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Sep 15, 2021

Timelines for updation of Scheme Information Document (SID)and Key Information Memorandum (KIM)

SEBI vide Circular no. SEBI/HO/IMD/IMD-IDOF2/P/CIR/2021/0560 dated 30th April, 2021 has decided that the updation of SID and KIM for the half-year ended March, 2021 shall be completed by May 31, 2021   <a href="https://www.sebi.gov.in/legal/circulars/apr-2021/timelines-for-updation-of-scheme-information-document-sid-and-key-information-memorandum-kim-_50020.html">https://www.sebi.gov.in/legal/circulars/apr-2021/timelines-for-updation-of-scheme-information-document-sid-and-key-information-memorandum-kim-_50.....

Sep 15, 2021

Business responsibility and sustainability reporting by listed entities

SEBI vide circular No. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated 10th May, 2021 has stated that reporting of company’s performance on sustainability related factors has become as vital as reporting on financial and operational performance. With effect from the financial year 2022-2023, filing of Business Responsibility and Sustainability Report shall be mandatory for the top 1000 listed companies (by market capitalization) and shall replace the existing Business Responsibility Report   <a hre.....

Sep 15, 2021

Procedure for seeking prior approval for change in control of SEBI registered Portfolio Managers

SEBI registered Portfolio Managers   SEBI vide circular No. SEBI/HO/IMD/IMD-I/DOF1/P/CIR/2021/564 dated 12th May, 2021 has stated that Regulation 11(aa) of SEBI(Portfolio Managers) (Second Amendment) Regulations, 2021 provides that a Portfolio Manager shall obtain prior approval of SEBI in case of change in control in such manner as may be specified by SEBI. Accordingly, it has been decided that all SEBI registered Portfolio Managers .....

Sep 15, 2021

Clarification on spending of CSR funds for setting up makeshift hospitals, temporary covid care facilities.

MCA vide Circular No. 05/2021 dated 22nd April, 2021 has clarified that spending of CSR funds for 'setting up makeshift hospitals and temporary COVID Care facilities ' is an eligible CSR activity under Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and, disaster management.   <a href="http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo5_22042021.pdf">http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo5_22042021.pdf</a> <!-- /wp:paragraph.....

Sep 15, 2021

Clarification on spending of CSR funds for creating health infrastructure for covid care, establishment of medical oxygen generation and storage plants etc.

MCA vide Circular No. 09/2021 dated 05th May, 2021 has clarified that spending of CSR funds for ‘creating health infrastructure for COVID care’, ‘establishment of medical oxygen generation and storage plants’, ‘manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19’ or similar such activities are eligible CSR activities under Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care and disaster management. <!-- /wp:para.....

Sep 15, 2021

Meetings of board - clarification regarding gap between two board meetings

MCA vide Circular No. 08/2021 dated 03th May, 2021 has decided that the gap between two consecutive meetings of the Board now extends to 180 days during the Quarter - April to June 2021 and Quarter-July to September, 2021, instead of 120 days as required in the Companies Act, 2013.   <figure class="wp-block-embed"><div class="wp-block-embed__wrapper"> http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo8_03052021.pdf </div></figure> <!-- /.....

Sep 15, 2021

Relaxation on levy of additional fees in filing of certain forms under Companies act, 2013 and LLP act, 2008

MCA vide Circular No. 06/2021 dated 03th May, 2021 has notified that no additional fees shall be levied upto 31st July, 2021 for the delayed filing of forms (other than CHG-1 Form, CHG-4 Form and CHG-9 Form) which were/would be due for filing during 1st April, 2021 to 31st May, 2021. For such delayed filings upto 31st July, 2021 only normal fees shall be payable.   <a href="http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo6_03052021.pdf">http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo6_03052021.pdf</.....

Sep 15, 2021

Where assessee offered capital gain on sale of a property and assessment completed accordingly but reassessment was initiated on ground registering authority had not accepted value of land as per sale deed , since manner in which sale deed was valued by assessee and stamp duty paid at time of registration as well as appeal filed under section 47A of Indian Stamp Act and actual market value prevailing during relevant point of time with reference to subject property provides new information and additional material which were not considered at time of original assessment, reopening by AO was in consonance with provisions of section 147.

<ul><li>vide Decision of High Court of Madras in GE T&D India Ltd. v. Deputy Commissioner of Income Tax, Chennai.</li></ul>   Facts of the case:   <ol><li>The petitioner is a listed Company incorporated on 13.03.1957 and is engaged in the business of manufacturing of heavy electrical equipment and0020executes projects involving transmission and distribution of power and other turnkey projects.</li><li>The learned counsel appearing for the petitioner, with reference to the<.....

Sep 15, 2021

Where members of applicant club contribute by way of subscription fees and infrastructure development fund which is used for purposes of provision of services and foods and a reading room, library, chambers for accommodating family and guests, etc., it is held that unless the amendment under section 7 of the CGST Act, 2017 is notified the applicant is not liable to pay GST on subscription fees and infrastructure development fund collected from members on the basis of principle mutuality

<ul><li>vide decision of Authority for Advance Rulings, Karnataka</li><li>Applicant: Bowring Institute, Bengaluru</li></ul>   Facts of the case:   <ol><li>The applicant is a club and a non-profit organization established by the British in the year 1868 as a literary and scientific society. It is a members-club as opposed to a proprietary club. </li><li>The members contribute by way of subscription fees and infrastructure development fund which is used for the purposes of provi.....

Sep 16, 2021

Extension of due date for furnishing the details of outward supplies under CGST Act, 2017

GST vide Notification No. 17/2021 dated 1st June, 2021 has extended the due date for filing Form GSTR-1 for the month of May till 26thJune, 2021.   <a href="https://cbic-gst.gov.in/pdf/central-tax/notfctn-17-central-tax-english-2021.pdf">https://cbic-gst.gov.in/pdf/central-tax/notfctn-17-central-tax-english-2021.pdf</a> .....

Sep 16, 2021

Extension of due date for filing Form GSTR-4 under CGST Act, 2017

GST vide Notification No. 25/2021 dated 1st June, 2021 has extended the due date for filing Form GSTR-4 for FY 2020-21 till 31st July, 2021.   <a href="https://cbic-gst.gov.in/pdf/central-tax/notfctn-25-central-tax-english-2021.pdf">https://cbic-gst.gov.in/pdf/central-tax/notfctn-25-central-tax-english-2021.pdf</a> .....

Sep 16, 2021

Extension of due date for furnishing of FORM ITC-04 for Quarter Ending March, 2021

GST vide Notification No. 25/2021 dated 1st June, 2021 has extended the due date for filing Form ITC-04 for quarter ending March,2021 to 30th June, 2021.   <a href="https://cbic-gst.gov.in/pdf/central-tax/notfctn-26-central-tax-english-2021.pdf">https://cbic-gst.gov.in/pdf/central-tax/notfctn-26-central-tax-english-2021.pdf</a> .....

Sep 16, 2021

Master Direction – Reserve Bank of India (Certificate of Deposit) Directions, 2021

RBI vide notification No. RBI/2021-22/79 dated 4th June, 2021 has issued master direction on Certificate of Deposits. The eligible issuers of Certificate of Deposits are:   <ol><li>Scheduled Commercial Banks</li><li>Regional Rural Banks and</li><li>Small Finance Banks The circular can be referred through the following link:</li></ol>  <!-- wp:p.....

Sep 16, 2021

Risk Based Internal Audit (RBIA) for Housing Finance Companies(HFCs)

RBI vide Notification no. RBI/2021-22/53 dated 11th June, 2021 has decided that the Risk based Internal Audit(RBIA) shall be applicable to the following Housing Finance Companies (HFCs):   <ol><li>All deposit taking HFCs, irrespective of their size</li><li>Non-deposit taking HFCs with asset size of ₹5,000 crore and above</li></ol>   The applicable Housing Finance Companies (HFCs) shall comply with the framework by 30th June, 2022 <!-- /wp:pa.....

Sep 16, 2021

Investment by Foreign Portfolio Investors (FPI) in Government Securities

RBI vide Notification No. RBI/2021-22/44 dated 31st May, 2021 has notified the investment limits by FPIs in government securities for FY 2021-22 as follows:   <ol><li>The limits for FPI investment in Government securities (G-secs) and State Development Loans (SDLs) shall remain unchanged at 6% and 2% respectively, of outstanding stocks of securities for FY 2021-22</li><li>All investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR)<.....

Sep 16, 2021

Rate of interest on Government of India Floating Rate Bonds, 2031

RBI vide Press Release No. 2021-2022/325 dated 4th June, 2021 has specified the applicable rate of interest of Government of India Floating Rate Bonds, 2031. The rate of interest on Government of India Floating Rate Bonds, 2031 (GOI FRB 2031) applicable for the half year June 7, 2021 to December 6, 2021 shall be 4.59 percent per annum.   <a href="https://www.rbi.org.in/Scripts/BS_PressRe.....

Sep 16, 2021

Extension of time lines related to compliances by the Taxpayers under the Income-tax Act 1961

Income tax vide Circular No. 09/2021 dated 20th May, 2021 has notified extension of various timelines under the Income-tax Act, 1961.   <ul><li>The due date of furnishing of Return of Income for AY 2021-22, which is 31st July 2021 under Section 139(1) of the Act, is extended to 30th September 2021.</li><li>The due date of furnishing of Audit Report under the Act for PY 2020-21, which is 30th September 2021, is extended to 31st October 2021</li><li>The due date of furnishing Report from an Accou.....

Sep 16, 2021

Computation of Fair Market Value of Capital Assets for the purposes of section 50B of the Income-tax Act

Income tax vide Notification No.68/2021 dated 24th May, 2021 has notified the Computation of Fair Market Value of Capital Assets for the purposes of Section 50B of the Act. Rule 11UAE of Income Tax Rules explains the criteria for computation of Fair market Value of Capital Assets for Slump Sale.   <a href="https://incometaxindia.gov.in/communications/notification/notification_68_2021.pdf">https://incometaxindia.gov.in/communications/notification/notification_68_2021.pdf</a> .....

Sep 16, 2021

Enhancement of overall limit for overseas investment by Alternative Investment Funds (AIFs)/Venture Capital Funds (VCFs)

SEBI vide Circular no. SEBI/HO/IMD/DF6/CIR/P/2021/565 dated 21st May, 2021 has increased the overall limit for overseas investment by AIFs and VCFs.SEBI registered AIFs and VCFs are permitted to invest overseas upto an overall limit of USD 750 million. The said limit has now been enhanced to USD 1500 million .....

Sep 16, 2021

Enhancement of Overseas Investment limits for Mutual Funds

SEBI vide circular No. SEBI/HO/IMD/IMDII/DOF3/P/CIR/2021/571 dated 3rd June, 2021 has increased the overall limit for overseas investment by Mutual Funds.   <ol><li>Mutual Funds can make overseas investments subject to a maximum of USD 1 billion per Mutual Fund, within the overall industry limit of US $ 7 billion</li><li>Mutual Funds can make investments in overseas Exchange Traded Fund (ETF) subject to a maximum of USD 300 million per Mutual Fund, within the overall industry limit of .....

Sep 16, 2021

Clarification on offsetting the excess CSR spent for FY 2019-20

MCA vide Circular No. CSR-01/4/2021 dated 20th May, 2021 has clarified that where a company has contributed any amount to ‘PM CARES Fund’ on 31.03.2020, which is over and above the minimum amount as specified under section 135(5) of the Companies Act, 2013 for FY 2019-20, then such excess amount can be offset against the requirement to spend under section 135(5) for FY 2020-21   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MTQxNzU=&docCategory=NotificationsAndCirculars&type=downl.....

Sep 16, 2021

- Additional Income under Section 68 of the Income tax Act was added to declared income of the assessee by the assessing officer without granting for the personal hearing of the assessee Where AO made addition to assessee's declared income under section 68 on account of unexplained unsecured loan, since it was found that assessee sought personal hearing before AO to establish genuineness of unsecured loan received by assessee which had not been granted by AO, assessee had been able to establish a prima facie case in its favour and thus impugned order is set aside to file of AO to consider assessee's reply

<ul><li>vide Decision of High Court of Delhi in DJ Surfactants v. National E-Assessment Center, Income Tax Department, New Delhi</li></ul>   Facts of the case:   <ol><li>The Assessing Officer(AO) has made an addition to the petitioner's declared income of Rs. 9,56,00,000/- under section 68 of the Income-tax Act, 1961 related to AY 2018-19. The addition has been made on account of purported unexplained, unsecured loans</li><li>Show cause notice was issued to the petitioner on 1.....

Sep 16, 2021

Penalty cannot be charged by the GST Officer merely on the ground that E-way Bill has expired Where consignment of the petitioner was detained by Deputy State Tax Officer on ground that validity of E-way bill had expired and petitioner had to pay an amount towards tax and penalty for release of goods, it was held that there was no material before respondent to detain petitioner merely on account of lapsing of time mentioned in E-way bill and respondent was directed to refund amount collected from petitioner

<ul><li>vide decision of High Court of Telangana in Satyam Shivam Papers (P.) Ltd. v. Assistant Commissioner of Services Tax</li></ul>   Facts of the case:   <ol><li>The petitioner is a Private Limited Company registered under the Companies Act, 1956 and carries on trading business in all kinds of paper. It also has valid GST Registration.</li><li>It is the sole distributor of M/s. International Papers Limited, Andhra Pradesh, and it also effects inter-State purchases of paper.....

Sep 21, 2021

GST on service supplied by Central/State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them

GST vide Circular No. 154/10/2021 dated 17th June, 2021 has mentioned that Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions are exempt.   <a href="https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_154.pdf">https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_154.pdf</a> <!-- /wp:pa.....

Sep 21, 2021

Liberalised Remittance Scheme for Resident Individuals – Reporting

RBI vide notification No. RBI/2021-22/56 dated 17th June, 2021 has issued reporting requirements for AD Banks w.r.t. Liberalised Remittance Scheme. i. AD Category -I banks were required to upload the data in respect of number of applications received and the total amount remitted under the Liberalised Remittance Scheme (the Scheme) on Online Return Filing System (ORFS). ii. It has now been decided to collect this information through XBRL(Extensive Business Reporting Language) system instead of the ORFS. iii. AD Category – I banks shall upload the requisit.....

Sep 21, 2021

Appointment of Chief Risk Officer in Primary (Urban) Co-operative Banks

RBI vide Notification no. RBI/2021-22/62 dated 25th June, 2021 has notified about the appointment of Chief Risk Officer in Primary (Urban) Co-operative Banks. i. With increasing size and scope of business, Primary(Urban) Co-operative Banks (UCBs) are gradually getting exposed to greater degree of risks. ii. It has been decided that all UCBs having asset size of ₹5000 crore or above, shall appoint a Chief Risk Officer (CRO). The Board must clearly define the CRO’s role and responsibilities and ensure that he/she<br.....

Sep 21, 2021

Review of Instructions on Interest on overdue domestic deposits

RBI vide Notification No. RBI/2021-22/66 dated 2nd July, 2021 has notified the rate of interest on unclaimed deposits with Banks. Earlier, if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits. It has now been decided that if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings account or the contracted rate of interest on t.....

Sep 21, 2021

Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit- Extension

RBI vide Notification No. RBI/2021-22/65 has approved the extension of Interest Equalization Scheme for pre and post shipment Rupee export credit, with same scope and coverage, for three more months i.e., upto 30th September, 2021.   The extension takes effect from July 01, 2021 and ends on September 30, 2021 covering a period of three months.   https://www.rbi.org.in/Scripts/NotificationUs er.aspx?Id=12124&Mode=0 <!-- /wp:p.....

Sep 21, 2021

Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic

Income tax vide Circular No. 12/2021 dated 25th June, 2021 has notified extension of various timelines under the Income-tax Act, 1961. (i) Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending on 30lh June, 2021 , which is required to be uploaded on or before 15th July,2021 , may be uploaded by 31st August,2021. (ii) The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10AF, Form No.10AB for registration/Provisional registration/intimation/Approval/provisional approval o.....

Sep 21, 2021

Extension of Due date for Declaration in respect of Tax Arrears

Income tax vide Circular No. 13/2021 dated 30th June, 2021 has notified the last date for declaration to designated authority about the tax arrears under Direct Tax Vivad se Vishwas Act, 2020. The new date shall be 31st August, 2021 in place of 30th June, 2021.   <a href="https://www.incometaxindia.gov.in/communications/notification/notification_75_2021.pdf">https://www.incometaxindia.gov.in/communications/notification/notification_75_2021.pdf</a> .....

Sep 21, 2021

Guidelines under section 194Q of the Income-tax Act, 1961

Income tax vide Circular No. 75/2021 dated 25th June, 2021 has Issued guidelines under Section 194Q of the Income Tax Act, 1961. i. Finance Act, 2021 inserted a new section 194Q in the Income-tax Act 1961 which takes effect from 1st July, 2021. It applies to any buyer who is responsible for paying any sum to any resident seller for purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year. ii. The buyer, at the time of credit of such sum to the account of .....

Sep 21, 2021

Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961

Income tax vide Notification No. 01/2021 dated 22nd June, 2021 has released a new functionality Compliance Check for Section 206AB & 206CC to facilitate tax deductors/collectors to verify if a person is a "Specified Person" as per section 206AB & 206CCA. Specified person means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income under Section 139(1) has expire.....

Sep 21, 2021

Master Circular for Commodity Derivatives Market

SEBI vide Master Circular no. SEBI/HO/CDMRD/DMP/P/CIR/2021/589 dated 1st July, 2021 has issued Master Circular for Commodity Derivatives Market. Commodity Derivatives Market Regulation Department (CDMRD) also has been issuing a Master circular comprising of information mentioned in various circulars pertaining to commodity derivatives segment. The master circular can be referred through the following link:   <a href="https://www.sebi.gov.in/legal/master-circulars/jul-2021/master-circular-for-commodity-derivatives-m.....

Sep 21, 2021

Master Circular for Stock Exchange and Clearing Corporations

SEBI vide Master circular No. SEBI/HO/MRD2/MRD2_DCAP/P/CIR/2021/0000000591 dated 5th July, 2021 has issued master circular for Stock Exchange and Clearing Corporations. The Master Circular is a compilation of all the existing/applicable circulars issued by Market Regulation Department of SEBI to Stock Exchanges and Clearing Corporations. The master circular can be referred through the following link:   <a href="https://www.sebi.gov.in/legal/master-circulars/jul-2021/master-circular-for-stock-exchanges-and-clearing-.....

Sep 21, 2021

Prudential norms for liquidity risk management for open ended debt schemes

SEBI vide Circular No. EBI/HO/IMD/DF3/CIR/P/2020/22 dated 25th June, 2021 has specified norms regarding holding of liquid assets in open ended debt schemes & stress testing of open ended debt schemes. i. This framework specified by AMFI(Association of Mutual Funds in India) shall come into force with effect from December 1, 2021, for all the existing open ended debt schemes (except Overnight Fund, Gilt Fund and Gilt Fund with 10 year constant duration) and schemes to be launched on or thereafter. ii. However, mutual funds may at their discretion, choose to .....

Sep 21, 2021

Clarification on extension of time of passing of ordinary and special resolutions by companies on account of Covid-19

MCA vide Circular No. 10/2021 dated 23th June, 2021 has clarified that companies can conduct their EGMs through VC or OAVM or transact items through postal ballot in accordance with the framework provided upto 31st December, 2021.   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MjA1NTg=&docCategory=NotificationsAndCirculars&type=download">https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MjA1NTg=&docCategory=NotificationsAndCirculars&type=download</a> .....

Sep 21, 2021

Relaxation on levy of additional fees in filing of certain forms under Companies act, 2013 and LLP act, 2008

MCA vide Circular No. 11/2021 dated 30th June, 2021 has notified that no additional fees shall be levied upto 31st August, 2021 for the delayed filing of forms (other than CHG-1 Form, CHG-4 Form and CHG-9 Form) which were due for filing during 1st April, 2021 to 30th June, 2021. For such delayed filings upto 31st August, 2021 only normal fees shall be payable.   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MjE2OTA=&docCategory=NotificationsAndCirculars&type=download">https://www.mca.gov.in/bin/.....

Sep 21, 2021

Where Public Charitable Trust, doing educational services, gave donations to charitable and religious institutions for philanthropy only, exemption under section 11 cannot be denied merely because it was donating to 'activities other than education'

<ul><li>vide Decision of High Court of Madras in Director of Income Tax Exemptions, Chennai v. Shanmuga Arts</li></ul>   Facts of the case: 1. The respondent(assessee) is a Trust registered under section 12AA of the Income-tax Act, 1961. The Trust had filed the return of income for assessment year 2007-2008 on 2-11-2007 for Rs. 60,76,26,276/- and claiming exemption for Rs. 6,65,60,886/- being the amount of donation made by it under section 11 of the Act.   2. The Assessing Officer had.....

Sep 22, 2021

Reversal of input tax credit (ITC) by revenue in case of loss by consumption of input which was inherent to manufacturing loss was not correct as such loss was not contemplated or covered by situations represented under section 17(5)(h)

<ul><li>vide decision of High Court of Madras in ARS Steels & Alloy International (P.) Ltd. v. State Tax Officer, Group-I, Chennai</li></ul>   Facts of the case:   <ol><li>The petitioners are engaged in the manufacture of MS Billets and Ingots. MS scrap is an input in the manufacture of MS Billets and the latter, in turn, constitutes an input for manufacture of TMT/CTD Bars.</li><li>There is a loss of a small portion of the inputs, inherent to the manufacturing process. Th.....

Sep 22, 2021

Applicability and Due date for filing Annual Returns for FY 2020-21 under CGST Act, 2017

GST vide Circular No. 30/2021 dated 30th July, 2021 has mentioned the applicability and due date for filing Annual Returns for FY 2020-21.   i.Every Registered Person except the persons mentioned in the act whose aggregate turnover in the FY 2020-21 exceeds Rs. 2 crores are required to file Form GSTR-9 electronically on or before 31st December, 2021.   ii.Every Registered Person except the persons mentioned in the act whose aggregate turnover in the FY 2020-2.....

Sep 22, 2021

Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions – 2021

RBI vide notification No. RBI/2021-22/80 dated 20th July, 2021 has issued Master Direction for Cash Reserve Ratio(CRR) and Statutory Liquidity Ratio(SLR). The provisions of these Directions shall be applicable to all Scheduled Commercial Banks(including Regional Rural Banks), Small Finance Banks, Payments Banks, Local Area Banks, Primary (Urban) Co-operative Banks (UCBs), State Co-operative Banks and District Central Co-operative Banks (DCCBs).   https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12131&Mod.....

Sep 22, 2021

Guidelines for Implementation of the Opening of Current Accounts by Banks

RBI vide Notification no. RBI/2021-22/77 dated 4th August, 2021 has issued instructions in order to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders. i. In case of borrowers who have not availed of CC/OD facility from any bank, there is no restriction on opening of current accounts by any bank if exposure of the banking system to such borrowers is less than ₹5 crore. ii. In case of borrowers who have not availed of CC/OD facility from any bank and the exposure of the banking system is ₹5 crore or more.....

Sep 22, 2021

Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF) - Extension of Relaxation

RBI vide Notification No. RBI/2021-22/82 dated 9th August, 2021 has notified the extension of Relaxation for maintenance of Statutory Liquidity Ratio(SLR)- Marginal Standing Facility(MSF) i. The banks were allowed to avail of funds under the MSF by dipping into the Statutory Liquidity Ratio (SLR) up to an additional one per cent of their net demand and time liabilities (NDTL), i.e., cumulatively up to three per cent of NDTL. ii. This facility, which was initially available up to June 30, 2020, was later extended in phases up to September 30, 2021, providing co.....

Sep 22, 2021

Extension of time lines for electronic filing of various Forms under the Income-tax Act,1961

Income tax vide Circular No. 15/2021 dated 3rd August, 2021 has notified extension of various timelines under the Income-tax Act, 1961. i. The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021 , required to be furnished on or before 31st July, 2021 may be filed on or before 31st August, 2021. ii. The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 31.....

Sep 22, 2021

Tendering of shares in open offers, buy-back offers and delisting offers by marking lien in the Demat account of the shareholders.

SEBI vide Circular no. SEBI/HO/CFD/DCR-III/CIR/P/2021/615 dated 13th August, 2021 has issued Circular related to lien of shares tendering. i. Under the existing mechanism, the shares tendered by the shareholders are required to be directly transferred to the account maintained by the Clearing Corporation and different tendering processes are being adopted by Depositories. Such transfer involves systematic risk, substantial time and cost. ii. In consultation with Depositories, Clearing Corporations and Stock Exchanges, it has been decided that a lien shall b.....

Sep 22, 2021

Requirement of minimum number and holding of unit holders for unlisted Infrastructure Investment Trusts (InvITs)

SEBI vide Circular No. SEBI/HO/DDHS/DDHS_Div3/P/CIR/2021/611 dated 4th August, 2021 has clarified that Registered unlisted InvITs which have already issued units as on the date of this circular, shall comply with the provisions of sub-regulation (3) of Regulation 26B of the InvIT Regulations within a period of six months from the date of this circular.   <a href="https://www.sebi.gov.in/legal/circulars/aug-2021/requirement-of-minimum-number-and-holding-of-unit-holders-for-unlisted-infrastructure-investment-trusts-invit.....

Sep 22, 2021

Holding of Annual General Meeting (AGM) by top 100 listed entities by market capitalization

SEBI vide Circular No. SEBI/HO/CFD/CMD1/P/CIR/2021/602 dated 23rd July, 2021 has extended the time period for holding an AGM of Top 100 listed entities by market capitalization. Earlier, Top 100 listed entities by market capitalization were instructed to hold their AGM within a period of five months from the date of closing of the financial year. It has been decided to extend the timeline for conduct of AGM by top-100 listed entities by market capitalization. Accordingly, such entities shall hold their AGM within a period of six months from the date of closing .....

Sep 22, 2021

Clarification on spending of CSR Funds for Covid-19 Vaccination

MCA vide Circular No. 13/2021 dated 20th July, 2021 has clarified that spending of CSR funds for COVID-19 vaccination for persons other than the employees of the company and their families, is an eligible CSR activity under item no. (i) of Schedule VII of the Companies Act, 2013 relating to promotion of healthcare including preventive healthcare and item no. (xii) relating to disaster management.   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MzEwMTU=&docCategory=Circulars&type=open">https://ww.....

Sep 22, 2021

Filing of Form CIRP 8 under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

IBBI vide Circular No. IBBI/CIRP/42/2021 dated 20th July, 2021 has notified the resolution professional to file Form CIRP 8 intimating details of his opinion and determination under Regulation 35A, by 140th day of the insolvency commencement date. The Form CIRP 8 is required to be filed for all corporate insolvency resolution processes ongoing or commencing on or after 14th July 2021.   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MjE2OTA=&docCategory=NotificationsAndCirculars&type=download.....

Sep 22, 2021

No assessee can be compelled to continue any exemption, if it intends not to avail same. It is always open for an assessee to arrange its affairs in a manner which it feels it would be beneficial, and it cannot be compelled to continue its operations/activities in a particular manner which would be prejudicial to its interest.

<ul><li>vide Decision of High Court of Telangana in Telangana State Pollution Control Board, Hyderabad v. Central Board of Direct Taxes, New Delhi</li><li></li></ul>   Facts of the case:   1. The Telangana State Pollution Control Board (for short 'TSPCB') is the petitioner constituted by the State Government under section 4 of Water (Prevention and Control of Pollution) Act, 1974 and Section 5 of the Air (Prevention and Control of Pollution) Act, 1981.  <!-.....

Sep 22, 2021

No Tax demand can be issued or raised without issuing notice under section 74(1) of the Act

<ul><li>vide decision of High Court of Telangana in Deem Distributors (P.) Ltd. v. Union of India</li></ul>   Facts of the case:   <ol><li>The petitioner is a partnership firm and is registered under the Telangana GST Act, 2017, CGST Act, 2017 and IGST Act, 2017 and is involved in the business of dealing in goods and services relating to Ferrous waste and scrap, re-melting scrap ingots of iron or steel, flat rolled products of iron or non-alloy steel of a width of 600 mm or ho.....

Sep 22, 2021

Waiver of Late fee for filing Form GSTR-3B under CGST Act, 2017- extended upto 30th November, 2021

GST vide Notification No. 33/2021 dated 29th August, 2021 has waived the late fee for filing Form GSTR-3B. i. Registered persons who failed to furnish Form GSTR-3B for the months /quarter of July, 2017 to April, 2021 by the due date but furnish the said return between the period from the 1st June, 2021 to 30th November, 2021, the total amount of late fee under section 47 of the said Act, shall stand waived which is in excess of five hundred rupees. ii. In case where tax payable is Nil, the total amount of late fee under section 47 of the said Act, shall stand w.....

Sep 22, 2021

Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021

RBI vide notification No. RBI/2021-22/81 dated 25th August, 2021 has issued Master Direction for Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021. To enable banks to have current instructions at one place, a Master Direction incorporating all the existing guidelines / instructions / directives on the subject has been prepared for reference of the banks.   https://www.rbi.org.in/Scripts/NotificationUs er.aspx?Id=12153&Mode=0#CHP10 <!-- /wp:paragraph -.....

Sep 22, 2021

Master Direction on Financial Statements - Presentation and Disclosures

RBI vide Notification no. RBI/2021-22/83 dated 30th August, 2021 has issued Master Direction to Banks on Financial Statements- Presentation and Disclosures. The Master Direction can be referred through the following link:   https://www.rbi.org.in/Scripts/NotificationUs er.aspx?Id=12158&Mode=0#F1 .....

Sep 22, 2021

Credit Risk Mitigation (CRM) for offsetting – non-centrally cleared derivative transactions of foreign bank branches in India with their Head Office

RBI vide Notification No. RBI/2021-22/97 dated 9th September, 2021 has issued notification for offsetting non-centrally cleared derivative transactions of foreign bank branches in India with their Head Office under CRM. The Indian branches of foreign banks shall be permitted to reckon cash/ unencumbered approved securities, the source of which is interest-free funds from Head Office or remittable surplus retained in Indian books (reserves), held with RBI as CRM, for offsetting the gross exposure of the foreign ban.....

Sep 22, 2021

Extension of time lines for electronic filing of various Forms under the Income-tax Act,1961

Income tax vide Circular No. 17/2021 dated 9th September, 2021 has notified extension of various timelines under the Income-tax Act, 1961. i. The due date of furnishing of Return of Income for AY 2021-22, which is 31st July 2021 under Section 139(1) of the Act, is further extended to 31st December 2021. ii. The due date of furnishing of Audit Report under the Act for PY 2020-21, which is 30th September 2021, is further extended to 15th January,2022. iii. The due date of furnishing Report from an Accountant by persons entering into international transact.....

Sep 22, 2021

Extension of Due date for Declaration in respect of Tax Arrears- extended till 30th September, 2021

Income tax vide Circular No. 94/2021 dated 31st August, 2021 has notified the last date for declaration to designated authority about the tax arrears under Direct Tax Vivad se Vishwas Act, 2020. The new date shall be 30th September, 2021 in place of 31st August, 2021.   <a href="https://www.incometaxindia.gov.in/communications/notification/notification_94_2021.pdf">https://www.incometaxindia.gov.in/communications/notification/notification_94_2021.pdf</a> .....

Sep 22, 2021

Tendering of shares in open offers, buy-back offers and delisting offers by marking lien in the Demat account of the shareholders- disclosure to investors

SEBI vide Circular No. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/621 dated August 31st, 2021 has mandated mutual funds to disclose the following to the investors in which the unit holders are invested as on the date on which the disclosures are stipulated: i. risk-o-meter of the scheme and the benchmark along with the performance disclosure of the scheme vis-à-vis benchmark and ii. details of the portfolio while communicating the fortnightly, monthly and half-yearly statement of scheme portfolio via email.   <a href=.....

Sep 22, 2021

Introduction of T+1 rolling settlement on an optional basis – w.e.f 1st January, 2022

SEBI vide Circular No. SEBI/HO/MRD2/DCAP/P/CIR/2021/628 dated 7th September, 2021 has introduced T+1 rolling settlement on an optional basis. i. SEBI has been receiving request from various stakeholders to further shorten the settlement cycle. Based on discussions with Market Infrastructure Institutions (Stock Exchanges, Clearing Corporations and Depositories), it has been decided to provide flexibility to Stock Exchanges to offer either T+1 or T+2 settlement cycle. ii. Accordingly, a Stock Exchange may choose to offer T+1 settlement cycle on any of the scr.....

Sep 22, 2021

Clarifications on Corporate Social Responsibility(CSR)- FAQs

MCA vide Circular No. 14/2021 dated 25th August, 2021 has issued clarifications including FAQs( Frequently Asked Questions) relation to Corporate Social Responsibility(CSR).   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MzU0NzM=&docCategory=Circulars&type=open">https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MzU0NzM=&docCategory=Circulars&type=open</a> .....

Sep 22, 2021

- Act: The Income Tax Act ,1961 When there are no findings that a trust is established with a clear motive of earning profits, the assessee cannot be rejected for registration under Section 12AA

<ul><li>vide Decision of High Court of Madras in Commissioner of Income Tax, Salem v. Angels Educational Trust</li></ul>   Facts of the case:   1. The assessee is a Trust established for educational purposes and principle object of the Trust was to run an educational institution to provide education and award scholarships to poor and deserving students and to assist them in any manner of their study, research or apprenticeship.   2. .....

Sep 22, 2021

- Act: Central Goods and Services Act, 2017 Assessee filed declaration in time for transitioning credit of earlier laws to GST but said credit was not transitioned in assessee's electronic credit ledger due to technical glitches in the GST Portal. GST Officer was directed to give transition of Credit claimed by assessee into assessee's electronic credit ledger in Form GST PMT-2

<ul><li>vide decision of High Court of Telangana in BMW India Financial Services (P.) Ltd. v. Union of India</li></ul>   Facts of the case:   <ol><li>The petitioner is into the business of non-banking financial company engaged in financing automobiles in the form of loans and financial leases to its customer and has operations in 14 States across India, including in the State of Telangana.</li><li>For the purposes of carrying on business in the State of Telangana, the petition.....

Oct 20, 2021

Addition of new entries under Reverse Charge Mechanism under the CGST Act, 2017

GST vide Notification No. 10/2021 dated 30th September, 2021 has added essential oils other than those of citrus fruit namely: - i) Of peppermint (Menthapiperita); ii)Of other mints: Spearmint oil (ex-menthaspicata), Water mint-oil (ex-menthaaquatic), Horsemint oil (ex-menthasylvestries), Bergament oil (ex-mentha citrate) under Reverse Charge Mechanism supplied by unregistered person to registered person.   <a href="https://cbic-gst.gov.in/pdf/central-tax-rate/notfctn-10-2021-cgst-rate.pdf">https://cbic.....

Oct 20, 2021

Priority Sector Lending- Banks lending to NBFCs for on-lending – Extension of facility till 31st March, 2022

RBI vide notification No. RBI/2021-22/110 dated 8th October, 2021 has issued notification for extension of on-lending facility to NBFCs under Priority Sector Lending(PSL). keeping in view the increased traction observed in delivering credit to the underserved segments of the economy, the facility has been extended from 30th September, 2021 till March 31, 2022. Loans disbursed under the on-lending model will continue to be classified under Priority Sector till the date of repayment/maturity whichever is earlier.   .....

Oct 20, 2021

Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

RBI vide Notification no. RBI/2021-2022/104 dated 1st October, 2021 has issued Master Direction to Banks on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances. In line with the international practices and as per the recommendations made by the Committee on the Financial System, the Reserve Bank of India has introduced prudential norms for income recognition, asset classification and provisioning for the advances portfolio of the banks. The Master Direction can be referred through the following link: https://.....

Oct 20, 2021

Use of any Alternative reference rate in place of LIBOR( Libor Interbank Offered Rate) for interest payable in respect of export/import transactions

RBI vide Notification No. RBI/2021-22/101 dated 28th September, 2021 has issued notification for use of any Alternative reference rate in place of LIBOR for interest payable in respect of export / import transactions. In view of the impending cessation of LIBOR as a benchmark rate, it has been decided to permit AD banks to use any other widely accepted/Alternative reference rate in the currency concerned for such transactions. All other instructions in this regard shall remain unchanged.   <a href="https://www.rbi......

Oct 20, 2021

Rate of interest on Government of India Floating Rate Bonds, 2033

RBI vide Press Release No. 2021-2022/900 has notified that the rate of interest on Government of India Floating Rate Bonds, 2033 (GOI FRB 2033) applicable for the half year September 22, 2021 to March 21, 2022 shall be 4.62 percent per annum.   <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52264">https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52264</a> .....

Oct 20, 2021

Income-tax (31st Amendment) Rules, 2021- Rule 11UE of the Income Tax Rules, 1962- relating to Retrospective Taxation which shall not be relevant to apply on ‘Indirect Transfer’ of assets

Income tax vide Notification No.118/2021 dated 1st October, 2021 has Notified about the Rule 11UE of the Income Tax Rules, 1962 relating to Retrospective Taxation which shall not be relevant to apply on ‘Indirect Transfer’ of assets located in India prior to 28th May 2012. The Rule specifies that no tax demand shall be raised on the basis of an amendment to Section 9 of Income-tax Act, 1961 vide Finance Act, 2012 for any offshore indirect transfer of Indian assets before 28-05-2012, the date when Finance Act, 2012 was enacted. Explanation 5 to Section 9 .....

Oct 20, 2021

Manner of furnishing undertaking under rule 11UE- Rule 11UF of the Income Tax Rules, 1962- relating to Retrospective Taxation which shall not be relevant to apply on ‘Indirect Transfer’ of assets

Income tax vide Notification No.118/2021 dated 1st October, 2021 has Notified about the Rule 11UF of the Income Tax Rules, 1962 relating to Manner of furnishing undertaking under Rule 11UE. i. The undertaking in Form No. 1 under sub-rule (1) of rule 11UE shall be submitted by the declarant to the jurisdictional Principal Commissioner or Commissioner within forty-five days from the date of commencement of the Income-tax (31st Amendment) Rules, 2021. ii. After the undertaking in Form No. 1 under sub- rule (1) of rule 11UE is furnished by the declarant, the ju.....

Oct 20, 2021

Streamlining issuance of SCORES( SEBI Complaints Redress System) Authentication- for companies intending to list their securities on SEBI recognized stock exchanges

SEBI vide Circular No. SEBI/HO/OIAE/IGRD/CIR/P/2021/642 dated 14th October, 2021 has now decided to introduce an online mechanism for obtaining SCORES credentials for all companies intending to list their securities on SEBI recognized stock exchanges. This has been done as part to streamline the redressal of investor grievances against companies before listing.   <a href="https://www.sebi.gov.in/legal/circulars/oct-2021/streamlining-of-issuance-of-scores-authentication_53291.html">https://www.sebi.gov.in/legal/circ.....

Oct 20, 2021

Extension of due date of filing of Cost Audit Report to the Board of Directors of the Companies- extended till 31st October, 2021

MCA vide Circular No. 15/2021 dated 27th September, 2021 has extended the due date of submission of Cost Audit Report to the Board of Directors till 31st October, 2021. Consequently, the cost audit report shall be filed in Form CRA-4 within 30 days of receipt of cost audit report by the company.   <a href="https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MzcxOTk=&docCategory=Circulars&type=open">https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MzcxOTk=&docCategory=Circulars&type=open</a>.....

Oct 20, 2021

Since chance of getting a personal hearing is part and parcel of principles of natural justice, such a chance can be given to assessee even after assessment order was passed in Faceless Assessment scheme by making addition under section 68

vide Decision of High Court of Madras in Nagalinga Nadar. M.M. v. Additional Commissioner of Income-tax, Income-tax Department   Facts of the case:   1. The petitioner is a Firm and engaged in business of purchase and sale of edible oil as a trader. It had filed return of income on 20.09.2018 for the Assessment Year 2018-19, declaring the total income of Rs.16,400/-.   2. The revenue, thought of selecting the case fo.....

Oct 20, 2021

Electronic Credit Ledger (ECL) could not be debited for purposes of making payment of pre-deposit of tax.

Act: Central Goods and Services Act, 2017   Facts of the case:   <ol><li>The Petitioner is a partnership firm engaged in the business of execution of works contract including civil, electrical and mechanical.</li><li>In the instant case, a demand was raised by the Deputy Commissioner of CT & GST, Barbil Circle, Jajpur, Odisha which resulted in an extra demand for IGST, CGST and OGST inclusive of interest. An appeal was filed in Form-GST APL-01 before t.....

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