Corporate and Professional Updates on 4th May 2019

Direct Tax Updates:

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  • CBDT released data that after clocking steep growth of 25% in the three years to FY18, the number of taxpayers filing income-tax e-returns saw a marginal contraction in FY19. In FY19, only 6.68 crore returns were filed online, 1% lower than 6.74 crore filed in FY18.
  • Income tax department has released the software utility in excel format for filing ITR2 for FY2018-19. It is to be used by individuals having capital gains or more than one house property but not by those individuals having income from business and profession.

Indirect Tax Updates:

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  • GSTR-9 is merely a compilation of data filed in GSTR-3B and GSTR-1. As per the instructions of the form GSTR-9, it is stated that information of outward supplies ‘may’ be derived from Form GSTR 1. Hence, so far as Outward supplies and tax payable in the annual return is concerned, the same are to be extracted from Form GSTR 1 only.

Other Updates:

  • Almost 1 million being evacuated as Cyclone Fani nears India
  • Samsung to make more in India, invest Rs 2,500 cr
  • PMO reviews 59-minute loan scheme, Rs 37,870 crore disbursed
  • CIL plans 530 mn tonnes of fuel for power plants in FY20
  • PNB Housing Finance to mop up $1 billion from foreign markets
  • Air traffic growth hits 5-yr low in FY19 at 11.6%; cargo at 6%
  • Amrapali’s lawyers given flats & penthouses: Forensic auditors to SC
  • Kamdhenu Ltd net profit up 43% to Rs 22 crore in FY19
  • Shapoorji Pallonji Real Estate partners with Lokhandwala Infra.
  • NBFC crisis may push up borrowing costs for real estate developers
  • Centre’s tax revenue at Rs 13.2 trillion in FY19, missed target by 11%
  • Rs 7 trillion of corporate papers downgraded since start of IL&FS fiasco
  • Two-wheeler sales fall in April as makers avoid stockpiling at dealerships
  • Agritech start-up Ninjacart may tie up with supermarkets for groceries
  • Tata Power Q4 net profit drops 92%; declares dividend of Rs 1.30 per share
  • India again postpones US tariffs on high-value goods with eye on GSP
  • Govt plans to reduce GST rate and basic customs duty on gold
  • Chanda Kochhar misled RBI on $365 million loan to Essar group firm despite red flag.
  • Demonetisation effect wanes, income tax returns shrink in FY19
  • Slowdown in India’s economy, growth may ease to 6.5% in Q4FY19.
  • Dvara KGFS raises Rs 97 crore in Series E round
  • Bandhan Bank Q4 net soars 68%, asset quality improves
  • Buybacks, IPOs, strategic deals lead disinvestment process in FY19
  • Dabur India posts 6% decline in Q4 profit
  • TechM to deploy blockchain solution to curb spam calls
  • Axis RERA Fund invests Rs 60 crore in Chennai’s Akshaya Group
  • India eyes Guyana as Iran oil supplies end.
  • CLP may buy Morgan Stanley’s wind assets
  • Tesla plans to raise $2 billion from stock, bond offerings
  • Bombay Dyeing posts net profit of ₹1,253.33 crore in March quarter
  • BSE to conduct mock trading session for various segments on May 4
  • TPG’s Asia Healthcare agrees to buy Nova IVI.
  • Hindustan Zinc Q4 profit falls over 19% at ₹2,012 crore
  • Standard Life to sell 1.78% stake in HDFC Life for ₹1,404 crore
  • JSW enters paints business with ₹600 crore investment.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

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 May 2019

Direct Tax Updates:

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  • The Income Tax Department will now share information such as reported turnover and gross income declared with the Goods and Services Tax Network to check tax evasion. The I-T Department and GSTN will enter an agreement on the modalities of information sharing. The Central Board of Direct Taxes has said the agreement will include provisions for confidentiality, a mechanism for safe preservation of data and timelines for furnishing information.
  • CBDT has left the onus of data-sharing on the principal director general of income tax or director general of income tax. “Spontaneous exchange of data the modalities of which shall be decided by the concerned specified authorities,” an order issued by the CBDT said. Details captured in returns, status of filing income tax returns and turnover ratio will form part of the information package to be shared with GSTN. The data can be matched with the business returns of the assessee.

Indirect Tax updates:

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  • Goods and services tax collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST contributed Rs 21,163 crore, the SGST Rs 28,801 crore, the IGST Rs 54,733 crore and cess Rs 9,168 crore.
  • After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and effective data  Perhaps one reason for this increase was also a push from businesses to their vendors for reporting sales of 2017-18, for which the last date of claiming credit coincides with GST filings for the month of March,” said Pratik Jain, partner at consultancy PwC India. He felt one could now expect the monthly collection to regularly exceed Rs 1 trillion.

Other Updates:

  • NSE barred from accessing sec market for 6 mths
  • SFIO questions audit partner of KPMG India unit
  • Ambani wants to make the mother of all apps
  • L&T buys VG Siddhartha, Coffee Day stake in Mindtree for Rs 3,210 crore
  • Iraq continues to be India’s top oil supplier
  • Adani’s coal mine in Queensland has new hurdle
  • NBCC gets approvals for revised Jaypee Infra bid
  • GST collection scales all-time high of Rs 1.13 trillion in April
  • Tough life ahead for NBFCs as RBI set to tighten liquidity mismatch limits
  • TRAI pulls up DTH, cable operators for not compliying with new tariff
  • DCM Shriram reports nearly six-fold jump in Q4 net profit at Rs 293 cr
  • Patanjali gets time till May 7 for filing resolution plan
  • Ambuja Cements’ volumes, realisation disappoint
  • Netherlands got $12.8-b Indian FDI in 2017, 2nd biggest after Singapore
  • Review safeguard duties on solar cell imports, Japan tells India
  • Honda Cars India sales up 23 per cent in April 2019
  • Ness Wadia’s board positions in group firms to remain intact
  • UDS buys majority stake in Matrix to expand its business portfolio
  • Royal Enfield total sales decline 17% in April
  • Suzuki Motorcycle India sales up 12.57% in April
  • Over ₹12,000 crore subsidy disbursed to home-buyers: Housing Ministry
  • OYO to buy Amsterdam-based Leisure Group from Axel Springer
  • Tata Steel workers lose faith in Thyssenkrupp deal: works council
  • KFC and Pizza Hut report sales growth in India in Q1
  • Britannia Industries Q4 net up 11.28% at₹294.27 crore
  • Jet Airways ticket refund: Delhi High Court notice to airline on customers’ plea
  • Government fixes 2.1 MT quota for sugar sale in May
  • CEA issues draft guidelines on cross-border power trade
  • Tax filing falls 1% in FY19, indicating overall slowdown: Report
  • Oyo to acquire Amsterdam firm @Leisure for €369 million
  • India Ratings lowers country’s GDP growth projection for FY20 to 7.3 pc
  • Gold slides on sluggish demand, silver firms up
  • NCLAT allows insolvency proceedings
  • Better days seen ahead for Reliance Nippon MF
  • India apprehensive Iran sanctions could boost oil prices, inflation.

Key Due Dates:

  • Payment of TDS Deducted in April is 7th May 2019.
  • GSTR-1 Due Date for the month of April 2019 is 11th May 2019.
  • GSTR-3B for the month of April 2019 is 20th May 2019.

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 14th February 2019

Indirect Tax Updates:

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  • Almost 73% of Indian received ‘angel tax’ notices more than 2,500 startups and entrepreneurs While the government has indicated that it is working to resolve the issue the taxman’s efforts to tax investments by ‘angel’ or early-stage investors has already dented sentiment.
  • India’s recent economic history offers enough evidence to show that tax revenues can be raised even without a rampaging tax bureaucracy or ad-hoc measures such as demonetization. India’s tax-to-GDP ratio improved significantly in the period between 2003-04 and 2007-08 simply because of higher growth and tax reforms.
  • The obsession with raising taxes has often been justified by the fact that India collects less tax as a share of its national income compared to several other large economies. However, compared to other economies at a similar stage of development, India’s tax-GDP ratio appears respectable.

FAQ’s on GST:

QUES. Whether for the services received from a related person / distinct person outside India, the recipient of services would be eligible for full input tax credit?

ANS. In terms of the second proviso to section 17(4) of the CGST Act, 2017, the restriction of reversal of 50% credit would not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN. The non-applicability of 50% reversal is only to the extent of inter-branch services between registered branches having the same PAN in India. Thus, tax paid on services received from a related person / distinct person located outside India would be liable to 50% reversal.

QUES. Whether the provision of section 18(6) for reversal of input tax credit availed on capital goods be applicable to banks only to the extent of the input tax credit availed?

ANS. Yes. The provisions of section 18(6) of the CGST Act, 2017 for reversal of input tax credit availed on capital goods would be applicable to banks only to the extent of the input tax credit availed by it. In case the Bank opts to avail input tax credit to the extent of 50% in terms of the second proviso to Section 17(4) of the CGST Act, 2017, reversal of credit would be in proportion to the actual credit availed by the Bank i.e. only with reference to 50% of the input tax credit availed by it on capital goods.

SEBI Updates:

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  • The Securities and Exchange Board of India is planning to tighten risk management practices in equity derivatives and stocks in the runup to the general elections.
  • The market regulator is likely to tighten margin rules for futures and options trades and restrict introduction of strike prices in options intra-day as it looks to curb wild speculation by traders, said three people privy to the development. It is also planning to bring more stocks under its surveillance schemes, they said. Brokers said the cost of trading in derivatives could rise by at least 20%.

Other Updates:

  • PNB to e-auction 4,000 properties to recover loans.
  • Bank credit grows 14.5%, deposits up 9.63%.
  • Volvo wants to lead the electric vehicles race in India.
  • DHFL CEO resigns amid allegations of Rs 31,000 cr scam.
  • Centre allows all firms to take part in strategic disinvestment of EPIL.
  • Valuation of Indian equities still remains expensive, says Credit Suisse.
  • Coal India’s bank interest income likely to fall after another buyback with debt exposure at Rs 56,000 cr, MFs’ infra bets come under IL&FS cloud.
  • SEBI mulls strict disclosure norms for MFs.
  • Venezuela turns to India for oil exports as US sanctions bite.
  • Canada, US accuse India of ‘dramatic’ under-reporting of MSP for five pulses.
  • NCLT grants ‘operational creditor’ status to GAIL.
  • Cabinet clears higher MSP of 3,950/quintal for raw jute
  • Bombay HC refuses interim relief to Reliance Power against Edelweiss.
  • JSW Steel declared winning bidder Bhushan Power and Steel.
  • Cyclical concerns mask Bharat Forge’s robust Q3 results
  • Sun Pharma Q3 result only a brief reprieve for investors
  • NCLT allows Amtek Auto’s debt resolution process to start from scratch
  • Tata Power to be selective about bidding for stressed assets: CEO
  • NCLT bench reserves order on plea of Essar Steel’s suspended management
  • Nestle set to sell first Starbucks coffee under $7.15 billion deal
  • 15 sugar mills in Maharashtra likely to face recovery action
  • Prathap C Reddy family mulls selling entire stake in Apollo Munich
  • Venkataramanan quits Tata Trusts; Noel joins Ratan Tata Trust
  • Rupee snaps 6-day rise, settles 10 paise down at 70.80 vs USD
  • Show-cause notices to Idea, BSNL for not meeting TRAI’s call drop norms in Sep Quarter.

Key Due Dates:

  • Payment of ESI of January 2019 is 15th February 2019.
  • Due Date of GSTR 3B for the month of January 2019 is 20th February 2019.

Quote of the Day:

“You have to perform at a consistently higher level than others. That’s the mark of a true professional. Professionalism has nothing to do with getting paid for your services.”

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 to info@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.