Corporate and Professional Updates on 7th March 2019

Direct tax Updates:

• The Central Board of Direct Taxes has ordered “best judgment assessment” of individuals who failed to comply with the income tax department’s repeated alerts on bank deposits made soon after demonetisation. The income tax department had sent out SMSes, emails and also issued notices to around 300,000 individuals, who made substantial cash deposits after the November 2016 demonetisation, to furnish income-tax returns for the assessment year 2017-18. But, around 87,000 taxpayers failed to comply with those notices.
• The apex body for direct taxes has now instructed assessing officers to conclude “best judgment assessment proceedings” to deal with such noncompliance. The CBDT has authorised the AO to assess the total income of the taxpayer to the best of his judgement. This is usually done in cases where the taxpayer fails to respond to the queries of the AO. The board has laid out broad standard operating procedures for these assessments. Updated details of the taxpayer such as address, bank accounts and transaction records would be provided to the AO along with an internal guidance note for verification of cases and framing of assessments.

Indirect Tax Updates:

• NIL” GSTR-9 Return can be filed, if you have not made any outward supply Not received any inward supplies (commonly known as purchase) of goods/services; No liability of any kind and not claimed any Credit during the Financial Year; And not received any order creating demand; and not claimed any refund during the Financial Year.
• GSTR-9 can be filed online. It can also be prepared on Offline Tool and then uploaded on the Portal and filed.
• Annual return in form GSTR-9 is required to be filed by every taxpayer registered as normal taxpayer during the relevant financial year.
• All applicable statements in Forms GSTR-1 and returns in Form GSTR 3B of the financial year shall have been filed before filing GSTR-9.
• Annual return in Form GSTR-9 once filed cannot be revised.
• Computation of ITC based on GSTR-2A has been auto-populated by the System based on GSTR-1 filed by your corresponding suppliers up to 29/01/2019. Next auto-updation of GSTR-2A will be carried on 01/03/2019. If you have some missing credits in GSTR-2A, you may like to wait till next updation.
• Download the draft system computed GSTR-9, summary of Form GSTR-1 and GSTR-3B for the financial year by clicking on relevant buttons. This is only for reference for filling the return, and will facilitate in providing details in actual tables.

Major PSU bank merger plan under the government’s initiative to consolidate public sector banks for greater strength and efficiency.

 4 PSU Banks Set to Merge & Government Plan: Preparing the next big phase of bank mergers under PM Modi’s strategy to create fewer but stronger public sector banks. Following is the proposed merger situation 

which would have the impact that The total number of PSU banks could reduce from 12 to 8 by FY 2027.

Other Updates:

• India may move to WTO against US over import sops.
• DHFL didn’t create shell companies.
• CBDT notifies relaxed norms for start-ups.
• OECD cuts global growth forecast over trade, Brexit uncertainty.
• Biocon gets 6 observations from USFDA after inspection of its Bengaluru plant.
• NHPC pays Rs 527 crore dividend to govt.
• US trade deficit surges to 10-year high in 2018 at $ 621 bn.
• SC decision puts banks at risk of adding $25 bn to power sector NPAs.
• BoB, Dena, Vijaya Bank merger could open Rs 1,000 cr IT outsourcing window.
• Rs 25,000-cr infusion not enough to stabilise Bharti Airtel’s rating.
• Grab raises $1.46 bn from SoftBank Vision Fund; $4.5 bn secured so far.
• Sugar production around 248 lakh tonnes till Feb 28.
• Kerala govt moves HC against airport contract granted to Adani.
• Bombay HC asks NSL to deposit 138 cr in MMBL-royalty issue.
• Philip Morris circumvented FDI ban on cigarette manufacturing.
• India requires pragmatic compulsive licensing system.
• Govt bans import of solid plastic waste by SEZs, EOUs.
• Nomura sees GDP growth target below 7% in 2019-20.
• CBI seeks additional documents from ICICI Bank in Videocon loan default case.
• European Union says ‘no solution’ yet to break Brexit deadlock.
• Banks encash bond holdings to service rising demand for credit.
• India needs more globalization to boost wages: World Bank-ILO report.
• Donald Trump acts tough on India; US to withdraw zero duty import benefit on 1,784 items.
• February peak power demand rises 3% year-on-year.
• DoT panel divided on E&V band spectrum allocation.
• NELCO gets in-flight, maritime connectivity licence from DoT.
• Rupee rises for 2nd day; up 21 paise to 70.28 vs USD on easing crude prices.
• Sensex spurts 193 points; Nifty closes above 11,000-mark.
• OECD lowers global growth forecast over trade tensions.

Key Due Dates:

• The Due date of GSTR-1 for the monthly return fillers is 10th March 2019.
• The Due dates of GSTR-3b are 20th March 2019.
• 15th March 2019- Due date for forth and last installment/ entire amount of advance tax for Assessee having presumptive basis income,
• 20th March 2019 – GST monthly return for the month of February 2019 (GSTR-3B)
• 15th March 2019- Due date for PF and ESIC payment.
• 25th March 2019- Due date for filing monthly return of PF
• 30th March 2019- Challan cum statement for TDS u/s 194 IA for immovable property and 194 IB for rent payment for February 2019.

Quote of the Day:

The professional has learned that success, like happiness, comes as a by-product of work. The professional concentrates on the work and allows rewards to come or not come, whatever they like.