Reference: Central Board of Indirect Taxes and Customs
Update:
Appointment of effective date:
Central Government has appointed the 24th day of September, 2019, as the date on which the provisions of rules 10, 11, 12 and 26 of the Central Goods and Services Tax (Fourth Amendment) Rules, 2019 shall come into force.
Implication:
In view of the above FORM GST RFD-05 shall be amended.
Update:
Exemptions to petroleum operations or coal bed methane operations undertaken under HELP and OALP:
CBIC has amended notification No. 50/2017 dated 30.06.2017 to exempt petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)
Implication:
Petroleum operations or coal bed methane operations undertaken under HELP and OALP shall be exempted from Custom Duty.
Reference: Central Board of Direct Taxes
Update:
Handle tax issues of startups with utmost care: CBDT to I-T department
The Central Board of Direct Taxes (CBDT), which frames policy for the tax department, issued an order stating some fresh directions for handling grievances of startups.
Direction stated that, in case of any grievance, the preliminary action taken report is to be submitted to CBDT by the next day, that is within one working day of calling of the report. And the final action taken report in this regard is to be submitted within three working days of calling of the report.
Implication:
The regional heads of the Income Tax Department shall constitute a startup cell at their offices.
Reference: Ministry of Corporate Affairs
Update:
Relaxation of Additional fees and extension of last date of filling of Form BEN- 2 and BEN 1 under Companies Act 2013:
The Ministry of Corporate Affairs has extended the last date for filing of e-Form BEN-2 upto 31.12.2019 without additional fees on account of certain new aspects which require further examination and clarification. Consequent to the extension in the date of filing of e-Form BEN-2, the date of filing of Form BEN-1 may be construed accordingly.
Implication:
Last date for e filing of Form BEN 2 & BEN 1 shall be 31.12.2019 without any additional payment.
Reference: Reserve Bank of India
Update:
Agency Commission- Furnishing reconciliation certificate:
RBI stated that agency banks while claiming agency commission may submit the revised certificate (given in Annex B of the Circular) duly certified by Chartered Accountants or by Cost Accountants. Revised Annex B is enclosed to the circular.
Implication:
There is no change in Annex A and other usual Certificate from ED / CGM (in charge of government business) to the effect that there are no pension arrears to be credited / delays in crediting regular pension / arrears thereof.
Reference: Security Exchange board of India
Update:
SEBI bars Morepen Laboratories Limited from market for 1 year
Morepen Laboratories Limited (Morepen) has violated Prohibition of Fraudulent and Unfair Trade Practices (PFTUP) norms by issuing Global Depository Receipt (GDR) with an arrangement that it pledged the GDR proceeds for the loans availed by the subscribers for subscribing to the GDR issue of Morepen and made false and misleading disclosures.
In view of the above SEBI prohibited Morepen from accessing the securities market, directly or indirectly, and also restrained from buying, selling or otherwise dealing in the securities including units of mutual funds, either directly or indirectly or in any other manner whatsoever, for a period of one year.
Implication:
Morepen Laboratories Limited will not be able to enter into the capital market due to SEBI restrictions
Update:
Valuation of money market and debt securities:
SEBI has asked mutual fund houses to follow \”waterfall\” approach for the valuation of money market and debt securities. Under this approach, all traded securities would be valued on the basis of traded yields, subject to identification of outlier trades by the valuation agencies.
Besides, the regulator has come out with a framework relating to valuation of inter-scheme transfers and barred the use of own trades for valuation
The regulator said a money market or debt security will be classified as \”below investment grade\” if the long-term rating of the security issued by a credit rating agency (CRA) is below BBB- or if the short-term rating of the security is below A3.
Implication:
The process of following waterfall approach will bring uniformity and consistency in valuation.
Reference: Fraud
Update:
DGGI unearths input tax credit fraud of over Rs 400 crore
Input tax is paid by a business on the purchase of goods and services that go into its own products or services, and claimed as a credit to lower its tax liability when it makes a sale.
The Directorate General of Goods and Services Tax Intelligence (DGGI), Ahmedabad has unearthed input tax credit (ITC) fraud of over ₹400 crore by some units at the Kandla Special Economic Zone (SEZ) wherein companies inflated the value of goods by as much as 4,000% to falsely claim ITC.
