January 2019January 2019January 2019January 2019

Lunawat Bulletin

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Compliance Due Dates

2

Income Tax/ MCA

3

GST / RBI 4

Lunawat Update 5

Public sector banks' provision coverage ratio -- which measures the provi-sioning for bad loans -- has gone up from less than 50 per cent in 2015 to 66.85 per cent as of September 2018, reflecting im-provement 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 ris-en steeply from 46.04 per cent as of March 2015 to 66.85 per cent as of Sep-tember 2018, giving banks cushion to absorb losses,"

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

The government wants a fresh exami-nation 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 Pub-lic Asset Management (DIPAM) has asked the Department of Financial Ser-vices (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.

Government wants a fresh review of planned merger of state

-run insurance companies

Page 2

Lunawat Bulletin

Compliance Due Dates

Due Date Related to Particulars

07.01.2019 (Monday)

TDS/TCS (Income Tax)

• Deposit Tax deducted/collected during the month of December 2018 for all corporate assessees.

10.01.2019 (Thursday)

GST • GSTR-8 for E-Commerce operator for December 2018.

11.01.2019 (Friday)

GST • Last date of filing GSTR-1(Persons having Aggregate Turnover more than Rs 1.5 crore).

13.01.2019 (Sunday)

GST • GSTR-6 for Input Service Distributor of December 2018.

14.01.2019 (Monday)

TDS/TCS (Income Tax)

• Due date for issue of TDS Certificate for tax deducted under Section 194-IA/IB in the month of November, 2018.

15.01.2019 (Tuesday)

TDS/TCS (Income Tax)

• 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

18.01.2019 (Friday)

GST • GSTR-4 Quarterly return for composition dealer from Oct-Dec 2018.

20.01.2019 (Sunday)

GST • Due Date of filing of GSTR-3B for the month of December 2018. • Due Date of filing of GSTR-5 & GSTR-5A of December 2018.

30.01.2019 Wednesday

TDS/TCS (Income Tax)

• Last date of furnishing challan-cum-statement in respect of tax deduct-ed under section 194IA in the month of December 2018.

31.01.2019 (Thursday)

TDS/TCS (Income Tax)

• Quarterly statement of TDS deposited for the quarter ending December 31, 2018

31.01.2019 (Thursday)

GST • Last date of filing GSTR-1 (Oct-Dec, 2018) Quarterly return for regis-tered persons with aggregate turnover up to Rs. 1.50 Crores

• Due Date of filing of GSTR-7 of November 2018.

DATE DAY REGARDING

14.01.2019 Monday Makar Sankranti

22.01.2019 Tuesday Basant Panchami

26.01.2019 Saturday Republic Day

Page 3

January 2019

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 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 cer-tain exceptions, modifications and adaptation for converted Indian subsidiary company in pro-vision 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.

Applicability of provisions of Section

115JG(1) are subject to conditions as

specified by CBDT

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.

Income Tax

Corporate Law

1. MCA again amends Incorporation Rules w.e.f. 18th December 2018 .

2. MCA amends Form CHG-4 . 3. 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 2018 .

5. 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 2018 .

CBDT Directive Regarding Assessment Of Fraud Cases (SOP)

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, 2019.

2. 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 De-

lay 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 2018.

4. 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 enti-

ty of an international group, resident in India, u/

s 286(4).

Page 4

January 2019

GST

Recommendations made during 31st Meeting of the GST Council

• The due date for furnishing the annual re-turns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019.

• The due date for submitting FORM GST

ITC-04 for the period July 2017 to Decem-ber 2018 shall be extended till 31.03.2019.

• 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 31.01.2019.

• 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 22.12.2018 but on or before 31.03.2019.

• Extending the Composition scheme to small

service providers. The rate of tax and threshold limit to be proposed - Law Com-mittee 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 implement-ing 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, 2019. Banks/FIs are also advised to file the current charges relating to all transac-tions with CERSAI on an ongoing basis.

• RBI prescribes borrowing and lending regula-

tions as per Foreign Exchange Management (Borrowing and Lending) Regulations, 2018

• Government of India has amended the operation-

al guidelines of Self-Employment Programme (SEP) under DAY-NULM..

• Interest rates for SDS 1975 are available in Gov-

ernment of India website viz. egazette.nic.in • As announced in the Statement on Developmen-

tal and Regulatory Policies on December 05, 2018, it has been decided to reduce the SLR re-quirement of banks by 25 basis points every cal-endar quarter from 19.50 per cent of their Net Demand and Time Liabilities (NDTL) to

(i) 19.25 per cent from January 5, 2019

(ii) 19.00 per cent from April 13, 2019 (iii) 18.75 per cent from July 6, 2019 (iv) 18.50 per cent from October 12, 2019 (v) 18.25 per cent from January 4, 2020 (vi) 18.00 per cent from April 11, 2020.

January 2019

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•“GST Audit” at Shastri Nagar CPE Study Circle of

NIRC of ICAI