Corporate and Professional Updates 4th June 2019

Indirect Tax Updates:

• Gujrat High Court in the matter of Neuvera Wellness Ventures Pvt Ltd Vs State of Gujarat orders release of goods being perishable on furnishing security by way of bond under GST.
• Companies can claim input tax credit (ITC) under the goods and services tax (GST) regime even if the liability to pay for inputs between them, including tax, is discharged through adjustments in their books, ruled an authority for advance rulings (AAR). The Bengal wing of AAR made the ruling while hearing a case relating to Senco Gold, a supplier of jewellery. The firm also operates a network of franchisee-operated stores.
• Explaining the case, Harpreet Singh, partner at KPMG, said the applicant raised tax invoices on the franchisee for the supply of jewellery and for providing of franchisee support services. Correspondingly, the franchisee also raised tax invoices on the applicant for supply of old jewellery received from customers.

RBI Updates:

• 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:

• 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:

• FinMin starts groundwork for fresh bank consolidation
• India’s economy big worry for Modi: FICCI
• Airtel submits Rs 644 crore bank guarantee for merger
• IndiGo Q4 profit jumps 5-fold to Rs 590 crore
• Provide names of big loan defaulters: CIC to RBI
• Radio City to acquire 40 Big FM stations for Rs 1,050 cr
• Arcelor, Resurgent said to mull joint bid for Essar plant
• China’s planned curbs on aluminium scrap imports nettles Indian players
• India Inc Q4 revenue growth slumps to six-quarter low of 10.7%
• Indian Hotels to go on global expansion spree, may opt to buy out firms
• Avendus Future acquires stake in Bikaji Foods for Rs 40 crore
• Lupin’s Goa plant may face regulatory action, says USFDA after inspection
• BHEL Q4 results: Net profit jumps 50 per cent at ₹682.7 crore
• Colgate-Palmolive Q4 net up 4.7% to Rs 197.50 cr
• Inventory write-off drags Natco Pharma’s net down 60%
• Pension scheme provisioning pushes Oil India into red
• PIL against the operations of the Paytm Post Paid Wallet filed in Delhi HC
• Zee Entertainment Enterprises Q4 net profit up 26.8% to ₹292.53 crore
• Kerala to levy 1% flood cess from 1 June
• Govt proposes WTO-compliant schemes to boost Make in India
• Zee stake sale to be completed by July, says Punit Goenka
• GDP growth in Q4 likely to moderate to 6.1-5.9%, may lead RBI to cut rates: SBI report
• Bid for BPSL: Lenders move NCLAT for quick approval to JSW Steel’s plan
• Ingen resolution plan for Orchid Pharma rejected again
• India Inc revenue growth in Q4 hits six-quarter low of 10.7 pc
• Confident of timely payment of salary for May: BSNL chief
• Amid recovery in greenback Rupee settles with 2 paise gain against USD
• Emami’s net sales up 5 per cent at Rs 635 crore
• Care Ratings expects power generation to grow
• Sun Pharma Q4 profit halves to Rs 636 crore
• Lookout notice issued against DHFL promoters
• Airtel Africa may raise $1 billion from stake sale
• World Bank to invest $35 mn in Manapurram Finance
• Tech Mahindra & MKI collaborate for Japanese market
• Welspun in talks to own slum rehabilitation projects, loaned by Dewan Housing Finance Ltd
• RBI extends timing for fund transfer through RTGS till 6 pm from Jun 1: RBI
• GMR Warora Energy on verge of defaulting on over Rs 3,000-crore loans
• Adani offers lenders Rs 500 cr upfront in fresh bid for Jaypee Infratech
• Tata Steel can withstand 20% drop in EBITDA over next 2 years: S&P Global
• Steel may grow by 6-8 pc in FY20 amid concerns over dumping from China
• FDI inflows record first decline in six years this fiscal
• Pfizer Q4 net up 4.74 per cent to Rs 109.47 crore
• IT Dept trains officers to detect tax evasion in shell Cos
• Hind Copper consolidated Q4 net up 16% to Rs 40 cr
• Mphasis Q4 net profit up 11.9 per cent to Rs 266 crpre
• NMDC net profit grows 31% to₹1,453 cr in Q4
• Gail to list Gail Gas, plans ₹54,000 crore capex in 2-3 years
• Tata Consultancy Services listed among top 50 US companies for diversity
• Bank ETF launch likely By Dec, to help funds mop-up, cut govt stake in banks
• IRB Infrastructure Q4 net profit dips 13% to₹208 crore
• SBI looks to raise up to ₹18,000 cr via QIP
• NCLT asks Sebi to conclude probe into ITC, LIC allegations against Leela
• Lakshmi Vilas Bank Q4 net loss narrows to Rs 264 crore
• India can attract 1.5-2 per cent FDI to GDP ratio: Nomura
• DLF transfers Rs 330 crore land to JV with GIC for settlement of dues
• Rupee slips 18 paise against dollar on high dollar demand
• Sensex, Nifty clock fresh closing highs on fund inflows
• NCLAT gives 4 weeks to Bakshi to settle dispute with HUDCO
• PNB narrows Q4 loss to Rs 4,750 crore.

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.