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Corporate and Professional Updates on Sept 2019

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Direct Tax Updates:

ITAT dismisses Revenue’s appeal, upholds CIT(A)’s order directing AO/TPO to re-compute TP-adjustment only with regard to international transactions for AY 2008-09; Relies on co-ordinate bench ruling in assessee’s own case for AYs 2004-05 and 2006-07 wherein assessee’s contention that TP-adjustment should be restricted only to international transactions was accepted.
Also notes that for AY 2006-07, Revenue’s appeal against ITAT-order was dismissed by Bombay HC; Following the same, ITAT opines that “we find no infirmity in the order of CIT who directed that the adjustment to the transfer price should be restricted to the value of international transaction i.e. transactions entered into by the assessee with its AEs and not in relation to the transactions entered into by the assessee with third parties” : Mumbai ITAT. [TS-309-ITAT-2018(Mum)-TP]
The ITAT rules that no further income can be attributable to assessee’s PE in India as transactions between assessee & AE were found to be at ALP for AY 2005-06; Follows co-ordinate bench ruling in assessee’s own case for AY 2007-08 wherein assessee’s contention that income is not chargeable in India as assessee had paid arm’s length remuneration/ commission to its agent in India was accepted following SC ruling in E-funds I.T. Solutions Inc.
Thus, ITAT opines that “since transactions between the assessee and its AE have been found at arm’s length prices no further income chargeable to tax in India can be said to be attributable for the PE of the assessee” : Mumbai ITAT. [TS-311-ITAT-2018(Mum)-TP]
Central Board of Direct Taxes invites suggestions on draft notification pertaining to new Rule 11UAB of IT Rules, 1962.

A Central Board of Direct Taxes has achieved another milestone of having signed its 200th UAPA.

In CBDT notified creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues.
An order issued by the CBDT said that the ‘startup cell’ will be headed by the member (Income Tax and Computerisation) of the board.

Income Tax Department will automatically issue PAN to a taxpayer using Aadhaar number for filing returns as part of a new arrangement to link the two databases.
According to a notification issued by the CBDT on August 30, a person who furnishes Aadhaar, as they do not have PAN, “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any more documents. The rule has come into effect from September 1, it said.
The notification said the tax department will “obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)” for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.
CBDT chairman P C Mody had told PTI in an interview in July that the department would “suo motu” allot a fresh PAN to a person who files I-T Returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.
In cases where Aadhaar is being quoted and PAN is not there, we could possibly think on the terms of allotting a PAN to the person (who is filing income tax return).”
law provides that the assessing officer can suo motu allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked,” the CBDT chairman had said.
Mody was asked if the Income Tax Department-issued PAN will be dead after Finance Minister Nirmala Sitharaman in her Budget speech on July 5 announced that PAN and Aadhaar are being made interchangeable as the government will allow those who do not have PAN to file I-T returns by simply quoting their Aadhaar number and use it wherever they are required to quote PAN.
Linking of the two databases is now compulsory and backed by law, the CBDT chief had said. While Aadhaar is issued by UIDAI to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to a person, firm or entity.
Aadhaar holds all vital information of an individual such as name, date of birth, gender, photo and address, and also biometrics. The same set of information is required to get a new PAN.
As per data, over 120 crore Aadhaar numbers have been issued in the country and about 41 crore PAN numbers have been generated. Out of these, more than 22 crore PANs are linked with Aadhaar.
Section 139 AA (2) of the I-T Act stipulates that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate their Aadhaar number to tax authorities.
After the Supreme Court upheld the section 139AA, the government in March this year declared that the deadline for linking PAN-Aadhaar was available till September 30.
apex court, in September last year, had declared the Centre’s flagship Aadhaar scheme was constitutionally valid and held that the biometric ID would remain mandatory for filing of I-T returns and allotment of PAN.
latest notification said the tax department will be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof”.
The DGFT has issued a trade notice 33/2023-24 dated Nov 10, 2023 regarding Pilot Launch of Upgraded Electronic Bank Realization Certificate (eBRC) system for self-certification by Exporters.

Indirect Tax Updates:

GST Notification No. 38/2019-Central Tax dated 31.08.2019 issued waiving requirement to furnish declaration in FORM ITC-04 for the period July, 2017-March 2018 and FY 2018-19.
A GST Notification No. 40/2019- Central Tax dated 31.08.2019 issued to extend the last date for furnishing GSTR-7 for the month of July, 2019 to 20.09.2019 in J&K and specified 58 flood affected districts of 7 States.
In GST Notification No. 41/2019- Central Tax dated 31.08.2019 issued to waive the late fees for the month of July, 2019 for FORM GSTR-1 and GSTR-6 to be filed by taxpayers in J&K and 58 flood affected districts across 7 States provided the said returns are furnished by 20.09.2019.

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MCA updates

Govt proposing to mine all data points, not just limited to direct and indirect taxes, but extending to transaction information collated from banks, details disclosed to the MCA and data collected from e-way bills.
The Government fixed minimum overseas capital requirement for certain class of unregistered and unregulated entities offering financial services under the foreign direct investment regime

SEBI updates

SEBI with an intent to enable the industry and other users to have access to all the applicable circulars / directions at one place, Master Circular for Credit Rating Agencies (CRAs) has been prepared.

RBI updates

RBI issued guidance for Relaxation in External Commercial Borrowings Vide notification RBI/2017-18/169 issuing A. P. (DIR Series) Circular No. 25 (hereinafter referred to as Circular) dated 27 April 2018

Other Updates:

FinMin starts groundwork for fresh bank consolidation
India’s economy big worry for Modi: FICCI
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
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
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

Quater 4

India Inc Q4 revenue growth slumps to six-quarter low of 10.7%
Airtel submits Rs 644 crore bank guarantee for merger
IndiGo Q4 profit jumps 5-fold to Rs 590 crore
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

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.

Foreign borrowings double to $4.98b in July: RBI
China’s stimulus measures set to boost cooper price
Public sector banks’ heads told to reform boards
No tax demand from startups sans appellate tribunal nod
Growth of eight core industries slows down to 2.1%
Maruti cuts production for 7th straight month in August
PNB board to consider Rs 18,000 cr capital infusion
Economists predict deeper interest-rate cuts, slow economic growth
ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
NHAI to offer roads as collateral, in talks with SBI to fund projects
Apple gets to bite into Indian retail as policy hurdles are removed
ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
Manufacturing growth slows to 15-month low in August: PMI
Jet Airways fails to attract new bidders
India Inc’s overseas borrowings more than double to $4.98 billion in July
SAIL to provide land for pellet plant joint venture with KIOCL
JK Tyre promoter take control of pledged shares after repaying Rs 200 crore loan
FDI cap in digital media may hit valuations, fundraising
Fintech panel for legislative changes for issuance of FDs in demat form
Sitharaman-led panel weighs ordinance to ban e-cigarette sales
Modern Foods acquires 75% stake in Supreme Baker
‘Economic slump an opportunity for expansion, acquisitions, hiring talent’
DBS revises India’s real GDP growth to 6.2 per cent for FY20
Panel blames lack of level playing field, discriminatory regulation for high level of cash in system
Tata Steel announces closure of UK factory, nearly 400 jobs on the line
Government restores duty-free replenishment facility for jewellery exporters
Coal India output drops 10.3 per cent in August
Tea profit likely to contract 140-150 bps: Crisil
New FDI norms in single brand retail to increase exports
SBI Cards says IPO process initiated, decision on timing to hit mkt soon.

Key Due Dates:

The Due Date of TDS for the Month of August is 7^th September 2019.
Due Date of GSTR-1 for the Monthly Fillers for the Month Of August is 10th September 2019.
The Due Date of GSTR-3B for the Month of August 2019 is 20th September 2019.

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Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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