Corporate and Professional Updates on 8th August 2019

Tax Updates:

• India’s version of Google tax, or the equalisation levy, may now be applicable in Jammu & Kashmir. With Parliament passing a Bill to revoke Article 370, digital commerce operators advertising on global social media, which earlier did not pay Google tax on their operations in Jammu & Kashmir, may now have to cough it up at 6 per cent. According to people across companies, firms such as Facebook, Google, Amazon and Flipkart, among others, are all trying to figure out various tax implications of the government’s move.
• Experts, however, believe nothing may change for e-commerce firms in terms of the Income Tax Act, as it existed in J&K even under the old mechanism. “The Income Tax Act, 1961, is one of the laws that was applicable to the whole of India including Jammu & Kashmir. Hence, nothing will change for e-commerce operators after the effective revocation of Article 370 under the Income Tax law,” said Atul Pandey, partner, Khaitan & Co. The equalisation levy was introduced in June 2016, but not through an amendment in the Income Tax Act despite being a form of direct tax. It came into effect through a chapter in the Finance Bill, 2016. As such, the ability of a non-resident to claim credit in its jurisdiction may be doubtful, even under the tax avoidance agreements.

Other Updates:

• SEBI enhances disclosure norms on encumbered shares
• World economy stares at recession amid trade war fears
• Auto industry seeks stimulus package from government
• Tata Steel Q1 profit plunges 65% to Rs 683 crore
• Maruti cuts production by 25 per cent in July
• RBI moves unlikely to ease pain for NBFCs
• Reliance Industries set to bring Tiffany stores to India
• RBI cuts repo rate by 35 bps to 5.40%, reduces FY20 growth forecast to 6.9%
• NBFCs to receive more liquidity support as RBI raises exposure limit
• SEBI directs commodity exchanges to constitute product advisory panel
• Cipla increases stake in consumer health biz to 100%, looks for tie-ups
• Profit margins of sugar mills likely to rise by 5-6% in one year
• Aurobindo Q1 profit up 39.5% at Rs 636 crore on strong revenue growth
• Adani Gas standalone net up 44%
• Siemens net up 21% at Rs 250 cr in June quarter
• HPCL net tumbles on sharp fall in gross refining margin
• Ramco Cements’ Q1 net zooms to Rs 192 crore
• Auto industry to FM: Bring down GST, raise depreciation rate
• Balaji Infra submits offer to settle dues of Dighi Port lenders
• US slaps duties on $4.4 billion of China cabinet imports
• RBI’s ‘unconventional’ rate cut to support growth, say experts
• World economy edges closer to recession as trade woes spread
• RBI cuts risk weight on consumer credit to 100%
• Sterlite Power sees $35 billion energy storage opportunity
• Essar case: New amendments in IBC come under SC scanner
• Real estate industry expects banks to pass on rate cut benefits
• HCL Tech Q1 net profit falls 8.2% to Rs 2,230 crore
• China wants to double down on gold reserves as trade war runs hot
• RBI lowers GDP growth forecast to 6.9% for FY20 on demand, investment slowdown
• SAT upholds Rs 2 crore fine on NDTV for disclosure lapses
• Sensex slumps 286 points as RBI cuts growth forecast; rate-sensitive stocks tank
• Rupee skids for 5th day; drops 8 paise to 70.89 vs USD
• SBI lowers lending rates by 15 bps from August 10
• RBI to allow round-the-clock fund transfers under NEFT from December

Key Due Dates:

• STATUTORY COMPLIANCE CALENDAR FOR AUGUST 2019: 07 Augus: TDS/TCS LIABILITY DEPOSIT – Due date of depositing TDS/TCS liabilities for previous month.
• 7 August: EQUALIZATION LEVY DEPOSIT- Equalization Levy is a direct tax, which is withheld at the time of payment by the service recipient where the annual payment made to one service provider (Non  Residents only) exceeds Rs. 1,00,000 in one financial year for the specified and notified services.
• 10 August: GSTR-7 RETURN FILLING DUE DATE – Due Date for filing GSTR-7 by person liable to deduct TDS under GST for previous   quarter.
• 10 August: GSTR-8 RETURN FILLING DUE DATE – GSTR-8 is a return to be filed by e-commerce operators who are required to deduct TCS (Tax collected at source) under GST.
• 11 August: GSTR-1 RETURN FILLING DUE DATE – GST Filing of returns by registered person with aggregate turnover more than 1.50 crores.
• 13 August:  GSTR-6 RETURN FILLING DUE DATE- Due Date for filing return by Input Service Distributors for previous month.
• 15 August:  PROVIDEND FUND / ESI DUE DATES- Due date for payment of Provident fund and ESI contribution for the previous month.
• 20 August: GSTR-5 RETURN FILLING DUE DATE- Due date of GSTR-5 (for Non-resident Taxable person) for the Previous month.
• 20 August: GSTR-5A RETURN FILLING DUE DATE- Return by person providing online information and database access or retrieval services by a person located outside India made to Non-Taxable persons in India for the previous month.
• 20 August: GSTR-3B RETURN FILLING DUE DATE – Due date for filling GSTR – 3B return for Previous month.
• 31 August: INCOME TAX RETURN EXTENDED- Filing income tax for individual and non-corporates [who are not subject to tax audit].
• 31 August: GSTR-9 RETURN FILLING DUE DATE – Annual Return to be filed by Regular Taxpayers filing GSTR 1, GSTR 2, and GSTR 3. It needs to be filed electronically on the GST portal directly or through a facilitation center.
• 31 August: GSTR-9A RETURN FILLING DUE DATE – Taxable Persons paying tax under Section 10 of CGST Act, the composition scheme, are required to submit their annual returns in Form GSTR 9A.
• 31 August: GSTR-9B RETURN FILLING DUE DATE- Annual Return to be filed by e-commerce operators who have filed GSTR 8 during the financial year.
• 31 August: GSTR-9C RETURN FILLING DUE DATE- Taxpayers whose annual turnover exceeds INR 2 crores in a Financial Year are required to get their accounts audited by a practicing Chartered Accountant or Cost Accountant before filing returns in Form GSTR 9C.

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