Reference: Central Board of Indirect Taxes and Customs
Update:
CBIC notifies certain amendments in the CGST Rules, 2017
The CBIC vide Notification No. 02/2020 –
Central Tax dated January 1, 2020 has notified certain amendments in the Central Goods and Services Tax Rules, 2017 (“CGST Rules”).
As per the said amendment
- The due dates for furnishing Form TRAN-1 and Form TRAN-2 by the registered taxpayers has been extended to March 31, 2020 and April 30, 2020 respectively.
Form REG-01: Application for Registration and Form GSTR – 3A: Notice to return defaulter u/s 46 for not filing return are also amended.
Implication:
The due dates for furnishing Form TRAN-1 and Form TRAN-2 by the registered taxpayers has been extended to March 31, 2020 and April 30, 2020 respectively.
Update:
Amendment in the transition plan:
CBIC has amended the transition plan for the UTs of J&K and Ladakh. Following are the amendment in the transition plan:
Those persons whose principal place of business or place of business lies in the erstwhile State of Jammu and Kashmir till the 30th day of October, 2019; and lies in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from the 31st day of October, 2019 onwards shall have an option to transfer the input tax credit (ITC) from the registered Goods and Services Tax Identification Number (GSTIN), till the 31.12.2019 in the State of Jammu and Kashmir, to the new GSTIN in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from 1.01.2020
The balance of State taxes in electronic credit ledger of the said class of persons, whose principal place of business lies in the Union territory of Ladakh from the 1.1.2019 shall be transferred as balance of Union territory tax in the electronic credit ledger.
Implication:
The option to transfer the input tax credit (ITC) from the registered GSTIN in the State of Jammu and Kashmir is extended till 31-12-2019, to the new GSTIN in the Union territory of Jammu and Kashmir or in the Union territory of Ladakh from 1-1-2020 by following the specified procedure.
Reference: Central Board of Direct Tax
Update:
Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline
CBDT had relaxed the timeline for filing application for compounding of offences under Income Tax Act 1961 till 31st December 2019 as a one time measure.
With a view to give a final opportunity to such taxpayers, and to reduce the pendency of existing prosecution cases before the courts, the CBDT has relaxed the timeline for filing such application to be filed before the Competent Authority i.e. the ProCClT/CClT/Pr. DGlT/DGlT concerned till 31.01.2020
Implication:
Taxpayers have more time to filing applications for compounding of offences under Income Tax Act.
Update:
Income-tax (1st Amendment) Rules, 2020:
CBDT has made amendments in Income Tax Rules,1961,following are some changes in new ITR 4Sugam AY 2020-21 :-
- If having Passport, its number is to be given
- If incurred aggregate expenses exceeding Rs. 2 lakh on foreign Travel for self or for others, then amount to be specified.
- If deposited aggregate amount exceeding Rs. 1 crore in one or more current accounts then aggregate of amount deposited in all such accounts to be specified.
- If spent amount exceeding Rs. 1 lakh on electricity consumption then specify such aggregate amount.
- If any assessee owns property in coownership then he will not be eligible to file ITR 1 Sahaj or 4 Sugam.
- In case of 44AD or 44ADA or 44AE now the assessee will be required to give opening balance of cash in hand and opening balance of bank accounts and also will be required to give total amount received in cash during the year total Amount deposited in bank during the year, total amount of cash outflow out of cash balance during the year, total amount of withdrawal from Bank during the year and closing balance of cash in hand and closing balance of banks.
- Now there will be no need to provide figures of unsecured loans, sundry debtors, sundry creditors, amount of closing stock, etc. as was required in earlier years.
Implication:
The amendment shall come into force with effect from the 1st day of April, 2020.
Reference: Ministry of Corporate Affairs
Update:
Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020
MCA has amended the Companies Appointment & Remuneration of managerial Personnel) Rules 2014. Vide said amendment MCA notified that \”Every private company which has a paid up share capital of ten crore rupees or more shall have a whole -time company secretary\”
Every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more shall annex with its Board’s report, a secretarial audit report, given by a company secretary in practice.
The paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account
Implication:
The amendments shall be applicable in respect of financial years commencing on or after 1st April, 2020.
Update:
Relaxation of additional fees and extension of last date of filling of Form No. BEN-2 and BEN-1
MCA has extended the time limit for filing e-form No. BEN 2 upto 31.03.2020 without payment of additional fee.
Implication:
Consequent to such extension of the date of filing e-Form No. BEN-2, the date of filing of Form No. BEN-1 may be construed accordingly.
Reference: Securities Exchange Board of India
Update:
Contribution by a non-defaulting member in the Default waterfall of Clearing Corporations:
SEBI has issued new framework for core settlement guarantee fund and liability of non-defaulting members of clearing corporations.
Requisite contributions to Core SGF by various contributors for any month will be made by the contributors before the start of the month.
In the event of usage of Core SGF during a month, Sebi said the contributors shall as per usage of their individual contribution, immediately replenish the Core SGF to the minimum required corpus.
However, such contribution towards replenishment of Core SGF by the members would be restricted to only once during a period of 30 days regardless of the number of defaults during the period, it added.
The period of 30 calendar days shall commence from the date of notice of default by a clearing corporation to market participant, it added.
Implication:
The measures as referred above shall come into effect from January 01, 2020
If there is a failure on part of some contributor to replenish its contribution, same would be immediately met, on a temporary basis during the month in this order
- clearing corporation
- stock exchange
Update:
Strengthening of the rating process in respect of ‘INC’ratings:
In order to further strengthen the rating process of the CRAs with regard to ‘Issuer not cooperating’ (INC) ratings, SEBI has issued following directions:
If an issuer has all the outstanding ratings as non-cooperative for more than six months, then the CRA shall downgrade the rating assigned to the instrument of such issuer to non-investment grade with INC status.
If non-cooperation by the issuer continues for further six months from the date of downgrade to non-investment grade, no CRA shall assign any new ratings to such issuer until the issuer resumes cooperation or the rating is withdrawn.
Implication:
If an issuer has an outstanding rating as non-cooperative for more then six months, credit rating agencies would downgrade it to non-investment grade with the Issuer Not Cooperating (INC) status.
