December Newsletter 2021
India has witnessed a sharp rise in Omicron cases with the start of 2022. Unlike the severe disruptions it caused in western countries, Indian states’ governments have announced curbs to prevent the outspread.
On the other hand, the central government has taken initiatives to boost electric vehicle manufacturing and awarded the largest battery project to fulfil its commitment towards the climate issue.
The Indian start-up scene is making headlines with nearly 40 unicorns added in the last 50 weeks and start-ups raising funds.
In Direct Tax, the Central Board of Direct Taxes has introduced a new rule 21AK which specifies that conditions for exempt of income for a non-resident
There have been amendments in GST with regard to the transaction of the supply of goods and services by club/societies.
November Newsletter 2021
India’s economy has been on a progressive path in the last few months but there have been growing concerns of Omicron variant spread. Consequently, the Indian government has ordered new 10 million doses from Zydus Cadila.
On the business front, Space X’s Starlink is looking to make inroads in the Indian market.
5G spectrum auction dates have also been announced.
Regarding Direct Tax, the latest new Annual Information Statement (AIS) has been rolled out by the Income tax department. While the Indirect tax front has witnessed tax rate changes in GST.
October Newsletter 2021
Indian government has commenced urban transformation schemes. Hence, there has been an increased focus on water harvesting systems, steel production, setting up medical infrastructure and incentivising the telecom industry.
As far as trade is concerned, Government of India is looking to improvise the trade relations with South Korea & Australia.
On the taxes part, there has been amendment of income tax rules with reference to income through transfer of assets & capital.
Goods & services tax updates are there with concern to delivery companies, ice cream parlours, mineral exploration, amusement parks & alcoholic liquor.
September Newsletter 2021
Post-Pandemic, there were assumptions of decline in India’s economic growth. On the contrary, the country has witnessed an increase in demand with supply shortages.
Foreign trade policy has been extended by the government by six months. On the other hand, the Fintech industry is estimated to make threefold growth. There is a notable increase in exports from special economic zones (SEZs). Drugs exports lead the way with a 41.5% share of exports.
In the case of GST, it has been made mandatory to link PAN with bank account.
August Newsletter 2021
Foreign direct investments into India are increasing, reaching US$ 12.1 billion in May this year, according to Commerce and Industry Minister Mr Piyush Goyal. In 2020-21, India got the greatest amount of FDI it has ever received.
In Indirect taxes, the government has introduced new rules for filing the annual return for the financial year 2020-21 onwards. Government has also exempted the class of registered persons form filing GSTR-9 for the financial year 2020-21, whose aggregate turnover for the financial year 2020-21 does not exceed two crore rupees.
July Newsletter 2021
Indian economy is showing a dramatic recovery with all the sectors stabilizing after covid related lockdown, economic activity has picked up despite fear of the third wave. It is estimated if the third wave is not as severe as the second, the Indian economy will recover and grow faster than before.
In direct taxes, CBDT has allowed relaxation for filing of Form 15CA and 15CB. The taxpayers can now submit the Form 15CA and 15CB in manual format to the authorized dealers till 15th August 2021. A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number.
June Newsletter 2021
The Central Government has announced tax exemption for the amount received from employer and other persons for medical assistance or ex-gratia on the death of an employee by family members. The exemption amount will be INR upto 1 million.
Due to Covid, the Government in GST has provided further relief to the tax-payer by lowering the interest rate, waiving the late fees and extending the due dates of GSTR-1 and GSTR-3B and extending various due dates of compliance under GST. Also, government has clarified certain issues through a circular in respect of the Dynamic Quick Response (QR) code on B2C invoices.
May Newsletter 2021
The pandemic has again affected businesses in May, with almost all India under lockdown, closing down all B2C business activity. The online e-commerce has been a savior. The primary sector of the economy has primarily remained normal with major impact being on secondary and tertiary sector.
In the area of direct taxes the CBDT has extended the time limit for various compliances to provide relief to taxpayers in view of the severe pandemic. In another major development in direct taxes the CBDT has prescribed the threshold for the purpose of Significant Economic Presence by inserting Rule 11UD.
April Newsletter 2021
The pandemic has taken a lethal surge in India and has put an enormous strain on the health infrastructure with shortages of essential supplies, disrupting normal life and even causing the death of various individuals. In the area of direct taxes, the CBDT has inserted a new sub-rule under rule 6G which allows revision of Tax Audit report before end of assessment year if there is recalculation of disallowances under Section 40 and 43B. CBDT has also extended few compliance dates due to COVID -19. GST collections in April were at all-time high amounting to INR 1.4 Lakh crores. Certain GST related compliance relaxations have been introduced due to COVID-19.
March Newsletter 2021
The Indian economy is at upward trend despite the huge rise of covid cases in India, the near-term prospects have turned more favorable for India’s economy and it is likely to grow by 12 percent in 2021 following a 7.1 percent contraction last year. In the area of direct taxes, certain New Rule 3B for Calculation of Taxable Perquisites has been made in relation to perquisites of employees. The CBDT has also inserted certain transactions which will be required to be reported in the Statement of Financial Transactions
February Newsletter 2021
India’s exports to the US. increased by 14% to US$ 4.89 billion in December 2020 from US$ 4.28 billion in December 2019. December 2020 is marked as the fourth consecutive month of positive growth, indicating a good trade recovery. Further, in the telecom sector, the Union Cabinet, chaired by the Prime Minister, Narendra Modi, has approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs. 12,195 crore (US$ 1.67 billion).
January Newsletter 2021
With India’s first home-produced COVID-19 vaccine, India has started to accomplish its vision to give 1.3 billion people vaccinations. When it comes to growth, India has started to make its growth rate strong again after COVID-19 with a projection of an impressive 11.5 percent growth rate in 2021.
December Newsletter 2020
India’s road to economic recovery has started, although the Indian GDP is poised for contraction by 7.7%. India’s economy is also showing signs of a ‘V-shaped’ recovery in 2021 with the return of consumers, growing stock markets, an upswing in manufacturing, services, and exporters. Sectors like e-commerce, AI, ITES, IT development, SAAS and health services are leading the growth in the pandemic.
Another indicator of recovery is an increase in GST collections, the gross GST revenue collected in the month of December 2020 rose to ₹1,15,174 crore, an all-time monthly high since the implementation of the new tax regime. This is the third month in a row in during this fiscal that GTS has gone past ₹ 1 lakh crore. These revenues are 12% higher than the GST collections of December 2019.
November Newsletter 2020
Indian Economy has received much-needed push in the Indian festival season in November, with lot of sectors out-performing previous months. Much needed recovery was made in sectors like automobile, FMCG and e-commerce. Another indicator of recovery is an increase in GST collections, the revenues for the month of November 2020 are 1.4% higher than the GST revenues in the same month last year. In GST earlier the government had introduced the e-invoicing system to be applicable on the taxpayers whose aggregate turnover exceeds five hundred crore rupees with effect from 1st October 2020. Now with effect from 01st January 2021, the said e-invoicing system shall be applicable to all those taxpayers having turnover exceeding one hundred crore rupees.
October Newsletter 2020
Indian economy numbers have steadily improved in October, with Wholesale of passenger vehicles in India rose by 26.45% to 2,72,027 units in September as compared to 2,15,124 units in the same month last year. On the Direct tax front, certain procedural amendments have been brought-in with Covid related relaxation of due dates, similarly in GST certain Covid related relaxation of due dates has been made.
September Newsletter 2020
Indian economy numbers are steadily improving with signs such as an increase in India’s Purchasing Managers’ Index (PMI – Manufacturing) or PMI for Services. The PMI for Manufacturing expanded to 56.8 in September 2020, the highest since January 2012. The PMI for Services expanded for the fifth straight month in September to 49.8 from 41.8 in August, the country’s Goods and Services Tax (GST) collections grew 4 per cent to Rs 95,480 crore in September.
August Newsletter 2020
In a major initiative in tax transparency and to make tax system free from any graft, India has introduced faceless assessments, accordingly Central Board of Direct Taxes (CBDT) amended the “E-assessment Scheme” and it will be known as “Faceless Assessment Scheme”, it will be effective from September 25, 2020.
July Newsletter 2020
An agreement of US$ 750 million has been signed between World bank and GOI for the MSME Emergency Response Programme to support the increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis.
June Newsletter 2020
Indian companies have invested around US$ 22 billion worth of foreign direct investment (FDI) into the United States (US) and created 125,000 jobs covering all 50 states, Washington DC and Puerto Rico, according to Confederation of Indian Industry (CII).
May Newsletter 2020
The World Bank on Friday announced $1 billion in social sector funding for India for mitigating the economic and humanitarian crisis being faced by unorganized workers and migrant laborers impacted by the Covid-19.
April Newsletter 2020
Looking into India’s superb growth story the Facebook has decided to invest in Reliance Industries Limited, Jio Platforms Limited entering into binding agreements for an investment of Rs 43,574 crore (US$ 5.7 billion).
March Newsletter 2020
Covid-19 relief measures, which will lead to ease of doing business in this difficult time for entrepreneurs relate to Direct tax, Indirect tax- GST & Customs, Foreign Trade policy, Corporate Laws- Companies act, LLP Act and SEBI and RBI related relaxations.
February Newsletter 2020
On direct tax front, earlier the CBDT has extended the last date for linking of PAN with Aadhaar (India’s Citizenship identification number) from December 31, 2019 to March 31, 2020. Now the CBDT has prescribed the Rules for making PAN inoperative of those persons who failed to intimate their Aadhaar Number on or before March 31, 2020.
January Newsletter 2020
With Budget 2020 around the corner, the Indian business strata is busy in speculating it’s demand from the Finance minister. The government’s task is tightly cut out, with the Indian economy slowing down and political landscape becoming sticky, the fact that the global cues are also not much in favor, the question arises would the budget be a populist one, which pleases the middle class and economically deprived?
November Newsletter 2019
India has set a very ambitious aim of becoming a US$ 5 trillion economy with the Finance Minister stating that India plans to spend US$ 1.4 trillion on its infrastructure in next 5 years, to become a US$ 5 trillion economy by 2024. Further it was also reported that India Inc. has become socially responsible by spending over US$ 7.15 billion over last five years on corporate social responsibility.