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Bill to Amend Companies Act in Budget Session

Likely to replace ordinance on ease of doing business, corporate governance The government has begun work to bring in legislation to replace an ordinance that it had promulgated to improve corporate governance, ease of doing business and reduce the caseload on company law tribunals. It will reintroduce the Companies (Amendment) Bill, 2019 in the upcoming budget session of Parliament starting June 17, said a senior official at the Ministry of Corporate Affairs. The Bill will replace the ordinance re-promulgated in February. The Bill seeks to help improve ease of doing business and reduce the caseload on the National Company Law Tribunal (NCLT). The ordinance, which first came into force in November last year, was re-promulgated in February after the replacement Bill was not ratified by the upper house of Parliament in the winter session because of time constraints. Bills replacing ordinances need to be placed before Parliament within six weeks of the reassembly of Parliament to ensure co…

RBI enters top-10 list of gold holders with 52.3-tonne purchase in FY19

Till about a month ago, the central bank was ranked 11th, but in March it added 3.7 tonnes of gold to its forex reserves and dislodged the Netherlands from the 10th spot The Reserve Bank of India purchased 52.3 tonnes gold in FY19 to augment its foreign exchange reserves, according to the latest data released on Tuesday by the World Gold Council. With this, it has entered league of world's top-10 gold holding central banks. RBI currently holds 612.6 tonnes of the metal as part of its foreign exchange reserves. Till about a month ago, the central bank was ranked 11th, but in March it added 3.7 tonnes of gold to its forex reserves and dislodged the Netherlands from the 10th spot. The World Gold Council derives data on gold reserves from International Financial Statistics under International Monetary Fund. All signatory central banks have to provide monthly updates to the IMF on their gold purchases forming part of their foreign exchange reserves. The latest data shows the RBI’s gold h…

Cos to Take GST Audit Exam; Experts Want No Penal Action

GST returns and accounts of firms to be audited for the first time; June 30 last date to file returns India Inc. is gearing up to face the first test of their goods and services tax filings, with the authorities looking to initiate audits by picking up returns for risk-based assessment from July. “There is a direction that the audits should begin in July,” a government official said. The audit is significant because this is the first time that GST returns and the accounts of companies will be scrutinised for compliance levels and the positions they had taken — whether they had interpreted tax provisions correctly and paid tax — after GST was introduced in July 2017. However, tax experts have called for the authorities to adopt a moderate approach during the reviews. Companies are required to file two returns by December 31, following the financial year ended March, although for FY18, the deadline was extended to June 30, 2019. The returns are the GSTR9, or the annual return, and GSTR9C,…

NBFCs facing liquidity crunch call for ease in securitisation norms

The NBFC sector wants securitisation guidelines to be amended to do away with the prescribed minimum holding period and minimum retention requirement. NBFCs are demanding relaxation of securitisation norms to ease funding woes and to defer the rules on working capital loans which they say are compounding their problems inflicted by the credit squeeze. The NBFC sector wants securitisation guidelines to be amended to do away with the prescribed minimum holding period and minimum retention requirement. The sector wants minimum holding period for loans with maturity of 2-5 years be reduced from 6 months to 3 months. On December 5, RBI issued a circular asking for compulsory bifurcation of the working capital for borrowers enjoying an aggregate fund-based working capital finance of Rs 150 crore and above from the banks. In a letter to RBI governor, the NBFC sector has asked for a year delay in implementation of the new working capital norms keeping in mind the criticality of the sector for …

Retail inflation rises to 6-month high, poses uncertainty for rate cut

The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items The beginning of the financial year 2019-20 saw a bit of rising inflationary pressures, but the rate of price rise was still below the average of the Reserve Bank of India’s (RBI’s) mandate of 2-6 per cent. Experts are divided whether the monetary policy committee (MPC) of the RBI will cut the policy rate in June. The retail price inflation rose to a six-month high of 2.92 per cent in April, pushed up by costlier food items. However, food inflation was still 1.1 per cent in the month against 0.3 per cent in the previous month. It was in March that food inflation broke the five-month trend of deflation. This may augur well for farmers who faced rural distress. Inflation in urban areas rose to 4.64 per cent in April from 3.47 per cent in the previous month, which may not go down well with the middle class, if the trend persists. Much of the inflation in food items is generally at…

April GST collections at new high despite rate rationalisation in December

Goods and services tax (GST) collection touched a record high in April, exceeding Rs 1 trillion for the third time in four months. The mop-up was 10 per cent higher over the previous year. Gross collection for the month was Rs 1.13 trillion, said the finance ministry. Despite the recent rate rationalisation in December, a rise in collection was reported. Of the total collected, the CGST (central GST) contributed Rs 21,163 crore, the SGST (state GST) Rs 28,801 crore, the IGST (integrated GST) Rs 54,733 crore (including Rs 23,289 crore on import) and cess Rs 9,168 crore (including Rs 1,053 crore on import). After settlement of the IGST and the balance IGST in a 50:50 ratio between the Centre and states on a provisional basis, the CGST stood at Rs 47,533 crore and SGST at Rs 50,776 crore. The CGST target in the Union Budget for 2019-20 is Rs 6.1 trillion. “The April collection indicates the tax base is increasing gradually, with GST getting stabilised with measures such as e-way bills and…

May Due Dates of Income Tax , Goods and Service Tax & Providend Fund

Event DateActApplicable FormObligation07/05/2019Income TaxChallan No. ITNS-281Payment of TDS Deducted in April11/05/2019Goods and Service TaxGSTR-1Outward supplies of taxable goods and/or services for the Month of April 2019 turnover exceeding 1.5 Cr.) Monthly Return.13/05/2019Goods and Service TaxGSTR-6Return by Input Service Distributor15/05/2019Providend FundElectronic Challan cum Return (ECR)E-Payment of PF for Apr15/05/2019ESIESI ChallanPayment of ESI of Apr15/05/2019Income TaxReturn No. 27EQTCS Return of all collectors for March Quarter15/05/2019Income TaxForm No.27C (TCS)Exemption from TCS15/05/2019Income TaxForm No. 16 BDue date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of March, 201920/05/2019Goods and Service TaxGSTR-3BGSTR return for the month of April 201930/05/2019Income TaxForm - 49CStatement by Non-resident having Liaison Office in India (u/s 285)30/05/2019Income TaxForm 26QBDeposit of TDS/TCS of previous month on purchase of prope…