Direct Tax updates:
- The Income Tax Act, automating tax collection and return processing and making the process user-friendly are priorities for the National Democratic Alliance (NDA) government The Narendra Modi government, which has undertaken several measures to curb tax evasion, is working on changes to the income tax law.
Indirect Tax Updates:
FAQ’s on GST:
QUES. Is it necessary for Banks / insurers to report the details of invoices in Table 13 of GSTR-1?
ANS. Rule 54(2) of the CGST Rules, 2017 provides that in case of an insurer or a banking company or a financial institution, including a non-banking financial company, the tax invoice or any other document in lieu thereof, may not be serially numbered. But this does not mean that such document will not have any identification number which is required for the purpose of matching. The said entities are, therefore, required to provide the details in column 5 to 7 (but not in column 3 & 4) of the table 13 of FORM GSTR-1.
Ques. When a banking company is not required to serially number its invoices / document for supply of its services, how will the service recipient get credit for GST on the services provided by the bank?
ANS. Under Rule 54(2) of the CGST Rules, 2017 a banking company or a financial institution including a NBFC or an insurer can issue an invoice or any other document in lieu thereof whether or not serially numbered and whether or not containing the address of the recipient but containing other information as mentioned under Rule 46. There is no restriction on the invoice/document being a consolidated invoice/document but it must bear an identification number, which need not necessarily be serially numbered. The recipient of service will get the credit for GST so long as the bank, etc. uploads the details of the invoice / document under that number with GSTIN of the recipient in its statement if FORM GSTR-1
- It is expressed by Reserve Bank of India (RBI) that the concerns over the market regulator’s proposal to merge investment route of non-resident Indians (NRIs) with foreign portfolio investor (FPI) route, said three people privy to the development. The central bank is against the plan in its current form because the regulations that govern both the modes of inflows are separate, and clubbing the two would cause a regulatory haze. RBI is concerned over what rules would apply to the non-market investments made by NRIs through the non-resident external Rupee (NRE) route if they were merged with the foreign portfolio route.
- The issue was raised by central bank officials in a meeting of the HR Khan Committee appointed by the Securities and Exchange Board of India Sebi had approved proposals of the HR Khan Committee including the merger of NRI and FPI route after the regulator’s circular on April 10 that introduced additional curbs on domestic investments by NRIs sparked panic among offshore funds. FPIs can buy or sell shares in the Indian markets through their custodians, mainly foreign banks, NRIs can make the investments only through their designated banks. These investments are regulated by RBI’s portfolio investment scheme (PIS). The NRE accounts are also used for other investment purposes including real estate purchases and fixed deposits.
- There are several practical challenges with the implementation of the FPI-NRI merger and more than two lakh NRIs who hold both fixed deposits and market investments will be impacted. According to the rules of RBI an FPI can hold up to the sectoral cap applicable in a company. In several sectors, 100% FPI investment is allowed; while in sectors such as banking, off-shore funds can own up to 74%. NRIs together cannot own more than 24% in a listed company.
- No Cut in Subsidies, Expect More Tax Steps in Full Budget.
- Etihad Infuses 252 crore in Jet Airways.
- After Aadhar Hsg Buy, Blackstone Backs Out of PNB Housing Fin Race.
- Stellar Q3 Sets the Stage for SRF’s rerating.
- Sustained Inflow Helps Nifty Cross 11-k Mark.
- Govt explores pre-packaged bankruptcy plan to fast track insolvency process.
- Vodafone Idea Q3 loss widens to Rs 5,004 crore, loses 35 million customers.
- Would have done 100 more things but for interim Budget: Piyush Goyal.
- Brookfield may invest $1.5 bn in Indian realty to compete with Blackstone.
- We have been most honest with our fiscal numbers, says Goyal.
- Essel expects to raise over ₹20,000 crore from infra asset sale.
- Ayushman push comes at the cost of other health schemes.
- PAN-Aadhaar linkage mandatory for filing I-T returns for AY 2019-20.
- Essar Oil UK acquires BP’s assets.
- Banks need Rs 20 lakh crore deposits for credit growth.
- Govt may roll over Rs 33,000-35,000 crore in subsidy payments to FY20.
- IDFC First Bank targets 5.5% NIM in 5-6 years on higher yield on loans.
- Allahabad Bank posts net loss of Rs 733 core in Q3; NPA rises to 18%.
- Piramal’s $69-mn infusion in Lodha, and other key deals from last week.
- From Westside to Pantaloons, retail chains gain from consumer uptick in Q3.
- America the country with the most unicorns, India a distant fourth.
- Morgan Stanley to invest Rs 400 crore in realty.
- Relief for startups: Angel tax exemption limit may be hiked to Rs 25 crore.
- Foodpanda losses widen to Rs 228 crore from Rs 45 crore.
- JSW Steel profit falls 10% to Rs 1,603 crore on higher interest cost.
- Govt clears bill to tighten noose around unregulated deposit schemes.
- New SIP investors feel the pain as equity fund returns disappoint.
- RCom shares take more beating, tank nearly 13%.
- Rakesh Jhunjhunwala says PM Modi will be back and BJP will surprise with its election tally.
- MFs ask Sebi to give more time to Essel Group’s promoters to rope in strategic investors.
Key Due Dates:
- Due Date for Payment of TDS & TCS Deducted/Collected in the month of January is 7th February 2019.
- Due Date for TDS Return for the month of January is 10th January 2019.
Quote of the Day:
“Professionalism is not about adherence to the policies of a bureaucracy. Professionalism is about having the integrity, honesty, and sincere regard for the person hood of the customer, in the context of always doing what is best for the business. Those two things do not need to be in conflict.”
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 email@example.com. Hope the information will assist you in your professional endeavors. For query or help contact: firstname.lastname@example.org or call at 09811322785/4- 9555555480.