Reference: Central Board of Indirect Taxes and 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duty imposed under this notification shall be effective for a period of 5 years (unless revoked, amended or superseded earlier) from the date of imposition of the provisional anti-dumping duty, i.e., 26th August, 2019 and shall be payable in Indian currency.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, authorized 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 recognized 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:
Nomination for RBI Central Board
Central Government has nominated Shri Debasish Panda as a Director on the Central Board of Reserve Bank of India vice Shri Rajiv Kumar.
Implication:
The nomination of Shri Debasish Panda is effective from March 11, 2020 and until further orders.
Update:
RBI Announces USD/INR Sell Buy Swaps
Financial markets worldwide are facing intense selling pressures on extreme risk aversion due to the spread of COVID-19 infections. On a review of current financial market conditions and taking into consideration the requirement of US Dollars in the market, it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market.
Implication:
The level of Forex reserves at USD 487.24 billion as on March 6, 2020 remains comfortable to meet any exigency.
Update:
Developments in India’s Balance of Payments during the Third Quarter of 2019-20
Key Features of India’s BoP in Q3 of 2019-20
• India’s CAD narrowed sharply to US$ 1.4 billion in Q3 of 2019-20 from US$ 17.7 billion in Q3 of 2018-19 and US$ 6.5 billion in the preceding quarter.
• The contraction in CAD was on account of a lower trade deficit as compared with the corresponding period of last year.
• Net services receipts increased on the back of a rise in net earnings from computer, travel and financial services.
• Private transfer receipts increased to US$ 20.6 billion, up by 9.0 per cent from their level a year ago.
• Net foreign direct investment at US$ 10.0 billion was higher than US$ 7.3 billion.
• Foreign portfolio investment recorded net inflow of US$ 7.8 billion – as against an outflow of US$ 2.1 billion.
• Net inflow on account of external commercial borrowings to India was US$ 3.2 billion as compared with US$ 2.0 billion.
• An accretion was seen of US$ 21.6 billion to the foreign exchange reserves as against a depletion of US$ 4.3 billion.
Update:
Cancellation of Certificate of Registration on Two NBFCs
RBI cancelled the Certificate of Registration of the following companies:
- Sahayog Enterprises Pvt. Ltd.
- Sneha Agencies Pvt. Ltd.
Implication:
The above mentioned companies shall not transact business of a Non-Banking Financial Institution.
Updtate:
Five NBFCs surrender their Certificate of Registration to RBI
RBI cancelled Certificate of Registration of the following companies:
- Hyundai Capital India Pvt. Ltd.
- Unique Intercontinental Limited
- Farsight Developers Private Limited (Formerly Urmil Finlease Private Limited)
- Inter State Oil Carrier Ltd.
- Sun Corporate Services Private Limited (now Mamata Group Corporate Services Private Limited)
Implication:
The above mentioned companies shall not transact the business of a Non-Banking Financial Institution.
Update:
Extension of period- The Karad Janata Sahakari Bank Ltd., Karad, Maharashtra
RBI had issued to the Karad Janata Sahakari Bank Ltd., Karad, Maharashtra, the validity of directions for close of business which was last extended upto March 09, 2020. RBI has further extended the validity of directions for a period of three months from March 10, 2020 to June 9, 2020.
Implication:
The said bank will have to follow the directions issued by the RBI for further period of three months i.e., till 09.06.2020.
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 Exchange Board of India
Update:
Statement on Market Movement
Due to concerns relating to COVID-19 pandemic, resultant fear of economic slow down and the recent fall in global crude prices, the Indian Stock Market has been moving in tandem with other global markets. SEBI has given a table in the notification giving a comparative market movement of global indices and indicates fall in the Indian indices.
Update:
Amendments to guidelines for rights issue, preferential issue and institutional placement of units by listed REIT
SEBI has provided guidelines for rights issue of units by a listed REIT. It says that the existing clause 11 and 12 shall be re-numbered as 13 and 14 and the provisions as prescribed in the notification shall be inserted before the re-numbered clauses.
SEBI has also modified clause 3.1 of Annexure I and proviso to the paragraph 7(a) of Annexure III of guidelines for preferential issue and institutional placement of units by listen REITs. Existing paragraph (b) under clause 7 is to be re-numbered as (c) and the given guideline shall be inserted before the same. Clause 11 is also added to Annexure III.
Update:
Amendment in ‘Rights and Obligations of Members, Authorized Persons and Clients’ of FMC
SEBI has specified provisions of FMC that will be applicable to all commodity derivatives exchanges including regional commodity derivatives exchanges for compliance by their members. As per Clause 42 of Annexure-3 and Clause 48 of Annexure-3 of ‘Rights and Obligations of Members, Authorized Persons and Clients’ and Clause 37 of Annexure-4 of Rights and Obligations of Stock Brokers and Clients, clients in commodity derivatives segment are required to submit a physical form for providing email id, if they wish to receive contracts notes in electronic form. Whereas, clients in segments other than commodity derivatives segment are required to provide an appropriate email id to the stock broker.
Stock Exchanges are directed to;
- Make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision;
- Bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and
- Communicate to SEBI, the status of implementation of the provisions of this circular in their monthly report.
Implication:
SEBI issued this circular to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Update:
Monetary penalty on Delaware Polymers Pvt. Ltd and Natraj Capital & Credit Pvt. Ltd
The Investigating Authority of SEBI had issued summons to Delware Polymers Private Ltd., (Noticee 1) and Natraj Capital & Credit Pvt., Ltd., (Noticee 2) requiring them to furnish certain information such as details of off-market transactions entered into by them, which was relevant for the purpose of investigation. It was observed that the Noticees failed to produce the documents as sought by the Investigating Authority. Therefore, SEBI initiated Adjudication proceedings against the Noticee for violation of the provisions of Section 11 C(3) of SEBI Act for not complying with the summons.
Hence, SEBI imposed a monetary penalty of Rs. 10,00,000/- on Delaware Plymers Pvt. Ltd., and 10,00,000/- on Natraj Capital Credit Pvt. Ltd. for violating the said provisions.
Implication:
The Noticees shall remit / pay the said amount of penalty within 45 days of receipt of this order.
Update:
Addition of three entities to 1267/1989 ISIL (Da’esh) & Al-Qaida Sanctions List
MEA has forwarded a press release regarding addition of three entities to UNSC’s 1267/1989 ISIL (Da’esh) & Al-Qaida Sanctions List, issued by the United Nations Security Council (UNSC) namely,
- JAMAAH ANSHARUT DAULAH,
- ISLAMIC STATE IN IRAQ AND THE LEVANT -LIBYA, and
- ISLAMIC STATE IN IRAQ AND THE LEVANT -YEMEN.
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: Institute of Chartered Accountants in India
Update:
LLP Settlement Scheme, 2020 to give a One time relaxation in additional fees to the defaulting LLPs
MCA provided a one time opportunity to the LLP’s to make good their default by filing pending documents and to serve as a complaint LLP in future by introducing LLP Settlement Scheme 2020 which will be applicable from 16th March, 2020 to 13th June, 2020.
Reference: Ministry of Corporate Affairs
Update:
Relaxation of additional fees and\’extension of last date in Filing of forms MGT-7 and AOC-4
Due to disturbances in internet services, the normal work was affected in the UT of J&K and UT of Ladakh and thus, the stakeholders sought extension of time for filing of financial statements. Hence, MCA decided to further extend the due date for filing of e-forms AOC-4, AOC-4 (CFS) AOC4 XBRL and e-form MGT-7 upto 30.O6.2O2O.
Implication:
Stakeholders will have more time to file the given forms i.e., till 30.06.2020.
Update:
Companies (Registration Offices and Fees) Second Amendment Rules, 2020.
MCA amended the Companies (Registration Offices and Fees) Rules, 2014. In serial number 3, after item number Form 159 of the Companies (Court) Rules, 1959, \”Filing under Insolvency and Bankruptcy Code, 2016\” shall be inserted and after the first verification column, \”Particulars pf the person signing and submitting the form\”, shall be inserted.
Implication:
These rules shall come into force on the date of their publication in the Official Gazette.
Update:
The Companies (Incorporation) Second Amendment Rules, 2O20
MCA made amends in the Companies (Incorporation) Rules, 2014 in the Annexure in Form No.INC-28, in serial number 5, clause (a). After sub-clause (ii), the following shall be inserted, namely;
\”(iii) Section of Insolvency and Bankruptcy Code, 2016 under which order passed\”
Implication:
These rules shall come into force on the date of their publication in the official Gazette.
Update:
Exemption from application of provisions of Section 5 and Section 6 of the Competition Act, 2002
MCA has exempted a Banking Company from the application of the provisions of Section 5 and Section 6 of the Competition Act, 2002 in public interest for a period of 5 years.
Implication:
This notification shall come into force from the date of publication of this notification in the Official Gazette.
Update:
Extension of time for receiving public comments on National Action Plan for Business & Human Rights
MCA has extended the last date of submitting the comments/input for preparation of India’s National Action Plan from 10.03.2020 to 20.03.2020.
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 compliance in respect of companies under Corporate Insolvency Resolution Process (CIRP). It advises 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 e-forms 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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