Corporate and Professional Updates on 15th May 2019

Direct Tax Updates:

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  • The income tax department Tuesday deferred for the second time the requirement for companies to include in their tax audit report the details of Goods and Services Tax and GAAR.
  • The reporting requirement of these details in income tax audit form has been kept in abeyance till March 31, 2020 — meaning that all income tax audit reports need not include details on GST and General Anti-Avoidance Rules (GAAR) till March 2020. Business entities having a turnover of more than Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation) and professionals with gross receipts of more than Rs 50 lakh have to comply with the tax audit requirements.
  • The due date for its filing is September 30 and if the taxpayer is covered by transfer pricing provisions, the due date is November 30. The Central Board of Direct Taxes (CBDT) in an order issued Tuesday, said the Board has received representations that implementation of reporting requirements under clause 30C (pertaining to GAAR) and clause 44 (pertaining to GST compliance) of the Form No 3CD may be deferred further. “The matter has been examined and it has been decided by the Board that the reporting under clause 30C and clause 44 of the Tax Audit Report shall be kept in abeyance till March 31, 2020.

RBI Updates:

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  • Inflation forecasts lie at the heart of any central bank’s monetary policy decisionmaking. In India, the Reserve Bank of India (RBI) adopted the flexible inflation target (FIT) framework in June 2016 and a predetermined 4% inflation rate which made inflation forecasts critical in helping it decide whether to cut or hike rates. In recent years though, RBI has overestimated the threat of inflation.
  • The accuracy of RBI’s inflation forecasts compare favourably with other central banks’, according to an RBI study. However, a study conducted by Janak Raj and others of RBI argues that the forecasts have been largely unbiased, barring two major episodes of deviation driven by unexpected food price movements. In the study, the authors compare inflation forecast data with actual inflation.

Other Updates:

  • Oil imports from Iran down 57% y/y in April: Trade
  • US commerce secy warns India against retaliatory tariffs
  • Airtel to merge VSAT ops with Hughes India unit
  • NCLT begins bankruptcy process for RCom
  • Essar shareholder seeks ban on Mittal’s bid
  • India IT & biz market to reach $14.3 bn by 2020
  • Wipro builds blockchain digital currency in Thailand
  • Kerosene subsidy bill builds up 21% to Rs 5,800 cr in FY19; LPG jumps 49.4%
  • Alembic Pharma forms JV to enter a difficult $100 bn Chinese market
  • Zee stake sale at advanced stage, progressing steadily.
  • BSE Q4 net profit drops 16.46 pc to Rs 51.86 crore
  • RBI’s holding company model for banks will help contain NPAs, says Charan Singh
  • IMF chief Christine Lagarde says US-China tensions ‘threat’ to world
  • Rupee slips to 69.43 against US dollar
  • Multifold increase in investments in B2B startups
  • NBCC offers just Rs 20 crore to operational creditors.
  • TRAI pulls up DTH, cable operators for not compliying with new tariff
  • DCM Shriram reports nearly six-fold jump in Q4 net profit at Rs 293 cr
  • Patanjali gets time till May 7 for filing resolution plan
  • Ambuja Cements’ volumes, realisation disappoint
  • Netherlands got $12.8-b Indian FDI in 2017, 2nd biggest after Singapore
  • Review safeguard duties on solar cell imports, Japan tells India.

Key Due Dates:

  • GSTR-3B for the month of April 2019 is 20th May 2019.

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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Corporate and Professional Updates on 14th May 2019

Indirect Tax Updates:

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  • The Goods and Services Tax (GST) Council has added flexibility into the way a company can utilize the available input tax credit. Any company would now be eligible to use credit available against paid integrated GST (IGST) to set off tax liabilities of state GST (SGST) and central GST (CGST) in any proportion and in any order, the GST Council said in a circular sent to field formations on Tuesday. Previously, the order of using the IGST credit was kept flexible — it was the company’s choice to set off CGST or SGST first — in a notification dated March 29. However, it was not clear whether a company would be able to use IGST credit to set off SGST liability and CGST liability partially at the same time. It was construed that if a company chooses to set off SGST liability first, it would have to exhaust the entire SGST liability before using the IGST credit to set off CGST liability.

RBI Updates:

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  • The beginning of the financial year 2019-20 saw a bit of rising inflationary pressures, but the rate of price rise was still below the average of the Reserve Bank of India’s (RBI’s) mandate of 2-6 per cent.
  • Experts are divided whether the monetary policy committee (MPC) of the RBI will cut the policy rate in June. The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items. However, food inflation was still 1.1 per cent in the month against 0.3 per cent in the previous month. It was in March that food inflation broke the five-month trend of deflation. This may augur well for farmers who faced rural distress.
  • Inflation in urban areas rose to 4.64 per cent in April from 3.47 per cent in the previous month, which may not go down well with the middle class, if the trend persists. Much of the inflation in food items is generally attributed to the government’s recent move to give higher minimum support price (MSP) to farmers.

Other Updates:

  • Disclose exposure to IL&FS, RBI tells banks
  • Customer plaints against banks surge 25% in FY18
  • RBI sells entire stake in NHB, Nabard to govt
  • FinMin may raise cap on 59-minute loans to Rs 3-5 cr
  • CBI’s Look Out Circulars against Bhushan steel boss
  • SFIO quizzes Deloitte ex-CEO over alleged audit lapses in books of IL&FS
  • No change in Bharti Infratel’s Q4 net amid merger with Indus Towers
  • ONGC arm delays plan to invest in Iran gas field after US sanctions
  • Jalan panel on RBI’s capital size to submit report by June
  • Approach SBI, Jet tells UK entrepreneur who evinced interest in buying the airline
  • Data on jobs, GDP being analysed with a new set of proxies: CEA
  • Govt procures 55.17 lakh tons of wheat so far this year
  • Forensic auditors indicate IGIDR used data shared by MCX to develop an ‘algo-trading strategy’
  • VRS package may save Rs 1,080 cr in annual salary tab: MTNL chief
  • Voda Idea rights issue receives bids for 1109 crore shares: NSE data
  • Nasdaq hits record, S&P nears all-time high on upbeat earnings
  • Delhi HC allows Alembic, Natco to export Bayer drug for specific purposes
  • SBI gets board approval to raise up to $2.5 billion in bonds.
  • RBI deputy governor B P Kanungo bats for capital account liberalization.
  • Maruti signals tough road, gives weakest growth forecast in the past 5 yrs.
  • Major lapses in Deloitte audit of IL&FS Financial Services, says SFIO.
  • Insolvency process: NCLT asks bank officials to appear in Sterling SEZ.
  • Ruchi Soya case: Lenders to meet on Friday to consider Patanjali’s offer.
  • US official insists on zero oil imports from Iran.
  • ‘High fuel prices may have led to a slowdown in auto sales’.
  • India sets a record foodgrains target of 291 million tonnes.
  • Wendt India’s PAT up 10% in FY19.
  • Hind Copper approves raising up to Rs 1,400 cr through QIP.
  • Glenmark gets nod to market nasal spray as OTC product in Russia.
  •  Microsoft edges toward $1 trillion valuation on results beat.

Key Due Dates:

  • GSTR-3B for the month of April 2019 is 20th May 2019.

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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Corporate and Professional Updates on 13th May 2019

Direct Tax Updates:

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  • ITR-3 (Excel Utilities) has been issued by CBDT on 10/05/2019 for assessment year 2019-20 (i.e. for financial year 2018-19) Now Tax audit can be done by Chartered Accountants for Individual & HUF.
  • Managerial remuneration: Where a company made provision for payment of managerial remuneration to assessee, same created an obligation on assessee to bear tax liability on salary.
  • The Income Tax Department will now share information such as reported turnover and gross income declared with the Goods and Services Tax Network to check tax evasion. The I-T Department and GSTN will enter an agreement on the modalities of information sharing. The Central Board of Direct Taxes has said the agreement will include provisions for confidentiality, a mechanism for safe preservation of data and timelines for furnishing information.

Indirect tax Updates:

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  • Hindustan Coca-Cola Beverages (HCCB) and distributors of FMCG and consumer durable firms have come under the lens of the goods and services tax (GST) authorities over so-called post-sale discounts offered by manufacturers.
  • GST payable on freight charges recovered from customers without issuance of consignment note. Case Name: In re Siemens Limited.
  • Gujarat High Court in the matter of Octagon Communications Pvt Ltd Vs Union of India allows filing of GSTR-3B without payment of GST.
  • Input Tax credit is admissible even if Consideration is paid through Book Adjustments. In re Senco Gold Ltd GST AAR West Bangal.

Other Updates:

  • Piramal Group plans to buy operational renewable power projects of Mytrah
  • NBFC crisis imminent, says Corp Affairs Secy
  • RBI study finds why there’s a dip in bank deposits
  • Positive sentiment continues for manufacturing sector in Q4, capacity utilisation up at 80%: FICCI survey
  • NCLT dismisses ICICI Bank’s plea to initiate insolvency proceedings against Era Infrastructure
  • FPIs press exit button, pull out Rs 3,207 crore from markets in May
  • DMart Q4 net profit rises 21.4% at Rs 203 crore but margins remain weak
  • PNB Housing Finance reports net profit of Rs 379.7 cr in Q4FY19; up 51%
  • Apple’s wait bears fruit with sub-continent’s biggest store in Mumbai
  • Reliance entry to digitise 5 million kirana stores by 2023: report
  • SRF to sell engineering plastics business to DSM India for ₹320 crore
  • PC Jeweller gets board’s nod for export division demerger
  • Tata group’s perfume brand Skinn eyes Rs 500-crore turnover by 2023
  • Vedanta’s benign March quarter results bring no solace for investors
  • Accor in talks to invest up to $50 million in Treebo Hotels
  • NCLAT dismisses insolvency plea against SpiceJet
  • Unilever considers $1 billion bid for skincare brand Drunk Elephant
  • Govt to set up panel under DGFT to look at steel availability for engineering exporters
  • Moody’s India probing IL&FS AAA rating by ICRA executives after whistle-blower complaint
  • US-China talks break up with no deal after Trump hikes tariffs on $200 billion in Chinese imports
  • Dalmia Bharat Q4 profit jumps over 2-fold to Rs 264 cr
  • Jaypee Infratech insolvency: Lenders ask NBCC to withdraw some conditions
  • COAI approaches DoT to stop sale of mobile signal boosters on e-commerce sites.

Key Due Dates:

  • GSTR-3B for the month of April 2019 is 20th May 2019.

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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