Reference: Fraud
Update:
PNB fraud case: CBI seeks court permission to attach properties of fugitive jeweller Nirav Modi, brother:
The Central Bureau of Investigation sought permission of a court here to attach the properties of fugitive jeweller Nirav Modi, his brother Nishal and another accused in the over $2 billion Punjab National Bank (PNB) scam.
In the plea before special CBI judge V C Barde, the central agency said the accused had left the country before the case was registered, so the warrants against them could not be executed.
While Modi was arrested in London and extradition process is pending, the whereabouts of his brother Nishal and another accused, Subhash Parab, were not known, the application said.
Update:
Value of bank fraud cases rises 74% to ₹71,543 cr in FY19: RBI Annual Report
Value of bank fraud cases increased 74%, from ₹41,167 cr in FY18 to ₹71,543 cr in FY19, said the RBI annual report 2019.
Number of bank fraud cases rise from 5,900 in FY18 to 6,800 in FY19.
The number of cases of frauds reported by banks increased by 15% in 2018-19 on a year-on-year basis, with the amount involved rising by 73.8%, though mostly related to occurrences in earlier years.
The average lag between the date of occurrence and its detection by banks was 22 months. The average lag for large frauds, i.e. ₹100 crore and above, amounting to ₹52,200 crore reported during 2018-19, was 55 months.
Update:
Biggest ever pan-India joint operation by Directorate General of GST Intelligence and Directorate General of Revenue Intelligence against fraudulently claiming refund of IGST by exporters
In the biggest ever joint operation by Directorate General of GST Intelligence (DGGI) and Directorate General of Revenue Intelligence (DRI) against exporters who were claiming refund of IGST fraudulently, pan-India searches were carried out at 336 different locations across the country yesterday. The operation covered entities in the states of Delhi, Haryana, Uttar Pradesh, Gujarat, Maharashtra, Tamil Nadu, West Bengal, Karnataka, Madhya Pradesh, Telangana, Punjab, Rajasthan, Himachal Pradesh, Uttarakhand and Chhattisgarh. The joint operation of the two premier intelligence agencies of Central Board of Indirect Taxes and Customs (CBIC), was a first of its kind in the history of CBIC which involved about 1200 officers from both the agencies.
Reference: Central Board of Indirect Taxes and Customs
Update:
CBIC Seeks to bring Section 103 of the Finance (No. 2) Act, 2019 in to force:
CBIC vide notification dated 31st August, 2019 has appointed the 1st September, 2019 as the date on which the section 103 of the Finance Act, 2019
Extract of section 103 of the Finance (No. 2) Act, 2019 is as follows:-
- In section 54 of the Central Goods and Services Tax Act, after sub-section (8), the following sub-section shall be inserted, namely:––
“(8A) The Government may disburse the refund of the State tax in such manner as may be prescribed.
Implication:
Provisions of section 103 of Finance Act, 2019 shall come into force from 1st September, 2019
Update:
Extension of due date for filing GSTR 7 for people of Jammu and Kashmir and 58 flood affected districts of 7 states: Ministry of Finance vide notification dated 31st August, 2019 has extended the deadline for filing return by a registered person, required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 for the months of October, 2018 to July, 2019 till the 20th September, 2019 for people of Jammu and Kashmir and 58 flood affected districts of 7 states.
Implication:
Due date for filing GSTR 7 for people of Jammu and Kashmir and 58 flood affected shall be 20th September, 2019
Update:
Waiver of the late fees for the month of July, 2019 for FORM GSTR-1 and GSTR-6:
Notification No. 41/2019- Central Tax dated 31.08.2019 issued to waive the late fees for the month of July, 2019 for FORM GSTR-1 and GSTR-6 to be filed by taxpayers in J&K and 58 flood affected districts across 7 States provided the said returns are furnished by 20.09.2019.
Implication:
Late fees for the month of July 2019 for FORM GSTR-1 and GSTR- 6 to be filed by taxpayers is J & K and 58 flood affected are is waved off provided that the same is furnished by 20th September, 2019
Update:
CVD on imports of \’Saccharin in all its forms\’ exporting from China: CBIC vide notification dated 30th August imposed countervailing duty (CVD) on imports of \’Saccharin in all its forms\’ originating in or exported from People’s Republic of China in pursuance of countervailing duty/anti-subsidy investigation issued by DGTR.
Implication:
CVD has been mposed on import of Saccharin in all its forms from China at 20% of CIF Value. CIF value means the assessable value as determined under section 14 of the Customs Act, 1962 (52 of 1962).
Update:
GST Revenue collection for August, 2019: Rs. 98,202 crore of total gross GST revenue collected in August. The total gross GST revenue collected in the month of August, 2019 is ₹ 98,202crore of which CGST is ₹ 17,733 crore, SGST is ₹ 24,239 crore, IGST is ₹ 48,958 crore (including ₹ 24,818crore collected on imports) and Cess is ₹7,273 crore (including ₹841crore collected on imports). The total number of GSTR 3B Returns filed for the month of July up to 31st August, 2019 is 75.80 lakh.
The government has settled ₹ 23,165 crore to CGST and ₹ 16,623 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of August, 2019 is ₹ 40,898 crore for CGST and ₹ 40,862 crore for the SGST.
Reference: Central Board of Direct Taxes
Update:
CBDT notifies creation of five-member special cell for startups: The CBDT notified on 30th August, 2019 creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues. An order issued by the Central Board of Direct Taxes (CBDT) said the \’startup cell\’ will be headed by the member (Income Tax and Computerisation) of the board. Startups can approach the cell at: Office of Under Secretary, ITA-I, Room No 245A, Noth Block, New Delhi-110001. Phone: 011-23095479; Fax no: 23093070.
Implication:
The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act, 1961
Update:
Income Tax department made history with a quantum jump in the e-filing of Income–Tax Returns With an All time high record of 49 lakh 29 thousand and 121 ITRs filed in a single day on 31st August 2019:
This has perhaps created a history as the tax administration nowhere in the world has achieved such huge online e-filing ITRs in a single day and that too so smoothly; with the IT department actively interacting with taxpayers on social media to help them resolve their grievances and e-filing related queries and getting accolades in return.
The Central Board of Direct Taxes (CBDT) today releasing the data on e-filing of ITRs for which last date of submission was 31st August 2019 said that this is a remarkable achievement as taxpayers are experiencing a whole new facet of the I-T department which is not only taxpayers’ friendly but also is of a facilitator providing informational assistance with the pre-filled forms and handholding e-filers besides being proactively responsive on social media to help and guide taxpayers.
Reference: Institute of Chartered Accountants of India
Update:
Additional FAQs on UDIN: For the benefits of Members to clarify some doubts, UDIN Monitoring Group of ICAI has released Additional FAQs on Audit, Assurance & Attest functions which are available at Point I in FAQ Section.
Reference: Ministry of Corporate Affairs
Update:
Update regarding incorporation of Nidhi companies: Stakeholders are advised not to file applications for incorporation of Nidhi companies for the time being, on account of certain changes required in eform SPICe. Stakeholders will be duly informed as soon as the proposed changes are carried out. Inconvenience caused is regretted.
Reference: Reserve Bank of India
Update:
Amendment to Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs): RBI extended timeline for conversion of minimum detail PPIs to KYC compliant PPIs from 18 months to 24 months. It may also be noted that no further extension will be granted for this purpose.
Implication:
PPI issuers are advised to ensure compliance with the Direction within this extended period.
Update:
Directions under Section 35A of the Banking Regulation Act, 1949 to Rupee Co-operative Bank Ltd., Pune, Maharashtra:
Rupee Co-operative Bank Ltd., Pune, Maharashtra was placed under directions vide directive dated February 21, 2013 from close of business on February 22, 2013. The validity of the directions was extended from time to time vide subsequent Directives, the last being Directive dated May 27, 2019 and was valid upto August 31, 2019, subject to review. RBI directed that the Directive dated February 21, 2013, as modified from time to time, issued to the above bank, the validity of which was last extended upto August 31, 2019 shall continue to apply to the bank for a further period of three months from September 01, 2019 to November 30, 2019 vide Directive dated August 28, 2019 subject to review.
Implicaton:
Rupee Co-operative Bank Ltd., Pune, Maharashtra to follow directions dated 21st February, 2013 for further period of 3 months till 30th november.
Reference: Security Exchange board of India
Update:
Monitory Penalty of Rs. 13 lakhs in matter of Shreekrishna Biotech Limited: SEBI conducted an investigation into the trading in the scrip of Shreekrishna Biotech Limited (SBL), on observing high volatility in the price of the scrip.
On Investigation SEBI Concluded that ‘Noticees dealt in the scrip of SBL in a coordinated manner to artificially inflate the price of the scrip of SBL, thereby inducing gullible investors to trade in the scrip of SBL, despite weak fundamentals of the company.
The individuals have violated the Prohibition of Fraudulent and Unfair Trade Practices Regulations and a fine of Rs 5 lakh has been imposed on Vipul Mohanlal Joshi, while others have been fined Rs 1 lakh each.
Implication:
The penalty is payable by noticee mentioned in the order and it shall be payable within 45 days of the receipt of the order.
Update:
Imposition of fine of Rs. 1.81 crore on Inventure Growth and Securities, 12 officials: SEBI imposed total penalty of Rs 1.81 crore on stock broker Inventure Growth and Securities Ltd and its twelve officials for failing to utilise the initial public offering (IPO) proceeds for purposes as stated in the prospectus.
Implication:
The penalty is payable by noticee mentioned in the order and it shall be payable within 45 days of the receipt of the order.
Reference: Employment / Labour Laws
Update:
Labour Minister Santosh Kumar Gangwar says 8.65% interest on Employees\’ Provident Fund to be notified soon:
The labour ministry will soon notify 8.65 percent rate of interest on Employees\’ Provident Fund (EPF) for 2018-19 as the finance ministry does not disagree on this rate, said Labour Minister Santosh Gangwar.
Implication:
A notification by the labour ministry is required regarding the interest rate for crediting the interest amount into accounts of over 6 crore subscribers.
Reference: General
Update:
7 changes in income tax laws that come into effect from September 1, 2019:
TDS on additional payments made when purchasing immovable property: From September 1, while buying a property, you will have to include the payment made for other services or amenities such as club membership fee, car parking fee, electricity and water facility fee and so on when computing the amount paid for the property for the purpose of deducting TDS.
TDS on cash withdrawals from bank account: Cash withdrawals exceeding Rs 1 crore on aggregate basis during the year from an account held with a bank, cooperative bank or post office will invite levy of TDS from September 1
TDS on payments made by individuals and HUFs to contractors and professionals: From September 1, individuals and HUFs making a payment to contractors and professionals exceeding Rs 50 lakh in aggregate per annum will also be required to deduct TDS at the rate of 5 per cent.
TDS on non-exempt portion of life insurance: If life insurance maturity proceeds received by you are taxable in your hands, then TDS will be deducted at the rate of five per cent on the net income portion.
Banks and FIs can be asked to report even small transactions: From September 1, banks and FIs can be asked to report even small transactions to the tax department which in turn can use the data to check your ITR.
If PAN is not linked with Aadhaar; PAN will now become inoperative but not invalid if not linked with Aadhaar by the specified deadline.
Inter-changeability of PAN and Aadhaar and mandatory quoting in prescribed transactions: Aadhaar can be quoted in lieu of PAN only for certain prescribed transactions.
Update:
Cabinet approves Infusion of capital by Government in IDBI Bank:
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Infusion of Rs 4,557 crore by Government in IDBI Bank.
It will help in completing the process of IDBI Bank’s turnaround and enable it to return to profitability and normal lending, and giving Government the option of recovering its investment at an opportune time.
IDBI Bank needs a one time infusion of capital to complete the exercise of dealing with its legacy book. It has already substantially cleaned up, reducing net NPA from peak of 18.8% in June 2018 to 8% in June 2019. The capital for this has to come from its shareholders. LIC is at 51% and is not allowed to go higher by the insurance regulator. Of the Rs. 9,300 crore needed, LIC would meet 51% (Rs. 4,743 crore). Remaining 49%, amounting to Rs. 4,557 crore, is proposed from Government as its share on one time basis.
Implication:
After this infusion, IDBI Bank expects to be able to subsequently raise further capital on its own and expects to come out of RBI’s Prompt Corrective Action (PCA) framework sometime next year. This cash neutral infusion will be through recap bonds i.e. Government infusing capital into the bank and the bank buying the recap bond from the Government the same day, with no impact on liquidity or current year’s Budget
