that are supplied are used by the applicant to provide services of installation, testing and commissioning of units. Without these goods, services cannot be supplied by applicant and, therefore, it is found that goods and services are supplied as a combination and in conjunction and in course of their business where principal supply is supply of goods.

Thus, the transaction is a Composite supply liable to tax at rate applicable to Air Conditioners which are principal goods involved in transaction under Schedule IV, Sr. No. 119 of Notification No 1/2017 (Central tax rate) dated 28-6-2017
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ITax Update - In case of LTCG on shares fill new Schedule 112A in ITR for each share/unit sold & give ISIN code, name of company, no. of shares, FMV on 31.1.18 etc.

GST Gyan-In Table 14 of GSTR-9C, reconciliation of input tax credit availed on only those expenses where ITC availed, is required. Press Release of 3.7.19.

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The increase in effective tax rate to 43% for those earning Rs 5 crore and more has spread disquiet in India Inc’s Csuite, raising the possibility of salary reviews. As per the latest records available, 144 executives of BSE 500 companies on average earned Rs 11.4 crore annually.

GST collection of states and union territories increased to Rs 5.18 lakh crore in the financial year 2018-19, a significant rise from Rs 2.91 lakh crore in 2017-18, Finance Minister said the Centre government released Rs 81,177 crore compensation to the states during the fiscal year 2018-19 against Rs 48,178 crore released in FY18.

RBI said it has slapped a penalty of Rs 7 crore on the country's largest bank SBINSE 1.11 % for non-compliance with norms related to NPA identification and fraud risk management, among others.

NCLAT on August 8 will hear global steel major ArcelorMittal's plea, challenging Royale Partners' bid to acquire EPC Construction India Ltd (ECIL), currently under insolvency proceedings.

Budget proposal of relaxing foreign investment limit in insurance intermediaries will strengthen distribution capabilities and increase international involvement, particularly from developed markets, Fitch Ratings said.

Ministry of Labour & Employment: The Union Cabinet has approved for the introduction of the Code on Occupational Safety, Health and Working Conditions Bill, 2019 in the Parliament.

Ministry of Housing and Urban Affairs (MHUA) released the draft Model Tenancy Act, 2019, which aims to regulate rental housing by a market-oriented approach.

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GST: Tax arrears of Gujarat industrial units at Rs 30,000 crore:

READ MORE- https://www.gststation.in/gst-tax-arrears-of-gujarat-industrial-units-at-rs-30000-crore/
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Since GST rollout in July 2017, Rs 45,682.83 crore fraud detected:

READ MORE- https://www.gststation.in/since-gst-rollout-in-july-2017-rs-45682-83-crore-fraud-detected/
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GST: Bombay High Court sets aside AAAR order denying input tax credit on ‘cash carry’ vans:

READ MORE- https://www.gststation.in/gst-bombay-high-court-sets-aside-aaar-order-denying-input-tax-credit-on-cash-carry-vans/

16 July 2019 News

©orporate Updates on July 16, 2019

📝 Tech cos go for edtech tie-ups to get that ready workforce

📝 Adani Port likely to raise $650 million via bond sales

📝 June trade deficit narrows to $15.28 billion

📝 India's services receipt in May rises 15.5% to $18.68 billion

📝 NTPC raises Rs 4,300 cr through bonds

📝 Government plans public WiFi interoperability

📝 Tata Sons mopping up $500 million via foreign loans

📝 Deloitte, KPMG firms get time till Friday to argue against ban plea

📝 Indian Oil Corporation threatens to cut fuel supply to Air India

📝 Mindtree employees worry over work culture shift as L&T takes charge

📝 MFs differ with banks over DHFL resolution, may opt for the DRT route

📝 Govt may issue sovereign bonds in phases, first lot to be of $3-4 billion

📝 India's exports fall 9.7% to $25 billion in June as key sectors fare poorly

📝 From Tata to JSW, steelmakers jittery over record drop in car sales

📝 BHEL struggles in next-gen market as slowdown continues in power sector

📝 Reliance Jio gains from incumbents' loss in rural India, says Trai report

📝 China Q2 GDP growth slows to 27-year low as trade war with US bites

📝 WPI inflation eases to near two-year low at 2.02% in June

📝 Govt may bring separate policy for electronics to boost FDI

📝 Shriram Transport Fin to raise Rs 10,000 crore via NCD issue

📝 Captive coal production inches up 2.3% in April-May

📝 Vegetable oil imports surge 6% to 11.05 lakh tonne in June

📝 NCLAT to hear ArcelorMittal’s plea on EPC Construction on August 8

📝 Infosys, TCS express worries about risks of climate change in 5 years

📝 IL&FS eyes Rs 480 crore from sale of two towers at Gift City

📝 Government mulling splitting GAIL; to sell pipeline business to strategic investor

📝 India, Russia seek to skirt US threat to arms deals

📝 Byju’s valuation soars by $2 billion since start of latest funding round

📝 Survival of DHFL hinges on an equity infusion of ₹3,000 crore

📝 Hero Electric looks at fivefold expansion in output capacity

📝 NIIF may invest $100 million in Multiples PE’s third fund

📝 United Airlines extends suspension of service to India until October 26

📝 Aditya Birla Fashion acquires 51% stake in Finesse International for ₹60 crore

📝 RBI imposes ₹7-cr fine on SBI for violation of various regulatory guidelines.

15 July 2019 Updates

©orporate Updates on July 15, 2019

Ø DHFL warns investors it may not survive as a going concern

Ø Tatas may have to take a call on debt-heavy TCL

Ø  'Govt to pay damages to consumers for load sheddings'

Ø Tata Steel's Q1 steel output grows 9% to 7.61 MT

Ø Ceat lines up Rs 3,500 crore capex to ramp up production capacity

Ø As IndiGo faces turbulence, regulators intensify scrutiny of governance lapses

Ø Lenders wary of using IBC for debt resolution over creditors' parity

Ø Balance sheet of India Inc weakens; net debt-equity ratio inches up in FY19

Ø After RInfra and RPower, lenders to rejig debt of 2 more Anil Ambani firms

Ø Torrent Pharmaceuticals manages to improve Unichem's FY19 profits

Ø Sterlite's closure hits Vedanta copper earnings; revenue drops by 57%

Ø Stop steel exports at lower than domestic price: Consumers’ associations

Ø IOC hires foreign flagged VLCC at day rate of $31,950 for seven years

Ø Solar energy body seeks capping tariff at ₹ 3/unit under NTPC, SECI auctions

Ø BHEL bags ₹100-cr order from NTPC to set up solar power plant

Ø Lupin aims to launch new products across geographies this fiscal

Ø Guidelines for PSU banks to pick pooled assets of NBFCs likely this week

Ø LIC new premium more than doubles in June

Ø Unicorn India Ventures launches ₹400 crore tech-focused fund

Ø Govt says Deloitte misreading law in challenging government's call for ban

Ø Nine of top-10 firms lose ₹88,609 crore in m-cap, HDFC Bank, TCS top losers

Ø E-commerce: Reliance Jio not to take on Amazon and Flipkart, readies platform to wire kirana stores

Ø Relief for power firms: Govt. asks Aptel to crack down on ‘regulatory assets’

Ø Unprepared UK facing highest risk of recession since 2007

Ø Warning shot to world economy as Singapore slumps, China exports drop

Ø Farm credit may exceed Rs 13 lakh crore in FY20: Nabard

Ø Crude oil demand growth to remain stable

Ø State Bank of India removes online fund transfer fee

Ø DPIIT to soon float draft national retail policy to seek stakeholders' views

Ø FPIs remain net buyers in July so far, infuse Rs 3,551 cr in Indian markets

Ø Govt wants ONGC to sell golf course in Ahmedabad that has oil wells
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CBI books former ED and current GST officer in Hyderabad for illegal properties:

READ MORE- https://www.gststation.in/cbi-books-former-ed-and-current-gst-officer-in-hyderabad-for-illegal-properties/
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GST: Consumer goods firms hope for fiscal stimulus:

READ MORE- https://www.gststation.in/gst-consumer-goods-firms-hope%e2%80%8afor-fiscal-stimulus/
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Sitharaman’s first Budget gives breather for delay in payments towards GST:

READ MORE- https://www.gststation.in/sitharamans-first-budget-gives-breather-for-delay-in-payments-towards-gst/

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RBI update
In view of the recent change in reporting platform for submission of FLA return, the last date for filing the FLA return for 2018-19 has been extended to July 31, 2019 for convenience of reporting this year.
For more info, please follow: https://flair.rbi.org.in/fla/faces/pages/login.xhtml

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👉Income tax department has now made available Prefilled XML of ITR 1, 2, 3 and 4 for AY 2019-20 at Income Tax Portal.

👉Government seeks information from the SEBI about the origins of those Foreign Portfolio Investors (FPIs) that use the Trust Structure and the assets that they manage. It also asked for data on the tax liability of each of the structures employed by FPIs — Trusts, Companies and LLPs

👉Income Tax (IT) Disputes pending as on 31st March 2019 for the CBDT aggregated to Rs 5.71 Lakh Crore.

👉CBDT wants the Income Tax (I-T) Department to recover at least Rs 5.11 Lakh Crore in Outstanding Tax Demands in 2019-20 alone, according to its central action plan of fiscal 2020. The Total Outstanding Tax Demand Arrears of the I-T department stands at Rs 12.77 Lakh Crore as on April up over 14% from a year ago.

👉UCO Bank hopes to reduce its Net NPA or bad debts to under 6% in the current fiscal, enabling it to get out of the RBI’s curbs on lending through PCA. It aims to returns to profits by lending to home-buyers and small businesses.

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CBDT has issued Clarification regarding taxability of income earned by a non-resident investor from off-shore investments routed through an Alternate Investment  Fund.

Govt has re-calibrated and fixed the direct taxes collection target for this financial year at Rs 13.35 lakh crore, a task that the CBDT chief said is difficult but achievable. He also said that the government can only think of further "lowering" corporate tax rates once the exemptions and deductions in this sector are phased out.

Govt has ruled out a rollback of the ‘super-rich’ tax on foreign portfolio investors (FPIs) organised as trusts or AOP. The tax on such FPIs will yield an estimated Rs 400 crore, as against the overall revenue gain of Rs 12,000 crore from the surcharge.The move will hit 40% of the FPIs.

About 2 lakh individuals/business entities withdrew amounts in excess of Rs 1 crore each from their bank accounts in FY18, aggregating Rs 11.31 lakh crore. Such large-scale cash withdrawals, most without any legitimate economic/ commercial rationale, are what prompted the government to impose a 2% TDS on such withdrawals.

Supreme Court has held that the inter-state sales between two successor states cannot be treated as intra-sales for the purpose of sales tax exemption granted to industries prior to bifurcation. Madhya Pradesh v/S Lfarge Dealers Association held that though the creation of a new state is an unforeseen event and could give rise to unusual situations, this cannot be a ground and reason to treat inter-state sales between the two successor states as intra-state sales.

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👉🏻Delhi Govt cancels GST registration of 1,282 traders for fraud
(In addition, “show cause notices for cancellation have been issued to 3,221 dealers, of which proceedings are still underway)
👇🏻 👇🏻 👇🏻
http://bit.ly/2G9aXvd

👉🏻Income Tax disputes of Rs 5.71 lakh crore pending with CBDT
(Income Tax disputes pending as on 31st March 2019 for the CBDT aggregated to Rs 5.71 lakh crore)
👇🏻 👇🏻 👇🏻
http://bit.ly/2Y3qRRK

👉🏻PAN not linked to Aadhaar card will become invalid from September
(Govt will invalidate all PAN cards that are not linked to Aadhaar by September 1)
👇🏻 👇🏻 👇🏻
http://bit.ly/2xKGgrw

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Govind Agrawal, tax consultant who was facing probe regarding GST evasion racket, commits suicide:

READ MORE- https://www.gststation.in/govind-agrawal-tax-consultant-who-was-facing-probe-regarding-gst-evasion-racket-commits-suicide/
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🏦 TOWER TALK🏦
July 15 - 21, 2019

✅ REC’s exit from Nifty CPSE triggered a sharp fall in its share price. However, its working remains good. Its current beaten down level merits a buy.

✅ Glenmark Pharmaceuticals has obtained USFDA approval for its Ranolazine tablets for the treatment of chronic angina. A positive for the company.

✅ The Budget proposals to boost electric vehicles (EVs) and affordable housing will, in turn, boost the aluminium sector. Buy National Aluminium Co.

✅ Although Tata Consultancy Services has missed the Street estimates, the management is confident of a double-digit growth this year. Continue to hold.

✅ The management of Godrej Propertiesbelieves that the Budget proposals for the realty sector are beneficial to them. Accumulate.

✅ Ashok Leyland is set to launch EV light commercial vehicles soon. A positive for the company.

✅ Power Finance Corporation is likely to declare a good dividend at its upcoming AGM. Accumulate.

✅ Mahindra & Mahindra Financial Services has informed the media about its financial soundness. A safe bet at a time when most NBFCs are facing liquidity issues. Accumulate.

✅ Gulf Oil Lubricants (India) has become investor-favourite given its rising volumes and increasing market share. Accumulate.

✅ Production cuts have spoilt the sentiment in the Maruti Suzuki (India) counter. A good time to accumulate in small lots.

✅ EID-Parry (India) plans to expand its ethanol facilities. The rising demand for ethanol coupled with favourable government initiatives will boost the company’s profitability. Buy.

✅ Gujarat Gas is reportedly faring well this year and is ramping up in new areas. At FY20E EPS of Rs.17, it appears to be a safe investment bet for the next one year.

❎ The entire ADAG group is in a big financial mess. Stay away from Reliance Industrial Infrastructure.

✅ Himachal Futuristic Communications has received a purchase order worth Rs.186.9 crore from BSNL. Buy selectively.

❎ The auditor of Manpasand Beverages has resigned. It may be prudent to stay away from this counter for some time.

✅ Aquaculture company, Waterbase, is available at rock bottom levels despite an improved YoY performance and a higher dividend pay-out. Accumulate.

✅ NTPC has received a pan India licence for inter-state trading of power. The stock hovers around its share bookvalue. This high dividend yield stock deserves a place in every portfolio.

✅ Housing Development Finance Corp. plans to raise Rs.3000 crore via 7.99% coupon bonds to meet its long-term capital needs. There is ample room for its share price to rise.

✅ At a time when auto stocks are tumbling, Mahindra & Mahindra stands strong. This may be the best time to accumulate this auto giant.

✅ Kridhan Infra, which fell sharply over the last few months, has started moving up. It seems all the bad news surrounding the company has been factored in. Investors with an appetite for risk may accumulate selectively.

12 July 2019 News

©orporate Updates on July 12, 2019

Ø India e-commerce rules regressive: Walmart to US govt.

Ø 'China is letting us down on buying from US farmers'

Ø Temasek keen to increase pace of investment in India

Ø Govt. committed to disinvestment of Air India: Puri

Ø Care downgrades Cox and Kings rating to ‘default’ grade

Ø Auto industry to conduct study on EV migration

Ø Tata Steel plans to make European operations sustainable on its own

Ø MCA may expand powers of regional directors for M&As of higher categories

Ø India-US trade talks to restart Friday; compromise on tariffs likely

Ø SEBI to probe if IndiGo CEO downplayed promoters' tiff: TV Report

Ø ED attaches fugitive jeweller Mehul Choksi's assets in India, abroad

Ø Govt restarts process of divesting Pawan Hans

Ø Reliance Power recasts Rs 2,430 crore loan for Samalkot project

Ø Delay in IBC resolution a concern: JSW Steel chief

Ø DHFL to submit resolution plan to lenders next week

Ø Kalyani Rafael secures $100-mn order for Barak-8 missile kits

Ø Anil Ambani plans $3.2 billion asset sales
 
Ø PE/VC investments cross $23 billion in 2019 first half, 27% higher: report

Ø SBI puts up for sale two NPA accounts to recover dues of ₹309 crore

Ø Railway officials meet stakeholders to finalise private ops of two trains

Ø GIC and ADIA put another $329 million in Hyderabad based Greenko

Ø IL&FS arm puts its shares in 2 wind energy assets for sale

Ø Moglix raises $60 million from Tiger Global, others

Ø US India bilateral trade could reach USD 238 billion by 2025

Ø India attracts $64.4 billion FDI in FY19 despite global headwinds, says Union minister

Ø CERC eases norm to issue power trading licence to NTPC
 
Ø Rupee advances 14 paise to 68.44 against USD on Fed rate cut signals

Ø Housing affordability worsened in four years, shows RBI survey

Ø Adani eyes data storage with Rs 70,000-crore parks

11 July 2019 News and Updates

11th July 2K19

Economic Times

Ø  RBI panel proposes extension of forex market timing
Ø  Trade setup: Nifty evenly poised, must reclaim 100-DMA at 11,506
Ø  IL&FS puts 2,880-acre land parcels in Kutch for sale
Ø  HDFC to raise up to Rs 3,000 crore via bonds

Business Standard

Ø  Metal shares under pressure; JSW Steel, Hindustan Zinc hit 52-week lows
Ø  Reliance Capital, Reliance Infra dip for sixth straight day, fall up to 7%
Ø  SpiceJet rallies 9% on heavy volumes as IndiGo, Jet Airways slip in trade

Business Line

Ø  Oil prices rise as data shows bigger-than-expected fall in US stockpiles
Ø  JLR June sales drop 9.6% at 47,060 units
Ø  Singareni Collieries starts work at Naini coal block in Odisha
Ø  Cotton’s crash amid likely glut set to deepen

Mint

Ø  Axis Bank appoints Citi, JPMorgan, Axis Capital for $1.3-billion share sale
Ø  S&P 500 hits 3,000 for first time as Fed signals possible rate cut
Ø  $42 billion wiped off Indian stocks as doubts on tax linger

Financial Express

Ø  Jio retains lead over Airtel, Vodafone Idea in AGR for March quarter: Trai
Ø  OYO is now world’s third largest hotel chain; might go for IPO after three years
Ø  India Inc's FDI down over two times to $820 million in June

Deccan Chronicle

Ø  Auto stocks fall up to 3 pc after SIAM's sales data
Ø  Rupee trips 7 paise to 68.58 vs USD
Ø  FPIs can opt for corporate route to avail lower tax surcharge: CBDT chief
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Economic growth is high on the agenda of the Government: Ministry Of Finance:

READ MORE- https://www.gststation.in/economic-growth-is-high-on-the-agenda-of-the-government-ministry-of-finance/
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Due date for submitting income tax returns is 31st July 2019 for all cases in which income tax audit is not mandatory. make sure to file your returns within time to avoid penalties.

Finance ministry shows that about 40% of foreign portfolio investors (FPIs) — those that follow the trust structure — will be impacted by the higher surcharge levied in the budget. The majority 60% of FPIs that use the corporate structure will not be impacted.

Supreme Court asked the central government if it had a “uniform proposal” outside of the Insolvency and Bankruptcy Code framework to resolve the problems being faced by millions of homebuyers who had not got the possession of their flats despite having paid for these properties to the real estate builders.

RBI norms on large exposures for banks are not only compliant with the Basel requirements, they are stricter in some areas as well, according to the findings of the Basel Committee on Banking Supervision.

The Institute of Company Secretaries of India said it will roll out a new feature, Unique Document Identification Number (UDIN), which will help in ensuring better compliance as well as prevent counterfeiting of various certifications and attestations done by company secretaries.

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Govt books 1,800 cases for issuing fake GST invoices:

READ MORE- https://www.gststation.in/govt-books-1800-cases-for-issuing-fake-gst-invoices/
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ITax Update-

ITAT is bound to dispose of ground raised by assessee and give opinion thereon held by High Court Of Bambay in case of
Rolls-Royce Marine India (P.) Ltd. Vs. Income Tax Appellate Tribunal

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Direct tax collection target fixed at Rs 13.35 lakh crore; is achievable, says CBDT chairman Pramod Chandra:

READ MORE- https://www.gststation.in/direct-tax-collection-target-fixed-at-rs-13-35-lakh-crore-is-achievable-says-cbdt-chairman-pramod-chandra/
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Fake invoices: Govt cracks down on bogus GST dealers:

READ MORE- https://www.gststation.in/fake-invoices-govt-cracks-down-on-bogus-gst-dealers/

10 July 2019 News and Updates

10th July 2K19

Economic Times

Ø  IndiGo founders’ feud: Gangwal flags serious governance lapses
Ø  Nifty50 holds 100-DMA; may attempt a pullback
Ø  Titan plunges 12%; 271 stocks hit 52-week lows
Ø  Oyo founder in talks to buy back $1.5 billion shares

Business Standard

Ø  Reliance Industries races past TCS to become most valued firm by m-cap
Ø  Retail inflation likely hit 8-mnth high in June, but below 4%: Reuters poll
Ø  Govt likely to give up direct controlling stakes in ONGC, IOC, NTPC, GAIL

Business Line

Ø  TCS Q1 net up 10.8% on strong growth in digital, BFSI businesses
Ø  TVS Shriram Growth Fund-3 gets ₹1,100-crore corpus
Ø  Gold plunges Rs 600 to Rs 34,870 on weak global cues, muted demand

Mint

Ø  TVS Capital hits second close of ₹1,100 crore for third PE fund
Ø  Temasek’s portfolio value falls as divestments grow
Ø  ₹2.3 tn wiped off BSE Sensex over past 3 sessions as tax clarity elude market

Financial Express

Ø  Bajaj Finance shares surge over 6% as assets, customers rise, belying NBFC sector troubles
Ø  Rupee gains 15 paise to 68.51 against dollar
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GST: Duty on gold hiked to curb non-essential imports, says Revenue Secy:

READ MORE https://www.gststation.in/gst-duty-on-gold-hiked-to-curb-non-essential-imports-says-revenue-secy/
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The taxman will 'suo motu' allot a fresh PAN to a person who files tax returns with only Aadhaar as part of a new arrangement to link the two databases, the CBDT chief said after the Budget proposed that only the biometric ID is enough for tax purposes.

Budget proposal to raise the tax burden on the mega-rich could also affect about 2,000 foreign funds that are legally equivalent to associations of persons (AOP), a class of income earners required to pay more taxes after new liability slabs were created in the federal budget.

Nearly 4,000 companies set to gain from corporate tax reduction. The government’s move to reduce the corporation tax rate to 25% will benefit around 4,000 companies with the Centre expected to forego Rs 3,000 crore revenue annually.

Income Tax authorities soon start targeting undisclosed overseas assets of individuals, who had acquired those when they were residents in India but had since become non-residents. Changes proposed to the black money law as part of the 2019-20 budget are aimed at covering such NRI who possess undeclared overseas assets.

GSTR 3B is not a Return, hence there is no due date for availment of missed out credits. Gujarat High Court Order in the matter of AAP & Co.

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👉🏻Income Tax Dept Working on Issuing E-Pan on Real-Time Basis
(Real time PAN/TAN Processing Centre (RTPC) is being contemplated for future with the objective of allotment of e-PAN through Aadhaar based e-KYC on near to real time basis - in less then 10 Minutes)
👇🏻 👇🏻 👇🏻
http://bit.ly/2NDlOn8

👉🏻Parliament passes bill to allow using Aadhaar for opening bank accounts, get phone connections
(Parliament on Monday passed an amendment bill which allows voluntary use of Aadhaar as proof of identity for users to open bank accounts and get a mobile phone connection)
👇🏻 👇🏻 👇🏻
http://bit.ly/2XuLYgm

👉🏻File tax returns if you have foreign trips, steep electricity bills
(Those mandated to file returns include people spending more than Rs 2 lakh on a foreign trip or depositing Rs 1 crore in a year in a bank account or paying electricity bill of more than Rs 1 lakh in a year)
👇🏻 👇🏻 👇🏻
http://bit.ly/2XSl01A

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👉In a major relief to Exporters, the Centre will now pay the ITC Refunds of State Taxes, thereby Reducing Transaction Time and Costs, and Manual Interface in Claim Processing.  As per industry, there is a huge difference in the Amount Claimed, SGST Sanction Amount Received from Central Tax Authority and the Amount Actually Disbursed.

👉The Reporting and Certification Requirement in case of Payments to Non-Residents has come under the Income Tax Dept’s Scanner. The CBDT has directed tax officials to verify the “High-Risk Remittance” Data and initiate action in the necessary cases.

👉CBIC issues clarification on Provisions in the Cenvat Credit Rules 2004 regarding Reversal of Credit

👉RBI Governor Shaktikanta Das is to hold a meeting with the CEOs of Private Sector Banks in the last week of July on Credit and Liquidity Concerns. The meeting is also expected to discuss the Transmission of Interest Rates and NPAs, even as it takes up issues with regard to specific sectors such as NBFCs and Realty.

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GST: SBI to remove IMPS charges on internet banking from August 1:

READ MORE- https://www.gststation.in/gst-sbi-to-remove-imps-charges-on-internet-banking-from-august-1/
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Homestays to come under GST, service providers upset:

READ MORE- https://www.gststation.in/homestays-to-come-under-gst-service-providers-upset/
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CBDT plans to add 1.3 crore new tax filers in FY20:

READ MORE- https://www.gststation.in/cbdt-plans-to-add-1-3-crore-new-tax-filers-in-fy20/
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Breather for exporters as Centre to pay ITC refund for State GST:

READ MORE- https://www.gststation.in/breather-for-exporters-as-centre-to-pay-itc-refund-for-state-gst/

9 July 2019 News and Updates

©orporate Updates on July 9, 2019
 
Ø  Tata settles $7.3 bn dues to complete mobile biz sale

Ø Airbnb had direct economic impact of $150 mn in 2018

Ø Sterling & Wilson gets nod for Rs 4,500 cr IPO
 
Ø Public shareholding rule to bring additional Rs 57,000 crore to Tata Sons

Ø SENSEX tanks 793 points; Nifty holds 11,550; India VIX up 7%

Ø Mindtree dips 10% on resignation of 3 co-founders as L&T takes control
 
Ø RIL ties up with Turkish co to make eco-friendly fabrics

Ø IndiGrid completes acquisition of two power transmissions assets from Sterlite Power

Ø Maruti shares tank over five per cent; other auto scrips too fall

Ø OMCs may save ₹500 crore a year on withdrawal of merchant discount rate

Ø British Airways faces $229 million fine over data breach
 
Ø IOC, GAIL pact to take stake in Adani’s Dhamra LNG project expires, no investment made: Dharmendra Pradhan

Ø India may raise Rs 68,000 crore selling bonds overseas this year

Ø *Govt infused over Rs 3.15 lakh crore into PSBs between FY09 and FY19*

Ø PNB shares drop over 11 per cent after BPSL fraud case

Ø Rupee slips 16 paise to 68.58 against US dollar
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👉CBDT informs that it will "Suo Motu" allot a Fresh PAN to a person who files I-T returns with only Aadhaar as part of a new arrangement to link the two databases. PAN is "Certainly Not Dead" and the recent Budget announcement is just an "Additional Facility".

👉Union Finance Minister Nirmala Sitharaman is scheduled to address the Post-Budget Meeting of the RBI's Central Board of Directors, Today on July 8 and highlight the key points of the Budget, including the fiscal consolidation roadmap.

👉RBI announces an Additional Liquidity Facility to Banks for Purchase of Assets from and on-lending to NBFCs and Housing Finance Companies (HFCs). This will enable banks to avail additional liquidity of ₹1,34,000 Crore. This would be available within the Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) within the mandatory SLR requirement.

👉SEBI may give Listed Companies 2 years to Increase Minimum Public Shareholding from 25% to 35%, a proposal floated in the Union Budget 2019-20. SEBI, however, concerned with implications of Takeover Code is examining all the modalities and will issue a discussion paper soon, to start public consultation.

👉SEBI will now have to transfer 75% of its surplus from the General Fund every year to the Consolidated Fund of India that is managed by the Central Government. An announcement to this effect was made in the Budget via a proposed amendment to SEBI Act 1992.

# Gujarat High Court decision in case of M/s AAP & Co. held that GSTR - 3B is not a return under section 39, hence there is no due date for availment of missed out credits.

# Upcoming Due Dates : 10-07-2019
- Issue of TDS Certificate for salary for the financial year 2018-19
- GSTR 8 for E-Commerce operators for the m/o June 2019
- Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019

8 July 2019 News and Updates ✍️

©orporate Updates on July 8, 2019

Ø Deutsche Bank may close most Asia-Pacific equity biz

Ø Iran ratchets up tensions with higher enrichment, draws warnings

Ø Centre open to 100% stake sale in Air India

Ø Coal India arm builds Lal Bahadur Shastri’s statue at Varanasi Airport

Ø Seven of top-10 firms add Rs 53,732 cr in m-cap; HDFC biggest gainer

Ø Maruti Suzuki slashes production by 16% in June, posts fifth cut in a row

Ø Adi Godrej's FY19 remuneration 114-time higher than median employee pay

Ø NCLT Mumbai asked to pass order on insolvency plea against 15 Videocon group companies in 3 weeks

Ø Foreign investors pull out Rs. 475 cr from markets in first week of July

Ø Budget impact: Most FPIs stare at 14.25% peak LTCG

Ø MRPL plans 251 retail outlets in Karnataka, Kerala

Ø PNB reports over ₹3800 crore fraud by Bhushan Power & Steel

Ø Growth stage investments hit a record $1 bn in January-June

Ø Green certificate sales down 22% to 6.98 lakh in June

Ø Deutsche Bank’s $8 billion overall includes exit from global equities

Ø Christine Lagarde must shift ECB policy, German ruling party head says

Ø Monsoon deficiency drops to 21 per cent but large parts of country still under deficient rainfall category

Ø Highest personal I-T rate in India still lower than in China, US, South Africa

Ø FM Nirmala Sitharaman to address RBI board today

Ø UK envoy calls Trump’s executive 'dysfunctional, inept': report

Ø Govt duty bound to achieve fiscal deficit of 3 pc as per law: FM
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Supreme Court on classification between Financial Creditor and Operational Creditor

Read full article at : https://dasgovernance.com/2019/07/08/supreme-court-on-classification-between-financial-creditor-and-operational-creditor/
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Income Tax Return Last date of filing for year ended 31.3.2019 is 31st July, 2019 for non- audit, non-corporate assessees. Please file the return within time to avoid penalties.

Risk capital investors will breathe a sigh of relief after the finance minister that investments in startups from a more diverse set of funds will now be exempted from the dreaded angel tax, an issue that has plagued the country’s new economy for nearly a decade. The so-called angel tax refers to Section 56 (2) (viib) of the Income Tax Act.

Investors putting money in exchange traded funds (ETFs) that bet on public sector companies will get tax benefits like that of tax-saving equity mutual schemes. Under Equity Linked Savings Schemes, or ELSS, investments of up to Rs 1.5 lakh every year is tax exempt.

Budget has proposed a significant rejig in basic customs duties to encourage manufacturing in the country. This involves raising customs duties on a number of products, withdrawing exemption from some and lowering rates for others to encourage value addition.

SEBI will now have to transfer 75 per cent of its surplus from the general fund every year to the Consolidated Fund of India that is managed by the Central Government. An announcement to this effect was made in the Budget via a proposed amendment to SEBI Act 1992. SEBI has a surplus of Rs. 3,170 crore as per its 2017 balance sheet.

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Budget 2019: Govt has laid foundation for India’s growth and development

READ MORE- https://www.gststation.in/budget-2019-govt-has-laid-foundation-for-indias-growth-and-development/
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State to pursue GST rate cut on multimodal transport

READ MORE- https://www.gststation.in/state-to-pursue-gst-rate-cut-on-multimodal-transport/
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Madras High Court has asked the ITAT not to dismiss appeals merely because a taxpayer failed to make an appearance before its bench, and instead take a proper decision based on the merits of the case. Experts said the judgment will set a precedent in several cases as the ITAT currently dismisses almost all appeals against tax claims if the affected taxpayer is not able to present his case at the hearing.

Input Tax Credit will not be available on the GST paid on expenses incurred towards promotional schemes, an order by the Maharashtra Authority for Advance Ruling (AAR) has said. Although AAR rulings are applicable for the applicant and the jurisdictional tax officer in a particular matter, the same can be used a persuasive tool in similar matters.

GST dept has extended by three months till July 31 the deadline for service providers with turnover of up to Rs 50 lakh to opt for the composition scheme and pay 6% GST. The GST Council has permitted such service providers to opt for composition scheme and pay taxes at reduced rate of six per cent beginning April 1, 2019. This is against the higher rates of 12 and 18 per cent levied for most services under GST.

MCA notifies Nidhi (Amendment) Rules, 2019 and notified new Form NDH-4 i.e Form for filing an application for a declaration as Nidhi Company and for updating of status by Nidhi's which shall come into force with effect from 15 August, 2019.

Securities Appellant Tribunal (SAT) remanded the matter to Sebi, directing the capital markets regulator to hear out all parties involved and pass a final order by July 17. According to the SAT’s directives, all parties involved have to submit their representation to Sebi by July 8.

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GST Updateon Form CMP-02
Due Date Extended for FORM GST CMP-02 from 30.04.2019 to 31.07.2019
(regarding availing the benefit of Alternate Composition Scheme)
http://enlightengovernance.blogspot.com/2019/07/due-date-extended-for-form-gst-cmp-02.html
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Auditors Independence 

In today's world, Will someone actually finds it acceptable that an Auditor can work with full independence while the client holds the exclusive right to appoint any of Auditor of his/her own preference.

How an Auditor can report independently if he is being appointed by the Clients for themselves while paying the fees from their own pocket?.

Above point was raised by MCA Secretary on CA Day while talking about the independent allotment of Audit work.

ICAI needs to take action

Modi Govt. had given the clear hint that this is the time when ICAI needs to take necessary corrective action on its own. Otherwise, Govt will step-in in his own unique way to correct the position (Something similar to NFRA).

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Section 50 CGST Act - The Finance Bill 2019
An amendment to levy interest on the net amount of GST (output liability minus ITC) has been introduced in CGST Act by the Finance Bill 2019. The said amendment will be applicable from the date it is notified after the passing and notification of the Finance Bill, 2019. The said amendment will be effective prospectively and not retrospectively.
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Budget 2019: Individuals must deduct TDS on these 3 types of payments now

While the government's aim is to widen and deepen the tax base through these steps, it increases the financial accounting liability for individuals impacted by these rules.

With Budget 2019 increasing their TDS responsibilities, individuals will now have to deduct tax at source in three different types of situations. "High value payments made by individuals have now come in the compliance net and require tax deduction at source (TDS). An individual or HUF (Hindu Undivided Families) availing contractual or professional services will have to deduct TDS at the rate of 5 per cent in case the aggregate payments made to a single service provider during the year exceeds Rs 50 lakh," Shalini Jain, tax partner, EY India. Budget 2019 proposes to make it mandatory for individuals to deduct tax at source on:

(i) Payments of over Rs 50 lakh to contractors, professionals
It has been proposed to make it mandatory for individuals and HUFs to deduct tax at source (TDS) on any payment of Rs 50 lakh per annum to contractors and professionals. This means if the total payments you have made to a single contractor for wedding functions, house renovation or to a single professional during a financial year exceeds Rs 50 lakh, then TDS will be cut at 5 percent.

(ii)  Payment of parking charges, maintenance charges etc when buying a house
Charges such as club membership fees, car parking fees, electricity and water facility fees, maintenance fee, advance fee etc. will soon need to be added into the cost of buying property amount while determining the amount of tax to be deducted at the time of buying the property. This amendment will come into effect from September 1, 2019.
Currently, these charges were excluded while calculating the amount of tax to be deducted at the time of making payment for property. Only amount paid for buying a house is considered to determine the amount of tax to be deducted. Currently one has to deduct tax only on the payment made to buy a house.

(iii) TDS on monthly rent payments above Rs 50,000

These are in addition to the existing responsibility to deduct tax at source from rent payments exceeding Rs 50,000 per month.
Individuals and HUFs who are not required to get their financials audited and are paying rent of more than Rs 50,000 per month have to deduct 5 percent of the rent paid in a financial year as tax. And if you do not comply, you have to pay 1% interest for every month of delay in deducting the tax. The penalty is higher at 1.5% per month if the tax has been deducted but not deposited.
While the government's aim is to widen and deepen the tax base through these steps, it increases the financial accounting liability for individuals impacted by these rules.
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MANDATORY FURNISHING OF RETURN OF INCOME (ITR) BY CERTAIN PERSONS PRESCRIBED BY BUDGET 2019

Currently, a person other than a company or a firm is required to furnish the return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions.

Therefore, a person entering into certain high value transactions is not necessarily required to furnish his return of income. In order to ensure that persons who enter into certain high value transactions do furnish their return of income, it is proposed to amend section 139 of the Act so as to provide that a person shall be mandatorily required to file his return of income, if during the previous year, he-

(i) has deposited an amount or aggregate of the amounts exceeding One Crore Rupees in one or more Current Account maintained with a Banking Company or a Co-operative Bank; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding Two Lakh Rupees for himself or any other person for travel to a Foreign Country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding One Lakh Rupees towards Consumption of Electricity; or

(iv) fulfils such other prescribed conditions, as may be prescribed.
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GST NEWS  08-07-2019

Budget 2019: 2% Interest Subvention for GST-Registered MSMEs On Fresh Loans

GST on Electric Vehicles Reduced to 5 Percent, Tax Benefits Upto Rs 1.5 Lakh on EV Loan: Union Budget 2019

Sabka Vishwas Legacy Dispute Resolution Scheme to resolve litigations involving more than Rs. 3.75 Lakh Crore of Pre-GST Regime

Haryana at 2nd place in identifying GST evaders: Capt Abhimanyu

Budget 2019: Lowering of GST will Motivate Investors

Solar Thermal Industry Seeks Replacement of 18% GST with 5%

Cut in GST share will hit Karnataka Hard

Temporary Reduction In GST Rates Needed To Boost Auto Industry: Dr. Goenka, MD, Mahindra

Govt has Sought Lowering of GST on Electric Vehicles from 12pc to 5pc, says Sitharaman

Sitharaman Reduces FY20 GST Collection Estimate by 13% to Rs 6.63 Trillion

One Nation One Tax: Fin Min Proposes Merging of 17 Taxes into one with GST; Fully Automated GST Refund Module to be implemented

Nirmala Sitharaman Explains How GST Filing Will Be Simplified

Budget 2019: Amnesty Scheme to Resolve Legacy Tax Issues
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Decisions of Ethical Standards Board 🍎

A CA Firm may register itself on Udyog Aadhar, a web portal of Ministry Micro, Small and Medium Enterprises.

There is no prohibition for internal auditor of a company to acquire/purchase shares of the said Company.

It is not permissible for a member to use WhatsApp to send messages to make people aware about his practice, and mention the services provided therein.

A Chartered Accountant in practice being Director Simplicitor in a Company cannot sign ROC Forms of the Company as it is a direct conflict of role.

A Chartered Accountant in practice can act as Authorized Representative of a Foreign Company, provided he is not the auditor of the said Company.

It is permissible for two or more Chartered Accountants in practice collectively to have joint training session for their clients on GST, and share the fees collected from the clients thereof.

A Chartered Accountant in practice can provide services through kiosk only if the services provided are professional activities of a practicing chartered accountant, permitted under the Act.

A Chartered Accountant in service is allowed to take e-return registration if it does not conflict with employment obligation. However, he cannot certify the return.

In case where Chartered Accountant in practice is a non-executive director in a company, he or a Firm in which he is a partner, should not accept the appointment as a statutory auditor of a Company which is a joint venture of the original Company, as it would impact independence.

A Chartered Accountant in practice may be an equity research adviser, but he cannot publish retail report, as it would amount to other business or occupation.

A Chartered Accountant, who is a member of a Trust, cannot be the auditor of the said trust.

A Chartered Accountant in practice may engage himself as Registration Authority (RA) for obtaining digital signatures for clients.

A Chartered Accountant can hold the credit card of a bank when he is also the auditor of the bank, provided the outstanding balance on the said card does not exceed Rs 10000 beyond the prescribed credit period limit on credit card given to him.

A Chartered Accountant in practice can act as mediator in Court, since acting as a “mediator” would be deemed to be covered within the meaning of “arbitrator’; which is inter-alia permitted to members in practice as per Regulation 191 of the Chartered Accountants Regulations, 1988.

A Chartered Accountant in practice is not permitted to accept audit assignment of a bank in case he has taken loan against a Fixed Deposit held by him in that bank.

The Ethical Standards Board in 2013 generally apply the stipulations contained in the then amended Rule 11U of Income Tax generally, wherein statutory auditor /tax auditor cannot be the valuer of unquoted equity shares of the same entity.

A Chartered Accountant in practice cannot become Financial Advisors and receive fees/commission from Financial Institutions such as Mutual Funds, Insurance Companies, NBFCs etc.

A Chartered Accountant cannot exercise lien over the client documents/records for non-payment of his fees.

It is not permissible for CA Firm to print its vision and values behind the visiting cards, as it would result in solicitation and therefore would be violative of the provisions of Clause (6) of Part-I of First Schedule to the Chartered Accountants Act, 1949.

It is not permissible for chartered accountants in practice to take agencies of UTI, GIC or NSDL.

It is permissible for a member in practice to be a settlor of a trust.

A member in practice cannot hold Customs Brokers Licence under section 146 of the Customs Act, 1962 read with Customs Brokers Licensing Regulations, 2013 in terms of the provisions of Code of Ethics.

A Chartered Accountant in service may appear as tax representative before tax authorities on behalf of his employer, but not on behalf of other employees of the employer.

A Chartered Accountant who is the statutory auditor of a bank cannot for the same financial year accept stock audit of the same branch of the bank or any of the branches of the same bank or sister concern of the bank, for the same financial year.

A CA Firm which has been appointed as the internal auditor of a PF Trust by a Government Company cannot be appointed as its Statutory Auditor.

A concurrent auditor of a bank ‘X’ cannot be appointed as statutory auditor of bank ‘Y’, which is sponsored by ‘X’.

A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund under the new Companies Act (2013).

👉Above to be complied in the interest of profession

Union Budget 2019 highlights

Key Highlights till Noon

1. Indian economy will reach $3 tn in current year
2. "One Nation, One Grid" for power availability to states at affordable rates
3. Railway infra would need an investment of 50 lakh crores between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services
4. Pension benefits will be offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man dhan Scheme
5. Plans to reach 5 trillion USD economy
a) Heavy investment in infrastructure
b) Digital Economy
c) Job creation
6. 350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans
7. Social Stock Exchange under SEBI proposed
8. 100% FDI will be permitted for insurance intermediary
9. Relaxation of KYC norms for foreign investors
10. Propose to merge the NRI portfolio investment scheme route with FPI route
11. Rs 80,250 crore dedicated to building 125,00 km of roads in the next 5 years
12. 1.25 lakh kilometers of roads will be upgraded
13. Public holding in listed firms may go up to 35% from the current 25%
14. By 2022, power and LPG will be provided to all households
15. 5 lakh villages are now open-defecation free. 9.6 crore toilets have been constructed since 2014
16. By 2022, every single rural family except those who are unwilling to take the connection, will have an electricity and a clean cooking facility
17. Ease of doing business should apply to farmers too
18. Govt to launch ATM-like One Nation One Card for global travel
19. Proposes to being new Education Policy
20. Proposes to set up National Research Foundation
21. New Tenancy law to be created
22. New construction on Central government land / affordable housing
23. New Payment platform for filing of bill : Timesavings
24. NBFC allowed to transferred to local investors ( with lock-in )
25. FPI investors KYC to be altered to facilitate more investment
26. Electronic fund raising platform , for listing voluntary organization and social enterprises
27. FDI and FPI to be enhanced
28. Media , Avaiation , Insurance to enhanced
29. Enhanced limit in Single retail brand FDI ( controversial announcement )
: NSIL launched to commercialize ISRO retail programme
30. PM Sadak yojna , 97% of rural India connected
31. 30,000 km of road built using green technology , low carbon emission
32. 125000 road will be upgraded under Pradhan mantri gram sadhak yojna
33. Bamboo , honey , khadi clusters to be promoted in villages
34. 80 livehood and several technology incubator to be launched
35. Support private entrepreneurship connected with farmers , renewable energy , bamboo , timber
36. Dairy industry will be assisted
Janshakti mantralaya will be formed , to ensure har ghar jal mission

.Target : 2024

Department of Drinking water , jal board will come under it

Swach Bharat abhiyaan ; 9.6 cr toilet has been constructed ( expand to undertake solid waste management )

PMGDigital sakshartiya abhiyaan over 2cr over trainned ; Bharat net targeting every local panchayat : work on PPP model
: Education sector

New educational policy to be launched ,

National research foundation ( NRF )  to be launched 

Massive online courses through swayam

3 Indian institute among world top 200 ( 400 cr allocated to world class institution )
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Budget Highlights (Taxation)

🌴FM Nirmala Sitharaman has thanked taxpayers for their valuable contribution through taxes for all-round development of the country.

🌴She quotes a verse in Tamil -- 'Just a few mounds of rice cooked from a small piece of land is enough for the elephant. But if the same elephant enters a paddy field it will end up trampling more than it would consume'.

🌴Explaining the verse, she says the government does not intend to 'trample' anybody like the elephant.

🌴Direct tax revenue has grown 78 percent from 2014 to 2019.

🌴Currently, 25 percent corporate tax rate is applicable to companies with an annual turnover of up to Rs 250 crore. This has been extended to companies with turnover of up to Rs 400 crore. Only 0.7 percent companies will remain outside of this 25 percent rate.

🌴Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer.

🌴To resolve the issue of Angel Tax the startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.

🌴FM Nirmala Sitharaman proposes measures to carry forward and set off losses for startups and increase in period of exemption of capital gains from the sale of residential house for investment in startups up to March 2021.

🌴An additional deduction of Rs 150000 on interest on loans borrowed under affordable housing until 2020 (upto 45 Lakhs)

🌴Interchangeability of PAN and Aadhaar - More than 120 crore Indians now have Aadhaar. Sitharaman proposes to make the two documents interchangeable so that Aadhaar can be used for verification with no requirement for PAN.

🌴The Securities Transaction Tax or STT is proposed to be restricted to the difference between settlement and strike price of options.

🌴Our government has taken number of initiatives to promote digital payments. FM says to discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account, she says.

🌴BHIM, UPI, Aadhaar Pay, NEFT, RTGS can be used to promote less cash economy. Business establishments with annual turnover of Rs 50 crore will have to use these modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs, she says.

🌴##Direct Taxes - In view of rising income levels, a surcharge will be levied on individuals with taxable income of Rs 2 to 5 crore, and Rs 5 cr and above. The effective tax rate for these categories will increase by around 3% and 7%, respectively.

🌴GST rates have been eased with a relief of Rs 92,000 crore provided during the year. Further measures are being worked out to ease filing returns and tax compliance. A simplified single monthly return is now being ruled out. Taxpayers with an annual turnover of less than Rs 5 crooe will have to file only quarterly returns, she says.

🌴TDS of 2% on cash withdrawal exceeding Rs. 1 cr. from a Bank account per year
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Budget Updates

Income-tax

1.    The threshold limit for reduced tax rate of 25% in case of domestic companies has been increased from Rs. 250 crores to Rs. 400 crores. Thus, a domestic company whose total turnover or the gross receipt in the previous year 2017-2018 does not exceed Rs. 400 crore shall be taxable at the rate of 25%.

2.    A new Section 80EEA has been inserted to provide for deduction of up to Rs. 1.50 lakhs for interest on loan taken from any financial institution for acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs.

3.    A new section 80EEB has been inserted to provide for a deduction of Rs. 1.5 lakhs in respect of interest on loan taken for purchase of an electric vehicle from any financial institution.

4.    The new rate of surcharge for Individual, HUF, AOP, BOI and AJP shall be - 10% (for income of Rs. 50 lakhs to Rs. 1 crore), 15% (for income of Rs. 1 crore to Rs. 2 crores), 25% (for income of Rs. 2 crores to Rs. 5 crores) and 37% (for income exceeding 5 crores).

5.    Any sum of money paid, or any property situated in India transferred, on or after July 5, 2019 by a person resident in India to a person outside India shall be deemed to accrue or arise in India under Section 9.

6.    Furnishing of return of income shall be mandatory under Section 139 if an individual has deposited Rs. 1 crore or more in current account or he has incurred expenditure of Rs. 2 lakhs or more on foreign travel or he has incurred expenditure of Rs. 1 lakh or more on electricity consumption.

7.    Income-tax return can be filed using Aadhaar Number, if person hasn't been allotted PAN. If a person has linked his Aadhaar number with PAN, he may also furnish his Aadhaar number in place of PAN in the Income-tax return.

8.    PAN allotted to a person shall be deemed to be invalid, if he failed to intimate the Aadhaar to the Dept.

9.    A new Section 194N has been inserted to require deduction of tax at source at the rate of 2% if aggregate of cash withdrawn during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds Rs. 1 crore.

10.  The sunset date for transfer of residential house property, for claiming exemption under Section 54GB in respect of investment made in eligible start-ups, has been extended from 31st March, 2019 to 31st March, 2021. Further, the conditions of minimum shareholding or voting rights has been relaxed from 50% to 25%.

11.  Application under Section 195(2) and 195(7) for lower or nil deduction of tax from sum paid or payable to non-residents person can be filed electronically.

12.  A new Section 194M has been inserted to require any individual or HUF (who is not required to deduct tax under Section 194C or 194J) to deduct tax at source from sum paid to a contractor or professional if aggregate payment during the year exceeds Rs. 50 lakh. The tax can be deposited under this provision without any requirement to obtain TAN.

13.  As per Section 194-IA, a buyer is required to deduct tax at source from the consideration paid to buy an immovable property. An explanation has been inserted that 'consideration for immovable property' shall include all charges paid towards club membership fee, car parking fee, electricity and water facility fees, maintenance fee, or any other charges of similar nature, which are incidental to transfer of the immovable property.

14.  In case of failure to file an Income-tax return, the prosecution proceedings are initiated under Section 276CC if the tax payable by the assessee is Rs. 3,000 or more. This threshold limit has been increased to Rs. 10,000.

15.  Constituent entity of an International group shall now be required to keep and maintain information and document under Section 92D and file required form even when there is no international transaction is undertaken by such constituent entity.

16.  There are various provisions in the Act which requires a person to make payment by account payee cheque/draft or ECS. In order to encourage other electronic modes of payment, the Government has proposed to amend relevant provisions to include other electronic modes of payment.

17.  Tax shall be deductible under Section 194DA at the rate of 5% only on the income component of life insurance pay-out. The existing rate of TDS was 1% on the gross amount.

18.  Relief under Section 89 shall be considered while computing the tax liability under Section 140A, section 143, section 234A, section 234B, and section 234C to avoid genuine hardships to the taxpayers who are claiming such relief.

19.  Every person, carrying on business, shall, provide facility for accepting payment through electronic modes if his turnover or gross receipts exceeds Rs. 50 crores. The Payment and Settlement Systems Act, 2007 is proposed to be amended to provide that no bank or system provider shall impose any charge upon anyone, either directly or indirectly, for using the electronic modes of payment.

20.  A taxpayer has been allowed to withdraw 60% of total amount from NPS as tax free. Currently, the exemption is allowed only up to 40% of the total corpus amount.

21.  Benefit of first proviso of Section 201(1) has been extended in case of failure to deduct tax at source from sum paid to non-residents. Thus, a deductor shall not be deemed to be an assessee in default even if he fails to deduct tax from sum paid to a non-resident, if such non-resident discloses such income in his return of income and pays tax due on such income and a certificate from a Chartered Accountant is furnished to this effect.

22.  Deduction of up to 10% of salary is allowed under Section 80CCD in respect of contribution made by an employer to NPS. The limit has been proposed to be increased to 14% of salary in case of Central Government's employees.

23.  Section 12AA has been amended to provide that at the time of granting of registration to a trust or institution the Pr. CIT or CIT shall also satisfy himself that the applicant trust or institution also satisfy the requirements of any other law which is material for the purpose of achieving its objects.

24.  The Pr. CIT or CIT has been empowered to cancel the registration under Section 12AA, if after granting registration it has been noticed that the trust or institution has violated requirements of any other law which was material for the purpose of achieving its objects.

25.  Section 115QA which requires payment tax on distributed income in case of buy-back of shares has proposed to be extended to listed companies as well.

26.  ITR filing is mandatory, if total income of assessee before claiming the benefit of capital gain exemption under sections 54, 54B, 54EC, 54F, 54G, 54GA and 54GB, doesn't exceeds the maximum amount not chargeable to tax.

Goods and Services Tax

1.    A Proviso has been inserted to clarify that interest for late payment of tax shall be levied only on that portion of tax which has been paid by debiting the electronic cash ledger. Earlier there was a confusion among taxpayers on this issue whether such interest would be charged on gross tax liability or only on net tax liability. However, there is one exception to this rule wherein interest shall be levied on gross tax liability. Where returns are filed subsequent to initiation of any proceedings under GST Act, the interest shall be levied on the gross tax liability.

2.    Every registered person shall authenticate, or furnish proof of possession of Aadhaar number. If an Aadhaar number is not assigned to the registered person, such person shall be offered an alternate and viable means of identification. In case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid.

3.    Now a registered person can transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger to the electronic cash ledger for Integrated Tax, Central Tax, State Tax, Union Territory Tax or Cess through a new form PMT-09 subject to the conditions and restrictions prescribed under GST Act. Such transfer shall be deemed to be a refund from the electronic cash ledger.

4.    The Central Government has been authorized to pay the amount of refund towards State taxes to the taxpayers.

5.    The Government shall constitute an Authority 'National Appellate Authority for Advance Ruling (NAAAR)' for hearing appeals. It shall pass an order within 90 days from the date of filing of appeal.

6.    The value of exempt supply of services provided by way of extending deposits, loans or advances (where consideration is received in form of interest or discount) shall not be considered for determining turnover under Composition Scheme.

7.    Simplified return forms to be implemented soon. Composition registered dealers are required to pay tax quarterly and file return on annual basis.

5 July 2019 News and Updates

©orporate Updates on 5.7.2019

Economic Times

Ø Gross tax to GDP ratio dips to 10.9% in FY'19: Survey

Ø Govt mulling ban on two and three-wheelers: Gadkari

Ø Banks see whopping 73% spike in frauds in FY19

Ø SFIO probe ordered against Jet Airways, its group cos

Ø Govt. considering centralised internet monitoring

Ø HDFC wants NCLT to keep Jet's HQ out of IBC process

Ø Brickwork Ratings cuts outlook on Edelweiss’ NCDs to negative

Business Standard

Ø 'Plenty of blame to go around': Urjit Patel admits RBI failed on bad loans

Ø 8% annual growth needed for GDP to touch $5 trn by FY25: Economic Survey

- US adds India along with China, EU to steel tariff dispute at WTO

Ø Centre cuts reliance on market borrowings to finance fiscal deficit

Ø EU objects to Hindalco's plan to buy aluminum producer Aleris Corp

Business Line

Ø Indo-US trade talks set to resume

Ø As India begins to grey, workplace policies may have to change

Ø ArcelorMittal’s ₹42,000-crore bid for Essar Steel gets NCLAT nod

Ø ‘Anticipated pre-buying of commercial vehicles prior to BS-VI norms unlikely’

Ø RSB Transmissions setting up ₹180-cr propeller shaft unit in Sri City

Mint

Ø CCI orders probe on Maruti Suzuki's discounting practices

Ø Yes Bank acquires 9.57% stake in Eveready by invoking pledged shares

Ø State-run banks should be freed of constraints, says Raghuram Rajan

Ø MCA orders fraud probe against Jet Airways

Ø US drags India to WTO over duty hike on 28 American goods

Financial Express

Ø Economic Survey 2019: Finance Ministry makes progress in strategic sale of 28 CPSEs

Ø Economic Survey 2019: Steel production to hit 128.6 MT by 2021

Ø Budget Economic Survey 2019: Indian economy grows to $2.75 trillion despite slowing global economy
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PRESS RELEASE DATED ON 03-07-2019

Clarification regarding Annual Returns and Reconciliation Statement, for taking necessary action.

Second Press release on Annual Return (FORM GSTR-9) and Reconciliation Statement (FORM GSTR-9C).

READ MORE- https://www.gststation.in/press-release-3/
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GST press release dated 03.07.19
clarified turnover for GST Audit purpose be reckoned for period July 2017 to March 2018. For example if turnover from Apr to Jun 17 is Rs.30 lakh and turnover from Jul 17 to Mar 18 is Rs.1.80 crore then GST Audit is not required in this case because turnover for period Jul 17 to Mar 18 is less than 2 crore.
And * About Debit and Credit Notes clarifications made if provision for these Notes have been made in books of accounts for FY 2017-18 but effect of these Notes have been taken in GST Returns of FY 18-19 then these entries be declared in part V of the Annual Return.
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CBDT said that India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures (MLI) to prevent Base Erosion and Profit Shifting (BEPS), which will pave way for amendments to double taxation avoidance agreements (DTAA) with the countries signatories to the convention to plug revenue leakages. “On 25th June, 2019, India has deposited the instrument of ratification to OECD, Paris along with its final position in terms of Covered Tax Agreements (CTAs), reservations, options and notifications under the MLI, as a result of which MLI will enter into force for India on October 1, 2019 and its provisions will have effect on India’s DTAAs from FY20-21 onwards.

GST Clarification regarding Annual Returns and Reconciliation Statement via Press Release, Ministry of Finance , 03rd July 2019 Key points:-

GST; Role of CA is made clear. It is confined only to reconciliation of GSTR 9 and books and nothing beyond books. Expenses reco - Details of expenses on which ITC has been availed need to be given.

CBIC has exempted any supply of goods to an outgoing international tourists made by a retail outlets established in the departure area of international airports, beyond the immigration counters from payment of IGST along with Cess. This notification would be effective from July 1, 2019 [Notification No. 11/2019-Integrated Tax (Rate)]

MCA notifies Companies (Significant Beneficial Owners) second Amendment Rules, 2019 and also notified revised FORM NO. BEN-2 – Return to the Registrar in respect of declaration under section 90 which shall come into force on the date of their publication in the Official Gazette i.e 01-07-2019.

MCA has extended the last date for filing of Form NFRA-1 for all bodies corporate governed by NFRA Rule 3(2) and 3(3), on the basis of the representations received from stakeholders.

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HC seeks status report on setting up of GST Appellate Tribunal in Allahabad:

READ MORE- https://www.gststation.in/hc-seeks-status-report-on-setting-up-of-gst-appellate-tribunal-in-allahabad/
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Budget wishlist: Scrap recycling sector seeks cut in import duty, GST:

READ MORE- https://www.gststation.in/budget-wishlist-scrap-recycling-sector-seeks-cut-in-import-duty-gst/
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👉CBDT clarifies that the Income Received by a Non- Resident Investor from Off-Shore Investments routed through the Category I or Category II AIF is not taxable in India as per provisions of Section 5(2) of the Income Tax Act, 1961.

👉RBI sets up Working Group to Review Regulatory Norms for Core Investment Companies (CICs. The working group has also been tasked with recommending appropriate measures to enhance RBI’s Off-Sight Surveillance and On-Site Supervision over CICs

👉RBI is likely to soon release Video Know Your Customer (KYC) Guidelines for Financial Services Companies, following multiple conversations with industry representatives on remote onboarding of customers

👉India will soon give RBI power to regulate Housing Finance Companies (HFCs), which will almost certainly lead to the lenders facing stringent asset quality reviews. They are currently regulated by the National Housing Board and the RBI has no direct authority over them.

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GST, I-T officers conduct joint searches on Indore-based firm; detect tax evasion:

READ MORE- https://www.gststation.in/gst-i-t-officers-conduct-joint-searches-on-indore-based-firm-detect-tax-evasion/
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Ravi Shankar Prasad seeks cut in licence fee, refund Rs 30,000 cr of stuck GST:

READ MORE- https://www.gststation.in/ravi-shankar-prasad-seeks-cut-in-licence-fee-refund-rs-30-000-cr-of-stuck-gst/
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Biz to declare mismatch in GST returns form, outward supplies in annual returns: FinMin:

READ MORE-
https://www.gststation.in/biz-to-declare-mismatch-in-gst-returns-form-outward-supplies-in-annual-returns-finmin/
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No Input Tax Credit for GST paid on expenses incurred on promotional schemes, rules AAR:

READ MORE- https://www.gststation.in/no-input-tax-credit-for-gst-paid-on-expenses-incurred-on-promotional-schemes-rules-aar/

4 July 2019 News and Updates

©orporate Updates on July 4, 2019

Ø India's trade deficit widened with 25 nations in 3 yrs

Ø Cabinet approves award of 3 out of 6 airports to Adani

Ø Indian cos supplying to Huawei may face US sanctions

Ø Cabinet approves Code on Wages bill

Ø BSNL FY19 loss at over Rs 14,000 crore: Govt

Ø  Icra cuts McLeod Russel’s rating to ‘default’ grade

Ø RBI to regulate housing finance firms, review assets

Ø Larsen and Toubro receives promoter's tag in Mindtree with 60% stake

Ø CLP inks deal to buy 3 power assets from Kalpataru for Rs 3,275 cr

Ø Multiple triggers could boost Axis Bank's return ratios, say analysts

Ø NCLAT reserves order on contempt plea filed against Reliance Infratel

Ø Indiabulls Fin to buyback NCDs, masala bonds worth Rs 2,705 cr in Sept

Ø Eris Lifesciences board approves buyback plan of up to Rs 100 cr

Ø Oil India to exit Russian oil block

Ø USFDA issues warning letter to Aurobindo Pharma

Ø Vedanta to spend $245 m to explore 10 OALP blocks

Ø Lupin gets USFDA nod for Cinacalcet tablets and intraocular solution

Ø Blackstone buys stake in L&T Business Park for around ₹700 crore

Ø RBI forms working group to review regulatory framework for core investment cos

Ø Drug regulator warns of hacking risk in Medtronic insulin pumps

Ø India urges Russia to consider energy consuming nations’ interest

Ø Service providers may now opt for GST composition scheme till July 31

Ø Jet suppliers go on merger spree trying to keep up with Boeing and Airbus output

Ø RBI forms working group to review regulatory framework for core investment companies

Ø Rupee edges 6 paise higher at 68.89 against US dollar

Ø  SENSEX, Nifty end marginally higher

Ø Govt. neither divesting nor privatising ONGC: Pradhan

Ø MSP of kharif crops raised

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Hon’ble Delhi High Court has issued notice to government in a writ petition filed by Bharti Telemedia Ltd. (W.P.(C) 6293/2019) challenging Section 16(2)(c), Second proviso to Section 16(2)(d), etc. of Central Goods and Service Tax Act, 2017 (‘CGST Act’ or ‘Act’).

Section 16(2)(c) states, “Registered person shall be entitled to Input Tax Credit (‘ITC’) of tax charged by Supplier if tax has actually been paid to the Government, either in Cash or through Utilization of Input Tax Credit (‘ITC’) by Supplier”.

Petitioner’s contends that the Department is vested with all the powers to recover tax, interest and charge penalty as well, owing to non-payment of taxes by erring suppliers. There is no reason to deny ITC to registered recipient for default on part of the supplier.

The matter is listed for next hearing on September, 2019.

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CBIC issues Clarification for processing of Refund Applications which are Wrongly Mapped on Portal [Read Circular]

Read more at: https://www.taxscan.in/cbic-issues-clarification-processing-refund-applications-wrongly-mapped-portal/36782/
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Due Date for Filing form GST ITC-04 Extended [Read Notification]

Read more at: https://www.taxscan.in/due-date-filing-form-gst-itc-04-extended/36788/
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GST AAR Legal updates:

1. Odisha AAAR- Import of Scientific Equipments- Held, for the purpose of exemption, the primary requirement is that the importer must be a Public funded research institution or any other institution as specified in the Notification No-51/1996-Customs. The Rulings pronounced by the Advance Ruling Authority, Odisha is correct and justified. The appeal filed by the Appellant fails as it does not fulfill the requirement of public funded research institution.
2019-VIL-49-AAAR

2. Maharashtra AAR- Place of supply-  In the present case, though the location of the service receiver is outside India, the services supplied are in respect of goods which are made physically available by the service receiver to the service provider for the services to be performed. The provisions of  S.13 (3)(a) of IGST Act are applicable for supply. When ‘place of supply’ is in taxable territory, the applicant’s supply cannot be considered as Export of Services as per the GST Law. Since the ‘place of supply’ and the ‘service provider’ are in the same State, CGST and SGST are applicable for this transaction.
2019-VIL-184-AAR
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Welcome decision of AAR on residential property given to Company

AAR Ruling:- NO GST on renting of residential property for residence to company [Read Order]:: http://www.taxknowledge.in/gst/5d171a9e0a84e20948892a43
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Circular No. - 102/2019 dated 28th June, 2019

A circular has been issued on 28th June, 2019 covering following subject :-

Clarification regarding applicability of GST on additional / penal interest

Link for Video :-
https://youtu.be/hiWGdp7ovsA
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CGST : Where applicant, sellers of cigarettes, intends to offer extra quantity of cigarettes (quantity discount) in addition to normal quantity against same consideration as a taxable supply to its distributors, since they are contemplating a promotion scheme for distributors wherein they intend to supply additional packs along with regular supply of cigarettes of a particular quantity without receiving any additional consideration for additional packs, extra packs of cigarettes wouldn't be subject to GST

AUTHORITY FOR ADVANCE RULINGS, MAHARASHTRA

Golden Tobacco Ltd., In re

B. TIMOTHY AND B.V. BORHADE, MEMBER
ORDER NO. GST/ARA/121/2018-19/B-52
MAY  4, 2019
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Tough time for importer since they need to pay RCM on ocean freight even if import on CIF basis as per AAR for FY 2017-18, and can't claimed ITC since time to claim ITC also expired

AAR Ruling:- Importer needs to pay GST on Ocean Freight even if import as CIF as per ruling of AAR. [ Read Order]:: http://www.taxknowledge.in/gst/5d1b41da0a84e20948892a4b
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Over 2 lakh new registrations in Haryana under GST:

READ MORE- https://www.gststation.in/over-2-lakh-new-registrations-in-haryana-under-gst/
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Three Indian nationals fined for Singapore GST fraud:

READ MORE- https://www.gststation.in/three-indian-nationals-fined-for-singapore-gst-fraud/
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Due dates

• 07-07-2019 - Deposit of TDS/TCS for the month of June 2019.

• 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service  recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one  financial year for the specified and notified services.

• 10-07-2019 - GSTR 8 for E-Commerce Companies for the m/o June 2019.

• 10-07-2019 - Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.

• 10-07-2019 - Issue of TDS Certificate for salary for the financial year 2018-19.

• 11-07-2019 - GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.

• 13-07-2019 - GSTR-6 for Input Service Distributor.

•  14-07-2019 - Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May'19.

•  15-07- 2019 - Quarterly statement of TCS for the quarter ending 30 June, 2019.

• 15-07-2019- ESI/PF Payment for m/o June 2019.

• 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.

• 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.

• 20-07-2019 - GSTR-3B for the m/o June 2019.

• 20-07-2019 - GSTR-5 for the m/o June 2019.

• 20-07-2019 - GSTR-5A for the m/o June 2019.

• 25-07-2019-  EPF return filing for the month of June 2019.

• 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.

• 30-07-2019 - Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in     month of June'19.

• 31-07-19 - GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.

• 31-07- 2019 - Quarterly statement of TDS for the quarter ending 30 June, 2019.

• 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.

• 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.

• 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.

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Agri-warehousing cos seek GST waiver ahead of Union Budget:

READ MORE- https://www.gststation.in/agri-warehousing-cos-seek-gst-waiver-ahead-of-union-budget/
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Gujarat Budget: Amnesty offered on 20,000 pre-GST cases:

READ MORE- https://www.gststation.in/gujarat-budget-amnesty-offered-on-20000-pre-gst-cases/
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GST: Service providers may now opt for composition scheme till July 31:

READ MORE- https://www.gststation.in/gst-service-providers-may-now-opt-for-composition-scheme-till-july-31/
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Realty sector seeks clarity on GST rate for joint development of commercial projects:

READ MORE- https://www.gststation.in/realty-sector-seeks-clarity-on-gst-rate-for-joint-development-of-commercial-projects/
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Possible to merge 12%, 18% GST as revenues rise: Arun Jaitley:

READ MORE- https://www.gststation.in/possible-to-merge-12-18-gst-as-revenues-rise-arun-jaitley/
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👉Govt warns businesses & issues a Strict Warning against generating fake invoices to evade GST, saying tax officers will take strict action in such cases.

👉CBIC issues Detailed Guidelines on the Refund of Taxes paid on Inward Supply of Indigenous Goods by Retail Outlets established at the departure area of the International Airport beyond Immigration Counters when supplied to outgoing International Tourist against Foreign Exchange.

👉MCA notifies 15 Aug, 2019, as the Effective Date/ Commencement Date for Section 81 of the Companies (Amendment) Act, 2017 pertaining to “Nidhi Companies”, i.e. the date on which provisions of such section shall come into force/ effect. MCA also  issues Nidhi (Amendment) Rules, 2019.

👉MCA issues Companies (Significant Beneficial Owners) Second Amendment Rules, 2019, to amend Form BEN -2, which has been substituted now.

👉RBI imposes penalties ranging between Rs 25-50 Lakhs on 4 Public Sector Banks, for violating Know Your Customer (KYC) norms and Anti-Money Laundering Standards.

👉3 days after presentation of the Union Budget in Parliament, Finance Minister Nirmala Sitharaman will address Reserve Bank of India's (RBI's) Central Board of Directors in a Customary Post-Budget Meeting on July 8. Issues related to the Overall Economy & Fiscal Policy Decisions taken by the Govt will be taken up during the meeting.

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Latest amendments in GST Rules
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1. Rule 10A has been inserted - Taxpayers are required to furnish bank account information on the portal within 45 days of the grant of registration or the due date of GSTR-3B, whichever is earlier.

Effective date = 28 June 2019;

2.Rule 21 has been amended- GST registration is liable to be cancelled of a person not furnishing the details required as per Rule 10A referred above.
Effective date = 28 June 2019.

3. Rule 32A has been inserted - For the purpose of charging GST, the value of supply of good or services shall not include the value of Kerala Flood Cess charged thereon.

Effective date = 01st July 2019.

4. Rule 46 and Rule 49 has been amended- A proviso has been inserted to provide the requirement of Quick Response (QR) code on tax invoice and bill of supply, subject to certain conditions and restrictions, as may be specified.

Effective date = To be Notified.

5. Rule 66(2), 67(2) and 87(9) has been amended - Rules relating to the procedure of claiming TDS / TCS deducted has been amended.

Effective date = 28 June 2019.

6. Rule 87 has been amended– A new Sub-rule 13 has been inserted to provide that a registered person can transfer any amount of tax/interest/penalty/fee to any other head in the electronic cash ledger, In this regard, form GST PMT-09 has also been introduced.

Effective date = To be Notified.

7. Rule 95A has been inserted - Rule 95A has been inserted to provide the refund mechanism to the retail outlets established in the departure area of an International Airport. In this regard, form GST RFD-10B has also been introduced.

Effective date = 01st July 2019.

8. Rule 128, 129, 132 and 133 have been amended- Rules relating to anti-profiteering has been amended.

Effective date = 28 June 2019.

9. Rule 138(10) and 138 have been amended - Proviso has been inserted to provide that the validity of e-way bill may be extended within eight hours from the time of its expiry. Rule 138E has been amended to provide that taxpayers claiming the benefit of notification number 02/2019-Central Tax dated 07 March 2019 shall not be allowed to fill form GST EWB-01 if the return has not been filed for two consecutive quarters.

Effective date = 28 June 2019

10. Amendment to GSTR-9 format:- Tables of Annual Return has been amended to provide the details from April 2018 to March 2019 instead of April 2018 to September 2018;  Instructions of table 8A has been amended to provide that FORM GSTR-2A generated on 1 May 2019 shall be auto-populated in table 8A.
Formats of Forms REG-01, REG-07, REG-12, GSTR-04, RFD-05 and DRC-03 have also been changed to suit the amendments. 

Effective date = 28 June 2019.

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Clarification regarding Annual Returns and Reconciliation Statement via Press Release, Ministry of Finance , 03rd July 2019

Key points:-

📍Role of CA is made clear. It is confined only to reconciliation of GSTR 9 and books and nothing beyond books.

📍Expenses reco - Details of expenses on which ITC has been availed need to be given.

📍Turnover for audit is to be reckoned from July 2017 to March 2018 and not for full financial year.

📍Table 8 is only for settlement purpose and will not be reckoned adversely.

📍Table 16A (Information on supplies from composite suppliers) and 18 (HSN summary of inward supplies) also for informative purpose only.

Clarification in detail

The Government of India has been receiving a number of representations regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C). In this regard the following clarifications are issued for information of all stakeholders: -

👉a) Payment of any unpaid tax: Section 73 of the CGST Act provides a unique opportunity of self – correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such tax payer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in FORM GSTR-3B, such taxpayers may pay the tax with interest through FORM GST DRC-03 at any time. In fact, the annual return provides an additional opportunity for such taxpayers to declare the summary of supply against which payment of tax is made

👉b) Primary data source for declaration in annual return: Time and again taxpayers have been requesting as to what should be the primary source of data for filing of the annual return and the reconciliation statement. There has been some confusion over using FORM GSTR-1, FORM GSTR-3B or books of accounts as the primary source of information. It is important to note that both FORM GSTR-1 and FORM GSTR-3B serve different purposes. While, FORM GSTR-1 is an account of details of outward supplies, FORM GSTR-3B is where the summaries of all transactions are declared and payments are made. Ideally, information in FORM GSTR-1, FORM GSTR-3B and books of accounts should be synchronous and the values should match across different forms and the books of accounts. If the same does not match, there can be broadly two scenarios, either tax was not paid to the Government or tax was paid in excess. In the first case, the same shall be declared in the annual return and tax should be paid and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through FORM GST RFD-01A. Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately.

👉c) Premise of Table 8D of Annual Return: There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not availed by him between July 2017 to March 2019. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is merely an information that the Government needs for settlement purposes. Figures in Table 8A of FORM GSTR-9 are auto-populated only for those FORM GSTR-1 which were furnished by the corresponding suppliers by the due date. Thus, ITC on supplies made during the financial year 2017-18, if reported beyond the said date by the corresponding supplier, will not get auto-populated in said Table 8A. It may also be noted that FORM GSTR-2A continues to be auto-populated on the basis of the corresponding FORM GSTR-1 furnished by suppliers even after the due date. In such cases there would be a mis-match between the updated FORM GSTR-2A and the auto-populated information in Table 8A. It is important to note that Table 8A of the annual returns is auto-
populated from FORM GSTR-2A as on 1st May, 2019.

👉d) Premise of Table 8J of Annual Return: In the press release on annual return issued earlier on 4th June 2019, it has already been clarified that all credit of IGST paid at the time of imports between July 2017 to March 2019 may be declared in Table 6E. If the same is done properly by a taxpayer, then Table 8I and 8J shall contain information on credit which was available to the taxpayer and the taxpayer chose not to avail the same. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is information that the Government needs for settlement purposes.

👉e) Difficulty in reporting of information not reported in regular returns: There have been a number of representations regarding non-availability of information in Table16A or 18 of Annual return in FORM GSTR-9. It has been observed that smaller taxpayers are facing a lot of challenge in reporting information that was not being explicitly reported in their regular statement/returns (FORM GSTR-1 and FORM GSTR-3B). Therefore, taxpayers are advised to declare all such data / details (which are not part of their regular statement/returns) to the best of their knowledge and records. This data is only for information purposes and reasonable/explainable variations in the information reported in these tables will not be viewed adversely.

👉f) Information in Table5D(Exempted),  Table 5E (Nil Rated) and Table 5F (Non-GST Supply): It has been represented by various trade bodies/associations that there appears to be some confusion over what values are to be entered in Table 5D,5E and 5F of FORM GSTR-9. Since, there is some overlap between supplies that are classifiable as exempted and nil rated and since there is no tax payable on such supplies, if there is a reasonable/explainable overlap of information reported across these tables, such overlap will not be viewed adversely. The other concern raised by taxpayers is the inclusion of no supply in the category of Non-GST supplies in Table 5F. For the purposes of reporting, non-GST supplies includes supply of alcoholic liquor for human consumption, motor spirit (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas and transactions specified in Schedule III of the CGST Act.

👉g) Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018- 19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018- 19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY 2017-18 and will be declared in the annual return for FY 2018-19. If there are any variations in the calculation of turnover on account of this adjustment, the same may be reported with reasons in the reconciliation statement (FORM GSTR-9C).

👉h) Role of chartered accountant or a cost accountant in certifying reconciliation statement: There are apprehensions that the chartered accountant or cost accountant may go beyond the books of account in their recommendations under FORM GSTR-9C. The GST Act is clear in this regard. With respect to the reconciliation statement, their role is limited to reconciling the values declared in annual return (FORM GSTR-9) with the audited annual accounts of the taxpayer.

👉i) Turnover for eligibility of filing of reconciliation statement: It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of Rs. 1.2 Crore) and State B (with turnover of Rs. 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than Rs. 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.

👉j) Treatment of Credit Notes / Debit Notes issued during FY 2018-19 for FY 2017-18: It may be noted that no credit note which has a tax implication can be issued after the month of September 2018 for any supply pertaining to FY 2017-18; a financial/commercial credit note can, however, be issued. If the credit or debit note for any supply was issued and declared in returns of FY 2018-19 and the provision for the same has been made in the books of accounts for FY 2017-18, the same shall be declared in Pt. V of the annual return. Many taxpayers have also represented that there is no provision in Pt. II of the reconciliation statement for adjustment in turnover in lieu of debit notes issued during FY 2018-19 although provision for the same was made in the books of accounts for FY 2017-18. In such cases, they may adjust the same in Table 5O of the reconciliation statement in FORM GSTR-9C.

👉k) Duplication of information in Table 6B and 6H: Many taxpayers have represented about duplication of information in Table 6B and 6H of the annual return. It may be noted that the label in Table 6H clearly states that information declared in Table 6H is exclusive of Table 6B. Therefore, information of such input tax credit is to be declared in one of the rows only.

👉l) Reconciliation of input tax credit availed on expenses: Table 14 of the reconciliation statement calls for reconciliation of input tax credit availed on expenses with input tax credit declared in the annual return. It may be noted that only those expenses are to be reconciled where input tax credit has been availed. Further, the list of expenses given in Table 14 is a representative
list of heads under which input tax credit may have been availed. The taxpayer has the option to add any head of expenses.

All the taxpayers are requested to file their Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C) well before the last date of filing, i.e. 31st August, 2019.