Insights

Vistra India Update 378

June 16 to June 30 2019

COMPANY LAW

1.    Clarification of filing DIR-3 KYC

Considering the difficulties in filing DIR-3 KYC every year, Ministry of Corporate Affairs (MCA) has proposed a simple web based verification service for Directors who have already filed DIR-3 KYC. The web based application will provide a prefilled data based on the records in the registry. However, in case a director wishes to update Email ID or phone numbers, he/she will have to file DIR-3 KYC. The relevant amendment in the Rules and extension of time for filing DIR-3 KYC is yet to be notified and MCA has advised the stakeholders to take note of the same and make necessary filing according to revised notification. 

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RBI AND FEMA

2.    Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies

Reserve Bank of India has replaced the existing annual email based filing of Annual Return on Foreign Liabilities and Assets with an online reporting portal (https://flair.rbi.org.in). In the new reporting portal coverage of filing requirement is extended to 

a.    alternative investment funds (AIF) registered with the Securities and Exchange Board of India (SEBI), though format relevant to AIFs are yet to be updated in the portal and 

b.    reporting of foreign investment in the form of capital/profit share contribution received/transferred in case of LLPs and investment by persons resident outside India in an investment vehicle and as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}

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3.    Rollout of the foreign exchange trading platform for retail participants

Reserve Bank of India has announced launching of foreign exchange trading platform (https://www.fxretail.co.in) for retail customers of banks. This platform is  to be rolled out by Clearing Corporation of India Limited (CCIL).  The customer registration process on the platform shall commence on July 01, 2019 and the platform shall be available for transactions from August 5, 2019. Banks will facilitate on-boarding of retail customers to the platform. 

This initiative is to bring transparent and fair pricing for retail customers  thereby lowering  total cost borne by them in the foreign exchange market. Facilitating direct access for retail customers to the market, rather than through price-setting by their banks, is expected to bring down the risk that banks face in warehousing transactions.  Trading by retail customers is subject to the following:

i.    no cap on the number of transactions per customer during a day. The total amount of transactions of a customer shall be subject to the limit assigned by its bank.

ii.    The size of a single transaction is not allowed to exceed $5 million.

iii.    As a further facility for retail clients, no transaction charges shall be levied by the CCIL on transactions of customers if such transactions do not exceed USD 50,000 per day.

iv.    A transaction charge of 0.0004% shall be charged by the CCIL for transactions in excess of USD 50,000 per day.

v.     Fees charged by banks, if any, shall be indicated on the FX-Retail platform. Banks may recover from customer’s transaction and settlement charges levied by the CCIL.

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GOODS AND SERVICES TAX

4.    Due date for filing  GSTR – 1  extended

The Board vide Notification No. 27/2019 & 28/2019 – Central Tax has extended the due date for filing of GSTR – 1 as detailed below.

a.    For taxpayers with aggregate turnover up to Rs. 1.5 crores in the preceding financial year or current financial year, due date for filing of return for the quarter July to September, 2019 has been extended till 31st October 2019.

b.    For taxpayers with aggregate turnover of more than Rs. 1.5 crores for each of the months from July 2019 to September, 2019 the due date for filing is 11th day of the succeeding month.

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5.    Due date for filing  GSTR – 3B  notified

The Board vide Notification No. 29/2019 – Central Tax has extended the due date for filing of GSTR – 3B return for each of the months from July 2019 to September, 2019 to 20th day of the succeeding month.

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6.    Due date for filing  FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C  extended

The Board vide Order No. 06/2019 – Central Tax has extended the due date for filing FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C from 30th June 2019 to 31st August 2019 due to some technical problems faced by the taxpayers in filing of the above Forms.

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CUSTOMS

7.    Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 45/2019 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 21st of June 2019 respectively.  

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