January Provision coverage ratio of PSU banks on the rise, crosses 66%

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1 Lunawat Bulletin Market Watch Sensex Nifty Inside.. Compliance Due Dates Income Tax/ MCA 2 3 GST / RBI 4 Lunawat Update 5 Provision coverage ratio of PSU banks on the rise, crosses 66% Public sector banks' provision coverage ratio -- which measures the provisioning for bad loans -- has gone up from less than 50 per cent in 2015 to per cent as of September 2018, reflecting improvement in their financial health.the provision coverage ratio (PCR) gives an indication of the provision made against bad loans from the profit generated. Higher the PCR, lower is the unexposed part of the bad debts. "The PCR of public sector banks has risen steeply from per cent as of March 2015 to per cent as of September 2018, giving banks cushion to absorb losses," Government wants a fresh review of planned merger of state -run insurance companies The government wants a fresh examination of the proposed merger of three state-run insurance companies, a step which means that the final decision will be taken by the new government which assumes office after the 2019 polls. The Department of Investment and Public Asset Management (DIPAM) has asked the Department of Financial Services (DFS) to get the issue of merger of three state-owned insurance companies examined and prepare a fresh roadmap. There is a view within the government that the issue needs to be thoroughly examined before rushing into a merger. Lunawat & Co. Chartered Accountants For Private Circulation Only

2 Lunawat Bulletin Compliance Due Dates Due Date Related to Particulars (Monday) (Friday) (Sunday) (Monday) (Tuesday) (Friday) (Sunday) Wednesday Deposit Tax deducted/collected during the month of December 2018 for all corporate assessees. GST GSTR-8 for E-Commerce operator for December GST Last date of filing GSTR-1(Persons having Aggregate Turnover more than Rs 1.5 crore). GST GSTR-6 for Input Service Distributor of December Due date for issue of TDS Certificate for tax deducted under Section 194-IA/IB in the month of November, Quarterly statement of TCS deposited for the quarter ending December 31, 2018 Due date for furnishing of Form 15G/15H declarations received during the quarter ending December, 2018 GST GSTR-4 Quarterly return for composition dealer from Oct-Dec GST Due Date of filing of GSTR-3B for the month of December Due Date of filing of GSTR-5 & GSTR-5A of December Last date of furnishing challan-cum-statement in respect of tax deducted under section 194IA in the month of December Quarterly statement of TDS deposited for the quarter ending December 31, 2018 GST Last date of filing GSTR-1 (Oct-Dec, 2018) Quarterly return for registered persons with aggregate turnover up to Rs Crores Due Date of filing of GSTR-7 of November DATE DAY REGARDING Monday Makar Sankranti Tuesday Basant Panchami Saturday Republic Day Page 2

3 CBDT Directive Regarding Assessment Of Fraud Cases (SOP) The CBDT has issued Instruction No. 10 dated 6th December 2018 by which it has specified the Standard Operating Procedure (SOP) that has to be followed by Assessing Officers when dealing with ITR Processing or Assessment in suspected Fraud cases. CBDT Directive Regarding Department Appeals In High Courts. The CBDT has issued a directive dated 7th December 2018 in which it has issued important directives regarding non-removal/delay in removal of defects of pending appeals before Hon ble High Courts. It is made clear that the PCIT/CIT is personally responsible to ensure proper filing of appeals in High Courts & consequential follow up action. They have been warned that any lapse in this regard will be viewed seriously. Applicability of provisions of Section 115JG(1) are subject to conditions as specified by CBDT Income Tax Other Important CBDT Updates 1. CBDT allows manual filing lower TDS certificate applications in Form 13 u/s 197 and 206C(9) till 31st March, CBDT issues notification that no TDS be made u/s 194A on interest in case of senior citizens if the interest income does not exceed Rs. 50,000/- 3. CBDT issues Circular on Condonation of Delay in Filing Forms 9A &10 By Charitable Trusts via Of Delay In Filing Forms 9A &10 by Charitable Trusts vide Circular No. 7 / 2018 dated 20th December CBDT Busts Bogus Donation Racket U/s 35(1) (ii).all Donors to be Investigated 5. CBDT bails out Start-Ups & Angel Funds from Tax Terrorism of AOs. 6. CBDT amends Rule 10DB to provide the time limit for furnishing of report by constituent entity of an international group, resident in India, u/ s 286(4). CBDT notified certain conditions for the applicability of provisions specified in section 115JG (1) regarding conversion of Indian branch of foreign company engaged in the business of banking in India into its subsidiary company. CBDT also notified certain exceptions, modifications and adaptation for converted Indian subsidiary company in provision of the Income Tax Act relating to unabsorbed depreciation, set off or carry forward and set off of losses, tax credit in respect of tax paid on deemed income of that Indian subsidiary company. Corporate Law 1. MCA again amends Incorporation Rules w.e.f. 18th December MCA amends Form CHG MCA extends due date of filing NFRA 1 to 30 days from deployment of the Form on MCA website. 4. MCA extends Last Date for filing Form CRA 4 (Cost Audit Report in XBRL Format) without additional Fee till 31st December ROC, Kolkata issues notice u/s 75 of LLP Act 2008 for strike off of 147 LLPs. 6. MCA amends Cost Records and Audit Rules - 3rd December Page 3

4 GST Recommendations made during 31st Meeting of the GST Council The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year shall be further extended till The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till The following types of refunds shall also be made available through FORM GST RFD01A: i) Refund on account of Assessment/ Provisional Assessment/Appeal/Any Other Order; ii) Tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice-versa; iii) Excess payment of Tax and iv) Any other refund. Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after but on or before Extending the Composition scheme to small service providers. The rate of tax and threshold limit to be proposed - Law Committee and Fitment Committee. Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger. The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly. RBI Banks/FIs are advised to complete filing the charges pertaining to subsisting transactions by March 31, Banks/FIs are also advised to file the current charges relating to all transactions with CERSAI on an ongoing basis. RBI prescribes borrowing and lending regulations as per Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 Government of India has amended the operational guidelines of Self-Employment Programme (SEP) under DAY-NULM.. Interest rates for SDS 1975 are available in Government of India website viz. egazette.nic.in As announced in the Statement on Developmental and Regulatory Policies on December 05, 2018, it has been decided to reduce the SLR requirement of banks by 25 basis points every calendar quarter from per cent of their Net Demand and Time Liabilities (NDTL) to (i) per cent from January 5, 2019 (ii) per cent from April 13, 2019 (iii) per cent from July 6, 2019 (iv) per cent from October 12, 2019 (v) per cent from January 4, 2020 (vi) per cent from April 11, Page 4

5 Presentations During December 2018, CA Rajesh Saluja gave following presentations: GST Audit at Shastri Nagar CPE Study Circle of NIRC of ICAI Lunawat Update We may be contacted at: Daryaganj, New Delhi 54, Daryaganj, New Delhi Tel: dgoffice@lunawat.com Paschim Vihar, New Delhi A-2/132, Prateek Apartments, Paschim Vihar, New Delhi Tel: pvoffice@Lunawat.com Karampura, New Delhi 109, Magnum House-1, Karampura Complex, New Delhi Tel: karampura@lunawat.com Disclaimer Mumbai No. J/ 7, First Floor, Mangal Kunj, Opp. Jain Derasar, Jambali Gali, Borivali (W) Mumbai Tel: mumbai@lunawat.com Keshopur, New Delhi WZ-339, 2nd Floor, Street No. 19, Santgarh, Keshopur, Outer Ring Road, New Delhi Tel: Fax: keshopur@lunawat.com We also have ASSOCIATES at : Amritsar, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Cochin, Jaipur, Jodhpur, Indore, Chandigarh, Panipat, Jalandhar, Allahabad, Lucknow, Pune, Bharatpur, Ranchi, Ludhiana, Ambala, Lucknow, Agra, Baroda, and Ghaziabad Our Services Audit and Assurance International Taxation Indian Direct Tax Laws Goods and Service tax (GST) Corporate Laws Limited Liability Partnership (LLP) NGOs/Societies and Trusts Insolvency Professionals Compliance Audits Investigations Outsourcing Services Setting up Business in India Consulting Services Trainings Valuations XBRL Trade Marks 2019 Lunawat & Co. All Rights Reserved Information in this document is intended to provide only a general outline of the subjects covered. We recommend that you seek professional advice prior to initiating action on specific issues. Lunawat & Co. does not take any responsibility for any loss arising from any action taken or not taken by anyone using this Editorial Team: CA. Vikas Yadav, Diksha Agarwal, Priyanka Wadhwa, Monika, Rashika Ahuja, Srishti Jain & Shashikant Page 5