Corporate and Professional Updates on 14th June 2019

Direct Tax Updates:

• Income Tax Advance Tax last date is 15.06.19 of first instalment for FY 2019-20. Pay on time & avoid levy of penal interest.
• If your landlord happens to be an NRI, make sure you deduct TDS each month from the rental payment. TDS needs to be 31.2% of the rent, unless the NRI landlord furnishes a certificate stating that his total income in India is estimated to fall below the tax exemption limit.
• Income Tax Advance Tax Last date is 15.06.2019  for paying first installment of Advance Tax for FY 2019-20. Non/short payment is liable to penal interest.

Indirect Tax Updates:

• Finance Ministry unveiled a roadmap for the implementation of the new GST return mechanism. It has also put in place a transition mechanism. The new mechanism will be used on a trial basis from July to September. For the large taxpayers (those whose aggregate annual turnover in the previous fiscal was more than 5 crore, Form GST ANX will replace GSTR 1 from October.
• CBIC has issued a Clarifications on filing of Annual Return (FORM GSTR-9) based on the queries with respect to filing of this Annual return. It is clarified that the last date for filing of Annual return in FORM GSTR-9 will remain 30th June 2019.
• Many Indian exporters approached the Delhi High Court last week against the government for not extending the benefits of EPCG  scheme to goods and services tax (GST) regime.

RBI Updates:

• RBI staff will come up with a new framework by mid-July. The task is to simplify liquidity management by spelling out the why, how and what of liquidity. When the central bank’s staff begins to hammer out a new framework, they should keep in mind that more communication is good communication.

SEBI Updates:

• SEBI is planning to rejig the structure of credit rating firms under which the companies will be required to have independent directors forming the majority on the boards and a nominee of the regulator. Recent investigations in IL&FS default revealed the apparent conflict of interest in the conduct of the business of credit rating companies in India.
• The Securities and Exchange Board of India (SEBI) has introduced a “probability of default” mechanism to keep credit rating agencies (CRAs) in check. The directive could reduce the number of companies that are in the top-rated category. According to the new framework, rating agencies have to assign the default probability to each rated debt instrument, and disclose its benchmark by December-end. The move assumes significance given that it helps reduce recurrence of major default cases such as the Infrastructure Leasing & Financial Services (IL&FS) crisis, which brought rating agencies under the government’s and regulator’s lens. 
• IL&FS commercial papers were downgraded from ‘triple A’ to ‘D’ (or, default grade) in just 40 days. “In order to enable investors to discern the performance of a CRA vis-a-vis a standardised probability of default (PD) benchmark scale, CRAs, in consultation with Sebi, shall prepare and disclose standardised and uniform PD benchmarks for each rating category on their website, for 1-year, 2-year and 3-year cumulative default rates, both for the short-run and long-run,” Sebi said on Thursday. 
• The standardised and uniform PD benchmarks should be disclosed on the website of each CRA for ratings of long-term and short-term instruments on a consolidated basis for all financial instruments rated by a CRA — by December 31, 2019. Further, the regulator tweaked norms on computation of default rates by rating agencies. It says rating agencies may re-index probability benchmark and tolerance level from time to time. 

Employee Provident Fund Updates:

• The government on Thursday announced reducing the total rate of contribution made by workers and employers towards the Employees’ State Insurance (ESI) scheme from 6.5 per cent to 4 per cent for the first time in over two decades. The move is expected to benefit around 1.3 million employers who will see a 40 per cent reduction in the rate of contribution they make for their employees, in line with the provisions of the Employees’ State Insurance Act, 1948.

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-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.