Categories: Others

Corporate and Professional Updates on 22nd January 2019

Indirect Tax:


QUES. What is considered as ‘securities’ under the Goods and Services Tax Act? Are they taxable under GST?

ANS. Section 2(101) of the CGST Act, 2017 defines “securities” to have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. Section 2(52) of the CGST Act, 2017 defines “goods” to mean every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. Thus, securities are not goods under the CGST Act, 2017. Section 2(102) of the CGST Act, 2017 defines “services” to mean anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Thus, securities are not services under the CGST Act, 2017. Since securities neither fall in the definition of goods nor in the definition of services, they fall in the definition of “non-taxable supply” under section 2(78) of the CGST Act, 2017.

QUES. Whether GST will be levied on the exit-load on mutual funds?

ANS. Exit load in the form of a fee (whether or not as a fixed percentage of the investment) is liable to GST. Even if the exit load is in the form of units in the fund, it may be concluded that the consideration received in money was later converted to NAV units

RBI Updates:

  • The Reserve Bank of India met about 40 Portfolio Investor for the First time in 5 years to measure overseas Investment interest in domestic fixed-income and debt securities.
  • The RBI proposed new norms for FPIs to attract long-term and stable FPI investments into debt markets, and cushion the currency and debt securities against “hot money” that can vanish overnight. The central bank, in consultation with the government and the Securities and Exchange Board of India, drafted a special route called VRR.
  • The Reserve Bank of India has mentioned norms for private parties to apply for the development of retail payment systems in the country like IMPS, UPI and others. The central bank has stated in a note that it could allow multiple entities to set up payment systems in India to encourage competition as there are very few players in this space at present.
  • The Reserve Bank of India (RBI) is governed needs changes. That the terms of engagement are set to evolve further is apparent following a turbulent 2018 that culminated in Urjit Patel’s departure as governor.
  • RBI board is not comparable to a corporate board said Partha Ray, professor of economics at the Indian Institute of Manament, Calcutta. It functions as per norms and conventions developed over the years. If a board chooses to be activist and question some of the governor’s decisions, it can perhaps be done within the existing legal parameters.
  • Effectiveness of RBI’s supervision on banks has always been under scrutiny,” said a former bank chairman who didn’t want to be named. “The issue was escalated manifold following Punjab National Bank’s Rs 13,700 Crore scam. But the government, which is the owner of 21 banks, should not get involved in RBI’s supervision. In India, the issue of owner neutrality needs to be addressed fast as the primary step towards improving governance.

Other Updates:

  • CIT wasn’t justified in refusing deduction if employee’s contribution to PE made before due date of ITR filing.
  • No Sec. 194J TDS on amount reimbursed to affiliated colleges for conducting examination.
  • Some better performing banks may be out of PCA.
  • Soon, no e-way bill if GST returns not filed for 6 months.
  • IBC noose now tightens on corporate guarantors
  • Bimal Jalan calls for political reform & autonomy.
  • Voda Idea seeks 2 yrs extension for spectrum payment.
  • Reliance asks Niko to exit from KG-D6 gas block over payment default.
  • Coal projects worth Rs 11,000 cr facing delays, govt seeks report from CIL
  • Renewable sector jittery on new external commercial borrowings norms.
  • Mumbai I-T Dept detects 191 cases of over ₹2-lakh cash transactions.
  • Promoters enter fray for Coastal Energen power, offer up to Rs 3,500 cr
  • FIEO seeks govt, RBI intervention in resolving exporters’ banking issues.
  • L&T applied for share buyback-based on standalone financials.
  • Security Exchange Board Of India  rejects L&T’s ₹9,000 crore share buyback proposal.
  • Lupin, Sun Pharma, Glenmark recall products in US.
  • Small electric cars may be unaffordable for some: Volkswagen chairman.
  • India to get its size in textile and garments on lines of US, UK: Smriti Irani.
  • ArcelorMittal to build its first-ever desalination plant in Brazil.
  • Foreign investors to drive changes to green packaging
  • Government may hike farm credit target to Rs 12 lakh crore.
  • Six of top-10 most valued companies add Rs 1,08,274 cr in m-cap.
  • FPI outflow crosses Rs 4,000 cr in Jan.
  • Coffee market awaits monsoon report from Brazil.
  • ‘Short-term debt funds can be considered for investment.
  • Traders resent RIL bid to enter e-commerce.
  • US could offer oil at discount to compensate for Iran curbs.
  • 12 state failed on jobs, despite faster growth.
  • Indian economy poised to pick up in 2019, says IMF.
  • PM mulls cheap loans, sops for small businesses.
  • IMF cuts global growth outlook, cites trade war.
  • NCLAT dismisses Jignesh Shah plea against insolvency of his investment firm La-Fin Financial Services.
  • India moves up a notch on global talent competitive index, ranked 80th.
  • Govt may impose anti-dumping duty on Malaysian glass used in solar panels.
  • India pips Japan to be second largest global steel producer
  • RIL’s asset monetization likely to pare Rs 1 trn of total debt
  • NCLT okays Airtel, Tata Tele merger
  • India among the most trusted nations globally.
  • 8,000 MW of old thermal power generation capacity phased out, says official.
  • Despite poor show in global markets, Uber posts 30% rise in net in FY18.
  • L&T Finance Q3 profit surges 81% to Rs 581 cr.
  • Farm-loan waivers to hit states fiscal deficit targets.
  • Skilled diaspora altering world’s view of India.
  • Govt likely to circumvent PESB route to fast-track hiring of Air India directors.
  • Bajaj Auto set for foray into electric vehicles next year.
  • India’s contribution to world growth doubles in a decade.
  • Apex court refuses to stay TDSAT order rejecting Trai’s predatory pricing rule.
  • Oil falls as slowing China economy dents markets.
  • IDBI Bank decides to continue with existing MD, DMDs.
  • Union Bank of India third-quarter profit misses estimates.
  • For Q3, IRB InvIT declares distribution of Rs 3.10/unit.
  • ONGC share buyback to open on January 29.
  • Advances, margin boost Kotak Bank net profit by 13.5%
  • LIC completes acquisition of 51% stake in IDBI Bank.
  • Bajaj Auto brands itself as The World’s Favourite Indian.
  • Rs 42,000-crore BharatNet projects face delay, cost overrun.

Key Due dates:

  • Challan-Cum Statement in respect of TDS under Section 194IB for the month of December 2018 is 30th January 2019.
  • Challan-cum statement in respect of TDS under section 194IA for the month of December 2018 is 30th January 2019.
  • TDS return for Purchase of Property For the month of December 2018 is 30th January 2019.

Quote of the Day:

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Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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