The Ministry of Corporate Affairs (MCA) will launch the data analytics-driven MCA21 Version 3.0 by October 2021 in the financial year 2021-22.
1)The MCA21 Version 3.0 system is the Mission Mode e-Governance project of India. 2)The Ministry of Corporate Affairs highlights that the project will comprise of the additional modules for e-Adjudication, e-Consultation, and Compliance Management. 3)It is a technology-driven project that will be launched with the aim of, i) Promoting Ease of Doing Business, ii) Strengthening the enforcement, iii) Facilitating the seamless integration and iv) Exchanging the data among the regulators and v) Enhancing the user experience. 4)Project will also comprise of the Micro-services architecture along with high scalability and capabilities for advanced analytics. 5)The MCA21 V3 project further aims to transform the corporate regulatory environment in India. 6)Project is aided by the latest technologies such as Artificial Intelligence. 7)Major components of the projects include e-scrutiny, e-adjudication, MCA Lab, e-Consultation and Compliance Management System (CMS). 8)This project will be operated by L&T InfoTech. 9)It will also comprise of the interactive user dashboards, chatbot enabled helpdesk and the mobile apps.
It is submitted that a new clause (aa) to sub-section (2) of section 16 of The Central Goods and Services Tax, Act, 2017 (CGST Act, 2017) is being inserted in Finance Bill, 2021. Please note that these proposals will come into effect from a date to be notified later. It is stated that Sections 2 to 79 of Finance Act, 2021 shall come into force on the 1st day of April, 2021 and Sections 99 to 114 of Finance Act, 2021 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
It is submitted that Section 16 of CGST Act, 2017 contains four (4) sub-section out of which sub-section (1) talks about the ‘eligibility for taking Input Tax Credit (ITC)’. Whereas sub-section (2) talks about ‘conditions which should be satisfied for taking ITC’. Further additional condition has been also put in sub-section (3) regarding ‘ITC not admissible if depreciation claimed on tax component’. Moreover, sub-section (4) provides the ‘time limit for availing ITC’.
It is stated that for conditions and restrictions, we have to see the provisions of Section 16 (2) with Rule 36 of the Central Goods and Services Tax, Rules, 2017 (“CGST Rules, 2017”). With the amendment by Finance Act, 2021 a further new condition has been inserted is Section 16(2) of the CGST Act, 2017. Section 100 of the Finance Act, 2021 provides that-
“100. In section 16 of the Central Goods and Services Tax Act, in sub-section (2), after clause (a), the following clause shall be inserted, namely:––
“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.
It is submitted that the aforesaid is one more condition regarding entitlement of ITC. It provides that ITC on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies (GSTR-1) as specified in Section 37 of the CGST Act, 2017 and such details have been communicated to the recipient of such invoice or debit note.
It is pertinent to note that pursuant to the Rule 59(3) of CGST Rules, 2017, the details of outward supplies furnished by the supplier shall be made available electronically to the concerned registered person (recipient) in PART A of FORM GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal after the due date of filing of FORM GSTR-1.
In this regard it is important to note that Rule 36(4) of the CGST Rules, 2017 was recently amended vide Notification No. 94/2020-Central Tax dated December 22, 2020 w.e.f. January 01, 2021 to restrict the ITC to 5% in respect of invoices or debit notes not furnished by supplier in FORM GSTR-1.
Rule 36 of CGST Rules, 2017 provides ‘documentary requirements and conditions for claiming input tax credit’ under Chapter V INPUT TAX CREDIT. Rule 36(4) of CGST Rules, 2017, now, restricts the credit relating to the invoices not uploaded by the suppliers in their FORM GSTR-1 to the extent of 5%. It provides that ITC can be here after claimed in the FORM GSTR-3B only to the extent of 105% of eligible ITC reflected in FORM GSTR-2A in aggregate.
Rule 36(4) of CGST Rules, 2017 is concerned with regard to restriction on the availment of ITC in cases where FORM GSTR-1 has not been uploaded by the suppliers under sub-section (1) of section 37. It is important to note that this newly inserted rule is a substantive condition to be fulfilled for the availment of ITC in addition to conditions prescribed under Section 16 of CGST Act, 2017.
Now it is seeming that the aforesaid amendment is only to provide statutory backing to much debated Rule 36(4) of the CGST Rules, 2017.
It has been decided that no additional fees shall be levied upto *15.02.2021* for the filling of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL and AOC-4 Non-XBRL in respect of the financial year ended on 31.03.2020.
Mega Investment Textiles Parks (MITRA) scheme to be Launched
1.The scheme will enable the textile industry to become globally competitive. 2.It will help the industries to attract large investments and boost employment generation besides boosting the exports. 3.The scheme will help in creating a world class infrastructure with plug and play facilities. This in turn will create global champions in exports. 4.MITRA scheme will be launched in addition to the Production Linked Incentive Scheme (PLI).
The ministry of corporate affairs (MCA) has amended definition of the small companies by amending the Companies Rules. The new amendment allows the non-resident Indians (NRIs) to incorporate one person companies (OPCs) in India.
1. The changes were announced by finance minister Nirmala Sitharaman during the presentation of Union budget. 2.These changes will come into effect from April 1. 3.The notification also highlights that the epaid-up capital and the turnover of the small company shall not exceed respectively rupees two crores and rupees twenty crores. 4.Earlier, the definition was based on the thresholds defined by the Companies Act. 5.The companies act had mentioned a maximum paid up capital of Rs 50 lakh and turnover of Rs 2 crores.
1. Big Reform Push in Banking, Insurance. 2. FM breaks Taboos, Puts Economy on Turbo Charge. 3. Infra, Jobs Focus to Put FMCG in Fast Lane. 4. Cheaper gold, Silver Jewellery to Add Glitter to Marriage Season. 5. Phones May Cost More 6. Gold Coins Get Cheaper. 7. Palm oil Prices to Rise. 8. Taxpayers who are above 75 years with only pension and interest income won’t have to file their tax returns. 9. Boost for Homebuyers. 10. Time limit for reopening of income tax assessment cut to 3 years. 11. FM sets out big ideas to bring in First – time Investors 12. Luxury Car Prices to Sprint Once Again 13. Imported Tipple may not Pinch. 14. Expect More Power Suppliers. 15. Ujjwala scheme offering free cooking gas connection to poor families extended to one crore more households. 16. 100 more districts for city gas distribution network. 17. A natural gas pipeline project to be started in Jammu & Kashmir. 18. Relief for SWF/Pension Funds. 19. Pushing Digital Transactions. 20. Respite from Double Taxation. 21. Custom duties have been increased on certain auto components, parts of mobile phones and solar panels. 22. Taxman can go back only Three Years to Scrutinise Any Lapses in small Cases. 23. Budget has eased taxes on dividends for overseas investors and upcoming instruments like Real Estate Investment Trust and Infrastructure Investment Trust. 24. No depreciation will be available on goodwill though the amount paid for acquiring it shall be allowed on its sale. 25. TDS on dividend income reduced to FPIs 26. Several treaties like India – Singapore have dividend tax rates of 10-15%. 27. No TDS on dividend payments to REITs and InvITs. 28. Tax Rates Unchanged, but Changes in Proposals to Have a Big Impact. 29. LIC policy holders will be eligible to subscribe to the insurer’s IPO at a discounted price. 30. A Rightful Focus on Local Output, Creating Jobs. 31. Putting Faith in Private Investor’s ability to Power The Economy. 32. All set to make India Aatmanirbhar and Global. 33. Govt. will roll up its sleeves on disinvestment in banks and insurance cos, monetize real estate with PSUs 34. Maximising Impact : Fewer centre-sponsored schemes. 35. Jal He Jeevan Hai: Keeping Air, Water & Roads Clean. 36. Enhancing EoDB: Quick Resolution of Contract Tiffs. 37. Weaving In Progress: Mega Textile Parks Scheme. 38. FM opens Govt Spending Tap for Revival. 39. More Small Cos to Bear Lower Compliance Burden Now.
Fake invoice or sham trasactions: To discourage fraud in cases
involving fake invoicing or sham transactions of over 2crore, tax
department will have power to attach assets.
Faceless appellate tribunal: After faceless assessment, even income-
tax appellate tribunal being made faceless and jurisdiction reduced to
make administration more friendly.
Non- deposit to labour welfare funds: No deductions to be allowed if
employer is late in depositing employee contribution towards welfare
funds. This will encourage timely deposit by employers.
TDS on purchase of goods: 0.1% TDS on purchase transaction of over 50
lakh in a year in case the total turnover exceeds 10crore. It’s another
measure to widen tax net.
BAR instead of AAR: Authority of Advance Ruling to be replaced with
Board of Advance Ruling for faster disposal of cases. Appeal against
order with high court.
Tax free Disinvestment transfer of assets by PSU to resulting company
to be a tax- neutral demerge.
Tax liability term “Liable to tax” defined to provide certainty.
Tax holiday for affordable housing extended up to March 31, 2022.
The government has approved the Rs 945-crore Startup India Seed Fund Scheme (SISFS) for the period 2021-25 to offer early-stage funding to startups for “proof of concept, prototype development, product trials, market entry and commercialization,” implementing body Department for Promotion of Industry and Internal Trade (DPIIT) said in its notification.Startups across sectors registered with the DPIIT and incorporated not more than two years ago at the time of applying for the the scheme will be eligible for securing capital. The funding will be disbursed through selected incubators assisted by the central government or state governments.
The government also announced eligibility criteria for incubators assisted by the central government or state governments to participate in the scheme that included at least two years of operability on the date of applying for the scheme, capacity to seat at least 25 individuals, at least five startups undergoing incubation at the time of application of the scheme. The scheme will be executed and monitored by an Experts Advisory Committee (EAC) to be set-up by DPIIT. EAC will evaluate incubators to provide grants of up to Rs 5 crore in milestone-based three or more instalments.
The Ministry of Corporate Affair (MCA) notified Companies (Incorporation) Amendment Rules, 2021 which sought to amend the Companies (Incorporation) Rules, 2014.
The notification amended Rule 41 of Companies (Incorporation) Rules, 2014 which relates to Application under section 14 Companies Act, 2013 for conversion of public company into private company.
The notification specified that where an objection has been received or Regional Director on examining the application has specific objection under the provisions of the Act, the same shall be recorded in writing and the Regional Director shall hold a hearing or hearings within a period of 30 days as required and direct the company to file an affidavit to record the consensus reached at the hearing, upon executing which, the Regional Director shall pass an order either approving or rejecting the application along with the reasons within 30 days from the date of hearing.
In case where no consensus is received the Regional Director may approve the conversion, if he is satisfied having regard to all the circumstances of the case, that the conversion would not be against the interests of the company or is not being made with a view to contravene or to avoid complying with the provisions of the Act, with reasons to be recorded in writing.
However, the conversion shall not be allowed if any inquiry, inspection or investigation has been initiated against the company or any prosecution is pending against the company under the Act.
The Reserve Bank of India recently constituted a working group on digital lending. The working group was constituted to study all aspects of digital lending activities in the regulated and regulated financial sector. The working group will ensure that an appropriate regulatory approach is put in the digital lending platform.