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Reference: Central Board of Direct Taxes
Update:
Ministry of Finance issues clarification on NRI taxation / ‘stateless’ person clause
The Finance Bill, 2020 has proposed that an Indian citizen shall be deemed to be resident in India, if he is not liable to be taxed in any country or jurisdiction. This is an anti-abuse provision since it is noticed that some Indian citizens shift their stay in low or no tax jurisdiction to avoid payment of tax in India.
The new provision is not intended to include in tax net those Indian citizens who are bonafide workers in other countries. In some section of the media the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including in Middle East, and who are not liable to tax in these countries will be taxed in India on the income that they have earned there. This interpretation is not correct.
In order to avoid any misinterpretation, it is clarified that in case of an Indian citizen who becomes deemed resident of India under this proposed provision, income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession. Necessary clarification, if required, shall be incorporated in the relevant provision of the law.
Update:
Income Tax (Third Amendment) Rule, 2020:
Ministry of Finance has notified Income Tax (Third Amendment) Rule, 2020. In the new rule, It has prescribed Other electronic modes under various section and provisions of the Income Tax Act. Following are other electronic modes prescribed under new Rule 6ABBA:
- Credit Card;
- Debit Card;
- Net Banking;
- IMPS (Immediate Payment Service);
- UPI (Unified Payment Interface);
- RTGS (Real Time Gross Settlement);
- NEFT (National Electronic Funds Transfer),
- BHIM (Bharat Interface for Money) Aadhar Pay
Implications:
The above provision shall be deemed be effective from the 1st day of September, 2019.
Reference: Ministry of Corporate Affairs
Update:
Relaxation of additional fees and extension of last date in filing of forms MGT-7 and AOC-4- UT of J&K and UT of Ladakh
MCA has further extend the due date for filing of financial statements for the financial year ended 31.03.2019 in e-forms AOC-4, AOC-4 (CFS) AOC4 XBRL and e-form MGT-7 upto 31.03.2020, for companies having jurisdiction in the UT of J&K and UT of Ladakh without levy of additional fee.
Implication:
Companies having jurisdiction in UT of J&K and UT of Ladakh will have more time for filing annual return under companies Act 2013
Reference: Securities Exchange Board of India
Update:
Currency Future and Options Contracts (involving Indian Rupee) on Exchanges in International Financial Services Centres (IFSC)
SEBI has decided for currency futures and options contracts involving Indian Rupee (with settlement in foreign currency), the position limits for eligible market participants, per currency pair per stock exchange, shall be as follows:
- Trading Members (positions on proprietary basis as well as clients’ position) -Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
- Institutional Investors -Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
- Eligible Foreign Investors –Gross open position across all contracts not to exceed 15% of the total open interest or USD 1 billion equivalent, whichever is higher
- Other Clients –Gross open position across all contracts not to exceed 6% of the total open interest or USD 100 million equivalent, whichever is higher.
Explanation :
For the purpose of extending aforementioned positions limits, Institutional Investors includes the following:
• International Banking Units (IBU) set up in IFSC
• Foreign Portfolio Investors (FPI)
• AMCs and other Funds set up in IFSC
• Insurance Companies set up in IFSC
• Foreign Banks setup in other offshore jurisdictions
• Supranational, Multilateral or Statutory Organization / Institution/Agency
Reference: Reserve Bank of India
Update:
Cash withdrawal using Point of Sale (PoS) terminals
RBI had issued notifications in which banks were required to obtain one time permission from the Reserve Bank of India (RBI) for offering the facility of cash withdrawal at PoS terminals deployed by them.
RBI has decided that the requirement of obtaining permission from the RBI be dispensed with and that henceforth, banks may, based on the approval of their Board, provide cash withdrawal facility at PoS terminals.
Implication
The designated merchant establishments may be advised to clearly indicate / display the availability of this facility along with the charges, if any, payable by the customer
Update:
Extension of directions issued to Shivam Sahakari Bank Ltd., Kolhapur, Maharashtra
RBI had placed the Shivam Sahakari Bank Ltd., Ichalkaranji, Kolhapur, Maharashtra, under Directions from the close of business on May 19, 2018. RBI has extended the period of aforesaid Directive and shall continue to apply to the bank till March 31, 2020.
Implication:
The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.
Updtae
Extension of directions issued to The CKP Co-operative Bank Ltd, Mumbai, Maharashtra
RBI had placed The CKP Co-operative Bank Ltd, Mumbai, Maharashtra under Directions from close of business on May 2, 2014. The validity of the directions was extended from time to time & the last being upto January 31, 2020. RBI has extended the further period of 2 months from February 01, 2020 to March 31, 2020
Implication
The said bank will have to comply with direction issued by RBI for further period of 2 months till 31st March 2020
Update:
Monetary penalty on Fortune Integrated Assets Finance Limited
The Reserve Bank of India (RBI) has imposed, a monetary penalty of Rs. 2 lakh on Fortune Integrated Assets Finance Ltd., Mumbai, for non-compliance with directions issued by RBI on ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’.
Implication
The said NBFC will comply with directions issued by RBI to avoid further penalty.
Reference: Central Board of Indirect taxes & Customs
Update:
Anti Dumping revoked on Purified Terephthalic Acid including its variants
Central Government revoked the anti dumping duty imposed on “Purified Terephthalic Acid” including its variants “Medium Quality Terephthalic Acid” and “Qualified Terephthalic Acid”, originating in or exported from the People’s Republic of China, Iran, Indonesia, Malaysia, Taiwan, Korea RP and Thailand, and imported into India and has rescinded the notifications relating thereto.
Implication:
Purified Terephthalic Acid including its variants Medium Quality Terephthalic Acid and Qualified Terephthalic Acid is exemped from anti dumping duty.
Update:
Goods exempted from Health Cess:
CBIC exempted goods of the description specified in the notification from the whole of the Health Cess leviable thereon under the said clause of the Finance Bill:
In case of goods specified in said notification, the exemption shall be subject to the condition, if any, specified under the respective exemption notifications mentioned therein.
