Corporate and Professional Updates on 5th March 2019

Direct Tax Updates:

• CBDT, in a bid to promote Cashless Transactions, issues an advisory on its Official Website regarding Cash Transactions over and above the prescribed limits specified under the law.
• Central Government amends the Aadhaar Act and two related laws in order to make Aadhaar based-KYC for Procuring Mobile Connection and Bank Account compulsory. The compulsory use of Aadhaar-based KYC for mobile connections and bank accounts was prohibited by the Supreme court’s judgement dated 26th September 2018.
• In the light of the increase in the number of Professional Misconduct cases against the Insolvency Professionals, the Insolvency and Bankruptcy Board of India (IBBI) issues a Charter prescribing the responsibilities of the Insolvency Professionals and the Committee of Creditors.

• Income Tax Tribunal (ITAT) Agra in case of  Fateh Chand Trust & College Committee v/s Commissioner of Income Tax vide it’s IT Appeal No. 406  dated 27th September 2018 has held that Sec 12AA cannot be denied on the ground that assessee was engaged in education with a profit motive.
• CBDT, in a bid to promote Cashless Transactions, issues an advisory on its Official Website regarding Cash Transactions over and above the prescribed limits specified under the law.

Indirect tax Updates:

• GST collections in February dropped to Rs 97,247 crore from Rs 1.02 lakh crore in the previous month. However, compliance improved and the number of sales returns or GSTR-3B filed for the month of January up to February 28, 2019 stood at 73.48 lakh.

SEBI Updates:

• SEBI tightened the valuation methodology for liquid mutual funds and did away with the open offer exemption given to those seeking to acquire assets undergoing insolvency resolution. To make sure liquid schemes reflect the underlying portfolio risks.
• SEBI approves a proposal to Lower Fees charged from Brokers, Stock Exchanges and Companies seeking to get listed in order to bring down the cost of trading in stock markets. It also approves changes in norms for Valuation of Money Market and Debt Securities by Mutual Funds.
• SEBI made several amendments to its regulations during the meeting and approved lowering of fees charged from brokers, stock exchanges and companies seeking to get listed.  And approved granting permanent registration to custodians instead of periodical renewal every three years.

Other Updates:

• India needs land, labour reform to aid Mfg.
• India Inc’s Foreign Borrowings down 45% at $2.42 Billion in January.
• Stressed accounts of Bhushan Power, Essar up for sale.
• After Mallya saga, SEBI wants Companies Act changed.
• MSCI India weight in MSCI EM index likely to fall 20 BPS by November-end.
• Gail chosen for Vedanta’s Barmer gas output buy.
• ONGC recieves single bid from US firm for Oil field production upgrade.
• RIL arm to acquire stake in Grab a Grub and C-Square for Rs 228 crore.
• IDBI Bank gets govt nod to handle import, export transactions with Iran.
• DIPAM to set up asset-monetisation cell to hasten sale of CPSE assets.
• RBI slaps Rs 11 Cr fine on 4 Banks for non-compliance in Swift operations.
• GMR Hyderabad airport divests stake in flight training academy.
• ‘Trump’s tirade against India’s Import tariffs unfair’.
• Coffee Exports up 13% in first 2-months of 2019.
• BHEL to set up Solar-based EV charger network on Delhi-Chandigarh highway.
• Adani Ports to pump ₹53,000 Cr to expand capacity of Kattupalli port.
• Jet pledges FDs worth ₹1,500 Crore with State Bank of India to stay in the air.
• OPEC likely to defer Output Policy decision until June.
• Superior execution powers ABB India, but lofty valuations set the bar high.
• Mahindra Lifespace looks to add strategic investment partners.
• Panel to review if Sun Pharma, Meril Life merit price cap relief.
• Despite shining Steel, Power and Debt to remain drag for JSPL.
• Nestle India unlikely to increase royalty payout beyond 4.5%.
• Grant Thornton identifies Rs 13,000 crore worth irregularities in report on IL&FS.
• Orchid Pharma set for fresh EOIs for resolution plan, Divis and Gland Celsus Bio show interest.
• Govt to set ball rolling for 1 GW Solar Power in NE.
• Helpless Mumbai Port Trust sits on 1,900-acre Prime land.
• DBS Bank floats local arm, aims to triple business.
• GST collection drops to Rs 97,247 Crore in February.
• SEBI board approves lowering of fees, easier norms for startups.

Key Due Dates:

• Due Date of GSTR-1 for the month of February in case of monthly Tax Return Fillers is 10th March 2019.

Professional Quotes:

“Believe passionately in what you do, and never knowingly compromise your standards and values. Act likes a true professional, aiming for true excellence, and the money will follow.”