GST EVASION: DGGI took action against 3 Firm for tax evasion of Rs 600 Crore

GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore

Three persons arrested on charges of tax evasion of Rs 600 Crore, i.e. for the issuance of fraudulent invoices without the actual supply of Rs 4,198 crores, and illegally transferred as ITC credit to different entities under the GST Act.

There was an argument against M/s. Reema Polychem Pvt. Ltd., M/s. Fortune Graphics Limited, & M/s. Ganpati Enterprises, which were found to be engaged in the issuance of invoices without any real supply of goods.

The case was identified and established by the officers on further data analytics from the case filed against one of the exporters, M / s Anannya Exim, which was protected by the entire India Joint Operation launched by DGGI-DRI in September 2019, against various exporters for fraudulently demanding IGST refunds on the basis of ineligible ITC.

In the course of the investigations conducted by DGGI Hqrs, it emerged that the three companies referred to above, namely M/s. Reema Polychem Pvt. Ltd. respectively. Ganpati Enterprises released invoices worth more than Rs. 4,100 Crore, with a tax sum of more than Rs. 600 Crore being transferred fraudulently as ITC credit to various entities.

The foregoing companies/firms shall be interested in the issuing of bills without any real supply of products. This case was found and established by officers on further review of the case filed against one of the exporters, namely M / s Anannya Exim, which was protected by DGGI-DRI’s entire operation in India on 11.09.2019, against different exporters for fraudulently demanded IGST refund on the basis of invalid ITC.

In this regard, three parties have been detained for committing offenses under the GST Act. The directors/owners of M/s. Reema Polychem Pvt. Ltd. are two of them who have been on the run and have constantly avoided presence at DGGI Offices.

The third man is the director of M/s AB Players Exports Pvt Ltd and the manager of various other export firms/companies which have received IGST refunds on the basis of counterfeit invoices provided by these companies.

All three were detained by DGGI (Hqrs.) for committing offenses, pursuant to Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, and ordered to be held under judicial custody by the Magistrate.

Even more inquiries on the subject are in the process

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Basis Concept on Applicability of E-Way Bill

Basis Concept on Applicability of E-Way Bill

E-Way Bill is a digitally produced paper that must be produced for the transportation of more than Rs . 50,000 products from one place to another anywhere in India, except Delhi. For the transport of products inside Delhi, an e-way bill is needed if the value of goods exceeds Rs . 1 Lakhs.

This documentation must be produced electronically for the transport of goods, regardless of whether the transport is inter-state or intra-state. The e-way bill created in any State shall be valid in any State or Union territory of India.

Who is responsible for generating e-way bill?

The e-way bill under the GST regime is expected to be produced

  1. Any licensed individual responsible for the movement of products of shipment
  2. In the case of supply ( e.g. sales); or
  3. For reasons other than supply ( e.g. return of sales, transfer of branches, etc.); or
  4. Due to the inward supply of the unregistered individual
  5. Any unregistered individual who triggers the movement of products.

Some of the important points to be noted for goods transported by road are as follows:

  1. E-Way Bill is not required for all transactions carried out by a taxable individual.
  2. the E-Way Bill is necessary For all transactions involving the transportation of goods, whether by way of supply or not,.
  3. E-Way Bill is required in transactions involving products but viewed as a supply of services such as the leasing of products or the distribution of food drinks.
  4. E-Way Bill is not needed, where products purchased in the supply of services do not involve the movement of goods.
  5. E-Way Bill is necessary, where the movement of the value of the goods is more than Rs. 50,000/-as an interstate supply.
  6. E-Way Bill is necessary, where the movement of the value of the products is more than Rs. 1.00000/-as intrastate supply.
  7. Automobile number and transporter ID in part B should be given
  8. Where the goods are transported by the supplier, the supplier must provide the carrier with the details required for the generation of the e-way bill in Part-A.
  9. On the basis of the information received by the manufacturer, the carrier creates an e-way bill by performing Part B.
  10. If the goods are transferred by the supplier in a vehicle of their own or by a hired vehicle, the supplier may fill out the data in Part B.
  11. If the carrier has received information on the transport or vehicle number, etc., a unique e-way billing number or EBN may be issued.
  12. Unless the vehicle is modified during transit, the carrier may have to correct the transport information in the e-way bill on the GST portal.
  13. Goods can only be carried with the description of Part-A:
    1. When goods are transferred within less than 50 km of the State from the place of the manufacturer to the carrier for delivery;
    2. b) If goods are shipped from the source to the receiver for a distance of less than 50 km.
  14. The E-way bill created on the GST portal is valid for all States and Union Territories.
  15. For distances of up to 100 km, the created E-way bill is valid for one day. The e-way bill will be valid for an additional day for every 100 km.
  16. If the transport can not be completed within the period of validity due to certain unforeseen situations, the carrier may generate a new e-way bill by updating the transport details.
  17. Cause for transport may be any kind of supply, return on sales, own use, jobs, etc.
  18. When there are several vehicles involved in the transport of products, the manufacturer will issue the invoice until the first shipment is completed and, with each subsequent shipment, copies of the accompanying distribution vouchers and a copy of the invoice should be given. Nevertheless, the initial invoice will be submitted with the last shipment.

The circumstances where E-Way is not needed : 

In the following cases, the generation of e-Way Bill is not necessary:

  1. The mode of carriage is a non-motor vehicle
  2. Goods transported from the customs terminal, airport, air cargo complex or land customs station to the Inland Container Depot (ICD) or Container Freight Station (CFS) for customs clearance.
  3. Goods held under customs control or under customs seal
  4. Goods transported under the Customs Bond from ICD to the customs port or from one customs station to another.
  5. Transit cargo transported from or to Nepal or Bhutan
  6. Movement of products triggered by the establishment of the defense under the Ministry of Defense as consignee or consignee
  7. Vacuum Cargo /containers are being shipped
  8. In the case Consignor transporting goods to or from the place of business and a weigh bridge at a distance of 20 km, accompanied by a Delivery Challenge.
  9. In the case Goods to be shipped by rail where the Consignor of goods is a federal government, a state government, or a local authority.
  10. In the case of Goods specified as exempt from E-Way bill requirements in the respective State / Union Territory of the GST Regulations.
  11. In case Transportation of certain defined goods-includes the list of exempt supplies of goods, annexed to Rule 138(14), goods classified as non-delivery as set out in Schedule III, other schedules of notifications of the Central Tax Rate. (PDF of the Products List).

Note: Part B of the e-Way Bill is not necessary to be filled if the gap between the consignee or consignee and the carrier is less than 50 km and the transport is in the same state.

What to do to make an eWay Bill

E-Way Bill can be created from the e-Way Bill Portal. The only thing you need is a Portal username. For a comprehensive step-by-step e-Way Bill Generation guide, check out our online e-Way Bill Generation Guide.

Records/ document or information needed for the creation of eWay Bill

  • Invoice / Bill of Supply / Challenge relating to the shipment of goods
  • Road transport – ID of the driver or vehicle number
  • Transport by rail , air or ship – ID of the carrier, the number of the transport document and the date of the document

For more information about the case, please feel free to contact Rajput Jain &       Associates by phone (+91 11 9555 555 480 ), or e-mail (info@carajput.com).

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return

GST: Late fee capped at Rs. 500/- for each GSTR-3B Return and waives off late fee on late GST return filing

For each GSTR-3B return, a late fee of Rs. 500/- is capped.

In the perspective of the GST taxpayers’ massive relief the government has chosen to limit, on the basis of the condition that such GSTR-3B reports are filed prior to 30 September 2020, a late maximum fee of Form GSTR-3B to Rs 50/- (only 500) by tax return for the tax period July 2017 to July 2020.

Notice was provided to include zero late fees if no tax liability exists; and if there is any tax liability, the GSTR-3B returns filed by 30 September 2020 will be subject to a maximum late fee of Rs. 500 for such returns.

Thanks to further flexibility in the deferred fee paid for tax periods between May 2020 and July 2020, numerous representations have been issued. In order to clean up past pendency of returns between July 2017 and January 2020, relief has been issued for February 2020 of April 2020 in addition to previously granted. In addition, the design and implementation of a standard late payment are easier on an automated common portal.

The late fee for the return is only limited to Rs. 500/- if it is filed before 30 September 2020.

Summary of Important Due date of July and Aug 2020

Thanks

Rajput Jain & Associates

www.carajput.com

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

GST newest Notifications: summary of CBIC GST Extension Notifications dated 24 June 2020

GST latest Notifications: Analysis of CBIC Notifications on GST extensions dated 24 June 2020

Today, CBIC issued various notifications to implement the recommendations of the 40th GST Council meeting as follows: CBIC Notifications signed on 24.06.2020 regarding interest waiver and late fees. On 24 June 2020 the CBIC released multiple notifications of GST. The synopsis of those updates is here.

Notice No. 49/2020 – Central Tax: Implementing some aspects of the Finance Act, 2020

Notification No. 50/2020 – Central Tax: Notification of GST rates for individuals taxable in composition under Rule 7 of the CGST Rules

GSTR-3B-Interest rate waiver: Notification No.51/2020-Central Tax 24.06.2020: To put certain provisions of the Finance Act into force, 2020.

Notification No. 52/2020 – Central Tax: GST waiver for taxpayers who’ve not filed GSTR-3B for tax dates between July 2017 and January 2020 shall be informed as stated earlier at the 40th meeting of the GST Council. In CGST Notification No. 52/2020 dated 24 June 2020, the CBIC notified that between 1 July 2020 and 30 September 2020, Zero GSTR-3B could be filed without a late fee for the above duration. Furthermore, it shall be limited to a maximum of Rs 250 per return per month per act for the remaining taxpayers.

A late fee exemption also moved the last GSTR-1 deadlines from March to June 2020 as of June 30th, 2020. The latest timelines for monthly filing without even a late fee charge will be from March to June 2020, 10th, 24th, 28th July 2020 and 5th August 2020 respectively. The last date for the GSTR-1 quarterly is 17th July and 3rd August 2020 for the quarters January-March 2020 and April-June 2020.

Big taxpayers have not been informed of further extensions for filing GSTR-3B from February to May 2020, with an annual turnover of more than Rs 5 Crore in the previous financial year. Furthermore, no interest should have been paid from the respective due dates of February to April 2020, i.e. 20th of the following month, for the first 15 days respectively. After that, interest at a 9 percent p.a. reduced rate. Any further delay in GST payments would have been imposed till 24 June 2020.

Initially, taxpayers with an aggregate annual turnover of up to Rs 5 crore in the last financial year have their due date staggered as 22nd # or 24th # of their next month, depending on the state / UT from which they run their main place of business. For the exception of May 2020, its due date staggered as July 12th # or 14th # # 2020. Furthermore, in the exception, August 2020 also comes with yesterday’s due date extended to 1st # or 3rd # # October 2020.

The CBIC has abolished the taxpayer bifurcation based on the annual sales up to Rs 1.5 crore, or between Rs 1.5 crore and Rs 5 crore. Correctly, as per yesterday’s 40th meeting of the GST Council, the late fee and the interest waiver will continue until September 2020

GSTR-1-Late Fees / Penalty Waiver: Notification No.53/2020-Central Tax 24.06.2020: Conditional waiver of late fees for all GSTR 1 registered persons for months/quarters ending March to June 2020, if submitted by the time set.

GSTR-3B-Extension of the deadline for Aug 2020: Notification No.54/2020-Central Tax 24.06.2020: extension of the deadline for submission of GSTR 3B to 1/3 October 2020

Summary of Important Due date of July and Aug 2020

Thanks

Rajput Jain & Associates

www.carajput.com

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Whirlpool convicted & imposed a penalty of Rs 4.07 lakh by NAA for denying customers the benefit of the GST rate reduction.

Whirlpool convicted in accordance with Rs. 4,07,451/- of profiteering by the National Anti Profiteering Authority on its fridges

NAA discovered the long-term consumer corporation Whirlpool of India convicted of not having to pass on a GST rate reduction advantage of more than Rs 4.07 lakh to its refrigerator purchasers. Kerala State Screening Committee Anti-Profiteering (NAA) vs. Whirlpool India Ltd.

The concise details of the matter are that the petitioner had made reference a case against Whirlpool to the Standing Committee on Anti-Profit-making alleging profiteering on the supply of fridge Whirlpool (HSN code 84182100), by not passing on the benefit of reducing tax rate w. e. f. 1 July 2017 Pursuant to Section 171 of the CGST Act , 2017, by way of a substantial price decrease.

Few justifications by the defendant and the authority to reply

The plaintiff contended that the rise in prices could not be created because of other commercial factors, which had the impact of placing unlawful restraint on his fundamental right and was consequently in accordance with Article 19(1)(g) of the Indian Constitution.

In this relation, it would also be important to state that section 171(1) requires only the participant to pass on the advantage of the reduction in taxes to the purchasers and does not require him to set his prices in accordance with any authority direction. The above profit was provided by the government to ordinary buyers by sacrificing their valuable tax revenue which the respondent can not be permitted to misappropriate and enrich themselves at the detriment of unorganized, voiceless, and vulnerable common buyers. The respondent is free to exercise his right to trade and set prices, but under the pretext that it infringes his right to trade, he can not deny the above benefit.

The defendant also argued that the product’s manufacturing cost (BOM) had experienced a rise since August 2016 due to a rise in the cost of raw materials which had been computerized to come at the MAP at the end of each and every month.

In this relation, it would also be necessary to note that on the very date from which the tax rate was reduced, there was no reason for the respondent to increase its basic price. There is also no justification for ascertaining why the respondent had not raised its price every month during the period from August 2016 to June 2017 when he computed the MAP every month.

The representative also claimed that there had been an increase in the total freight cost in 2017 compared to Rs. 29 per unit in 2016, which was expected to be added to the price.

As mentioned above, the defendant had no reason to raise its price on the occasion of the reduction in taxes, and thus the respondent’s argument is frivolous and not bonafide, which was made with an ulterior purpose for the betterment of the tax cut.

Held by Authority: on the grounds of the details of the matter, the amount profited by Whirlpool shall be determined as Rs. 4,07,451/-. The Respondent is instructed to lower the price with the above-mentioned product and also to deposit the benefited amount together with interest at 18 percent. A notice of cause shall be issued to him to illustrate why the punishment under the GST Act should not be enforced on him.

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 17th June 2019

Direct Tax Updates:

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  • CBDT has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset. The latest guidelines which come into effect from June 17, clearly state offences in this category cannot normally be compounded. However, finance minister can relax restrictions on consideration of a report from CBDT.
  • CBDT has issued notification no 10/2019 for further changes in rule 31A(5) and 31AA(5) for e-filing of TDS returns. The procedure is same as issued as earlier, now the tds return can be validated either through DSC or EVC. The EVC generation is same as ITR EVC.

Indirect Tax Updates:

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  • Goods and Services Tax Council, the federal indirect tax body, is set to take several decisions to curb tax evasion in its first meeting to be chaired by new finance minister Nirmala Sitharaman on 21 June. The government plans to increase scrutiny on businesses amid lower-than-expected GST collections after handholding them through the first two years of the tax reform. The 35th meeting of the GST Council will seek to introduce compliance requirements, initially on big businesses and eventually on all merchants to curb tax leakage.  
  • GST compliance will take enforcement activities under the indirect tax system to the next level. At present, the ministry of corporate affairs (MCA) is implementing a geotagging scheme for companies aimed at identifying every active company and the people behind them. Pooling the geo-tagging information available from the MCA database with the data generated by indirect tax authorities will help in verifying the credentials of different parties to a transaction. However, all measures to improve compliance will be implemented only in a gradual way, starting with the largest businesses. The slow recalibration of the tax system is meant to avoid a backlash that the tax reform had witnessed immediately after its rollout two years ago, forcing the council to defer tax return filing deadlines several times and temporarily suspend some of the safety features of the new system. 
  • With revenue receipts below targets, the central government, which has the Constitutional obligation to compensate states for their revenue shortfall in the first five years of GST implementation, and states that worry about loss of revenue in the subsequent years are keen to gradually increase enforcement measures. Experts said grievances that some businesses and traders, especially the smaller ones, have about GST are not about the indirect tax per se, but on account of the light the technology-driven tax sheds on sales, that makes it harder to avoid paying tax on income. No big tax rate cut is likely in the forthcoming meeting of the council.

NBFC Updates:

Image result for NBFC Pics
  • Fixed income investors perceive non-banking finance companies (NBFCs) as less of a problem than housing finance companies (HFCs), corporate bond data shows. The cost of borrowing for AAArated NBFCs declined by 13 basis points in May versus April in the debt market, while it increased by 19 basis points for AAA-rated HFCs, according to a report by CARE Ratings.
  • NBFCs have been witnessing higher cost of borrowings compared with all other categories, including Alternative Investment Funds and HFCs, since April 2018. The yields on corporate bonds and commercial paper have been on the rise following the stress in the NBFC sector from September 2018 and defaults by IL&FS. Corporate bond yields have since moved down to 8.49% in May, from 9.8% in September. Similarly, commercial paper yields have moved lower to 7.48% in May from 7.72% in September.

Other Updates:

  • BHEL bags 200 MW solar energy orders worth Rs 800 cr
  • NBFC crisis to pull down home loan growth: Report
  • Trai to determine the unique mobile subscribers base
  • UCO Bank declares Yashovardhan Birla wilful defaulter
  • FinMin assessing capital needs of PSU banks
  • Lakshmi Mittal’s South African subsidiary facing charges
  • Sebi likely to rejig mutual fund categorisation norms to curb credit risk
  • Cross-border insolvency: Cabinet likely to take up new provisions soon
  • RBI joins peers to buy gold insurance as US-China trade war escalates
  • Hindustan Copper plans to increase ore production five times by 2025
  • Lupin recalls more than 18,000 bottles of antibiotic drug in US market
  • India draws up plan to gain from US-China trade war
  • India imposes higher customs duty on 28 US products
  • Suspect DeMo cash deposits again come under scanner
  • GST Council may give 1-year extension to anti-profiteering authority
  • Vedanta lost $200 m on Sterlite plant shutdown: Anil Agarwal
  • Noose tightens on Swiss account holders; Details of at least 50 Indians shared
  • India has wage problem, not job problem: Mohandas Pai
  • Niti asked to follow due process for suggesting CPSE assets for monetisation
  • Agrochemicals exporters widen their valuation gap vis-à-vis domestic plays
  • ONGC to auction over 60 fields to private operators
  • Rainfall deficiency hits 43 per cent; monsoon progress likely in the next 2-3 days: IMD
  • FPIs remain net buyers in June, invest Rs 11,132 crore
  • India can boost exports of 300 products to US, China amid trade war, says report
  • Jaypee Infratech lenders moot fresh plan to complete housing projects
  • CREDAI seeks bank funding for developers to buy land for affordable housing projects
  • Round-tripping still rampant in gold exports
  • Steel industry seeks safeguard duty to counter rise in imports
  • Start-ups entering listed space via reverse merger

Key Due Dates:

  • The Due Date of GSTR-3b For the Month Of May is 20th June 2019.
  • The Due Dates for the Deposit of TDS/TCS for the Purchase of Property 30th June 2019.\
  • Annual Return For Registered Tax Payers is 30th June 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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 21st May 2019

Indirect Tax Updates:

  • The amendment to Section 17 (5) of the Central Goods and Services Tax (CGST) Act deals with blocked credit. “Section 17 (5) of the CGST Act and the respective state Acts have led to a paradoxical situation by denying credits as the objective of the GST is free flow of credits when the output is in the course or furtherance of business,” said Abhishek A Rastogi, partner at law firm Khaitan & Co, who filed the writ petition on behalf of real estate companies.
  • “The impugned provisions are against the objectives of GST and have accordingly been challenged on the grounds of arbitrariness and vagueness.” Tax experts said the phrase ‘on his own account’ in the GST law will need to be interpreted differently if one were to take input tax credit. Input tax credit refers to a mechanism under the GST framework wherein the tax a company pays when it purchases raw materials or other services can be passed on to the buyer when the goods or services are sold.

RBI Updates:

Image result for hd pics on rbi
  • The Reserve Bank of India will take a relook at its supervision structure for banks, finance companies and other entities regulated by the central bank. It will initiate a discussion with its board of directors on a proposal to overhaul the crucial job of supervision so that the regulator is better equipped in picking up early warning signs. This may involve consolidating the different supervisory activities under a separate division or head, creating a pool of officials for better analysis of the continuous flow of data from banks and finance companies, and involving specialists.

SEBI Updates:

Image result for hd pics on sebi
  • The Securities and Exchange Board of India on Monday came out with a discussion paper highlighting proposals for allowing a start-up listed on the Innovators Growth Platform (IGP) to trade under the regular category of the main board. According to the proposals, the company should have listed on the IGP for a year and have a minimum of 200 shareholders for making the shift. The company, or any of its promoters, promoter group or directors, should not have been debarred from accessing the capital market or been a willful defaulter.
  • Minimum promoters’ contribution should be 20 per cent of the total capital. In case of a shortfall, alternative investment funds, foreign venture capital investors, scheduled commercial banks, public financial institutions or insurance companies can step in, subject to a maximum of 10 per cent of the total capital. This capital shall be locked in for three years from the date on which trading approval on the main board is granted, and any excess over and above the 20 per cent of promoter’s holding shall be locked-in for one year. The lock-in would not apply for companies listed on the IGP for three years or more.

Other Updates:

  • Aluminium body cautions govt about China
  • WTO warns trade weakness to continue in Q2
  • Australian election results bode well for Adani
  • India adopts new standards for measuring units
  • Irdai proposes to increase 3rd-party insurance premium
  • MNC boardrooms open doors to Indian women leaders
  • Power sector’s outstanding regulatory assets at Rs76,963 cr
  • Full blow trade war will push world towards recession: Morgan Stanley
  • Auditor exits mount at listed SMEs as scrutiny increases after IL&FS crisis
  • Torrent Pharma reports Q4 net loss of Rs 152 crore, cites drug recall
  • Lakshmi Vilas rejects Religare Finance’s disclosure, threatens action
  • US seeks to join Japan-India consultations on IT product tariffs
  • Tata Motors profit dips 47 % in Q4
  • WTO quarterly trade growth indicator still at nine-year low
  • HPCL Q4 net profit jumps 70% on inventory gains
  • Gold imports rise 54% to $ 3.97 billion in April
  • Ford to cut about 10% of global salaried workforce
  • ICICI Bank to buy stake in BSE subsidiary INX for ₹31 crore
  • BPCL Q4 net profit rises 16% to ₹3,125 cr; revenue up 10% at ₹83,942 cr
  • JLR posts 1st profit in four quarters despite China woes
  • Adani Green Energy’s 8.75 crore shares to be offered for sale on Tuesday
  • Bitcoin roars back from ‘flash crash’ to breach $8,000 once more
  • Bank credit to infra sector grows 18.5% in FY19: RBI data
  • TRAI says up to government to take a call on Huawei issue
  • ArcelorMittal to pay Rs 42,000 crore for Essar Steel takeover: Company tells NCLAT
  • Dr Reddy’s to spend $300 million on R&D in FY 20
  • Rupee records biggest gain in 2 months after exit poll results
  • Gold loses sheen, falls Rs 150 on lacklustre demand
  • Investor wealth soars Rs 5.33 lakh cr as exit polls predict return of NDA govt.

Key Due Dates:

  • Deposit odf TDS /TCS for the month of April for purchase of property is 30th May 2019.
  • TDS return for March Quarter By all Deductors is 31st May 2019.

Quote of the day:

  • Being your own person and standing for what you believe is a critical aspect of a good professional life.

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 decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 6th May 2019

Indirect Tax Updates:

  • The Delhi High Court has directed the Goods and Services Tax Council to review the tax structure for solar power projects. The decision was in response to a writ filed by the Solar Power Development Association, which had challenged the latest tax formulation for solar power generating systems unveiled on January 1. The court has asked the GST Council to relook at the mater in consultation with the Central Board of Indirect Taxes and Customs and the ministry of new and renewable energy. It has given the government two months to revert and scheduled the next hearing in August. “Between divergent AARs and an ad hoc basis of fixing a presumptive valuation between goods and service, the solar sector has had a chaotic induction into GST holds out hope of a quick and definitive solution to this long-standing problem of the solar industry.

Other Updates:

  • NCLT admits Bharti Airtel petition on Rs 112-crore dues
  • Tata Motors may drop small diesel cars from portfolio
  • Auditors have questions to answer, says govt
  • ONGC gets green nod for Rs 240 cr project in Assam
  • India, UK in talks to build aircraft carrier : Report
  • Lupin, Zydus Pharma recall products in the US
  • Sebi may be asked to relax 75% promoter stake norm for PSBs
  • Govt to give financial aid to minority investors filing class action suits
  • Sebi’s co-location order delays announcement of NSE’s FY19 results
  • Govt sees little scope for Jet Airways revival as bidders stay away: Report
  • Vodafone Idea promoters contribute Rs 17,920 crore to rights issue
  • Infibeam sacks auditor for sharing unpublished price-sensitive information
  • IndiGrid to buy ₹11,500-cr electricity transmission assets from Sterlite Power
  • Anti-dumping duty imposed on saccharin imports from Indonesia
  • L&T MBDA, Tata Power defence proposals get SEZ board approval
  • CII backs FAME-II scheme despite EV makers’ red flag
  • ‘IBC helped creditors recover 195% of liquidation value’
  • ONGC cash reserves erode 98% to ₹167 crore in 1.5 years
  • Early Q4 earnings point to a slowdown in economy
  • India warns WTO about EU’s proposal for e-commerce rules
  • ThyssenKrupp sees room for EU agreement on Tata Steel deal
  • Bajaj Auto sees no slowdown in two-wheeler sales, rides ahead of competition
  • DoT asks Karnataka to align infrastructure roll out policy with RoW policy
  • India’s steel production stood at 27 million tonne in Q1 2019
  • India’s reliance on oil imports jump multi-year high of 84%
  • US-China trade deal enters endgame, positive sign for global economy
  • Dangerous to let viable cos close down: IBBI chief
  • DHFL to raise up to Rs 2,000 cr
  • India for ADB-led mechanism for channeling funds from rich to developing nations.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 4th May 2019

Direct Tax Updates:

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  • CBDT released data that after clocking steep growth of 25% in the three years to FY18, the number of taxpayers filing income-tax e-returns saw a marginal contraction in FY19. In FY19, only 6.68 crore returns were filed online, 1% lower than 6.74 crore filed in FY18.
  • Income tax department has released the software utility in excel format for filing ITR2 for FY2018-19. It is to be used by individuals having capital gains or more than one house property but not by those individuals having income from business and profession.

Indirect Tax Updates:

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  • GSTR-9 is merely a compilation of data filed in GSTR-3B and GSTR-1. As per the instructions of the form GSTR-9, it is stated that information of outward supplies ‘may’ be derived from Form GSTR 1. Hence, so far as Outward supplies and tax payable in the annual return is concerned, the same are to be extracted from Form GSTR 1 only.

Other Updates:

  • Almost 1 million being evacuated as Cyclone Fani nears India
  • Samsung to make more in India, invest Rs 2,500 cr
  • PMO reviews 59-minute loan scheme, Rs 37,870 crore disbursed
  • CIL plans 530 mn tonnes of fuel for power plants in FY20
  • PNB Housing Finance to mop up $1 billion from foreign markets
  • Air traffic growth hits 5-yr low in FY19 at 11.6%; cargo at 6%
  • Amrapali’s lawyers given flats & penthouses: Forensic auditors to SC
  • Kamdhenu Ltd net profit up 43% to Rs 22 crore in FY19
  • Shapoorji Pallonji Real Estate partners with Lokhandwala Infra.
  • NBFC crisis may push up borrowing costs for real estate developers
  • Centre’s tax revenue at Rs 13.2 trillion in FY19, missed target by 11%
  • Rs 7 trillion of corporate papers downgraded since start of IL&FS fiasco
  • Two-wheeler sales fall in April as makers avoid stockpiling at dealerships
  • Agritech start-up Ninjacart may tie up with supermarkets for groceries
  • Tata Power Q4 net profit drops 92%; declares dividend of Rs 1.30 per share
  • India again postpones US tariffs on high-value goods with eye on GSP
  • Govt plans to reduce GST rate and basic customs duty on gold
  • Chanda Kochhar misled RBI on $365 million loan to Essar group firm despite red flag.
  • Demonetisation effect wanes, income tax returns shrink in FY19
  • Slowdown in India’s economy, growth may ease to 6.5% in Q4FY19.
  • Dvara KGFS raises Rs 97 crore in Series E round
  • Bandhan Bank Q4 net soars 68%, asset quality improves
  • Buybacks, IPOs, strategic deals lead disinvestment process in FY19
  • Dabur India posts 6% decline in Q4 profit
  • TechM to deploy blockchain solution to curb spam calls
  • Axis RERA Fund invests Rs 60 crore in Chennai’s Akshaya Group
  • India eyes Guyana as Iran oil supplies end.
  • CLP may buy Morgan Stanley’s wind assets
  • Tesla plans to raise $2 billion from stock, bond offerings
  • Bombay Dyeing posts net profit of ₹1,253.33 crore in March quarter
  • BSE to conduct mock trading session for various segments on May 4
  • TPG’s Asia Healthcare agrees to buy Nova IVI.
  • Hindustan Zinc Q4 profit falls over 19% at ₹2,012 crore
  • Standard Life to sell 1.78% stake in HDFC Life for ₹1,404 crore
  • JSW enters paints business with ₹600 crore investment.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Corporate and Professional Updates on 2nd May 2019

Direct Tax Updates:

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  • The Income Tax Department will now share information such as reported turnover and gross income declared with the Goods and Services Tax Network to check tax evasion. The I-T Department and GSTN will enter an agreement on the modalities of information sharing. The Central Board of Direct Taxes has said the agreement will include provisions for confidentiality, a mechanism for safe preservation of data and timelines for furnishing information.
  • CBDT has left the onus of data-sharing on the principal director general of income tax or director general of income tax. “Spontaneous exchange of data the modalities of which shall be decided by the concerned specified authorities,” an order issued by the CBDT said. Details captured in returns, status of filing income tax returns and turnover ratio will form part of the information package to be shared with GSTN. The data can be matched with the business returns of the assessee.

Indirect Tax updates:

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  • Goods and services tax collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST contributed Rs 21,163 crore, the SGST Rs 28,801 crore, the IGST Rs 54,733 crore and cess Rs 9,168 crore.
  • After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and effective data  Perhaps one reason for this increase was also a push from businesses to their vendors for reporting sales of 2017-18, for which the last date of claiming credit coincides with GST filings for the month of March,” said Pratik Jain, partner at consultancy PwC India. He felt one could now expect the monthly collection to regularly exceed Rs 1 trillion.

Other Updates:

  • NSE barred from accessing sec market for 6 mths
  • SFIO questions audit partner of KPMG India unit
  • Ambani wants to make the mother of all apps
  • L&T buys VG Siddhartha, Coffee Day stake in Mindtree for Rs 3,210 crore
  • Iraq continues to be India’s top oil supplier
  • Adani’s coal mine in Queensland has new hurdle
  • NBCC gets approvals for revised Jaypee Infra bid
  • GST collection scales all-time high of Rs 1.13 trillion in April
  • Tough life ahead for NBFCs as RBI set to tighten liquidity mismatch limits
  • TRAI pulls up DTH, cable operators for not compliying with new tariff
  • DCM Shriram reports nearly six-fold jump in Q4 net profit at Rs 293 cr
  • Patanjali gets time till May 7 for filing resolution plan
  • Ambuja Cements’ volumes, realisation disappoint
  • Netherlands got $12.8-b Indian FDI in 2017, 2nd biggest after Singapore
  • Review safeguard duties on solar cell imports, Japan tells India
  • Honda Cars India sales up 23 per cent in April 2019
  • Ness Wadia’s board positions in group firms to remain intact
  • UDS buys majority stake in Matrix to expand its business portfolio
  • Royal Enfield total sales decline 17% in April
  • Suzuki Motorcycle India sales up 12.57% in April
  • Over ₹12,000 crore subsidy disbursed to home-buyers: Housing Ministry
  • OYO to buy Amsterdam-based Leisure Group from Axel Springer
  • Tata Steel workers lose faith in Thyssenkrupp deal: works council
  • KFC and Pizza Hut report sales growth in India in Q1
  • Britannia Industries Q4 net up 11.28% at₹294.27 crore
  • Jet Airways ticket refund: Delhi High Court notice to airline on customers’ plea
  • Government fixes 2.1 MT quota for sugar sale in May
  • CEA issues draft guidelines on cross-border power trade
  • Tax filing falls 1% in FY19, indicating overall slowdown: Report
  • Oyo to acquire Amsterdam firm @Leisure for €369 million
  • India Ratings lowers country’s GDP growth projection for FY20 to 7.3 pc
  • Gold slides on sluggish demand, silver firms up
  • NCLAT allows insolvency proceedings
  • Better days seen ahead for Reliance Nippon MF
  • India apprehensive Iran sanctions could boost oil prices, inflation.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For 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. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)