Reference: Institute of Chartered Accountants of India
Update:
Extension of time limit of UDIN generation from 15 days to 30 days – One Time Relaxation:
In response to the various representations received from Members at large for inability in generating UDIN due to floods in many parts of the Country and related internet issues, the Council at its 386th Meeting held on 18th and 19th September, 2019 has decided to permit generation of UDIN within 30 days in place of 15 days. Members may kindly note that this is a one-time relaxation available on the Certificate / Report / Document signed between 20th August, 2019 to 31st December, 2019.
Implication:
UDIN so generated has to be communicated to “Management” or “Those Charged with Governance” for disseminating it to the stakeholders from their end.
Update:
Ind AS Technical Facilitation Group Clarification Bulletin 21:
Ind AS Technical Facilitation Group (ITFG) of Ind AS Implementation Committee has issued Ind AS Technical Facilitation Group Clarification Bulletin 21
Implication:
This will help members/stakeholder in clarifying their issues.
Reference: Central Board of Indirect Taxes and Customs
Update:
Clarification regarding duty drawback allowed in cases of short realization of export proceeds due to bank charges deducted by foreign banks:
CBIC has received representation from Export Promotion Councils, Trade Bodies, and individual exporters regarding show cause notices issued by some Customs field formations for recovery of duty drawback on account of short realization of export sale proceeds due to bank charges deducted from export invoice by the banks.
It is clarified that duty drawback may be permitted on FoB value without deducting foreign bank charges. It is further clarified that since agency commission up to the limit of 12.5% of the FoB value has been allowed, such deduction on account of foreign bank charges is allowed within this overall limit of 12.5% of the FoB value.
Implication:
Agency commission and foreign bank charges, separately or jointly, exceeding this limit should be deducted from the FoB value for granting duty drawback.
Update:
Rate of Exchange of Foreign Currencies:
CBIC has determines the rate of exchange of conversion of various Foreign Currencies into Indian currency or vice versa for the purpose of the said section, relating to imported and export goods. READ HERE
Implication:
The new rates shall be effective from 20th September 2019
Reference: Central Board of Direct Taxes
Update:
Income-tax (8th Amendment) Rules, 2019:
CBDT has notified Rules & Forms related to Reference to Approving Panel. As per new rule, a reference under sub-section (4) of section 144BA to an Approving Panel shall be made in Form No 3CEIA along with a copy of Form No 3CEI and such other documents which the Principal Commissioner or the Commissioner deems fit; and shall be submitted in four sets, either in Hindi or English.
Implication:
\’The rules shall be effective from 17th September 2019
Update:
Measures to boost economic growth
The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. This was announced by the Union Minister for Finance & Corporate Affairs Smt Nirmala Sitaraman during the Press Conference in Goa on 20th September, 2019. The salient features of these amendments , which are as under:-
a. A new provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any domestic company an option to pay income-tax at the rate of 22% subject to condition that they will not avail any exemption/incentive. The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.
b. New provision has been inserted in the Income-tax Act with effect from FY 2019-20 which allows any new domestic company incorporated on or after 1st October 2019 making fresh investment in manufacturing, an option to pay income-tax at the rate of 15%.
This benefit is available to companies which do not avail any exemption/incentive and commences their production on or before 31st March, 2023. The effective tax rate for these companies shall be 17.01% inclusive of surcharge & cess. Also, such companies shall not be required to pay Minimum Alternate Tax.
c. No Tax Surcharge on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax, in the hands of an individual, HUF, AOP, BOI and AJP.
d. The enhanced surcharge shall also not apply to capital gains arising on sale of any security including derivatives, in the hands of Foreign Portfolio Investors (FPIs).
e. Listed companies which have already made a public announcement of buy-back before 5th July 2019, it is provided that tax on buy-back of shares in case of such companies shall not be charged.
f. Now CSR 2% fund can be spent on incubators funded by Central or State Government or any agency or Public Sector Undertaking of Central or State Government, and, making contributions to public funded Universities, IITs, National Laboratories and Autonomous Bodies (established under the auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST, Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting SDGs.
Implication:
Fees of Rs 2000 shall be payable for filing appeal against penalty order under Benami Act
Reference: Ministry of Corporate Affairs
Update:
Constitution of the Company Law Committee: MCA has constituted the company law committee consisting of a Chairman, 9 members and a Member Secretary to perform following responsibilities:
i. Analyze the nature of the offences (compoundable and non-compoundable) and submit its recommendation as to whether any of the offences could be re-categorized as \’civil wrongs\’ along with measures to optimize the compliance requirements under the Companies Act, 2013 and concomitant measures to provide further Ease of Doing Business;
ii. Examine the feasibility of introducing settlement mechanism, deferred prosecution agreement, etc., within the fold of the Companies Act, 2013;
iii. Study the existing framework under the Limited Liability Partnership Act, 2008 and suggest measures to plug the gaps, if any, while at the same time enhancing the Ease of Doing Business;
iv. Propose measures to further de-clog and improve the functioning of the NCLT;
v. Suggest measures for removing any bottlenecks in the overall functioning of the statutory bodies like SFIO, IEPFA, NFRA, etc. under the Act;
vi. Identify specific provisions under the Companies Act, 2013 and the Limited Liability Partnership Act, 2008 which are required to be amended to bring about greater Ease of Living for the corporate stakeholders, including but not restricted to review of Forms under the two Acts;
vii. Any other relevant recommendation as it may deem necessary.
READ MORE
Implication:
The Committee shall submit its recommendations in phases and subject-wise to the Government from time to time as may be decided by the Chairperson of the Committee. The Committee shall initially have tenure of one year from the date of its first meeting.
Reference: Reserve Bank of India
Update:
Implementation of Section 51-A of Unlawful Activities Prevention Act (UAPA), 1967- Updates to ISIL (Da’esh) & Al-Qaida Sanctions List: “Regulated Entities (REs) shall ensure that in terms of Section 51A of the Unlawful Activities (Prevention) (UAPA) Act, 1967, 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, which are approved by and periodically circulated by the United Nations Security Council (UNSC).
Implication:
In view of the above, 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 UNSC.
Reference: Security Exchange board of India
Update:
SEBI constitutes working group on ‘Social Stock Exchanges’ (SSE)
The Hon’ble Finance Minister as part of the Budget Speech for FY 2019 – 20 had proposed to initiate steps towards creating a social stock exchange, under the regulatory ambit of Securities and Exchange Board of India, for listing social enterprise and voluntary organizations. Pursuant to initial discussions with various stakeholders, SEBI has decided to constitute a working group under the Chairmanship of Shri Ishaat Hussain (Director, SBI Foundation;Ex -Director (Finance)Tata Sons Limited).
Implication:
The working group shall examine and make recommendations with respect to possible structures and mechanisms, within the securities market domain, to facilitate raising of funds by social enterprises and voluntary organizations.
