Corporate and Professional Updates on 8th March 2019

Indirect Tax Updates:

• In a major relief to manufacturers, distributors, marketers and direct sellers of consumer products, the government on Thursday clarified the extent of tax liability and the eligibility of input tax credit on promotional offers such as free samples and “buy one, get one free”. Industry players were apprehensive about incre­ased litigation from tax audit authorities if they marketed their products as free, beca­use of ambiguity on such offers. Now, the notification by the Central Board of Indirect Taxes and Customs makes it clear that tax would be applicable and input tax credit would be available for the entire package sold, including the free items.
• Experts said the clarification will bring ease of marketing and save litigation troubles for the industry, but most importantly for the FMCG and pharma sectors where such offers are common. In the case of free samples, such as the ones medical representatives of pharma companies provide to doctors, they would not be considered as supply, and would not attract tax. For offers such as a discount of 10 per cent for a purchase of more than Rs 1,000 and of 20 per cent for a purchase of more than Rs 2,000, the discounted amount would be excluded to determine the value of supply. Such discounts are generally passed on by the supplier through credit notes. But this is applicable only when the discount is made clear at the time of supply. When it is provided after the sale, it is termed as secondary discount the discounted value should not be excluded to calculate the value of supply.
• “GST would be paid on the price recovered from the customer without reversing the input credit. Input credit will only be reversed in case of ‘free samples’ and ‘gifts’ which is specifically mentioned in the law,” said Pratik Jain, indirect tax partner at PwC India.
• To give composition scheme for supplier of services with a tax rate of 6% having annual turnover in preceding year upto Rs 50 lakhs. A notification should come into force on the 1st day of April, 2019.

Other Updates:

• Power Min rules out mega consolidation of power PSUs.
• RIL leased 4,000 acre land from Navi Mumbai SEZ for economic hub.
• 2% interest subsidy for crop loans.
• Eight sectors to add over 10 crore jobs by 2025.
• Jaguar Land Rover global sales decline 4.1 pc in Feb.
• Wipro shedding low-margin and non-core units to match its peers.
• Lupin gets USFDA’s nod to market its drug for cholesterol lowering.
• Cabinet okays 5-year plan for ‘phased manufacturing’ of EV batteries.
• Reliance Capital to cut its outstanding debt by Rs 12,000 cr in four months.
• Cabinet clears Rs 26,000 cr investments for 2 thermal, 1 hydro power plants.
• Contracts signed for 23 blocks under Discovered Fields – II.
• India cotton exports to fall 27 per cent.
• Cabinet clears Rs 3,355 crore interest subsidy for sugar sector.
• Marksans Pharma gets 8 observations from USFDA for its Goa facility.
• India is next growth engine of world: Suresh Prabhu.
• JSL gets Govt nod for private industrial estate.
• FinMin notifies 1 April as date for availing increased GST exemption limit.
• L&T Finance closes NCS issue on second day, raises 2,228 crore.
• China buys Indian cotton as prices at home jump.
• Government tells Jet Airways not to cause hardship to travelers.
• India’s goods export to hit $330 bn in 2018-19: Suresh Prabhu.
• Swift blames short-comings in automated payment processes at banks.
• ONGC wins back Chinnewala Tibba gas field; contracts signed for 23 oil & gas fields under DSF-II.
• Cabinet approves NHPC’s acquisition of Lanco’s Teesta hydro-electric project.
• Jan Dhan Accounts: Total deposits set to cross Rs 1 lakh cr.
• Disinvestment on fast track: PSU stake sale pricing, timing to be decided quickly with new mechanism.
• NPCI issues 64 million RuPay cards, aims to grow international acceptance.
• NGT imposes Rs 500 crore fine on Volkswagen for using emission cheating devices.
• India wants to keep Iran oil purchases at 300,000 bpd in extended waiver.

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.