Reference: Reserve Bank Of India
Update:
Change in Bank Rate:
Reserve bank of India on 4th October has reduced its policy repo rate by 25 basis points from 5.65 per cent to 5.40 per cent.
Implication:
All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex of Circular.
Update:
Expanding and Deepening of Digital Payments Ecosystem:
With a view to expanding and deepening the digital payments ecosystem, Reserve Bank of India has decided that all State/ UT Level Bankers Committees (SLBCs/ UTLBCs) shall identify one district in their respective States/ UTs on a pilot basis in consultation with banks and stakeholders. The identified district shall be allotted to a bank having significant footprint which will endeavour to make the district 100% digitally enabled within one year, in order to enable every individual in the district to make/ receive payments digitally in a safe, secure, quick, affordable and convenient manner. This would, inter alia, include providing the necessary infrastructure and literacy to handle such transactions.
Implicaton:
This will expand digital payments ecosystem.
Reference: Central Board of Indirect Taxes and Customs
Update:
Builder guilty of profiteering for not passing on additional ITC benefit to buyers post-GST implementation
Mohit Arora v. Lodha Developers Ltd. – [2019] 110 taxmann.com 65 (NAA)
The Applicant has filed an application to the standing committee alleging that the Respondent-builder had not passed on additional benefit of input tax credit by way of reduction in price after implementation of GST w.e.f. 01.07.2017.The Standing Committee on Anti-profiteering referred the matter to the Directorate General of Anti-profiteering (DGAP) for detailed investigation.
The National Anti-Profiteering Authority, on the basis of DGAP report and submissions of the respondent, observed that ratio of ITC to the total turnover during the pre-GST period was 1.51% as compared to 4.13% in post-GST period. Thus, there was an additional benefit of 2.62% of ITC to the Respondent-builder. However, the respondent-builder had not passed on the benefit of ITC to the home buyers.
Therefore, the National Anti-Profiteering Authority held that Respondent-builder had resorted to profiteering as it had not passed on the benefit of additional ITC to the home buyers by commensurate reduction in prices.
Also, show cause notice was issued to builder to explain why the penalty should not to be imposed upon it for indulging in profiteering.
Reference: Ministry of Corporate Affairs
Update:
Extension of last date for filing DIR 3 KYC:
Last date for filing DIR-3 KYC for Financial year 2018-19 has been extended till 14th October 2019.
Implication:
Stakeholders may kindly note and plan accordingly.
Reference: Employment / Labour Laws
Update:
Cabinet approves5% additional DA/DR due July, 2019:
The Union Cabinet Chaired by Prime Minister Narendra Modi on 9th October have approved to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020). This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.
