Reference: Ministry of Corporate Affairs
Update:
Companies (Winding Up) Rules, 2020:
MCA has notified the Companies (Winding Up) Rules, 2020, vide Notification dt. 24 January 2020, comprising of Rules 1 to 191 and Forms WIN 1 to WIN 95, applicable for winding up under the Companies Act 2013. The same rule will be effective from 1st April, 2020.
Reference: Central Board of Indirect Taxes & Customs
Update:
New GSTINs are reallocated to active existing taxpayers registered under J & K State earlier with State code(01), having Principal Place of Business in jurisdiction of Union territory of Ladakh (with UT code “38”). The list contains new GSTINs along with old GSTINs. Taxpayers are requested to use new GSTINs while generating the invoices and receiving of supplies etc. w.e.f. 1st Jan 2020.
Reference: Central Board of Direct taxes
Update:
Income Tax searches lead to detection of undisclosed foreign assets of more than Rs. 1000 crore:
Taking forward the mission of the Government against black money, particularly undisclosed foreign assets, the Income Tax Department conducted searches on 19th January, 2020, on a group which has been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR.
The group is a leading member of the hospitality industry, running a hotel abroad and a chain of luxury hotels under a prominent brand name, situated at various locations in India.
The search operation has so far resulted in seizure of unaccounted assets valued at Rs. 24.93 crore(cash of Rs. 71.5 lakh, jewellery worth Rs.23 crore and expensive watches valued at Rs.1.2 crore).
Evidence seized during the search reveals that a large amount of black money was stashed abroad by the group, through the mechanism of Trusts, formed in early 1990s in tax havens.
Update:
Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961:
A functionality has been enabled in the e-filing login of the taxpayers whose business turnover exceeds Rs.50 crores to provide the prescribed mode of electronic acceptance of payment made available to the customers.
In order to allow sufficient time to the specified person to install and operationalize the facility for accepting payment through the prescribed electronic modes, it is hereby clarified that the penalty under section 271 DB of the Act shall not be levied if the specified person installs and operationalizes the facilities on or before 31\” January, 2020.
Implication:
If the specified person fails to do so, he shall be liable to pay a penalty of five thousand rupees per day from 01\” February, 2020 under section 271 DB of the Act for such failure.
Update:
AO to issue fresh certificate of lower deduction as he was influenced by previous order which had been quashed
TLG India (P.) Ltd. v. DCIT – [2020] 113 taxmann.com 158 (Bombay)
The assessee applied for issue of lower deduction certificate by filing an application under section 197. The Deputy Commissioner of Income Tax (TDS) [DCIT (TDS)] issued certificate for deduction of tax at different rates ranging from 1% to 1.5%.
The assessee challenged the order of DCIT (TDS). It contended that the original proposal of the ITO (TDS) was to issue certificate for deduction of tax at 0.4%. However, subsequently, the ITO (TDS) took the cognizance of the order passed against the assessee under section 201. Such order passed under section 201 was challenged by a separate writ petition. Such petition was disposed of by holding that the order was passed in breach of principle of natural justice.
On writ, Bombay HC held that order passed under section 201, undoubtedly an important element, may not be a sole basis for decision making process. Now, the existence of this order did not survive, the DCIT (TDS) should undertake fresh exercise and determine the rate at which tax had to be deducted at source.
Reference: Securities and Exchange board of India
Update:
Monetary penalty on Panchshree Logistics Private Limited & 15 others.
SEBI has imposed monetary penalty of total Rs. 95 Lakhs on 16 entities for violating provisions relating to prohibition of certain dealing in securities, trading in manipulative, fraudulent manner by creating artificial interest in the scrip of DTL and inflated / manipulated the price of the scrip, thus liable for monetary penalty under Section 15HA of the SEBI Act.
Implication:
The noticees will have to pay the amount of penalty within 45 days of receipt of order.
Update:
IPF Trust and Committees at Market Infrastructure Institutions(MIIs):
SEBI had issued circulars dated June 07, 2016 , February 23, 2017 and January 10, 2019 which provided norms on composition of IPF Trust, and functions and composition of committees at MIIs.
SEBI has further clarified that:
- Norms for composition of IPF Trust, as provided in Clause 3 (i)(4) of SEBI circular dated February 23, 2017, are uniformly applicable across Exchanges and Depositories.
- The functions of IPF Trust, as prescribed in Clause 3(i)(4) of SEBI circular dated February 23, 2017, shall be applicable only to Exchanges.
- Depositories shall ensure compliance with these norms within three months from the date of this circular.
Implication:
Depositors shall comply with these norms within 3 months from the date of this circular i.e. within 3 months from 28th January 2020 till 28th April 2020.
Reference: Insurance Regulatory and Development Authority of India
Update:
Guidelines on Group Health Insurance Policies upon Merger of Public Sector Banks (PSBs):
Consequent to the merger of few Public Sector banks, IRDAI has issued following guidelines:
- Upon merger of these PSBs, the underlying group health Insurance policies of the customers of the merged banks shall continue to be serviced by the respective insurance companies which issued the policies till the end of policy period. The insurance companies shall make suitable arrangements with the acquiring banks to this effect.
- A bank in its capacity as a group organizer may have group insurance arrangements with any number of insurance companies for the insurance needs of its customers.
- At the end of the current policy period of the group insurance policy of the merged bank, the acquiring bank at its option may continue with the same group insurance policy with the same insurance company, for the customers of the merged bank.
- The acquiring bank may simultaneously continue to have insurance coverage for its existing customers with its existing insurance company. The acquiring bank can also offer this insurance coverage to the customers of the merged bank with the consent of its insurer.
- Notwithstanding the provisions of Regulation 3 of IRDAI (Registration of Corporate Agents) Regulations, 2015 the arrangements of the merged banks can be continued with the respective insurance companies for a period of twelve months from the date of merger, subject to willingness of the acquiring bank to function as the corporate agent for the respective insurance companies.
Implication:
This will protect the interests of the group insurance policyholders of the merged banks
Reference: General
Update:
Government puts in place measures to protect Commercial decision making by Banks
The Finance Minister has repeatedly assured Bankers that adequate measures would be taken to protect honest commercial decisions taken by them and distinction would be made between genuine commercial failures and culpability. Every Bank was also required to take steps to dispose of internal disciplinary and vigilance cases in a time bound manner so that such cases do not linger on account of procedural delay so as to avoid adverse impact on staff morale and reduce scope for harassment. As part of this endeavor of Government, Section 17A was incorporated in Prevention of Corruption Act requiring prior permission before initiating investigation against a public servant.
Government has separately directed Banks on 27.01.2020 to set up a committee of senior officers to monitor progress of pending disciplinary and internal vigilance cases as procedural delay, on one hand, adversely affects morale of the employees and on the other, breeds inefficiencies in the system. Therefore, every Bank must setup a Committee of Senior Officers to review pending disciplinary and internal vigilance cases and frame timelines to reduce delays in deciding such cases.
STEPS BY GOVERNMENT
- Section 17A inserted in PC Act requiring prior permission before initiating investigation against a public servant.
- ABBFF constituted for first level of examination of suspected frauds in excess of Rs.50 crore.
- Personal responsibilities of MD &CEOs of PSBs for compliance with prescribed times lines done away with.
- Compulsory examination of fraud for all NPA accounts exceeding Rs. 50 crore has been aligned with CVC circular of 15th Jan, 2020 whereby all such cases of suspicious fraud are to be initially referred to the ABBFF.
- Committee of Senior Officers to monitor progress of pending disciplinary and internal vigilance cases and to frame timelines to reduce delays in deciding such cases.
