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In this article, we will discuss the major updates from the Finance and Tax Industry between 6th December and 12th December 2020

A. INCOME TAX UPDATES

1. Income Tax Department conducts searches in Chennai

The IT Department is conducting search operation on prominent business group of Chennai having varied business activities. About 60 premises being covered across TN, Karnataka, AP & Maharashtra. More than Rs.7 crore of unaccounted cash found from key-person so far. Search is still in progress.

2. CBDT issues refunds of over Rs. 1,45,619 crores to more than 89.29 lakh taxpayers between 1st April 2020 to 8th December 2020

  • Income Tax Refunds - Rs. 43,274 crores to 87,29,626 taxpayers
  • Corporate Tax Refunds - Rs. 1,02,345 crores to 1,99,554 taxpayers

3. Income Tax Department conducts searches in Odisha

The Income Tax Department has carried out search and seizure operations on 03/12/2020 in the case of a Group involved in the manufacturing and trading of steel products having premises in and around Rourkela, Odisha.The Group entities were booking bogus purchases of around Rs. 170 crore for two financial years in the name of 17 bogus entities.

4. Income Tax Department requests to Pay the third installment of Advance Tax by 15th December 2020

Income Tax Department - Your #AdvanceTax will propel the nation towards greater heights! Do your bit in transforming the vision of a brighter tomorrow into a reality. Pay the third installment of your #AdvanceTax on or before 15th December, 2020.

5. Income Tax Department conducts searches in Assam

The Income Tax Department started a search and survey action on 04/12/2020 in the cases of leading Coal Traders of Assam. The search and survey actions are being carried out at 21 locations in Guwahati, Digboi, Margherita and Delhi.

The main allegations against the group are that it has routed accommodation entries of more than Rs. 23 crore and Rs. 62 crore in the form of non-genuine share capital and non-genuine unsecured loans respectively, through certain Kolkata-based shell companies.

Weekly Finance and Tax News Bulletin by CAclubindia - 6th Dec to 12th Dec 2020

B. GST UPDATES

1. GST field formations cancelled 1,63,042 registrations in Oct & Nov 2020 due to non-filing of GSTR-3B returns for more than 6 months

To handle the menace of fake firms, fly-by-night operators, and circular trading entities, GST field formations cancelled 1,63,042 registrations in the month of Oct & Nov this year due to non-filing of GSTR-3B returns for more than 6 months - Department of Revenue (DoR) sources.

2. One arrested for fraudulently availing ITC of around Rs 45 crore

Shri Avijeet Saluja, Director and one of the main beneficiaries of the activities of the firms, has been arrested on 10.12.2020 and was produced before the Hon'ble CMM, Patiala House Courts on 11.12.2020, after the medical examination and COVID test.Shri AvijeetSaluja has been sent to judicial custody for 14 days by the Hon'ble Metropolitan Magistrate. Further investigations are in progress.

Firm action has been taken by CGST Delhi Zone in this financial year i.e. 2020-21, has resulted in detection of GST evasion of 3542.02Crores and 14 accused have been arrested so far.

3. CBIC further makes changes in the notification of the Finance Ministry No. 63/1994-Customs (N.T.) dated the 21st November 1994

4. GSTR-9 of FY 2019-20 is available now

Facility to file annual return in Form GSTR-9 for FY 2019-20 is now available. The Form is enabled for taxpayers whose table 8A computation has been completed. Computation of the table 8A of the said return for auto population from returns is under progress which is likely to be completed soon. Please ensure that all applicable returns of the said year have been filed before attempting to file the said return.

5. Form GSTR-2A has auto-populated option based on ICEGATE data

Now Form GSTR-2A has auto-populated option based on ICEGATE data. PART-D has been added to the existing Part A, B& C.

 

To know more, click here

6. 6th Instalment of Rs.6,000 crore released to the States as back to back loan to meet the GST compensation shortfall

The Ministry of Finance has released the weekly instalment of Rs. 6,000 crore to the States to meet the GST compensation shortfall. Out of this, an amount of Rs. 5,516.60 crore has been released to 23 States and an amount of Rs.483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

7. Online filing of application by Taxpayers for unblocking E-Way Bill generation facility

From 1st December, 2020, onwards, the EWB generation facility is being blocked for all taxpayers, irrespective of their Aggregate Annual Turnover, for default in filing of Return in FORM GSTR-3 B or Statement in FORM GST CMP-08 for two or more consecutive Tax periods.

8. DGGI Gurugram arrests man for illegally availing input tax credit on invoices without goods

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Shri Rajesh Kasera resident of New Delhi on charges of IGST fraud by way of illegallyavailing input tax credit (ITC) on invoices without goods, and encashing through IGST refund mode by resorting to overvalued exports.

A total fake ITC of more than 8.72 crore has been thus passed/availed by the accused which was subsequently used for wrongly availing IGST refund.

9. Fictitious ITC transactions racket of Rs. 290.70 Crores busted by DGGI, Nagpur

As a follow-up of the detection of a non-existent Advertising Firm in Dhule which had availed and passed on fake ITC, searches were conducted at the premises of a Mumbai based Private Limited CompanyM/s M& M Advisors & Consultants Private Limited and at the residences of its Director and Chartered Accountants. This Company was registered for Licensing services for the right to broadcast and show Movies.

Recovery of Input Tax Credit of Rs. 25.22 Crore in Cash

C. RBI UPDATES

1. RTGS 24*7*365 to be launched w.e.f 14th December 2020

Reserve Bank had announced in the Statement on Developmental and Regulatory Policies dated October 09, 2020, that the Real Time Gross Settlement System (RTGS) will be available round the clock on all days of the year.

Accordingly, RTGS 24x7x365 will be launched with effect from 00:30 hours on December 14, 2020. India will become one of the few countries in the world to operate its RTGS system round the clock throughout the year. This comes within a year of operationalizing NEFT 24x7 by the Reserve Bank.

2. RBI releases Draft Circular on Declaration of Dividend by NBFCs

In pursuance of the announcements made in the Statement on Developmental and Regulatory Policies dated December 04, 2020, the Reserve Bank of India has released today the Draft Circular on Declaration of Dividend by NBFCs. Comments on the Draft Circular are invited from NBFCs, industry participants and other interested parties by December 24, 2020.

Feedback on the Draft Circular may be forwarded to:

  • The Chief General Manager, Reserve Bank of India, Department of Regulation (NBFCs), 2nd Floor, Main Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001 or,
  • By email with the subject line "Feedback on Draft circular on declaration of dividend by NBFCs."
 

D. MISCELLANEOUS UPDATES

1. Special window for Affordable & mid income housing Fund(SWAMIH) to provide relief to homeowners - FM

As a part of the AatmaNirbharBharat Abhiyaan, additional borrowing limit of up to 2% of Gross State Domestic Product (GSDP) was allowed to the States for the year 2020-21, equivalent to Rs. 4,27,302 crores.

2. FM lauds concerted efforts resulting in higher procurement and payment of over Rs 21000 crore to MSMEs upto November

Union Minister of Finance Smt Nirmala Sitharaman reviewed the situation about payment to the MSMEs and expressed satisfaction and appreciation on the excellent work done by the Ministry of MSME. As part of Prime Minister of India's vision, the Finance Minister had announcedAtmaNirbhar Bharat package in May, 2020, it was also stated that the MSME dues should be paid in 45 days.

As a result, over Rs 21000 crore of MSME dues have been paid in past 7 Months since May 2020 by the Central Govt Agencies and CPSEs. The highest level of Procurement was achieved in October of over Rs 5100 crore and payment of over Rs 4100 crore.

3. FM addresses the 13th Plenary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes

Finance Minister Smt. Nirmala Sitharaman addressed the 13th Plenary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes as the keynote speaker.FM also called upon the international community for further strengthening and broadening of the tax transparency agenda to include effective international cooperation on assistance in recovery of taxes, and measures to tackle emerging risks to tax transparency.

4. FM announces Rs 3 lakh Crores Collateral-Free Guaranteed Loans for MSMEs

Unprecedented liquidity support to MSMEs!

Rs 3 lakh cr Collateral-Free Guaranteed Loans – Budgetary provision of Rs.4000 crore made for the Scheme in First Supplementary Demand for Grants for FY 2020-21.

5. India and UN-Based Better Than Cash Alliance organized a joint Peer learning exchange on Fintech solutions for responsible digital payments at the last mile

India became a member of the Better Than Cash Alliance in 2015 to digitize payments to achieve financial inclusion and to share success stories from Pradhan Mantri Jan Dhan Yojana, the world's largest financial inclusion program. Alliance is working with several state governments towards the goal of building knowledge and programs where people, governments, and businesses can make and receive digital payments.

6. Reform linked borrowing permission of Rs.23,523 crores issued to 9 States

Reform linked borrowing permissions lead to various citizen centric reforms in the States. 9 States have successfully completed One Nation One Ration Card Reform. This has enabled the States to mobilise additional financial resources to fight the pandemic and maintain the standards of service delivery to the public. However, to ensure long-term debt sustainability and prevent any adverse impact on future, a part of the additional borrowing was linked to the States carrying out reforms in the sectors critical for service delivery to the citizens.

7. Cabinet approves the proposal of SEBI to sign Bilateral MoU between India and Luxembourg

The MoU is likely to strengthen cross border cooperation in the area of securities regulations and facilitate mutual assistance, contribute towards the efficient performance of the supervisory functions aid in imparting technical domain knowledge and enable effective enforcement of the laws and regulations governing the securities markets of India and Luxembourg.

8. SEBI releases consultation paper on Compliance Standards for Index Provider

Objective - To solicit the comments / views from market participants on compliance standards for index providers, to enhance greater level of transparency, promoting the reliability of benchmark determinations, addressing benchmark governance and accountability mechanisms, by providing a broad framework for index providers managing / maintaining Indices.

9. ESIC takes Major Policy Initiatives for better medical services to Workers

Keeping in view the increase in ESI coverage over the recent years and the absence of ESI's own medical infrastructure in several areas, the ESI Corporation has now decided that in areas where ESI infrastructure is not available within a radius of 10 kms, the beneficiary can avail medical consultation for OPD services directly from a hospital empaneled with ESIC or with Ayushman Bharat without the need for referral from an ESI dispensary or hospital. In such cases if admission for indoor treatment is required, the empaneled hospital will obtain time bound permission from the ESI approving authority through an online system.

10. CCI approves acquisition of certain assets of the Prestige Group by affiliates of Blackstone Group Inc.

The principal activity of the Acquirers viz affiliates of Blackstone Group Inc, is that of investment holding and related activities. However, at present, they do not have any business operations, in India or worldwide. The Acquirers are affiliates of funds advised or managed by the affiliates of The Blackstone Group Inc.

11. CCI approves acquisition of shares of Odisha Power Generation Corporation Ltd (OPGC) by Odisha Hydro Power Corporation Limited (OHPC)

The proposed combination involves the acquisition by OHPC of 49% equity shares in OPGC from AES OPGC Holding and AES India, pursuant to the Share Sale and Purchase Agreement.

12. Government announces schedule for the sale of government securities

The Government of India (GoI) has announced the Sale (Re-issue) of (i) '3.96% Government Security, 2022' for a notified amount of Rs 2,000 crore (nominal) through price based auction, (ii) '5.15% Government Security, 2025' for a notified amount of Rs 11,000 crore (nominal) through price based auction, (iii) '5.85% Government Security, 2030' for a notified amount of Rs 9,000 crore (nominal) through price based auction, and (iv) '6.80% Government Security, 2060' for a notified amount of Rs 6,000 crore (nominal) through price based auction.

13. SEBI issues Operational guidelines for Transfer and Dematerialization of re-lodged physical shares

SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2020/166 dated September 07, 2020, has fixed March 31, 2021 as the cut-off date for re-lodgment of transfer requests and has stipulated that such transferred shares shall be issued only in demat mode. In this regard, SEBI has issued operational guidelines for transfer and dematerialization of re-lodged physical shares. To read the same: click here

14. AYUSH Export Promotion Councils to be set up in a price-competitive manner

The Ministry of Commerce and Industry and the Ministry of AYUSH have decided to work together to set up an Export Promotion Council to boost AYUSH exports. This decision was taken recently in a joint review of AYUSH trade and Industry by Shri Piyush Goyal, Minister of Commerce and Industry and Shri Shripad Naik, Minister of AYUSH. It was also decided in the review that the entire AYUSH sector will work together to achieve price and quality competitiveness to boost AYUSH exports. The review was held through video conference on 4th December 2020, which was attended by nearly 50 industry and trade leaders from the AYUSH Sector. More than 2000 stake-holders of the AYUSH Sector also attended the e-event through live streaming on virtual platforms.


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Category Professional Resource, Other Articles by - CCI Team 



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