Current Affairs October 2020
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Current Affairs for Bankers Till October 2020 Financial Developments General Awareness Compliation under guidance of Sh.N S TOOR Compiled under guidance of NS TOOR CURRENT AFFAIRS Financial Awareness CENTRE TO CREATE MULTIPLE APP STORES IN COUNTRY: The Government will facilitate the creation October 2020 of multiple app stores in the country to CBDT ISSUES NORMS FOR TDS give competition to Google’s Play Store. AND TCS ON E-COM: CBDT has Ultimately, monopoly of one market issued the norms for Tax Deducted at player is not good. Whether it is Google Source (TDS) by e-Com Operators and or anybody else, it has to be fair to all Tax Collected at Source (TCS) on sales stakeholders. The Government could set of goods exceeding Rs.50 Lakh. TDS up a play store but the real solution will refers to payment made after deduction lie in enabling multiple such platforms of tax at specified rate while TCS is to ensure competition in the payment received along-with tax amount marketplace. The Government can at a specified rate. Both these intend to oversee the interests of App developers. curb tax evasion. Rate of TDS by the e- GOVT. EXTENDS TIME FOR commerce operator will be 1% while DEPOSIT REPAYMENT RESERVE: rate of TCS would be 0.1%. For TDS, The Government has extended the threshold for payment has been kept at timeline for another three months up to Rs.5 Lakh while for TCS, the threshold December 2020 for compliance with is Rs.50 Lakh. TDS and TCS will not be creation of a Deposit Repayment applicable on transactions in securities Reserve. It has also extended by three and commodities that are traded through months the timeline for investment of a recognised stock exchanges or cleared portion of their maturing debentures in and settled by the recognised clearing 2020-21 in liquid instruments. Two corporation, located in the IFSC. extensions in time has been already SEBI ISSUES NEW FRAMEWORK allowed by the Government which was ON DEPOSITORY RECEIPTS: SEBI valid up to June 30 and then till has issued the new framework to September 30.Under Company Law, monitor foreign holding in Depository India Inc would have had to create by Receipts (DRs). Under the framework, a April-end a Deposit Repayment Reserve listed company will appoint one of the of 20% of deposits maturing during Indian depositories as the designated Fiscal 2020-21. Corporates are also depository for the purpose of monitoring required to invest or deposit at least 15% of limits in respect of depository of the amount of maturing debentures receipts. The designated depository in during the financial year in liquid coordination with domestic custodian, instruments. With extension of timeline other depositories will compute, monitor for compliance, corporates will get to and disseminate the DR’s information as use their deposits and resources prescribed in the framework. Further, the efficiently for the benefit of their information will be disseminated on the employees and their sustenance. This is websites of both the Indian depositories. expected to ease the liquidity crunch For this purpose, the designated being faced by the entities amid the depository will act as the lead depository ongoing Covid-19 disruption. and the other depository will act as feed BILATERAL NETTING LAW depository. BECOMES OPERATIONAL: The Centre has operationalised all the SCO 32, 2nd Floor, Sector 33-D, Chandigarh Ph. 0172- 2665623, 0988221167 0 Compiled under guidance of NS TOOR CURRENT AFFAIRS provisions of the Bilateral Netting of option to pay 35% of the net cash tax Qualified Financial Contracts Act from liability of the last quarter using an auto- October 1. The law now provides an generated challan. An assessee having unambiguous legal framework for turnover below Rs.5 Crore will have enforceability of netting of a qualified three options. First, continue with the financial contract. Prior to the existing system of filing returns on a legislation, India did not have a legal monthly basis and pay the tax due. framework for bilateral netting. Netting Second, using the quarterly return filing enables two counter parties in a bilateral system with payment of a certain financial contract to offset claims against percentage of tax due during the first each other to determine a single net three months and settle the whole payment obligation due from one amount along-with the return in the third counter party to others in event of month. Third, if there is no tax due then default. Netting will help in evaluating do not pay on a monthly basis and file risks on a far more real time basis and NIL return in the third month through actual risk assessment will happen rather SMS bases system. than notional assessment based on gross SEBI ISSUES DETAILED figure. FRAMEWORK FOR EVALUATION IR CODE NOTIFIED ALLOWS OF RISK: SEBI has issued the detailed CONVERTING PERMANENT framework for evaluation and disclosure JOBS: The Centre has done away with of risk associated with investing in the safeguard provision that deterred mutual funds. SEBI has added one more employers from converting permanent level of risk-”Very High” to the existing jobs into fixed term contracts. The five levels of risks. Under the existing Industrial Relations (IR) Code 2020 system, risk in MF scheme is gauged in which has been notified has allowed terms of the risk to the principal. This firms to hire contract workers directly essentially boils down to the risk level through a fixed term contract. Earlier, depending on the scheme category. Once firms had to go through a contract to hire the new methodology takes effect, the contract workers –an expensive and risk level of each MF scheme will be cumbersome process. Fixed term evaluated based on its actual portfolio contract workers are entitled to receive composition and not merely the category all statutory dues that permanent to which it belongs. Now the risk will be workers in the same unit get. But such evaluated after taking into several workers unlike permanent employees are factors and not simply the risk to the not entitled to retrenchment principal. compensation. E-INVOICING SYSTEM STARTS FILING OF GST RETURNS MADE AND MADE MANDATORY: E- EASY BY GOVT.: The Government invoicing System which has been made has said that the small tax payers having mandatory for GST assesses with a the aggregate annual turnover less than turnover of Rs.500 Crore or more from Rs.5 Crore will be allowed to file returns October 1 has started. E-invoicing on a quarterly basis with monthly involves reporting details of specified payments from January 1, 2021. Such GST documents to a Government- quarterly tax payers would for the first notified portal and obtaining a reference two months of the quarter, have an number. Those registered can continue SCO 32, 2nd Floor, Sector 33-D, Chandigarh Ph. 0172- 2665623, 0988221167 1 Compiled under guidance of NS TOOR CURRENT AFFAIRS to create GST invoices on their own penetration. This is all the more urgent accounting/ERP systems. Once the in the current context of the pandemic invoices are reported to the invoice when millions of Indians especially in registration portal, the IRP, after the informal sector have lost their digitally signing the e-invoice and livelihoods and are now leading more adding a QR code, returns the e-invoice unsecure lives and are falling back into with a unique IRN. A GST invoice is poverty. Micro insurance companies valid only if it has a valid IRN. It has should be allowed to act as composite been clarified that invoices raised by insurers to transact both life and non-life notified taxpayers during October business through a single entity. Their without following the e-invoice portfolios should have a balance of both procedure, will be deemed to be valid life and non-life business. and no penalty will be levied if the IRN SEBI UNVEILS PROCEDURE FOR is obtained within 30 days of the date of DEBENTURE TRUSTEES: SEBI has the invoice. come out with a uniform procedure that SEBI TIGHTENS INTER-SCHEME needs to be followed by debenture TRANSFER OF SECURITIES: SEBI trustees in case of default by issuers of has tightened regulations for inter- listed debt securities. The process scheme transfers (IST) within the same includes seeking consent from the mutual fund house by banning transfer investors for enforcement of security or of investment in close-ended schemes for entering into an Inter-creditor after three business days of allotment. Agreement (ICA). International Thereafter, no ISTs will be permitted. At securities identification number (ISIN) is present, transfer of securities from one used for uniquely identifying securities scheme to another scheme in the same like stocks, bonds, warrants and mutual fund is allowed only if such commercial papers. SEBI said the transfers are done at the prevailing resolution plan in the ICA may involve market price and the securities so restructuring, including roll-over of debt transferred are in conformity with its securities, requiring consent of the investment objective. For open-ended investors. schemes, ISTs may be allowed only for ALL FOUR LABOUR CODES TO meeting liquidity requirements due to GO LIVE FROM APRIL: The unanticipated redemption pressure. Government intends to implement all the IRDAI PANEL FOR LOWER four labour codes from April1. These ENTRY-LEVEL CAPITAL: The four codes will subsume all existing 29 IRDAI Committee has suggested Central laws. The four codes are- reduction in entry-level capital Industrial Relations Code, Code on requirement for stand-alone micro- Occupational, Safety, Health and insurance companies to Rs.20 Crore Working Conditions, Social Security from the current Rs.100 Crore with a Code and Code on Wages.