Corporate and Professional Updates on 23rd August 2019

Corporate and Professional Updates on 23rd August 2019

Indirect Tax Updates:

• Companies will get up to 70 per cent duty relief if they settle their pre-GST disputes with the tax authorities, according to a scheme, which will become operational from next month and run till the end of 2019. There will also be an amnesty scheme. Under this, the assessee will have to voluntarily disclose the due taxes. The assessee will have to pay the full amount, but they will not face any legal action. Sabka Vishwas (Legacy Dispute Resolution Scheme), 2019, was announced in the Budget.
• In cases of confirmed duty demand, where there is no appeal pending, the relief offered is 60 per cent if the duty is up to Rs 50 lakh and 40 per cent if the duty is over Rs 50 lakh. The scheme’s objective is to free as many taxpayers as possible from legacy taxes, the finance ministry said in a statement. The scheme is especially tailored to free small taxpayers from their pending disputes, the statement said. “The government urges taxpayers and all concerned to avail themselves of this scheme and make a new beginning,” the statement said.

Key Points of Finance minister Speech:

• GST returns to be further simplified Monetary penalties will be on focus, no prosecution anymore. Not fulfilling CSR will be a civil offence, not criminal offence all IT summons will be issued from a centralized system
• Any notice without a Document Identification Number (DIN) will be treated as invalid. All old notices will be uploaded with DIN on or before 31st October 2019.
• All notices on which responses have been received will be closed within 3 months from the date of response.
• Enhanced surcharge on CGs in case of FPIs removed
• Section 56(2B) of IT Act, 1961 shall be not applicable to a registered startups. A dedicated cell in CBDT will be available to resolve issues related to startup
• Benefit of Interest Rate reduction will be passed on by the banks.
• The Banks to link Repo rates with Interest rates on loan : Working capital loan and Home loan interest rate change to be effected immediately once RBI repo rate changes

OTHER UPDATE 

• Bank Documentation after loan repayment to be completed within 15 days.
• Online tracking of loan application will be available with status.
• Banks for One-time settlement of loan by MSME will follow a check box approach
• The Banks to classify matters as Vigilance and Non-vigilance to improve decision making process
• NBFC to be permitted to use Aadhar authenticated bank KYC to avoid repeated process.
• All pending GST refund due till date to MSMEs shall be paid within 30 days.
• MSME definition will soon have one single definition
• All new GST refund due to MSMEs shall be paid within 60 days
• Bond markets in India to be deepened.
• Indian companies to access global markets – Depository Receipt Scheme to be operationalised
• Aadhar based KYC for domestic retail investors
• Measures to bring Offshore rupee market to domestic stock exchanges
• Delayed Infra payment from Government / Central Public Sector Enterprises (CPSEs) will be dash boarded and monitored for early clearance.
• BS-IV vehicles purchased till 31.3.2020 will remain operational for entire period of registration.
• Revision of one-time registration fee is deferred till June 2020.
• Additional 15% depreciation on all vehicles acquired from now till March 2020 is available (in essence 30%)
• Both Electric Vehicles and Internal Combustion vehicle will continue to be registered.
• Government departments to replace old vehicles with new ones

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
• Japan’s Orix to acquire wind assets of IL&FS
• GST Council may consider national bench of AAAR next month
• AstraZeneca moves US court against Aurobindo
• India’s rating hinges on policies of new govt: Moody’s
• Adani Ports to set up first container terminal outside India in Myanmar
• De-growth in domestic traffic due to Jet Airways grounding: Icra

Key update of Finance MARKET :

• DP World acquires 76% stake in KRIL
• Startups to restart talks on issues with govt
• Modi’s big win signals strong GDP growth to continue
• EPFO may suspend investment in private sector bonds, say sources
• Nippon Life, Reliance Capital sign deal for sale of mutual fund arm
• GIC Q4 PAT down 19.7% at Rs 603 cr on provisioning for IL&FS exposure
• Basmati exporters hold shipments to Iran fearing payment defaults
• Domestic pharma companies eye robust growth from US market in FY20
• Steel Strips Wheels bags orders for 400,000 wheels
• New govt to award lease rights for 6 non-metro airports to Adani
• EU, China, Thailand join hands against India’s ICT products tariff
• Ola Fleet Tech gets Rs 40-crore loan from Tata Motors Finance
• April witnesses 96% fall in M&A deal values: Report
• Rupee pares gains, settles 36 paise down at 70.02
• Sensex sheds 298.82 to close at 38,811; Nifty shrinks to 11,650
• Paytm Payments Bank posts profit of Rs 19 cr in FY’19
• Hulst BV acquires additional 98,100 shares in NIIT Technologies

Other Key UPDATE

• Hindujas may invest₹1,500 cr in Jet
• Stable govt to boost economic growth, foreign fund flow: India Inc
• After OFS, promoter stake in Adani Green reduces to 80%
• China says door open to trade talks, but slams tech controls
• Spectrum auction, 5G trials top Telecom Ministry agenda for new government

• Stock market wealth grew by ₹75 lakh cr since Modi-led NDA won polls in 2014
• Liberalization of debt financing norms: The need to evaluate investment models
• DHFL Pramerica MF merges schemes with risk debt, launches side pocket in 2 FMPs
• BJP’s victory to improve biz sentiment, boost pvt investment: Fitch

Key Due Dates:

• 31 August: INCOME TAX RETURN EXTENDED- Filing income tax for individual and non-corporates [who are not subject to tax audit].
• On the 31 August: GSTR-9 RETURN FILLING DUE DATE – Annual Return to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation center.
• 31 August: GSTR-9A RETURN FILLING DUE DATE – Taxable Persons paying tax under Section 10 of CGST Act, the composition scheme, are required to submit their annual returns in Form GSTR 9A.
• On the 31 August: GSTR-9B RETURN FILLING DUE DATE- Annual Return to be filed by e-commerce operators who have filed GSTR 8 during the financial year.
• 31 August: GSTR-9C RETURN FILLING DUE DATE- Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C.