Vistra Insights

Vistra India Update 388

November 16 - November 30, 2019

COMPANY LAW

1.    Extension of the date for filing Form PAS6
Ministry of Corporate Affairs (MCA) has extended the due date for filing Form PAS-6 (Reconciliation of Share Capital Audit Report) for half year ended 30th September, 2019 to 60 days from the date of the deployment of the Form. Filing within the extended date will not attract additional fees. 

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2.    Companies (Meetings of Board and its Powers) 2nd Amendment, 2019 
Ministry of Corporate Affairs (MCA) has amended Companies (Meeting of Board and its Powers) rules, 2014 to change the threshold limits in the criteria for distinguishing Related Party Transactions (RPT) that require authorization through resolution by the Company. The thresholds specified with absolute number is removed and only % criteria set to determine the RPT transaction requiring authorization through resolution by the Company:

•    sale, purchase or supply of any goods or materials directly or through appointment of agent, amounting to  10% or more of the Turnover of the Company;
•    selling or otherwise disposing of, or buying, property of any kind directly or through appointment of agent amounting to 10% or more of net worth of the Company
•    leasing of property of any kind amounting to 10% or more of the turnover of the Company
•    availing or rendering of any services directly or through appointment of agent, amounting to 10% or more of the turnover of the Company

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GOODS AND SERVICES TAX


3.    Fully electronic refund process through FORM GST RFD-01 and single disbursement

After roll out of GST due to unavailability of electronic refund module the assesses were required to file the refund application in FORM GST RFD-01A on the common portal, take a print out of the same and submit it physically to the jurisdictional tax office along with all supporting documents. Further processing of these refund applications, i.e. issuance of acknowledgement of the refund application, issuance of deficiency memo, passing of provisional/final order, payment advice etc. was also being done manually. 

The necessary facilities for making the refund procedure fully online, in which all steps of submission and processing shall be undertaken online, have been deployed on the common portal with effect from 26.09.2019. Accordingly, the Central Board of Excise and Customs (CBEC) vide Circular No. 125/44/2019 – GST has introduced the process / procedure. Following are the important points covered in the Circular regarding the refund process.

•    Filing of refund applications in FORM GST RFD-01    
•    Issue of Deficiency Memos      
•    Issue of Provisional Refund      
•    Scrutiny of Application            
•    Re-crediting of electronic credit ledger on account of rejection of refund claim     
•    Application for refund of integrated tax paid on export of services and supplies made to a Special Economic Zone developer or a Special Economic Zone unit 
•    Disbursal of refunds    
•    Guidelines for refunds of unutilized Input Tax Credit            
•    Guidelines for refund of tax paid on deemed exports           
•    Guidelines for claims of refund of Compensation Cess         
•    Clarifications on issues related to making zero-rated supplies          
•    Refund of transitional credit  
•    Restrictions imposed by sub-rule (10) of rule 96 of the CGST Rules  
•    Clarification on calculation of refund amount for claims of refund of accumulated ITC on account of inverted tax structure       
•    Debit of electronic credit ledger using FORM GST DRC-03    
•    Refund of Integrated Tax paid on Exports      
•    Annexure-A List of all statements/declarations/undertakings/certificates and other supporting documents to be provided along with the refund application          
•    Annexure-B : Statement of invoices to be submitted with application for refund of unutilized ITC       

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CUSTOMS

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

The Central Board of Excise and Customs (CBEC) vide Notification No. 85/2019 - 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 22nd of November 2019.  

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