Corporate and Professional updates on 4th February 2019
Page Contents
Indirect Tax Updates:
FAQ’s on GST:
QUES. Is the condition to make payment for the value of supply plus the GST thereon required to be complied with by the recipient to claim the input tax credit where supplies for services are made between distinct persons?
ANS. No, this condition is not required to be complied with by the recipient. As per the proviso to sub rule (1) of Rule 37 of the CGST Rules, 2017 the value of supplies made without consideration as specified in paragraph 2 of Schedule I of the CGST Act, 2017 shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of Section 16 of the CGST Act, 2017.
QUES. A customer may avail numerous services from the Bank / insurer in a given taxable period. Is it mandatory for Banks to issue a tax invoice for each transaction or can the Bank issue a consolidated invoice for the service rendered during the tax period?
ANS. As per the provisions contained in the first proviso to Rule 47 of the CGST Rules, 2017 an insurer, a banking company or a financial institution, including a NBFC may issue invoices within 45 days from the date of supply of service. Further, sub-rule (2) of rule 54 of CGST Rules, 2017 provides that such entities may issue any other document in lieu of the tax invoice. Accordingly, such entities may issue a consolidated statement/ invoice/ advice to the customer at the end of the month, with the details of all the charges levied during such month and GST payable.
SEBI Updates:
- The SEBI (security exchange Board of India) is directed by the finance ministry to submit proposed regulations to an independent committee for vetting before they are passed by the regulator’s board. It is not clear if the new committee will comprise external members or independent directors on the SEBI board. In either case, the finance ministry’s department of economic affairs will name the members of this committee. The DEA earlier this month directed SEBI that all proposed regulations would need to be placed before an independent committee for vetting before they are approved by the regulator.
- The markets regulator has independently drafted regulations for approval by its board. The latest move revives the autonomy-versus-accountability debate at India’s financial market regulators, sparked by the recent turmoil that ended in the resignation of Reserve Bank of India governor Urjit Patel.
- The issue of regulatory autonomy bubbled to the surface in October when RBI deputy governor Viral Acharya spoke about the importance of central bank independence. In the ensuing tense standoff with the finance ministry, the government contemplated the use of Section 7 of RBI Act that empowers it to give directions to the central bank, following which Patel resigned.
Other Updates:
- India’s ranking on Corruption Perceptions Index (CPI) has gone up by three positions to 78 in 2018.
- The Government of India has reduced the customs duty on import of parts and components of electric vehicles to 10 percent to promote domestic assembling of such vehicles.
- The Government of Kerala is aiming to double the inflow of foreign tourists to more than two million by the end of 2020, according to Mr B S Biju, Tourist Information Officer, and Kerala Tourism.
- India’s reinsurance market is expected to witness increased competition driven by relaxation of norms for foreign re-insurers by the Insurance Regulatory and Development Authority of India.
- Lower logistics cost to help boost Exports by 5-8%.
- Escorts chalks out 400-cr CapEx for expansion.
- GDP Growth rate for 2017-18 revised upwards to 7.2%.
- China appeals to US to accept its technology progress.
- HERO MotoCorp quarterly Profit slips on higher expenses.
Key Due Dates:
- Due Date for Payment of TDS & TCS Deducted/Collected in the month of January is 7th February 2019.
- Due Date for TDS Return for the month of January is 10th January 2019.
Quote of the day:
“You have to perform at a consistently higher level than others. That’s the mark of a true professional. Professionalism has nothing to do with getting paid for your services.”