Reference: Central Board of Indirect Taxes & Customs
Update:
Anti-dumping duty on imports of \’Chlorinated Polyvinyl Chloride (CPVC)
CBIC recommended imposition of provisional anti-dumping duty on the imports of on Chlorinated Polyvinyl Chloride (CPVC), originating in or exported from China PR and Korea RP since such subject goods have from subject countries have caused material retardation to the establishment of the domestic industry.
Implication:
Anti-dumping duty imposed under this notification shall be effective for a period of 5 years (unless revoked, amended or superseded earlier) from the date of imposition of the provisional anti-dumping duty, i.e., 26th August, 2019 and shall be payable in Indian currency.
Update:
DGGI registered a case for fraudulently claiming IGST refunds on export of goods
ITC has been fraudulently availed by M/s Aasta Apparels Pvt Ltd & others on the basis of invoices received from non-existent/non-functional firms/companies who have indulged in circular trading. It has been revealed that the supplier companies to these exporter companies are controlled & managed by few persons only who are engaged in claiming of suspect IGST refunds.
Implication:
2 directors of aforesaid exporter companies have been arrested on 07.03.2020 under Section 69(1) of CGST Act, 2017 for offences under provisions of Sections 132(1)(b) & 132(1)(c) of the CGST Act 2017.
Update:
Appointment of CAA by DGRI
CBIC has appointed certain officers to act as a common adjudicating authority to exercise powers and discharge the duties conferred or imposed on certain officers in respect of noticees given beloW for the purpose of adjudication of show cause notices:
- M/s Panoli Intermediates (India) Pvt. Ltd.,
- M/s Anand Cine Service and
- Sh. A Manohar Prasad Authorised Signatory.
Update:
Amendment in the Notification No. 13/2020-Customs
CBIC has made following amendment in the Notification No. 13/2020-Customs, against serial number 10, in column 3, for the existing entry, \”F. No.DRI/MZU/CI/Int-41/2016-Pt.I dated 20.12.2019 read with corrigendum dated 10.02.2020” shall be substituted.
Update:
Appointment of CAA BY DGRI
CBIC has appointed the Additional Director General (Adjudication) as the Common Adjudicating Authority in respect of certain noticees mentioned below for the purpose of adjudication of Show Cause Notices:
- M/s Sahil Industries Mumbai and others
- M/s S. Atam Singh Kohli and others
Reference: Central Board of Direct Taxes
Update:
Income-tax (7th Amendment) Rules, 2020
CBDT amended rule 17C in the Income Tax Rules, 1962. After clause (v), the following clause shall be inserted, namely:-
(va) investment made by a person, authorised under section 4 of the Payment and Settlement Systems Act, 2007, in the equity share capital or bonds or debentures of a company —
(A) which is engaged in operations of retail payments system or digital payments settlement or similar activities in India and abroad and is approved by the RBI for this purpose; and
(B) in which at least fifty-one per cent of equity shares are held by National Payments Corporation of India.
Implication:
This amendment shall come into force on the date of publication in the Official Gazette.
Update:
Transactions not regarded as transfer u/s 47(viiab)(d)
CBDT notified the following securities for the purposes of the said sub-clause, which are listed on a recognised stock exchange located in any IFSC in accordance with the regulations made by SEBI namely:-
- Foreign currency denominated bond,
- Unit of a Mutual Fund,
- Unit of a business trust,
- Foreign currency denominated equity share of a company,
- Unit of Alternative Investment Fund.
Implication:
This notification shall come into force with effect from 1st April 2020.
Update:
Two bungalows adjacent to each other to be treated as one for sec. 54F though two different registries were done
Mohammadanif Sultanali Pradhan (Assessee) claimed exemption under Section 54F on long-term capital gain invested in two bungalows which were adjacent to each other and used as one residential unit. Tribunal held that under provisions of section 54F which relates to Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house, there is no definition/clarification provided about the area of the residential property. It means, one assessee can buy huge bungalow/property, say thousand square meters and can claim the deduction subject to the conditions.
Hence, the assessee could not be deprived of the benefit conferred under the statute merely on the reasoning that there were two different registries of the building/properties and assessee was entitled to the exemption provided under Section 54F.
Update:
Deputation of experienced engineer constituted technology ‘made available’, rejected ‘salary reimbursements’ plea
ITAT ruled that amount received by a US based automobile giant by way of salary and other costs recharge in relation to deputing the Vice-President [manufacturing] to its Indian subsidiary, constituted Fees for Included Services (FIS) under Article 12 of the India-USA DTAA. Hence, the ITAT rejected the assessee\’s plea and said that no technology shall be \’made available\’ in India by virtue of employees deputation. It further rejected assessee\’s claim of net basis taxation under Article 7(3) of DTAA despite the FIS arising throughout a PE in India.
Reference : Reserve Bank of India
Update:
Addition of three entities to 1267 List
Ministry of External Affairs (MEA) has forwarded a notification regarding addition of three entities in UNSC’s 1267/ 1989 ISIL (Da\’esh) & Al-Qaida Sanctions List, namely:-
- JAMAAH ANSHARUT DAULAH
- ISLAMIC STATE IN IRAQ AND THE LEVANT – LIBYA
- ISLAMIC STATE IN IRAQ AND THE LEVANT – YEMEN
Implication:
REs are advised to ensure meticulous compliance with the aforementioned instruction pertaining to UAPA and ensure that they do not have any account in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links, circulated by the UNSC.
Reference: Securities and Exchange board of India
Update:
Order against MPS Infotecnics Limited
SEBI has passed an order against MPS Infotecnics Limited, Clifford Capital Partners A.G.S.A, Mr. Peeyush Aggarwal, Mr. Sanjiv Bhavnani, Mr. S. N. Sharma, Mr, Adesh Jain, Mr. Karun Jain and Mr. Rajinder Singh (Noticees 1-8, respectively).
- It has ordered Noticee no.1 to continue to pursue measures to bring back the outstanding amount of $8.90 million into its bank account in India and to furnish a Certificate from a peer reviewed CA along with necessary documentary evidences. All the other present directors are directed to ensure the compliance of this direction
- SEBI restrained Noticee no.1 from accessing the securities market and further prohibited from buying, selling, dealing or getting associated with the securities in any manner till compliance with directions as prescribed for an additional period of 2 years from the date of bringing back the money.
- Apart from Noticee no.1, rest of the Noticees are restrained from doing the same for a period of 5 years from the date of this order and during the period of restraint, the existing holding of securities including units of mutual funds of these Noticees shall remain frozen.
Implication:
This Order shall come into force with immediate effect.
Reference: Ministry of Corporate Affairs
Update:
Extension of last of receipt of public comments on the Competition (Amendment) Bill, 2020
Taking into account, requests received from various stakeholders, MCA has extended the last date of submitting the comments on the draft Competition (Amendment) Bill, 2020 till 13th March, 2020.
Implication:
Stakeholders will have more time to file their comments, if any.
Update:
Constitution of High Level Committee for preparation of Investigation manual for Serious Fraud Investigation Office
MCA has constituted a Committee to prepare an Investigation manual for SFIO constituting following members namely:
- Mr. Injeti Srinivas
- Mr. Amardeep Singh Bhatia
- Mr. Sanjay Shorey
- Mr. Balwinder Singh
- Special Director, Directorate of Enforcement
- Mr. D. P. Singh
- Mr. K. K .Manan
- Mr. Arvind Nigam
- Mr. Ajay Bahl
- Dr. Sarasu Erther Thomas & Mr. Kunal Ambasta
- Prof. (Dr.) Mamata Biswal
- Mr. Ashish Gard
Implication:
The Committee shall submit to the Ministry its Standard Operating procedure Investigation manual for Serious Fraud Investigation Office within 45 days from their first meeting.
Update:
Filing of forms in the Registry (MCA-21)
MCA has issued clarification for statutory compliances in respect of companies under Corporate Insolvency Resolution Process (CIRP). It advices IRP/RP/Liquidators,
- To first file the NCLT order approving them as the same in Form INC-28. After filling the form, while affixing his DSC, they shall choose their designation as \’CEO\’.
- The Master Data for change in the status of the company from \”Active\”/ \”lnactive\” to CIRP/ Liquidation or CIRP/Liquidation to \”Active\” shall be effected on the basis of Formal Change Request Form submitted by IBBI to e-governance Cell, MCA(HQ).
- The IRP/ RP/ Liquidator shall be responsible for filing all the eforms in the MCA portal and sign the form in the capacity of CEO in order to meet filing protocol in the existing forms architecture.
- Against date of event and Board Resolution in INC-28 and GNL-2, date of order of NCLT/NCLAT/Court may be mentioned.
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