Corporate and Professional Updates on 6th June 2019

Direct Tax Updates:

• The cuts are being sought by both the direct and indirect tax departments. Direct tax officials are going to ask for a cut in their collection target by Rs 60,000-70,000 crore or 4.3-5.1 per cent of the figure in the interim Budget for 2019-20, for overall yearly growth of 15 per cent. If approved, the direct tax collection target would be revised at close to Rs 13 trillion, from Rs 13.8 trillion in the interim Budget. As for indirect taxes, the central goods and services tax (CGST) growth target might be cut by Rs 70,000-80,000 crore in the full Budget or 11.5-13 per cent of the interim Budget if one assumes a realistic growth of 17-20 per cent against the previous year’s actual collection. The growth will be 35 per cent if the target is not changed.
• The CGST target collection for 2018-19 was also lowered by Rs 1 trillion in the interim Budget presentation this year (when that financial year was still not over). However, it still fell short by over Rs 40,000 crore. The gross actual total (direct plus indirect) tax collection in 2018-19 fell short by Rs 1.7 trillion or 7.5 per cent of the Revised Estimates for the year, given in the interim Budget. That, coupled with the slip in economic growth, makes the target for 2019-20 given in the interim Budget highly unrealistic, contend officials.

RBI Updates:

• The Reserve Bank of India is unlikely to announce special sectoral exceptions in its new circular on stressed assets, contrary to demands of power, sugar, shipping and textile industries. The banking regulator may also seek resolution plans for stressed assets to be approved by 90% lenders in a consortium, as against 100% in the previous notification that Supreme Court had quashed. Industries have sought base at 66%, in line with provisions of the Insolvency and Bankruptcy Code.
• RBI is also expected to raise the timeline for a project to be categorised as stressed from one-day default in the previous circular to 30 days of default. The new circular will probably be issued in the next 15-20 days as the regulator has started informal consultations with the finance ministry. The circular is likely to provide certain relaxations on timelines vis-à-vis the February 12, 2018 notification,

Other Updates:

• Crisil slashes DHFL CP rating to ‘default’
• RBI may ease up on timelines for stressed assets
• No iron ore scarcity in country post 2020: PMAI
• Prasad to expedite telecom connectivity programs
• FDI in services sector up 37 pc to $9.15 bn in 2018-19
• IL&FS fire could singe many audit cos in India
• Services sector activity growth slips to 12-month low
• Tech Mahindra to reduce greenhouse gas emissions
• US-China trade war, fragile prices hurt metal sector performance
• Gadkari promises Rs 15 trillion highway spending, revival of IL&FS projects
• Fitch downgrades ICICI Bank rating from BBB- to BB+ amid banking distress
• DHFL-exposed MF schemes suffer 30-50% drop in NAVs, Icra data shows
• ACC, Ambuja steadily losing market share on reluctance to diversify
• Heavy Industry Dept invites EoI for 5,000 electric buses
• Govt to consider fixing nutrient-based subsidy rate for urea
• Govt may announce infusion of ₹4,000 cr in PSU non-life firms in Budget
• NTPC may set up solar power project without signing a power purchase pact
• JSW Steel to increase capacity of Vijayanagar plant after 2020
• Coal India lines up ₹ 10,000 cr capex to boost output
• Government sets the ball rolling to create more jobs and attract investments
• World trade seen having worst year since 2009 as spat worsens
• Resolving trade tensions ‘immediate priority’ for G20, says IMF’s Lagarde
• Liquid funds may have to invest a fixed portion of assets in govt securities
• Wipro to acquire US-based ITI for around₹312 crore
• Govt underpaid food subsidy bill by ₹69,394 crore in FY19
• Dighi Port chairman Vijay Kalantri under the scanner, Bank of Baroda declares him as ‘wilful defaulter’
• International Finance Corporation bets on insurance market, backs this startup
• IMF slightly lowers China’s 2019 GDP growth forecast to 6.2%
• US decision to withdraw GSP benefits violates global trade rules: Experts
• Rs 11.79 lakh cr Indian tobacco sector employs 4.5 cr people: Study
• Nirmala Sitharaman to attend G-20 Finance Ministers’ meeting in Japan
• Manipal Group to have 51 per cent stake in Cigna TTK
• IRDAI hikes car premium by 12 per centCrisil slashes DHFL CP rating to ‘default’
• RBI may ease up on timelines for stressed assets
• No iron ore scarcity in country post 2020: PMAI
• Prasad to expedite telecom connectivity programs
• FDI in services sector up 37 pc to $9.15 bn in 2018-19
• IL&FS fire could singe many audit cos in India
• Services sector activity growth slips to 12-month low
• Tech Mahindra to reduce greenhouse gas emissions
• US-China trade war, fragile prices hurt metal sector performance
• Gadkari promises Rs 15 trillion highway spending, revival of IL&FS projects
• Fitch downgrades ICICI Bank rating from BBB- to BB+ amid banking distress
• DHFL-exposed MF schemes suffer 30-50% drop in NAVs, Icra data shows
• ACC, Ambuja steadily losing market share on reluctance to diversify
• Heavy Industry Dept invites EoI for 5,000 electric buses
• Govt to consider fixing nutrient-based subsidy rate for urea
• Govt may announce infusion of ₹4,000 cr in PSU non-life firms in Budget
• NTPC may set up solar power project without signing a power purchase pact
• JSW Steel to increase capacity of Vijayanagar plant after 2020
• Coal India lines up ₹ 10,000 cr capex to boost output
• Government sets the ball rolling to create more jobs and attract investments
• World trade seen having worst year since 2009 as spat worsens
• Resolving trade tensions ‘immediate priority’ for G20, says IMF’s Lagarde
• Liquid funds may have to invest a fixed portion of assets in govt securities
• Wipro to acquire US-based ITI for around₹312 crore
• Govt underpaid food subsidy bill by ₹69,394 crore in FY19
• Dighi Port chairman Vijay Kalantri under the scanner, Bank of Baroda declares him as ‘wilful defaulter’
• International Finance Corporation bets on insurance market, backs this startup
• IMF slightly lowers China’s 2019 GDP growth forecast to 6.2%
• US decision to withdraw GSP benefits violates global trade rules: Experts
• Rs 11.79 lakh cr Indian tobacco sector employs 4.5 cr people: Study
• Nirmala Sitharaman to attend G-20 Finance Ministers’ meeting in Japan
• Manipal Group to have 51 per cent stake in Cigna TTK
• IRDAI hikes car premium by 12 per cent

Key Due Dates:

• The Due Date of GSTR-1  For the Month Of May is 10th June 2019.
• 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.