RBI Governor Press Announcements highlights: RBI reduces the rate, extends the loan relief

Announcements: RBI of the Government: 22/05/2020

  1. Term loan moratorium extends to August 31, 2020-The debt moratorium will be continued to August 31 , 2020. Which gives it a six-month moratorium.
  2. Interest deferral on working capital-Interest on working capital is deferred by another 3 months, i.e. until 31 August 2020.
  3. Conversion of interest on working capital to fixed-term loans-Loan agencies is permitted to turn accrued interest on working capital facilities over the deferment period (until August 31, 2020) into a secured interest-term loan (repayable by March 31, 2021).
  4. The margin for Working Capital – Drawing Power – Lending institutions was required to return working capital margins to the original amount by 31 March 2021.
  5. Reduce the repo rate by 40 bps to 4%. The interest rate should then be reduced.
  6. Export Credits-Maximum Allowable Export Credit (Pre and Post Shipping) extended from 12 months to 15 months.
  7. Payment against imports-Extension of the time limit to allow payments against imports from 6 months to 12 months
  8. Help to EXIM Bank-Facility of Rs 15.000 crore credit line for 90 days for US dollar swap facility will be given to EXIM Bank.
  9. Extension of Resolution Timelines-Deferment or moratorium time shall be removed when measuring the 180-day resolution deadline.
  10. Group Financing -Group exposure increased from 25% to 30%
  11. SIDBI support – In order to provide greater flexibility to SIDBI, a further 90-day extension of the 90-day loan facility will be offered.
  12. Trade Impact -Loan moratorium shall have no effect on improvements in asset classification, financial history, and aging requirements, etc.
  13. Trade Impact-The The volume of world trade can fall by 13 percent-32% this year.

    Post by Rajput Jain & Associates

    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 1st June 2019

Direct Tax Updates:

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  • Delhi High Court restrained the Income Tax Department from taking any action against VVIP chopper deal scam accused Gautam Khaitan against whom a black money case has been lodged. Court said Khaitan, an advocate by profession, has made out a “good prima facie” case for grant of interim relief and grave prejudice would be caused to him if the authorities are not restrained at this stage from proceeding further. 
  • CBDT do not want to let go the Revenue Dues owed by Shell Companies that have been deregistered by the MCA. But the task is easier said than done, as it would mean the restoration of over 4,000 companies identified by the CBDT. The CBDT has been holding talks with the MCA over this.

Indirect Tax Updates:

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  • The new option has been introduced wherein the consignment of one e-way bill has to be moved in multiple vehicles, after moving to transshipment place.
  • Different high courts in the country have given stay orders on several fiats of the National Anti-profiteering Authority (NAA) for the GST, casting doubts on the legal tenability of the way the nearly one-and-half-a-year-old set-up operates and passes orders on alleged cases of profiteering by businesses.A review by FE revealed that at least five firms have got reliefs from the high courts, in what allowed them to defer coughing up an aggregate amount of Rs 430 crore. 

RBI Updates:

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  • Government is open to providing more powers to the RBI to direct lenders to take action on stressed assets. There is a growing view in the government that there has to be some regulatory supervision over debt resolution by the RBI.
  • RBI has asked NBFCs with asset size of more than Rs.5,000 crore to appoint a chief risk officer (CRO) with clearly specified role and responsibilities, in view of the increasing role in direct credit intermediation of these companies. The RBI directive comes in the backdrop of the IL&FS imbroglio and its ripple impact on NBFCs.
  • RBI wants NBFCs with assets of more than 5,000 Crore must appoint a Chief Risk Officer (CRO). It said that with the increasing role of NBFCs in direct credit intermediation, there is a need for NBFCs to Augment Risk Management Practices.
  • RBI Appointed Committee headed by Aadhaar architect Nandan Nilekani submits its suggestions on Promoting Digital Payments to RBI Governor Shaktikanta Das. The 5-member team was formed in January this year to consult with various stakeholders of the payments ecosystem and deliberate on solutions to further strengthen the industry

Other Updates:

  • MCA sees Rs 2.8 lakh cr recovery from IBC-led RP.
  • IOC to examine US sanction’s impact on CPCL plans
  • India may witness slowdown as oil imports decline
  • DoT to soon settle merger/transfer of licences in M&As
  • BoB looks to rationalise 800-900 branches
  • Pre-monsoon rainfall deficit drops to 22 per cent
  • Reliance Capital protests ratings downgrade
  • India reports trade deficit with 11 RCEP members in FY 2018-19
  • OPEC members meet to assess oil market after US sanctions on Iran
  • NMDC plans to acquire 100 per cent stake in Australia’s Legacy Iron-Ore Ltd
  • Debt-ridden Essar Steel reports Rs 4,229 cr EBITDA during insolvency period
  • ICICI-Videocon loan case: Kochhar contests bonus clawback, ESOP termination
  • NBFC crisis to top agenda of new govt.
  • Jet employee group offers to invest $700 million
  • AgMA Energy plans to launch India-specific agri products
  • No interest in taking control of IndiGo: Rakesh Gangwal
  • Dredging Corporation of India wins annual contracts from Cochin and Paradip port trusts
  • ONGC, GIP, Tripura govt eye to buy out IL&FS’s 26% stake in OTPC
  • TCS eyes double-digit growth in FY20, says COO Subramaniam
  • Dr Reddy’s Laboratories serves a bitter medicine in March quarter
  • RBI’s vision document on payment systems to spur digital economy: Fintech firms
  • Life insurance industry to focus on millennials, digital-human interface
  • IMFA posts loss of Rs 74 cr in January-March qtr
  • Power producers seek removal of double taxation on imported coal
  • RBI to boost card payments with 34% increase in PoS terminals by end of 2021
  • Japan’s Orix to acquire wind assets of IL&FS
  • GST Council may consider national bench of AAAR next month
  • FPIs withdraw Rs 6,399 crore in May so far
  • AstraZeneca moves US court against Aurobindo
  • RBI releases ‘Vision 2021’ for payment systems for ‘cash-lite’ society

Key Due Dates:

  • The Due Date of GSTR-1  For the Month Of May is 10th June 2019.
  • 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 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 10th May 2019

Direct Tax Updates:

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  • ITAT Pune in the matter of Ayushi Patni Vs DCIT Has decided that Date of possession of flat is date of actual purchase for claiming exemption u/s 54F of the Income Tax Act.
  • 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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  • Central Board of Indirect Taxes and Customs (CBIC) clearly stated that Homebuyers will not have the option to choose between old and new goods and services tax rates as the choice only lies with builders.
  • File your GST Return for the month of April 2019 before 15th of May 2019.

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.
  • 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.
  • Uncertainty makes Brexit worse than Y2K for customers, says Infosys
  • JSW group enters paints business with Rs 600-cr investment
  • PepsiCo withdraws IPR infringement case against Gujarat potato farmers
  • CIL plans 9% increase in coal allocation to power plants
  • Adani Group to invest Rs 57,594 crore to expand Mundra port
  • Ashok Leyland sales up seven per cent in April at 13,626 units.

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 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 9th May 2019

Indirect Tax Updates:

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  • CBIC has issued 41 Clarifications on FAQs/ Issues relating to new GST rate structure notified for Real Estate sector applicable from 1 April 2019.
  • Goods and Services Tax regime in India is not likely to reduce the deficits of state governments significantly, amid large and growing expenditure mandates for the social sector as well as capital spending.

RBI Updates:

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  • RBI is likely to cut interest rates one more time in June before rising inflation pressures and elevated fiscal deficits leave little room for further accommodation in rest of the year. RBI had cut interest rate by 25 basis points each in February and April to boost economic growth.
  • The Reserve Bank of India is working on its disclosure policy under the Right to Information Act and will release an updated version in a few weeks, possibly after the election results. The central bank had, on April 30, updated its disclosure policy on its website to reflect the omission of certain clauses. 

Other Updates:

  • Oil imports from Iran down 57% y/y in April: Trade
  • US commerce secy warns India against retaliatory tariffs
  • Airtel to merge VSAT ops with Hughes India unit
  • NCLT begins bankruptcy process for RCom
  • Essar shareholder seeks ban on Mittal’s bid
  • BSE Q4 net profit drops 16.46 pc to Rs 51.86 crore
  • RBI’s holding company model for banks will help contain NPAs, says Charan Singh
  • IMF chief Christine Lagarde says US-China tensions ‘threat’ to world
  • Rupee slips to 69.43 against US dollar
  • Multifold increase in investments in B2B startups
  • NBCC offers just Rs 20 crore to operational creditors.
  • HDFC Bank board may go for splitting stock into two later this month
  • Wockhardt Q4 net loss narrows to Rs 14.47 cr
  • Industry bodies list key issues for GST Council meet next month
  • Gujarat Gas net jumps 77% in March quarter
  • PFS reports Q4 net profits at Rs 36.76 crore
  • Liquidation process for ABG Shipyard commences
  • Medlife acquires Bengaluru-based Myra Medicines
  • NRIs can remit up to $1 mn from sale of property in India
  • Investor wealth erodes by ₹1.24 lakh cr as markets plunge
  • Finance Commission to meet RBI governor, bank officials during Mumbai visit
  • Asset quality improves but trend in slippages, provisions key of ICICI Bank.
  • UK entrepreneur says SBI allows him to bid for Jet Airways
  • Mastercard commits $1 bn investment in India in next 5 yrs; to develop India as global tech node.

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 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.

REPORTING OF FORM FC-GPR TO RBI

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RBI Circular No. 40 dated 1st February, 2016; RBI has made it mandatory to report any transactions and filing of forms online in respect of issue and transfer of shares from an Indian Entity to outside India.

The Form FC-GPR comes into use whenever there is new issue of shares. The onus to submit the form or comply with the laws is on the resident entity.

Any Company or Organization receiving foreign investment must report the transaction to the RBI within a stipulated timeline. Similar to the filing of FC-TRS which is filed online, the Form FC-GPR is also required to be filed online.

The timeline is briefly described below:

  1. a) Foreign funds received
  2. b) Within 30 days of receiving the money file ARF (Advance Remittance Form) with the RBI
  3. c) RBI will issue UIN (Unique Identification Number) after submission of ARF
  4. d) Within 180 days from the date of receiving the money, allot the shares
  5. e) File FC-GPR within 30 days from the date of allocation of shares.

Before reporting the transaction, applicant needs to obtain following:

  • Unique Identification Number from RBI by reporting of Advanced Foreign Remittance.
  • KYC report for the beneficiary if the beneficiary and remitter are different entities.
  • CS certificate
  • Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India
  • Disclaimer Certificate
  • Statutory Auditor Certificate
  • Board resolution
  • LRN(Loan Registration Number) allotted
  • Copy of FIPB approval (if required)
  • Details of Transfer of shares if any
  • No objection certificate from the remitter for the shares being allotted to the third party mentioning their relationship
  • Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf
  • Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter
  • Reason for delay in submission (if required)

Once all the above documents are obtained, the applicant shall duly fill the Form FC-GPR and complete it in all respects without any error, attach the Digital Signature of the applicant and upload the form online at https://www.ebiz.gov.in. In this case also, it is to be noted that merely filing the Form FC-GPR does not discharge an entity of its duties in regard to compliance of the relevant laws, the same shall be considered complete only after it is approved by the RBI.

General Instructions

  • The electronic form (Form) can be accessed from service landing page and can be filled offline
  • If you choose “Load prefill data” option while opening the form, then some fields may get prefilled with data you have filled previously while applying for this service. You may change this data if you wish.
  • The saved draft can be accessed later from “My Saved Drafts” section in Menu options. This draft is available for 3 months or until the form is submitted.
  • Field marked with * are mandatory and needs to be filled in before a form can be submitted on e-Biz portal. You may not be able to leave some of the field’s blank in the e-Form. In case you wish not to enter data in a field, please input “NA” if it is a text/description field or a 0, if it is a numeric field.
  • The e-form needs to be digitally signed using a digital signature by the applicant. If applicant wishes to make any modifications to an already signed e-Form, right-clicking on the signature field and choosing “Clear signature” will enable editing of form and any modifications can be made to the form.

Electronic Attachments:

Upload the file using the attach link and if you wish to remove any file, use the remove link.

  • Reason for delay in submission: this attachment is required if the form is submitted after 30 days from the date of receipt of funds
  • CS Certificate
  • III. Certificate from SEBI registered Merchant Banker / Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.
  • Disclaimer certificate
  • Statutory Auditor Certificate
  • Board resolution
  • VII. LRN(Loan Registration Number) allotted
  • VIII. Copy of FIPB approval (if required)
  • Transfer of shares details, if applicable
  • If the investor and remitter are separate entities, please provide the following documents:
  • No objection certificate from the remitter for the shares being allotted to the third party mentioning their relationship
  • Letter from the foreign investor explaining the reason for making subscription to shares by the remitter on his behalf
  •  Copy of agreement/Board resolution from the investee company for issue and allotment of shares to the foreign investor, other than the remitter
  •  KYC report for the beneficiary
  • Any other attachments: Add any other document if required.

 

Verification:

Enter the following details in this section:

  • Name of the Person
  • Name of the Place.
  • Date of signing the electronic form
  • Designation.
  • Digital Signature of Authorized signatory of the investee company.

 

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, VALUE ADDED TAX,GOODS AND SERVICE TAX, Excise, Etc for resolving their doubts or for clarifications.

 

CORPORATE AND PROFESSIONAL UPDATE MARCH 27, 2017

Professional Update For the Day:

1 (2)

Direct Tax:

Provision made by the assessee for payment of any gratuity, that has become payable during the year is allowable. In fact the CBDT has also clarified the introduction of section 40A(7) that the provision made for payment of gratuity that has become payable during previous year is allowable. Therefore the liability accrued on account of the gratuity which became payable during the year on account of the employees who retired during the year itself is allowable  [DCIT Vs M/s. Reliance Jute Mills International Ltd (ITAT Kolkata) ]

CBDT Stipulates Guidelines For Waiver Of Interest Charged U/s 201(1A)(i) Of The Income-Tax Act, 1961 For TDS Default.  Circular No. 11/2017 dated 24.03.2017.

Insurance & Travelling Expenses incurred in Foreign Currency needs to be Excluded from both Export and Total Turnover for the purpose of section 10A Calculations. [M/s. Sunquest Information Systems India Pvt. Ltd. Vs JCIT (OSD) (ITAT Bangalore)]

Indirect Tax:

CESTAT holds that exemption accorded to small scale industries under Notification No. 8/2001-CE cannot be denied because brand name used by assessee is registered with another person; CESTAT observes that such denial would constrain the exemption Notification and would be perilous for any small unit to use a brand unless registered in own name [TS-57-CESTAT-2017-EXC]

Finance ministry on Saturday approved the re-organisation of the indirect tax wing renaming the Central Board of Excise and Customs (CBEC) as the Central Board of Indirect Taxes and Customs (CBIC).

FAQ on GST: 

Query: If taxable person affects inter state supplies, can he availed composition scheme?

 Answer: If taxable person does not affects inter state supplies,then he cannot avail composition scheme.

GST Update

GST Provisional IDs not used till 31.3.17 may be cancelled as not needed. All existing indirect tax assessees migrate to GST by 31st March, 2017.

The CBIC will have 21 zones, 101 GST tax payer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3,969 ranges, 49 audit comm and 50 appeals Commissionerates.

RBI UPDATE

RBI issued notification that All Agency Banks to remain open for public on all days from March 25, 2017 to April 1, 2017.

Other Update

ICAI invites applications for suitable positions at various levels for Financial Reporting Domain of its Technical Directorate on full time / contractual basis for its Mumbai location. www.icai.org

The Ministry of Labour and Employment has notified the draft Contract Labour (Regulation and Abolition) Central Amendment Rules, 2017. It provides employers to pay wages to its employees through cheque or e-payment.

The Comptroller and Auditor General of India (CAG) plans to audit the impact of note ban and the affect it has had on government tax revenues, said CAG Shashi Kant Sharma.

Key Due Dates:

Important dates for March 2017:

  • 6 March  : Service tax monthly deposit other than Ind, HUF & P.Firm
  • 7 March  : TDS/ TCS deposit
  • 15 March : Deposit of PF
  • 15 March : Payment of Advance Tax
  • 20 March : Monthly UP VAT return & tax
  • 21 March : Deposit of ESI
  • 31 March : E-payment of service Tax by all assesses Monthly/ Quarterly
  • 31 March : Filing of Belated Income Tax returns for the A/Y 15-16 & A/Y 16-17
  • Return of TDS for dec quarter in DVAT 48 : 17:03:2017
  • E payment of DVAT & CST tax for Feb : 21:03:2017
  • Date of filing of DVAT Return in Form 16,17, and 48 for Q-3 , 2016-17 has been extended upto 31.03.2017 vide circular 28 dated 17.03.2017.
  • E payment of service tax for quarter ended march : 31:03:2017
  • E payment of excise duty for quarter ended : 31:03:2017
  • Filing of ITR for AY 2016-17 without penalty & AY 2015-16 with penalty of 5000 : 31:03:2017
  • Payment of balance Advanve income tax by ALL (sec 234B&234C) : 31:03:2017
  • Issue of DVAT certificate for deduction made in feb : 22.03.2017

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Self-confidence is key to success. It’s four components are: Feel Good, Take Responsibility, Be Accountable and Develop Skills.

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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; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-23343333 / 9555555480

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CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 24, 2016

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Direct Tax:-

  • Sum paid to brothers for vacating house held as cost of improvement of house
    Nanubhai Keshavlal Chokshi HUF v. Income-tax Officer, Ward- 6 (2), Ahmedabad
    [2016] 74 taxmann.com 113 (Ahmedabad – Trib.)
  • Discrepancies in docs under penultimate sales would also lead to denial of export exemption
    Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)
  • ITAT denies set-off of speculative loss when assessee misstated that it was connected with brokerage business commissioner of Income-tax, Kol-II v. Eureka Stock & Share Broking Services Ltd.[2016] 74 taxmann.com 114 (Calcutta)
  • IT: Notice u/s 148 for reopening assessment by the very same officer who executed the scrutiny assessment and granted exemption U/s 11- It is a case of change of opinion – Notice quashed – Gujarat State Board of School Textbooks Vs ACIT (2016 (10) TMI 775 – Gujarat High Court)
  • Attachment order had be lifted when ITAT deleted all tax demand and revenue didn’t apply for stayShangkalpam Industries (P.) Ltd. v. Income Tax Officer, Company ward VI(1), Chennai
    [2016] 74 taxmann.com 102 (Chennai – Trib.)
  • The Delhi High Court in Pr CIT vs. Samcor Glass Ltdhas warned the department not to harass taxpayers by reopening assessments u/s 147/148 in a mechanical and casual manner. Pr CIT directed to issue instructions to AOs to strictly adhere to the law explained in various decisions and make it mandatory for them to ensure that an order for reopening of an assessment clearly records compliance with each of the legal requirements. AOs also directed to strictly comply with the law laid down in GKN Driveshafts 259 ITR 19 (SC) as regards disposal of objections to reopening assessment.
  • The Karnataka High Court inColumbia Sportswear Company vs. DIT has held that a liaison office of a foreign co which identifies a manufacturer in India, negotiates the price, helps in choosing raw material to be used, ensures compliance with quality and gets material tested is not a ‘permanent establishment’ under Article 5 of India-USA DTAA.
  • CBDT vide Notification No. 95/2016 notified director, vigilance and anti-corruption bureau, Kerala U/s. 138(1)(a)(ii) to whom in public interest disclosure of information respecting assessees can be made by income tax Department.

Indirect Tax:-

  • HC dismisses writ petition, denies assessee cross examination of Chemical Examiner of Central Revenue Control Laboratory who gave sample testing report of imported goods; Person whom assessee seeks to cross examine is an officer / Govt. servant who was discharging statutory duty and therefore, not a witness to the proceedings. [TS-415-HC-2016(MAD)-CUST]
  • HC dismisses writ petitions, refuses to interfere with order of Settlement Commission that directed payment of excise duty liability against removal of leather goods by assessee by indulging in manipulation of records of sister concerns and job-workers to avail SSI exemption. [TS-414-HC-2016(MAD)-EXC]
  • ST: Activity of toll collection on commission basis would not fall under the category of business auxiliary services so as to make the same liable to service tax – service not liable to tax –Prakash Asphal Ting & Toll Highways (India) Ltd. Vs CCE, Jaipur-II (2016 (10) TMI 746 – CESTAT New Delhi)
  • VAT: Taxability of a Car Stereo System – electronic goods falling under Entry 75 or motor vehicle falling under Entry 18 – It cannot be gainsaid that a car stereo does add to the comfort for the use of a motor vehicle – car stereo held as accessory – to be taxed accordingly – Sony India Pvt. Ltd. Vs CIT & Anr. (2016 (10) TMI 720 – Allahabad High Court)
  • Quarterly returns under DVAT Act and CST Act for dealers registered in Delhi for the 2nd quarter of 2016 ended on 30.09.2016 is due to be filed on or before 28.10.2016.
  • Body building of buses on job-work basis should be valued under rule 10A of Excise
    HMM Infra Ltd. v. Commissioner of Central Excise, Panchkula[2016] 74 taxmann.com 86 (SC)
  • Discrepancies in docs under penultimate sales would also lead to denial of export exemption
    Commissioner of Commercial Tax v. Shakti Containers[2016] 74 taxmann.com 39 (Gujarat)

RBI UPDATE :

  • The Reserve Bank of India decided to allow foreign investment up to 100 per cent under the automatic route in ‘other financial services’.
  • RBI issued operational guidelines for sovereign gold bonds 2016-17 series III vide notification No.RBI/ 2016-17/ 99I DMD. CDD.No.894 /14.04.050/2016-17 October 20, 2016.

 

MCA UPDATE :

  • MCA has recently revised Forms CHG-8, AOC-4 and 20-B. Stakeholders are advised to check the latest version before filing.
  • MCA:MGT-07/20B filed but the same has not been taken on records due to non-submission/non-uploading of CD are requested to upload the data in excel sheet by 07th November 2016.

GST UPDATE :

  • Under GST proposed GST Rates. Food items-Exempt, Gold, Silver-4%, Essential items-6%, Luxury items, FMCG, cigarettes-26%+cess, most items-18%, Others-12%.
  • Under GST w.e.f.  8/11/16, existing 80 lac assessees will be able to access their data migrated to GSTN, make necessary corrections & upload relevant documents.
  • GSTCouncil to meet on 3-4 Nov to consent on Rates, Draft Bill, Etc.

Key Dates:

  • Issue of DVAT Certificate for deduction made in the month of September-22/10/2016
  • E-return of DVAT for the quarter ended September(Form 61 and CST-1)-25/10/2016
  • Filling of half yearly service tax return-25/10/2016

Everyone has two eyes. But no one has the same view. So always try to prove that you are right but never attempt to prove that others are wrong.

The kite gives us a nice & wonderful message. Fly high & high. But stay connected to the ground to our roots or else you will be lost.

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CORPORATE AND PROFESSIONAL UPDATE OCT 14, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 14, 2016

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Direct Tax:-

High Court in the below citied case held that Statement of 22-year-old partner should be considered in search if he is actively involved in business of firm.( Classy the Antique Disigned Furniture v. Deputy Commissioner of Income-tax, Central Circle-2, Kozhikade.)

Bombay High Court in the below citied case held that Income Escaping Reassessment will be void Void if Reasons are not supplied to the assessee- (CIT (Large Tax Payer Unit), Mumbai IDBI Ltd.)

IT: TDS u/s 192 or 194J – merely because doctors are subject to the payment of PF or other retirement benefit TDS u/s 194J is not deductible – Sir Hurkisondas Nurrotumdas Hospital & Research Centre Vs DCIT (TDS)-3 (2), Mumbai (2016 (10) TMI 432 – ITAT Mumbai)

IT: No TDS liability u/s 194-I on lump sum lease premium or one-time upfront lease charges which are not adjustable against periodic rent paid or payable for acquisition of long-term leasehold rights over land – CBDT Circular No. 35 of 2016, dt.13 OCT 2016.

CBDT restricts acceptance of contributions by electoral trust by amending Rule 17C to provide that   (a)  from an individual who is not a citizen of India (b) from any electoral trust registered u/s 25 of the Co Act.

Indirect Tax:-

CESTAT denies CENVAT Credit on capital goods received in FY when final product (asbestos cement sheet) was chargeable to Nil rate of excise duty; Notes that assessee claimed credit i.r.o. capital goods and services upon obtaining Central Excise Registration consequent to final product becoming exigible to 18% duty. [TS-409-CESTAT-2016-EXC]

The government has doubled the limit of excise duty evasion for arrest and prosecution of accused to Rs 2 crore and also asked officials not to resort to penal provision in cases of technical nature.

ST: Levy of service tax – security services – sovereign functions – After choosing one particular remedy the plaintiff cannot avail the other remedy as well in respect of the same relief founded on same cause of action – State of Rajasthan Vs Union of India & Others (2016 (10) TMI 462 – Supreme Court)

Indirect Tax collections up to September, 2016 show an increase of 25.9% over the net Indirect Tax collections for the corresponding period last year(2015-16)

Bombay HC grants interest on delayed CENVAT Credit refunds u/s 11BB of Central Excise Act; Notes that original refund application was initially rejected by Revenue on merits and not on basis of incomplete application. [TS-410-HC-2016(BOM)-EXC]

GST Updates:

GST: Portal of GST Registration would be open for the existing taxpayer from Nov’ 2016 – GSTN Chairman

GST law to be passed in winter session of parliament commencing from 16 Nov 16 and ending on 16 Dec 16.

Under GST amount paid by assessee is used first for self assessment tax and interest of earlier periods, then current period & then other amounts e.g. demand.

Under GST normal & compounding taxpayer to file annual return. Not to be filed by casual / Non-resident taxpayers, ISDs & persons liable to deduct TDS.

MCA Updates:

The e-Form INC-29 (Integrated Incorporation Form) will no longer be available on the Ministry’s portal and stakeholders will not be able to file any previously downloaded versions from 1st November, 2016. The e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1st November, 2016.

Only Forms INC-32 i.e. SPICE (Simplified Proforma for Incorporating Company electronically), INC-2 (One Person Company), or INC-7 (Incorporation of Company) are applicable for incorporation of Company.

MCA has notified that e-Form INC-29 (Integrated Incorporation Form) will be withdrawn w.e.f. 1 .11. 2016.

MCA revised Forms 23AC XBRL,23ACA XBRL & AOC-4 XBRL,w.e.f. 5.10.16,& Forms MGT-15, FC-3, INC-4, MGT-14, 23C,23D,A-XBRL,I-XBRL w.e.f. 8.10.16.

SEBI Update :

SEBI in it’s circular stated that exclusively listed co (ELCs) will be required either raise capital for listing or exit from the dissemination board.

The special investigation team (SIT) on black money has asked the SEBI to furnish the details of P-Note data for black money investigation.

OTHER UPDATE :

Bank of Baroda, invites proposal (RFPs) for appointment of concurrent auditors for branches for south Gujarat zone (Baroda) Last Date : 07.11.2016.

Ministry of labour and employment invites comments on increasing limit for ESI coverage from INR 15,000 to INR 21,000.

ICAI request members to improve annual ROC filing compliance to promote high standard of integrity and professionalism it is an essential part of the professional duty of the Chartered Accountants.

Key Dates:

Payment of DVAT TDS for the month of September-15/10/2016

Form 27EQ (TCS return) by all deductor-15/10/2016

Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016

Statement by bank in Form no. 15CC in respect of foreign remmitence during the quarter-15/10/2016

E-Payment of PF for the month of September-15/10/2016

Your mind is a magnet, thoughts attract. If you always think of blessings, you attract more blessings. If you always think of problems, you attract more problems.

Your problem isn’t the problem. Your reaction is the problem.

We look forward for your valuable comments. www.carajput.com

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Everything That You Need To Know About GST

Everything That You Need To Know About GST

Image result for Everything That You Need To Know About GST

Goods and Services Tax (GST) is a form of indirect tax. It is proposed to come into force from 1st of April 2017. The main intention of introducing the GST is to remove the cascading effect of taxes which basically means taxes on taxes. Cascading effect wasprevalentin VAT (Value Added Tax), Central Sales Tax(CST) and excise duty. Once the GST comes in effect all other forms of indirect taxes like VAT, CST, excise duty will be removed from the picture.

Who levies it?

The GST is levied by both central and the state government depending upon the different wings as explained below.

There are 3 wings of GST :

  1. CGST – Central Goods and Services Tax

CGST is imposed and collected by the central government. The goods which are sold between 2 different states comes under this. This effectively replaces CST.

  1. SGST – State Goods and Services Tax

SGST is imposed by the state government. The local sales happening within the state comes under this wing. This can be seen as a replacement of state VAT.

  1. IGST – Integrated Goods and Services Tax

Other sales which are outside the ambit of CGST and SGST come under the IGST. This can be referred to as a residual list.

What benefits can we expect from GST?

  • No room for confusions

The whole of India would unanimously come under GST. GST rate is fixed at 18% for all goods and services. This uniform rate will remove all the confusions which are currently happening because of variable rates, especially in VAT.

  • Ease of calculations

For businesses which undergo a lot of transactions and sales in just one day in awide range of products, theapplicability of a single uniform leads to easier tax calculations.

  • Price reduction in various goods and services

We can expect a fall in the prices of many goods and services. The GST will have a positive impact on many goods and services. To put in simpler terms, the goods which are in a higher tax bracket now will be reduced to18%. The electronic goods can expect a lot more benefits in particular.

  • Less time-consuming

Unlike service tax which is complicated to understand due to its negative list or mega exemption list, the GST has lesser complications making it a quick process. We no longer need to check if the service is a taxable service or not like in service tax. Thus, half the time is reduced.

  • Boom in government revenues

There is no escapism from GST. It is a compulsory tax and no one can escape it due to the system in force. The government revenue is thus bound to increase once GST comes in force.

  • Fewer documentations and statutory formalities

Unlike the service tax or CST, the GST will involve very fewer documentations and legal formalities. The process of paying indirect taxes is made much easier and quicker with the advent of GST. This will also lessen the burden of paying heavy fees to expertise professionals.

Thus the introduction of Goods and Services Tax is no less than a boon to the world of indirect taxes making all confusions and complications vanish!

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications. Continue reading

A Comparative Outlook Of Goods And Services Tax

A Comparative Outlook Of Goods And Services Tax

Image result for A Comparative Outlook Of Goods And Services Tax

The GST is a new regime in the world of indirect taxes. It is a tax on the sale of goods and services and a uniform rate is applied to all kinds of goods and services.  It is proposed to be brought into force from 1st of April 2017. All the complications which people faced while filing their indirect tax returns are said to be removed by GST. Besides, introduction of GST also paves way for the foreign investors to invest in India. Further,it is expected that GST will ease the operations and provide ease of entry for global dealers.

To have an insight of GST knowing the objectives is important. The basic objectives of GST are listed below:

  • The whole of Indian market must be integrated as one global village having a uniform rate
  • The working efficiency of the indirect taxes department must be increased. The formalities are made much easier with the introduction of GST.
  • The tax incidence must have an impact only on the domestic consumption and not on industrial consumption.
  • To reduce tax evasion by making it compulsory to get GST registration for all businesses carrying on business in sale of goods and services.
  • To remove the cascading effect of taxes. In present,we tend to pay taxes on taxes leading to double taxation. This problem is solved by GST.
  • The cooperative federalism would be built between the central and the state governments.
  • The existing confusions about the indirect tax rates especially the service tax and State VAT ought to be solved once GST is in force.

The GST model

The GST council has decided that the taxes would be collected by both central and state governments. There are 3 wings of GST:

  • Central Goods and Services Tax (CGST) which is imposed and collected by the central government on interstate sales.
  • State Goods and Services Tax (SGST) which is levied and duly collected by the respective state governments on local sales.
  • Integrated Goods and Services Tax (IGST) which covers those which are not covered in the above two and collected by the central government.

The principle of set off and input credit

The set off benefit is made available to the people who would have purchased goods with the intention of sales. Thus they can set off the GST which is paid. But there are specific provisions regarding the set off. Some basic rules being:

  • The taxes which are paid against the CGST should be taken as the credit when the same goods are being purchased and sold.
  • The SGST cannot be set off with the CGST. It can be set off against the IGST if there is any surplus available.
  • Cross set off between the CGST and SGST is strictly prohibited by the GST law.
  • But on purchase of capital goods, the set off can be made between the CGST and SGST. Thus the government is encouraging the purchase and sale of capital goods.

Few exemptions to be provided by the GST as suggested by the GST council

In the prevailing indirect laws like service tax, there is a mega exemption list which exempts few kinds of services from the levy of service tax. Similarly, the GST council has laid down that GST also should be providing some exemptions to certain range of goods and services. A list of such goods and services proposed to be exempted from levy of GST are:

  1. All government public services inclusive of the following:-
  • Government schools and colleges
  • Defense department
  • Police departments
  • Intelligence and verification departments

On the other hand, the following services are not going to have exemptions:

  • Banks and insurance companies
  • Post and telegraph
  • Railway department
  • Commercial departments
  • Education and health departments
  1. Any sale of food articles which are unprocessed and which are covered under the public distribution system.
  2. Health and education services which are provided by the non-governmental establishments.
  3. Any transactions of service contract between an employee and his employer for the service provided as well as service received.
  4. GST exempts goods including alcoholic products, tobacco products and emission fuels.
  5. Also petroleum products and natural gas are outside the ambit of GST and they would continue to be levied and collected by the central government.

The taxes to be subsumed by GST and its impact

The central levies which will be subsumed by GST once it comes into force are listed below which helps us to have a comparative analysis:

  • Central excise
  • Service tax
  • Additional customs duty
  • All cesses and surcharges

These taxes would no longer continue to apply. They shall cease to be collected from the central government. Thus the service industries which face a lot of confusions and dilemmas while they undertake filing of service tax returns will be benefitted by GST. The excise and customs too will have fewer complications now and the customs clearance offices will be benefitted to a great extent by GST.

State levies which would be subsumed in GST are:

  • State VAT
  • Entry tax
  • Luxury tax
  • Entertainment tax

There are differential rates in the state VAT and people face difficulties in determining the rate. GST would fix that problem. Also, the sky scrapping rates of entry tax and luxury taxes are washed away benefiting mostly the customers.

Thus the introduction of GST will lower the prices of many products and services. There will be a uniform rate applicable to the whole of India. All the confusions about the differential rates would thus be removed by GST. The tax authorities too are benefitted as they don’t have to crack their heads searching for what rate is applicable to what kind of product. The collection of revenue would be regular to the government as the GST would be made compulsory to all indulged in sale of goods and services. At the end of the day, except for few industries or categories, majority of the tax stake holders are going to be benefitted by the GST. Whole of India is looking forward to the introduction of GST with their fingers crossed!

We look forward for your valuable comments. www.carajput.com

FOR FURTHER QUERIES CONTACT US: W: www.carajput.com  E: info@carajput.com T: 011-233-4-3333, 9-555-555-460

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may visit the web site of Government site Like Income Tax Department, Services Tax, Excise, Etc for resolving their doubts or for clarifications.