Corporate and Professional Updates on 27th April 2019

Indirect Tax Updates:

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  • GST department has allowed businesses whose GST registration has been cancelled due to non-filing of tax returns to apply for its revocation by July 22, provided they file their pending returns and pay due taxes for those entities for whom cancellation order has been passed up to March 31, 2019.
  • CBIC has now clarified that the IGST credit can be used in payment of CGST or SGST in any order or proportion. Businesses that have accumulated Integrated GST (IGST) credit in their books can settle it against central and state tax dues in any proportion, the revenue department has said.

RBI Updates:

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  • RBI is working on revising the framework for resolution of stressed assets, including providing additional 60 days to borrowers to repay dues, as part of efforts to mitigate hardships faced by genuine businesses. Against the backdrop of the Supreme Court quashing an RBI circular, issued on February 12, 2018, a revised set of rules is under works and would be released soon.
  • RBI committee may recommend that all government payments to citizens should be made digitally, one person aware of the matter said, requesting anonymity. The move seeks to ensure higher adoption of digital payments among the masses.

SEBI Updates:

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  • Market regulator Securities and Exchange Board of India is once again caught on the wrong foot, and this time for one of its recent circulars that made public names of over 2,000 entities, which have defaulted on its dues. Some of the companies named in the list have raised objections with the finance ministry, stating that the list was erroneous. The regulator had pulled out the circular dated 2 April within hours without any explanation.
  • The list featured some prominent names like SBI Capital, Axis Capital, GMR Holdings, United Breweries, Alpic Finance, Saradha Realty, United Bank of India and Trident India. “Putting our name on the defaulter list has sent a wrong message to our shareholders.

Other Updates:

  • RBI to attract more foreign capital for nation-building.
  • India’s crude oil production drops 4 per cent in FY19.
  • Jet Airways stake sale process may hit SOEC hurdle.
  • Tata Steel reports Q4 profit of Rs 2,431 crore.
  • NBCC sweetens bid for Jaypee Infra, offers land parcels.
  • Bank credit grows by 14.19%, deposits 10.60%: RBI data.
  • Tata Steel board approves merger of Bamnipal Steel & Tata Steel BSL.
  • 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.
  • 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:

  • 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.

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.

Corporate and Professional Updates on 24th April 2019

Indirect tax Updates:

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  • Manner of utilization of input tax credit under GST law is in highlights since past few months, before GST. Act, 2018(w.e.f. 1st Feb, 2019) the entire provisions pertaining to manner of utilization were contained in Section 49(5) of CGST Act, 2017.
  • In the said GST (Amendment) Act, 2018 a new Section 49A was introduced and certain proviso were inserted under Section 49(5). All these amendments were followed by insertion of rule 88A from 29/03/2019.

RBI Updates:

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  • The Reserve Bank of India’s (RBI’s) second three-year dollar-rupee swap auction was a massive success like the first one, even as it took just five large bids to cover the entire dollor 5 billion on offer. Market participants bid more than three times the offer, but the five successful bids were closer to the market rates and managed to shoot up the forward premium in the secondary market. “The aggressive bids most likely came in from a large corporate looking to hedge long-term dollar liabilities, such as external commercial borrowings.
  • RBI’s second 3-year dollar-rupee swap auction too a grand success Since the other participants could not offload their dollar holdings, the central bank offered to buy up to Rs 25,000 crore of bonds from the secondary market in May to help with liquidity. The banking system was running a liquidity deficit of Rs 1.4 trillion as of Monday. Currency dealers say the excess dollar holding would likely cause pain for some banks in the coming days. A similar thing happened after the March auction, when the cash-spot rate shot up to a record high due to excess availability of dollars in the system. Otherwise, the bidding pattern, and subsequent rise in the forward premium indicated that the central bank could be nearing the end in using this liquidity tool.
  • The cut-off premium was significantly higher than the last auction. The forward premium rate spiked following the auction as banks are now expecting that the option to swap cheap may not be available next month. The forward premium for one year crossed 4.55 per cent after the auction, which is the level where the premium stays in normal time. The one-year forward rate had closed at 4.24 per cent on Monday. The rupee fell to 69.86 a dollar but closed at 69.63 on Tuesday.
  • “This indicates that the swaps are nearing the end. The market won’t let the RBI to push rates down further for long,” said Jamal Mecklai, managing director at Mecklai Financial Services. Banks offered $18.65 billion for an auction size of up to dollor 5 billion. The central bank received 255 bids, higher than March’s 240 bids. The cut-off premium was 838 paise. In the first auction on March 26, the cut-off was 776 paise. The three-year forward premium was 775 paise in the morning before the auction. It rose to close at 860 paise after the auction.

Other Updates:

  • SoftBank eyeing a pie in Mukesh Ambani’s most valuable asset.
  • RBI okays HDFC proposal for stake in Bandhan Bank.
  • US to ensure steady oil supply for India.
  • Cos may get more time to meet new disclosure rules.
  • HC rules taxman can seek interest on GST liability.
  • Essar can’t discriminate between creditors.
  • RBI’s second 3-year dollar-rupee swap auction to a grand success.
  • ITC takes Hotel Leela to NCLT over ‘oppression’ in JM ARC, Brookfield deals.
  • RBI to buy Rs 25,000 crore of bonds in two instalments via OMO in May.
  • Saudi, Iraq and UAE may fill in Iran gap as US ends sanctions waiver
  • Tata Global Beverages to acquire Dhunseri’s packet tea biz for Rs 101 cr.
  • Micro finance sector to grow up to 22% in FY20.
  • Pharma exports increase 11% to $19.2 billion
  • Jindal Steel completes first-ever rail order ahead of schedule
  • Nagarjuna Oil case: NCLT dismisses Haldia Petrochem plea to appoint new valuer.
  • Sterlite Tech Q4 net profit up 47% to Rs 165.17 cr.
  • Zee launches theatre channel Spotlight on Airtel Digital TV.
  • Reliance prepares the ground for e-commerce launch.
  • Essel Group in talks to sell road assets to CDPQ, Cube Highways.
  • extends ban on import of milk products from China.
  • Trai directs Bharti Telemedia to comply with provisions of new regulations.
  • Lupin’s Pithampur facility may face regulatory action, says USFDA.
  • Cola Cola sees growth in India among other APAC markets in Q1.
  • Future Retail gets CCI nod to raise Rs 2,000 crore via equity warrants.
  • Jaypee Infratech homebuyers offered Rs 97-crore compensation.
  • ICICI Securities announces dividend of Rs 5.70 per share.
  • Government likely to raise wheat import duty to 40%.
  • Global warming shrank Indian economy by 31 per cent.
  • P&G guilty of profiteering Rs 250 crore from GST rate cut.
  • Solar capacity addition of 7-7.5 GW likely this fiscal.
  • Jet Airways will do everything to revive airline, says CEO.
  • Industry delegation calls on RBI Guv, discusses steps for MSMEs, NBFCs.
  • GAIL emerges as highest bidder for IL&FS wind power plants.

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.

Corporate and Professional Updates on 22nd April 2019

Direct Tax Updates:

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  • The Central Board of Direct Taxes (CBDT) has directed the Income-Tax Department to initiate penalty proceedings by June 30 against non-filers and ‘drop filers’ of tax returns. According to the non-filer monitoring system (NMS) of the I-T department, data for 20.4 million non-filers has been obtained between 2013 and 2017, of which 2.5 million are those who are inconsistent — popularly known as ‘dropped filers’.
  • The tax department has initiated action based on the NMS database, which has identified such non-filers and dropped filers. The said data has been shared with assessing officers. This information may be acted upon as efficiently as possible to widen the tax base, said the officer cited above. The NMS data shows a sharp increase in non-filers since 2013. In 2014, the number of non-filers was 1.22 million, which surged to 6.75 million in 2015. The number of dropped filers in FY18 stood at 2.52 million, down from 2.83 million in FY17.

Other Updates:

  • Finmin asks all depts to review govt guarantees.
  • India’s oil needs are well secured.
  • Job creation down 1.7 pc in Feb: ESIC payroll data.
  • SBI offers 20 bps discount on electric vehicle loans.
  • Jio fastest with 22.2 mbps download speed in March.
  • Blackstone buys Essel Propack for up to $460 million, to launch open offer at Rs 139/share.
  • RBI committee to peg excess capital at Rs 3 trillion, says BofAML.
  • OMCs unlikely to be impacted by US withdrawal of sanction waiver.
  • Jet Airways bids set to draw a blank; Etihad to say no, TPG back out too.
  • RBI may tweak Feb 12 circular on stressed assets to 30-day grace period.
  • Gail top bidder for IL&FS wind power plants with Rs 4,800-crore offer.
  • JNPT raise offer to buy Air India tower.
  • Coal import rises 9% to 234 MT in FY19.
  • BEML, Syndicate Bank sign MoU, to book ₹100 cr-biz.
  • McLeod Russel to sell 3 Assam estates to Luxmi Tea Company for₹150 crore.
  • SpiceJet and Emirates enter into code-share agreement.
  • Reliance Jio GigaFiber to offer broadband, landline and TV combo for ₹600.
  • SECI postpones manufacturing-linked solar bid for 3 GW till May 14.
  • Hindustan Copper board to consider fund raising via QIP.
  • Spice Jet to deploy sub-leased aircraft from Jet lessors.
  • DTH players violating new norms to face strict action.
  • Financial Express Banking on banks: Air India SPV seeks to lower debt burden.
  • March air traffic growth slowest in 5 yrs. groundings, flight cancellations to blame.
  • Volkswagen moves Supreme Court against NGT’s Rs. 500 crore fine.
  • Once A-rated at S&P, struggling Oman economy risks further cut in ratings
  • Debt schemes: Mutual Funds exposure to DHFL group firms at Rs. 6,500 crore.
  • RBI has $43 billion excess capital.
  • Flows into Asian bonds touch $5 billion in March.
  • Sensex cracks over 480 points, Nifty below 11,600.
  • Oil prices soar by about 3 per cent as plans US end to Iran sanction waivers.
  • Rupee drops 32 paise, may stay weak if crude spikes.

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.

Quote of the Day:

Smart Working May Leads to more Professionalism.

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.

Corporate and Professional Updates on 20th April 2019

Direct Tax Updates:

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  • CBDT has directed the Income-Tax Department to initiate penalty proceedings by June 30 against non-filers and ‘drop filers’ of tax returns. According to the non-filer monitoring system of the I-T department, data for 20.4 million non-filers has been obtained between 2013 and 2017, of which 2.5 million are those who are inconsistent — popularly known as ‘dropped filers’.
  • CBDT Committee on ‘Profit Attribution to Permanent Establishment (PE) in India’ said MNCs that are incurring global losses or a global profit margin of less than 2 per cent and have operations in India will be deemed to have made a profit of 2 per cent of Indian revenue or turnover and will be taxed accordingly.
  • The tax department has initiated action based on the NMS database, which has identified such non-filers and dropped filers
  • The Central Board of Direct Taxes (CBDT) has directed the Income-Tax Department to initiate penalty proceedings by June 30 against non-filers and ‘drop filers’ of tax returns. According to the non-filer monitoring system (NMS) of the I-T department, data for 20.4 million non-filers has been obtained between 2013 and 2017, of which 2.5 million are those who are inconsistent — popularly known as ‘dropped filers’.
  • “We are issuing notices in all the non-filer/dropped filer cases across the country, and proceedings shall be initiated accordingly in the relevant cases,” said an assessing officer. Typically, the penalty for non-filing is pursued under Section 271F of the Income Tax Act, and that for late filing under Section 234. If an assessee files returns after the due date of August 31 but before December 31, it will attract a penalty of Rs 5,000. For those who file returns after December 31, the penalty rises to Rs 10,000. However, there is an exemption for small taxpayers — if the total income does not exceed Rs 5 lakh per annum, the maximum penalty will be Rs 1,000.
  • The tax department has initiated action based on the NMS database, which has identified such non-filers and dropped filers. The said data has been shared with assessing officers. This information may be acted upon as efficiently as possible to widen the tax base, said the officer cited above. The NMS data shows a sharp increase in non-filers since 2013. In 2014, the number of non-filers was 1.22 million, which surged to 6.75 million in 2015. The number of dropped filers in FY18 stood at 2.52 million, down from 2.83 million in FY17.

Indirect Tax Updates:

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  • GST 20.4.2019 is Last date to file GSTR-3B of March 2019 & claim pending ITC of 2017-18, not claimed till now but shown by Suppliers in their GSTR-1.

RBI Updates:

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  • The Reserve Bank of India (RBI) on Thursday released a draft ‘Enabling Framework for Regulatory Sandbox’ in order to support the country’s rapidly growing fintech space. The sandbox will begin the testing process with 10-12 selected entities focusing on financial inclusion, payments and lending, digital KYC, etc. The cohorts may run for varying time periods, but should ordinarily be completed within six months, said the RBI.
  • A regulatory sandbox usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may permit certain regulatory relaxations for the limited purpose of the testing. The regulatory sandbox would be within a well-defined space and duration where the RBI will provide the requisite regulatory guidance, so as to increase efficiency, manage risks, and create new opportunities for consumers.
  • The draft guidelines highlight the clear principles and role of the proposed regulatory sandbox, its pros and cons, the reasons for setting up the regulatory sandbox and expectations of the RBI from the sandbox. The central bank has invited comments on the draft guidelines from stakeholders by May 8.

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.

Quote of the Day:

Your personal life, your professional life, and your creative life are all intertwined. I went through a few very difficult years where I felt like a failure. But it was actually really important for me to go through that. Struggle, for me, is the most inspirational thing in the world at the end of the day – as long as you treat it that way.
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.

Corporate and professional updates on 17th April 2019

Direct Tax Updates:

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  • The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance. It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources. The revised Form will come into effect from May 12, 2019.

Indirect Tax Updates:

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  • Renewable power companies have moved the Delhi High Court, seeking to exempt the renewable energy certificates (RECs) from the goods and services tax (GST). The case will also have implications on priority sector lending certificates, used widely in the banking sector. These certificates current attract a GST rate of 12 per cent.The court on Tuesday issued notices to the Centre, the GST Council and the Central Board of Indirect Taxes and Customs in this regard.
  • RECs fall under the definition of securities, argued Rastogi. “These scrips are traded on IEX and PXIL and are electricity derivatives,” Rastogi said. RECs are widely used in the renewable purchase obligations by companies and states. Launched in 2010, RPOs make it obligatory for distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy. Pre-defined RPO target for all states, currently ranges from 3 per cent to 10 per cent of the total energy requirement of the states. RPO is divided in two parts- solar RPO and non-solar RPO. The states or utilities that are unable to fulfil their RPO can buy RECs, which represents 1mw-hour of power produced from a renewable energy source. There are around 12,000 projects under REC mechanism with a total capacity of 5,383 MW.
  • Central Electricity Regulatory Commission reduced the REC prices to a historic low to match with prevailing tariffs. It was earlier in the range of Rs 1.5-3.5/unit Harry Dhaul, director general of the Independent Power Producers Association of India (IPPAI), said the taxability of REC will prove to be fatal for the power consumers by further increasing the costs of electricity.

Other Updates:

  • Infosys’ digital strategy to curb attrition.
  • Samsung says it sold 2 milion A series smartphones in 40 days, clocks USD 500 million in sales.
  • India’s trade deficit narrows to $10.89 bn in March, exports grow 11%.
  • Trump asks Boeing to rebrand 737 Max in ‘what the hell do I know’ tweet.
  • Wipro Q4FY19 preview: Analysts see dip in margins; modest rise in PAT.
  • Net interest margin of NBFCs likely to come under pressure.
  • India’s cotton output to decline to 343 lakh bales in FY19.
  • Export of oilmeals rose 31% to Rs 6,222 cr in FY19.
  • Lakshmi Vilas Bank to allot near 5% shares to India bulls Housing Finance.
  • Gold falls by Rs 200 on muted demand, extends losses for 4th day.
  • Metropolis Healthcare makes a strong stock market debut; lists up 9% from IPO price.
  • Spice Jet shares surge more than 8% on launch of new international flights.
  • NBFC-MFIs raise Rs 26,000 cr through securitisation in FY19.
  • Rupee drops 25 paise to close at 69.42 vs USD.
  • TCS shares jump nearly 5 pc after Q4 results; m-cap rises by Rs 36,136 cr.

Key Due Dates:

  • 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.

Corporate and Professional Updates on 16th April 2019

Indirect Tax Updates:

Image result for hd pics on indirect Tax

  • India’s recent economic history offers enough evidence to show that tax revenues can be raised even without a rampaging tax bureaucracy or ad-hoc measures such as demonetization. India’s tax-to-GDP ratio improved significantly in the period between 2003-04 and 2007-08 simply because of higher growth and tax reforms.
  • The obsession with raising taxes has often been justified by the fact that India collects less tax as a share of its national income compared to several other large economies. However, compared to other economies at a similar stage of development, India’s tax-GDP ratio appears respectable.

FAQ’s on GST:

QUES. Whether for the services received from a related person / distinct person outside India, the recipient of services would be eligible for full input tax credit?

ANS. In terms of the second proviso to section 17(4) of the CGST Act, 2017, the restriction of reversal of 50% credit would not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN. The non-applicability of 50% reversal is only to the extent of inter-branch services between registered branches having the same PAN in India. Thus, tax paid on services received from a related person / distinct person located outside India would be liable to 50% reversal.

QUES. Whether the provision of section 18(6) for reversal of input tax credit availed on capital goods be applicable to banks only to the extent of the input tax credit availed?

ANS. Yes. The provisions of section 18(6) of the CGST Act, 2017 for reversal of input tax credit availed on capital goods would be applicable to banks only to the extent of the input tax credit availed by it. In case the Bank opts to avail input tax credit to the extent of 50% in terms of the second proviso to Section 17(4) of the CGST Act, 2017, reversal of credit would be in proportion to the actual credit availed by the Bank i.e. only with reference to 50% of the input tax credit availed by it on capital goods.

Other Updates:

  • Exports grow 11% in March; trade deficit narrows.
  • Jet lenders still undecided on funding; board to meet Tue.
  • Infosys’ digital strategy to curb attrition.
  • Samsung says it sold 2 milion A series smartphones in 40 days, clocks USD 500 million in sales.
  • India’s trade deficit narrows to $10.89 bn in March, exports grow 11%.
  • Trump asks Boeing to rebrand 737 Max in ‘what the hell do I know’ tweet.
  • Wipro Q4FY19 preview: Analysts see dip in margins; modest rise in PAT.
  • Net interest margin of NBFCs likely to come under pressure.
  • India’s cotton output to decline to 343 lakh bales in FY19.
  • Export of oilmeals rose 31% to Rs 6,222 cr in FY19.
  • Maruti Suzuki retains top slot even in tough FY19.
  • Work hard stocks rise; firm says USFDA inspection yields no observations.
  • Firms with turnover over ₹2 cr. can now start filing GST audit reports for FY18.
  • IBC cases admitted over RBI circular to continue, says IBBI chief.
  • Lakshmi Vilas Bank to allot near 5% shares to India bulls Housing Finance.
  • Gold falls by Rs 200 on muted demand, extends losses for 4th day.
  • Metropolis Healthcare makes a strong stock market debut; lists up 9% from IPO price.
  • Spice Jet shares surge more than 8% on launch of new international flights.
  • NBFC-MFIs raise Rs 26,000 cr through securitisation in FY19.
  • Rupee drops 25 paise to close at 69.42 vs USD.
  • TCS shares jump nearly 5 pc after Q4 results; m-cap rises by Rs 36,136 cr.
  • Sensex ends 139 pts higher; TCS rallies nearly 5 pc.

Key Due Dates:

  • 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.