As speculated earlier, CBIC has mandated the E-Invoicing for entities whose aggregate TO exceeds Rs. 50 Crores from 1st April, 2021. Earlier all the entities whose TO exceeds Rs. 100 Crores, E-Invoicing was mandated from 1st Jan 2021. This addition was as expected earlier by various stakeholders and practitioners as well. Even today we can see that India and its growing business activities are required to be brought under a standard culture where transparency of the transaction and authenticity of the transaction is something where the government is focused to streamline on and we totally appreciate the efforts made by CBIC in this respect and SBS Global welcomes this update by CBIC.

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Compliance with QR code for all the E-Invoices raised by the entities is a major update brought in by CBIC from 1st Jan 2021. All the B2B transactions have been streamlined in this respect through the department portal of GST. B2C transactions was also required to be streamlined in compliance to the previous update however due to concerns and difficulties raised by various stakeholders, CBIC has delayed this compliance of QR code for B2C transactions to 1st July 2021.

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The CBDT, vide notification no. 16/2021, dated 12.03.2021 has included reporting of information relating to interest income, dividend income and capital gains within scope of Statement of Financial Transactions (SFT).

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The Central Board of Direct Taxes (CBDT) has issued directions that provisions of Faceless Appeal, 2020 are applicable only to the income-tax Act, 1961 and not to any other Direct Taxes / Direct Tax Acts including the following:
a) Wealth-tax Act, 1957;
b) Interest-tax Act, 1974;
c) Gift Tax Act, 1958;
d) Expenditure-tax Act, 1987;
e) Securities Transaction Tax in Chapter VII of Finance (No. 2) Act, 2004;
f) Commodities Transaction Tax in Chapter VII of Finance Act, 2013 and
g) Equalization Levy in Chapter VIII of Finance Act, 2016.
The CBDT has also clarified that it has not issued any direction for finalization of appeals under any Direct Tax/Direct Tax Acts other than Income-tax Act, 1961, in a faceless manner under the Faceless Appeal

Every MNE group which has a constituent entity resident in India is mandated to notify the Income-tax Department its parent entity and alternate reporting entity and the countries where such entities are resident. Such parent entity or alternate reporting entity is required to furnish a report called ‘Country-by-Country Report’ (CbCR) specifying certain information.

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Please refer to paragraph 12 of the Governor’s Statement on Developmental and Regulatory Policies dated April 07, 2021. In this connection, attention of Authorized Dealer Category-I (AD Category-I) banks is invited to paragraph 4.2 of the of Master Direction No.5 dated March 26, 2019, on “External Commercial Borrowings, Trade Credits and Structured Obligations”, in terms of which ECB borrowers are allowed to park ECB proceeds in term deposits with AD Category-I banks in India for a maximum period of 12 months cumulatively.

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Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA.396/2019-RB dated October 17, 2019, as amended from time to time and the relevant Directions issued thereunder. A reference is also invited to A.P. (DIR Series) Circular No. 30 dated April 15, 2020 on the captioned subject.

2. Investment Limits for FY 2021-22
  1. The limits for FPI investment in Corporate bonds shall remain unchanged at 15% of outstanding stock of securities for FY 2021-22. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under (Table - 1)
Table - 1: Limits for FPI investment in Corporate bonds for FY 2021-22
(₹ Crore)
Current FPI limit 5,41,488
Revised limit for HY Apr 2021-Sep 2021 5,74,263
Revised limit for HY Oct 2021-Mar 2022 6,07,039

b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2021-22 will be advised separately. Till such announcement, the current limits (as in Table - 2), shall continue to be applicable.

Table - 2: Limits for FPI investments in G-Sec and SDL
(₹ Crore)
G-Sec General
G-Sec Long Term
SDL General
SDL Long Term
FPI investment limits
3. AD Category – I bank may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.

MCA amendment notification dated 24th March, 2021 in exercise of the powers conferred by sections 139, 143, 147 and 148 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014

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MCA amendment notification dated 24th March, 2021 on the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule III to the said Act with effect from 1st day of April, 2021.

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