Corporate and Professional Updates on 9th August 2019

Direct Tax Updates:

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  • The income tax (I-T) department has relaxed its assessment and scrutiny norms for start-ups. In a circular it directed its officers not to raise additional tax demands for start-ups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). This will be done in cases where scrutiny is limited to Section 56 (2) (viib) of the Income Tax Act, or what is called in popular parlance angel tax. Angel tax refers to income tax payable on capital raised by unlisted firms by issuing shares where the share price is considered more than the fair market value. “No verification on such issues will be done by the AOs (assessing officers) during the proceedings and the contention of such recognised start-up companies on the issue will be summarily accepted,” the circular said. In cases where start-ups are recognised by the DPIIT but scrutiny involves wider issues, the I-T Department has asked its field formations not to pursue the issue of the angel tax during the assessment proceedings. 
  • “This clarification will help start-ups that are facing questioning and will also give a clear direction to assessing officers on what to do in such cases,” Amit Maheshwari, partner Ashok Maheshwary & Associates, said. Rakesh Nangia, managing partner at Nangia Advisors (Andersen Global), said while the recognised start-ups were relieved, the DPIIT might still have to face inquiries from tax officers and the procedure to be followed by tax officers would be crucial. After protests by start-ups, the government had raised the threshold for availing of angel tax exemption for these companies, besides widening their definition. Consideration of shares issued or proposed by start-ups has been hiked to Rs 25 crore from Rs 10 crore for getting exemption from the angel tax. Also, consideration received by eligible start-ups for shares issued or proposed to be issued to a listed company having a net worth of Rs 100 crore, or a turnover of at least Rs 250 crore, was also exempted.

RBI Updates:

  • The Reserve Bank of India (RBI) will cut interest rates again at its October meeting, making it the fifth in a row, according to economists in a Reuters poll who said the central bank’s decision to ease by 35 basis points on Wednesday was right. While a survey taken ahead of August’s meeting showed a 25 basis points rate cut was a done deal, the RBI was expected to keep rates unchanged for the rest of this year.  However, a more recent Reuters poll, conducted Aug 7-8, predicted the RBI would ease its benchmark lending rate by 25 basis points to 5.15% in October.
  • The central bank cut rates by 35 basis points to 5.40% this week but maintained its “accommodative” policy stance, signalling further easing on concerns about weak economic growth and subdued inflation. If the RBI does cut rates in October and early next year it will be the most aggressive amongst major central banks in easing policy.  The RBI lowered its economic growth forecast for the current fiscal year on Wednesday and said inflation would not breach its medium-term target of 4% in the near-term. However, the benefits of the RBI’s easing this year have not been completely transmitted to borrowers.

SEBI Updates:

  • With an aim to safeguard mutual fund investors from high-risk assets, regulator Sebi wants fund houses to shift all their investments to listed or to-be-listed equity and debt securities in a phased manner and reduce their exposure to unrated debt instruments from 25 per cent to only 5 per cent. Exposure to risky debt securities has emerged as a major risk for the capital market investors, including those coming through the mutual fund space, and the regulator has been making efforts to enhance its regulatory safety net against such risks. Taking forward certain decisions approved by Sebi’s board earlier in June, the regulator has now finalised the draft amendments to the prudential norms for mutual fund schemes for investment in debt and money market instruments. 
  • However, the official said these proposed limits may need to be reviewed periodically by Sebi after taking into account the market dynamics and participation of mutual funds in unrated debt securities from time to time. Among other decisions which have been in-principle already approved by the Sebi board and need to be incorporated in the amended regulations, the valuation of debt and money market instruments based on amortisation would be dispensed with and would shift completely to mark-to-market valuation with effect from April 1, 2020.
  • The existing regulations allow a mutual fund scheme to invest a maximum of 10 per cent of its net asset value in unrated debt instruments issued by a single issuer while the total investment in such instruments is capped at 25 per cent. However, pursuant to Sebi’s decision to allow mutual funds to invest only in listed securities, very limited number of instruments that are unrated would be eligible for investment by the mutual funds, as all listed debt instruments are mandatorily rated. After excluding debentures, government securities, interest rate swaps, interest rate futures, repo on G-Sec and T-bills, the mutual funds’ investments in unrated debt instruments are mostly in fixed deposits, bills re-discounting (BRDS), mutual fund units, repo on corporate bonds, units of REITs/InvITs (Real Estate and Infrastructure Investment Trusts), etc.
  • Excluding all these instruments, the total exposure of mutual funds in the remaining unrated debt instruments is mostly in BRDS, amounting to about Rs 2,870 crore as on March 31, 2019. Besides, this investment is limited to just four mutual fund schemes and the average value of investments as percentage of the respective scheme’s asset under management was just about 3 per cent. As a result, Sebi is of the view that the existing limit of 25 per cent for investment in unrated debt instruments would be too high as the residual investment permitted in this category might be relevant only for few instruments including BRDS.

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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 8th August 2019

Tax Updates:

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  • 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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 7th August 2019

Direct Tax Updates:

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  • CBDT has directed that, all validity filed returns up to Assessment Year 2017-18 with refund claims, can be processed with prior approval of Pr. CCIT/CCIT by 31-12-2019. This relaxation is not applicable in case where ITR is selected for scrutiny or there is demand payable or likely to arise after processing it.
  • Companies may soon have to geotag and furnish pictures of projects undertaken under their CSR programmes to the government. Companies with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required every year to spend at least 2% of their average profit for the previous three years on CSR activities.

RBI Updates:

  • RBI, the regulator for all Banks & NBFC’s has reiterated that no lender should charge pre-payment penalty from borrowers for foreclosure of floating rate term loans.
  • RBI will lower the benchmark repurchase rate by 25 basis points to 5.5 per cent, according to almost all of the 36 economists surveyed by Bloomberg. Swap markets are pricing in at least another 50 basis points of reductions before the end of 2019.

SEBI Updates:

  • SEBI has directed depositories to freeze securities of promoters and directors of listed companies that failed to ensure updating the database with the distinctive number of equity shares.

Other Updates:

  • FPI tax relief via grandfathering clause soon: Sources
  • Govt wants to freeze accounts of IL&FS auditors, others
  • China warns India of ‘reverse sanctions’ over Huawei
  • Ministry to issue norms for NBFC asset buy scheme
  • Reliance, BP form JV to set up 5,500 petrol pumps
  • Dish TV, Airtel Digital TV merger expected by month end
  • Essel said in talks to sell toll roads to NIIF
  • Revenue department to brief PMO on Rs 1.67-trillion tax shortfall
  • NSE, SGX receive Sebi, MAS approval for creating trade link at Gift City
  • Six states to drive next phase of cement capacity ramp-ups: CARE Ratings
  • Steel ministry mulls options for duty free export of higher grade iron ore
  • Railways, CIL in talks over 538-km eastern freight corridor stretch
  • Sebi plans Rs 1 cr reward, hotline access for informers of insider trading
  • Tata Steel calls off $327-million asset sale deal with China’s HBIS
  • Fortis Healthcare back in the black, posts₹67.8-cr profit in Q1
  • Declining rural demand hits FMCG sector
  • ONGC seeks shareholder nod to help OPAL raise ₹2,680 cr
  • JSW Energy Q1 net up 6.5% to₹244 cr
  • GIC to invest ₹4,400 crore in IRB Infrastructure’s 9 road projects
  • Jet’s Airways creditors approve evaluation criteria for bidders
  • Vedanta to focus on ‘purse strings’ amid aluminum expansion
  • Indiabulls Housing Finance Q1 net falls 24% to 802 crore
  • Lakshmi Vilas Bank Q1 net loss widens to₹237 cr
  • India looking at cutting west coast refinery capacity
  • Sitharaman, Gadkari consult small firms on boosting access to credit
  • US designates China a currency manipulator, escalating trade war
  • Tough times for real estate sector, need to find solution, says HDFC MD
  • Parliament passes Consumer Protection Bill 2019
  • PNB Housing raises $75 million in ECB from Sumitomo Mitsui Bank
  • Rupee logs 4th straight loss, down 8 paise at 70.81 against USD
  • Sebi mulls tighter norms for full disclosure on loan defaults with rating agencies
  • India looking at cutting west coast refinery capacity as cost escalates to USD 60 bn
  • Centre promises all help to MSMEs and related stakeholders

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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 6th August 2019

RBI Updates:

Image result for HD pics on Rbi
  • RBI is likely to cut the benchmark policy rate by another .25% point this week, with growth concerns mounting across various consumption pockets and causing a protracted slide in key Mumbai stock indices.
  • RBI would also focus on a liquidity framework that is a key driver for taking rate-cut benefits to borrowers.

SEBI Updates:

  • SEBI with intent to streamline the issuance of SCORES Authentication for SEBI registered intermediaries had directed all listed companies and SEBI registered intermediaries to obtain SCORES user id and password.

Other Updates:

  • Govt swings into action, to hold talks on super-rich tax
  • Re suffers biggest fall in 6 yrs, slumps Rs 1.13
  • Govt begins process to auction 27 coal mines
  • FM says to take steps to improve economy “quickly”
  • SBI invites bids for Videocon’s overseas oil, gas assets
  • RBI imposes penalty of Rs 8.5 crore on 11 banks
  • IIFL Finance to raise up to Rs 1,000 crore through bond issuance
  • Credit Suisse downgrades RIL to underperform, reduces target price
  • Draft guidelines for e-commerce firms talk tough on deep discounting
  • Moody’s again warns YES Bank about ratings for exposure to shadow banks
  • Rs 9,500-crore DIAL project to increase airport’s capacity goes to L&T
  • Tata Motors cuts pick-up production at Pantnagar plant by 17% to 15K units
  • Retail investors forfeit Rs 1.33 trillion since Budget; m-cap falls 10%
  • Govt to take steps to improve economy “fairly quickly”: Nirmala Sitharaman
  • Visaka Industries to supply its hybrid solar-roofing solution, ATUM, to Air India SATS
  • Torrent Power Q1 net up 22 per cent at ₹276 cr
  • Jindal Stainless Q1 profit tumbles 26%
  • Shell to install solar panels at Taloja lubricant plant
  • Suzuki posts 46 per cent drop in Q1 profit on slowing demand in India
  • DHFL’s bondholders get three-week deadline to be on board with rescue plan
  • Yuan slips beyond 7 per dollar for the first time since 2008
  • Wall Street stocks tumble on worsening US-China trade war;
  • Bankers agree to take steps to review lending rate transmission, says FinMin
  • Jalan panel to give report on RBI’s surplus reserves this month
  • Govt may impose countervailing duty on certain steel products from China, Vietnam
  • UK biggest retailer Tesco axes 4,500 supermarket jobs
  • Power ministry brings mechanism for stressed projects for servicing debt in first place
  • SAIL extends deadline for submission of EOIs for sale of 3 units
  • Bankers agree to take steps to review interest rates: FinMin
  • Sensex tanks over 418 points amid Centre’s Jammu and Kashmir move
  • Crude oil futures fall on global cues
  • Blackstone may buy out Indiabulls Real Estate’s commercial properties.

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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and professional Updates on 5th August 2019

Direct Tax Updates:

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  • Finance Minister announced that there will be a change in the rule and the rate of TDS on the maturity amount, where the premium amount is more than 10% of the sum assured (more than 20 % of sum assured (SA) for policies issued between April 1, 2003 and March 31, 2012).

Indirect Tax Updates:

  • GST collections stood at Rs 1.02 lakh crore in July, marginally up from the previous month, official data showed. The July 2019 mop-up was, however, 5.8 per cent higher than the Rs 96,483 crore collected in the same month last year.

RBI Updates:

  • RBI barred NBFCs shall not charge foreclosure charges/pre- payment penalties on any floating rate term loans sanctioned for purposes other than business to individual borrowers, with or without co-obligants,” RBI said in a notification, without specifying from when the new rules will be effective.

SEBI Updates:

  • Sebi slapped Rs 94.5 lakh penalty on 17 entities for indulging in fraudulent trade practices in illiquid stock options segment on the BSE. SEBI during investigation between April-September 2015, found that 81.38 % of all the trades executed in the stock options segment involved reversal of buy and sell positions by the clients and counter-parties in a contract on the same day.

Other Updates:

  • Eight core sectors’ output rises 0.2 per cent YoY: Govt
  • US Fed lowers interest rates for first time since 2008, signals more cuts
  • HDFC lowers lending rates by 10 basis points
  • Auto makers cut production by 11% in Q1: Report
  • Govt receipts only 14% of full year target in 1st qtr
  • Government raises subsidy for non-urea fertilisers
  • Vedanta contributes 0.40% to India GDP, says study
  • Core sector growth at 50-month low in June; 4 out of 8 sectors contract
  • Jewellery exporters may be covered under credit insurance benefit
  • Fiscal deficit touches Rs 4.32 trillion in Q1, 61.4% of budget estimate
  • RBI allows domestic banks to sell NPAs abroad as one-time settlement
  • FPIs pull out over Rs 11,000 crore in July, highest in nine months
  • In 3 months, fiscal deficit exceeds 61% of full-year target
  • Govt, exporters discuss strategy to increase exports to US, China
  • Tamilnadu Petroproducts profit rises 90% in Q1
  • Ashok Leyland’s Q1 profit plunges 45% to ₹230 cr
  • Blue Dart April-June quarter profit drops 73%
  • ICRA’s rating cut stifles Yes Bank’s ability to raise fresh capital
  • Government gives more time to direct tax code panel to finalise report
  • Cabinet approves bill to regulate chit funds industry
  • Eicher Motors Q1 net dips 22% to ₹452 crore
  • Tata Global Beverages Q1 net profit rises 10% to ₹141.68 crore
  • Cabinet approves bill to prohibit all unregulated deposit schemes
  • India’s exports need to contribute $1 trillion in economy: Piyush Goyal
  • US ‘working hard’ with India to help grow its economy: Mike Pompeo
  • Trade war: China blames US’ flip-flop as talks end without breakthrough
  • Cafe Coffee Day term loans put on watch by Icra
  • Rupee settles 6 paise higher against dollar ahead of Fed meet outcome
  • IOC net drops 47 per cent on lower refinery margins
  • Allahabad Bank okays raising Rs 2,000 cr equity capital via QIP
  • India 10-yr bond yield drops as FPIs shift from equities to debt.

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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 3rd August 2019

Direct Tax Updates:

  • Income Tax department launched ‘e-filing Lite’, a lighter version of online ITR filing facility, on Thursday to facilitate the easy and quick filing of returns by taxpayers.
  • CBDT notified that it is mandatory to quote your Aadhaar number while filing ITR unless specifically exempted. The notification further specifies that tax return cannot be filed either electronically or manually without quoting Aadhaar number. To quote your Aadhaar number in your ITR, additional spaces have been provided.

Indirect Tax Updates:

  • GST collection was above Rs 1 trillion in July, mainly on account of higher mop-up under the integrated GST. GST collection at Rs 1.02 trillion in the month was slightly more than 2 per cent higher than the Rs 99,939 crore in June and 5.8 per cent higher than the Rs 96,483 crore in July last year.

MCA Updates:

  • MCA Charge filing fees new structure wef 1 August 2019: 1. Within 30 days – Normal Fees, 2. Delay Up to 30 days – 6 times normal fees, 3. Delay More than 30 days and up to 90 days – 6 times normal fees plus ad valorem fees 0.05% of amt secured by charge subject to maximum of Rs.5 lacs.Note: 120 days and above charge will not be taken on record by MCA.
  • MCA has notified the Companies (Amendment) Act, 2019 and the provisions of which, shall be deemed to have come into force on the 2nd day of November, 2018, except sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 which shall come into force on such date as the Central Government may notify.

Other Updates:

  • PV volumes to come under further pressure in August
  • Honda Cars sales dip 49% to 10,250 units in July
  • Airtel reports Q1 loss of Rs 2,866 crore
  • Economic woes not as bad as 1991: Ex-RBI dy guv
  • Tata Motors cuts Tigor EV price by up to Rs 80,000
  • L&T gets shareholders’ nod to raise Rs 4,000 crore via securities
  • Auto sales in July fall for 9th consecutive month due to poor demand
  • Govt to issue overseas sovereign bonds in tranches: FinMin official
  • CRISIL revises down India’s GDP growth estimate to 6.9% for FY20
  • India, world’s No. 2 coal buyer, plans to cut imports by a third in 5 years
  • MFs’ Essel group exposure likely to fall by 30-50% after Zee stake sale
  • Jeff Bezos sells Amazon shares worth $1.8-bn , reduces stake to $110 bn
  • Life insurance industry likely to see 14-15% growth: CARE
  • Banks free to have separate caps for lending to power, renewables sectors: RBI to Centre
  • DoT may get less than 50% of₹92,000 cr AGR dues from telcos
  • Voltas eyes ₹50-cr business from Kerala this Onam
  • Suzuki Motorcycle India sales up 18% in July
  • Ashok Leyland July sales down 28% at 10,927 units
  • US to slap 10% tariff on $300 billion more in Chinese goods: Donald Trump
  • RBI allows Bank of China to offer regular banking services in India
  • Normal monsoon likely in August, September: IMD
  • Marico Q1 net profit up 21.6% to ₹315 crore
  • SEBI sends letter to MFs detailing 23 lapses in FY 17
  • Shapoorji Pallonji’s solar EPC business announces ₹3,125 crore public offer
  • PNB plans aggressive recoveries to contain gross NPA below 12%
  • NCLAT sets aside order directing return of land to Jaypee Infratech
  • Amazon.in inks lease pact with GMR Hyderabad Airport City
  • Tata Power consolidated Q1 net falls 87 pct year-on-year
  • TVS Motor July sales down 13 per cent at 2,79,465 units
  • Sensex tanks over 450 points, Nifty finishes below 11,000-mark
  • Finance Minister Sitharaman to meet CEOs of PSU banks on Friday
  • Coal India to spend Rs 700 cr to procure 40 rakes

Key Due Dates:

  • 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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 2nd August 2019

Indirect Tax Updates:

Related image
  • The Maharashtra government would soon issue an order whereby GST refunds would be blocked if an industrial unit fails to submit proof that 80 per cent of its employees are ‘sons of the soil’ as required by rules, it said Thursday. Industries Minister Subhash Desai said a new Government Resolution (GR) would be brought in for this purpose. It would also apply to recruitment of contract employees, he said. If needed, Maharashtra may contemplate bringing a law, on the lines of Andhra Pradesh, to ensure that local people get certain proportion of jobs in industries, he said. Maharashtra was the first state to frame a rule in 1968 that all industrial establishments should hire at least 80 per cent local people, Desai, a Shiv Sena leader, said.  “The first GR was issued on November 18, 1968, and since then the GR has been revised (re-issued) five times till 2008.
  • The government gives refund on Goods and Services Tax to industrial establishments based on their capital investment. In 2018-19, the total refund amounted to Rs 3,035 crore, Desai said. “If the refund is blocked, it will be a huge loss for industrial units and they will not dare violate the rule to hire 80 per cent locals,” he said. The refund would be released only after the industrial unit submits proof that it has complied with the rule. As per government records, overall 90 per cent of employees in industrial sector are locals, while 84 per cent of those occupying supervisor/managerial grade posts are Maharashtrians.

SEBI Updates:

  • Capital markets regulator Sebi slapped Rs 94.5 lakh penalty on 17 entities for indulging in fraudulent trade practices in illiquid stock options segment on the BSE. The regulator, during the course of investigation between April 2015 and September 2015, found that 81.38 per cent of all the trades executed in the stock options segment involved reversal of buy and sell positions by the clients and counter-parties in a contract on the same day.
  •  These entities were among those “whose reversal trades involved squaring off transactions with significant difference in sell value and buy value of the transactions,” Sebi said in similarly worded separate orders on Friday. It further said trades of the entities are non-genuine as they are not executed in normal course of trading, lack basic trading rationale, lead to misleading appearance of trading in terms of generation of artificial volumes, and are hence deceptive & manipulative. By indulging in such trades, the entities have violated provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms, Sebi said. Accordingly, a fine of Rs 9 lakh on Makers Casting, and Rs 8 lakh on Ashok Investors Trust has been levied by Sebi.
  • The orders are in accordance with the Securities and Exchange Board of India’s announcement in April 2018 on taking action in a phased manner against 14,720 entities for fraudulent trade in the illiquid stock options segment. In a separate order, the regulator imposed a penalty of Rs 18 lakh on promoters of Man Industries for not making requisite disclosure to the company and exchanges after change in their shareholding in the firm. “Substantial Acquisition of Shares and Takeovers (SAST) Regulations requires every promoter of a target company to disclose details of any invocation or release of encumbrance of shares. Such disclosure of creation, release and invocation of disclosures required under…has to be made within 7 working days from creation, invocation and release of such encumbrance.

Other Updates:

  • Eight core sectors’ output rises 0.2 per cent YoY: Govt
  • US Fed lowers interest rates for first time since 2008, signals more cuts
  • HDFC lowers lending rates by 10 basis points
  • Auto makers cut production by 11% in Q1: Report
  • Govt receipts only 14% of full year target in 1st qtr
  • Government raises subsidy for non-urea fertilisers
  • Vedanta contributes 0.40% to India GDP, says study
  • Core sector growth at 50-month low in June; 4 out of 8 sectors contract
  • Jewellery exporters may be covered under credit insurance benefit
  • Fiscal deficit touches Rs 4.32 trillion in Q1, 61.4% of budget estimate
  • RBI allows domestic banks to sell NPAs abroad as one-time settlement
  • FPIs pull out over Rs 11,000 crore in July, highest in nine months
  • In 3 months, fiscal deficit exceeds 61% of full-year target
  • Govt, exporters discuss strategy to increase exports to US, China
  • Tamilnadu Petroproducts profit rises 90% in Q1
  • Ashok Leyland’s Q1 profit plunges 45% to ₹230 cr
  • Blue Dart April-June quarter profit drops 73%
  • ICRA’s rating cut stifles Yes Bank’s ability to raise fresh capital
  • Government gives more time to direct tax code panel to finalise report
  • Cabinet approves bill to regulate chit funds industry
  • Eicher Motors Q1 net dips 22% to ₹452 crore
  • Tata Global Beverages Q1 net profit rises 10% to ₹141.68 crore
  • Cabinet approves bill to prohibit all unregulated deposit schemes
  • India’s exports need to contribute $1 trillion in economy: Piyush Goyal
  • US ‘working hard’ with India to help grow its economy: Mike Pompeo
  • Trade war: China blames US’ flip-flop as talks end without breakthrough
  • Cafe Coffee Day term loans put on watch by Icra
  • Rupee settles 6 paise higher against dollar ahead of Fed meet outcome
  • IOC net drops 47 per cent on lower refinery margins
  • Allahabad Bank okays raising Rs 2,000 cr equity capital via QIP
  • India 10-yr bond yield drops as FPIs shift from equities to debt.

Key Due Dates:

  • STATUTORY COMPLIANCE CALENDAR FOR AUGUST 2019: 07 August: 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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 1st August 2019

Indirect Tax Updates:

Image result for indirect Tax hd Pics
  • Collection from the goods and services tax (GST) was above Rs 1 trillion in July, mainly on account of higher mop-up under the integrated GST. However, the central and state portions remained subdued, posing a challenge for the revenue target for the financial year. GST collection at Rs 1.02 trillion in the month was slightly more than 2 per cent higher than the Rs 99,939 crore in June and 5.8 per cent higher than the Rs 96,483 crore in July last year. However, Central GST collection was just Rs 17,912 crore in July, down from Rs 18,366 crore in June. State GST collection too was lower at Rs 25,008 crore in the month against Rs 25,343 crore in June.
  • It was the IGST that rose to Rs 50,612 crore against Rs 47,772 crore in this period. Subdued revenue collection poses challenges for Finance Minister Nirmala Sitharaman with a growth target of 16 per cent for the central GST in 2019-20, reinforcing the need for emphasis on data intelligence and policies to plug leakages.
  • The CGST collection target was revised downwards to Rs 5.26 trillion for the fiscal year from the Rs 6.1 trillion estimated in the Interim Budget, following a 9 per cent shortfall in collection in the previous year. “GST collection for the month, despite being more than Rs 1 trillion, would be a matter of concern because this is lower than the Budget estimate. Collection needs to be correlated to the economic situation,” said M S Mani, senior director, Deloitte India. Abhishek Jain, tax partner, EY, said: “The next uptick in collection is expected with the launch of the new return formats and related restricted credit availability only on the matching of it with corresponding disclosures by suppliers, and verification of annual returns/audit reports submitted for FY17-18, etc.
  • ” The compensation cess stood at Rs 8,551 crore, a shade higher than the Rs 8,457 crore in June. A total of 7.579 million GSTR-3B, or summary returns, were filed in July, higher than the 7.425 million in June. A sum of Rs 17,789 crore has been released to the states as GST compensation for April-May 2019. The lower than expected collection weakens the case for further reduction in GST rates, especially for items taxed at 28 per cent. In the GST Council meeting last week only a single segment — electric vehicles (EVs), EV chargers, and hiring EV buses — was considered for rate reduction. The rate for EVs was cut from 12 per cent to 5 per cent, and that for chargers from 18 per cent to 5 per cent. Hiring buses got an exemption. Tax evasion may get tougher with the GST Network (GSTN) and the income-tax department signing a memorandum of understanding to facilitate an exchange of data. 
  • The GST Council in its December 2018 meeting cut the GST rates for 23 goods and services, including movie tickets, TVs and monitor screens, and power banks, and exempted frozen and preserved vegetables from the levy. The rates for consumer durables such as small-screen TVs, refrigerators, and washing machines were cut to 18 per cent from 28 per cent in July last year. In November 2017, the rates for 178 items, including detergents, shampoos and beauty products, were reduced from 28 per cent to 18 per cent. The government is working on measures to stop tax evasion — including data analysis, new return formats, the e-way bill, the proposed e-invoicing system, and mandatory e-ticketing for movie theatres.

Other Updates:

  • PV volumes to come under further pressure in August
  • Honda Cars sales dip 49% to 10,250 units in July
  • Airtel reports Q1 loss of Rs 2,866 crore
  • Economic woes not as bad as 1991: Ex-RBI dy guv
  • Tata Motors cuts Tigor EV price by up to Rs 80,000
  • L&T gets shareholders’ nod to raise Rs 4,000 crore via securities
  • Auto sales in July fall for 9th consecutive month due to poor demand
  • Govt to issue overseas sovereign bonds in tranches: FinMin official
  • CRISIL revises down India’s GDP growth estimate to 6.9% for FY20
  • India, world’s No. 2 coal buyer, plans to cut imports by a third in 5 years
  • MFs’ Essel group exposure likely to fall by 30-50% after Zee stake sale
  • Jeff Bezos sells Amazon shares worth $1.8-bn , reduces stake to $110 bn
  • Life insurance industry likely to see 14-15% growth: CARE
  • Banks free to have separate caps for lending to power, renewables sectors: RBI to Centre
  • DoT may get less than 50% of₹92,000 cr AGR dues from telcos
  • Voltas eyes ₹50-cr business from Kerala this Onam
  • Suzuki Motorcycle India sales up 18% in July
  • Ashok Leyland July sales down 28% at 10,927 units
  • US to slap 10% tariff on $300 billion more in Chinese goods: Donald Trump
  • RBI allows Bank of China to offer regular banking services in India
  • Normal monsoon likely in August, September: IMD
  • Marico Q1 net profit up 21.6% to ₹315 crore
  • SEBI sends letter to MFs detailing 23 lapses in FY 17
  • Shapoorji Pallonji’s solar EPC business announces ₹3,125 crore public offer
  • PNB plans aggressive recoveries to contain gross NPA below 12%
  • NCLAT sets aside order directing return of land to Jaypee Infratech
  • Amazon.in inks lease pact with GMR Hyderabad Airport City
  • Tata Power consolidated Q1 net falls 87 pct year-on-year
  • TVS Motor July sales down 13 per cent at 2,79,465 units
  • Sensex tanks over 450 points, Nifty finishes below 11,000-mark
  • Finance Minister Sitharaman to meet CEOs of PSU banks on Friday
  • Coal India to spend Rs 700 cr to procure 40 rakes

Key Due Dates:

  • 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.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Compliance Last Date 30.09.2019_Applicability of Filing of BEN-2 by the Company

As per section 90 read with Companies (Significant Beneficial Owner) Rules, 2018.

  • Every individual, who acting alone or together, or through one or more persons, including a person’s resident outside India, holds beneficial interests, of not less than 10% in shares of a company shall make a declaration (Form BEN-1) to the company, specifying the nature of his interest and other particulars, as may be prescribed as per annexed rules.
  • Every company shall file a return (Form BEN-2) of significant beneficial owners of the Company and changes therein with the Registrar containing names, addresses and other details as may be prescribed within such time, in such form and manner as may be prescribed.
  • A company shall give notice (Form BEN-4), to any person (whether or not a member of the company) whom the company knows or has reasonable cause to believe.

(a) To be a significant beneficial owner of the company;

(b) To be having knowledge of the identity of a significant beneficial owner or another person likely to have such knowledge; or

(c) To have been a significant beneficial owner of the company at any time during the three years immediately preceding the date on which the notice is issued, and who is not registered as a significant beneficial owner with the company as required under section.

The information required by the notice as above shall be given by the concerned person within a period not exceeding thirty days of the date of the notice.

Definitions under above Rules

 “majority stake” means;-

(I) Holding more than one-half of the equity share capital in the body corporate; or

(ii) Holding more than one-half of the voting rights in the body corporate; or

(iii) Having the right to receive or participate in more than one-half of the distributable dividend or any other distribution by the body corporate.

 “Partnership entity” means a partnership firm registered under the Indian Partnership Act, 7932 (9 of 1,932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009).

“reporting company” means a company as defined in clause (20) of section 2 of the Act, required to comply with the requirements of section 90 of the Act.

“significant beneficial owner” in relation to a reporting company means an individual referred to in sub-section (1) of section 90, who acting alone or together, or through one or more persons or trust, possesses one or more of the following rights or entitlements in such reporting company, namely:-

(i) holds indirectly, or together with any direct holdings, not less than ten per cent. Of the shares.

(ii) holds indirectly, or together with any direct holdings, not less than ten per cent. of the voting rights in the shares;

(iii) has right to receive or participate in not less than ten per cent. of the total distributable dividend, or any other distribution, in a financial year through indirect holdings alone, or together with any direct holdings;

(iv) has right to exercise, or actually exercises, significant influence or control, in any manner other than through direct-holdings alone:

Explanation I – For the purpose of this clause, if an individual does not hold any right or entitlement indirectly under sub-clauses (i), (ii) or (iii), he shall not be considered to be a significant beneficial owner.

Explanation II – For the purpose of this clause, an individual shall be considered to hold a right or entitlement directly in the reporting company, if he satisfies any of the following criteria, namely.’

(i) The shares in the reporting company representing such right or entitlement are held in the name of the individual;

(ii) The individual holds or acquires a beneficial interest in the share of the reporting company under sub-section (2) of section 89, and has made a declaration in this regard to the reporting company.

Explanation III – For the purpose of this clause, an individual shall be considered to hold a right or entitlement  indirectly in the reporting company, if he satisfies any of the following criteria, in respect of a member of the reporting company, namely: –

(i) where the member of the reporting company is a body corporate (whether incorporated or registered in India or abroad), other than a limited liability partnership, and the individual,-

(a) Holds majority stake in that member; or

(b) Holds majority stake in the ultimate holding company (whether incorporated or registered in India or abroad) of that member;

(ii) Where the member of the reporting company is a Hindu Undivided Family (HUF) (through karta), and the individual is the karta of the HUF;

(iii) Where the member of the reporting company is a partnership entity (through itself or a partner), and the individual,-

  • Is a partner; or
  • Holds majority stake in the body corporate which is a partner of the partnership entity; or
  • Holds majority stake in the ultimate holding company of the body corporate which is a partner of the partnership entity.
  • Where the member of the reporting company is a trust (through trustee), and the individual,-
  • Is a trustee in case of a discretionary trust or a charitable trust.
  • Is a beneficiary in case of a specific trust;
  • Is the author or settlor in case of a revocable trust.
  • Where the member of the reporting company is,
  • A pooled investment vehicle; or
  • an entity controlled by the pooled investment vehicle, based in member State of the Financial Action Task Force on Money Laundering and the regulator of the securities market in such member State is a member of the International Organization of Securities Commissions, and the individual in relation to the pooled investment vehicle,-

(A) Is a general partner; or

(B) Is an investment manager; or

(C) Is a Chief Executive Officer where the investment manager of such pooled vehicle is a body corporate or a partnership entity.

Explanation IV-Where the member of a reporting company is,

(i) A pooled investment vehicle; or

(ii) An entity controlled by the pooled investment vehicle,

Based in a jurisdiction which does not fulfil the requirements referred to in clause (v) of Explanation III, the provisions of clause (i) or clause (ii) or clause (iii) or clause (iv) of Explanation III, as the case may be, shall apply.

Explanation V – For the purpose of this clause, if any individual, or individuals acting through any person or trust, act with a common intent or purpose of exercising any rights or entitlements, or exercising control or significant influence, over a reporting company, pursuant to an agreement or understanding, formal or informal, such individual, or individuals, acting through any person or trust, as the case may be, shall be deemed to be ‘acting together’.

Explanation VI – For the purposes of this clause, the instruments in the form of global depository receipts, compulsorily convertible preference shares or compulsorily convertible debentures shall be treated as ‘shares’.

“Significant influence” means the power to participate, directly or indirectly, in the financial and operating policy decisions of the reporting company but is not control or joint control of those policies.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

Corporate and Professional Updates on 24th July 2019

Direct Tax Updates:

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  • Income Tax Return filing due date for the A.Y. 2019-20 has been extended to 31.08.2019, Vide F No. 225/157/2019/ITA.II dated 23-07-2019.

Indirect Tax Updates:

  • GST Department- Competent Authority lodged a first information report (FIR) against assesse under provisions of Code of Criminal Procedure, 1973 (Cr. P C) for offences punishable under sections 420, 467, 468, 471, 34 and 120-B of Indian Penal Code (IPC).

RBI Updates:

  • The Reserve Bank of India under Governor Shaktikanta Das has come up with a medium-term strategy framework aimed at fostering confidence in the internal and external value of the rupee and contributing to macroeconomic stability and regulating markets and institutions under its ambit to ensure financial system stability and consumer protection. 
  • The RBI is also aiming at strengthening the external communication framework to convey its roles and functions. The core purpose of this initiative is “to foster monetary and financial stability conducive to sustainable economic growth and to ensure the development of an efficient and inclusive financial system.” The mission is “to promote the economic and financial wellbeing of the people of India in terms of price and financial stability; fair and universal access to financial services; and a robust, dynamic and responsive financial intermediation infrastructure.” The RBI said these core purposes and values remain valid while a need was felt to have a mediumterm dynamic vision statement.

Other Updates:

  • IMF cuts India’s GDP growth forecast to 7% for FY20.
  • Infra, power segments depress L&T Q1 earnings.
  • HUL net up 15%; Q1 volume growth weak at 5%
  • NCLAT’s Essar Steel order not applicable to Ruchi Soya
  • DHFL’s insurance arms solvent, safe: IRDAI chief.
  • NSE excludes Reliance Infra, Reliance Capital from F&O segment
  • IGPC wants banks to be allowed to buy gold, become bullion bankers
  • Brookfield’s plan to acquire cash-strapped Suzlon hits a roadblock
  • Rana Kapoor, Morgan Credits pledge 7.34% stake in YES Bank with lenders
  • Zee Entertainment reports 62.6% hike in Q1 net profit at Rs 530 cr.
  • Promoter stake in Cox & Kings down to 39% over payments default
  • SEBI may moot peer review mechanism for credit ratings
  • Motor Vehicle Amendment Bill gets green signal in Lok Sabha
  • Fitch, Moody’s cut Boeing’s credit rating outlook to negative
  • Reliance Industries’ stake sale talks with Saudi Aramco hit roadblock
  • Tata Power plans ₹2,500-cr asset sale to pare debt
  • Moody’s assigns ‘Baa3’ rating to Hero FinCorp
  • Oriental Bank of Commerce Q1 net profit at₹113 crore
  • RBI names Kanungo to run monetary policy portfolio after Viral Acharya quits
  • Aditya Birla Sun Life MF’s debt investors face cliff edge risk
  • Supreme Court extends NRC deadline to 31 August
  • RBI launches medium-term strategy framework Utkarsh 2022
  • RIL denies Oberoi Hotels stake buy report; says, no plan to buy EIH shares from ITC
  • Investments in Kisan Vikas Patra to now double in 9 years 5 months: FinMin
  • Capex revival 12-18 months away, says Larsen and Toubro
  • Rupee settles almost flat at 68.94 against US dollar
  • Sensex, Nifty end lower for 4th day; bank, auto stocks drag
  • IndusInd Bank plans to raise up to Rs 20,000 cr by issuing bonds
  • Crude oil up 0.28 per cent on upbeat global cues
  • Supreme Court cancels Amrapali registration, asks NBCC to complete projects

Key Due Dates:

  • 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
  • 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service  recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one  financial year for the specified and notified services.
  • 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
  • 10-07-2019 – Filing GSTR-7 (for assessee who is required to deduct TDS under GST) for the m/o June 2019.
  • 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
  • 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
  •  13-07-2019 – GSTR-6 for Input Service Distributor.
  • 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May’19.
  • 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June, 2019.
  • 15-07-2019- ESI/PF Payment for m/o June 2019.
  • 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.
  • 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
  • 20-07-2019 – GSTR-3B for the m/o June 2019.
  • 20-07-2019 – GSTR-5 for the m/o June 2019.
  • 20-07-2019 – GSTR-5A for the m/o June 2019.
  • 25-07-2019-  EPF return filing for the month of June 2019.
  • 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
  • 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in     month of June’19.
  • 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover upto Rs. 1.50/- Crore.
  • 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June, 2019.
  • 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
  • 31-07-2019- Payment of Professional Tax and Shop and Establishments taxes.
  • 31-07-2019- Form 67 Due date for claimimg Foreign Tax Credit,upload statement of Foreign income offered for tax for previous year 2018-19 and of Foreign tax deducted or paid on such incomes.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.