Knowledge is like money: to be of value it must circulate, and in circulating it can increase in quantity and, hopefully, in value. Here is your Daily dose of professional updates in newsletter form- 27th September 2019

1. S E P T E M B E R 2 7 , 2 0 1 9 | F R I D A Y I S S U E 7 9
THE DAILY
LIFELINE
Official Newsletter of Diucon
BIGGEST CHALLENGE-
HOW TO KEEP UPDATED
ON DAILY BASIS
Laws are changing frequently in India, there are big
developments and announcements on daily basis in
Economic & Finance world and many other reforms are on
the way. This newsletter will keep you updated on daily
basis along with documents taken from authentic sources.
By Pradeep Goyal, FCA | ACPA, Australia
WHAT'S NEW IN
PROFESSIONAL/
BUSINESS
WORLD TODAY:
Goods & Service Tax
Direct Tax Code
Income Tax
Economy | Finance

2. INDEX
UPDATES RELATED TO
 New Direct Tax Code-Ministry of Finance
 Goods & Service Tax by CBIC
 Income Tax by CBDT
 Announcement by ICAI
 Announcements by ICSI
 Corporate Laws by MCA
 The Insolvency and Bankruptcy Law by IBBI
 Listing/Market by SEBI
 Foreign Trade Policy by DGFT
 Start-ups by Start Up India Department
 Micro, Small & Medium Enterprises
by Ministry of MSME
 Money Market/Banks by RBI
 New acts notified/Bills introduced in
parliament or Executive orders
by President
 Latest developments in Economy &
Finance world.

3. Page 1 of 8
 Updates related to Goods & Service Tax & other Indirect taxes
by CBIC
 GST
 Legal updates- Court/AAARA judgements/Advance Rulings
[AAARA- Appellate Authority for Advance Ruling | ARA- Advance Ruling Authority]
Sr.No. Key to find the
document
Court/ARA/AAAR Description
Ruling/
Judgement
Summary
1 [2019] 109
taxmann.com
455
Metro Dairy
Ltd., In re
CASE NO. 31 OF
2019
ORDER NO.
23/WBAAR/2019-
20
SEPTEMBER 23,
2019
Authority for
Advance Rulings,
West Bengal
Advance
Ruling
Where applicant, who has
set up a manufacturing
facility for UHT milk,
milkshake, curd & lassi
which are taxable as well as
exempted and procured
capital goods & input
services that are common to
production of both taxable
& exempted goods, wants
to know to what extent and
in what proportion ITC is
admissible on such capital
goods and input services,
based on proviso to rule
43(1)(d) of GST Rules and
further prescriptions under
rule 43(1)(e), (f) and (g) of
GST Rules, applicant should
compute admissible
amount of ITC on capital
goods used for both taxable
and exempt supplies in tax
periods over useful life of
such capital goods,
calculated from date of
invoice.
Section
17(2) and
(17(3) of
CGST Act
and Rule 43
discussed in
detail

4. Page 2 of 8
Sr.No. Key to find the
document
Court/ARA/AAAR Description
Ruling/
Judgement
Summary
2 [2019] 109
taxmann.com 110
Cengres Tiles Ltd.
v.
State of Gujarat
R/SPECIAL CIVIL
APPLICATION NO.
19180 OF 2018
JUNE 19, 2019
Gujrat High Court Judgement Where Competent
Authority, much before
notice under section 46
came to be issued or
rather much before
assessment could be
undertaken under
section 62, passed
orders under section 83
of provisional
attachment of goods
and bank accounts of
assessee, said orders
could not be said to be in
accordance with law and
deserved to be quashed
Sections
46, 62 and
83 of CGST
Act
discussed
3 [2019] 109
taxmann.com 109
SPFL Securities
Ltd., In re
ORDER NO.
06/AAAR/18/4/2019†
APRIL 18, 2019
Appellate
Authority for
Advance Ruling,
Uttar Pradesh
Advance
Ruling
appeal
order
Where appellant, a stock
broker, is engaged in
business of purchasing
and selling of shares on
behalf of clients on Stock
Exchange platform, it is
not liable to pay GST on
delayed payment
charges collected from
clients
section
2(52),
2(102), 9 of
CGST Act
discussed

5. Page 3 of 8
 News/Latest Developments/Other updates
 Thanks to the new online system, GST refunds will be seamless, pick up speed:
GSTN chief
GST assesses are now going to have seamless refund mechanism, as GSTN, the
technology platform of the indirect tax regime, has switched to a new system.
The ‘Online Refund Processing and Single Disbursement’, will facilitate
taxpayers to file refund application online and help the tax officers to process
the application there itself. All communications between the taxpayers and the
tax officers will also be online.
[Business line report]
 Rs 400 Crore GST fraud in Delhi NCR unearthed.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has
unearthed a scam in which exporters from the National Capital Region (NCR)
allegedly availed Goods and Services Tax(GST) refund of Rs 400 crore in
connivance with units in Gujarat's Kandla Special Economic Zone (SEZ).
[Read this report]
 OTHER INDIRECT TAXES
 Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019
CBIC issued few clarifications on the scheme vide circular No.
1072/05/2019-CX dated 25th September, 2019.
[Copy of circular]
 Updates related to Income Tax by CBDT
 Notification/Circular/Press release/FAQs
 CBDT issues clarifications in respect of filling-up of return forms ITR-5, ITR-6
and ITR-7for the Assessment Year 2019-20 in continuation to previous circulars
No. 18 of 2019 dated 08.08.2019 and Circular No 21 of 2019 dated 27.08.2019.
Please refer Annexure-1 at the end of this document for detailed discussions on
clarifications
[copy of Circular No. 26/2019 dated 26.09.2019 here]

6. Page 4 of 8
 Legal updates- Tribunals, High Court & Supreme Court judgements
Sr.No.
Key to find the
document
Description
Tribunal/Court Brief judgement
1 [2019] 109
taxmann.com 105
Karanja Terminal
& Logistics (P.)
Ltd. v.
DCIT, Central
Circle-6(3),
Mumbai
IT APPEAL NOS.
2472, 2473 & 5752
(MUM.) OF 2018
MARCH 20, 2019
Mumbai
Tribunal
Where assessee-company,
incorporated for development and
operation of multipurpose port
terminal, raised certain share capital in
form of foreign inward remittance, in
view of fact that said project got
delayed due to various reasons beyond
assessee's control and, thus, assessee
had to keep unutilised funds in banks in
form of FDRs, interest income earned
on said deposits being in nature of
capital receipt, was not liable to tax.
 News/Latest Developments/Other updates
 Demonetisation cases: CBDT extends taxman's deadline to December 31
The CBDT on Thursday extended the deadline up to December 31 for the
Income-tax department to complete the final assessment of about 87,000
entities that made suspicious deposits post-demonetisation.
ET Report
 Updates related to Announcement by ICAI
 ICAI constitute a High Level Independent Committee to look into the
Examination processes/ Regulations governing CA Examinations including
Regulation 39(4) of the Chartered Accountants Regulations, 1988 and suggest
changes wherever required in the ICAI Examination System.
Here is announcement

7. Page 5 of 8
 The Insolvency and Bankruptcy Law.
 Government appoint below persons as part-time members in the Insolvency
and Bankruptcy Board of India
a) Shri Krishnamurthy Subramanian, Chief Economic Advisor, Government of
India with effect from 8th
July, 2019.
b) Shri B. Sriram, former Managing Director and Chief Executive Officer,
Industrial Development Bank of India Limited with effect from 4th
July, 2019.
[MCA Notification is here]
 Listing/Market by SEBI
 Based on the consultations held with stock exchanges, SEBI review the extant
position limits in Interest Rate Derivatives as per this Circular
 Updates related to Micro, Small & Medium Enterprises by
Ministry of MSME
 Speaking on inauguration of workshop on Outreach of Emerging Technologies
to MSMEs in New Delhi, Minister MSME talked about Government’s plan to use
technology like artificial intelligence, collaborative robots, smart sensing and
real time dashboards with a view to improve the life condition of poorest of the
poor.
[Here is release from Ministry]
 Updates related to Money Market/Banks by RBI
 RBI releases the Report of the Internal Working Group to Review the Liquidity
Management Framework.
Here is the press release
 Directions under Section 35A of the Banking Regulation Act, 1949 (AACS) –
Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra -
Relaxation in withdrawal limit of Deposit Accounts.
Read the release

8. Page 6 of 8
 Updates related to Latest developments in Economy &
Finance world
 PMC Bank crisis: No need to get into this now, says FM Sitharaman
Finance Minister Nirmala Sitharaman said the RBI as a regulator was handling
the PMC Bank issue and also provided some relaxation. “I don't think I'll get into
this at this stage. Will wait, let there be some kind of comprehensive picture
emerging post which certainly government will have to see what best can be
done. Business Standard report
 Govt might seek extension of ECB to boost NBFC credit in economy
The government may ask the Reserve Bank of India (RBI) to allow co-origination
of loans for deposit-taking non-banking finance companies (NBFCs) as well in a
bid to boost credit in economy. Currently, the RBI has in place guidelines on co-
orgination of loans by banks and non-deposit-taking NBFCs in the priority sector.
Here is full report

9. Page 7 of 8
Annexure-1
Discussion on clarifications issued by CBDT regarding filing of Forms ITR-5, ITR-6 and ITR-
7- Circular No. 26/2019 dated 26.09.2019]
Clarification-1 on how unlisted companies and start-ups should furnish details of
shareholding in schedule SH-1 of ITR-6 in a case where shares have been acquired by
way of transfer.
1. Discussion
a) ITR-6 is for Companies other than companies claiming exemption under
section 11
b) In Clause 8 under heading “nature of company and its business” in ITR-6
form, one has to reply “Whether the company is unlisted? If yes, then need
to fill up the-
Schedule SH-1 “Shareholding of Unlisted Company (Other than start-up)”
Schedule SH-2 “Shareholding of start-up
and
Schedule AL-1 “Assets and liabilities as at the end of the year” (Other
than start-up)”
Schedule AL-2 “Assets and liabilities as at the end of the year of start-up”
c) Schedule SH-1 ask for details of shareholding of company at end of
previous year. It means company assessee need to provide details of its
shareholders as on last day of previous year i.e. March, 31st
.
d) Shares of any company can be acquired by an investor either by purchase
from company through direct allotment or by purchasing from another
existing shareholder. In second option, shares will be transferred by one
person to another through company using share transfer deed duly
recorded with company.
Clarifaction-1 is related to second option as mentioned in point (d) where one
person buys shares of a company from another person not by direct
allotment from company.
Let us understand this with an example.
Ram buy 100 shares (Face Value Rs.10/- per share) of company ABC Private
Limited (Unlisted company other than start-up) from Shyam at a price of Rs.
20 each share on 28.03.2019 and deal is executed through transfer deed and
company ABC Pvt Ltd recorded this transfer in its shareholders’ register.
Shyam originally bought these 100 shares at Rs. 15/- in 2018.

10. Page 8 of 8
Now ABC Pvt Ltd is filing its ITR for Assessment Year 2019-2020 for previous
year ended as on 31st
march 2019.
Schedule SH-1 para-1
Name of
Shareholder
Date of
allotment
No of
shares
held
Face
value per
share
Issue price
per share
Amount
received
Ram
[Current
shareholder]
28.03.2019
[Date of
transfer to
current
shareholder
i.e. Ram]
100 Rs.10/-
[face
value per
share at
which
the
shares
had
been
originally
allotted
by ABC
Pvt ltd to
Shyam]
15/-
[price at
which shares
were issued
by ABC Pvt
Ltd to
The Shyam (
original
shareholder)
to whom the
company
had allotted
the shares]
Rs. 1500/-
(100 shares of
Rs.15 each)
[Total
amount
received by
ABC Pvt Ltd
from the
Shyam
(original
Shareholder)
to whom the
allotment of
shares had
been made,
up-to the end
of the
previous
year]
[Few columns of SH-1 of ITR-6 not taken in example as only informative]
Rest of clarifications are self-explained. Please refer circular
SAVE WATER || SAVE UNIVERSE

11. =============================================
About Scribbler
PRADEEP GOYAL
 Fellow Member of the Institute of
Chartered Accountants of India.
 Associate member of Professional
Accounting Body of Certified
Practising Accountants (CPA),
Australia.
 CFA (Corporate Finance)- Columbia
Business School, USA | EMERITUS
Institute of Management, Singapore.
 Certified Goods & Service Tax
Practitioner from ICAI & Ministry of
Micro, Small & Medium Enterprises,
Government of India.
================================
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