Corporate and Professional Updates on 25th April 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.
  • In a circular issued on April 23, the GST Council clarified that the IGST credit can be used in a flexible manner. The mandatory requirement to set off IGST liability remains as it is. Industry and observers have welcomed the move.
  • A company has output tax liability of Rs 1,000, Rs 500, and Rs 500 towards IGST, SGST, and CGST, respectively. Let us assume a case where IGST credit of Rs 1,500 is available in the electronic credit ledger for the company at the time of tax payment. According to the GST law, it has to use the IGST credit to pay off the IGST liability first, before using it to discharge SGST or CGST liabilities. This will erase the IGST liability, and reduce the available IGST credit to Rs 500.
  • The company can now use this credit to pay off SGST liability completely, or the CGST liability completely, or both CGST and SGST in any proportion it deems proper. It can use half of the available IGST credit to set off SGST liability and the remaining half to set off CGST liability, or it can use Rs 100 to set of SGST liability, and Rs 400 to set off CGST liability, or any other combination.

RBI Updates:

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  • RBI asks Banks & Financial Institutions to disclose their exposure to the Bankrupt Infra Lender “IL&FS” in their forthcoming earnings announcements and provisions in Q4 accounts. IL&FS and its 348 group companies owe over Rs 94,000 crore, of which over Rs 54,000 crore are owed to banks.
  • RBI is likely to lower the Approval Threshold in its revised circular for Resolving Stressed Assets to 66% of lenders by value from the current level of 100%. RBI is also likely to detail the mechanism for the buyout of exposure from banks that is not in compliance with the majority of the lenders on the Resolution Plan, Third-Party Security and Additional Funding.
  • RBI sells Entire Stake in NHB & NABARD to Govt. for ₹ 1,470 cr. in total. With this, the Government now holds 100% stake in both these Financial Institutions. The transactions were completed on February 26 and March 19.
  • RBI Committee may recommend that all Government Payments & Public Payments to citizens should be made digitally. The move seeks to ensure higher adoption of digital payments among the masses. The RBI panel on digitization is also likely to press for encouraging citizens to pay income tax and challans digitally.

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
  • ISB to set up repository to store all public data
  • Companies get more time to submit ACTIVE form
  • Ipca Labs inks pact to acquire Ramdev Chem for Rs 108.5 cr
  • RBI may allow 66% lenders’ approval for resolution of stressed assets
  • IndiGo, Tatas protest govt’s basis for allotting Jet Airways slots
  • Sebi bars cash-strapped Hotel Leelaventure from asset sale to Brookfield
  • 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
  • After Lee Fixel exit, Tiger Global prowls for B2B startup deals in India
  • Jet Airways says will validate refund claims in 45 days
  • Ericsson moves Supreme Court against returning Rs 580 crore to Anil Ambani’s RCom
  • UltraTech Cement Q4 net profit at Rs 1,014 crore
  • US-based Avaya announces partnership with Standard Chartered bank
  • Cyberattacks to cost firms $5.2 trillion in next 5 years: Accenture
  • Customer complaints against banks surge 25% to 1.63 lakh in FY18
  • Office space worth $35 bn can be listed under REIT: JLL India
  • RBI too joins global peers in raising gold bullion reserves
  • Non-filers of GST returns to be barred from generating e way bills from June 21
  • Rupee falls by 24 paise on strong dollar demand
  • Sensex rallies 490 points; Nifty reclaims 11,700-mark
  • Self-assessed GST return permitted.

Key Due Dates:

  • 20-04-2019 – GSTR-3B for the m/o March 2019.
  • 30-04-2019 – GSTR-1 for the quarter ending March 2019 for taxpayers with Annual Aggregate turnover upto than 1.50 Crore.
  • 30-04-2019 – Deposit of TDS/TCS for m/o March 2019.
  • 30-04-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in month of March’19
  • 30-04-2019 – Due date for uploading declarations received from recipients in Form. 15G/15H during the quarter ending March, 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 4th April 2019

Direct Tax Updates:

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  • India and US will be signing an information-sharing agreement before the end of the fiscal year. Companies headquartered in the US but having operations and taxability in India now need not file country-by-country (CbC) reports in India, according to a pact signed between India’s tax department and the US
  • In a press release, the Central Board of Direct Taxes (CBDT) has clarified that for such international companies, filing CbC reports in the US would be  These would then be shared with the Indian tax authority, the CBDT, under an information-sharing agreement which will be signed between the countries before the end of the fiscal year. This will reduce the compliance burden on firms. The deadline for furnishing the CbC report was earlier extended.

Indirect Tax updates:

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  • If any invoices have been skipped to be entered, you can simply enter them in respective columns, along with current month’s invoices, entering the original Invoice dates.
  • Amendments in B2B : These can be done thru Table No. 9A of GSTR-1. You need to select the year FY 2017-18, enter the invoice number, and make appropriate amendments after clicking on ‘Amend Invoice’, under tab ‘Uploaded by Taxpayer’
  • Amendments in Exports : These can be done thru Table No. 9A of GSTR-1. You need to select the year FY 2017-18, enter the invoice number, and make appropriate amendments after clicking on ‘Amend Invoice’, under tab ‘Uploaded by Taxpayer’
  • Amendments in B2C Large : These can be done thru Table No. 9A of GSTR-1. You need to select the year FY 2017-18, enter the invoice number, and make appropriate amendments after clicking on ‘Amend Invoice’, under tab ‘Uploaded by Taxpayer’
  • Amendments in B2C Small : These can be done thru Table No. 10 of GSTR-1. You need to select the year FY 2017-18, enter the relevant month and Original Place of Supply (POS), and make appropriate amendments after clicking on ‘Amend Details’

Other Updates:

  • Banks can now refer defaulters to NCLT.
  • BlackRock begins its biggest organisational overhaul in years.
  • Britain to seek further delay to Brexit: Theresa May.
  • SC order on RBI circular negative for banks, may defer debt resolution.
  • Rel Jio transfers fibre and tower infrastructure to InvITs.
  • Tea board fixes ₹98/kg as green leaf price for April.
  • NTPC’s installed capacity at 55,126 MW.
  • MG Motor India in talks with payment gateways.
  • EU drags India to WTO over import duties on ICT products.
  • Security Exchange Board of India issues circular on appointment of administrators.
  • Insolvency law’s objective is reorganisation of defaulting firms, not recovery of dues.
  • Titan increases stake in CaratLane with Rs 99.99 cr investment.
  • Shapoorji Pallonji Infra sells 194 MW solar portfolios to Spring Energy.
  • Aurobindo Pharma, Lupin recall drugs in US market.

Key Due Dates:

  • 10-04-2019 – GSTR 8 for E-Commerce operators for the m/o March 2019.
  • 10-04-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o March 2019.
  • 11-04-2019 – GSTR-1 for the month of March 2019 for taxpayers with Annual Aggregate turnover More than 1.50 Crore.
  • 13-04-2019 – GSTR-6 for Input Service Distributor.
  • 18-04-2019 – Quarterly return for taxpayers opting for Composition Scheme(GSTR-4)
  • 20-04-2019 – GSTR-3B for the m/o March 2019.
  • 30-04-2019 – GSTR-1 for the quarter ending March 2019 for taxpayers with Annual Aggregate turnover upto than 1.50 Crore.
  • 14-04-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o Feb’19.
  • 30-04-2019 – Deposit of TDS/TCS for m/o March 2019.
  • 30-04-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in month of March’19
  • 30-04-2019 – Due date for uploading declarations received from recipients in Form. 15G/15H during the quarter ending March, 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 11th March 2019

Indirect Tax Updates:

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  • Indian businesses that paid most of their goods and services tax liability using input tax credit or reported a significant variation in turnover are being queried by taxmen, a move that has irked industry and prompted it to petition the authorities against such tactics.
  • Tax officials have sent emails seeking information from businesses that paid over 95% of their dues using input tax credit to ascertain the key factors responsible for subdued GST collections.
  • These queries relate to a large variation in turnover reported, negative growth in central GST liability and a wide divergence in input tax credit between GSTR 2A and GSTR3B.
  • In some centers, businesses have been even asked to furnish tax payment challans. GSTR 2A and GSTR3B are return forms. The first includes all information related to purchases, the second is a simplified return form aimed at making life easier for filers. GST was rolled out on July 1, 2017.

Other Updates:

  • Finance Ministry eyeing part of non-core asset sale proceeds of CPSEs as dividend.
  • China, US reached consensus on exchange rate issues.
  • Govt amends SEZ rules in three critical areas.
  • IDBI Bank considering renewal of term for current MD.
  • Savings of millions of armymen now junk due to IL&FS.
  • FinMin may borrow 60% from market for H1.
  • PNB: Agencies to probe who helped Nirav set up UK.
  • Anil Ambani’s Reliance Capital looks beyond Nippon Life for AMC stake.
  • Naresh Goyal to shed stake to 17% in Jet bailout plan; lenders to hold 30%.
  • India seeks Saudi investment in strategic oil storage to resurrect refinery.
  • Govt scraps 6th, 7th rounds of coal mine auction; sale of 19 blocks on hold.
  • Magma Fincorp expects to close FY19 with 20% growth in disbursals.
  • CBDT allows offshore fund managers to operate from India.
  • EPF transfer on job change to become automated from next fiscal.
  • ‘Access to formal credit increases income of farmers’.
  • Suven Life inks pact to buy assets of Rising Pharma units.
  • DLF to launch over Rs 3,000 cr QIP by June.
  • India targets Saudi investment in building strategic oil reserve.
  • US, China have reached consensus on many vital issues.
  • FPIs invest over 2,700 crore in five sessions on global cues.
  • Essar Steel, Binani insolvency resolutions get official clean chit top body says no contradiction.
  • CII releases roadmap for 8% growth in coming years.
  • India-SICA talks to take place soon to help promote bilateral trade and investments.
  • High value cars, jewellery to become cheaper as TCS to be excluded in computing GST.
  • Irdai panel suggests host of steps for speedy settlement of insurance claims.
  • IRDAI issues norms on conflict of interest.

Key Due Dates:

  • 10th March 2019- Monthly GST-TDS/TCS payment in form GSTR-7 for the month of February 2019 under GST.
  • 11th March 2019- GST Filing of returns by registered person with aggregate turnover more than 1.50 crores (GSTR-1) for February 2019.
  • 15th March 2019- Due date for forth and last installment/ entire amount of advance tax for Assessee having presumptive basis income,
  • 20th March 2019 – GST monthly return for the month of February 2019 (GSTR-3B)
  • 15th March 2019- Due date for PF and ESIC payment.
  • 25th March 2019- Due date for filing monthly return of PF.
  • 30th March 2019- Challan cum statement for TDS u/s 194 IA for immovable property and 194 IB for rent payment for February 2019.
  • 31st March 2019 – PT payment for the month of February 2019.
  • 31st March 2019 – Due date for filing of GSTR 3B and 1 from July 2017 to September 2018 without late fees.
  • 31st March 2019 – Due date for filing of ITC 4 under GST for claiming Input tax credit on goods sent for job works for the period July 2017 to December 2018.
  • 31st March 2019 – Due date for Annual return under PT from April to March 2019.
  • 31st March 2019 – Last date for linking Aadhar with PAN.

Quote of the Day:

Professionalism: It’s NOT the job you do it’s HOW you DO the job.”

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 on 8th March 2019

Indirect Tax Updates:

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  • In a major relief to manufacturers, distributors, marketers and direct sellers of consumer products, the government on Thursday clarified the extent of tax liability and the eligibility of input tax credit on promotional offers such as free samples and “buy one, get one free”. Industry players were apprehensive about incre­ased litigation from tax audit authorities if they marketed their products as free, beca­use of ambiguity on such offers. Now, the notification by the Central Board of Indirect Taxes and Customs makes it clear that tax would be applicable and input tax credit would be available for the entire package sold, including the free items.
  • Experts said the clarification will bring ease of marketing and save litigation troubles for the industry, but most importantly for the FMCG and pharma sectors where such offers are common. In the case of free samples, such as the ones medical representatives of pharma companies provide to doctors, they would not be considered as supply, and would not attract tax. For offers such as a discount of 10 per cent for a purchase of more than Rs 1,000 and of 20 per cent for a purchase of more than Rs 2,000, the discounted amount would be excluded to determine the value of supply. Such discounts are generally passed on by the supplier through credit notes. But this is applicable only when the discount is made clear at the time of supply. When it is provided after the sale, it is termed as secondary discount the discounted value should not be excluded to calculate the value of supply.
  • “GST would be paid on the price recovered from the customer without reversing the input credit. Input credit will only be reversed in case of ‘free samples’ and ‘gifts’ which is specifically mentioned in the law,” said Pratik Jain, indirect tax partner at PwC India.
  • To give composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs. A notification should come into force on the 1st day of April, 2019.

Other Updates:

  • Power Min rules out mega consolidation of power PSUs.
  • RIL leased 4,000 acre land from Navi Mumbai SEZ for economic hub.
  • 2% interest subsidy for crop loans.
  • Eight sectors to add over 10 crore jobs by 2025.
  • Jaguar Land Rover global sales decline 4.1 pc in Feb.
  • Wipro shedding low-margin and non-core units to match its peers.
  • Lupin gets USFDA’s nod to market its drug for cholesterol lowering.
  • Cabinet okays 5-year plan for ‘phased manufacturing’ of EV batteries.
  • Reliance Capital to cut its outstanding debt by Rs 12,000 cr in four months.
  • Cabinet clears Rs 26,000 cr investments for 2 thermal, 1 hydro power plants.
  • Contracts signed for 23 blocks under Discovered Fields – II.
  • India cotton exports to fall 27 per cent.
  • Cabinet clears Rs 3,355 crore interest subsidy for sugar sector.
  • Marksans Pharma gets 8 observations from USFDA for its Goa facility.
  • India is next growth engine of world: Suresh Prabhu.
  • JSL gets Govt nod for private industrial estate.
  • FinMin notifies 1 April as date for availing increased GST exemption limit.
  • L&T Finance closes NCS issue on second day, raises 2,228 crore.
  • China buys Indian cotton as prices at home jump.
  • Government tells Jet Airways not to cause hardship to travelers.
  • India’s goods export to hit $330 bn in 2018-19: Suresh Prabhu.
  • Swift blames short-comings in automated payment processes at banks.
  • ONGC wins back Chinnewala Tibba gas field; contracts signed for 23 oil & gas fields under DSF-II.
  • Cabinet approves NHPC’s acquisition of Lanco’s Teesta hydro-electric project.
  • Jan Dhan Accounts: Total deposits set to cross Rs 1 lakh cr.
  • Disinvestment on fast track: PSU stake sale pricing, timing to be decided quickly with new mechanism.
  • NPCI issues 64 million RuPay cards, aims to grow international acceptance.
  • NGT imposes Rs 500 crore fine on Volkswagen for using emission cheating devices.
  • India wants to keep Iran oil purchases at 300,000 bpd in extended waiver.

Key Due Dates:

  • The Due date of GSTR-1 for the monthly return fillers is 10th March 2019.
  • The Due dates of GSTR-3b are 20th March 2019.
  • 15th March 2019- Due date for forth and last installment/ entire amount of advance tax for Assessee having presumptive basis income,
  • 20th March 2019 – GST monthly return for the month of February 2019 (GSTR-3B)
  • 15th March 2019- Due date for PF and ESIC payment.
  • 25th March 2019- Due date for filing monthly return of PF.
  • 30th March 2019- Challan cum statement for TDS u/s 194 IA for immovable property and 194 IB for rent payment for February 2019.

Quote of the Day:

The professional has learned that success, like happiness, comes as a by-product of work. The professional concentrates on the work and allows rewards to come or not come, whatever they like.

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 on 7th March 2019

Direct tax Updates:

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  • The Central Board of Direct Taxes has ordered “best judgment assessment” of individuals who failed to comply with the income tax department’s repeated alerts on bank deposits made soon after demonetisation. The income tax department had sent out SMSes, emails and also issued notices to around 300,000 individuals, who made substantial cash deposits after the November 2016 demonetisation, to furnish income-tax returns for the assessment year 2017-18. But, around 87,000 taxpayers failed to comply with those notices.
  • The apex body for direct taxes has now instructed assessing officers to conclude “best judgment assessment proceedings” to deal with such noncompliance. The CBDT has authorised the AO to assess the total income of the taxpayer to the best of his judgement. This is usually done in cases where the taxpayer fails to respond to the queries of the AO. The board has laid out broad standard operating procedures for these assessments. Updated details of the taxpayer such as address, bank accounts and transaction records would be provided to the AO along with an internal guidance note for verification of cases and framing of assessments.

Indirect Tax Updates:

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  • NIL” GSTR-9 Return can be filed, if you have not made any outward supply Not received any inward supplies (commonly known as purchase) of goods/services; No liability of any kind and not claimed any Credit during the Financial Year; And not received any order creating demand; and not claimed any refund during the Financial Year.
  • GSTR-9 can be filed online. It can also be prepared on Offline Tool and then uploaded on the Portal and filed.
  • Annual return in form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year.
  • All applicable statements in Forms GSTR-1 and returns in Form GSTR 3B of the financial year shall have been filed before filing GSTR-9.
  • Annual return in Form GSTR-9 once filed cannot be revised.
  • Computation of ITC based on GSTR-2A has been auto-populated by the System based on GSTR-1 filed by your corresponding suppliers up to 29/01/2019. Next auto-updation of GSTR-2A will be carried on 01/03/2019. If you have some missing credits in GSTR-2A, you may like to wait till next updation.
  • Download the draft system computed GSTR-9, summary of Form GSTR-1 and GSTR-3B for the financial year by clicking on relevant buttons. This is only for reference for filling the return, and will facilitate in providing details in actual tables.

Other Updates:

  • India may move to WTO against US over import sops.
  • DHFL didn’t create shell companies.
  • CBDT notifies relaxed norms for start-ups.
  • OECD cuts global growth forecast over trade, Brexit uncertainty.
  • Biocon gets 6 observations from USFDA after inspection of its Bengaluru plant.
  • NHPC pays Rs 527 crore dividend to govt.
  • US trade deficit surges to 10-year high in 2018 at $ 621 bn.
  • SC decision puts banks at risk of adding $25 bn to power sector NPAs.
  • BoB, Dena, Vijaya Bank merger could open Rs 1,000 cr IT outsourcing window.
  • Rs 25,000-cr infusion not enough to stabilise Bharti Airtel’s rating.
  • Grab raises $1.46 bn from SoftBank Vision Fund; $4.5 bn secured so far.
  • Sugar production around 248 lakh tonnes till Feb 28.
  • Kerala govt moves HC against airport contract granted to Adani.
  • Bombay HC asks NSL to deposit 138 cr in MMBL-royalty issue.
  • Philip Morris circumvented FDI ban on cigarette manufacturing.
  • India requires pragmatic compulsive licensing system.
  • Govt bans import of solid plastic waste by SEZs, EOUs.
  • Nomura sees GDP growth target below 7% in 2019-20.
  • CBI seeks additional documents from ICICI Bank in Videocon loan default case.
  • European Union says ‘no solution’ yet to break Brexit deadlock.
  • Banks encash bond holdings to service rising demand for credit.
  • India needs more globalization to boost wages: World Bank-ILO report.
  • Donald Trump acts tough on India; US to withdraw zero duty import benefit on 1,784 items.
  • February peak power demand rises 3% year-on-year.
  • DoT panel divided on E&V band spectrum allocation.
  • NELCO gets in-flight, maritime connectivity licence from DoT.
  • Rupee rises for 2nd day; up 21 paise to 70.28 vs USD on easing crude prices.
  • Sensex spurts 193 points; Nifty closes above 11,000-mark.
  • OECD lowers global growth forecast over trade tensions.

Key Due Dates:

  • The Due date of GSTR-1 for the monthly return fillers is 10th March 2019.
  • The Due dates of GSTR-3b are 20th March 2019.
  • 15th March 2019- Due date for forth and last installment/ entire amount of advance tax for Assessee having presumptive basis income,
  • 20th March 2019 – GST monthly return for the month of February 2019 (GSTR-3B)
  • 15th March 2019- Due date for PF and ESIC payment.
  • 25th March 2019- Due date for filing monthly return of PF
  • 30th March 2019- Challan cum statement for TDS u/s 194 IA for immovable property and 194 IB for rent payment for February 2019.

Quote of the Day:

The professional has learned that success, like happiness, comes as a by-product of work. The professional concentrates on the work and allows rewards to come or not come, whatever they like.

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 on 1st March 2019

Direct Tax Updates:

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  • Income tax department will issue only e-refunds and that too these will be credited only to bank accounts linked with PAN.
  • In addition to that, you are also required to pre-validate your bank account with the income tax department e-filing portal to receive tax refund.
  • The income tax refunds will be credited only to bank accounts which are linked to PAN from March 1, 2019. If your PAN is not yet linked with your bank account, you must provide the details of the same to your bank branch to get an income tax refund.
  • The finance ministry has asked the direct tax code (DTC) panel to revise the existing income-tax slabs, especially in the 20 per cent bracket. The panel has sought three months to incorporate the suggestions.
  • “The current tax rates are ambiguous in nature, especially the lower slabs. As suggested we will work towards harmonising the tax rates, currently prone to interpretation. We will seek more expert voices and weigh the circumstances to incorporate the changes in line with the suggestions we have received,” said the official cited above. Under the current I-T slabs, income up to Rs 2.5 lakh is exempt from tax, those earning up to Rs 5 lakh pay 5 per cent, and those earning up to Rs 10 lakh have to pay 20 per cent tax. Those with income above Rs 10 lakh have to pay 30 per cent tax.
  • Those with income up to Rs 5 lakh will not have to pay tax, as they have been given tax credits in the interim Budget passed by Parliament. If various investment schemes are also factored in, those with income up to Rs 10 lakh might also escape the tax net in the next financial year. Sources said with elections round the corner, the government does not want to bring in the long-pending report.

Indirect tax Updates:

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  • The government has detected GST evasion of Rs.20,000 crore so far this fiscal and will take more steps to check frauds and increase compliance, a senior tax officer said on Wednesday. Central Board of Indirect Taxes and Customs Member John Joseph further said the department would soon call a meeting of the representatives of the real estate sector to understand transition issues faced by the sector post reduction in GST rates. The GST Council earlier this week decided to cut tax rates on under-construction apartments and affordable housing to 5% and 1%.
  • The builders will not be able to claim credit for the taxes paid on inputs, like steel, cement. The earlier GST rate on under-construction apartments and affordable housing was 12% and 8% with input tax credit (ITC), respectively. On demand for giving ITC relief to the builders of the under-construction flats which are already built but not yet sold to buyers.
  • The recent exemption offered from the goods & services tax levied on development rights, including transferable development rights, development rights certificates and joint development agreements. Realtors’ body, the National Real Estate Development Council, has written to the Ministry of Housing and Urban Affairs seeking clarity.
  • The GST Council proposed that intermediate tax on development rights will be exempted only for such residential projects on which GST is payable. The government decided to more than halve the GST rates for under-construction projects to 5% from 12%. The GST Council removed the input tax credit, while GST on affordable housing was reduced to a marginal 1% along with expanding definition of such homes. Ready properties that have received occupancy certificate do not attract GST.

RBI Updates:

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  • The Reserve Bank of India Tuesday said it would shortly put into circulation new-series Rs 100 denomination bank notes bearing the signature of its Governor Shaktikanta Das.
  • The RBI will shortly issue Rs 100 denomination bank notes in Mahatma Gandhi (new) series bearing the signature of Das, the central bank said in a release.
  • The design of these notes is similar in all respects to the Rs 100 bank notes in circulation currently.

SEBI Updates:

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  • The Securities and Exchange Board of India plans to tighten takeover norms applicable to companies undergoing proceedings under the Insolvency and Bankruptcy Code. Sources said the capital markets regulator would do away with the provision that allowed a ‘competent authority’ to exempt an acquirer from the requirement of an open offer. Only a court or a tribunal would be allowed to provide such exemptions, they added.
  • Experts said the move was aimed at reducing ambiguity and curbing the misuse of the regulations. While at present the rules allow a “competent authority” to provide an open offer exemption, the regulations have not defined who act as a “competent authority”, leaving it can open for interpretation. Typically, a competent authority can be a sector regulator or ministry.

Key Due Dates:

  • Challan-cun Statement in respect to tax Deducted under sec. 194IB for the month of Jan is 2nd March 2019.
  • Payment of TDS/TCS collected /deducted in the month of February is 7th February 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 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 on 27th February 2019

Direct tax updates:

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  • Candidates contesting all forthcoming elections will not only have to declare their income-tax returns of the last five years, offshore assets and PAN details, but also those of their spouses and family members as announced by the Government.
  • Form 26 is filed along with the nomination papers giving details about the criminal antecedents, if any, PAN, income tax return of self, spouse and dependent. It is also used to provide a list of assets and liabilities of a candidate, spouse and all dependents. As per the new notification, offshore assets will include the details of deposits or investments in foreign banks, any other body or institution abroad. It will also include details of assets and liabilities abroad.

Indirect Tax Updates:

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FAQ’s on GST:

Ques. Would forward contracts in commodities or currencies be within the ambit of definition of ‘supply’?

Ans. A forward contract is an agreement, executed, to purchase or sell a predetermined amount of a commodity or currency at a pre-determined future date at a pre-determined price. The settlement could be by way of actual delivery of underlying commodity/currency or by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date. Where the settlement takes place by way of actual delivery of underlying commodity/currency, then such forward contracts would be treated as normal supply of goods and liable to GST. Where the settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date, the same would be falling within the purview of ‘securities’ as defined in Section 2(101) of the CGST Act, 2017. As securities are neither ‘goods’ nor ‘services’ as defined in the CGST Act, 2017, future contracts are not chargeable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST.

Ques. What is the nature of income earned / expended in instruments like repos and reverse repos and is such income taxable under GST?

Ans. Section 45U(c) of the RBI Act, 1934 defines ‘repos’ as an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed. Section 45U (d) of the RBI Act, 1934 defines ‘reverse repos’ as an instrument for lending funds by buying securities with an agreement to re-sell the securities on a mutually agreed future date at an agreed price which includes interest for the funds lent. Repos and reverse repos are financial instruments of short term call money market that are normally used by banks to borrow from or lend money to RBI. Page 14 of 32 The margins, called the repo rate or reverse repo rate, in such transactions are nothing but interest charged for lending or borrowing of money. Thus they have the characteristics of loans and deposits for interest and are accordingly exempt from GST.

Ques. Whether assignment or sale of secured or unsecured debts is liable to GST?

Ans. Section 2(52) of the CGST Act, 2017 defines ‘goods’ to mean every kind of movable property other than money and securities but includes actionable claim. Schedule III of the CGST Act, 2017 lists activities or transactions which shall be treated neither as a supply of goods nor a supply of services and actionable claims other than lottery, betting and gambling are included in the said Schedule. Thus, only actionable claims in respect of lottery, betting and gambling would be taxable under GST. Further, where sale, transfer or assignment of debts falls within the purview of actionable claims, the same would not be subject to GST Further, any charges collected in the course of transfer or assignment of a debt would be chargeable to GST, being in the nature of consideration for supply of services

Other Updates:

  • April-Jan fiscal deficit at 121.5% of full-year target.
  • SBI calls lenders’ meeting with Naresh Goyal, Etihad.
  • India delays levying retaliatory tariff on U.S. goods.
  • Trai to decide rules for internet calling firms soon.
  • JM files insolvency case against Hotel Leelaventure.
  • True north buys 51% stake in Max Bupa from Max India.
  • After tough times, future is bright for telcos.
  • RBI removes Allahabad Bank, Corp Bank, Dhanlaxmi from PCA framework.
  • ED attaches Nirav Modi’s properties worth Rs 147 crore in PNB fraud case.
  • Adani Group emerges highest bidder for Guwahati airport.
  • NBFC crisis: $22 billion already gone, but more dark days likely ahead.
  • IOC, HPCL win maximum areas under tenth round of city gas bidding.
  • ArcelorMittal sees major capex risk in Essar Steel acquisition.
  • India’s growth momentum slowed down in late 2018.
  • Global, national AAA ratings are not comparable.
  • Govt eases import norms for prototype devices.
  • Mustard crop seen up 19% on higher yield.
  • BHEL’s claims: NCLAT dismisses Monnet Power’s petition.
  • E-wallet companies welcome extension in KYC deadline.
  • Future Group’s too many diversifications were a mistake.
  • Airtel won’t buy 5G spectrum at current prices, says Sunil Mittal.
  • Copper slips from 8-month high, dwindling stockpiles limit losses.
  • Vedanta sells down Sterlite copper concentrate stockpiles.
  • Rating action DHFL’s debt downgraded by Icra.
  • Finance ministry asks PSBs to submit asset sale details to ARCs.
  • Northeast gas grid project likely to get Rs 5k crore from Centre.
  • Jaypee Infra creditors vote against another forensic audit demand.
  • Prabhu for extending interest subsidy to more products from chemical sector.
  • India, Italy discuss ways to promote trade, investments.
  • Kotak Mahindra Bank raises foreign investment limit.
  • Sensex ends 240 points lower on rising India-Pak tension.
  • Iran buys Indian raw sugar for the first time in five-years

Key Due Dates:

  • Due date of TDS Return for the month of January 2019 is 28th February 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 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 on 20th February 2019

Direct Tax Updates:

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  • The government announced a series of changes aimed at freeing investors and entrepreneurs from the so-called angel tax that’s roiled India’s startup ecosystem. It raised the exemption threshold and kept investments by listed companies of certain minimum size, venture capital funds and non-residents in startups outside the ambit of the tax.
  • A notification issued by the government also widened the definition of startups to benefit a larger number of innovators and protect them from the tax. An entity that has been in operation for up to 10 years from its date of incorporation or registration will be considered a startup instead of the current seven years.

Excluded Investors:

  • The investment limit was raised to Rs 25 crore from Rs10 crore now for availing of tax exemption. “Considerations of shares received by eligible startups for shares issued or proposed to be issued by all investors shall be exempt up to an aggregate limit of Rs 25 crore.
  • The Rs 25 crore limit will exclude funds from certain sources. These include non-residents, Category 1 registered alternative investment funds and frequently-traded listed companies with a net worth of Rs 100 crore or turnover of at least Rs 250 crore. The development comes in the wake of startups having been served demands for taxes on angel funds received by them.

Tax Scrutiny:

  • The new norms don’t address cases in which tax demands have already been raised. “In cases where demand notices have been raised, we have directed the tax officers to not enforce recovery of demand.
  • The increase in investment limit to Rs 25 crore and self-declaration procedure with DPIIT are game changers for the startup fraternity.

Indirect Tax Updates:

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  • Compulsory mentioning of the Place of Supply in case of Interstate supply to Unregistered Person.
  • CBIC mandates the reporting of all inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1.
  • The Central Board of Indirect Taxes & Customs in its Circular No. 89/08/2019-GST dated February 18, 2019 it shows that the registered persons making inter-State supplies to unregistered persons, composition taxable persons and UIN holders shall report the details of such supplies along with the place of supply of FORM GSTR-3B and the details of all inter-State supplies made to unregistered persons where the invoice value is up to Rs 2.5 lakhs are required to be reported in Table 7B of FORM GSTR-1 as mandated by the law.
  • Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act.

Other Updates:

  • RBI May launch exchange traded fund of PSU bank stocks next fiscal.
  • I-T for charging GST on logo use by subsidiaries.
  • Yes Bank denies any wrong-doing in making report public.
  • National electronics policy eyes 1 cr jobs.
  • Arcelor Mittal buys back shares worth $89 million.
  • Walmart Q4 profits jump 69.5% to $3.7 bn, top estimates.
  • Irdai asks all non-life insurers for a uniform standard health product.
  • WTO pegs global trade at 9-yr low; India exports may face repercussions.
  • Govt raises investment limit for angel tax concession to startups.
  • SIP closure ratio at 18-month high, Dec applications slip to 750,000.
  • Honda to close only UK factory, blames global trends.
  • Reliance Power promoter’s eye 2,500 cr from sale of 18% stake.
  • Vedanta says no revised bid for Essar Steel.
  • I-T dept raids Divi’s Lab premises.
  • Wheat output may cross 100 mt.
  • SEA in pact with Argentinian body to boost vegoil trade.
  • ABB bags 270 cr. orders from Railways.
  • reverts back to old system of awarding oil and gas blocks.
  • Cabinet clears promulgating fresh ordinance for company’s law amendments.
  • SC to pronounce order on Ericsson’s contempt plea against RCom chief Anil Ambani.
  • Jaypee Infra’s promoter makes second attempt to settle dues.
  • Bad loans: 19 PSBs write off nearly Rs 41,000 crore in Q3.
  • Insolvency process: Gaur offers to clear Jaypee Infra dues of Rs 8,358 crore.
  • Vedanta to file fresh writ in High Court Sterlite Copper row.
  • French aerospace firm Safran to have engine plant in Hyderabad.
  • JSW Cement to invest Rs 2,000cr to take capacity to 20mt by’20.
  • Sensex falls for 9th straight session, ends 146 points lower.
  • India’s fuel demand rose 6.4 per cent year-on-year in January.
  • Brent oil eases from 2019 highs as markets await trade talk’s outcome.
  • No PAN is required for transfer of equity shares of listed entities executed by non-residents to their Immediate Relatives.
  • Now INDIAN COMPANIES who are in CIRP process can use ECB to repay their rupee term Loan.

Key Due Dates:

  • Due dates of GSTR-3B (summary return of January) for the month of January 2019 is 20th February 2019.

Quote of the day:

“A professional is someone who can do his best work when he doesn’t feel like it.”

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 On 19th February 2019

Direct Tax Updates:

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Case Law On Income Tax:

  • Shrivardhan Mohta Vs. Union Of India

Prospective application of Black Money – the Act of 1961 does not impose a punishment of imprisonment while the Act of 2015 does. In such circumstances, it cannot be said that, the petitioner has been sought to be punished twice for the same offence – Calcutta High Court.

  • M/S. Vasan Healthcare P Ltd. Vs. The Additional CIT Central Range-2, Chennai

Penalty u/s 271D and 271E – If loan in cash is taken once or twice, in exceptional exigencies, may be a ground for interference, but when the fact remains that a lender not even licensed was illegally giving loans only in cash and accepting repayment in cash cannot be a ground for condonation of regular transaction with such unauthorised lender – Madras High Court.

  • DCIT, Circle 19 (1) New Delhi Vs. M/S Oxigen Services(P) Ltd.

Depreciation on POS terminals – assessee was entitled to the depreciation at 60% on the ground that the equipment was akin to a computer – ITAT Delhi.

  • M/S. Jaya Permai Enterprise(India) Pvt. Ltd. Vs.ITO, Ward- 15 (2) (2) Mumbai

Levy of penalty levied u/s 271(1)(c) – disallowance under section 40(a)(ia), does not amount to concealment of income – No penalty – ITAT Mumbai.

Indirect Tax Updates:

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  • Two new features in the Official Website including System Generated Acknowledgement of Application of Appeal and the Population of Data from EWB System into Form GSTR-1.
  • The Directorate General of Goods and Services Tax Intelligence has unearthed a fraud worth a whopping Rs 1,000 Crore in the state of Chhattisgarh. The GST officials said that such traders are on their radar and the GST intelligence department is keeping a close tab on the tax evaders.
  • GOM panel set up to Review Tax Rate on lottery favours a uniform GST rate of either 18% or 28%– a final call on which would be taken by the GST Council at its meeting on February 20. Currently, a State-Organised Lottery attracts 12% GST while a State-Authorised Lottery attracts 28% tax.
  • CBIC issues Clarification regarding tax payment made for Supply of Warehoused Goods while being deposited in a Customs Bonded Warehouse for the period July, 2017 to March, 2018.
  • CBIC vide it’s Circular No:89 dated 18th February 2019 seeks to clarify situations of mentioning details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1.

RBI Updates:

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  • The Reserve Bank of Indiawill pay Rs.28,000 crore as interim dividend to the government, which will help the Centre meet its revised budget estimates that include an allocation for the first ever income transfer to farmers and burnish its fiscal credentials ahead of the general elections.
  • RBI in its Board Meeting on February 18 decides to transfer Rs 28,000 Crore as Interim Dividend to the Govt for the period of July to December 2018. The interim surplus has been decided after a limited Audit Review and after applying the Economic Capital Framework.
  • RBI Governor Shaktikanta Das will meet top officials of state-run banks and Private Sector Lenders later this month to discuss the issue of transmission of the RBI’s rate cut move to the wider economy.
  • RBI will inject Rs 12,500 Crore into the system through Purchase of Government Securities on Thursday which is Feb 21 to increase liquidity. The purchase will be made through Open Market Operations.

Key Due Dates:

  • Due dates of GSTR-3B (summary return of January)for the month of January 2019 is 20th February 2019.

Quote of the day:

It’s NOT the job you DO It’s HOW you DO the job.”

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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