‘LIMITED SCRUTINY’ UPDATES ON 30th’NOVEMBER’2018

CASS UPDATES:

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  • It is explained by the Central Board of Direct Taxes (CBDT) that the  limited scrutiny cases referred under CASS cycles in 2017 and 2018 where the issues referred to by the law scope enforcement/ intelligence/ regulatory authority or agency.
  • In CASS cycles 2017 and 2018, few cases were selected for scrutiny in form of ‘Limited Scrutiny’ case. In the cases of ‘Limited Scrutiny’ the officers appointed for the case cannot travel beyond those issues for which they were appointed for.
  • The issues of several cases under ‘Limited Scrutiny’ information pointing out specific tax-evasion for the relevant year enforcement are asked by the filed authority. Agencies are available with the concerned Assessing Officer, however, in view of the restrictive nature of the restrictive nature of enquiry which can be made in ‘Limited Scrutiny’ cases, the same presently cannot be acted upon.
  • After the Examination of issue properly, it was said by the board that the issue coming out in this from the information  can also be examined during the course of conduct of assessment proceedings in such ‘Limited Scrutiny’ with prior approval.
  • It was said by the board that in Limited Scrutiny, assessing officer shall not expand the enquiry level for which the case was assigned for ‘Limited Scrutiny’ & issue arising from nature of information,” the Board said.
  • The officers assigned for the same should duly record the reason for expansion of the scope of ‘Limited Scrutiny’ to the extent.
  • For the proper monitoring in the cases provisions of Section 144A of the Income Tax Act, 1961 may be invoked in suitable cases.
  • The mentioned aspects shall be applicable from the date of issue and shall apply to the pending ‘Limited Scrutiny’ case selected in CASS 2017 and 2018 cycle.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write to info@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480

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PROFESSIONAL UPDATES ON 30th November 2018

SEBI UPDATES:

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  • Security Exchange Board of India May introduce a new law to allow Mutual Funds to segregate distressed debt Securities in their portfolios. The proposal for the formation of law is recently approved by the mutual funds advisory Committee, appointed by security board exchange of India. The move comes in the wake of defaults by IL&FS that led to erosion in NAVs of various debt schemes. As the value of few schemes fall 3-6% on a single day. This is about 50-70% of the annual return of some bond schemes.
  • In previous 2 years, there are some Default in companies like Amtek Auto and JSPL, which leads to massive redemption in some mutual funds the presence of select NBFC papers in various debt portfolios had led to several liquid schemes facing redemption pressure.

RBI UPDATES:

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  • RBI should provide funds to non-banks through a dedicated window, buy more government bonds from the market to infuse money and even cut the cash reserve ratio. Before we move forward we should consider the problem already arising.
  • On the other hand the currency with the public is increased by 23% in only one year. As on 9 November, credit had increase by 14.9% in a year ago, while the Banks can only mop up maximum upto 9.1% more deposit than they did a year ago.
  • The option to borrow from its different repo tenders, RBI has been infusing more than o1 trillion daily through its repo operations, a sign of growing liquidity deficit liquidity. . The blow to the sterling image of non-banking financial companies (NBFCs) has made them unworthy of credit in the eyes of banks.
  • Urjit Patel The governor of Reserve Bank of India on Tuesday mainly focused on the need to protect the autonomy of the central bank before a parliamentary panel, but stayed away from any direct criticism of the government. Patel assured the members he would provide details on the specifics of certain non-performing assets held by various banks. Patel’s deposition came in the wake of public disagreements between RBI and the finance ministry on easing liquidity supply in the credit markets. Patel asserted in his responses that RBI’s autonomy was essential to both the interests of depositors and the credibility of the Indian economy before the international rating agencies, according to the people aware of the proceedings.
  • Patel recommended that the autonomy of RBI is essential for both the depositors and the and the credibility of the Indian economy before the international rating agencies. As per the people aware of the proceedings. He was responding to a series of questions raised on the recent RBI-finance ministry.
  • Some of the BJP Members such as Nishikant Dubey and Shivkumar C Udasi have enquired if the India being overenthusiastic in Basel-III norms compliance when many signatories are not following it in letter and spirit. In Answer RBI governor said India’s compliance was a matter of credibility besides its commitment to a G20 decision.Dubey, it’s learnt, quoted from Adair Turner’s prescription in his book “Between Debt and the Devil” to make the point that the RBI must help the government in difficult times. He claimed that a committee appointed by the UPA regime had recommended a more central role for the finance ministry in relation to RBI and markets regulator the Securities and Exchange Board of India (Sebi) to resolve contentious issues.
  • At the time of Demonetization in the Economy, the governor apparently said it was only transient as the volume of credit outflow had gone up by 15.5%. The digital economy had significant growth, he said, adding that inflation had come down to around 4%. Patel projected a robust outlook for the national economy and opined that the fall in international crude oil prices will give the Indian economy the much-need boost.
  • It is decided by the RBI if it needs to call the RBI governor again after examining his written response which he is expected to submit over the next couple of weeks.
  • It is the responsibility of government and the nation to respect the functional autonomy of RBI as happened in the board meeting of RBI its  autonomy came up when RBI governor Urjit Patel testified before Parliament’s standing committee on finance. It is important for all stakeholders to view and appreciate institutional autonomy in the right spirit.

GST  UPDATES:

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  • The total collection from goods and services (GST) was projected to be Min. Rs. 12 trillion in this current financial year. On the other hand, in each month it is expected to collect Rs. 1 trillion by GST averagely. The GST in two months i.e.(April and October) has hit target. As average monthly target stood at Rs. 970 billion in the first seven months of FY19. But the average monthly revenues will have to rise at least 14 per cent in the next five months than what was achieved in the first five months to hit the target.
  • Any fall in collections on CGST will not burden the Centre alone as 42 per cent of it goes to the states under the devolution formula. Any fall in collections on CGST will not burden the Centre alone as 42 per cent of it goes to the states under the devolution formula.
  • A notice to finance department, the commerce ministry and the Goods and Services council is issued by the Punjab and Haryana Government High Court for restricting the benefits of advance authorisation licence for exporters under the GST regime. The advance authorisation licence is issued to for allowing the duty-free import of inputs.
  • The CBIT and customs and the ministry of commerce had introduced a clause of “pre-import” for exempting imports done on advance authorisation licenses from integrated GST.

Other Updates:

  • The government is a data bank for all medicine brands to prevent pharmaceutical companies from using the same or similar looking and sounding brand names for drugs, especially those used to treat different conditions, senior officials close to the development said.
  • The brand ‘Medzole’ has been used to market at least four different kinds of medications, including an antifungal, an antibiotic and a medication for stomach acid problems. “This is dangerous, because the patient might accidentally be taking a medicine that they are not supposed to be consuming and which could cause unwanted side effects or health problems for them,” the person told ET on condition of anonymity. It was also said that medicines in different condition are sold with the same or similar brand names without the government’s knowledge.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write to info@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480

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CORPORATE AND PROFESSIONAL UPDATES 25th NOVEMBER 2018

Image result for PIC OF CORPORATE AND PROFESSIONAL HDCORPORATE & PROFESSIONAL UPDATES:

  • ANTI-RTI (Right to Information) policy of Reserve Bank of India is pulled up by Central Information Commission. The list of Defaulters of loans has to be provide within 45 days as ordered by the Supreme Court in its 2015 Judgment.
  • A question is raised on the governor Urjit Patel why the name of willful Defaulters is not disclosed and has given a 10-day relief to the RBI and asked it to respond to the notice. Information Commissioner M Sridhar Acharyulu had issued the notice 2, giving Patel time till November 16 to explain. Acharyulu, who is set to retire on Tuesday, heard the matter on Friday and gave the central bank time till November 26 as sought by it. Acharyulu said, “The commission strongly recommends immediate correction and an appropriate action against RBI’s declared anti-RTI policy” and further ordered to disclose and time to time update.
  • Huge addition in September payroll almost a million as per the data of EPFO. The highest addition in the past 13 months.
  • Department of Industrial Policy and Promotion (DIPP) wants to amend the Public Procurement Order so that penal action can be taken against erring officials of procurement agencies of any government department if they include restrictive or discriminatory conditions against domestic suppliers in bid documents.

 Notification:

  • CBDT amends Form of appeal to the Appellate Tribunal.
  • Highest payroll in September as according to last 13 months

Key cases:

  • In the case of Sushmita Sen Vs. ACIT received by Sushmita Sen towards damages for being sexually harassed not taxable
  • SEBI asked listed companies to disclose detailed reasons for the delay in submission of financial results to the stock exchanges within one working day of the stipulated deadline. As in a case a company it was delayed which should be taken within a working day.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

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GST UPDATES IN THE MONTH OF NOVEMBER 2018

Image result for GST hd picsUPDATES WITH GST

  • GSTR-3B is mandatory for all the tax payers those who have registered under GST. The Due Date for GSTR-3B has been extended from the month of July 2017 to Nov 2018 is now till 31st December 2018 for newly migrated tax payers and the due date for others is not changed.
  • Every registered dealer is required to file GSTR-1 every month. The return contains details of all outward supplies made during the month.The Due Date to file GSTR-1 has been extended for the taxpayers with Turnover above the Amount 1.5 crores in previous year or current year.
  • The Due date for the month from July 2017 to September 2018 extended till the 31st October 2018.
  • The current four bills that have been passed do not put forth a single uniform rate across all categories. Instead a multi-tier tax slab has been put forth with four different tax rates i.e., 5%, 12%, 18% and 28%. The reasoning behind this is that luxury goods cannot be taxed at the same rate as daily necessities.
  • There would also be goods that are tax-exempted and zero-rated which implies that there are six categories of products and services under the bill. An additional Cess on demerit goods such as aerated drinks, luxury cars and tobacco products would be levied. There will not be any tax on food products and petroleum products as of now. There has been no information as of yet regarding alcohol under GST.
  • Services will not be taxed over 18% and 5% tax will be levied on mass consumed products such as packaged salts and spices although food grains and other agricultural products are not going to be taxed. For most other products and services, the nearest tax slab will be applicable. Items generally used by the common man such as toothpaste, oil, soap and others will be taxed between 12% to 18% as opposed to the current rate which is over 20%.
  • GST Bill is expected to have a good impact on the general public as products of mass consumption, such as food grains, will not be taxed. Other commodities and services that are commonly used, like soaps and toothpaste will attract 12%-18% tax, which is lower than the current rate of more than 20%. Even household products such as refrigerators and washing machines will be cheaper as the rate of tax now applicable to them is 28% as opposed to the previous rate of 30%-31%.

Update GST Registration:

  • Most of the commodities and services that are subject to GST have been categorized under four tax slabs, viz. 5%, 12%, 18%, and 28%. However, GST Rates is not applicable to some goods and services, such as jute, fish, eggs, fresh meat, milk, chicken, curd, fresh fruits, butter milk, vegetables, natural honey, bread, salt, besan, Prasad, sindoor, printed books, bindi, judicial papers, newspapers. hand loom, bangles, horn cores, bone meal, bone grist, horn meal, hoof meal, Palmyra jaggery, cereal grains hulled, coloring and drawing books, etc.

Key Due Dates:

  • 31st December 2018.
  • 31st October 2018.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax Adviser for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Adviser Service provider. His Blog can be found at http://carajput.com for any query you can write to info@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

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