Monday, March 31, 2025
New loan sale rule to give Rs 20k-cr lift to bank profits:-ET
The Reserve Bank of India (RBI) allowed lenders (on Saturday) across the spectrum and ownership types to reverse excess provisions in their profit and loss (P&L) accounts if a loan is transferred to an asset reconstruction company (ARC) at a value exceeding its net book value.
Voda can do it.:-Govt to convert VI's outstanding spectrum dues into equity shares worth Rs 36,950, stake to increase to 48.99%:-ET
The Centre will convert a part of Vodafone Idea’s (Vi) spectrum payment dues into equity shares worth Rs 36,950 crore, reducing the cash-strapped telco’s statutory liabilities by that amount to boost its commercial viability and help prevent an industry duopoly.
The move, sought by the beleaguered telco, will increase the government’s stake in Vi to around 48.99%, from 22.6% now.
Friday, March 28, 2025
Reliance Power to Reliance Infra: Why did Anil Ambani’s ADAG stocks skyrocket today? EXPLAINED:-livemint
- ADAG Stocks Today: Among individual stocks, Reliance Power's share price surged 11 per cent intraday, Reliance Infrastructure's shares jumped 10 per cent yesterday, and Reliance Capital's shares rose two per cent.
ADAG Stocks Today: Shares of Reliance Infrastructure and Reliance Power surged 10-11 per cent intraday. IN PICTURE: Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group, speaks in Mumbai; REUTERS/Danish Siddiqui ADAG Stocks Today: Shares of Reliance Power, Reliance Infrastructure, and other stocks of the Anil Dhirubhai Ambani Group (ADAG) extended their winning streak for the second straight day on Thursday, March 27, 2025, defying the subdued sentiment of the Indian stock market. According to D-Street experts, Reliance Capital's acquisition by IIHL for ₹9,650 crore boosted the Ambani's group of stocks.
Among individual stocks, Reliance Power's share price surged 11 per cent intraday, Reliance Infrastructure's shares jumped 10 per cent yesterday, and Reliance Capital's shares rose two per cent. ADAG stocks refer to the publicly traded shares of companies within the Anil Ambani Group, a conglomerate led by top businessman Anil Ambani, brother of billionaire industrialist Mukesh Ambani.
ADAG Stocks Today: Share Price Trend of RInfra, Reliance Power
Shares of Reliance Power (formerly Reliance Energy Generation Ltd) have surged 13.35 per cent in one month but have plunged 12 per cent year-date (YTD). However, shares of the Anil Ambani group's power major have surged 43 per cent in one year. Reliance Power Ltd is the largest power generation portfolio under development in India's private sector. The power major has provided multi-bagger returns to investors of 203 per cent in the last two years.
Similarly, shares of Reliance Infrastructure (formerly Reliance Energy Ltd) have surged 14 per cent in one month but have shed 21 per cent year-date (YTD). Reliance Infrastructure is a major shareholder in Reliance Power. RInfra has provided multi-bagger returns to investors of 134 per cent in the last three years.
ADAG Stocks Today: Why did Anil Ambani's group stocks surge today?
"Shares of Reliance Power and Reliance Infrastructure surged by nearly 7.5 per cent, defying the broader market's subdued sentiment. The key driver behind the rally is the successful acquisition of Reliance Capital by IIHL for ₹9,650 crores after a prolonged three-year process, during which all outstanding debts were cleared," said Sugandha Sachdeva, Founder of SS WealthStreet.
"With IIHL officially taking control and holding its first board meeting, investor confidence has significantly boosted. This has fueled a sharp rally in ADAG stocks, supported by strong trading volumes, signalling renewed optimism in the group’s future prospects," added Sugandha Sachdeva.
Stock market today
The surge in ADAG stocks was registered despite a grim market sentiment today. Domestic equity benchmarks Sensex and Nifty 50 snapped their seven-day winning run with investors taking to profit-booking ahead of potential US tariff announcements next week. Banking and IT shares logged profit booking ahead of the monthly expiry of derivatives contracts.
Sensex tanked 728 points due to profit-taking in banking and IT shares ahead of the monthly expiry of derivatives contracts. The 30-share BSE Sensex declined by 728.69 points or 0.93 per cent to settle at 77,288.50 as 25 of its components closed in the red.
During the day, it slumped 822.97 points or 1.05 per cent to 77,194.22. The NSE Nifty dropped 181.80 points or 0.77 per cent to 23,486.85. In the past seven trading days, the BSE benchmark index jumped 4,188.28 points or 5.67 per cent. The Nifty surged 1,271.45 points or 5.67 per cent during the same period.
AThe benchmark indexes erased their YTD losses earlier this week after gaining 5.7 per cent in a seven-session rally, helped by foreign inflows and optimism over domestic macroeconomic factors. The mid-caps and small-caps fell 0.6 per cent and 1.1 per cent, respectively, dropping for the second straight day after rising nine per cent and 10 per cent, respectively in a six-day rally.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
How a whiskey barrel scam in UK costed people millions According to report, hundreds of people were conned into investing their life savings and pension into casks which didn’t exist, were overpriced or were sold to multiple people.;-The Indian Express
Three Scotch whisky companies have come under the police scanner after hundreds of people were reportedly conned of millions of pounds in a whisky barrel investment scam in the UK, BBC reported.
According to the report, hundreds of people were conned into investing their life savings and pension into casks which didn’t exist, were overpriced or were sold to multiple people.
Some of those affected by the whisky barrel investment scam include National Health Service staff members, and a woman who is suffering from terminal cancer.Reports suggest the woman with cancer who invested £76,000 and another woman who spent more than £100,000 on casks were valued only a fraction of the price they paid.
The scotch whisky market investment had gained popularity in the recent times due to an assertion that the value of whisky rises as the spirit ages in the barrel.
One of the persons behind the companies, identified as Craig Arch, is a convicted fraudster who is actually banned by the authorities from becoming director of any company.
Due to no official regulation in the United Kingdom related to the industry, the segment has become one of the top targets for fraudsters.Alison Cocks, who hails from Montrose, invested close to £103,000 in one of the three suspected companies, Cask Whisky. Cocks initially bought only a single whisky cask for £3,000 and everything appeared legal to her.
She then bought another three casks for a total sum of £100,000 but the problems started after she contacted the company and said that she wanted to sell.
“On my certificates, it showed where my casks were, allegedly. When I actually contacted those warehouses, they weren’t there,” Cocks said, as per BBC.
(with inputs from BBC)
Adani starts getting regular payments from Bangladesh, restores power supply:-ET
Bangladesh confirmed that Adani Power's unit has resumed full electricity supply after reducing it by half due to unpaid dues. The country is now making regular payments, and supply was restored more than two weeks ago, alleviating the risk of blackouts during the hot summer months.
CA Final students to get major relief as ICAI to conduct exams thrice a year from 2025; Check details:-ET
The Institute of Chartered Accountants of India (ICAI) announced on Thursday that the CA Final exams will now be conducted three times a year instead of the existing twice-a-year schedule. This change will take effect from 2025, aligning the exam frequency with that of the CA Intermediate and Foundation courses.
Last year, ICAI introduced a thrice-a-year exam cycle for Intermediate and Foundation levels, and now the Final exam will follow the same pattern. This move is expected to offer greater flexibility and accessibility for aspirants and professionals.
"In order to align with global best practices and provide students with greater opportunities, the 26th Council of the ICAI has taken a historic decision to hold the CA Final exam three times a year. This examination was being held twice a year," ICAI said in a statement.
With this decision, all three levels of the CA course will now have equal attempts, giving candidates increased flexibility. "Now, all three levels - CA Final, Intermediate and Foundation, will have an equal number of attempts each year, providing students more opportunities to sit in the exam. These exams will be held in the month of January, May and September," the statement added.
Additionally, ICAI announced changes to the Post Qualification Course in Information Systems Audit, which was previously held twice a year in June and December. The Assessment Test for this course will now also be conducted three times a year.
"Earlier conducted twice a year in June and December, the Assessment Test for this course will now be held three times a year -- February, June and October, further increasing access and convenience for members," ICAI said.
Tuesday, March 25, 2025
India proposes to remove 6% Google tax from April 1, a day before Trump's retaliatory tariffs come into effect:-ET
India plans to remove the 6% equalisation levy on online advertisement services from April 1 to likely placate US President Trump amidst ongoing trade negotiations. The Finance Bill includes this among other amendments to address tax-related issues and facilitate offshore fund relocation.
Monday, March 24, 2025
Rupee soars to wipe out year's losses on strong dollar inflows;-ET
The Indian rupee leaped higher on Monday, with persistent dollar sales from foreign banks helping the local unit claw back all of its losses in 2025 so far.The rupee rose to a peak of 85.50 during the session, strengthening past levels last seen at the end of 2024.
The currency closed at 85.6350 against the U.S. dollar, up 0.4% on the day.
A nine-day streak of gains has boosted the rupee, as the currency benefited from dollar inflows related to inter-company borrowings and repatriation of corporate profits, which are usual in March, the last month of India's financial year.
Inflows into Indian bonds - about $3 billion over March so far - and a pickup in foreign buying of Indian stocks over the last couple of trading sessions have also helped the currency, which was teetering near record-low levels as recently as last month.On the day, "offers (on USD/INR) were dominated by foreign banks but what is also surprising is that the Reserve Bank of India doesn't seem to be very active on bid," a trader at Mumbai-based bank said.
The sharp gain in the rupee also likely took exporters by surprise, prompting dollar sales and adding to the momentum, the trader said.The currency is up 2.1% on the month so far, outpacing all of its major Asian peers. The benchmark Indian equity index, Nifty 50, rose nearly 1.5% on Monday, also wiping out all of its losses seen over 2025.
The rupee could extend its gains a little more but that is likely to be capped around 85.15-85.20 as importers may jump in to pick up dollars at a bargain, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities.
While the local unit has logged a string of gains recently, some analysts reckon that the rally is underpricing India's vulnerability to reciprocal U.S. tariffs, slated to be introduced on April 2.
ITC RULES FOR INPUT SERVICE DISTRIBUTOR :-Cleartax
Input Service Distributors have a dedicted GST Rule 39 that lays down the manner and formula for distributing input tax credit on common input services to their units. In this article, we will understand the ITC rules for input service distributors with examples.
Latest Updates
Notification No. 16/2024-Central Tax dated 6th August, 2024Before the said notification, the ISD mechanism was not mandatory. But via the above notification, the government amended Sec 2(61) and Sec 20 of the CGST Act, 2017 and made the ISD provisions mandatory effective from 1st April, 2025.Notification No. 12/2024-Central Tax dated 10th July, 2024CBIC amended Rule 39 of the CGST Rules, 2017, and prescribed the method for allocating ITC by an ISD but the same is yet to be notified.
Who is an Input Service Distributor?
The concept of ISD under GST is a legacy carried over from the service tax regime. It is an office meant to receive tax invoices towards receipt of input services and further distribute the credit of CGST, SGST/UTGST or IGST to supplier units (having the same PAN) proportionately.
The CGST Rules, 2017 prescribes the procedural conditions to be complied with by ISD, the Manner and Quantum of Input tax credit (ITC) to be distributed by Input Service Distributor to the eligible recipients, the invoice to be issued, return to be filed by ISD and how to deal with ITC on the credit and debit notes issued to the ISD.
Conditions to be compiled by ISD
- Tax paid on the services used in course of business by the units of the registered person can only be distributed by ISD to them.
- ITC available in a month must be distributed in the same month. So, deferment of the credit distribution is not allowed. It must be ensured by ISD not to distribute credit in excess of what is available with him.
- Until 1st April 2025, an ISD will not be able to accept any invoices on which tax is to be paid on reverse charge basis. It is to be noted that a recipient of service taxable under reverse charge mechanism is responsible to discharge the tax liability and then only take the credit of the same. So, if it wants to take reverse charge chargeable supplies, it should make sure to get registered as a normal taxpayer but cannot distribute the tax credit available thereof. From 1st April 2025, ISD can take input services on which GST is paid on reverse charge but can be distributed to its GSTINs.
- The credit of CGST, SGST/UTGST or IGST needs to be distributed separately. Also, the eligible and ineligible credit needs to be apportioned separately.
- The credit that is attributable to a particular recipient unit is distributed to it even when the unit is unregistered or makes exempt supplies.
- It is mandatory to register separately as ISD even though it has obtained the registration as a normal taxpayer in REG-01 by check-marking under Serial number 14 of the form that it is registering as ISD.
- It is possible for different offices of a company to have separate registrations as ISD. In other words, a company can have multiple registrations for its offices as ISD.
- ISD is supposed to issue an invoice known as ISD invoice to those units to whom it intends to distribute the credit of tax paid on services. It should clearly indicate in such invoice that it is issued only for distribution of ITC.
- He needs to issue ISD credit note if the credit that is already distributed gets reduced for any reason.
Salient points to include in the Invoices by ISD – (For ISD Invoice and ISD credit note)
- Name, address and GSTIN of the ISD and the recipient unit
- A consecutive serial number which is either alphabets or numbers or special characters or combination thereof
- Date of issue
- Amount of the credit distributed
- Signature of the ISD or his authorised representative. Exception: If the ISD is a banking company/ financial institution including NBFC then it is not required to serially number the document.
- ISD have to file GSTR-06 by the 13th of the month succeeding the relevant month indicating the credit distributed for the relevant month to the recipient units and the ISD invoices issued in the relevant month.
- The details in the returns are made available to the respective recipient units in GSTR-2B. Accordingly, credit can be claimed by the recipient unit by filing GSTR-3B by including the invoices received by ISD matched with the GSTR-2B. ISD need not file annual returns.
Manner of distribution of ITC by ISD
ITC accumulated could be of two sorts :
- Eligible: that which can be utilised for setting off against output tax liability
- Ineligible: that which cannot be utilised for setting off against output tax liability
Note: To read more on distribution of ITC by ISD. Both the sorts need to be distributed in the same manner. ITC on any goods or services or both used by the taxable person for the construction of immovable property (other than machinery or plant) on his own account including any goods or services or both used in the course or expansion of business has to be distributed separately for the ineligible ITC and eligible ITC.
ITC on account of IGST has to be distributed as IGST only ITC of CGST and SGST/UTGST in respect of recipient located in the same State/Union territory is distributed as it is respectively. ITC of CGST, SGST/UTGST in respect of recipient located in different states is to be distributed as IGST i.e CGST+SGST/UTGST=IGST
Amount of distribution of ITC by ISD
For instance, Some services can be billed on Head office but used by its units. There are three scenarios:
Scenario 1: Service billed is used entirely by one recipient unit : Here, the services are used only by one of its units and none other. So, ITC of such bills that are specifically attributable to one unit must be allocated to that unit entirely.
Scenario 2: Service billed is used by more than one recipient unit but not all Here, the services are used by two or more units but not all. Credit has to be distributed to those units that were operational and generated revenue during the relevant month.
Tax credit shall be distributed as follows: Total credit of tax is apportioned on a pro-rata basis based on the turnover of the recipient in the state/ union territory to the total turnover of all the recipients that are operational and to whom the input service relates.
Formula
C1 = C*(T1/T)
C1 =ITC to be distributed to the recipient
C =Total ITC available for distribution
T1 =Turnover of the specific recipient
T =Total Turnover of all recipients to which ITC relates
The ‘turnover’ here refers to the following:
Scenario 3: Service billed is used by all the recipient units: Here, the services are used by all the units. Credit has to be distributed to those units that were operational and generated revenue during the relevant month.
Tax credit shall be distributed as follows: Total credit of tax is apportioned on a pro-rata basis based on the turnover of the recipient in the state/ union territory to the total turnover of all the recipients that are operational and to whom the input service is relates. The proportion is same as laid down in scenario 2.
Important points to remember:
- Suppose there are more than one locations in a state or union territory, sum of their turnover in that state/ union territory is to be considered in place of turnover of the recipient ( in the numerator)
- Credit attributable to a recipient is distributed even if such recipient is unregistered or making exempt supplies
- Where both taxable and non-taxable supplies are made, the “turnover” shall exclude Central excise duty, State excise duty and VAT
- If there are two or more locations of a recipient in a state/ Union Territory, the sum of their turnover is to be considered in working out the proportion of the credit that will be distributed to that registration.
Implication of Issuing Debit note or Credit note by supplier to ISD
Issue of debit note :
If any debit note is issued to the ISD by the supplier of service, the additional credit of tax that he gets on such debit note should be distributed by him in the month in which he includes the Debit note in GSTR-6.
Issue of credit note :
If any credit note is issued to the ISD by the supplier of service, the credit of tax that gets reduced in such credit note should be apportioned by him to the recipients in the same proportion as the original credit that was distributed. Such apportioned credit gets reduced from the credit of tax distributed in themonth in which the credit note is included in GSTR-6.
However, if the amount to be reduced exceeds amount of tax credit to be distributed, then such excess shall be added to the output tax liability of the Recipient. Same process shall be followed for all those cases where the credit distributed needs to be reduced for any reason.
For example, credit distributed to wrong person ISD will be required to reconcile each credit available for distribution and credit distributed w.r.t. original invoices and Debit/Credit note received from supplier. Original Invoices, Amendment in Invoices, Debit/Credit note received from supplier will have to be dealt with due care and furnish in FORM GSTR-6.
Recovery of excess credit distributed by ISD to recipients
Provisions of Demand and Recovery gets attracted as if the tax was not paid, in a situation when excess credit has been distributed to any recipient. Recovery of the excess credit distributed along with interest shall be initiated against the recipient and not the ISD.
Illustration on Input service distributor
Example 1
XYZ Ltd. has it’s head office located in Mumbai (Maharashtra) which is a registered ISD. It has four units in different cities : one in Bangalore (Karnataka), one in Delhi, one in Chennai and one in Pune(Maharashtra). The Bangalore unit operates from another location in Karnataka at Belgaum. The Delhi unit was not operational during the year. Turnover generated at different locations is as follows:
- Bangalore: Rs.50,00,000
- Belgaum: Rs.30,00,000
- Pune: Rs.80,00,000
- Chennai: Rs.40,00,000
Total turnover for the year is Rs.200,00,000. We have three situations:
- XYZ Ltd. receives an invoice from supplier ‘A’ with an Input tax credit-IGST of Rs.1,80,000 for December 2017, services used by all units.
- Also, XYZ Ltd received an invoice from supplier ‘B’ with an input tax credit -CGST and SGST Rs.10,000 each that is used entirely by the Pune unit.
- Also, XYZ Ltd received an invoice from supplier ‘C’ with an input tax credit.
CGST and SGST both amounting to Rs.2,40,000 that is used entirely by all units except the Chennai unit. Distribution of Tax credit is as follows:
Note: If there are two or more locations of a recipient in a state/ Union Territory, the sum of their turnover is to be considered in working out the proportion of the credit that will be distributed to that registration. In this case, turnover of Belgaum and Bangalore needs to be clubbed and shown as turnover of Bangalore.
XYZ Ltd Head office(ISD) shall distribute Rs. 1,80,000 among all units except Delhi as it is not operational in the ratio in 2:1:2(^) as follows:
Pune: In the form of IGST Rs.72,000 i.e (1,80,000/200,00,000) x 80,00,000
Chennai: in the form of IGST Rs.36,000 i.e (1,80,000/200,00,000) x 40,00,000
Bangalore: In the form of IGST Rs.72,000 i.e (1,80,000/200,00,000) x 80,00,000 (*) (^) Being ratio of turnover as – 80,00,000 : 40,00,000 : 80,00,000, i.e., 2:1:2 (*) Inclusive of the turnover at Belgaum as the turnover as it is not a separate unit but extension of Bangalore unit within the same state
XYZ Ltd Head office(ISD) shall distribute Rs.10,000 to Pune only in the form of CGST and SGST of Rs. 5,000 each as the supply from supplier ‘B’ was exclusively for Pune Unit
XYZ Ltd Head office(ISD) shall distribute Rs.2,40,000 among all units except:
- Delhi as it is not operational
- Chennai as Input services are not used by this unit
Pune: in the form of CGST and SGST Rs.60,000 each i.e [(2,40,000/160,00,000) x 80,00,000]/2 Chennai: NIL Bangalore: in the form of IGST Rs.1,20,000 i.e (2,40,000/160,00,000) x 80,00,000 (*) (*) Inclusive of the turnover at Belgaum as the turnover as it is not a separate unit but extension of Bangalore unit within the same state
Example 2
XYZ Ltd. received a credit note from the supplier ‘A’ in January 2018 in respect of supplies made in December for ITC Rs 80,000/-Now, this ITC mentioned in credit note will be reduced from January month total ITC distributed, in the same ratio in which the original ITC was distributed, i.e., 2:1:2 (to be furnished in part 6B of the GSTR-6 of January 2018)
Pune: In form of IGST of Rs.32,000
Chennai: In form of IGST of Rs.16,000
Bangalore: In form of IGST of Rs.32,000
Example 3
XYZ Ltd. received a credit note from the supplier ‘C’ in February 2018 in respect of supplies made in December for ITC Rs.50,000/-Now, this ITC mentioned in debit note will be added to January month total ITC distributed, in the same ratio in which the original ITC was distributed, i.e., 1:1 between Pune and Bangalore (to be furnished in part 6B of the GSTR-6 of February 2018)
Pune: In form of CGST and SGST of Rs.12,500 each
Chennai: NIL
Bangalore: In form of IGST of Rs.25,000 (#) Being ratio of turnover as – 80,00,000 : 80,00,000 (*) Inclusive of the turnover at Belgaum as the turnover as it is not a separate unit but extension of Bangalore unit within the same state.
How will Clear can help with ISD compliance?
Experience a simplified and automated ITC distribution with Clear's GSTR-6 filing capabilities-
- Seamless PR Creation with GL-Stream: Prepare purchase register faster and reconcile frequently to avoid ITC delays. Automate compliant purchase register creation daily!
- Automated Reconciliation of GSTR-6A vs purchase register: Upload purchase & ISD documents in one go with a single-file import.
- PAN-Level Filing Across GSTINs: File multiple GSTINs at once, saving 70% time. Enjoy a seamless end-to-end multi-GSTIN filing.
- Intuitive UI & Dashboard: Easily create, edit, and manage multiple invoice types. Upload and edit invoice templates for different BU/verticals.
- Auto-Generated ISD Documents: Generate ISD documents using turnover details. Auto-calculate and save cross ITC details for GSTN reconciliation.
- Easy Data Import for GSTR-6: Import data via Clear templates or government formats.
- Turnover-Based ISD Document Generation: Generate ISD documents automatically without manual Excel uploads.
- ITC Automation & Validation: Auto-allocate ITC across entities with real-time error detection. Download, fix, and re-upload error files seamlessly.
- You as a user may make rules for location and turnover of recipient which will be considered for every distribution and make it hassle-free for the user to determine the amount to be distributed.
- You may also make rules to restrict claim of ITC from a specific vendor or restrict distribution to a specific recipient.
- Get a user-friendly interface to select a particular credit of input tax as eligible or ineligible and accordingly claim such ITC in the return
- Along with ease of manner of distribution of credit, generation of ISD invoices for recipients would be a matter of seconds.
About the Author
I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin.
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