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Declaration of GSTIN mandatory in Import/Export documents
w.e.f. 15th February, 2020
Certain cases have been reported where the importer or exporter did not declare their
GSTIN in the Bill of Entry/Shipping Bill despite being registered with GSTN. With effect
from 15.02.2020, the declaration of GSTIN shall also be mandatory in import/export
documents for the importers and exporters registered as GST taxpayers.
February, 2020)
1. SEBI based on the recommendations of a Working Group and inputs from public consultation, reviewed
the framework for regulation of Portfolio Managers and the SEBI (Portfolio Managers) Regulations,
2020(“PMS Regulations”)has been notified on January 16, 2020.
2. In addition to the above, certain changes to the regulatory framework for Portfolio Managers have been
mandated, as under:
3. In partial modification to Cir. /IMD/DF/13/2010 dated October 05, 2010 on Regulation of Fees and
Charges, the following is mandated:
(i) As provided in Regulation 22 (11)of the PMS Regulations, no upfront fees shall be
charged by the Portfolio Managers, either directly or indirectly, to the clients.
(ii) Brokerage at actuals shall be charged to clients as expense.
(iii) Operating expenses excluding brokerage, over and above the fees charged for Portfolio
Management Service, shall not exceed 0.50% per annum of the client’s average daily
Assets under Management (AUM).
(iv) In case client portfolio is redeemed in part or full, the exit load chargedshall be as under:
a) In the first year of investment, maximum of 3%of the amount redeemed.
b) In the second year of investment, maximum of 2%of the amount redeemed.
c) In the third year of investment, maximum of 1%oftheamount redeemed.
d)After a period of three years from the date of investment, no exit load.
4. The Circular further elaborates on Periodic reporting by Portfolio Managers, uniformity of investment
approaches, Direct on-boarding of clients by Portfolio Managers, Reporting of Performance by Portfolio
Managers, Reporting of Performance by Portfolio Managers, etc.
5. The provisions of this Circular shall be applicable with effect from May 01, 2020.
The Circular is available at: https://www.sebi.gov.in/…/guidelines-for…
(1A) of the Central Goods and Services Tax Rules, 2017 in certain cases
In exercise of the powers conferred by sub-rule (1A) of rule 117 of the Central Goods and Services
Tax Rules, 2017 read with Section 168 of the Central Goods and Services Tax Act, 2017 on the
recommendations of the Council, and in supersession of Order No. 01/2019-GST dated
31.01.2019, except as respects things done or omitted to be done before such supersession, the
Commissioner hereby extends the period for submitting the declaration in FORM GST TRAN-1
till 31st March, 2020, for the class of registered persons who could not submit the said
declaration by the due date on account of technical difficulties on the common portal and whose
cases have been recommended by the Council.
Source: http://www.cbic.gov.in/…/htdoc…/gst/order1-2020-cgst.pdf
Other updates related Tax
• PAN cards will be allotted instantly online soon with Aadhaar.
• Proposal to bring down litigation in direct taxation scheme; 4.83 lakh direct cases pending in various appellate forums.
• Vivad se Vishwas scheme for direct tax payers whose appeals are pending at various forum.
• Income Tax Act to be amended to allow faceless appeals against tax orders on lines of faceless assessment.
• Registration of charity institutions to be made completely electronic, donations made to be pre-filled in IT return form to claim exemptions for donations easily.
• Budget proposes deferment of tax payment by employees on ESOPs from startups by five years
• Government extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
• In a boost to MSMSEs, turnover threshold for audit raised to Rs 5 crore from Rs 1 crore
• Tax on Cooperative societies proposed to be reduced to 22 per cent plus surcharge and cess, as against 30 per cent.
For Individuals:
1. Income tax rates will be significantly reduced for those who forego reliefs, exemptions
Income between
1) Rs 5 to 7.5 lakh tax reduced from 20% to 10%
2) Rs 7.5 to 10 lakh tax reduced from 20% to 15%
3) Rs 10 to 12.5 lakh reduced from 30% to 20%
4) Rs 12.5 to 15 lakh reduced from 30% to 25%
5) Greater than 15 lakh, 30%
2. Income tax rates will not change for those earning above ₹15 lakh and they will continue paying 30%.
For Corporates:
3. Tax audit under section 44AB limit increased to 5 crore from 1 crore.
4. DDT (dividend distribution tax) to be removed. Dividend shall be taxed at the hands of the recipients.
No. SEBI/HO/MRD/DDAP/CIR/P/2020/16 (Dated 28
th January, 2020)
With reference to SEBI circulars dated June 07, 2016, February 23, 2017 and January 10, 2019, which, inter
alia, provides norms on composition of IPF Trust, and functions and composition of committees at MIIs,
SEBI has issued a circular wherein it is clarified that:
a. Norms for composition of IPF Trust, as provided in Clause 3(i) (4) of SEBI circular dated February 23,
2017, are uniformly applicable across Exchanges and Depositories.
b. The functions of IPF Trust, as prescribed in Clause 3(i) (4) of SEBI circular dated February 23, 2017,
shall be applicable only to Exchanges.
Depositories shall ensure compliance with these norms within three months from the date of this circular.
Additionally, with reference to Gazette notification dated June 04, 2019, amending SECC Regulations, 2018
and SEBI (D&P) Regulations, 2018, inter alia, in respect of names of committees at MIIs, it is clarified that
in SEBI circular dated January 10, 2019, read with circular dated February 15, 2019:
a. The name of “Investor grievance redressal committee” shall be read as “Grievance redressal
committee”.
b. The name of “Member selection committee” shall be read as “Member committee”.
The Circular is available at: https://www.sebi.gov.in/…/ipf-trust-and-committees…
SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 (Dated 27th January, 2020)
1. SEBI vide Circular CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and
SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated September 01, 2016 prescribed Risk Management Framework
for the Commodity Derivatives Segment (CDS). These circulars, inter alia, stipulated minimum value for Initial
Margin (IM) and Margin Period of Risk (MPOR).
2. CPSS-IOSCO Principles for Financial Market Infrastructure (PFMI) inter alia prescribes under Key
Considerations for Principle 6 on margin that margining model should to the extent practicable and prudent,
limit the need for destabilising, pro-cyclical changes.
3. It is further explained under Clause 3.6.10 of PFMI that:
a. Limiting procyclicality: A CCP should appropriately address pro-cyclicality in its margin
arrangements. In this context, pro-cyclicality typically refers to changes in risk management practices
that are positively correlated with market, business, or credit cycle fluctuations and that may cause or
exacerbate financial instability.
b. For example, in a period of rising price volatility or credit risk of participants, a CCP may require
additional initial margin for a given portfolio beyond the amount required by the current margin model.
This could exacerbate market stress and volatility further, resulting in additional margin requirements.
To support this objective, a CCP could consider increasing the size of its prefunded default arrangements
to limit the need and likelihood of large or unexpected margin calls in times of market stress. These
procedures may create additional costs for CCPs and their participants in periods of low market
volatility due to higher margin or prefunded default arrangement contributions, but they may also result
in additional protection and potentially less costly and less disruptive adjustments in periods of high
market volatility.
4. In light of the above and given the wide variation of liquidity and volatility among different commodity
derivatives, it has been decided, in consultation with stakeholders, to categorize commodities as per their
realized volatility and to prescribe floor values of IM and IMPOR depending upon their categories.
5. Accordingly, norms regarding Minimum IM and minimum MPOR for commodity derivatives segment stands
revised as per the framework mentioned in the circular. The norms on risk management prescribed vide circulars
referred to at Para ‘1’ above, which are not modified shall continue to prevail.
Initial categorisation of commodities as prescribed under Para ‘5’ of the circular shall be done and notified by
CCs within 15 days of the circular. The revised norms with regard to IM, MPOR and lean period margin may
be implemented by CCs in a phased manner and shall be fully implemented within a period of three months
from the date of the circular. The corresponding update in stress testing scenarios, if applicable, shall also be
done by CCs immediately after the circular is fully implemented.
The circular is available at: https://www.sebi.gov.in/…/review-of-margin-framework…
3. MERCHANTING TRADE TRANSACTIONS (MTT) – REVISED GUIDELINES – RBI/2019-20/152
A.P. (DIR Series) Circular No.20 (Dated 23rd January, 2020)
RBI has issued a circular containing directions issued under sections 10(4) and 11(1) of the Foreign Exchange
Management Act (FEMA), 1999 (42 of 1999) without prejudice to permissions / approvals, if any, required
under any other law wherein attention of Authorised Dealer Category-I banks (AD banks) is invited to A.P.
(DIR Series) Circular No.115 dated March 28, 2014 containing directions relating to merchanting trade
transactions.
With a view to further facilitate merchanting trade transactions, the existing guidelines have been reviewed and
the revised guidelines are being issued in supersession of the A.P. (DIR Series) Circular ibid.
The circular is available at: https://www.rbi.org.in/Scripts/NotificationUser.aspx…
(i) Stakeholders may please note that as part of Government of India’s Ease of Doing Business(EODB) initiatives, the Ministry of Corporate Affairs would be shortly notifying & deploying a new Web Form christened ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form.
(ii) SPICe+ would be an integrated Web form offering multiple services viz. name reservation, incorporation, DIN allotment, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra) and Opening of Bank Account. It will also facilitate allotment of GSTIN wherever so applied for by the Stakeholders. After deployment of SPICe+ web form, RUN shall be applicable only for change of name of existing companies.
(iii) Upon notification & deployment, all new name reservations for new companies as well as new incorporations shall be applied through SPICe+ only
(iv) However, incorporation of companies for names reserved through the existing RUN service shall continue to be filed in the existing SPICe eform along with related linked forms as applicable and if marked under resubmission shall be resubmitted in SPICe eform.
(v) Resubmission of SPICe forms submitted prior to date of deployment of SPICe+ web form shall also be filed in the existing SPICe eform and related linked forms as applicable.Message
Due to the proposed changes to the RUN web service (for companies), RESUBMISSION OPTION for name reservation SHALL NOT BE AVAILABLE for forms processed by CRC from 1st Feb 2020 ONWARDS for approximately 15 days. Hence, stakeholders are advised to EITHER AWAIT DEPLOYMENT OF SPICe+ AND THEN APPLY FOR NAMES through SPICe+ web form or perform due diligence while submitting any application in existing RUN web service for name reservation. RUN applications (for companies) processed filed w.e.f 1st February 2020 onwards shall either be approved or rejected based on checks performed by CRC officers. Stakeholders may kindly note and plan accordingly.
This relates to appointment of Company Secretaries in Private Companies and Applicability of Secretarial Audit.
Amendment: (To be effective from 1st April 2020)
(a) The requirement for appointment of Company Secretary for a private limited company: The threshold changes from Rs. 5 crores to Rs. 10 crores of paid up share capital .
(b) Secretarial Audit – The additional criteria of “Outstanding Loan or Borrowings from banks or Public Financial Institutions exceeds Rs 100 Cr.” has been inserted apart from existing Paid up share capital & Turnover criteria
[Official Notification:]
http://www.mca.gov.in/Ministry/pdf/AmdtRules_06012020.pdf
MCA.GOV.IN
www.mca.gov.in