24 November 2019 News and Updates

Corporate Snippets on Nov 24

Ø SEBI tightens disclosure norms on loan defaults; shorten timeline for Rights issues

Ø MFs will join DHFL resolution process: Sebi chief

Ø Bank credit grows by 8.07%, deposits 9.92%: RBI data

Ø Housing projects worth $66 bn face IBC proceedings

Ø Govt mulls forex loan at cheaper rate to exporters: Goyal

Ø BSNL-MTNL merger may be completed in 2 yrs: Govt.

Ø Govt. clears Code on Industrial Relations Bill; retrenchment norms not eased

Ø Cabinet approves strategic sale of Govt. stake in BPCL, 4 other CPSEs

Ø Subhash Chandra to sell 16.5% stake in Zee, become minority shareholder

Ø Tariff hike may cause slower net user addition for telcos: BofA-ML report

Ø Piramal gets waiver on debt contract after offering to pay Rs. 15 bn early

Ø Telecom, aviation, auto sectors report highest losses in Q2

Ø Better rainfall led to lower power demand in October: Power Ministry

Ø CIL to develop 55 new coal mines in next 5 yrs: Minister

Ø Company continuously working on a resolution plan: Suzlon

Ø ECU Worldwide buys controlling stakes in Hong Kong and Singapore logistics firms

Ø Singapore’s Cube wins highways bid

Ø Cabinet approves two-year moratorium on spectrum payments for telcos

Ø Tata Motor's JLR to face challenging times even in next fiscal: Moody's

Ø Asia needs $800 billion over the next decade to feed itself

Ø Homebuyers have filed over 1,800 cases under insolvency law: Govt.

Ø NCLAT extends deadline for implementation of Patanjali's bid for Ruchi Soya

Ø Central American nation Costa Rica seeks Preferential Trade Agreement with India

Ø China cuts new benchmark rate to boost economy

Ø NCLAT rejects DBS Bank’s plea challenging distribution of funds from Ruchi Soya resolution plan

Ø India appeals against WTO panel ruling on export incentive schemes 

Ø Reserve Bank of India supersedes DHFL board

Ø Rupee settles 10 paise lower at 71.81 against US dollar

Ø Moody's assigns Baa1 rating to ONGC's proposed senior unsecured notes

Ø Telcos have to pay Rs 1.47 lakh cr dues; no proposal to waive off penalty: Prasad

Ø Govt. plans incentives for 324 foreign manufacturers

Ø India appeals against WTO's ruling on export incentives

Ø AIIB to invest upto $2.5 bn in urban transport projects

Ø DoT asks telcos to share broadband infra in Govt. bldgs

Ø Voda Idea, Airtel lose over 49 lakh users in Sep: TRAI

Ø PSBs reported frauds of over Rs. 95,700 cr in Apr-Sep

Ø Vodafone Idea presses for Rs. 7,000 cr tax refund

Ø MF industry folio influx hits 3-month high in Oct

Ø Phone makers seek clarity on export duty relief scheme

Ø Cabinet may consider proposal to lower Govt. stake in CPSEs to less than 51%

Ø Govt has no plans to revise fiscal deficit target, says MoS Finance Thakur

Ø Allahabad Bank's merger with Indian Bank gets in-principle Govt. nod

Ø RBI unions want Govt. to raise deposit insurance cover to Rs. 10 lakh

Ø RBI slaps Rs 2.50 crore fine on Bank of Baroda over non-compliance

Ø Patanjali's Apr-Sep revenue at Rs. 3,562 cr, highest for a half-year period

Ø India quit RCEP in national interest: Goyal

Ø India vulnerable to oil price, capital flows shocks: YV Reddy

Ø Jet Airways’ bidder Synergy gets extension till December 16

Ø Steel Ministry proposes setting up integrated steel hubs

Ø MRPL makes first export shipment of BS-VI-grade diesel

Ø Lupin launches generic hypokalemia drug in US

Ø Dilip Buildcon bags Rs. 2,123 cr order from Coal India arm

Ø Losses incurred by 71 central PSUs during FY18 rise to ₹31,261 cr

Ø ICICI Bank may raise ₹20,000 crore aiming to fill credit gap left by NBFCs

Ø 15 foreign banks keen to open branch in India

Ø Scrappage policy hits another roadblock after NITI Aayog flags issues

Ø Reserve Bank likely to refer DHFL, Altico to bankruptcy court

Ø Employment growth slowed down in last two years: Report

Ø Supreme Court stays SAT order that quashed SEBI ban on Price Waterhouse

Ø Govt. mulls setting up dedicated cell to promote agri startups

Ø Central Bank of India reports higher Rs. 6,430 cr loss for FY19 due to NPA divergence

Ø RIL achieves another feat, first firm to hit Rs 9.5 lakh cr m-cap mark

Ø Financial crunch due to Centre's failure to release GST dues

Ø Gold rises Rs. 328, silver prices jump Rs. 748

Ø Passenger vehicle retail sales jump 11 pc in Oct on festive demand: FADA

Ø Private banks stay in profit, PSBs return to losses

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Important GST Update: 

CBIC vide circular no 126/45/2019-GST dated 22.11.2019 clarified the doubt in regards the rate of tax on job work services to be charged by the job worker.

👉 CBIC on the outcome of GST council meeting reduced the rate of tax on job work services to 12% with affect from 01.10.2019, which resulted in a doubt as the rate on job work services also had a residuary tax rate under item (iv) of heading 9988 stating Manufacturing services on physical inputs owned by other no anywhere mentioned shall be charged at 18%. Hence charging 12% or 18% on such services was the point of conflict.

Simplification : CBIC clarified that job work as defined under the law is process of job work on inputs belonging to REGISTERED PERSONS.

Hence if the principal is unregistered and getting the job work done from any job worker then such services shall not be covered under the scope of job work service and reduced tax rate i.e 12% shall not be applicable.

Hence, If the job worker is providing the job work services to registered person, tax at 12% has to be charged else 18%

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👉🏻Income Tax dept launches web portal for exchange of information

(The tax department has launched a portal that will provide information, including about procedures, related to automatic exchange of information under common reporting standard.) 

👇🏻 👇🏻 👇🏻

http://bit.ly/37vQ5KA

👉🏻RBI mulling new rules on corporate governance; wants banks to disclose more

(RBI is looking at introducing new rules on corporate governance for banks in sync with global ones, and would also like lenders to disclose more)

👇🏻 👇🏻 👇🏻

http://bit.ly/2OG4vzd

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👉NCLAT order may pave the way for Reliance Industries (RIL) to delist Alok Industries and take it private.

👉NCLT can no longer co-opt the role of the CoC by mandating how proceeds should be distributed.

👉Former Bhushan Power and Steel Ltd chief Sanjay Singal arrested by ED in connection with its probe in a multi-crore money laundering case linked to an alleged bank loan fraud.

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1. Delhi HIgh Court directed IiTAT to Deal with cases in which there is stay of Tax recovery on higher priority: Case Name : PCIT Vs Nokia Solutions & Networks India Pvt. Ltd. (Delhi High Court)

2. Income Tax  Section 68 additions cannot be made merely on doubts, conjectures or surmises. Case Name : ITO Vs. Ambika Metalchem Impex P. Ltd. (ITAT Mumbai)

3. CBIC to act tough following lower-than-expected tax mop-upThe Goods & Services Tax (GST) Administration plans to act tough with non-filers of returns and cancel their registration. It has also decided to update the progress made in this regard on a daily basis. 

4. GST CLARIFICATION ON JOB WORK : 12% GST is levied only job work services which are provided by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, 18% GST is levied only on such services which are carried out on physical inputs (goods) which are owned by persons other than those registered

5. Smaller businesses with annual turnover of less than Rs 5 crore are hit by the recent change in GST rule, which restricts the amount of input tax credit (ITC) a business can claim. The rule that was amended last month mandates that ITC claims can only be fully availed if all the relevant invoices are uploaded by the suppliers in its GSTR-1 (the returns where all the outwards sales are detailed). 

6. ROC Annual Return Filing extended due Date -e-forms AOC-4, AOC (CFS) AOC-4 XBRL upto 30.11.2019 and -e-form MGT-7 upto 31.12.2019, by companies without levy of additional fee.

7. Sebi approved stricter disclosure norms for listed companies on loan defaults and revised its regulations for portfolio managers as well as for rights issue of shares.

8. Sebi also extended the Business Responsibility Report (BRR) requirement to top 1,000 companies, from 500 currently.

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Rectified TRAN-1 Form can be Filed for Distribution of Accumulated Credit of Pre-GST Regime: Kerala HC [Read Judgment]

Read more at: https://www.taxscan.in/rectified-tran-1-form-filed-distribution-accumulated-credit-pre-gst-regime-kerala-hc/39945/

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👉NCLT orders insolvency process for low-cost carrier Air Costa.

👉NCLAT gives 30 days more to Sterling Biotech promoters to settle dues.

👉1,821 cases filed by homebuyers pending with NCLT. 

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Finance Commission chairman NK Singh stressed that the government must complete unfinished tax reforms to improve the woefully inadequate tax buoyancy witnessed in the past one-and-a-half years, while advocating that simple direct tax code should be implemented soon and that the GST Council ought to go to the drawing board to address compliance issues.

No Arrest of Chartered Accountant or Advocates who had filed Returns but are not beneficiary or part of fraud without any Corroborative Evidence: Punjab & Haryana High Court. Read more at: https://www.taxscan.in/no-arrest-chartered-accountant-advocates-filed-returns-beneficiary-fraud-corroborative-evidence-punjab-haryana-hc/39845/

Delhi High Court  issues notice in challenge to National Financial Reporting Authority's power to investigate, punish Chartered Accountants. https://bar.app.link/fktWkxUCJ1

DHFL may become the first NBFC to go under NCLT insolvency proceedings. Follow the link to know more http://www.cnbctv18.com/finance/dhfl-may-become-the-first-nbfc-to-go-under-nclt-insolvency-proceedings-4724361.htm

Hon’ble  Madurai Bench of MADRAS High court got convinced and directed the revenue to issue GST refund within 6 weeks. Court pronounced if processing of refund is not possible through system then process the same manually.

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👉🏻CBDT notifies New Form no. 16D & 26 QD for TDS Payment & Retun

(Amendment of Income-tax Rules, 1962 for notifying Challan-cum statement for the purposes of section 194M of the Income-tax Act, 1961)

👇🏻 👇🏻 👇🏻

http://bit.ly/2rTCiNs

👉🏻HC issues notice to Centre over input tax credit denial to restaurants

(Gujarat High Court has issued a notice to the Centre seeking to know why the option of input tax credit under GST regime is not available for restaurants)

👇🏻 👇🏻 👇🏻

http://bit.ly/2pv9HNE

👉🏻CBDT seeks to widen net for appointment of members, makes younger officers eligible for post

(CBDT is seeking to widen the net for the appointment of members to its board by inviting applications from relatively younger officers.) 

👇🏻 👇🏻 👇🏻

http://bit.ly/35sUoEP.

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👉🏻Cabinet approves Taxation Laws (Amendment) Bill, 2019

(Union Cabinet has approved the proposal for introducing the Taxation Laws (Amendment) Bill, 2019 in order to replace the Ordinance.)

👇🏻 👇🏻 👇🏻

http://bit.ly/2O4cvLg

👉🏻Marco Mendicino appointed new Canadian immigration minister

(Prime Minister Justin Trudeau has named Marco Mendicino as Canada’s next Minister of Immigration. Refugees and Citizenship (IRCC)

👇🏻 👇🏻 👇🏻

http://bit.ly/2QBcVKD 

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GST: Economists must share some blame for the current slowdown:

READ MORE- https://www.gststation.in/gst-economists-must-share-some-blame-for-the-current-slowdown/

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👉NCLAT denies RIL waiver to delist Alok Industries.

👉The Forum for People's Collective Efforts (FPCE) has urged the prime minister not to bar the homebuyers from approaching NCLT.

👉NCLAT rejects Singapore-based DBS Bank’s claim for bigger share of Ruchi Soya resolution proceeds.

👉RBI takes over DHFL board, appoints an administrator in its place, in a step towards referring the debt-laden mortgage lender to a bankruptcy court. DHFL is set to become the first non-bank lender to be referred to the NCLT.

👉Delhi HC issues notice in challenge to IBBI Order imposing penalty on Bhushan Steel RP for violation of IBC.

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GST –

Petitioner submitted that by virtue of the notification dated 14th November, 2017 rate  of tax for the restaurant sector has been fixed at 2.5 % without any input tax credit and option to pay 18% GST with full ITC has been removed for the restaurant sector - Petitioner case that in case of other services, there is an option to pay a higher rate of tax and avail of input tax credit, whereas in case of the restaurant sector, such option has not been granted which amounts to total denial of input tax credit – challenge to subject Notification on the ground that the provision whereby the right of the petitioner is restricted is introduced by virtue of a notification and is not prescribed by the rules. Moreover, under sub-section (1) of section 16 of the CGST Act, a condition or a restriction can be imposed; however, it is not permissible to deny/extinguish the right to avail of credit thereunder –

HELD - issue notice, returnable on 11th December 2019. In the meanwhile, the respondent shall consider and report to this court as to what amount can be taken to secure to the petitioners the option to discharge GST either at the rate of 18% with full input tax credit or at the rate of 5% without input tax credit.       

                       

ST - It cannot be said that salary of guards, PF, ESI are reimbursable expenditures to be deducted from gross value of security service: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM3

CX - Commissioner (A) is required to deliberate upon point which has been raised in the appeal by appellant and record his findings, which has not been done: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMz

ST - Tribunal, being only an interpreter of notification, cannot rewrite notification by introducing any extraneous words into same - Amending notification 4/2015-ST is prospective: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM2

CX - Benefits of a claim under EXIM Policy as implemented through a specific notification under the taxing statute and notification, however akin it may be, is not a permissible substitution: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMx

ST - Sale deed was executed after occupation certificate was obtained, no service tax: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM1

CX - Correctness of statements can only be tested if same is processed through cross-examination by appellant who are affected by it - non-affording of opportunity of cross-examination is violation of principles of natural justice: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzMy

ST - Legal Consultancy Service - Notification 25/2012-ST does not use word 'business turnover' instead has used word 'business entity with a turnover', hence, it is clear that entire proceeds of business entity has to be considered: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MzM0

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Judge is duty bound to pass the order correctly by applying the correct law

If a Judge of a subordinate court fails to conduct himself in a manner expected of the Judicial Officer, it is not only bound to lower the dignity and majesty of the Court but it may even tend to shake the faith and trust of the litigant who is the most important stake holder in the justice dispensation system.

Read full article at : https://dasgovernance.com/2019/11/22/judge-is-duty-bound-to-pass-the-order-correctly-by-applying-the-correct-law/

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# ICAI Membership Fees: The extended due date for payment of ICAI Membership fee including COP fee is upto 30th November, 2019. 

# Use this link to pay membership fees if any issues in SSP (Annual Membership Fees (2019-2020)

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

# ICAI: GST Conclave at Hotel Le-Meridien, Delhi on 23 Nov 2019 10am-5pm.Register at https://bit.ly/2KxlVwN. NIRC annual group members-No fee.

# GST Latest: Watch full video on New ITC Rule of 20%, Relaxation & Changes in GSTR 9 and 9C

https://youtu.be/-HiSL64s4Vo

# Cabinet approves Taxation Laws (Amendment) Bill, 2019 - The Union Cabinet has approved the proposal for introducing the Taxation Laws (Amendment) Bill, 2019 in order to replace the Ordinance.

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👉🏻PSU Banks report fraud of more than Rs. 95700 Cr in 6 months

(PSBs reported 5,743 incidents of fraud involving a total amount of Rs 95,760.49 crore from April 1 to September 30 (based on the date of reporting)

👇🏻 👇🏻 👇🏻

http://bit.ly/2XD3USI

👉🏻RBI finally discloses list of large Wilful defaulters

(In response to a Right to Information (RTI) application filed by The Wire in May 2019, the RBI has released a list of 30 major wilful defaulters)

👇🏻 👇🏻 👇🏻

http://bit.ly/2D2Di4e

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👉RBI dissolves the board of defaulting finance company Dewan Housing Finance Ltd (DHFL), with an intention to initiate insolvency proceedings against it. 

👉The Confederation of Real Estate Developers Association of India (CREDAI)-NCR demands amendment in NCLT Act to not allow a single homebuyer initiate the insolvency proceedings and RERA have sole jurisdiction over customer disputes.

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Thanks for reading

19 November 2019 News and Updates

Corporate Snippets on Nov 19

Ø RBI can now seek resolution of NBFCs having assets

Ø Air India extends bridge-loan bids for Boeing purchase

Ø GoAir inks pact with Emirates National Oil Co for fuel

Ø Surplus transfer from RBI to depend on income: FM

Ø RBI working on strengthening its supervisory skills

Ø Advent set to buy controlling stake in Bharat Serum

Ø Govt. approves strategic stake sales in 28 PSUs

 

Ø YES Bank begins talks to extend November 30 binding offer deadline

Ø India committed to becoming a $26-bn defence industry by 2025: Rajnath

Ø NHAI to focus on execution, not on awarding new road projects: CRISIL

Ø ArcelorMittal hopes to complete Essar acquisition by December end

Ø  Edelweiss to transfer wholesale loans worth Rs 2,000 crore to AIF

Ø Company Law Committee bats for de criminalising 46 penal provisions

Ø HeidelbergCement mulls acquisitions, brand push

Ø Global PE firm Advent picks up majority stake in Daftary’s BSV

Ø Nissan recalls nearly 400,00 vehicles over braking system defect

Ø Synergy Group seeks time to bid for Jet Airways

 

Ø *Aditya Birla Idea Payments Bank headed for liquidation*

Ø Urban Ladder swings to profitability after battling losses, exits

Ø Government Panel recommends review of disciplinary rules on Directors, Auditors

Ø Tata Motors to supply 500 electric cars to Lithium Urban Technologies

Ø Shree Cement seeks to raise over ₹2,000 crore via QIP

Ø ICICI Bank plans ₹20,000 cr capital boost via QIP

Ø PNB, Union Bank get in-principal nod from govt for proposed merger

Ø Govt mulling to reduce upfront payment for larger coal blocks to attract investors

Ø World goods trade may remain below trend in Q4 2019: WTO

Ø Government notifies Steel Scrap Recycling Policy: Dharmendra Pradhan

 

Ø TRAI hopes to finalise views on call connect charges by Nov-end: Official

Ø Frequent FDA visits slow down pharma exports: GV Prasad

Ø Major recovery for SBI, ICICI from Essar verdict

Ø NBCC, Suraksha Realty submit revised bids for Jaypee Infra

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# Circular 125/44/2019 dated 18oct2019

GST: Fully electronic refund process through FORM GST RFD-01 and single disbursement. Long awaited Master Circular on Refunds superceding  earlier Refund circulars.

# Circular 124/43/2019 dated 18oct2019

Clarification regarding optional filing of annual return under notification No. 47/2019 Central Tax dated 9th October, 2019 - if annual returns remains unfiled then portal won’t allow filing of annual returns beyond due dates.

# Due date: Simple GSTR return for the month of October, 2019 - GSTR-3B - 20-11-2019

# MCA notifications Dated 18.11.2019;

1. Companies Meeting of Board And Its Powers Second Amendment Dated 18 Nov 2019

http://www.mca.gov.in/Ministry/pdf/Comp2Amndt_18112019.pdf

2. Notification of Categories of Financial Service Providers

http://www.mca.gov.in/Ministry/pdf/NotificationFSPs_18112019.pdf

3. Notification - For personal Guarantor to Corporate Debator

http://www.mca.gov.in/Ministry/pdf/Notification_18112019.pdf

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👉🏻SC stays SAT's order holding that SEBI lacks power to bar Auditors

( Supreme Court stayed an order of the Securities Appellate Tribunal (SAT) which had held that markets' watchdog SEBI does not have the power to bar auditors)

👇🏻 👇🏻 👇🏻

http://bit.ly/32ZnlGD

👉🏻Company Law Committee submits its report to Finance Minister

(The Committee took note of the progress made consequent to the Companies (Amendment) Act, 2019, which had resulted in de-criminalisation of 16 minor procedural/technical lapses under the Companies Act, 2013)

👇🏻 👇🏻 👇🏻

http://bit.ly/2QCJs3f

👉🏻NBFCs can go for insolvency resolution post MCA notification

(RBI can now direct resolution of non-banking financial companies NBFCsfor with assets worth at least Rs 500 crore under the insolvency law to help in addressing defaulting cases)

👇🏻 👇🏻 👇🏻

http://bit.ly/2KuaOEL

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👉NCLT directs Synergy Group to present resolution plan by Dec 3 in the matter of Jet Airways insolvency.

👉The Supreme Court asks NCLT to consider afresh a plea by a serving Air India (AI) pilot who has sought to initiate insolvency proceedings against the airline for failing to pay his past dues.

👉Banks are expected to take companies to NCLT in cases where resolution is still not in sight despite having signed Inter-Creditor Agreements (ICAs).

👉NCLAT asks promoters of Sterling Biotech to pay Rs 3,100 crore in a month that they had settled with the lenders to regain control of the insolvent firm. Or else, the company will go for liquidation.

18 November 2019 News and Updates

Corporate Snippets on Nov 18

Ø Govt. may soon ease up on FDI rules in a bid to revive economy

Ø Tata Sons chief bats for privatisation of discoms

Ø Project delays, cost overruns biggest negatives: AIIB

Ø FM speaks on measures taken to spur the economy

Ø Revival of royalty payment caps in the works

Ø Govt's disinvestment plans on track: FM

 

Ø NSO's junked consumer expenditure survey shows inequality gap declining

Ø *India Inc Q2 profit at 15-yr low on record telco losses, net sales dip 0.8%*

Ø Bharti Airtel, Vodafone Idea put the brakes on costs in September quarter

Ø RBI turns down banks' plea to relax June 7 circular on stressed assets

Ø Backed by technology, banks beat economic slowdown by hiring more

Ø Draft industrial policy targets $1tn gross value addition in manufacturing by 2025

Ø Green certificate sales down 2.25% to 6.87 lakh in October

Ø Q2 GDP growth to decline to per 4.9 per cent: NCAER

Ø Essar Steel, Adani, GAIL, HPCL buy bulk of Reliance gas

Ø Bharti Airtel withdraws bid for RCom assets citing questionable, unfair

 

Ø DHFL’s debt resolution plan hits a roadblock as collections drop

Ø Office property developers seek to monetize assets as investor interest peaks

Ø Centre explores new law to shield global investors

Ø Muthoot Finance to buy IDBI Bank’s MF business

Ø Elon Musk's Tesla plans to invest $4.4 billion in Berlin factory: Report

Ø GST non-filers face cancellation of registration

Ø India has potential for very rapid economic growth, says Bill Gates

Ø Penalise companies for non-compliance with Ambient Air Quality Norms: CII-Niti Aayog

Ø Winter session: IBC, BRA Bills top economic agenda

Ø CBIC refutes reports it demanded GST on salaries paid to CEOs

Ø Jaypee Infra insolvency: NBCC sweetens bid by offering more land & benami flats to lenders

 

Ø Anil Ambani, 4 others resign from bankrupt Reliance Communications

Ø Govt. working on policy to push MSME exports: Gadkari

Ø Over half of India's coal-fired power plants set to miss emission norm deadline

Ø Govt. will be forced to slash spending this year too: CRISIL

Ø Supreme Court paves way for Arcelor takeover of Essar Steel

👉NCLAT rejects the plea of Pepsico India Holdings seeking release its machinery from Oceanic Tropical Fruits, which is under the insolvency process.

👉The government is looking to address concerns over the Enforcement Directorate’s decision to attach properties of Bhushan Power and Steel, raising questions over its resolution under the IBC.

17 November 2019 News and Updates

Corporate Snippets on Nov 17

Ø Govt plans to cut stake in IOC to below 51%

Ø ONGC Q2 profit slumps 24%; misses Street estimates

Ø Airtel flags ‘going concern’ risk after big Q2 loss

Ø GST return forms simplified, filing dates extended 

Ø India resumes buying Malaysian palm oil

Ø Alstom to deliver 10 electric locomotives to rlys this fiscal

Ø L&T Cap likely to sell Dubai Wealth business

 

Ø At Rs. 6 trn, CBDT's direct-tax mop-up so far less than 50% of FY20 target

Ø 56% UK companies upbeat about doing business in India: UKIBC Report

Ø SEBI allows exchanges to modify commodity derivatives contracts

Ø Glenmark Pharma net declines 38% to Rs 255.54 cr in September quarter

Ø Grasim Industries Q2 net jumps to Rs 1,473 cr on good show by subsidiaries

Ø Steel companies hike prices by Rs. 500-750 a tonne for the first time this fiscal

Ø UK companies say business with India may increase after Brexit

Ø Q2 results: NBCC reports net loss of Rs 90.91 crore

Ø Vedanta Q2 profit rises 61% to Rs 2,158 cr

Ø Several wind power projects miss completion deadlines

Ø GVK Power’s Q2 loss widens to Rs. 159 cr

 

Ø PNB bank fraud: CBI set to file fresh charges in $2 billion scam, says report

Ø Union Bank of India posts Q2 net loss at Rs. 1,194 crore

Ø Malvinder Singh, former Fortis Healthcare promoter, arrested

Ø Moody's affirms RIL's Baa2 ratings with a stable outlook

Ø CCI approves Adani's 23.5% stake-buy in Mumbai International Airport

Ø India resumes buying Malaysian palm oil as Kuala Lumpur offers discount

Ø US-China trade war is good news for India’s this export business

Ø Walmart Q3 earnings surge to $3.3 billion, beating expectations

Ø Downgrade: Now, Moody's cuts India GDP forecast for 2019 to 5.6%

Ø Govt may hive off India Post's Life Insurance biz into separate company

 

Ø Wholesale price index eases to 0.16 per cent in October

Ø SENSEX ends 170 points higher; bank, IT stocks save the day

Ø 'RBI to cut rates by 40 bps by Feb despite high inflation

Ø Aurobindo Pharma Ltd. unit gets 14 observations

Ø Gold supply by domestic refineries dips by one-third

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👉🏻CBIC simplifies Form GST RFD-01, GSTR-9 and GSTR-9C

(CBIC notified the amendments via Notification No. 56/2019 – Central Tax, regarding the simplification of Form GST RFD-01, GSTR-9 and GSTR-9C) 

👇🏻 👇🏻 👇🏻

http://bit.ly/2q5XTC2

👉🏻Four-year-old Bandhan Bank makes more profit than 17 PSU banks combined

(The aggregate profit of 17 public-sector banks was lower than the net profit of private-sector lender Bandhan Bank Ltd alone in the September quarter of the current financial year) 

👇🏻 👇🏻 👇🏻

http://bit.ly/34Z6B3u

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Simplifications/ relaxations provided in Form GSTR-9 (Applicable for FY 2017-18 & FY 2018-19):

1. Option to fill Table-4B to Table-4E (related to supplies on which tax is payable) net of Credit Notes/ Debit Notes/ Amendments

2. Option to fill Table-5A to Table-5F (related to supplies on which tax is not payable) net of Credit Notes/ Debit Notes/ Amendments

3. Option to report Exempted, Nil rated and Non GST Supplies (Table-5D to 5F) on consolidated basis in the “exempted” row only i.e. in Table-5D

4. In Table-6B to 6E, Option to report ITC on Inputs, Capital Goods and Input Services on consolidated basis under “Inputs” row only

5. Option to Report RCM ITC on Inward supplies from registered persons (Table-6D) and unregistered person (Table-6C) on consolidated basis in Table-6D

6. Option to report the entire amount of reversal (From Table-7A to 7E) under Table 7H only

7. Option to upload the details for the entries in Table 8A to 8D in duly signed PDF format in FORM GSTR-9C (without the CA certification)

8. Option to not fill Table-12 (Reversal of ITC availed during preceding year) & Table-13 (ITC Availed for the preceding year)

9. Option to not fill Particulars of Demands and Refund (Table- 15A to 15G)

10. Option to not provide Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis (Table- 16A to 16C)

11. Option to not provide HSN Wise Summary of Outward & Inward supplies (Table-17 & 18)

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👉The Supreme Court to deliver judgements on 2 crucial corporate cases- one involving Fortis & the other involving Essar Steel.

👉NCLAT cancels the sale of Orchid Pharma to Dhanuka Laboratories citing that the resolution plan submitted by the buyer was lower than the liquidation value.

👉The cumulative share of Operational Creditors in companies admitted under Insolvency and Bankruptcy Code (IBC) has reduced to 48% at the end of Q2 from 50% in Q1 of FY20. Correspondingly, the share of Financial Creditors has risen from 40% to 43% in the same period.

👉Bank moves NCLT to initiate insolvency proceedings against McLeod Russel India Ltd, an Indian tea company.

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# MCA notified the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings* of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.

# Personal Guarantor Insolvency under IBC 2016 notified from 01.12.2019 w.r.t. PART III on Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms under Section 78 notified alongwith Section 94 to 187.

# Press Release dated 15th November clarifying that *no GST is applicable on Staff Payments to CEO and Directors of the company.  clarification issued

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Personal Guarantor Insolvency under IBC 2016 notified from 1.12.2019 w.r.t. PART III on Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms under Section 78 notified  alongwith Section 94 to 187.

But, all are applicable to the extent of personal guarantor to corporate debtor alone.

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👉NCLT directs the lenders of Kwality Ltd to reconsider the revised Rs. 145 crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm. Delhi-based bench of the tribunal also extends the Corporate Insolvency Resolution period by 3 weeks.

👉The Supreme Court allows the plea of Committee of Creditors of Essar Steel India and set aside the NCLAT order on insolvency proceedings against the steel giant.

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👉🏻Racket of issuance of fake invoices involving GST of Rs 22 Cr busted

(The revenue department said it has unearthed a racket involving issuances of fake invoices for availing tax benefits worth Rs 22 crore under GST and arrested two persons in this regard.) 

👇🏻 👇🏻 👇🏻

http://bit.ly/37cZ82I

👉🏻New Express Entry draw invites 3,600 candidates to apply for Canadian PR*l

(Nov 13’s draw brings the total number of invitations to apply (ITAs) issued so far this year through Canada’s Express Entry system to 75,300) 

👇🏻 👇🏻 👇🏻

http://bit.ly/32JYmqE

 

👉🏻Supreme Court sets aside NCLAT judgement, gives upper hand to banks

(Supreme Court set aside NCLAT judgement and said that the ultimate discretion on distribution of funds was with the Committee of creditors) 

👇🏻 👇🏻 👇🏻

http://bit.ly/2qWuf1Z

15 November 2019 News and Updates

Corporate Snippets on Nov 15

Ø Pay AGR dues as per SC order: DoT to telcos

Ø CPI hits 16-month high, breaches RBI's target

Ø CoC extends RCom's asset bid deadline by 10 days

Ø Govt to institutionalise social audits in rural schemes

Ø KEC International bags new orders of Rs 2,255 cr

Ø US tech body opposes India's bid for data localisation

Ø India's growth should bottom out in Dec qtr: CLSA

Ø Voda boss says Indian JV remark distorted, apologises to Govt.

Ø Major ports record muted performance on fall in coal, fertilizer cargo

Ø Indian plastic exports to Pakistan decline by 91% on soured relations

Ø MFs' exposure to NBFCs down 30% in 15 months since IL&FS crisis broke out

Ø SEBI puts in place disclosure framework for municipal debt securities

Ø HAL profit up 116% to Rs 621 cr in Sep quarter; revenue grows 32%

Ø Liquidation of Voda-Idea may mean $1.7-trillion hit for shareholders

Ø ITC to pick up 33.42% stake in vending machine maker Delectable

Ø SAT to hear RIL appeal against SEBI in ₹2,000 crore Reliance Petroleum case

Ø RBI sees sharp fall in consumption

Ø CG Power’s foreign subsidiaries face financial crunch, legal issues

Ø NBCC, Suraksha Realty asked to submit fresh bids to buy Jaypee Infratech

Ø Railways records lowest freight loading since 2010

Ø ABB India pulls off strong profit growth but order flow concerns remain

Ø SpiceJet Ltd reports ₹461 crore September quarter loss

Ø BSNL to raise ₹15000 crore through sovereign bonds next month

Ø US-based Dole Food Co to enter India through tie-up with Future Group

Ø High levies, low tariffs double whammy for telecom industry

Ø Yes Bank faces fresh audit into complaints by whistleblower

Ø Vedanta SEZ in Odisha seeks permission to locally procure petroleum coke

Ø NBCC, Suraksha Realty asked to submit fresh bids to acquire Jaypee Infratech

Ø Red-flagging exposures: Banks may classify DHFL as fraud account

Ø Adani Power second quarter profit falls 99% on poor sales

Ø Rupee tumbles 62 paise, could remain weak

Ø SENSEX tumbles 229 points as weak macro data, rupee woes weigh

Ø NABARD seeks credit disbursal from banks on monthly basis

Ø RBI becomes net buyer of dollars in Sept., bought USD 5.61 billion

Ø Dividend tax burden may shift to investors

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👉🏻Concurrent Auditor arrested in PMC Bank scam

(EOW of Mumbai Police has arrested an concurrent auditor in connection with the alleged Rs 4,355 crore scam at the Punjab & Maharashtra Cooperative (PMC) Bank)

👇🏻 👇🏻 👇🏻

http://bit.ly/2qUzXRO

👉🏻Income tax department admits error in charging late ITR filing fee

(The income tax department has admitted that there has been an inadvertent error while processing income tax returns (ITR) of partners of firms whose accounts are liable to be audited)

👇🏻 👇🏻 👇🏻

http://bit.ly/2rFTMwJ

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CBIC has asked its principal chief commissioners to be more proactive in persuading eligible taxpayers to take benefit of 'Sabka Vishwas Scheme'. with the objective of settling pending disputes of Service Tax and Central Excise in the budget. A mid-term review reveals that a total amount of Rs 5,472 crore inclusive of pre-deposit amount of Rs 4,225 crore has already been declared under the scheme. 

SEBI has issued Operational guidelines for foreign portfolio investors designated depository participants and eligible foreign investors. These consolidated operational guidelines for foreign portfolio investors (FPIs) and Designated Depository Participants (DDPs) are issued to facilitate the implementation of SEBI (Foreign Portfolio Investors) Regulations, 2019.

RBI has issued a notification on a review of limits eligibility criteria for classification under ‘Qualifying Assets’ for  Non-Banking Financial Companies-Micro Finance Institutions (NBFC-MFIs).

Confederation of Indian Industry has urged the government to drop a proposal to lower the threshold for companies to mandatorily employ welfare officers, saying the change would severely impact margins of small and medium enterprises.

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👉NCLAT asks for SEBI reply on new share delisting norms for insolvency firms.

👉NCLAT sets aside tribunal order to begin insolvency process against Apeejay Tea.

👉NCLAT in New Delhi has set aside an order approving Dhanuka Laboratories Ltd.’s resolution plan for Orchid Pharma.

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Taxman gears up to impose 18% GST on CXO salaries:

READ MORE- https://www.gststation.in/taxman-gears-up-to-impose-18-gst-on-cxo-salaries/

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Budget 2020: FinMin seeks suggestions for rationalising income tax, other duties:

READ MORE- https://www.gststation.in/budget-2020-finmin-seeks-suggestions-for-rationalising-income-tax-other-duties/

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🎯News on GSTR 9& 9C - Extended

GSTR 9 and GSTR 9C date extended by govt

🗓FY 17-18 -Due date31 Dec 19

🗓FY 18-191- Due date 31 March 20

Below is summary

📌Simplification of form by making various field optional

📌 No split of ITC in input, input services and Capital goods- Relexation in Table no 6 of GSTR 9

📌No need to provide HSN summary of outward supply - Relaxation in Table no 17 of GSTR 9

📌No need to provide HSN summary of inward supply - Relaxation in Table no 18 of GSTR 9

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Challenges in current GST structure: A way forward:

Eead more-*https://www.gststation.in/challenges-in-current-gst-structure-a-way-forward/

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GST will not have to be paid expensive, if you do not pay twice in a row, then no E-way bill:

READ MORE- https://www.gststation.in/gst-will-not-have-to-be-paid-expensive-if-you-do-not-pay-twice-in-a-row-then-no-e-way-bill/

13 November 2019 News and Updates

✅Corporate Snippets on Nov 13✅

Ø India invites foreign firms to invest in oil sector

Ø Another whistleblower guns at Infosys CEO Parekh

Ø India's July-Sep quarter GDP numbers crucial: Report

Ø Tata Group is looking for a partner to help fix Jaguar business

Ø IL&FS gets banks' nod for sale of education biz

Ø Tata Motors global wholesales dip 19% in October

- UK jobs fall by most in over four years as election nears.

- *Financial Times picks first female editor Khalaf as Barber signs off.*

- Situation critical: Vodafone's future in India in doubt after court ruling.

- Brexit extension set to boost IRISH economy - finance minister.

- McDonald's workers sue over sexual harassment, 'toxic' work culture.

- Prosecutors seek charges against VW managers over labour bonuses.

- Thyssenkrupp elevator unit attracts at least three major bidders.

Ø JSW Steel output falls 13 per cent to 12.54 LT in Oct

Ø Stability, regulatory reforms to boost economic growth: BSE MD Chauhan

Ø India-Asean bilateral trade may double by 2025 to $300 billion: Study

Ø Govt. to consider TCS, Infosys offers to set up infotech SEZs on Nov 15

Ø Aurobindo consolidated Q2 profit before tax up 5.9% at Rs 904 crore

Ø UltraTech to sell stake in Bangladesh-based units to HeidelbergCement

Ø India can gain from US-China trade war: RBI study

Ø SBI's Economic Research team cuts India's FY20 GDP forecast to 5%

Ø Tata Motors’ India operations face acute challenges: Moody’s

Ø MMTC extends tender offer to sell 6% stake in ICEX till November

Ø States should scrap APMCs and move on to eNAM: FM

Ø Apple tops India premium segment with 51.3% market share in Q3, says IDC

Ø Moody’s downgrades Macrotech Developers (Lodha) to Caa1

Ø India, other BRICS members to strengthen cooperation in digital economy: Modi

Ø Embassy REIT to raise debt, equity to fund acquisitions

Ø Airbnb counts India among its top three fastest growing EMs

Ø India to cross 200 GW renewable energy capacity mark by 2022: Power Minister RK Singh

Ø Lodha group arranges $325 million fund to repay bonds maturing in March

Ø Ahead of meet with USTR, Piyush Goyal flags 'predatory pricing' in e-commerce

Ø Airtel submit bids for RCom spectrum; Jio seeks deadline extension by 10 days

Ø Coal India Q2 net profit up 14 pc to Rs 3,522 crore

Ø Solar installations drop 35 per cent in first half

Ø Oil tanker to become Asia’s refuelling hub

Ø Vodafone's future in India in doubt after latest setback

Ø Govt within its rights to hold spectrum auction: COAI

Ø Jindal Stainless reports Q2 profit at Rs 52 crore

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Whether the Directors of a Company, which in default of clauses (a) and (b) of Section 164(2) of the Act, are disqualified from being re-appointed as Directors in other non-defaulting companies?

No person who is or has been a director of company shall be eligible to be re-appointed as a director of ‘that company’ or appointed in any ‘other company’.

Read full article at https://dasgovernance.com/2019/11/12/whether-the-directors-of-a-company-which-in-default-of-clauses-a-and-b-of-section-1642-of-the-act-are-disqualified-from-being-re-appointed-as-directors-in-other-non-defaulting-companies/

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Lukewarm response to indirect tax legacy dispute resolution scheme:

READ MORE

https://www.gststation.in/lukewarm-response-to-indirect-tax-legacy-dispute-resolution-scheme/

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Businesses allowed self-assessment for claiming GST credits:

READ MORE-https://www.gststation.in/businesses-allowed-self-assessment-for-claiming-gst-credits/

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Over Rs 5,000 cr dues declared so far under Sabka Vishwas Scheme:

READ MORE- https://www.gststation.in/over-rs-5000-cr-dues-declared-so-far-under-sabka-vishwas-scheme/

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👉Insolvency regulator IBBI is considering the Group Insolvency laws framework. Group insolvency will attempt to club multiple entities of a group facing insolvency at a single court for resolution. 

👉Resolution of financial service providers possible under IBC  according to IBBI chief M S Sahoo.

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GST Taxpayer: You need to be careful in filing November GST return after change of rule last month:

READ MORE- https://www.gststation.in/gst-taxpayer-you-need-to-be-careful-in-filing-november-gst-return-after-change-of-rule-last-month/

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Whether the provisions of Section 167(1)(a) of the Act are applicable in respect to offices of Directors, who have incurred the disqualification under Section 164(2) of the Act?

The Director would not demit their office on account of disqualifications incurred under Section 164 (2) of the Act by virtue of Section 167(1)(a) of the Act prior to the statutory amendments introduced with effect from 07.05.2018. However, if they suffer any of the disqualifications under Section 164(2) on or after 07.05.2018, the clear implication of the provisos to Section 164(2) and 167(1)(a) of the Act are that they would demit their office in all companies other than the defaulting company.

Read full article at https://dasgovernance.com/2019/11/13/whether-the-provisions-of-section-1671a-of-the-act-are-applicable-in-respect-to-offices-of-directors-who-have-incurred-the-disqualification-under-section-1642-of-the-act/

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TODAY'S CASE (INDIRECT TAX)

ST - Penalty cannot be imposed simultaneously u/s 76 and 78 of Finance Act, 1994: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MTA1

CX - Excess credit availed due to wrong computation of formula given in rule 3(7)(a) of CCR, 2004 - credit reversed on pointing out by Range officer - no penalty imposable: CESTAT by Majority 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MTA0

Cus - Issue sought to be raised by the appellant is not issue decided upon in O-I-O, hence no order can be passed on same: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MTAy

CX - AA has denied CENVAT credit on ground that assessee did not inform Department about receipt of duty paid final products back into factory - there is no such requirement u/r 16 of CER - order bad in law: CESTAT 

https://taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTU0MTAz

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Whether the provisions of Section 167(1)(a) of the Act are applicable in respect to offices of Directors, who have incurred the disqualification under Section 164(2) of the Act?

The Director would not demit their office on account of disqualifications incurred under Section 164 (2) of the Act by virtue of Section 167(1)(a) of the Act prior to the statutory amendments introduced with effect from 07.05.2018. However, if they suffer any of the disqualifications under Section 164(2) on or after 07.05.2018, the clear implication of the provisos to Section 164(2) and 167(1)(a) of the Act are that they would demit their office in all companies other than the defaulting company.

Read full article at https://dasgovernance.com/2019/11/13/whether-the-provisions-of-section-1671a-of-the-act-are-applicable-in-respect-to-offices-of-directors-who-have-incurred-the-disqualification-under-section-1642-of-the-act/

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CBDT claimed that the Income Tax Department has busted a hawala racket worth Rs 3,300-crore and spread across multiple cities such as Delhi, Mumbai and Hyderabad with links to "leading corporate houses" in the infrastructure sector.

India’s share of tax from multinational digital companies like Google and Facebook, among others, would be substantially lower than the current mop-up under equalisation levy if the taxation formula suggested in the OECD consultative paper is applied. The OECD formula seeks to distribute ‘residual profit’ among jurisdictions where taxability is established.

The government has allowed businesses to do self-assessment while claiming credits for the Goods and Services Tax (GST) paid on raw materials and services in cases where their suppliers have not uploaded invoices.

Businesses can claim only 20% of the total tax credits due to them if suppliers have not uploaded invoices and not paid taxes to the government, as per rules notified in October. A Finance Ministry circular on Monday showed that the authorities have decided to allow businesses to do self-assessment while complying with this rule, rather than enforcing it through making software changes in GSTN, the portal for filing returns.

The decision was taken as it was a new rule meant to improve compliance. Wrongful claim of tax credits is a big area of tax evasion that the government wants to address but it prefers to tighten rules only gradually to avoid a backlash.

A set of clarifications issued by the Finance Ministry on Monday said that it was the responsibility of the taxpayer to ensure that credit is availed of as per rules, adding that it shall be done on self-assessment basis by them.

Reserve Bank of India has withdrawn some exemptions granted to mortgage finance companies in terms of complying with regulations such as provisions and creation of reserve fund that would put them on par with other non-banking finance companies. This has followed the shift of regulation of housing finance companies to the Mint Street from the National Housing Bank.

Economic Offences Wing (EOW) arrested two auditors in connection with PMC Bank scam and will produce them in Court today seeking their police remand. Earlier five accused have been arrested in the case.

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👉NCLAT has set aside the insolvency proceedings initiated against Apeejay Surrendra group firm Apeejay Tea and directed to hand over the management back to its Board Of Directors.

👉NCLT extends time for Ind-Barath’s insolvency process.

👉Insolvency regulator IBBI has asked registered insolvency professionals to furnish details of all ongoing CIRP, which is not completed within 330 days.

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 Explanation of Section 12 of IBC Code 2016 : Section 12 of the Code thus mandates that the CIRP of a CD must conclude within 330 days from the insolvency commencement date. This period of 330 days includes (a) normal CIRP period of 180 days, (b) one-time extension, if any, up to 90 days of such CIRP period granted by the Adjudicating Authority, and (c) the time taken in legal proceedings in relation to the CIRP of the CD. It also mandates that a CIRP  which was pending and not completed within the aforementioned period of 330 days as on the date of commencement of the Amendment Act, that is, 16th August, 2019, shall be completed within a further period of 90 days from such date, that is, by 14th November, 2019. It, therefore, amounts to contravention of section 12 of the Code (a) where the CIRP is not completed within 330 days from the insolvency commencement date, or (b) where a CIRP, which was not complete as on 16th August, 2019 even after expiry of 330 days, is not completed by 14th November, 2019.

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DEEMED DIVIDEND

Loans or advances from shareholders : Advance received by assessee-holding company from its subsidiary company for making strategic investments in real estate projects being purely of nature of trade advance received in ordinary course of business as per agreed Memorandum of Understanding, was a commercial transaction, hence, not deemed dividend under section 2(22)(e) - Asian Business Connections (P.) Ltd. v. Deputy Commissioner of Income Tax - [2019] (Indore - Trib.)

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✍️RBI circular regarding Age Limit for Concurrent Audit Staff🍎

 

As per RBI Circular - DBS.CO.ARS.No.BC. 01 / 08.91.021/2019-20 dated 18-09-2019

RBI Circular regarding change in Audit System:-

 

RBI has issued fresh guidelines regarding Concurrent Audit System. As per the same, the age limit of retired staff engaged as concurrent auditors is required to be capped at 70 years. Accordingly, you are hereby instructed to follow the said guideline and ensure that none of the retired staff engaged as concurrent auditor is above 70 years of age.

Based on that many Banks may quit Retired Staff of the same bank appointed as Concurrent Auditor. Many CAs have good time to get new appointments.

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 The SC has held that the office of CJI is public authority under transparency law, Right to Information Act

SC cautions that RTI cannot be used as tool of surveillance

Judicial independence has to be kept in mind while dealing with transparency: SC

The Supreme Court has held that office of the Chief Justice of India is a public authority under the transparency law, the Right to Information Act.

"Transparency doesn’t undermine judicial independence," the Supreme Court said in a unanimous verdict on Wednesday as it upheld the Delhi High Court judgment which ruled that office of the Chief Justice comes under the purview of RTI.

The five-judge constitution bench, headed by Chief Justice Ranjan Gogoi who retires on November 17, also dismissed the three appeals filed by secretary general of the SC and the Central Public Information officer of the apex court. Other members of the bench included Justices NV Ramana, DY Chandrachud, Deepak Gupta and Sanjiv Khanna.

Thanks for reading