The weekly messenger | Edition 22.17

Accounting News

IASB issues interpretation on IAS 12 – 7 June 2017

The International Accounting Standards Board (IASB) has issued an interpretation i.e. International Financial Reporting Interpretations Committee (IFRIC) 23 “Uncertainty over Income Tax Treatments” on International Accounting Standard (IAS) 12 “Income Taxes” that specifies how an organization should reflect uncertainty in their accounting for income taxes.
This interpretation will become applicable from 1 January 2019.
For more information, click here

Regulatory News

Clarification Regarding Transmission of Securities by Operation of Law- 5 June 2017

The Ministry of Corporate Affairs  has issued a clarification with respect to issue of duplicate shares under Rule 6(3)(d) of Investors Education and Protection Fund (IEPF)  (Accounting, Audit, Transfer and Refund) Rules, 2016 wherein it has been clarified that since the transfer of shares to IEPF under section 124(6) of the Companies Act, 2013 read with the rules as mentioned above takes place on account of operation of law, therefore, the procedure followed during transmission of shares may be followed and duplicate shares need not to be issued in such cases.

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Non-Applicability of STT on certain transactions- 5 June 2017

The Finance Act (FA), 2017 has amended section 10(38) of the Income-tax Act, 1961 stating that long term capital gains arising from transfer of listed equity shares acquired on or after 01 October 2004 would be exempt from tax under section 10(38) of the Act only if the Securities Transaction Tax (STT) was paid at the time of acquisition of such shares as against the earlier practice where the exemption was available if the STT was paid at the time of transfer of equity shares.
However, there are certain genuine cases where the STT could not have been paid at the time of acquisition such as acquisition of share in Initial Public Offer (IPO), Follow-on Public Offer (FPO) etc. So, in order to protect the exemption for such category of transactions, CBDT has now notified certain transactions where the condition of chargeability to STT for claiming exemption under section 10(38) of the Income Tax Act, 1961 shall not be applicable.

This notification will become applicable wef 1 April 2018 and shall accordingly apply to assessments years 2018-19 and subsequent assessment years.
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Section 24 and 56 of the Banking Regulation Act, 1949 - Maintenance of SLR - 7 June 2017

The Reserve Bank of India has issued a notification where it has decided to reduce the Statutory Liquidity Ratio (SLR) of commercial banks, primary (urban) co-operative banks (UCBs), state co-operative banks from 20.5 % of their Net Demand and Time Liabilities to 20% from the fortnight commencing 24 June 2017.
For more information, click here

CBDT notifies new Safe Harbour Regime – 8 June 2017

The Central Board of Direct Taxes (CBDT) has notified a new safe harbor regime based on the report of the committee set up in this regard, which will become effective from 1 April 2017 (Assessment Year 2017-2018) and which will continue for two immediately succeeding years, i.e., up to Assessment Year 2019-2020.The purpose of issuing these rules is to reduce transfer pricing disputes, to provide certainty to tax payers, to align safe harbor margins with industry standards and to enlarge the scope of safe harbor transactions.
For more information, click here

Further GST Updates- 11 June 2017

The Central Board of Excise and Customs after their discussions in the Goods and Service Tax (GST) Council Meeting held on 11 June 2017  has issued certain rules, formats, rates, records and exemptions, whose links are as follows:

For GST Transition Rules, click here
For GST Transition Format, click here
For Draft Rules on issue of Credit Transfer Document, click here
For GST Accounts and Records Format, click here
For GST Accounts and Records Rules, click here
For Revised GST Rates approved by GST Council on 11 June 2017, click here
For Revised Threshold Limit on composition Levy, click here
For IGST exemptions under GST, click here
For decisions taken by the GST Council in 16 Meeting held on 11 June 2017, click here

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