Monthly Archives: December 2020

Kamla ki Maut

Deadly psycho movie “Kamla ki Maut” made by Basu Chaterji in 1989. Basu da is a master at this genre after he made the hugely successful “Ek Ruka Hua Faisla”. Armed with a brilliant screeenplay Basu da explores the depth of human feelings that erupts like a volcano after a suicide of a girl named Kamla in the chawl in which the protagonists are staying. Pankaj Kapur with his wife and two daughters. For a few days everybody talks about Kamla and her death. Apparently Kamla was pregnant when she jumped. It overwhelms their life completely and then Basu da slowly weaves in and out of their lives exploring their fears and their past. One of the daughters Roopa Ganguly goes about her relationship with Irfan Khan which is on shaky ground. The other daughter also starts having alarming feelings about her affair with a boy. The mom goes on about her infatuation while she was a youngster and her attempted suicide. But Pankaj Kapur takes the cake with his multiple affairs, deception, extra marital affairs until he settles with his wife. He goes around with Supriya Pathak, then dumps her after making her pregnant and forcing her to have abortion, then has affair with a construction lady, runs away after it is blown up, lands up in a friends house, and has sex with his wife when the friend is away. I mean this is like ultimate. Teenage love, pre-marital sex, deception is the central motif of the movie. The fear encapsulates all of them making everybody nerve stricken and fraught with despair. Brilliant movie to watch.

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Auto-population of e-invoice details into GSTR-1/2A/2B/4A/6A

update from GST portal

  1. Certain notified taxpayers have been issuing invoices after obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’). Details from such e-invoices shall be auto-populated in respective tables of GSTR-1. Update on the status of such auto-population was last published on 30/11/2020.
  2. For those taxpayers who had started e-invoicing from 1-10-2020, the auto-population of e-invoice data into GSTR-1 (of December 2020) had started from December 3rd, 2020.

    In this regard, following is to be noted by those taxpayers:
  3. Owing to existing validations in GSTR-1, e-invoices reported with below commonly observed issues are not auto-populated in the tables of GSTR-1 but are made available in the consolidated excel file downloadable from GSTR-1 dashboard (with corresponding error description):
  4. Further, in certain cases, e-invoice details could not be processed (and hence were not auto-populated) due to data structure issues. These errors may be taken note of and shall be avoided while reporting the data to IRP.
  5. The detailed advisory with methodology of auto-population etc. is already made available on the GSTR-1 dashboard (‘e-invoice advisory’) and also e-mailed to relevant taxpayers.
  6. It is once again reiterated that the auto-population of details from e-invoices into GSTR-1 is only a facility for the taxpayers. After viewing the auto-populated data, the taxpayer shall verify the propriety and accuracy of the amounts and all other data in each field, especially from the perspective of GSTR-1 and file the same, in the light of relevant legal provisions.
  7. The taxpayers are once again requested to verify the documents auto-populated in GSTR-1 tables and consolidated excel and may share feedback on GST Self Service Portal, on below aspects:
  8. 1.All documents reported to IRP are present in excel
  9. 2.Status of each e-invoice/IRN is correct
  10. 3.All the details of document are populated correctly

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extension of time limits for income tax returns

https://pib.gov.in/PressReleasePage.aspx?PRID=1684775

In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances due to the outbreak of COVID-19, the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (‘the Ordinance’) on 31st March, 2020 which, inter alia, extended various time limits. The Ordinance has since been replaced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act.

The Government issued a Notification on 24th June, 2020 under the Ordinance which, inter alia, extended the due date for all Income Tax Returns for the FY 2019-20 (AY 2020-21) to 30th November, 2020. Hence, the returns of income which were required to be filed by 31st July, 2020 and 31st October, 2020 were required to be filed by 30th November, 2020. Consequently, the date for furnishing various audit reports including tax audit report under the Income-tax Act, 1961 (the Act) was also extended to 31st October, 2020.

In order to provide more time to taxpayers for furnishing of Income Tax Returns, the due date was further extended vide notification No 88/2020/F. No. 370142/35/2020-TPL dated 29th October, 2020:

(A) The due date for furnishing of Income Tax Returns for the taxpayers (including their partners) who are required to get their accounts audited [for whom the due date (i.e. before the said extension) as per the Act was 31st October, 2020] was extended to 31st January, 2021.

(B) The due date for furnishing of Income Tax Returns for the taxpayers who are required to furnish report in respect of international/specified domestic transactions [for whom the due date (i.e. before the said extension) as per the Act was 30th November, 2020] was extended to 31st January, 2021.

(C) The due date for furnishing of Income Tax Returns for the other taxpayers [for whom the due date (i.e. before the said extension) as per the Act was 31st July, 2020] was extended to 31st December, 2020.

(D) Consequently, the date for furnishing of various audit reports under the Act including tax audit report and report in respect of international/specified domestic transaction was also extended to 31st December, 2020.

Considering the problems being faced by the taxpayers, it has been decided to provide further time to the taxpayers for furnishing of Income Tax Returns, tax audit reports and declaration under Vivad Se Vishwas Scheme. Further, in order to provide more time to taxpayers to comply under various ongoing proceedings, the dates of completion of proceedings under various Direct Taxes &Benami Acts have also been extended. These extensions are as under:

a.            The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers (including their partners) who are required to get their accounts audited and companies [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 31st October, 2020 and which was extended to 30th November, 2020 and then to 31st January, 2021] has been further extended to 15th February, 2021.

b.            The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the taxpayers who are required to furnish report in respect of international/specified domestic transactions [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act,1961, was 30th November, 2020 and which was extended to 31st January, 2021] has been further extended to 15th February, 2021.

c.             The due date for furnishing of Income Tax Returns for the Assessment Year 2020-21 for the other taxpayers [for whom the due date, as per the provisions of section 139(1) of the Income-tax Act, 1961, was 31st July, 2020 and which was extended to 30th November, 2020 and then to 31st December, 2020] has been further extended to 10th January, 2021.

d.            The date for furnishing of various audit reports under the Act including tax audit report and report in respect of international/specified domestic transaction for the Assessment Year 2020-21 has been further extended to 15th January, 2021.

e.            The last date for making a declaration under Vivad Se Vishwas Scheme has been extended to 31st January, 2021 from 31st December, 2020.

f.             The date for passing of orders under Vivad Se Vishwas Scheme, which are required to be passed by 30th January, 2021 has been extended to 31st January, 2021.

g.            The date for passing of order or issuance of notice by the authorities under the Direct Taxes &Benami Acts which are required to be passed/ issued/ made by 30th March, 2021 has also been extended to 31st March, 2021.

Further, in order to provide relief for the third time to small and middle class taxpayers in the matter of payment of self-assessment tax, the due date for payment of self-assessment tax date is hereby again being extended. Accordingly, the due date for payment of self-assessment tax for taxpayers whose self-assessment tax liability is up to Rs. 1 lakh has been extended to 15th February, 2021 for the taxpayers mentioned in para 4(a) and para 4(b) and to 10th January, 2021 for the taxpayers mentioned in para 4(c).

The Government has also extended the due date of furnishing of annual return under section 44 of the Central Goods and Services Tax Act, 2017 for the financial year 2019-20 from 31st December, 2020 to 28th February, 2021.

The necessary notifications in this regard shall be issued in due course.

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8.71 kms in mindspace

8.71 kms in mindspace. Extremely cold morning, by Mumbai standards i.e.

MRR is raising funds for Bhumi, which is one of India’s largest independent youth volunteer non-profit organisations. Bhumi as a platform will enable over 12,000 volunteers in more than 12 cities across India for causes like education, environment, animals and community welfare. Bhumi is the recipient of the ‘Leader in Volunteer Engagement Award’ conferred by iVolunteer.

Request people to contribute generously to their cause by clicking on the below link.

https://www.unitedwaymumbai.org/tmm-fundraiser-15414

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Raise the Red Lantern

Deadly Chinese movie “Raise the Red Lantern” directed by Zhang Yimou and starring Gong Li among others. The movie is set in the 1920s apparently during the Warlord Era in China from 1916 to 1928. The story is of Songlian (Gong Li) whose father’s dies young and their family is badly off. She is forced to marry a rich person who has a sprawling house and when she goes there she discovers that she is the Fourth Mistress in the household. There are lots of customs and rules to be strictly followed by the women there. One of the rule is that whenever the masters visits a mistress, the red lantern around her part of the house is lit. Songlian is young and soon she discovers deception, lies, jealousy amongst the other 3 mistresses and she has to further worry about her maid Yan’er (Kong Lin) who wants to see herself as the mistress and has aspirations of her own. Soon the rules of the house proves to be too much strangling for Songlian and she finds out that Second mistress has her agenda of her own and third mistress is having an affair of her own with the family doctor. Songlian remarks that there are no people in the house, only dogs, cats and other animals. Zhang Yimou throws light on the strictly male dominated Chinese society where women are treated like cattle with no regard to their feelings and wants. Music and cinematography are quite breathtaking. Virtuoso acting by Gong Li as the devastated and tormented mistress of the house. Worth watching movie,

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Liar’s Poker

Brutal biography of one of the premier investment banks to work with in the 1980s, the Saloman Brothers. Michael Lewis joined the firm fresh out of London School of Economics and spent the next three years from a downright rookie to a bond salesman raking in millions for the firm and while at the same time enriching himself with bonuses from the firm. Its an inside look at the frenzy of an investment bank, the cutthroat business where deception is the name of the game, and ethics is kept in the waste basket. Michael has shredded Saloman Brothers like no one has done before to any firm in which he was first employed. Mortgage bond market was created by Saloman Brothers themselves out of nothing. Housing loans were bundled into attractive lots and sold as bonds in the market. Equity, government bonds, municipal bonds etc. were frowned upon, whereas bond traders were the stars. Corporate equity markets i.e. the stock markets were considered as anathema in Saloman Brothers because bond markets is where the monies lie and where you can play the game of deception better. Michael has dwelt a lot on junk bonds created by Micheal Milken of the Drexel Burnham Lambert fame while giving passing reference to Ivan Boesky of the insider trading shame. People don’t stay in investment banks for long time if the firm does not pay them enough, so there’s no loyalty involved and there are enough raiders for your talent ready to pay unheard of amounts and promised bonuses. Quite a devastating look at the insides of a greedy enterprise. I guess if someone were to write about the other investment banks of that era, they would have come up with a similar effort. Goodreads 5/5

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incorporation

MCA has vide its circular dated 24th December, 2020 amended the Companies (Incorporation) Rules, 2014 by giving more leeway to the name reservation, which at present is only 20 days time limit from the date of its approval.

Now they have provided that the applicants can extend the name reservation approval time limit by paying appropriate fees as under:

upto 40 days from the date of approval i.e. 20 days extra on payment of Rs.1000/-

upto 60 days from the date of approval i.e. 40 days extra on payment of Rs.2000/-

In both the above cases, the additional payment should be made before expiry of 20 days / 40 days respectively

upto 60 days from the date of approval i.e. 40 days extra on payment of Rs.3000/- if the payment is made before 20 days of the approval date.

All this is going to come into effect from 26th January, 2021 – though i am clueless why it should be so late, it should have been made applicable from 1st January 2021 itself.

This is a much needed move because the present 20 days’ time limit is vastly insufficient in order to submit/ file all the documents online at the web portal of the MCA and the govt. asks for a truckload of documents for the same.

In the Web form Spice B+ also they have introduced a column for indicating the main objects of the proposed company. Presently such indication has to be made in the attachment portion of the form.

A copy of the MCA circular can be found on the MCA site. i.e. http://www.mca.gov.in

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Subhadra bank licence cancelled

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50855

The Reserve Bank of India (RBI) has, vide order dated December 24, 2020 cancelled the banking licence issued to Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949 to carry on banking business in India. The order is made effective from close of business on December 24, 2020.

The Reserve Bank cancelled the licence of the Subhadra Local Area Bank Ltd as:

  1. the affairs of the Subhadra Local Area Bank Ltd. were conducted in a manner detrimental to the interests of its present and future depositors.
  2. public interest would be adversely affected if it is allowed to continue to do the business in the manner in which it is functioning.
  3. the general character of the management is considered prejudicial to the interest of the present and future depositors.

The bank had breached the minimum net worth requirement for two quarters in the financial year 2019-20.

Consequent to the cancellation of the licence, Subhadra Local Area Bank Ltd. is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business envisaged under Section 6 of the Banking Regulation Act, 1949 with immediate effect. Reserve Bank of India will make an application for winding up before the High Court.

Subhadra Local Area Bank Ltd. has enough liquidity to pay all its depositors.

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FASTag mandatory from 1.1.21

https://pib.gov.in/PressReleasePage.aspx?PRID=1683339

Union Minister for Road Transport, Highways and MSMEs Shri Nitin Gadkari today announced that FASTag is being made mandatory for all vehicles in the country from new year. Addressing a virtual function today, he said, FASTag will be enforced from 1st of January, 2021. Enumerating its benefits, he said, it is useful for the commuters as they will not need to stop at toll plazas for cash payments. It also saves time and fuel. 

The FASTags were launched in the year 2016, and four banks together issued nearly a lakh of them. By 2017, their numbers went up to seven lakh. Over 34 lakh FASTags were issued in 2018.

Union Ministry of Road Transport and Highways had issued a notification in November this year making FASTag mandatory by 1st of January 2021 in old vehicles also sold before 1st December, 2017 through amendments in CMVR, 1989.

As per Central Motor Vehicles Rules, 1989, since 1st December 2017, the FASTag had been made mandatory for all registration of new four wheeled Vehicles and is being supplied by the Vehicle Manuracturer or their dealers. It had further been mandated that the renewal of fitness certificate will be done only after the fitment of FASTag for the Transport Vehicles. For National Permit Vehicles, the fitment of FASTag was mandated since 1st October 2019.

It has also been mandated that a valid FASTag is mandatory while getting a new 3rd Party Insurance through an amendment in FORM 51 (certificate of Insurance), wherein the details of FASTag ID shall be captured. This shall be applicable w.e.f. 1 April 2021.

This would be a major step for ensuring that the payment of fees be 100% at Toll Plazas through the Electronic Means only and that the vehicles pass seamlessly through the Fee Plazas. There would be no waiting time at the Plazas and would save fuel.

The steps for ensuring the availablity of FASTag at multiple channels are being made through physical locations and also through online mechanism so that the citizens are able to have them affixed at their vehicles within the next two months at their convenience.

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11.45 kms in mindspace

11.45 kms in mindspace, bombay. Merry Christmas everyone!!

MRR is raising funds for Light of Life Trust, an NGO which is registered under the Bombay Public Trusts Act, 1950, works towards realising untapped potential of India’s rural communities and empower them through its 2 verticals – Project Anando (Education) and Project Jagruti (Community Development).

Request people to contribute generously to their cause by clicking on the below link.

https://www.unitedwaymumbai.org/tmm-fundraiser-15411

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purchase of minority shareholdings

MCA has vide its notification dated 17th December, 2020 amended the Companies (Compromises, Arrangements & Amalgamations) Rules, 2016 as follows. It has introduced a new rule 26A specifying the procedures to be followed in the case of purchase of minority shareholding held in demat form. Read on.

  1. The company shall within two weeks of the receipt of amount equal to the price of shares to be acquired by the acquirer verify details of the shareholders holding shares in demat form;
  2. After verification as above, the company has to send notice to the shareholder (via speedpost/ courier/ e-mail/ registered post) informing him of the purchase of his shares in the company and giving a one month cut off (from the date of sending the notice) after which the shares shall be debited from his demat account and credited to the demat account of the company (designated demat account of the company);
  3. The notice as above should also be published in two widely circulated newspapers in the district where the registered office of the company is situated and also uploaded on the website of the company, if any.
  4. The company has to inform the depository after the notice has been published and also give some undertakings such as : corporate action under section 236, that the minority shareholders have been intimated, that the minority shareholders shall be paid by the company immediately after completion of corporate action and that any dispute or complaints shall be settled by the company;
  5. The Board has to authorise the company secretary or any other official for effecting transfer of shares through corporate action, to make necessary disclosures to the depository and to submit whatever documents required in this regard;
  6. The depository, upon receipt of the information as above from the company, make necessary transfer of shares from the demat account of the minority shareholder to the designated demat account of the company, unless some shareholders have made direct transaction with the acquirer in this regard. Post that they have to intimate the company accordingly;
  7. Once the intimation has been received by the company from the depository as above, they shall immediately disburse the amount into the bank account of the minority shareholders. The stamp duty on the transfers as above, has to be paid by the company itself;
  8. After the payment is made as above to the minority shareholders, the company shall intimate the same to the depository who shall then transfer the shares from the designated demat account of the company to the demat account of the acquirer;
  9. The above rules shall not apply if there is a specific order of the court or tribunal staying the transfer of any shares or payment of dividend or where the shares are pledged or hypothecated – in such case the shares shall not be transferred to the designated demat account of the company.
  10. Earlier in the definition clause “corporate action” has been defined to mean any action taken by the company relating to transfer of shares and all benefits accruing from transfer of such shares viz. bonus shares, split, consolidation, fraction shares and rights issue to the acquirer.
  11. The copy of the said notification can be found at the MCA site viz. http://www.mca.gov.in

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unauthorised digital lending platforms

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50846

There have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.

Legitimate public lending activities can be undertaken by Banks, Non-Banking Financial Companies (NBFCs) registered with RBI and other entities who are regulated by the State Governments under statutory provisions, such as the money lending acts of the concerned states. Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps. Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use Sachet portal (https://sachet.rbi.org.in) to file an on-line complaint.

Reserve Bank has also mandated that digital lending platforms which are used on behalf of Banks and NBFCs should disclose name of the Bank(s) or NBFC(s) upfront to the customers. The names and addresses of the NBFCs registered with the Reserve Bank can be accessed here and the portal for filing complaints against the entities regulated by the RBI can be accessed through https://cms.rbi.org.in.

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guidelines for providing DTH services

https://pib.gov.in/PressReleasePage.aspx?PRID=1682976

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi, has approved the proposal for revision of the guidelines for obtaining license for providing Direct-To-Home (DTH) broadcasting service in India. The salient features of the decision are:

  1. License for the DTH will be issued for a period of 20 years in place of present 10 years. Further the period of License may be renewed by 10 years at a time.
  2. License fee has been revised from 10% of GR to 8% of AGR. AGR will be calculated by deduction of GST from GR.
  3. License Fee will be collected on quarterly basis in lieu of presently annualbasis.
  4. DTH operators shall be permitted to operate .to a maximum of 5% of its total channel  carrying  capacity  as  permitted  platform  channels.  A one-time  non-refundable registration fee of Rs.10,000 per PS channel shall be charged from a DTH operator.
  5. Sharing of Infrastructure between DTH operators. DTH operators, willing to share DTH platform and transport stream of TV channels, on voluntary basis, will be allowed. Distributors of TV channels will be permitted to share the common hardware for their Subscriber Management System (SMS) and Conditional Access System (CAS) applications.
  6. The cap of 49% FDl in the existing DTH guidelines will be aligned with the extant Government (DPIIT’s) policy on FDl as amended from time to time.
  • vii. The decision will come into effect as per revised DTH guidelines are issued bythe Ministry of Information and Broadcasting.

The proposed reduction is intended to align the license fee regime applicable to Telecom sector and will be prospectively applied. The difference may also enable DTH service providers to invest for more coverage leading to increased operations and higher growth and thereby enhanced and regular payment of License Fee by them. Registration fee for Platform Services is likely to bring a revenue of approximately Rs. 12 Lakhs. Sharing of infrastructure by the DTH operators may bring in more efficient use of scarce satellite resources and reduce the costs borne by the consumers. Adoption of the extant FDI policy will bring in more foreign investment into the country.

The DTH is operable on pan-India basis. DTH sector is a highly employment intensive sector. It directly employs DTH operators as well as those in the call centres besides indirectly employing a sizeable number of installers at the grass-root level. The amended DTH guidelines, with longer license period and clarity on renewals, relaxed FDI limits, etc., will ensure fair degree of stability and new investments in the DTH sector along with employment opportunities.

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7.84 kms in mindspace

7.84 kms in mindspace, Mumbai. Extremely cold today morning by Mumbai standards.

MRR is raising funds for Population First, an NGO which  is a social impact organization that works for women’s empowerment, gender equality and community mobilisation to achieve India’s social and demographic goals. They do this through their girl child campaign – Laadli and field-based health, nutrition and rural development programme – Action for Mobilization of Community Health Initiatives (AMCHI).

Request people to contribute generously to their cause by clicking on the following link.

https://www.unitedwaymumbai.org/tmm-fundraiser-15408

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relaxation for independent directors

MCA has vide its amendment to the Companies (Appointment and Qualification of Directors), Rules, 2014 given relaxation to the independent directors.

First, they are now required to take the proficiency test within two years of his name being included in the data bank of the Institute recognized by the Ministry.

Secondly, exemption from proficiency test is given if somebody has been a Director in certain specified companies for a period of 3 years as on the date of the inclusion of his name in the data bank. Further some more exemptions is given in respect of the categories of companies/ bodies corporate in which the said director was an independent director such as body corporate listed on a foreign stock exchange which is recognized by the FATF, foreign bodies corporate having paid up share capital of USD 2 million or more, or statutory corporations set by a special act by the Parliament or certain designated officers like Directors in certain ministries such as corporate law, finance, heavy industries and public enterprises or Chief General Managers in SEBI, RBI, IRDA, PFRDA and having experience in corporate law matters .

The passing score has also been reduced to 50% from 60% previously.

This is much needed relief for the independent directors,

The notification can be found at the MCA site. i.e. http://www.mca.gov.in

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