CA Rohit Jaiswal

Tuesday, 14 January 2020

14 January 2020 News and Updates

Corporate Snippets on Jan 14

Ø FM may announce capital infusion for non-life insurers

Ø India aiming at USD 250 bn maritime economy by 2024

Ø 7 out of top 10 firms add Rs 32,000 crore to m-cap

Ø FPIs pull out Rs 2,415 cr from domestic market in Jan

Ø $5 tn goal unimaginably ambitious, says economist

Ø Forensic audit finds no fraud at Reliance Home Fin

Ø Farm loan write-offs touch Rs 4.7 trillion in last 10 years, says report

Ø Auto industry seeks bold fiscal measures in the Budget to revive growth

Ø Firms in China remain cautious despite progress in US trade deal

Ø Aramco raises IPO to $29.4 bn via greenshoe option, sells 450 mn shares

Ø Commerce Ministry moving to put in place institutional structure to turn districts into export hubs

Ø Partnership with Hero Future Energies is much deeper: Masdar

Ø Tata Motors global sales dip 3% to 97,348 units in December

Ø Rashesh Shah rejects allegations of FEMA violations

Ø Tata Global Beverages' UK subsidiary sells 100% stake in Czech arm for Rs 31.7 cr

Ø Oil comes back to haunt Asian currencies as volatility increases

Ø China to buy $200 billion more products part of trade deal phase 1: Mnuchin

Ø Adani Gas seeks $350 million from promoter group firms

Ø Realty investors look to build portfolios in India’s logistics sector

Ø Granules India recalls over 2.3 crore ranitidine tablets from US market

Ø Non-life insurers log 12% rise in premium at ₹15,981 crore in Dec 2019

Ø India is in talks with Mongolia and Russia for importing coking coal: Dharmendra Pradhan

Ø STEM-related job postings rise 44 per cent in 3 years: Report

Ø Discoms’ dues to power producers rise by 45% to Rs 81,000 crore

Ø Indian government to seek RBI dividend boost as revenue drops

Ø Tax officials conduct surprise search at SoftBank-backed Oyo

Ø Siemens to support Adani’s Australian coal project

Ø Voda Idea to use rights issue funds to pay AGR dues

Ø Revenue department detects 931 GST fraud cases

Ø STEM jobs in India increase 44% in 2016-2019

Ø TV broadcasters move HC against TRAI's new tariff order

Ø ICICI Bank seeks recovery of amounts from Kochhar

Ø China to buy $200 bn US products for 2 years: US

Ø Retail inflation rises sharply to 7.35% in Dec 2019 from 5.54% in Nov

Ø SEBI blinks, gives India Inc two more years to split CMD position

Ø India's textile and apparel exports to reach $300 bn by FY25: Invest India

Ø IOC to take call on bidding for Govt's stake in BPCL: Chairman Sanjiv Singh

Ø Cement capacity in India expected to cross half a billion tonne this year

Ø Tata Elxsi Q3 net profit up over 14 per cent to Rs 75.4 crore

Ø Health Ministry pulls up Nestle arm for ‘sponsoring’ Apollo conference

Ø Nusli Wadia withdraws suit against Ratan Tata, others

Ø Excess monsoon trims kharif rice production by 8%, says NBHC

Ø Maharashtra sugar output may double next year

Ø JSW Steel crude steel production declines 5% in Q3

Ø Deals in growth-stage startup space climb to a record $3.1 billion in 2019

Ø All GST refund claims on products with imperfect tax structure under scrutiny

Ø 'Value-conscious millennials helping reinvent the Indian travel sector'

Ø India needs a counter-cyclical fiscal response to the ongoing slowdown

Ø Bengaluru bank blames 62 dud loans for crisis, chairman says money '100% safe'

Ø Economic slowdown hits deal market! M&As plunge 34.4 per cent to $67 billion

Ø India imposes anti-subsidy duty on imports of copper wire rods from 4 nations

Ø Airbus inks contract with city startup for talent acquisition

Ø Antitrust probe ordered against Amazon, Flipkart

Ø RBI buys net USD 6.93 billion in currency market in November: report

Ø Tata Motors global sales dip 3 pc dip to 97,348 units in December

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Income tax department now wants to know not only about your earnings and investments but also about your expenses in new income tax return (ITR) forms. Although the finance ministry has relaxed eligibility conditions for filing ITR-1 and ITR-4 forms, yet no changes have been made in the new ITR forms which were notified last week.

GST: Banks, airlines, insurance companies, armed forces and telecom service providers are likely to be exempted from mandatory issuing of e-invoices under goods and services tax.

IL&FS has submitted a fresh affidavit to the National Company Law Appellate Tribunal (NCLAT), asking the tribunal to direct all financial creditors of the relevant IL&FS group entities, including group lenders, to be part of the committee of creditors.

The amendments in the IBBI regulations will prevent backdoor entry of former promoters in companies under liquidation by covering the "loopholes" in the law and are in line with the objective of the Insolvency and Bankruptcy Code (IBC),

Reserve Bank of India (RBI) has curbed a Bengaluru-based private co-operative bank Sri Guru Raghavendra Sahakara Bank from doing business with immediate effect for alleged irregularities in transactions.

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👉🏻SC exempts retrospective petitions from IBC amendment

(SC gave a status quo order regarding the amendment of section 3 of IBC that home buyers set stringent conditions for individual financial creditors to approach the bankruptcy court)

👇🏻 👇🏻 👇🏻

http://bit.ly/386pO4O

👉🏻Applicability of Sec 68, 69A and 115BBE on cash deposited during demonetisation

(Applicability of Sec 68, 69A and 115BBE in the cases of cash deposited during demonetisation explained by CA. Rajiv Jain)

👇🏻 👇🏻 👇🏻

https://youtu.be/3Vq6jKNjYLI

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Latest GST matters to be keep in mind in 2020

👩🏻‍🎓 E-invoice : New E-invoicing system is going to be implemented in GST which is mandatory from 1st April 2020 for taxpayers having an annual turnover exceeding Rs. 100 crore and then gradually to all B2B suppliers in the future. A mechanism for the continuous upload of revenue invoices on a real-time basis. This is the most remarkable change coming in Indian Book Keeping.

👨🏻‍🎓 New IRP in GST: Invoice Registration Portal would be introduced this new year. IRP shall make an e-invoice of the invoices uploaded by the supplier. IRP shall send the e-invoice to the supplier and recipient. IRP shall send e-invoices data to GSTN portal

👨🏻‍🎓 New Return: New simplified auto-mated GST returns would be implemented from 1st April 2020 for all taxpayers. This new returns system will increase compliance and reduce tax evasion to a larger extent.

👩🏻‍🎓 Annexure 1 and Annexure 2: Anx-1 of Outward Supplies and Anx-2 of Inward Supplies will be the future base for filing of all GST Returns, thus these 2 reports will be the key for future reports of GST which will replace GSTR 1 and GSTR-2A.

👨🏻‍🎓 Restriction on claim of ITC: With effect from 01/01/2020, ITC in respect of invoices or debit notes that are not reflected in taxpayer’s FORM GSTR-2A shall be restricted to 10 percent of the eligible ITC reflected in his FORM GSTR-2A. Earlier the restriction was 20%. A major change in ITC availment.

👩🏻‍🎓 E-way Bill and GSTR-1: From 11th January, 2020 non-filing of GSTR-1 for two consecutive periods would block generation of E-way Bill. Thus, regular filing of GSTR-1 and GSTR-3B in year 2020 should go hand in hand.

👨🏻‍🎓 Waiver of late fees for Non-filing of GSTR-1: If the taxpayer has failed to file GSTR-1 from July 2017 to November 2019, then the taxpayers can file such returns till 10 January, 2020 and the late fees for the same has been waived of. This will also affect GSTR-2A of the recipient to claim ITC.

👩🏻‍🎓 GST Audit and Annual Return: The due date for filing GST Annual Return and Audit Report for F.Y. 2017-18 has been further extended to 31st January, 2020.The due date for filing GST Annual Return and Audit Report for F.Y 2018-19 has been extended to 31st March, 2020. For F.Y 2019-20 new format may be brought in because of inherent limitation in current forms.

👨🏻‍🎓 DIN notices and E-scrutiny: Due to decline in collection of revenue from GST, large scale e-scrutiny and e-assessment notices with DIN for the returns from July 2017 may be taken up. It would be done in order to check significant deviations in returns.

👩🏻‍🎓 GSTN Network is proposed to be reengineered for more taxpayer-centric services like reminder of return filing, status of refund, ITC matches and mismatches, etc.

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👉A trustee to Reliance Home Finance’s bondholders has approached the National Company Law Tribunal (NCLT), seeking to recover Rs 3,500 crore of investment after the Reliance Capital unit missed repayments. IDBI Trusteeship Services filed the application under the Companies Act, since this doesn’t require it to first seek the Reserve Bank of India’s permission, a requirement to move under the Insolvency and Bankruptcy Code against a financial services company. Taking the IBC route through the RBI would be time-consuming and it “is not actively under consideration for now”, a person in the know said.

👉NCLAT reserves order over NCLT's jurisdiction to implead auditors in IFIN case- Hearing a plea by Deloitte Haskins and Sells and KPMG arm BSR & Associates, the NCLAT on Friday reserved its order on the NCLT's jurisdiction over impleadment of auditors in the case involving alleged fraud in IFIN, a subsidiary of IL&FS.

👉 The National Company Law Tribunal (NCLT) has ordered insolvency resolution process against a company in probably the first such case in India where the petitioner that approached the bankruptcy court alleging payment default is a firm that had earlier provided it services on insolvency resolution.

The NCLT’s Hyderabad bench has ordered the proceedings at Sri Yadadri Life Sciences (SYLS) for the alleged default in payments to Adroit Financial Services (AFS) for advice given on insolvency resolution and services towards capital structuring and settlement of debt through a one-time settlement (OTS) with its lender.

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👉The date of waiver of late fee for GSTR-1 of tax periods (Monthly/Quarterly) starting from July, 2017 to November, 2019, has been extended to 17th January, 2020.

👉Filing ITR1 for FY2019-20? Check latest eligibility norms set by CBDT.

Friday, 10 January 2020

10 January 2020 News and Updates

Corporate Snippets on Jan 10

Ø No financial and technical yardstick for coal auctions

Ø Growth in India projected to 'decelerate' to 5%: WB

Ø Sitharaman's tax, asset sales nos are trailing target

Ø EV dream not very far, need priority financing: M&M

Ø Rupee surges 48 paise as US-Iran tensions ease

Ø ICICI Pru invests Rs 334 cr in own credit risk fund

Ø CCI’s ‘soft view’ on Ecomm rules irks phone retailers

Ø Videocon loan case: ED likely to attach Chanda Kochhar's property, assets

Ø Exporters approach court over cess on export incentives, get interim relief

Ø Credit supply to commercial sector slows to multi-year low of 8.1%: SIDBI

Ø Tax Dept allows joint property owners to file returns using simple forms

Ø India needs 6.3% labour productivity growth to clock 8% GDP: India Ratings

Ø Now, World Bank lowers India’s FY20 growth estimate to 5%

Ø At $81.39 billion, Tesla beats GM, Ford to become highest valued US automaker of all time

Ø Ashok Leyland, ABB arm ink pact to develop electric buses with flash- charging tech

Ø IL&FS seeks EoI to sell stake in GRBDCL

Ø GHAL to develop ₹550-crore logistics park

Ø Coffee Day defaults on repayment of loans to banks, others

Ø Tiger Global invests $200 million in BYJU's; valuation jumps to $8 billion

Ø Sterling and Wilson must provide exit option for minority shareholders: InGovern

Ø Shifting palm oil into ‘restricted list’ was a commercial decision: India

Ø Bharti Airtel board meet on 14 Jan to decide issue price for QIP, FCCB

Ø HDFC completes majority acquisition in Apollo Munich Health Insurance

Ø FTAs with EU, Australia, Canada to help boost textile exports: AEPC

Ø ‘World Bank lowers Pakistan’s growth rate at 2.4 per cent’

Ø China’s economy czar going to Washington to sign trade deal

Ø China opens oil and gas exploration to foreign firms

Ø SoftBank denies exiting renewable energy JV with Bharti Enterprises, Foxconn

Ø Global air freight demand slips down 1.1 pc in November: IATA

Ø Union Budget must focus on economic growth by boosting real estate: NAREDCO

Ø Inflation probably breached RBI target in December: reports

Ø World Bank trims 2020 growth forecast amid slow recovery for trade

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CBDT Amendment of rule 10DA and rule 10DB regarding furnishing of information and maintenance of documents by Constituent Entity of an international group – Notification No. 03/2020-Income Tax Dated: 6th January, 2020.

GST: Today 10.1.20 is Last Day to file pending GSTR-1 from Jul 2017, to avoid late fee & blocking of eway bill, even if 2 consecutive GSTR-1 not filed.

However, Due date of late fee waived for the GSTR-1 pertaining to period July, 2017 to Nov, 2019 to be extended from 10th Jan, 2020 to 17th Jan 2020:

READ MORE- https://www.gststation.in/due-date-of-late-fee-waived-for-the-gstr-1-pertaining-to-period-july-2017-to-nov-2019-to-be-extended-from-10th-jan-2020-to-17th-jan-2020/

GST Department to Audit 70% of Taxpayers for AY 17-18. GST authorities have begun issuing notices for the tax audit exercise, which involves detailed scrutiny of the accounts and records for FY18. Tax authorities have issued notices seeking audit of accounts and records from July 2017 till March 2018, the first year of GST implementation.

MCA has extended the time offered to companies to provide information about persons who control 10% or more stake in the entity by 3 months. The process of informing the MCA about significant beneficial owners (SBOs) is part of the exercise to bring in more transparency about persons with significant control over a firm.

National Company Law Tribunal on warned Jet Airways (India) Ltd. Committee of Creditors of contempt proceedings if they do not release interim funds to the resolution professional by Jan. 20 for completion of insolvency proceedings.

RBI is planning to auction distressed private banks that are under the Prompt Corrective Action (PCA) framework for a prolonged period, the Business Standard reported. This is part of the RBI’s plan to have a different rule book for distressed banks.

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👉 Jaypee Infratech's Interim Resolution Professional Anuj Jain has filed an application before the National Company Law Tribunal (NCLT), Allahabad, to approve the bid of state-owned NBCC to acquire debt-laden realty firm through insolvency process, sources said. Last month, NBCC won the bid to acquire Jaypee Infratech after financial creditors, including lenders and homebuyers, approved its resolution plan.

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👉Important tax dates in the year 2020.

👉Jan-15 Quarterly statement of TCS deposited for quarter ending December 31, 2019.

👉Jan-30 Issue of Quarterly TCS certificate in respect of tax collected for the quarter ending December 31, 2019.

👉Jan-31 Quarterly statement of TDS deposited for the quarter ending December 31, 2019.

Thursday, 9 January 2020

9 January 2020 News and Updates

Ø FY20 GDP growth pegged at 5%; analysts wary

Ø ICT spending in India will reach $144 bn in 2023

Ø Ordinance to amend coal mining laws likely today

Ø Maruti only Indian firm to find place in Morgan Stanley arm's top-20 stocks

Ø Govt. set to breach fiscal deficit target, shows GDP advance estimates

Ø FMCG companies' Q3 volume growth may be slowest in ten quarters

Ø ITI zooms 15% on 12-fold jump in Q3 profit

Ø India-Iran trade dips 79.4 per cent in April-Nov.

Ø Cable TV bills set to fall by up to 14 per cent, new tariff changes to take effect from March 1: ICRA

Ø Religare Finvest's lenders might just have agreed to take a 49% haircut

Ø GoAir gets regulator’s rap for overworking more than 150 pilots

Ø Extremely close to tipping point of major recession, says Nobel Laureate Abhijit Banerjee

Ø RBI governor Shaktikanta Das calls for reforms in agriculture market

Ø India's oilmeals export drops over 79 per cent in December 2019

Ø India's per-capita income rises 6.8 per cent to Rs 11,254 a month in FY20

Ø SC rejects Centre's plea challenging refund of Rs 104 cr ordered by TDSAT to RCom

Ø Shah-led GoM's second meeting on Air India disinvestment likely today

Ø Adani takes aim at India's defence pie

Ø Telecom AGR dips 4.6% on quarter in July-Sept: TRAI

Ø Maruti production up 7.88% in Dec to 1,15,949 units

Ø Govt. to provide Rs 5,559 cr viability gap funding to set up gas grid in NE

Ø FMCG companies' Q3 volume growth may be slowest in ten quarters

Ø Adani Enterprises dips 4% as SC stays Bombay HC ruling

Ø Central Government imposes restrictions on import of refined palm oil

Ø Cabinet removes end use restrictions for participating in coal mine auctions

Ø Cut in tax on commodity deals, DDT likely in Budget

Ø Reliance Jio launches free voice calls over WiFi: How to enable it on your phone

Ø Over 87% GATI shareholders vote for sale to Allcargo

Ø Lodha Group clocks ₹2000 cr sales in Dec quarter backed by budget housing brand

Ø Bharti Airtel launches $2 billion QIP - qualified institutions placement

Ø Shriram Properties bets on coming Budget to start work on pending IPO of Rs 800 crore

Ø Jet Airways insolvency: IDBI Bank and IOB say cant fund the process further

Ø Telecom majors seek open court hearing in SC of their pleas on AGR

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Income Tax Reopening for taxing bogus share application money where investors have dubious character & are known to have engaged in the business of providing accommodation entries. Supreme Court Costs of Rs. 2L imposed on assessee for wasting Court's time (Favour of Revenue) RDS Project Limited vs. ACIT (Delhi High Court).

Sabka Vishwas dispute resolution scheme, about 87% of eligible taxpayers have opted for the scheme and committed to pay about Rs 35,000 crore as taxes to the government. This has come as a relief to the government, which is grappling with a huge shortfall in tax revenue this fiscal.

MCA has made it mandatory for unlisted companies, or private firms, with outstanding loans of Rs 100 crore or more to file their financial audit reports for financial year 2020-21 onwards. Such private companies will have to conduct a mandatory secretarial audit and submit the findings with the government.

Companies (appointment and remuneration of managerial personnel) Rules, 2020, which will come into effect from April 1, 2020, a private company that has a paid-up share capital of Rs 10 crore or more would have to have a company secretary (CS) on its rolls.

Reserve Bank of India (RBI) has revised supervisory action framework (SAF) for urban co-operative banks. A UCB may be placed under supervisory action framework when its net non-performing assets (NPAs) exceed 6% of its net advances.

Reserve Bank of India said select banks in India can offer forex rates to Indian clients beyond the inter-bank market hours, which now run from 5 a.m. to 9 p.m. In effect, this opens up the forex market in India round the clock, allowing Indians to hedge their foreign exchange risks at anytime of the day.

National Stock Exchange (NSE) said it has approached markets regulator SEBI for its initial public offering and hopes to launch the public issue by September this year subject to approvals.

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👉🏻IBBI amends liquidation process norms

(IBBI has amended the norms for liquidation process wherein a secured creditor is barred from selling assets of a company to any person restricted from submitting insolvency resolution plan.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2N6OUZp

👉🏻Homebuyers move SC against the IBC amendment introducing minimum threshold

(Govt brought in an amendment under IBC in mid December to introduce a minimum threshold of 100 or 10 per cent home buyers whichever is lower required to take a defaulting developer to the NCLT for starting the liquidation process)

👇🏻 👇🏻 👇🏻

http://bit.ly/2T1XVH1

👉🏻SEBI comes out with system audit framework for exchanges, clearing corporations

(SEBI came out with new framework on system audit for market infrastructure institutions (MIIs), stock exchanges, clearing corporations and depositories)

👇🏻 👇🏻 👇🏻

http://bit.ly/2T28Sbz

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👉 The National Company Law Tribunal’s order asking two directors of Nicco Parks & Resorts to vacate their positions may revive investor interest in the sale of Nicco Corp’s 25% stake in it, said Vinod Kothari, the liquidator appointed for the bankrupt Nicco Corp. The liquidation process, which started in October 2017, could not be completed due to poor interest from investors.

👉 Indian banks could be staring at bad-debt provisions of an estimated Rs 30,000 crore against loans to Dewan Housing FinanceNSE 4.73 % Corp (DHFL), the Anil Ambani-led Reliance Home Finance, KKR-backed Coffee Day Enterprises and CG Power. Resolution hasn’t been finalised in any of these accounts, which means the December quarter could possibly see a reversal in the brief fall in provisioning that occurred in the preceding three-month period.

The bulk of the provisions will be on account of DHFL, which entered the bankruptcy process in December.

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In a much awaiting step, a new code has now been allotted to the UT of Ladakh (UT code - '38') and accordingly, new GSTIN have been allotted to taxpayers located in UT of Ladakh after separation. In this regard, following points merit consideration:

- The new list of GSTINs can be accessed through https://tutorial.gst.gov.in/downloads/news/ladakh_taxpayer.pdf

- Above taxpayers need to use new GSTIN for all purposes under GST w.e.f. 01-01-2020.

- Also, entire input tax credit available till 31-12-2019 can be transferred to new GSTINs from 01-01-2020 through option for availment and reversal of ITC in GSTR-3B return.

- Balance of SGST would be transferred as balance of UTGST for UT of Ladakh

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👉Announcements - MEF 2019-20 - (08-01-2020).

https://www.icai.org/new_post.html?post_id=16212&c_id=240

👉Important dates

CMP-08(Oct-Dec, 2019) = Jan 18th, 2020.

👉GSTR-1 for registered persons with aggregate turnover up to ₹ 1.5 Crores.

GSTR-1(Oct-Dec, 2019)=Jan 31st, 2020.

👉A webinar has been scheduled on 9th January 2020 at 11.30 am IST on the topic Eway Bill blocking/unblocking for tax payers in Telugu. https://www.gst.gov.in/newsandupdates/read/348

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CBDT kick started the annual income tax return filing ritual recently. The new ITR forms for the assessment year 2019-20 come with a set of changes—essentially more detailed disclosures— taxpayers have to contend with.

Eligibility criteria for ITR- 1 reduced

ITR-1 for FY 2019-20 cannot be used by an individual having one house property in a joint ownership as well, ITR-1 cannot be used by an individual who is either director in a company, or has invested in unlisted equity shares. Also who have incurred expenses of Rs 2 lakh or more for travel to foreign country either on himself or any other person. Added to this, individuals who have deposited more than Rs 1 crore in one or more current accounts or/and paid electricity bill of more than Rs 1 lakh, too cannot use ITR-1.

TAN of your employer

This year's ITR-1 asks for detailed information of your employer. You will have to provide the Tax Deduction Account number (TAN) of the employer, mandatory if tax is deducted. Other details required are name, nature, address of the employer. these details will be pre-filled automatically, once TAN of the employer is filled by the taxpayer in ITR-1.

PAN or Aadhar details of your tenant

If you have rented out a property, then you will have to provide name and Aadhar or PAN details of your tenant, if available.

Passport details

In this year's ITR-1, taxpayers will have to provide their passport number (if they have one). This is a new addition. This form, however, cannot be used by individuals who have spent Rs 2 lakh or more on foreign travel expenses.

Complete address of your house

It is now mandatory that you have to provide the complete address of your house irrespective of whether it is - self-occupied, deemed to let-out or let-out. Earlier, these details were asked only in ITR-2 and ITR-3.

Provide details of unrealized rent

If during FY 2019-20, you have not received the rent which was due to you, then such details are also required to be provided. Taxpayer eligible to file ITR-1 is required to provide the rent which was due but not received in FY 2019-20.

Online filing of ITR mandatory

For FY 2018-19, only super senior citizens can now file ITR-1 or ITR-4 in paper form and others will have to file their ITR electronically.

Complete details of buyer to whom you have sold property

The buyer details have to be provided irrespective whether the capital gains accrued are of short-term or long-term in nature. The details of buyer will have to be given if TDS is deducted by your buyer while making payment.

Property wise details of rent arrears

For individuals with more than one house property, they are required to file their ITR using ITR-2.

Specifying the type of house property

While providing details of your one house property in ITR-1, you are required to specify whether the house is - 'Self Occupied', 'Let-out' or 'Deemed Let-out.' In the previous year's ITR-1, there was no such option of 'Deemed Let-out' in ITR-1.

Investment details in unlisted companies

If you are holding shares in an unlisted company then, you are required to disclose the details of your holdings in ITR-2. The details required are extensive - name of the company, PAN of the company, number and cost of acquisition at the beginning of the year, number of shares, face value, issue price (or purchase price) and date of purchase of shares acquired during the year, number and sale consideration of shares transferred during the year, number and cost of acquisition of shares held at the end of the previous year.

Full disclosure of interest income

Taxpayers will be required to specify the full bifurcation details of the interest income or any other income received by them. Income from other sources head in ITR-1 has been updated to provide details of the source from where interest or any other income is received.

Residential status

The new ITR-2 form asks individuals not only to specify the residential status as resident, resident but not ordinarily resident or non-resident, but also to provide additional information with respect to his residential status, such as, number of days of stay in India, jurisdiction of his residence and tax identification number in case he is a non-resident.

Mention of DIN number

If you are Director of a company, then you will be required to specify your DIN (Director Identification Number) in ITR-2 or 3 whichever is applicable. Along with this you will also be required to provide information - name of company, PAN, whether shares are listed or unlisted.

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👉An appellate tribunal has directed the Liberty House Group to file an affidavit outlining the implementation of its Rs 460 crore resolution plan for Adhunik Metaliks and Zion Steel, giving the UK-based company one more chance after it failed to make full upfront payment for the two entities in time.

👉The National Company Law Tribunal’s order asking two directors of Nicco Parks & Resorts to vacate their positions may revive investor interest in the sale of Nicco Corp’s 25% stake in it, said Vinod Kothari, the liquidator appointed for the bankrupt Nicco Corp. The liquidation process, which started in October 2017, could not be completed due to poor interest from investors.

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GST- Ten Matters to keep in mind in 2020

1. E-invoice : New E-invoicing system is going to be implemented in GST which is mandatory from 1st April 2020 for taxpayers having an annual turnover exceeding Rs. 100 crore and then gradually to all B2B suppliers in the future. A mechanism for the continuous upload of revenue invoices on a real-time basis. This is the most remarkable change coming in Indian Book Keeping.

2. New IRP in GST: Invoice Registration Portal would be introduced this new year. IRP shall make an e-invoice of the invoices uploaded by the supplier. IRP shall send the e-invoice to the supplier and recipient. IRP shall send e-invoices data to GSTN portal

3. New Return: New simplified auto-mated GST returns would be implemented from 1st April 2020 for all taxpayers. This new returns system will increase compliance and reduce tax evasion to a larger extent.

4. Annexure 1 and Annexure 2: Anx-1 of Outward Supplies and Anx-2 of Inward Supplies will be the future base for filing of all GST Returns, thus these 2 reports will be the key for future reports of GST which will replace GSTR 1 and GSTR-2A.

5. Restriction on claim of ITC: With effect from 01/01/2020, ITC in respect of invoices or debit notes that are not reflected in taxpayer’s FORM GSTR-2A shall be restricted to 10 percent of the eligible ITC reflected in his FORM GSTR-2A. Earlier the restriction was 20%. A major change in ITC availment.

6. E-way Bill and GSTR-1: From 11th January, 2020 non-filing of GSTR-1 for two consecutive periods would block generation of E-way Bill. Thus, regular filing of GSTR-1 and GSTR-3B in year 2020 should go hand in hand.

7. Waiver of late fees for Non-filing of GSTR-1: If the taxpayer has failed to file GSTR-1 from July 2017 to November 2019, then the taxpayers can file such returns till 10 January, 2020 and the late fees for the same has been waived of. This will also affect GSTR-2A of the recipient to claim ITC.

8. GST Audit and Annual Return: The due date for filing GST Annual Return and Audit Report for F.Y. 2017-18 has been further extended to 31st January, 2020.The due date for filing GST Annual Return and Audit Report for F.Y 2018-19 has been extended to 31st March, 2020. For F.Y 2019-20 new format may be brought in because of inherent limitations in current forms.

9. DIN notices and E-scrutiny: Due to decline in collection of revenue from GST, large scale e-scrutiny and e-assessment notices with DIN for the returns from July 2017 may be taken up. It would be done in order to check significant deviations in returns.

10. GSTN Network is proposed to be reengineered for more taxpayer-centric services like reminder of return filing, status of refund, ITC matches and mismatches, etc.

Tuesday, 7 January 2020

07 January 2020 News and Updates (2/2)

Corporate Snippets on Jan 7

Ø RBI revises supervisory norms for UCBs

Ø RBI buys and sells bonds worth Rs 10,000 cr each

Ø Cement demand may rise by up to 6% on govt’s mega infra push

Ø NTPC outbids Adani for Avantha’s MP plant

Ø Two senior Samsung India executives resign

Ø NCLAT upholds its judgment in Tata-Mistry case, dismisses RoC plea

Ø Oil-linked stks trade weak as oil prices surge; HPCL down 5%

Ø Banks slip up to 4% as US-Iran tension push bond yields higher

Ø UTI Mutual Fund receives payments of Rs 20.5 cr from Altico Capital India

Ø Telecom industry urges Govt. to facilitate funding at lower interest rate

Ø Cotton exports fall to nearly half on higher domestic prices during October-December 2019

Ø Bank of Maharashtra cuts MCLR by up to 45 basis points

Ø Higher diesel prices push up truck rentals in first week of January: IFTRT

Ø Prestige Group plans 6 malls, eyes largest mall operator tag

Ø Tata Capital Housing launches ₹2,000 crore maiden NCD issue

Ø Citigroup to hire 2,500 IT professionals for offices in Chennai, other locations

Ø PM Modi reaches out to India Inc to revive economic momentum

Ø Gold prices today surge to record high, jump ₹1,800 per 10 gram in 2 days

Ø Xerox secures $24 billion financing for proposed HP takeover

Ø Loan waiver may cost Maharashtra Rs 51,000 cr; Govt. better announce these measures to help farmers

Ø Supreme Court asks Nusli Wadia, Ratan Tata to resolve differences in defamation case

Ø Exim Bank hits global bond markets with $1-billion issue

Ø Nifty nosedives 234 pts on war fears, SENSEX has its worst day in six months

Ø Petrol, diesel prices up for the fifth straight day as crude hits USD 70 mark

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👉Filling up the post of Sr.Assistant Director( Banking) in SFIO on deputation/ISTC basisPdf(85 KB). http://www.mca.gov.in/Ministry/pdf/AddendumpostBanking_07012020.pdf

👉Companies (appointment and managerial personnel) Amdt Rules 2020. http://www.mca.gov.in/Ministry/pdf/AmdtRules_06012020.pdf

👉ITR filing: 6 key changes in ITR-1 you need to know.

Here's a list of the 6 key changes, including the above, introduced in the ITR1 for financial year 2019-20.

https://economictimes.indiatimes.com/wealth/tax/itr-filing-6-key-changes-in-itr-1-you-need-to-know/articleshow/73120215.cms

👉Important dates

CMP-08(Oct-Dec, 2019) = Jan 18th, 2020.

👉GSTR-1 for registered persons with aggregate turnover up to ₹ 1.5 Crores.

GSTR-1(Oct-Dec, 2019)=Jan 31st, 2020.

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👉🏻Revenue department unearths IGST refund fraud by top exporters

(CBIC has identified at least 9 star export houses that are untraceable and 82 such exporters whose declarations before income tax and GST have significant variance)

👇🏻 👇🏻 👇🏻

http://bit.ly/35v9dWE

👉🏻Private Companies with large borrowings to undergo Secretarial Audit

(Private companies with total outstanding debt of Rs 100 crore or more to banks and financial institutions will now have to submit a secretarial audit)

👇🏻 👇🏻 👇🏻

http://bit.ly/2sW2SX4

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ITR 1 & 4 notified for AY 2020-21 can’t be used if assessee owns property jointly with 2 or more persons. Income-tax (1st Amendment) Rules, 2020 wef 1.4.20.

A number of trusts set up in overseas tax havens using a complex maze of entities have come under the scanner of Indian and Swiss authorities for suspected tax evasion by parking of illicit funds in Switzerland-based banks, as per notices issued to those entities. In addition, several individuals who are suspected to have moved abroad after evading taxes back in India are also being probed and their banking details are in the process of being shared by the Swiss authorities with their Indian counterparts.

GST: Medicines/consumables used in the course of providing health care services is ‘composite supply’, exempt from GST. CMC Vellore Association, In re- [2020] 113 taxmann.com 55 (AAR - TAMILNADU).

Revenue Department has brought to the notice of the Directorate General of Foreign Trade (DGCF) instances of ‘mis-availment’ of Integrated Goods & Services Tax (IGST) refunds, based on fake invoices, by some exporters holding ‘star’ status. It has also advised the DGFT, under the Commerce Ministry, to make the exporters’ accreditation system more robust.

MCA increases Threshold Limit for requirement to appoint of CS in Pvt. Ltd. From Rs. 5 Cr. to Rs. 10 Cr. MCA notification dtd. 3rd January, 2020.

MCA adds Additional criteria for requirement of Secretarial Audit if outstanding loan or borrowings from banks or PFIs is RS 100 Cr. Or more. Notf dtd 03.01.20

07 January 2020 News and Updates (1/2)

Corporate Snippets on Jan 7

Ø DHFL: Fixed deposit claims worth Rs 4,800 cr admitted

Ø Petrol, diesel prices up for 4th straight day

Ø India Inc's overseas borrowing up 6.5%

Ø NHAI downsizes toll-operate-transfer-4 bid by Rs 2,000 Cr

Ø Govt. plans financial statement reporting norm for unlisted cos

Ø Wipro, Infosys hit by fresh discrimination suits in US

Ø NPS for traders fails to gain traction, only 25,000 registrations till now

Ø Switzerland sends notices to Indians for trusts set up in tax havens

Ø BSNL filed details of 14 properties of Rs 20,160 cr for monetisation: CMD

Ø Vedanta to raise up to Rs 2,000 cr through non-convertible debentures

Ø Discoms owe Rs 81,085 cr to power producers in Nov 2019, amount up 45%

Ø Further escalation in US-Iran tension may affect India’s exports: FIEO

Ø Eight states finalise action plan for agri export policy: Govt

Ø DuPont develops RO-based water treatment plant

Ø Tesla meets lower end of 2019 target for vehicle deliveries

Ø States may face ₹1.23 trillion revenue gap post withdrawal of GST compensation

Ø 'India, China should set aside rivalries to rewrite global economic rules'

Ø HDFC to raise up to ₹5,000 crore on January 7

Ø Six of top-10 Indian firms lose ₹26,624 crore in m-cap, ICICI Bank worst hit

Ø Govt. unlikely to announce capital infusion for PSU banks in Budget 2020

Ø FPIs pull out Rs 2,418 crore in first three trading sessions of 2020

Ø World Bank’s ease of doing business: DPIIT focusing on 6 parameters to push India’s ranking

Ø HUL wins latest round of water purifier patent battle against Tatas

Ø Fiscal woes: Centre set to cut spending by nearly Rs 2.2 lakh crore

Ø Soon, 150 private trains on Indian Railways network; Mumbai-Delhi, Patna-Delhi among 100 routes discussed

Ø Indian bonds gain as RBI widens special open market operation

==≠======>

Income Tax Returns form 1 and 4 for AY 2020-21 notified

Following are some changes in new ITR 4Sugam AY 2020-21 :-

[ ] If having Passport, its number is to be given

[ ] If incurred aggregate expenses exceeding Rs. 2 lakh on foreign Travel for self or for others, then amount to be specified

[ ] If deposited aggregate amount exceeding Rs. 1 crore in one or more current accounts then aggregate of amount deposited in all such accounts to be specified.

[ ] If spent amount exceeding Rs. 1 lakh on electricity consumption then specify such aggregate amount.

[ ] If any assessee owns property in co-ownership then he will not be eligible to file ITR 1 Sahaj or 4 Sugam.

[ ] In case of 44AD or 44ADA or 44AE now the assessee will be required to give opening balance of cash in hand and opening balance of bank accounts and also will be required to give total amount received in cash during the year total Amount deposited in bank during the year, total amount of cash outflow out of cash balance during the year, total amount of withdrawal from Bank during the year and closing balance of cash in hand and closing balance of banks.

[ ] Now there will be no need to provide figures of unsecured loans, sundry debtors, sundry creditors, amount of closing stock, etc. as was required in earlier years

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# Revised norms/policy of C&AG empanelment. Kindly read full on link.

http://care.cag.gov.in/policy/Policy.htm

# The monthly wages limit under Employee's Compensation Act, 1923 has been revised to Rs.15,000/- w.e.f. 03.01.2020.

# UDIN generation time limit reduced to 15 days from *01-01-2020.

# 07.01.2020 is the due date to pay TDS/TCS for the month of Dec, 2019

# 10.01.2020 is the due date to file GSTR-1 for the period July, 17 to Nov, 19 for filing the *Return without LATE FEES.

# Wef 11.01.2020, e-way bill will not be generated even if GSTR-1 is pending.

==≠======>

CBDT Further Extension of time limit of 12 months for applying for Compounding of Offences under Income Tax Act till 31.1.2020. Circular 1/2020-Income Tax of 3.1.2020.

CBDT has notified Rule 119AA of Income tax Rules, 1962 mandating businessmen with Turnover more than INR 50 crores to have facility to accept payment through Rupay Debit Card, BHIM-UPI, UPI QR Code w.e.f. 01.02.2020 otherwise penalty may be levied for INR 5,000 per day.

GST amendments have been made effective w.e.f. 01.01.2020:

Aadhar Authentication has been made mandatory for GST Registrations.

Mandatory online modes of accepting payment also inserted in GST as inserted in Section 269SU of Income tax Act.

Transfer of Cash Ledger balances on the common portal within Major and Minor Heads has been allowed.

Penalty of 10% has been introduced under anti-profiteering provisions.

New SEZ Registrants needs to provide SEZ related information in REG-01.

TRAN-1 and TRAN-2 dates extended for taxpayers facing “technical issues” to 31.03.2020 and 30.04.2020 respectively.

GST: As a one-time measure to enable taxpayers to clear the backlog of all #GSTR-1 which have not been filed from July 2017 to Nov 2019, a late fee waiver till 10.01.2020 (vide NN 74/2019 dt. 26.12.2019) has been provided.

==≠======>

👉 Debt investors of Reliance Home Finance (RHFL), a unit of Reliance Capital are planning legal action that may include a request for initiating recovery proceedings in the National Company Law Tribunal against the stressed financier, which defaulted on bond repayments due earlier this month.

👉 The country's largest mortgage lender HDFC Ltd on Thursday said the company and its subsidiary HDFC ERGO have got approvals for acquiring a majority shareholding in Apollo Munich Health Insurance Co Ltd. According to the acquisition deal, HDFC will acquire majority stake in Apollo Munich from the Apollo Hospitals Group for Rs 1,347 crore and will merge the company with its arm HDFC ERGO.

👉 The cumulative share of operational creditors in companies admitted under Insolvency and Bankruptcy Code (IBC) has reduced to 48 per cent at the end of Q2 from 50 per cent in Q1 of FY20. Correspondingly, the share of financial creditors has risen from 40 per cent to 43 per cent in the same period, data from the Insolvency and Bankruptcy Board of India (IBBI) showed.

==≠======>

👉🏻 MCA amends the Rule 8A and provides that every private company which has a paid up share capital of ten crore rupees or more shall have a whole -time company secretary."

👉🏻 Further, the MCA has also amended the Rule 9 to extent the scope of Secretarial Audit Report and now it is mandatory also for every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more. Earlier, there were only two criteria viz.

1. Paid-up share capital of fifty crore rupees or more; or

2. Turnover of two hundred fifty crore rupees or more.

==≠======>

👉🏻CBDT extends deadline for compounding of income tax offences till Jan 31

(CBDT has extended till January 31 the last date for taxpayers to avail a "one-time" facility to apply for compounding of income tax offences)

👇🏻 👇🏻 👇🏻

http://bit.ly/2QJD5tb

👉🏻E-commerce cos may get to upload GST e-invoice for vendors

(In a significant relaxation for the ecommerce sector, the government could allow online platforms to upload e-invoice for vendors under GST framework)

👇🏻 👇🏻 👇🏻

http://bit.ly/36mtaQN

👉🏻Bank employees to go on nationwide strike on Jan 8

(Normal banking services at bank branches and ATMs are likely to be impacted as major bank unions have decided to resort to an all-India general strike on January 8)

👇🏻 👇🏻 👇🏻

http://bit.ly/2MTfOUB

==≠======>

Revenue Secretary will hold a day-long meeting on January 7 with tax commissioners to discuss ways for streamlining the GST system and plugging leakages due to fraud. Besides, this meeting with Commissioners of State Tax and Chief Commissioners of Central Tax will also deliberate on enhancing GST compliance by plugging loopholes and discourage tax evaders, that gaming or misusing the system.

SEBI with an intent further strengthen the conduct of investment advisers has issued a circular to all Investment Advisors and instructed them to do proper risk profiling of clients and obtain their consent on the same before providing any advice to such investors.

RBI announced its third round of simultaneous purchase and sale of government securities under the special open market operation (OMO). The RBI said it will purchase two new long-term government securities, maturing in 2024 and 2026, in addition to the 10-year bond maturing in 2029.

State Bank of India intends to appoint Concurrent Auditors for Currency Chest verification, on contract basis for their business unit spread all over the country. Last date for receipt of application for Appointment of CA firms is extended up to 10.01.2020.

==≠======>

👉 The corporate affairs ministry on Friday told the company law appellate court that the registrar of companies (RoC) did not commit any illegality in granting permission to convert Tata Sons into a private company. The submission came in response to a petition by the RoC seeking modification of the order by the National Company Law Appellate Tribunal (NCLAT) that reinstated Cyrus Mistry as chairman of Tata Sons and quashed the conversion of Tata Sons into a private company from a public company.

👉 The State Bank of India (SBI) has asked Reliance Industries (RIL) to complete its proposed takeover of bankrupt textile company Alok Industries by paying up its equity share so that the long pending resolution process can be completed, a person directly aware of the communication said.

👉 Hinduja, Synergy, Dubai fund may bid for Jet Airways –

• Lenders are unwilling to give more time and have set a final deadline of 15 Jan for expressions of interest

• The Hinduja group is looking to acquire Jet Airways if it is indemnified from the airline’s legal liabilities

==≠======>

Vehicle can’t be Detained for Non-Filing of GST Returns: Kerala HC [Read Order]

Read more at: https://www.taxscan.in/gst-returns-vehicle-detained-kerala-hc/43210/

==≠======>

Registered Person making Zero Rated Supply eligible to Claim IGST Refunds: Madras HC [Read Judgment]

Read more at: https://www.taxscan.in/igst-refunds-registration-zero-supply-claim-madras-hc/43114/

Thanks for reading

Friday, 3 January 2020

03 January 2020 News and Updates

Corporate Snippets on Jan 3

Ø Rs 3.13L cr: Non-telcos face bigger AGR pain than telecom firms

Ø India can explore $82 bn export potential in China

Ø Bank credit grows 7.10% to Rs 99.47 lakh crore

Ø Revenue secy to hold meeting with officials on Jan 7

Ø HDFC get nod to pick majority stake in Apollo Munich

Ø India electricity supply down 1.1% in December

Ø NCLAT adjourns RoC plea on Tata Mistry case till Friday

Ø Govt. likely to miss disinvestment target, expects Rs 67,000-crore gap

Ø Hindustan Aeronautics, Wipro 3D join hands for 3D printing in aerospace

Ø ONGC gets all 7 oil, gas blocks in latest bid, adds 18,510 sq km of area

Ø SBI, Union Bank to sell NPAs of Rs 2,836 cr this month through e-auctions

Ø UK court extends remand of Nirav Modi, extradition trial from May 1

Ø At 78 lakh tonnes, India’s sugar output falls to lowest in five years

Ø TVS Motor, Hero MotoCorp sales down in December

Ø Royal Enfield sales down 13% at 50,416 units in December

Ø HAL, Wipro 3D sign MoU for metal 3D printing adoption in aerospace

Ø Shriram Transport Finance to raise up to Rs 1000 cr via NCDs

Ø NCLAT asks MCA what constitutes a private company in Tata-Mistry case

Ø MTNL starts ₹23,000 cr asset monetisation through DIPAM

Ø DoT to meet industry on 6 January on Budget-related issues

Ø Finance ministry caps expenditures of ministries in Q4 by 3-8%

Ø China suspends link between Shanghai, London stock exchanges

Ø RBI announces special OMO of Rs 10,000 crore on January 6

Ø Gujarat received Rs 24,012 crore FDI in first half of FY20

Ø JSW Energy inks pact to restructure Rs 752 crore debt on JPVL

Ø Jindal Steel reports strong Q3 steel production

Ø Samsung Electronics chip output at South Korea plant partly halted by blackout

Ø Central banks’ gold buy highest since 1970s

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CBDT from February 1, businesses will be fined Rs 5,000 per day if they fail to accept payments through digital payment facilities, CBDT said in a circular dated December 30. This will be applicable to companies with an annual turnover of over Rs 50 crore. The move is to encourage digital transactions and a ‘less-cash’ economy. A new section (Section 269SU) has been inserted in the Income Tax Act.

MCA has extended due date of filing CRA-4 (Cost Audit Report) for F.Y. 2018-19 without late fees to 29.02.2020. General Circular No.17/20

MCA has extended the due date of filing Form BEN-2 without late fees to 31/03/2020

Link: http://www.mca.gov.in/Ministry/pdf/Circular1_01012020.pdf

W.e.f 11.1.20, e-way bill will not be generated even if GSTR-1 is pending. File all pending GSTR-1 since Jul 17 to Nov 19 by 10.1.20 without late fee.

Gross GST revenue collected in month of Dec, 2019 is Rs. 1,03,184 cr of which CGST is Rs. 19,962 cr, SGST is Rs. 26,792 cr, IGST is Rs.48,099 cr and Cess is Rs. 8,331 cr.

RBI released the final guidelines on constitution of the board of management (BoM) of UCBs with deposit size of Rs 100 crore and above shall constitute BoMs. These guidelines provide special powers to BoMs for exercising oversight over the banking-related functions of UCBs.

ICAI-UDIN: All the Members of ICAI Please note. Time limit for UDIN Generation - 15 Days from 1st Jan 2020.

ICSI has extended the Date for generation of eCSIN from 31.12.2019 to 15.01.2020. Refer https://www.icsi.edu/media/webmodules/Extension_of_ECSIN.pdf

=============>

👉 Union Government promulgated Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 on December 28, 2019. The Ordinance is effective at once. The Ordinance proposes to make amendments in the various provisions Insolvency and Bankruptcy Code, 2016; notably in Sections 5(12), 5(15), 7, 11, 14, 16(1), 21(2), 23(1), 29A, 227, 239, 240 in the Insolvency and Bankruptcy Code, 2016 and insert new section 32A in the code. In this article we shall examine the implications of the said amendments.

👉 Extend deadline for inter-creditor pacts: Banks to RBI - Banks are willing to make the additional 20% provision that breaching the deadline entails but want the window of resolution open until the March 31 financial year end to avoid the value destruction that they say would follow by taking the NCLT route as prescribed by the Insolvency and Bankruptcy Code (IBC).

👉 Reliance Retail shareholders may challenge RIL share swap at NCLT - Many brokers and retail shareholders from the unlisted market have decided to challenge Reliance Industries’ share swap offer for Reliance Retail (RRL) shareholders at the National Company Law Tribunal (NCLT)

Thanks for reading

Thursday, 2 January 2020

02 January 2020 News and Updates

Corporate Snippets on Jan 2

Ø Brexit: PM Johnson vows to take UK out of EU

Ø FDI rises 15 per cent during Apr-Sep to $26 billion

Ø Transactions via FASTag at highway tolls double in Dec

Ø GST revenue mop-up rises to Rs 1.03 lakh cr in Dec

Ø Private cos to generate 7 lakh jobs in 2020: Survey

Ø Muthoot Capital raises Rs 145 crore through securitisation

Ø Income Tax dept examines foreign contribution sought by Tata trust

Ø Tata Motors' domestic sales fall 12 pc to 44,254 units in December

Ø Maruti Suzuki records 2.4% y-o-y rise in car sales during December 2019

Ø India-Mauritius FTA nears finalisation as both sides conclude negotiations

Ø Infra projects hit by cost overruns of more than Rs 4 trn over delays

Ø GNFC gets DoT demand notice for services worth over Rs 15000 crore

Ø ‘India will struggle to post 5% GDP growth in 2020’

Ø Singapore-based strategic investor Technogen invests in FarmERP

Ø Import duty on crude, refined palm oils cut by 5%

Ø SAIL reports 47 per cent growth in December sales

Ø BSL eyes three-fold growth in domestic fabrics business

Ø China cuts banks’ reserve ratio to boost economic growth

Ø Mahindra & Mahindra’s domestic vehicle sales up 1% YoY in Dec’19

Ø Hyundai Motor India December domestic sales down 10% on year

Ø RBI extends NBFC securitization relaxations till 30 June

Ø Park Hotels files draft papers with Sebi for ₹1,000 crore IPO

Ø Private equity, venture capital investments soar 18% to $44.2 billion, may see 15-20 pc growth in 2020

Ø China’s central bank just gave $115 billion to its struggling economy

Ø BSNL finds buried treasure, wants to cash it for Rs 300 crore

Ø Govt. deallocates coal block in Jharkhand allotted for power project

Ø Central banks’ gold buy highest since 1970s

Ø Jet fuel cost up 2.6 pc; non-subsidised LPG price hiked by Rs 19

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👉MCA has extended the due date of filing Form BEN-2 without late fees to 31/03/2020

Link:http://www.mca.gov.in/Ministry/pdf/Circular1_01012020.pdf

👉Linking of PAN with Aadhar has been extended to 31st March, 2020.

👉Sabka Vishwas Scheme, a dispute resolution-cum-amnesty scheme for settling pending disputes of service tax and central excise, date extended by 15 days till January 15, 2020.

👉ICAI-LIC , Term Insurance for members and spouse at very low rate. Premium can be paid online.

https://www.icai.org/post.html?post_id=15416

=======≠======>

Statutory Due dates for January 2020:

07 Jan:

1. TDS/TCS LIABILITY DEPOSIT:- Due date of depositing TDS/TCS liabilities for previous month.

2. EQUALISATION LEVY DEPOSIT:- Equalization Levy is a direct tax, which is withheld at the time of payment by the service recipient where the annual payment made to one service provider (Non Residents only) exceeds Rs. 1,00,000 in one financial year for the specified and notified services.

10 Jan:-

1. GSTR-7 RETURN FILLING DUE DATE:- Due Date for filing GSTR-7 by person liable to deduct TDS under GST for previous quarter.

2. GSTR-8 RETURN FILLING DUE DATE:- GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST.

11 Jan:-

1. GSTR-1 RETURN FILLING DUE DATE:- GST Filing of returns by registered person with aggregate turnover more than 1.50 crores .

13 Jan:-

1. GSTR-6 RETURN FILLING DUE DATE:- Due Date for filing return by Input Service Distributors for previous month.

15 Jan:-

1. TCS Return: - Due Date for payment of Provident fund and ESI contribution for the previous month.

2. PROVIDENT FUND / ESI DUE DATES:- Due date for payment of Provident fund and ESI contribution for the previous month.

18 Jan:-

1. CMP – 08:- Statement-cum-challan to declare the details or summary by Composition dealer for tax payable for the previous quarter.

20 Jan:-

1. GSTR-3B RETURN FILLING DUE DATE: - Due date for filling GSTR – 3B return for Previous month

2. GSTR-5A RETURN FILLING DUE DATE :- Return by person providing online information and database access or retrieval services by a person located outside India made to Non-Taxable persons in India for the previous month

3. GSTR-5 RETURN FILLING DUE DATE:- Due date of GSTR-5 (for Non-resident Taxable person) for the Previous month.

31 Jan:-

1. TDS Quarter Return: - Quarterly statement of TDS deposited for the previous quarter.

2. GSTR – 01:- GST Filing of returns by registered person with aggregate turnover up to 1.50 crores.

3. GSTR-9 RETURN FILLING DUE DATE:-Annual Return to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation center.

4. GSTR-9A RETURN FILLING DUE DATE:-Taxable Persons paying tax under Section 10 of CGST Act, the composition scheme, are required to submit their annual returns in Form GSTR 9A.

5. GSTR-9B RETURN FILLING DUE DATE:-Annual Return to be filed by e-commerce operators who have filed GSTR 8 during the financial year.

6. GSTR-9C RETURN FILLING DUE DATE:-Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C.

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👉🏻CBDT to fine businesses Rs 5,000/day for not using digital payment facilities

(From February 1, businesses will be fined Rs 5,000 per day if they fail to accept payments through digital payment facilities - CBDT)

👇🏻 👇🏻 👇🏻

http://bit.ly/2ub4htj

👉🏻Last date for payment of Membership and COP fee extended - ICAI

(It has been decided to extend the last date for payment of Membership /COP fee for the year 2019-20 up to 31st January 2020 - ICAI)

👇🏻 👇🏻 👇🏻

http://bit.ly/39pqbci

=======≠======>

👉 Sun Pharmaceutical Industries’ plans to consolidate its subsidiaries have hit a roadblock after the National Company Law Tribunal (NCLT) rejected a proposal in which India’s biggest drug-maker sought to demerge an overseas unit. The company had approached the Ahmedabad bench of NCLT for an approval to transfer investment undertakings from Sun Pharma to its Netherlands-based wholly-owned subsidiary. Sun Pharma now has the option to challenge the NCLT ruling in higher courts.

👉 Stocks in the news: Sun Pharma , RCom, YES Bank, Tata Motors and SAIL - Nifty futures on the Singapore Exchange traded 6 points, or 0.50 per cent, lower at 12,239, indicating a gap-down start for Dalal Street. Here are a few stocks which may buzz the most in today’s trade.

👉 The NCLAT has dismissed petitions filed by the Income Tax Department, which raised objection over the approval granted to Reliance Jio Infocomm scheme to hive off its fiber and tower business into two separate units. The Ahmedabad-bench of National Company Law Tribunal (NCLT) had earlier this year granted permission to the composite scheme of arrangement, through which two companies were proposed to be demerged -- Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd.

Thanks for reading

Wednesday, 1 January 2020

1 January 2020 News and Updates

Corporate Snippets on Jan 1

Ø Fiscal Deficit hits 115% of Budget Estimate till Nov

Ø 'Don't allow Chinese Firm Huawei in 5G trials'

Ø DoT to use 5G trials to evaluate Security vulnerabilities

Ø Tata Motors eyes market out performance in FY-21

Ø CAD narrows to 0.9% of GDP in July-September: RBI

Ø One-fourth of Infra spending in Energy Sector alone

Ø FM Sitharaman unveils Rs 102 Trillion Infrastructure plan to boost growth

Ø Govt to fine firms with over Rs 50 Crore revenue for not accepting UPI, RuPay

Ø India's core sector growth contracts 1.5% in November: Govt data

Ø IRDAI slaps Rs 2.18 Crore fine on Hero Insurance Broking for violating norms

Ø Steel output to dip as coking coal imports fall by 14.52% to 3.61 MT

Ø India speeding up FTA talks with Switzerland, Norway, Iceland

Ø NTPC’s installed capacity crosses 58,000 MW

Ø No change in small savings Interest Rates

Ø Drug overpricing: DoP looking at new models for penalty recovery

Ø Thermax bags ₹431 Crore order for setting up FGD systems in Jharkhand

Ø RBI issues norms on setting up board of management in urban cooperative banks

Ø IL&FS to address major portion of outstanding debt by July, says Uday Kotak

Ø *Donald Trump says US-China Trade Deal will be signed on 15 January*

Ø Government extends Amnesty Scheme for pre-GST era taxes by 15 days

Ø Government cuts expenditure limit for March quarter on revenue concerns

Ø Government mulls single application form, investment clearance cell to woo investors

Ø Uber’s Profit up 63% in India even as expenses grew higher

Ø TRAI issues draft recommendations on network testing norms for wireline services

Ø SENSEX tanks 304 points on last day of 2019; Nifty drops below 12,200

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CBIC extends Sabka Vishwas (Legacy Dispute Resolution) Scheme

Read more at: https://www.taxscan.in/cbic-extends-sabka-vishwas-legacy-dispute-resolution-scheme/42238/

==============>

ICAI proposes Twelve New Accounting Standards for Local Bodies

Read more at: https://www.taxscan.in/icai-twelve-new-accounting-standards-local-bodies/42234/

==============>

GST applicable on Free Transfer of Assets to Landlord on Vacation of Leased Premises: AAR [Read Order]

Read more at: https://www.taxscan.in/gst-applicable-transfer-assets-landlord-vacation-leased-premises/42284/

==============>

Supply of Accommodation Services to SEZ units is for Authorized Operations, Covered Under ‘Zero-Rated Supplies’: AAR [Read Order]

Read more at: https://www.taxscan.in/supply-accommodation-services-sez-units-zero-rated-supplies/42256/

==============>

CBIC extends Sabka Vishwas (Legacy Dispute Resolution) Scheme

Read more at: https://www.taxscan.in/cbic-extends-sabka-vishwas-legacy-dispute-resolution-scheme/42238/

==============>

ICAI proposes Twelve New Accounting Standards for Local Bodies

Read more at: https://www.taxscan.in/icai-twelve-new-accounting-standards-local-bodies/42234/

==============>

GST applicable on Free Transfer of Assets to Landlord on Vacation of Leased Premises: AAR [Read Order]

Read more at: https://www.taxscan.in/gst-applicable-transfer-assets-landlord-vacation-leased-premises/42284/

==============>

Supply of Accommodation Services to SEZ units is for Authorized Operations, Covered Under ‘Zero-Rated Supplies’: AAR [Read Order]

Read more at: https://www.taxscan.in/supply-accommodation-services-sez-units-zero-rated-supplies/42256/

==============>

Tuesday, 31 December 2019

31 December 2019 News and Updates

Wish you a very Happy New Year 🎈🎁

Corporate Snippets on Dec 31, 2019

Ø RBI may tighten lending norms for co-op banks

Ø Rs 1.12 lakh crore paid as IGST refunds to exporters

Ø PMO proposes waiving carbon tax on coal

Ø Govt. might breach fiscal deficit target in FY20: Report

Ø Reliance, BP pay $36 mn for exit of Niko in KG block

Ø DHFL: Resolution professional shares plan with lenders

Ø Huawei gets Govt's approval to participate in 5G trials in the country

Ø Billionaire Hinduja brothers set to bid for Jet Airways by Jan 15: Report

Ø Cold chain firm Snowman Logistics buy diversifies Adani Ports portfolio

Ø Govt. working on strategy on import regulation of non-essential items

Ø RBI buys Rs 10,000 cr worth long-term govt securities in second special OMO

Ø NTPC to shell out ₹15,000 crore to buy out NEEPCO, THDCIL from Centre

Ø India improves three positions on SDG Index

Ø SBI cuts external benchmark-based rate by 25 bps

Ø HPCL, EESL to set up public charging infrastructure for National Electric Mobility Programme

Ø Coal India chalks out strategy to meet 660 MT production

Ø QIP fundraising doubles to ₹35,238 crore, backed by large deals

Ø Tata group stronger, more resilient and future ready: N Chandrasekaran

Ø Govt. to review free trade agreements, says Piyush Goyal

Ø Venture Catalysts-backed 54 startups invested ₹500 crore in 2019

Ø Record nine startups get unicorn status amid shift in investor sentiment

Ø Oil regulator PNGRB seeks consultant to rationalise gas pipeline tariff

Ø India’s exports may touch $330-340 billion this fiscal: FIEO

Ø Vodafone Idea mobile customer base drops by 3.63 crore in November

Ø NPA crisis not over yet: SBI may see corporate bad loans rise in second half of FY 20

Ø Loans to realtors rise after 2018 crisis, double in last four years

Ø Bad loans to rise in 2020, says RBI

Ø Indian pharma 'sunrise' segment, year 2020 prognosis positive for healthcare sector

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Assessment of dead person :-

Hon’ble Mumbai High Court in the case of Sumit Balkrishna Gupta. v.Assistant Commissioner of Income-tax, Circle 16(2), Mumbai 103 taxmann.com 188 held that the notice issued on a dead person is invalid unenforceable in law. We extract the relevant part of the order of Hon’ble Bombay High court in Sumit Balkrishna Gupta supra which reads as under:

“7. The issue of a notice under Section 148 of the Act is a foundation for reopening of assessment. The sine qua non for acquiring jurisdiction to reopen an assessment is that such notice should be issued in the name of the correct person. This requirement of issuing notice to a correct person and not to a dead person is not a merely a procedural requirement but is a condition precedent to the impugned notice being valid in law. Thus, a notice which has been issued in the name of the dead person is also not protected either by provisions of Section 292B or 292BB of the Act. This is so as the requirement of issuing a notice in the name of correct person is the foundational requirement to acquire jurisdiction to reopen the assessment. This is evident from Section 148 of the Act, which requires that before a proceeding can be taken up for reassessment, a notice must be served upon the assessee. The assessee on whom the notice must be sent must be a living person i.e legal heir of the deceased assessee, for the same to be responded. This in fact is the intent and purpose of the Act. Therefore, Section 292B of the Act cannot be invoked to correct a foundational / substantial error as it is meant so as to meet the jurisdictional requirement. Therefore, both the impugned notice dated 29.3.2018 and the impugned order dated 13.11.2018 are quashed and set aside. It is made clear that this order will not prohibit the Revenue from issuing a fresh notice for reassessment, if requirement of Sections 147/ 148 of the Act are satisfied, including the limitation period therein.”

[30/12, 9:51 pm] CA Rohit Jaiswal: The due date for linking of PAN with Aadhaar as specified under sub-section 2 of Section 139AA of the Income-tax Act,1961 has been extended from 31st December, 2019 to 31st March, 2020.

Notification no.107 of 2019 dated 30/12/2019 issued by CBDT.

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👉 The Reserve Bank of India-appointed administrator of the crippled Dewan Housing Finance Ltd (DHFL) called for a meeting of its creditors for the first time on Monday after the mortgage lender was admitted for insolvency proceedings.

The third-largest pure play mortgage player is the first non-banking financial company or housing finance company to face the corporate insolvency resolution process.

👉 Around half of the claims under the Insolvency and Bankruptcy Code (IBC) were settled in 2018-19, the latest RBI report showed, helping banks recover stressed assets more quickly. Against Rs 1.66 lakh crore claims involved under IBC, the recovery was Rs 70,819 crore. Through the Sarfaesi mechanism, it stood at Rs 41,876 crore. Recoveries through DRTs and Lok Adalats were Rs 10,575 crore and Rs 2,816 crore, respectively.

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Today is last day of 2019 and also for some statutory compliances -

1. Income Tax: 31.12.2019 is the due date to file Income tax Return (ITR) with Late Fees of INR 5,000 for income earners exceeding INR 5,00,000.

2. CBDT has extended the due date to pay Advance Tax (IIIrd Installment) from 15.12.2019 to 31.12.2019 for North Eastern States.

3. GST: 31.12.2019 is the due date to file application for Sabka Vishwas Scheme, 2019 for resolution of pending Excise Duty and Service Tax.

4. Bonus Payment due date : 31.12.2019 is the due date to pay Bonus for FY 2018-19 as per Payment of Bonus Act.

5. MCA: 31.12.2019 is the due date to file MGT-7 (Annual Return) for the year ended March 31, 2019.

6. MCA: 31.12.2019 is the due date to hold FIRST AGM in case of Companies incorporated between 01.01.2018 to 31.03.2018.

7. MCA: 31.12.2019 is the due date to hold EXTENDED AGM in case extension of 3 months have been taken by any Company.

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Some relaxation :

The Last date for complying with the CPE hours requirement for the Calender Year 2019 and for the Block 2017-2019 has been extended from 31,Dec 2019 to 31, Jan 2020.

Due date for linking PAN with AADHAAR extended to 31st March 2020.

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👉🏻Extension of last date of filing of CRA-4 (cost audit report) for FY 2018-19

( Last datc of filing of CRA-4 (cost audit report) for all eligible companies for the FY 2018-19, without payment of additional fee, has been further extended till 29.02.2020)

👇🏻 👇🏻 👇🏻

http://bit.ly/39ryggJ

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No anticipatory bail, GST violators can be arrested without FIR, clarifies SC

https://timesofindia.indiatimes.com/india/no-anticipatory-bail-gst-violators-can-be-arrested-without-fir-clarifies-sc/articleshow/69569233.cms?utm_campaign=andapp&utm_medium=referral&utm_source=native_share_tray

SEBI has notified the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2019 which shall come into force on the date of their publication in the Official Gazette i.e 26-12-2019.

Monday, 30 December 2019

30 December 2019 News and Updates

The third-largest pure play mortgage player is the first non-banking financial company or housing finance company to face the corporate insolvency resolution process.

👉 Markets regulator SEBI on Friday imposed a penalty of Rs 8 lakh on three non-independent directors of ABG Shipyard for misleading the company's stakeholders by approving false and mis-stated financial results.

The markets watchdog has levied a fine of Rs 3 lakh each on Arun Pathak and Syed Abdi and Rs 2 lakh on Dhananjay Datar.

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No service Tax or VAT on Society, Club or Company

👩🏻‍🎓 Supreme Court in case of State of West Bengal & Ors Vs Calcutta Club Ltd vide Civil Application no 4184 of 2019 has held that No service Tax or VAT on Society, Club or Company registered u/s 25. This decision has wide impact on GST applicability on Society or Club.

👨🏻‍🎓Supreme Court has observed that The expression “unincorporated associations” would include persons who join together in some common purpose or common action – see ICT, Bombay North, Kutch and Saurashtra, Ahmedabad v. Indira Balkrishna (1960) 3 SCR 513 at page 519-520. The expression “as the case may be” would refer to different groups of individuals either bunched together in the form of an association also, or otherwise as a group of persons who come together with some common object in mind.

👩🏻‍🎓Whichever way it is looked at, what is important is that the expression “body of persons” cannot possibly include within it bodies corporate.

👨🏻‍🎓Further, it has observed that We are therefore of the view that the Jharkhand High Court and the Gujarat High Court are correct in their view of the law in following Young Men’s Indian Association (supra). We are also of the view that from 2005 onwards, the Finance Act of 1994 does not purport to levy service tax on members’ clubs in the incorporated form.

The appeals of the Revenue are, therefore dismissed.

👩🏻‍🎓 Writ Petition (Civil) No.321 of 2017 is allowed in terms of prayer (i) therein. Consequently, show-cause notices, demand notices and other action taken to levy and collect service tax from incorporated members’ clubs are declared to be void and of no effect in law.

👉December 31, 2019 upcoming Due Dates :

- Mandatory to link PAN Card-Aadhaar.

- ITR with Late Fees of Rs. 5000 for Income exceeding Rs. 5 lacs.

- Sabka Vishwas Scheme, 2019 for resolution of pending Excise Duty and Service Tax.

- MGT-7 for the year ended March 31, 2019.

👉ICAI: Payment of Membership/COP Fees for the year 2019-20 upto to 31st December, 2019 , link to pay

https://www.icai.org/new_post.html?post_id=15946

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👉 It wasn’t a one-way street for Indian finance. Dewan Housing went into bankruptcy and NBFCs in general struggled. State -run banks, burdened by bad loans, are not out of the woods yet

👉 IBC ordinance that shields buyers from prior lapses passed.

👉 The NCLAT has dismissed petitions filed by the Income Tax Department, which raised objection over the approval granted to Reliance Jio Info. Comm. scheme to hive off its fiber and tower business into two separate units. The Ahmedabad-bench of National Company Law Tribunal (NCLT) had earlier this year granted permission to the composite scheme of arrangement, through which two companies were proposed to be demerged -- Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd.

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👉 Bharat Broadband Nigam Limited, a state-run infrastructure firm that is setting up optical fibre network under BharatNet Project, has paid around Rs 770 crore in advance to BSNL to help the telecom firm clear dues of vendors involved in the project. The debt-ridden state-run telecom firm had requested BBNL to pay Rs 1,033 crore earlier this month to clear the dues of vendors engaged in BharatNet project.

👉 Positive developments on the US-China trade deal front and fund infusion in some PSU banks by the government boosted sentiment on Dalal Street on Friday. Stocks benchmarks Sensex and Nifty were on track to snap three-day losing run.

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👉🏻RBI directs large co-op banks to report exposures above Rs 5 Cr

(RBI has directed large cooperative banks to report all exposures of 5 crore rupees and more to the Central Repository of Information on Large Credits (CRILC)

👇🏻 👇🏻 👇🏻

http://bit.ly/37iv1Gi

👉🏻SBI to launch OTP-based ATM cash withdrawal from Jan 1

( From January, SBI customers will be able to make ATM withdrawal above Rs 10,000 only after an OTP verification during 8 PM to 8 AM.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2F5yEmV

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CBDT instructs all CITs(A) to dispose of more than 20,000 Appeals which are PENDING for more than 5 years, on or before March-31-2020.

Surat ITAT: Payment made by resident Indian company to a foreign national (hired as ‘Technical Advisor’ in personal capacity) was held to be Fee for Included Services (under Article 15 of India Korea DTAA) and not Fee for Technical Services (under Article 13 of India Korea DTAA). Such payment was held to be non-taxable in India and accordingly not liable to TDS. [J.Korin Spinning Pvt. Ltd. vs ITO (Intll. Tax) ITA No. 2734/AHD/2016] (CA Deepankur (9891636395),

Gst notifications and order issued on 26-12-2019: Not no 74- Gstr 1 late fees waived for Period July 17 to Nov 19 if filed between 19-12-19 to 10-1-20; clarification awaited for Gstr 1s filed late but prior to 19-12-19

Not. no 75- restrictions on use / Debit of electronic credit ledger in case of non existent or fraudulent parties. Not. no 76- Gstr 1 date extended to 31-12-19 for Nov 19 for north eastern states with more than 1.5 crores turnover.

Not no 77- Gstr 3B date for Nov 19 extended to 31-12-19 for north east states.

Not no 78- gstr 7 date extended to 25-12-19 for north east states. Order no 10- extension of annual return date to 31-01-2020. cajatinminocha.com/Image/ECL_Debit_Restrictions.pdf

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Delhi HC holds Circular dated 25.09.2019 not in violative of Sabka Vishwas Scheme, 2019 nor any relevant Act [Read Judgment]

Read more at: https://www.taxscan.in/delhi-hc-circular-violative-sabka-vishwas-scheme-2019/41433/

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2 held for ‘posing as CBI chief, threatening Income Tax officials’:

READ MORE- https://www.gststation.in/2-held-for-posing-as-cbi-chief-threatening-income-tax-officials/

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Dalmia Power Limited vs. ACIT (Supreme Court)

S. 139(5)/ 170:

The consequence of amalgamation is that the amalgamating companies lose their separate identity and cease to exist. The successor is obliged u/s 170 to file a revised return to reflect the effect of the amalgamation. The fact that the revised return is filed after the due date specified in s. 139(5) is irrelevant as the scheme approved by the NCLT provides for it. The assessee is also not required to seek condonation of delay u/s 119(2)(b) (Dalmia Power 418 ITR 242 (Mad) reversed)

The more advisable course from the point of view of the Revenue would be to make one assessment on the Transferee Company taking into account the income of both of Transferor or Transferee Companies and also to make separate protective assessments on both the Transferor and Transferee Companies separately. There may be a certain practical difficulty in adopting this course inasmuch as separate balance-sheets may not be available for the Transferor and Transferee Companies. But that may not be an insuperable problem inasmuch as assessment can always be made, on the available material, even without a balance-sheet. In certain cases, best judgment assessment may also be resorted to

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👆A Division bench of the High Court of Madras has upheld the validity of the 'proviso' to Section 167(1)(a) of the Companies Act 2013. It relied on the judgment passed by the Hon'ble Delhi High Court in Mukut Pathak & Ors Vs. Union of India, WP.No.9088 of 2018. The High Court held that the proviso to Section 167(1)(a) is neither manifestly arbitrary nor does it offend any of the fundamental rights guaranteed under the Constitution of India.

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Important IT change for companies having turnover more than Rs 50 crore effect from 1.11.2019

Section 269SU of the Income-Tax Act, 1961, applicable with effect from 1 November 2019, makes it mandatory to accept payments (ie provide facility to the customers for accepting payment) in prescribed electronic modes, in addition to existing modes, for entities having turnover exceeding INR 50 Crore.

Any business entity/person having business turnover/gross receipts exceeding INR 50 Crore in FY 2018-19, please note the following changes brought in to effect from 1st Nov 2019.

Failure to provide such facility will be liable to a penalty of five thousand rupees, for every day during which such failure continues.

Que: What does it mean?

Ans: Please ensure that you print your preference to accept payments from customers/debtors/payees in electronic mode by furnishing your E Mode payment details on your invoices / contracts / agreements / order acceptance letter etc.

Que: What is prescribed Electronic Mode in addition to existing electronic mode?

Ans: At the outset, if you strictly encourage payments by payees to you to your bank accounts by NEFT, RTGS, IMPS as mentioned above it is reasonable compliance. In addition, please try to arrange for E Modes like BHIM UPI, UPI-QR Code, Aadhaar Pay, Payment Gateways of banks / Financial Institutions / Payment Settlement Systems etc.

Que: Despite arranging NEFT/RTGS/IMPS payments, if the customer comes and hands over a cheque /Demand Draft, what should be done?

a) Please advise them to use E Mode for making payments to you

b) If they insist for cheque/DD payment only, please get a declaration signed duly by him/them on his/their commercial letter head if any (refer their Aadhar No and valid Mobile phone No too) stating the following:

> I / We do not have net banking facility or any other E Mode at the time of payment / for the time being / always

> I / We have no option but to pay by mode other than E Mode, though you insisted for payment by E Mode only

Que: Despite making all possible efforts and arrangements, in case a few payments are received in other than E-mode, will the penalty of Rs 5000 per day, be applied automatically?

Ans: It is not an indiscriminate and mechanically imposed penalty. You can prove your genuineness with necessary evidences and avoid such penalties.

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Company Law / M&A Update:

Reliance Jio Infocomm Limited Demerger Scheme: National Company Law Appellate Tribunal dismisses objections raised by the Income Tax department

The proposed scheme of demerger proposed transfer of certain assets from Reliance Jio Infocomm Limited into two new entities - Jio Digital Fibre Private Limited and Reliance Jio Infratel Private Limited.

The Income tax department objected to the demerger scheme on the following grounds:

Firstly, conversion of redeemable preference shares by their cancellation and conversion into loan would substantially reduce Reliance Jio Infocomm's profitability, acting as a tool for it to avoid and evade taxes.

Secondly, the demerger would result in reduction of profitability and bring down the dividend distribution tax, thus acting as a way to avoid taxes. The scheme did not fulfill the requirements of demerger under the Companies Act, 2013.

What did the NCLAT say ?

NCLAT dismissed the appeal citing that the IT department failed to place any evidence to support its objections and had the liberty to take action if at all the demerger scheme results in a tax evasion

Source: NCLAT Order dated December 21, 201

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# CBIC: Constitution of Grievance Redressal Committees at Zonal/State level for redressal of grievances of taxpayers on GST related issues.

http://cbic.gov.in/htdocs-cbec/gst/Instruction_Grievance_Redressal_Committee_GST.pdf

# CBIC Notification No. 74/2019-Central Tax dt. 26-12-2019 : Seeks to waive late fees for non- filing of FORM GSTR-1 from July, 2017 to November, 2019.

http://cbic.gov.in/htdocs-cbec/gst/notfctn-74-central-tax-english-2019.pdf

# CBIC Notification No. 75/2019-Central Tax dt. 26-12-2019 : Seeks to carry out changes in the CGST Rules, 2017

http://cbic.gov.in/htdocs-cbec/gst/notfctn-75-central-tax-english-2019.pdf

# Income Tax : The time limit for submitting response to Notice u/s 142(1) issued up to 24th December, 2019 by National e-Assessment Centre has been extended till 10th January, 2020 or the time limit mentioned in the Notice whichever is later.

https://www.incometaxindiaefiling.gov.in/home

# Upcoming Due Date : 31-12-2019

- Mandatory to link PAN Card-Aadhaar.

- ITR with Late Fees of Rs. 5000 for Income exceeding Rs. 5 lacs.

- Sabka Vishwas Scheme, 2019 for resolution of pending Excise Duty and Service Tax.

- MGT-7 for the year ended March 31, 2019.

===========>

Important IT change for companies having turnover more than Rs 50 crore effect from 1.11.2019

Any business entity/person having business turnover/gross receipts exceeding INR 50 Crore in FY 2018-19, please note the following changes brought in to effect from 1st Nov 2019.

Failure to provide such facility will be liable to a penalty of five thousand rupees, for every day during which such failure continues.

Que: What does it mean?

Que: What is prescribed Electronic Mode in addition to existing electronic mode?

Que: Despite arranging NEFT/RTGS/IMPS payments, if the customer comes and hands over a cheque /Demand Draft, what should be done?

a) Please advise them to use E Mode for making payments to you

> I / We do not have net banking facility or any other E Mode at the time of payment / for the time being / always

> I / We have no option but to pay by mode other than E Mode, though you insisted for payment by E Mode only

Que: Despite making all possible efforts and arrangements, in case a few payments are received in other than E-mode, will the penalty of Rs 5000 per day, be applied automatically?

Ans: It is not an indiscriminate and mechanically imposed penalty. You can prove your genuineness with necessary evidences and avoid such penalties.

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